[House Report 104-614]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-614
_______________________________________________________________________


 
                      IDEA IMPROVEMENT ACT OF 1996

_______________________________________________________________________


 June 10, 1996.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


     Mr. Goodling, from the Committee on Economic and Educational 
                 Opportunities, submitted the following

                              R E P O R T

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

                        [To accompany H.R. 3268]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Economic and Educational Opportunities, to 
whom was referred the bill (H.R. 3268) to amend the Individuals 
with Disabilities Education Act, to reauthorize and make 
improvements to that Act, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
    The amendment is as follows:
    The amendment strikes out all after the enacting clause of 
the bill and inserts a new text which appears in italic type in 
the reported bill.

                       Explanation of Amendments

    The provisions of the substitute, as amended by those 
amendments agreed to during the bill's mark-up, are explained 
in this report.

                                Purpose

    The purpose of this Act is to reform the Individuals with 
Disabilities Education Act to educate better children with 
disabilities and increase the educational opportunities 
available to these children, focusing on academic achievement, 
by placing an emphasis on what is best educationally instead of 
paperwork, giving teachers more flexibility and schools lower 
costs, enhancing parental input, making schools safer for 
students and teachers, and focusing and consolidating special 
education discretionary programs.

                            Committee Action

                         hearings and testimony

    The Subcommittee on Early Childhood, Youth and Families 
together with the Subcommittee on Disability Policy of the 
Committee on Labor and Human Resources of the United States 
Senate held a joint hearing on May 9, 1995 to consider the 
review and authorization of the Individuals with Disabilities 
Education Act.
    Testifying at the hearing were: Thomas K. Gilhool, Public 
Interest Law Center of Philadelphia, PA; Thomas A. Masterson, 
Esq., Partner, Morgan, Lewis and Bockius, Philadelphia, PA; 
Dennis Haggerty, Attorney specializing in disability law and 
estate planning for individuals with disabilities; Julian 
Tepper, Esq., Partner, Levin and Tepper, Washington, DC; Hon. 
Patricia Wald, Circuit Judge, United States Court of Appeals, 
District of Columbia Circuit, Washington, DC; Jack Duncan, 
Esq., Founder and President, Duncan and Associates, Washington, 
DC; Fred Weintraub, Senior Director of Publications and 
Professional Standards, Council for Exceptional Children, 
Reston, VA; Mike Resnik, Senior Associate Director, National 
School Board Association, Alexandria, VA; Lisa Walker, 
Executive Director, Educational Writers Association, 
Washington, DC; Martha Ziegler, Executive Director, Federation 
for Children with Special Needs, Boston, MA; and Marca Bristo, 
Chairperson, National Council on Disability, Chicago, IL.
    The Subcommittee on Early Childhood, Youth and Families 
held further hearings on the Individuals with Disabilities 
Education Act on June 20 and 27, 1995, and on March 7, 1996.
    Testifying at the June 20, 1995 hearing were: Hon. Richard 
Riley, Secretary, United States Department of Education; Hank 
Stoklosa, Parent, Delaware; Mary Ann Golembesky, Parent, San 
Diego, CA; Scott Jensen, Parent, Fishers, Indiana; Wendi 
Broadbent, Parent, Ridgewood, New Jersey; Reverend Guy Dunham, 
Parent, York, PA; Mary Ann Fielack, Parent, Satellite Beach, 
FL; Lois Helland, Parent, Eau Claire, WI; and Ann Caylor Cody, 
Parent, Williamston, MI.
    Testifying at the June 27, 1995 hearing were: Rep. Peter J. 
Visclosky (D-IN); Rep. James A. Traficant, Jr. (D-OH); Robert 
Holland, Parent, Sacramento, CA; Glenn Young, Seattle, WA; Dan 
Baldwin, Wilmington, Delaware; Marlise Stieglitz, Special 
Education Teacher, Graybilt, Indiana; Gloria Froleck Clark, 
Occupational Therapist, Ankeny, Iowa; Dr. Joseph Rosenfeld, 
School Psychologist and Hearing Officer, South Hampton, PA; Dr. 
Tyrone Gilmore, Superintendent of Spartanburg County School 
District Seven, Spartanburg, SC; Dr. Doug Carnine, Director of 
the National Center to Improve the Tools of Educators, Eugene, 
OR; Jim Hensley, Director of Special Education for Orange 
County Consortium for Special Education, Costa Mesa, CA; 
Rebecca Sargent, President-Elect of the California School Board 
Association, West Sacramento, CA; and Corinne Weyrich, Special 
Education Supervisor for Albuquerque Public Schools, 
Albuquerque, NM.
    Testifying at the hearing on March 7, 1996 were: Vicki L. 
Barbar, Ed.D, Superintendent for El Dorado County Schools, El 
Dorado, CA; Raymond J. Kelly, Principal for Maple Point Middle 
School, Langhorne, PA; Ann Baker Welch, Teacher, Murray 
Elementary School, Charlottesville, VA; Patricia Lange, 
President, Great Valley Board of School Directors, Malvern, PA; 
Sue Pratt, Parent, Executive Director, Citizens Alliance to 
Uphold Special Education, Inc., Kentwood, MI; and Stanley S. 
Herr, Professor of Law, University of Maryland, School of Law, 
Baltimore, MD.

introduction of the idea improvement act of 1996 and legislative action

    The IDEA Improvement Act of 1996, HR 3268, was introduced 
on Thursday, April 18 by Chairman Randy ``Duke'' Cunningham (R-
CA) and reported out of Subcommittee by voice vote on 
Wednesday, April 24, 1996 with no amendments. The full 
Committee on Economic and Educational Opportunities met to 
consider the IDEA Improvement Act of 1996, HR 3268, on May 30, 
1996. HR 3268, as amended, was ordered reported by a vote of 
32-5.

                  background and need for legislation

    In 1975 Congress passed the Education for All Handicapped 
Children Act establishing the State grant program for all 
States who, in accepting the funds, would provide a free 
appropriate public education to all children with disabilities 
with procedural safeguards.
    From 1979 through 1994 a series of authorizations and 
amendments established the discretionary programs. P.L. 99-457 
created a new Part H, which provides funds for establishing 
State programs for early intervention services for infants and 
toddlers with disabilities. The Handicapped Children's 
Protection Act, P.L. 99-372, authorized attorney's fees for 
parents who prevail in due process proceedings against a school 
district. The Education of the Handicapped Act Amendments of 
1990, P.L. 101-476, renamed the law as the Individuals with 
Disabilities Education Act (IDEA). In 1994, P.L. 103-382, the 
Improving America's Schools Act, eliminated the separate 
authorization for the Chapter 1 Handicapped program and merged 
the program into the IDEA statute.
    This Committee believes that the critical issue now is to 
place greater emphasis on improving student performance and 
ensuring that children with disabilities receive a quality 
public education. Education achievement for children with 
disabilities is still less than satisfactory.
    This review and authorization of the IDEA is needed to move 
to the next step of providing special education and related 
services to children with disabilities. to improve and increase 
their educational achievement.

                                Summary

    In reporting H.R. 3268, the IDEA Improvement Act of 1996, 
the Committee intends to improve the Individuals with 
Disabilities Education Act to focus on educational achievement 
with five main policy goals: (1) Placing an emphasis on what is 
best educationally for children with disabilities instead of 
paperwork; (2) Giving teachers more flexibility and schools 
lower costs; (3) Enhancing parental input; (4) Making schools 
safer for students and teachers; and (5) Focusing and 
consolidating special education discretionary programs.
    The Committee further intends to improve how IDEA is 
structured as frequently referenced legal text. The legislation 
has: revised how the act is formatted, with definitions 
consolidated into a single section; gathered all state and 
local educational agency requirements into single respective 
sections; consolidated all evaluation and re-evaluation, 
individualized education program and placement requirements in 
a single section; and placed all procedural safeguards 
requirements in one section. The nineteen funded and unfunded 
authorities and programs were condensed and consolidated into 
one part with four authorized subparts.
    The following is a summary of the legislation as approved 
by this Committee:

 title I--amendments to the individuals with disabilities education act

Amendments to Part A of the Individuals with Disabilities Education Act

    Part A of the Individuals with Disabilities Education Act 
includes the findings of this Congress which support the need 
for the Act and the programs for which it provides support. The 
definitions for this Act are included in this Part and are 
alphabetized for ease in use. An Office of Special Education 
Programs which will oversee this Act is authorized in this 
section and the Secretary is directed to appoint a Director. 
Eleventh Amendment immunity is waived by IDEA, which is a valid 
exercise of Congressional power under the 14th Amendment. 
Finally, the process for prescribing regulations is outlined. 
The Secretary must provide a comment period of at least 90 days 
on any regulation proposed under Part B and Part C. He may also 
provide letters of interpretation and clarification to 
individuals and States. Strict limitations on how those letters 
may be used are imposed.

Amendments to Part B of the Individuals with Disabilities Education Act

    Part B is the heart of the Act and is permanently 
authorized. It provides funds for grants to States to assist in 
providing special education and related services to children 
with disabilities who qualify under this law. The formula for 
distributing the appropriation to the various recipients is 
provided. It is based 85 percent on school age population and 
15 percent on poverty.
    All the requirements each State must meet to be eligible 
for funds are included in one section. The same is true for the 
local education agencies.
    Evaluations, reevaluations, individualized education 
programs, and educational placements are all located in one 
section. The process moves from the child's initial evaluation 
for eligibility for special education through the child's 
placement in the location where he or she will receive 
services. All through the process the involvement of the 
child's parent(s) is crucial and every effort is made to 
encourage that participation.
    The procedural safeguards which are available to the child 
with a disability and his parents are very detailed. They 
include; the ability to obtain an independent educational 
evaluation; prior written notice; parental consent; access to 
school records; the opportunity to present complaints; the 
child's placement during the pendency of due process 
proceedings; procedures for students who are subject to 
placement in an interim alternative educational setting; 
requirements for unilateral placement by parents in private 
schools at public expense, mediation; due process hearings; 
State-level appeals; civil actions; and attorney's fees.
    Part B also includes the responsibilities of the Secretary 
in administering this program, specifies about the ability of 
the Secretary to withhold funds, and the data collection 
requirements with which the States must comply.
    Part B authorizes the expenditure of funds on preschool 
programs for children aged 3 to 5 who have disabilities.

Amendments to Part C of the Individuals with Disabilities Education Act

    Part C authorizes the Secretary to make grants to States to 
fund programs for infants and toddlers from birth through age 
two who have disabilities. The requirements for these programs 
are specified and include: definitions; requirements for a 
State-wide system; Individualized Family Service Plans; State 
applications and assurances; authorized use of lands; 
procedural safeguards and the State interagency coordinating 
council. Federal administration specifications, allocation of 
funds, and authorization of appropriations are also included in 
this Part.

Amendments to Part D of the Individuals with Disabilities Education Act

    Part D provides the authority for the Secretary to make 
grants using discretionary appropriations for the purposes of 
furthering the Act. Subpart 1 specifies the priorities, 
eligible applicants, and responsibilities of all concerned. It 
also provides for national research and improvement activities.
    Subpart 2 establishes the authority for a national 
professional development emphasis including professional 
development for personnel serving low-incidence populations and 
leadership personnel.
    Subpart 3 provides for State program improvement grants, 
specifies that a collaborative process be used in developing 
the application and requires that 75 percent of the funds 
awarded be used for personnel preparation.
    Subpart 4 provides authority for grants for parent training 
and information centers which are to assist parents who have 
children with disabilities in improving their child's 
education. This sub-part also provides for technical assistance 
to the parent training and information centers.

                   title ii--miscellaneous provisions

    The miscellaneous provisions amends one section of the 
Elementary and Secondary Education Act, repeals provisions of 
IDEA consistent with the amendments in Title I of the bill, and 
establishes effective dates for the bill.

              Explanation of the Bill and Committee Views

    In its more than 20 year life span, the Individuals with 
Disabilities Education Act has achieved many of the important 
goals it sought to achieve. Children with disabilities are for 
the most part well served in America's public and private 
schools and are guaranteed the right in every state and 
territory to a free, appropriate public education by law. But 
this success has not been free of problems.
    Parents are often frustrated by local education systems 
that seem to focus on any number of things other than the 
education of their children. Teachers feel overwhelmed by 
paperwork that deprives them of time to spend with their 
students. Administrators and school boards face rising costs 
that are rising far faster than the number of special education 
students would seem to require, for reasons that sometimes have 
no apparent relationship with education. Taxpayers, parents, 
and educators question why vast sums of money are not 
necessarily leading to real academic results.
    After careful consideration of this issue, including a 
comprehensive set of hearings and the public circulation of 
three draft versions of legislation over a nine-month period, 
the Committee developed the IDEA Improvement Act of 1996. The 
bill amends each Part of the Individuals with Disabilities 
Education Act and makes the most significant reform to the Act 
and to the nation's special education system since the passage 
of P.L. 94-142 in 1975.

 title i--amendments to the individuals with disabilities education act

Amendments to Part A of the Individuals with Disabilities Education Act

            Definitions
    In section 602, the bill consolidated the majority of the 
definitions in the Act and reordered them alphabetically. The 
bill created a new definition of service eligibility called 
``developmental delay.'' Over the twenty years of this Act's 
implementation, the use of the category under which the child 
was determined eligible for special education services has led 
to the use of the category to drive the development of the 
child's Individualized Education Program and not the child's 
needs. In the early years of a child's development, it is often 
difficult to determine the precise nature of the child's 
disability. Use of ``developmental delay'' as an acceptable 
category will allow the special education and related services 
to be directly related to the child's needs and prevent locking 
the child into an eligibility category which may be 
inappropriate or incorrect.
    The definition of the Individualized Education Program 
(IEP) includes all of the required elements of an IEP. The 
items for consideration and the process for developing the IEP 
have been placed in the consolidated evaluation section of Part 
B. Under the IEP definition, the statement of a child's present 
levels of educational performance must be directly related to 
the child's involvement and progress in the general education 
curriculum. All too often, once a child has been identified as 
being eligible for special education, the special education and 
related services provided have no further connection to the 
general education curriculum. The majority of students 
identified as eligible for special education are capable of 
participating in the general education curriculum to some 
degree with some adaptations and modifications. This change is 
intended to ensure that children's special education plans are 
in addition to the general education curriculum, not separate 
from it.
    Under the new definition, IEP annual goals must be 
measurable. This change is crucial to help parents and 
educators determine if the goals can reasonably be met the 
year, and for parents to be able to monitor their child's 
progress. The IEP team will also need to be aware of any 
attempts to modify a child's classroom before he or she was 
referred to special education.
    Historically when children with disabilities were provided 
an education, that experience was in separate schools away from 
children without disabilities. The law creates a presumption 
that children with disabilities will be educated in regular 
classes. Therefore, the legislation requires a justification by 
the IEP Team of the circumstances when a child will not be 
educated with their nondisabled peers.
    This Committee recognizes that every decision made for a 
child with a disability must be made on the basis of what that 
individual child needs. Every child is unique and so will be 
his or her program needs. Nonetheless, when the decision is 
made to educate the child separately, a justification of that 
decision will need, at a minimum, to be stated as part of the 
child's IEP.
    Children with disabilities should be included in state and 
district-wide assessments when possible, and the definition of 
IEP has been structured to require their inclusion in such 
assessments. Excluding children with disabilities from these 
assessments severely limits and in some cases removes the 
ability of the child from continuing on to post-secondary 
education through no fault of their own. Where a child cannot 
be included in the regular education assessments, even with 
individual modifications, other means of assessment will be 
made available. The special education system has for too long 
not been held accountable for the educational progress of 
children with disabilities. Participation in regular education 
assessments is an important way by which parents will be able 
to judge if their child is improving their academic 
achievement, just as the parents of nondisabled children do.
    Service location has always been an important part of 
making an informed decision about what related services are 
proper and whether and when they should be provided to a child. 
The appropriate place for the related service may be the 
regular classroom, so that the child does not have to choose 
between a needed service and the core educational program. For 
this reason, service location has been added to the criteria 
describing the child's related services.
    The need for attention to transition services beginning at 
the age of 14 has become clear. The children most likely to 
drop out of school are those who are identified as learning 
disabled or seriously emotionally disturbed. Careful attention 
must be given to the child's move to high school and the 
courses the child will take in order to recognize and address 
the possibility of the child dropping out before it happens. 
The legislation states that the IEP definition will include a 
two-step transition process at ages 14 and 16 for this reason.
    Problems have arisen when a child with a disability attains 
the age of majority. In order to clarify the situation, a new 
IEP provision on transfer of rights has been included. The bill 
clarifies that when a child is considered incapable of making 
educational decisions, the State will develop procedures for 
appointing the parent or another individual to represent the 
interests of the child.
    Additionally, the new IEP ensures that parents can expect 
reports on their child's progress as regularly as do other 
parents. This will include regular teacher/parent conferences 
and any other reporting that is regular practice in the school.
    The Individualized Education Program Team definition is 
intended to include only those individuals who know the child 
and those who have the expertise to make decisions about the 
program which will be provided to the student. Most 
importantly, parents are assured full memberships in the IEP 
Team, participating in all decisions related to their child's 
IEP, including placement.
    Related services personnel should be included at the 
request of the parent or the school. These can include 
personnel for services that are not strictly special education 
services, such as specialists in curriculum content areas such 
as reading. The Committee recognizes that there are situations 
that merit the presence of a licensed registered school nurse 
on the IEP Team. The Committee also recognizes that schools are 
being saddled with inappropriate health-care costs that go 
beyond the scope of this Act. The Committee wishes to 
encourage, to the greatest extent practicable and when 
appropriate, the presence of a licensed registered school nurse 
on the IEP Team to help account for a child's educationally-
related health needs.
            Policy letters and regulations
    The Committee recognizes the need for the Secretary to 
offer correspondence for a variety of reasons. Among those are 
technical assistance, interpretation and clarification of this 
Act and the accompanying regulations, and monitoring for 
compliance. Section 605 is not intended to prohibit the 
Secretary from answering such correspondence. In fact, the 
Secretary will be required to publish a notice that such 
correspondence available to the public.
    The Committee is concerned that the Secretary is using 
policy letters and other correspondence in some cases to 
regulate without using the public notice and comment procedures 
of the Administrative Procedures Act. Particular areas of 
concern for the Committee about the Department's past actions 
include the year-round schools correspondence and the school 
discipline question and answer memorandum. The Committee is 
concerned about the Secretary continuing to issue 
correspondence that are either not clearly based on existing 
law or regulations, or that builds upon current law to the 
extent that the interpretations they contain are viewed by 
interested parties as being effectively regulations.
    The Committee has chosen its means of restricting such 
letters and correspondence in recognition of the fact that 
lesser means, such as only requiring publication of such 
letters, would still permit the Secretary to informally 
regulate, and would, in fact, facilitate such informal 
regulation to a greater degree. In addition, any other means of 
encouraging better judgment by the Secretary in creating such 
informal regulations would be self-defeating, since other means 
would be self-policing by an agency that has clearly expressed 
its willingness to issue such dictates without public scrutiny 
and comment.
    The legislation has established the procedures under 
section 605 to encourage the Secretary to submit such 
regulatory changes to the vital process of public debate by 
amending existing regulations to clarify those issue that 
deviate from current law. The encouragement should not be 
misconstrued as a general change to increase regulation. This 
Committee strongly believes that the Department can accomplish 
its mission through far less regulation than it currently uses. 
Where the choice, however, would be between using informal 
regulation to create new law, and using the notice and comment 
process, this Committee would prefer that the Secretary use 
regulations.
    The Committee is also very concerned about the use of such 
correspondence in inappropriate cases. For that reason, the 
legislation limits the use of such letters, excluding them from 
most litigation, and from instances where the State has not 
otherwise acquiesced to the Secretary's interpretation of the 
law. Letters that do not apply to particular fact situations or 
to particular school or state policies should not impact on 
other situations that are similar, but not identical.

Amendments to Part B of the Individuals with Disabilities Education Act

            Funding formula
    The formula which determines the amount of funds sent to 
each State was changed in section 611 to address the problem of 
over-identification of children with disabilities. When the Act 
was first passed in 1975, States were not providing educational 
services to children with disabilities. Logically, a formula 
was established at that time that based funding on counting the 
number of children with disabilities identified. This was to 
encourage States to proactively locate children with 
disabilities.
    In the twenty years since then States have done a good job 
of identifying children with service needs. Today, the growing 
problem is over-identification--identifying children as 
disabled when they might not be truly disabled. While it is 
unlikely that individual educators ever identify children for 
the additional funding that such identification brings, the 
financial incentive reduces the pro-active scrutiny that such 
referrals would receive if they did not have the additional 
monetary benefit. In-state funding formulas that follow the 
Federal formula further reduce such scrutiny, with more 
children being identified to draw additional State funds.
    This problem is most intense with minority children, 
especially African-American males. Over-identification of 
minority children, particularly in urban schools with high 
proportions of minority students, remains a serious and growing 
problem in this nation. The problem also contributes to the 
referral of minority special education students to more 
restrictive environments. As noted by Diane Austin, et al, in 
``Segregated and Second-Rate: `Special' Education in New York'' 
(1992):

          In New York City, African-American students, unlike 
        their Latino and White counterparts, represent a 
        disproportionately large number of special education 
        placements. * * * From 1985-1990 the number of African-
        American students in the City's special education 
        system jumped 11%, simultaneously the number of Whites 
        in special education dropped 14%. In fact, 80% of 
        students in self contained special education and 
        special programs were Black or Latino, while the White 
        population in said programs was only 13.6%. Statewide 
        figures also reveal the over-representation of children 
        of color in segregated special education settings 
        African-Americans constitute 19.8% of the general 
        education population, but 34.1% of the segregated 
        special education population. Conversely, White 
        students compromise 59.8% of general education students 
        and only 41.3% of segregated special education 
        placements.

    The causal link has been made by numerous reports, but none 
more succinctly than the 1994 report of the Department of 
Education's Inspector General. ``Allocating dollars to states 
on the basis of an annual child count * * * acts as a bounty 
system [encouraging over-identification]. rather than support 
good practice. * * * Because [a population-based] method [of 
allocating funds] uses objective data derived for other 
purposes, [this method] eliminates the financial incentives for 
manipulating student counts [that exist in the current 
formula], including retaining students in Special Education 
just to continue receiving Federal funds.''
    The Committee has squarely faced this problem by shifting 
over a ten-year period from the current formula to one which, 
at full implementation distributes funds to States in a formula 
85% based on the total school age population and 15% on the 
poverty statistic for children in the State. The Committee 
added a poverty factor to the formula because there is a link 
between poverty and certain forms of disability. As pointed out 
by Daniel Reschly in his piece, ``Minority Mild Mental 
Retardation Overrepresentation: Legal Issues, Research 
Findings, and Reform Trends,'' ``[T]here is a strong link 
between poverty and mild mental retardation.''
    The minimum amount a State will receive will be not less 
than one-third of one percent of the amount of the 
appropriation to be divided among the States. This will account 
for the cost difficulties in operating special education 
systems in smaller states. The legislation also limited the 
allocation to Puerto Rico to an amount that is proportional to 
Puerto Rico's percentage allotment of total allotment to all 
states under this section for fiscal year 1996. In doing so, 
the Committee seeks to assure that the transition to the new 
formula does not result in an inappropriate transfer of program 
funds from the 50 states to this single territory. The 
Committee exempted allocations to territories under IDEA from 
section 501 of P.L. 95-134. The purpose of this was to assure 
that territories actually use IDEA funds for delivering 
services to children with disabilities.
    The percentage of the appropriation which will go to the 
Secretary of the Interior to provide special education and 
related services to Indian children with disabilities has 
changed to 1.226% of the total appropriation. This percentage 
will provide the Secretary of the Interior the same amount of 
funding as the 1.25% did under the past authorization, because 
the future amounts will come out of a larger base of funding in 
the total Part B formula. A new reporting provision was 
included for the Secretary of the Interior's Advisory Council. 
This is intended to provide a means of determining if the 
Advisory Council is carrying out its duties and whether the 
Secretary is incorporating the recommendations of the Council 
into the Department of Interior's programs.
    The bill reduces the amount of funds that may be set-aside 
by state education agencies for administrative purposes from 
the 5% maximum permitted in IDEA currently to a maximum of 3%. 
This change is premised on the Committee's strong conviction 
that Federal funds are disproportionately supporting state 
agency administration, with some states paying for the cost of 
all special education personnel within their education agencies 
with Federal allocations. While Federal requirements certainly 
account for some of the cost of supporting state administrative 
structures, the Committee is quite sure that the Federal 
government should not be responsible for the entire cost of 
these personnel, as is the case in some States.
            State Education Agency requirements
    All of the requirements with which a State must comply are 
consolidated into this section 612. As an overriding principle, 
the Committee believes that the Federal government should stay 
out of the internal workings of the State whenever possible. 
The changes in this Act reflect that philosophy. Consistent 
with that, the Committee returned as much decision making power 
to the States as possible.
    The Committee intends that the States recognize their 
responsibility in locating, identifying, and evaluating all the 
children in each State who have a disability. This includes 
disabled children who may be attending private school. States 
must also consider if they have a responsibility to provide 
services to children with disabilities attending private 
schools. These are children whose parents are paying taxes to 
support the public school system and for whom the State is 
receiving Federal funding.
    The Committee has become aware that States too often 
distribute their special education funding in a manner that 
promotes more restrictive education settings over less 
restrictive settings. This method of distributing funds is 
incompatible with the intent of this Act, which ties all 
special education and related services to the individual needs 
of the child. States have not created their formulas to do this 
intentionally. ``Rather, these * * * incentives appear to be 
artifact of funding systems that were much more focused on 
other finance issues, such as the adequacy and equity of 
funding and the ability to track and audit federal funds,'' 
according to Thomas B. Parrish, Co-Director of the Center for 
Special Education Finance in the CSEF Brief, No. 2, Fall 1993. 
For that reason, the legislation makes States free to 
distribute funds in the manner they view as most appropriate, 
provided that such funds do not cause children to be served in 
placements that are more restrictive than the needs of the 
child would indicate.
    The Committee confronted the very rare situation where 
parents place a child in private school without notifying the 
school district. The Committee would require such parents to 
notify, at a minimum, a local education agency of their 
concerns, and provide the opportunity for the school to 
evaluate the child and determine if it can meet that child's 
needs.
    The Committee believes that agencies other than local 
education agencies should bear responsibility for some 
appropriate costs, particularly health costs, incurred 
delivering services to students under this Act. To assist the 
State and local educational agencies in obtaining relief from 
some of the costs of related services, a more specific 
requirement for interagency agreements has been developed.
    The Committee envisions that the Governor of each State 
will organize a meeting of state education and other agencies, 
and local education agencies to review appropriate 
responsibilities for interagency service payment coordination. 
The Governor is empowered under this provision to establish the 
appropriate regulations and policies to implement the agreement 
reached by the agencies as determined most appropriate by the 
Governor. This Committee expects that the Secretary of the 
Department of Education will be bound to accept such agreements 
in whatever form is determined appropriate for the State by the 
Governor or the Governor's designee.
    The legislation has substantially reduced Federal oversight 
of a State's comprehensive system of personnel development. 
This is intended to reduce the excessive data collection under 
current law, which often seems to be for its own sake and for 
the benefit of particular professional groups within states, at 
the expense of using funds for delivering services to children 
with disabilities.
    The Committee has addressed the serious problem with 
personnel shortages through two means. First, the legislation 
makes clear that paraprofessionals can be used to assist 
professionals in delivering services under the Act. Second, the 
language provides that where there are shortages of personnel 
in particular geographic areas, the state may suspend standards 
to recruit and hire personnel who are making progress in 
applicable coursework toward certification.
    This Committee believes that if Federal funds should be 
spent on the education of children with disabilities, that 
States receiving those funds should be accountable to their 
residents for demonstrating educational performance where 
States and localities have chosen to implement assessments 
under State or local law. The Committee understands that not 
all children with disabilities will be able to participate in 
the regular State and district-wide assessments, even with 
modifications and adaptations. For those children alternate 
assessment measures must be developed. The Committee intends 
for States to demonstrate that children with disabilities are 
given the opportunity to participate, and where they cannot, 
that alternate means be established, and the reason for non-
participation justified.
    The Committee has taken notice of the case of Zobrest v. 
Catalina Foothills Sch. Dist., 113 S. Ct. 2462 (1993). In light 
of this decision, the Committee affirms the principle that the 
ability of state and local education agencies to deliver 
services to children with disabilities at their private schools 
under this Act is not restricted by this Act. Further, the 
Committee believes that where services are being delivered to 
children with disabilities in private schools under this Act, 
those services should be delivered in the same type of location 
that they are delivered to children with disabilities who are 
served in public schools.
    Thus, where public school children receive speech-therapy 
services in their neighborhood school, children in private 
schools who are receiving the same services at public expense 
should receive those services in their private school, unless 
the parent, IEP Team, and public school agree otherwise. 
Similarly, where public school children are transported at 
public expense to a central location to receive physical 
therapy services, the public school would not be obligated to 
serve private school children at a different location unless 
the public school agrees otherwise.
    Twenty years ago when IDEA was first implemented, States 
had no process in place to locate all children with 
disabilities within the State and then provide those children 
with an education. It was appropriate for States to set goals 
and develop plans for meeting those goals consistent with 
regularly monitored Federal applications. Now, however, 
requiring States to continue to resubmit lengthy data intensive 
applications every three years is a waste of time and 
resources.
    This legislation provides that States may continue to be 
considered eligible for funding if their current application 
meets the Secretary's requirements. If the State later 
determines that an amendment to such application is necessary, 
only then will the State be responsible for notifying the 
Department of Education. This change in procedure, however, is 
not intended to limit the Secretary's ability to monitor for 
compliance with the Act and its regulations. If during a 
monitoring visit, the Secretary determines that a change in 
State policy or procedures, which was not reported to the 
Secretary, has led to the State being out of compliance, the 
Secretary may require the State to change its plan and bring 
its policies and procedures back into compliance.
            Local educational agency requirements
    All requirements which a local educational agency (LEA) 
must meet in order to be eligible for funding has been 
consolidated into section 613. Among the changes for current 
law that affect LEAs, the provisions provide greater leeway in 
maintaining their financial efforts with local funds. These new 
exceptions are not, however, intended to override any Federal 
or State laws other than those related to an LEA's maintenance 
of financial effort in its special education program.
    The legislation provides that LEAs may provide special 
education and related services even in situations where non-
disabled children will benefit. Often a child with a disability 
is able to be in a general education classroom if he or she 
receives individual assistance from an aide. The IDEA's current 
restriction that prevents that individual's services from 
benefiting nondisabled children is unreasonable. This Committee 
believes that such practices should be encouraged as long as 
doing so does not hamper the assistance the adult gives to the 
child with a disability.
    The legislation changes the LEA to state education 
application process to make it consistent with the State to 
Federal application process, for the same reasons as the State 
to Federal application process.
            Evaluations, IEPs, and placements
    The evaluation, IEP, and placement provisions were 
consolidated in section 614 of the legislation. One of the most 
significant changes relates to evaluations. Over the years, the 
required three year re-evaluation process has become highly 
paperwork-intensive and often is only used to prove compliance 
with the law. The child should not be subjected to unnecessary 
tests and assessments if the child's disability has not changed 
over the three-year time period, and the LEA or state agency 
should not be saddled with such associated expenses. If there 
is no need to determine the child's continuing eligibility for 
special education, any assessments should be limited to 
assisting the IEP Team in understanding how to teach and assist 
the child in the way he or she is most capable of learning.
    The Committee intends that evaluating professionals give 
serious consideration at the conclusion of their special 
education evaluation to other factors that might be affecting a 
child's performance. There are substantial numbers of children 
who are likely to be identified as disabled because they have 
not received proper academic support previously, such as 
children identified as learning disabled who have simply not 
been properly taught the core skill of reading. Other cases 
might include children who have limited English proficiency 
skills, or children whose performance has been adversely 
affected by cultural or environmental factors or by economic 
disadvantage. The Committee strongly suggests that the 
Department and education agencies focus on ensuring that this 
portion of the evaluation be given the utmost emphasis in every 
evaluation
    The proper development of the individualized education 
program is crucial to the child's success in special education. 
The Committee believes that a number of considerations are 
essential to the process of creating the child's IEP. The 
purpose of the IEP is to tailor the education to the child; not 
tailor the child to the education. If the child fit into the 
school's general education program without assistance, special 
education would not be necessary.
    The Committee recognizes that despite recent improvements 
in the delivery of services, parents of children with Attention 
Deficit Disorder (ADD) often encounter challenges in having 
their child assessed for special education and related services 
eligibility under the Act. The Committee intends that children 
with ADD be eligible for assessments to no lesser extent than 
other children.
    An amendment by Rep. Sawyer (D-OH) directs the use of 
technically sound instruments when the LEA chooses to assess 
the relative contribution of cognitive and behavioral factors, 
in addition to physical or developmental factors, when 
conducting an evaluation. The Committee does not intend this 
provision, however, to require such evaluations for all 
children.
    The legislation establishes that goals must be measurable 
and relate directly to the child's educational needs. It is not 
appropriate to have ``group goals'' which every child in a 
particular school's special education program must have on his 
or her IEP. Every child is different and unique and therefore 
will have goals which are unique to that child.
    Special attention should be given to communication and the 
child's needs in this area. The ability of any child to 
communicate is at the heart of the ability to learn in school 
and ultimately to be a productive, participating member of the 
community. Children who are deaf or hard of hearing are at a 
greater disadvantage then non-disabled students when they 
cannot communicate with the teacher. Their needs for an 
interpreter or other form of communication are essential to 
their success. It has been shown that children who are blind 
grow up to have a high illiteracy rate. Schools should assume 
that a child will learn Braille unless, because of the 
individual disability of the child, this will not be possible. 
The Committee intends to move from having the burden of proof 
on the parents to prove that a child will use Braille, to a 
system in which schools will be expected to provide Braille 
services and would need to explain on IEP when they would not.
    The Committee also intends that parent participation be 
equal to that of school personnel in every instance where the 
placement decision reviewed. Parents must have a right to know 
that their child is in the most appropriate location, and know 
that they had a part in deciding where that location would be. 
The most appropriate location will be different from child to 
child and should be decided based on the individual needs of 
that child.
    Provisions on parental consent for services reflect this 
deference to parent's views on their child's IEP and services 
generally. The legislation makes clear that parents are fully 
empowered to prevent a school from assessing their child. 
Schools will be required to pursue an initial evaluation 
through due process if they wish to require a parent to permit 
that evaluation. The same will be true of services. Under this 
legislation, consent for an initial evaluation of a child will 
not be consent for delivery of services based on that 
evaluation. Specific consent shall be necessary.
    An amendment to section 614 by Rep. Greenwood (R-PA) will 
permit teachers to directly address the behavior of students 
with disabilities who have demonstrated a pattern of behavior 
that significantly impairs the education of classmates and the 
ability of the teacher to teach. Under the amendment, teachers 
will be able to call and IEP Team meeting in cases of such 
behavior to review the child's IEP and placement.
    If the IEP team proposes changing the placement, the IEP 
Team will need to document a cumulative record over a 
reasonable period of time describing how the frequent behaviors 
exhibited by the child impair the learning environment. They 
will also need to document the efforts made to address those 
behaviors, and training that has been made available to the 
teacher to handle such behaviors.
    If these efforts fail to result in a change in behavior, 
the IEP Team may propose a change in placement. If the parents 
object to the change, the teacher may seek an expedited due 
process hearing to review the matter. The child would remain in 
the current placement unless the hearing officer decides that 
the change is justified and the proposed placement is the 
appropriate least restrictive environment. If the hearing 
officer determines that the placement should be changed, that 
changed placement would be implemented for the duration of any 
due process appeals unless the school and parent agree 
otherwise.
    Underlying the authority of teachers in this area, the 
legislation, as amended by Rep. Mink (D-HI) requires that the 
general education teacher participate when the IEP Team 
determines the appropriate behavior management techniques 
needed by the child, the necessary supplementary aids and 
services required, any program modifications, and what support 
for school personnel will be included in the child's IEP.
            Procedural safeguards
    IDEA's procedural safeguards have historically provided the 
foundation for ensuring access to a free appropriate public 
education for children with disabilities. Key to these due 
process procedures is the law's ``stay put'' provision. The 
Committee has made several changes to these provisions to 
facilitate conflict resolution, increase school safety, and 
ensure that due process is useful for all parents and schools, 
not simply those sophisticated enough to use the means at their 
disposal.
    To encourage early resolution of problems whenever 
possible, the bill requires States to offer mediation. The 
Committee believes that in States where mediation is required, 
litigation has been reduced, and parents and schools have 
resolved their differences amicably, making decisions with the 
child's best interest in mind. It is the Committee's desire 
that mediation become the norm when resolving disputes under 
IDEA.
    The mediation system under the IDEA Improvement Act will 
ensure that every parent and school has the opportunity to 
utilize the flexible, user-friendly practice of mediation where 
differences of opinion have not been resolved. Both parties, 
schools and parents, will have the opportunity to engage in 
mediation without attorneys. Should these discussions fail to 
resolve the conflict, some States will likely permit mediation 
to continue with counsel. The Committee believes that mediation 
will ensure that far fewer conflicts will proceed to the next 
procedural step in this process, formal due process and 
litigation: an outcome which the Committee believes should be 
avoided when possible.
    The Committee believes that the IEP process should be 
primarily devoted to determining the needs of the child and 
planning for the child's education with parents and school 
personnel. to that end, the bill specifically excludes the 
payment of attorney's fees for attorney participation in IEP 
meetings, unless ordered by a hearing officer or a court. The 
Committee hopes that this will contribute to all IEP meetings 
becoming focused on their original purpose: planning the 
child's education.
    Ending the monopoly of schools on determining the relevance 
of information about a child, the legislation changes current 
law to require schools to make all records about a child 
available to the parents. The Committee also addressed a 
concern raised by school boards and administrators that they 
are often not aware of the nature of a problem when a due 
process request is made. The bill requires basic information to 
be contained in the due process complaint so that the school 
can have information about the problem, which could lead to an 
early resolution of the dispute. In the future, parents and 
their attorneys will be required to disclose the identity of 
the child, list their concerns about the child's education, and 
their requested remedies. The change of ``denial of FAPE'' will 
no longer be sufficient to commence due process.
    The bill simplified the process of delivering and the 
content of notices to parents about their child's rights. The 
Director of the Office of Special Education Programs testified 
before the Subcommittee in June 1995 that, ``oftentimes the 
information that [parents] receive form school districts'' is 
legalese. The Committee hopes that this change will serve to 
change the useless, perfunctory paper-passing to parents under 
current law that now poses as notification of rights, and 
replaces it with user-friendly information that parents can 
understand.
    The Committee was concerned that in the rare circumstance 
when children with disabilities engage in serious violations of 
safety rules, the stay-put provision removed flexibility of 
school personnel to remove the child to another placement as an 
immediate response to the serious safety threat. The bill 
addresses this problem by carving out a narrow exception to 
stay-put where the child with a disability has a weapon or 
drugs in school, actually causes serious injury, or poses a 
danger to themselves or others.
    The new provisions on placing such children in alternative 
settings expands upon current law's provisions for students 
possessing firearms to include other weapons, illegal drugs, 
cases where the child has caused ``serious injury,'' and cases 
where the child is a danger to themselves or others. Schools, 
or where so required, a hearing officer, will be able to 
quickly move such students to alternative placements for 45 
days while parents and schools decide what changes, if any, are 
necessary for ensuring safe classrooms in the future. The same 
process would occur for children who are a danger to themselves 
or others, except that the decision to move the child would 
rest with a hearing officer. Where requested by a parent in the 
case of students with weapons or illegal drugs and students who 
cause serious injury, the State or local education agency will 
arrange for an expedited due process hearing after an interim 
placement has been made.
    To assure uniformity in the application of these 
provisions, the terms ``weapon,'' ``illegal drug,'' and 
``serious injury'' have been defined in the bill. The Committee 
intends that the terms ``verbal threat'' and ``significant 
endangerment to emotional health'' in the definition of 
``serious injury'' are meant to convey the same level of 
seriousness as the list of physical injuries. A ``verbal 
assault'' under this section is intended to connote a serious 
threat stating an intent to inflict serious injury on another 
individual, coupled with the present ability to do so, that 
would cause a reasonable person to expect immediate serious 
bodily harm. A verbal threat does not justify removal to an 
interim alternative placement unless it indicates a substantial 
likelihood of serious physical injury. Similarly, ``significant 
endangerment of emotional health'' must be a serious actual 
psychological illness which would manifest in the reasonable 
person who has been subjected to the same verbal assault. It 
does not include the stress experienced by verbal misbehavior 
short of verbal assault as described above. It cannot be the 
result of unfamiliarity with or a lack of understanding of a 
child's disability.
    The Committee recognizes that disagreement exists as to 
whether, under current law, disabled students whose conduct is 
unrelated to their disability may be expelled without services 
where that practice is permitted by State or local law. The 
legislation provides that students whose actions were unrelated 
to their disability may be treated as any other student, up to 
and including expulsion without services for weapon and illegal 
drug cases if so provided by local or state law. The 
legislation, as amended by Rep. Miller (D-CA), also includes 
two procedural safeguards against inappropriate expulsion. The 
first, a mandatory review of the manifestation determination by 
a hearing officer if the school plans to expel a child without 
services. The second would require that the IEP team consider 
whether the child's disability impaired the ability of the 
child to understand the impact and consequences of the behavior 
and the child's ability to control the behavior. If the child's 
disability meets either of these conditions, the IEP team must 
deem the child's action as being a manifestation of their 
disability.
            Data collection
    The legislation has substantially streamlined the data 
collection requirements under the Act, limiting collection to 
only the most important for which information is needed. In the 
further interest of reducing the cost and burden of collecting 
this data, the bill permits the collection of all data based on 
sampling. Underlying the Committee's desire to see the problem 
of over identification of minority children addressed, the 
Committee expects that the Secretary will collect data in a 
manner that provides information from which the Secretary and 
States can make appropriate decisions about practices and 
policies affecting the identification of all children, 
particularly minorities.
            The Preschool Program
    The legislation amended section 619 of IDEA in conformance 
with the funding formula changes in Part B. To that end, the 
Committee limited Puerto Rico's share of a Federal allotment to 
all States under this section for fiscal year 1996. In doing 
so, the Committee seeks to assure that the transition to the 
new formula does not result in an inappropriate transfer of 
program funds from the 50 states to this single territory. The 
Committee also exempted allocations to territories under IDEA 
from section 501 of P.L. 95-134. The purpose of this was to 
assure that territories actually use IDEA funds for delivering 
services to children with disabilities.

Amendments to Part C of the Individuals with Disabilities Education Act

    This Committee continues to recognize the importance of 
early intervention for infants and toddlers with disabilities 
from birth through age two. Infants and toddlers with 
disabilities whose families receive early intervention services 
often require less intensive services when they reach school 
age. The Committee believes that it is in the best interest of 
the infants and toddlers, their families, schools, and society 
in general that these services continue to be provided.
    However, this Committee believes strongly that during the 
period of this authorization, efforts must be made to find 
additional ways to fund these programs, or that other means of 
cost control need to be considered. This legislation does not 
intend that Federal appropriations ever are expected to come 
close to meeting the need that exists, and that States should 
be encouraged to explore means of securing other public, 
private, insurance, and individual means of supporting such 
services.
    Changes have been made in the Part C application process to 
conform to the changes in Part B. This is intended to lead to a 
major reduction in the paperwork which must be done by each 
State, a major priority of this Committee.
    The Committee has addressed the serious problem with 
personnel shortages through two means. First, the legislation 
makes clear that paraprofessionals can be used to assist 
professionals in delivering services under the act. Second, the 
language provides that where there are shortages of personnel 
in particular geographic areas, the state may suspend standards 
to recruit and hire personnel who are making progress in 
applicable coursework toward certification.
    The Committee exempted allocations to territories under 
IDEA from section 501 of P.L. 95-134. The purpose of this was 
to assure that territories actually use IDEA funds for 
delivering services to children with disabilities.
    The legislation has eliminated the Federal Interagency 
Coordinating Council that is authorized under current law. The 
Committee believes that the FICC has produced little of benefit 
for infants and toddlers with disabilities. This is also 
consistent with this Committee's strong commitment to 
eliminating excessive Federal bureaucracies.

Amendments to Part D of the Individuals with Disabilities Education Act

    The discretionary programs of the current Individuals with 
Disabilities Education Act have evolved since the Act's 
original passing to cover a variety of particular needs 
perceived by past Congresses to exist in the special education 
community. Many of these needs continue to this day, while 
others have receded. This process has left Federal grants that 
continue to receive funding from their own inertia and from the 
limited flexibility available to the Executive Branch under the 
terms of the law.
    Reflecting the policy making methods of an earlier era, the 
nineteen funded and unfunded discretionary program authorities 
found in Parts A through G and I of the current law now stand 
as a testimony to the piecemeal method of Federal program 
creation. Where there as a ``need,'' now there stands a 
program. One, the equipment and construction authority of 
current law's Part A, survived without ever being funded in 20 
years. Another, current law's Part I, was added to the Act 
through an amendment to the Improving America's School Act 
without ever being considered by a House Committee, nor ever 
having a House hearing held. This new program has also never 
been funded.
    The consensus for consolidating this mass of programs is 
clear to this Committee. The Clinton Administration proposed 
consolidating existing authorities, as have many education and 
disability groups. The problem with authorizing a multitude of 
programs is that each will independently draw appropriations, 
when a more appropriate distribution might weight competing 
worthy projects differently. Such independent programs also 
draw form the ability of the Federal government to properly 
fund Parts B and C to levels targeted by the laws' original 
authors.
    This legislation has consolidated the programs into four 
broad areas. The Committee believes that by creating a broad 
national program and a narrower national program focused on 
training personnel, establishing a new state improvement 
program also focused on personnel training, and maintaining a 
parent-training center program, the diffused efforts under 
current appropriations can be focused on the areas of greatest 
need.
    In Part D, the committee intends that the new Subpart 1 
National Research and Improvement Activities Program lead to a 
new coordinated effort in special education and grant 
activities. The Secretary of Education will be responsible for 
developing a comprehensive plan to coordinate all non-training 
national activities in a coherent and cohesive strategy. When 
implemented, each major grant shall be subject to peer review, 
to assure this Act's reflection of the needs of the education 
community to the greatest extent possible.
    The Committee intends that grants under this Act be open to 
all interested persons to the maximum extent feasible. Though 
there will be exceptions to this general preference, such as 
grants to States and state education agencies to improve their 
system operations, and for parent training and information 
centers, this legislation should be construed as permitting 
grants to be open to all applicants without exception unless 
explicitly justified otherwise by the Secretary of Education 
based on the specific nature of the grant.
    In keeping with this Congress' and Committee's interest in 
focusing resources on intended activities, the legislation has 
limited the use of Federal funds for indirect costs. The 
Committee believes that grants that permit such costs in excess 
of 25% are inappropriate to the mission of maximizing the value 
of Federal resources, and that where possible, indirect costs 
should be limited to levels lower than 25%. In addition, this 
also reflects the Committee's believe that such levels properly 
reflect the indirect, difficult to quantify benefits received 
by grantees from their grants, such as operational economies of 
scale and the academic and institutional prestige associated 
with receiving grants.
    The range of activities permitted under this subpart are 
not intended to reflect all activities currently authorized 
under IDEA's non-training discretionary programs. Nor are the 
funds authorized under this subpart, for the activities that 
remain authorized, to be used in equal proportion to current 
levels of appropriation. Instead, the Committee intends that 
the Secretary's planning process will establish a new 
coordinated system of funding to reflect this Committee's 
authorized activities and its desire for more focused 
discretionary activities.
    The Committee has added several areas to the permissible 
range of activities under IDEA's national discretionary 
programs. The legislation intends that these activities be 
funded to address needs too often ignored by parts of the 
special education community and by current discretionary 
program grants. Projects to address content areas such as 
reading are intended to focus on the failure of special 
education programs to account for the impact of limited 
reading, math, and other skills when determining a child's need 
for special education.
    An amendment by Rep. Gunderson (R-WI) will delay the 
implementation of the restriction on the Secretary to limit 
funding for open or closed captioning to educational, news, and 
informational materials from September 30, 1997 until that date 
in 1998. This amendment will also require the Secretary to 
consult with the Chairman of the Federal Communications 
Commission and submit a report to the Committee on Economic and 
Educational Opportunities on the progress the Federal 
Communications Commission is making towards meeting the 
requirements imposed on the Commission to have all broadcast 
television captioned.
    The Committee also intends that the current practice of 
paying for the captioning of television programming generally 
and the captioning and describing of entertainment programming 
particularly be phased out during fiscal year 1998. This 
legislation, as amended by Rep. Gunderson, is intended to 
transition toward privately financed captioning of all 
broadcast television following the implementation of the 
Federal Communication Commission's regulations on the subject 
in August 1997. In years following the phase out, the Secretary 
will be able to focus resources on educational, news, and 
informational programming with Subpart 1 appropriations. The 
committee intends that these future resources be focused on 
non-broadcast captioning where possible and help the 
development of a described video infrastructure, from which 
Federal funding can also phase out at some point after this 
law's expiration.
    In addition to these activities, the legislation intends 
that the Secretary undertake a national assessment of this 
nation's special education system. The report following this 
assessment should outline recommendations for improving the 
nation's special education systems in a fashion that is useful 
for the 107th Congress as it considers how Part B should be 
amended and whether activities authorized in Parts C and D 
should be authorized again, and if so, how they should be 
changed.
    The legislation also established two minimum levels of 
funding for activities under this Subpart where appropriations 
have been made in a particular year. The Committee believes 
that the current programs for individuals with deaf-blindness 
and the university program for deaf student are of such 
importance that their funding must be assured, provided that 
appropriations are made in this Subpart.
    In Subpart 2, the Committee intends to authorize 
appropriations for a national training program distinct from 
the training authorized under Subpart 3. This Committee 
believes that a coordinated national program of personnel 
training will provide important benefits that would not be 
otherwise available through a strictly state-based program. 
Among the benefits anticipated are the continued availability 
of personnel to serve persons with low-incidence disabilities, 
which individual states might not independently view as a 
priority sufficient enough to guarantee funds. Another 
important benefit will be assuring that the nation's academic 
institutions continue to be led by individuals whose training 
draws from programs outside of the one's that they lead. The 
Administration proposed an essentially identical program in its 
IDEA bill.
    The State Improvement Grant Program, Subpart 3, will 
establish a new system of grants primarily focused on personnel 
training. Governors, in close cooperation with their state and 
local education agencies, parents, and other institutions, 
shall develop an improvement plan after identifying the state's 
needs in several areas; these include assessing children and 
their performance, training personnel, and evaluating system 
effectiveness. Outside of Federal Department of Education 
strictures, States will be able to use funds in a manner that 
they view as best, based on the needs of a State's special 
education students and system.
    The legislation provides that 75% of State Improvement 
Grant funds should be used for personnel training. This 
reflected the Committee's desire that the Part 3 grant be the 
primary means of supporting personnel training, with Subpart 2 
supporting those areas of training for which a national need 
still remains. The purpose of focusing personnel training funds 
at the state level is that IDEA national training program funds 
are currently distributed in a manner that fails to account for 
the real personnel training needs of States.
    Under the current program, universities receive grants 
based on applications made to the Department of Education. 
These applications generally focus on pre-service training for 
special education teachers. In many of the areas served by 
these universities, however, the greatest need for training is 
for in-service training for general and special education 
teachers, and for pre-service training for future general 
education personnel. The Committee believes that appropriate 
training for general education teachers in early grades will 
help reduce future referrals to special education of learning 
disabled children. Instead of learning from a teacher whose 
abilities cannot properly meet the child's particular needs, 
learning disabled children will have been taught in a manner 
that they can understand from a teacher whose training 
permitted them to understand that child's learning style.
    For these reasons, the Committee believes that shifting the 
control over personnel training funds to the state and local 
level will result in training that more accurately reflects 
real training needs in this nation. In this sense, the national 
training program in Subpart 2 will complement the efforts in 
Subpart 3.
    The Parent Training program of Subpart 4 will continue the 
largely effective program of training parents to understand how 
to ensure that their children are served appropriately in local 
or other schools. As amended by Rep. Owens (D-NY), the 
Secretary's permissive authority for additional centers will be 
known in the legislation as ``community-based'' parent 
organizations, and those centers shall be permitted to ensure 
services to ``high density and rural'' areas.

                   Title II--Miscellaneous provisions

    The miscellaneous provisions amends one section of the 
Elementary and Secondary Education Act relating to IDEA 
funding. It also repeals provisions of IDEA consistent with the 
amendments in Title I of the bill. Title II also establishes 
that amendments to Part A, B, and C will be effective on July 
1, 1997, to facilitate their implementation consistent with 
most school years across the nation. It provides that 
amendments to Part D, the new discretionary programs, shall 
take effect October 1, 1997, consistent with the start of the 
Federal fiscal year 1998. It also establishes that the 
amendments to section 605 of Part B take effect upon enactment. 
This will affect all policy letters and correspondence issued 
after that date, and any such letters and correspondence used 
in monitoring and compliance reports, due process, and 
litigation after that date.

                      Section-by-Section Analysis

    Section 1 permits this title to be cited as the IDEA 
Improvement Act of 1996. TITLE I, Section 101 amends the 
current provisions of the Individuals with Disabilities 
Education Act to read as follows.

                                ``Part A

    ``Section 601 contains the short title of the bill, the 
Table of Contents, the findings, and the purposes.
    ``Section 602 defines the key terms used in this title. 
Definitions are include for the following: Assistive Technology 
Device, Assistive Technology Service, Child with a Disability, 
Educational Service Agency, Elementary School, Equipment, 
Excess Costs, Free Appropriate Public Education, Indian, Indian 
Tribe, Individualized Education Program, Individualized 
Education Program Team, Institution of Higher Education, Local 
Educational Agency, Native Language, Nonprofit, Parent, Parent 
Organization, Parent Information and Training Center, Related 
Services, Secondary School, Secretary, Special Education, 
Specific Learning Disability, State, State Educational Agency, 
Supplementary Aids and Services, Territory, Transition 
Services, and Underrepresented.
    ``Section 603 authorizes the Office of Special Education 
Programs headed by a Director who is selected by the Secretary 
and also authorizes the Secretary to accept the work of 
volunteers in carrying out the Act.
    ``Section 604 denies a State immunity under the Eleventh 
Amendment to the Constitution of the United States for 
violating this Act. This section also provides for remedies for 
violation and for an effective date for the provision with 
respect to violations.
    ``Section 605 prescribes a public comment period for 
enacting proposed regulations; prohibits the Secretary from 
implementing regulations which lessen the protections given to 
children with disabilities under this Act; and outlines the 
process by which the Secretary may issue correspondence and 
general statements of policy for purposes of clarification.
    ``Section 606 directs each recipient of funds under this 
Act to make positive efforts to employ individuals with 
disabilities in programs assisted under this Act.

                                ``Part B

    ``Section 611(a) authorizes the Secretary to provide grants 
to the States and amounts to the Secretary of the Interior to 
provide special education and related services to children with 
disabilities.
    ``Section 611(b) describes the formula under which grants 
will be made to states and territories. Allowing for a ten-year 
transition period, the money appropriated would be allocated to 
the States on a formula which is based upon a State's relative 
number of children aged 3 through 21 years who are the same age 
as the children with disabilities for whom a State ensures the 
availability of a free, appropriate public education, with a 
factor for poverty. Not more than one percent of the total 
appropriation is set aside for the territories and 1.226 
percent of the total appropriation shall be given to the 
Secretary of the Interior. Each state is guaranteed at least 
one-third of one percent of the amount remaining for allocation 
to the states after the territorial and Interior set-asides are 
made. Included in this section is a limitation on the total 
allocation to the Commonwealth of Puerto Rico to an amount that 
is proportional to Puerto Rico's Percentage allotment of total 
allotment to all states under this section for fiscal year 
1996. The Committee also exempted allocations to territories 
under IDEA from section 501 of P.L. 95-134.
    ``Section 611(c) describes the uses to which a State may 
put its allotted funds. States may reserve not more than 25 
percent of the funds distributed to the State for a fiscal year 
for administration and other State-level activities. This 
section also directs States to provide the other 75 percent of 
the allocated funds to local education agencies for use in 
providing special education and related services. Allowable 
State and local activities are described with not more than 3 
percent being spent on State administration. This section also 
provides for continued funding for 1997, 1998, and 1999 for 
State agencies that received fiscal year 1994 funds under the 
former Chapter 1 program for children with disabilities and for 
LEAs that received funds under that program for children who 
transferred to their schools from State-operated or State-
supported schools or programs.
    ``Section 611(d) addresses the use of funds provided to the 
Secretary of the Interior for the education of children with 
disabilities living on reservations or enrolled in elementary 
or secondary schools for Indian children operated or funded by 
the Secretary of the Interior.
    ``Section 611(e) authorizes the appropriation of such sums 
as may be necessary for the purpose of carrying out the 
provision of special education and related services to children 
with disability ages 5 through 21 years.
    ``Section 612(a) lists the following policies and 
procedures that a State must have in place to be eligible for 
receipt of Federal funds and the requirements for each. Free 
Appropriate Public Education; Child Find; Individualized 
Education Program, Least Restrictive Environment; Procedural 
Safeguards; Evaluation; Confidentiality; Transition from Part C 
to Preschool Programs; Children in Private Schools; State 
Education Agency Responsible for General Supervision; 
Obligations Relating to and Methods for Ensuring Services; 
Local Educational Agency Eligibility; Comprehensive System of 
Personnel Development; Personnel Standards; Performance Goals 
and Indicators; Participation in Assessments; Supplementation 
of State, Local and other Federal Funds; Public Participation; 
and State Advisory Panel.
    ``Section 612(b) lists the requirements with which the 
State Education Agency must comply if it provides free 
appropriate public education to children with disabilities, or 
provides them direct services.
    ``Section 612(c) directs each State that wishes to 
establish its eligibility under section 612 to submit to the 
Secretary the policies and procedures listed under section 
612(a). In addition, if a State already has on file with the 
Secretary policies and procedures that demonstrate that it 
meets any requirement of section 612, including any policies 
and procedures filed under the current Part B, the Secretary is 
directed to treat the State as meeting that requirement.
    ``Section 612(d) directs the Secretary to notify the State 
if the Secretary determines that it is eligible under section 
612. The Secretary can not finally determine that a State is 
not eligible until after providing the State reasonable notice 
and an opportunity for a hearing.
    ``Section 612(e) provides that nothing in the IDEA permits 
a State to reduce medical and other assistance available, or to 
alter eligibility, under Titles V and XIX of the Social 
Security Act (Maternal and Child Health Services and Medicaid) 
with respect to the provision of a free appropriate public 
education for children with disabilities within the State.
    ``Section 612(f) directs the Secretary to arrange for 
provision of services if, in 1983, a state was prohibited by 
State law from providing special education and related services 
to children in private elementary and secondary schools and 
lists the requirements to which the Secretary is subject.
    ``Section 613(a) provides that an LEA is eligible for 
assistance under Part B for any fiscal year if it demonstrates 
to the satisfaction of the SEA that it meets each of the 
following conditions: Consistency with State Policies; Use of 
Amounts; Information for State Educational Agency; and Public 
Information.
    ``Section 613(b) provides that if the LEA or a State agency 
already has on file with the SEA policies, procedures, or 
applications filed under Part B as currently in effect, the SEA 
will treat the LEA or State agency as meeting that requirement.
    ``Section 613(c) provides that the SEA can not finally 
determine that an LEA or State agency is not eligible under 
after providing it reasonable notice and an opportunity for a 
hearing.
    ``Section 613(d) directs and SEA to reduce or make no 
further payments to the LEA or State agency under Part B until 
the SEA is satisfied that the LEA or State agency is complying 
with the requirements.
    ``Section 613(e) permits an SEA to require an LEA to 
establish its eligibility jointly with another LEA if the SEA 
determines that the LEA would not be able to establish and 
maintain programs of sufficient size and scope to effectively 
meet the needs of children with disabilities. This section also 
lists the requirements for education service agencies.
    ``Section 613(f) permits an LEA to use up to five percent 
of the amount it receives under Part B for any fiscal year to 
develop and implement a coordinated services system.
    ``Section 613(g) directs and SEA to use the payments that 
would otherwise have been available to an LEA or State agency 
to provide special education and related services directly to 
children with disabilities residing in that area for one or 
more of the four reasons listed.
    ``Section 613(h) requires any State agency that desires to 
receive a subgrant for any fiscal year under Part B to 
demonstrate the listed conditions to the satisfaction of the 
SEA.
    ``Section 614(a) requires that an SEA, LEA, or State agency 
to conduct an initial evaluation with parental consent 
following the outlined procedures before beginning special 
education and related services to a child with a disability. 
This section also requires an SEA, LEA, or State agency to 
ensure that a re-evaluation of each child with a disability is 
conducted whenever conditions warrant a re-evaluation or 
whenever the child's parent or teacher requests one. At a 
minimum, consideration of whether such re-evaluation is 
appropriate would have to occur once every three years.
    ``Section 614(b) requires the LEA to provide to the parents 
of a child with a disability which describes any evaluation 
procedures it proposes to conduct and to use a variety of 
assessment tools and strategies. Upon completion of the 
evaluation, an IEP team will be convened to determined the 
child's eligibility and a copy of the evaluation report and 
documentation of the determination of eligibility will be given 
to the parents.
    ``Section 614(c) requires that as part of any re-evaluation 
under this section, the evaluation team review existing 
evaluation data and what additional data, if any, are needed. 
The IEP team will not be required to conduct assessment for re-
evaluation unless requested by the parents.
    ``Section 614(d) requires that an IEP be in effect at the 
beginning of each school year for each child with a disability. 
In the case of a child with a disability aged three, four, or 
five, an individualized family service plan (IFSP) developed 
under Part C could serve as the child's IEP. Each IEP must be 
developed in a meeting by an IEP team and lists the areas that 
must be considered. The LEA must ensure that the IEP team 
reviews and, if necessary, revises each IEP at least one a 
year. The LEA must reconvince the IEP team to identify 
alternative strategies to meet the transition objectives for 
the student if a participation agency, other than the LEA, 
fails to provide the transition services described in the IEP. 
This section also outlines the process for handling children 
who demonstrates certain patterns of behavior.
    ``Section 614(e) requires that each public agency ensure 
that the parents of each child with a disability are members of 
any groups that make decisions on the educational placement of 
their child.
    ``Section 615(a) requires that any State educational agency 
or local educational agency establish and maintain procedures 
to assure that children with disabilities and their families 
are guaranteed procedural safeguards with respect to the 
provision of a free appropriate public education.
    ``Section 615(b) requires the procedural safeguards 
include: examination of all relevant records, participation in 
meetings regarding the identification, evaluation, educational 
placement and the provision of FAPE to their child, and 
obtainment of an independent educational evaluation for their 
child; procedures to protect the rights of the child when the 
parents of the child are not known, cannot be found, or the 
child is a ward of the State, provision of written prior notice 
to the parents; procedure to provide the written notice in the 
native language of the parents unless it is clearly not 
feasible to do so; mediation; presentation of complaints; 
procedures requiring the parent to provide notice to the SEA or 
LEA; and procedures requiring the SEA to develop a model 
complaint form.
    ``Section 615(c) describes the content of the notice that 
would have to be given whenever written prior notice is 
required.
    ``Section 615(d) describes the content and timing of the 
procedural safeguards notice given to the parents.
    ``Section 615(e) requires that the SEA or LEA have a 
process for medication to resolve disputes between the parents 
and the State or local educational agency. This section also 
outlines the requires of the mediation system.
    ``Section 615(f) requires that parents who bring a 
complaint have the opportunity for an impartial due process 
hearing conducted by the SEA or LEA and also outlines the 
requirements for the hearing process.
    ``Section 615(g) allows due process hearings conducted by 
the LEA to be appealed to the SEA if the due process hearing 
held is conducted by an LEA.
    ``Section 615(h) lists the rights of any party to a due 
process hearing.
    ``Section 615(i) allows any party in disagreement with the 
findings of a due process hearing to bring civil action in a 
State court or in a District Court of the United States 
regardless of the amount in question. This section permits the 
award of attorney's fees and lists the considerations for 
reducing attorney's fees.
    ``Section 615(j), except as provided in 615(k), maintains 
the child in the current educational setting while any 
proceedings conducted under this section are pending.
    ``Section 615(k) allows LEAs the authority to place a child 
in an appropriate interim alternative placement chosen by the 
IEP Team for not more than 45 days for the reasons listed. If 
the school wishes to change a child's placement because the 
child is substantially likely to injure himself or others, a 
hearing officer must be used and the listed requirements 
considered. This section requires review by the IEP team of 
whether the child's action was a manifestation of the 
disability, and a determination of whether the action was 
disability related. Where it is not, any school discipline 
policy applied to non-disabled students shall be equally 
applied to the disabled student, except that if following the 
school discipline policy will lead to the cessation of services 
a hearing officer must review the manifestation determination 
before services may be ceased. If the parents do not agree with 
this determination, a due process hearing may be initiated. 
While the due process is pending, the child shall continue to 
receive educational services. This section also maintains the 
child in the alternative placement while due process 
proceedings are being conducted unless the parents and the LEA 
or SEA agree otherwise. The section also assures that in such 
cases, the State or local educational agency will arrange for 
an expedited hearing. The placement ordered by the hearing 
officer is the placement pending further appeals. The section 
permits children whose actions were determined not to be a 
manifestation of their disability in the case of weapons or 
illegal drugs to be treated as a nondisabled child, up to and 
including expulsion without education services. In cases of 
expulsion, however, an automatic review of the manifestation 
determination by a due process hearing officer shall be 
required. In addition, certain circumstances are outlined where 
a child's actions shall automatically be determined to be a 
manifestation of their disability. Protections provided for 
children not yet eligible for special education or related 
services are outlined. This section defines the terms `illegal 
drugs', `weapon' and `serious injury.'
    ``Section 615(l) maintains the rights available under the 
Constitution, the Americans with Disabilities Act, title V of 
the Rehabilitation Act and other federal laws.
    ``Section 615(m) requires the State to provide for transfer 
of rights from the parent to the child with a disability when 
that child reaches the age of majority under State law, unless 
the child has been found to be unable to provide informed 
consent to educational decisions.
    ``Section 616 allows the Secretary to withhold payments to 
the State, after reasonable notice and an opportunity for a 
hearing, for substantial failure to comply with any provision 
or condition under this part. The section also describes the 
nature of the withholding and the availability and process of a 
judicial review.
    ``Section 617 describes the responsibilities of the 
Secretary under this Part including rules and regulations, 
confidentiality, and personnel.
    ``Section 618 describes the program information that each 
State receiving Part B funds and the Secretary of the Interior 
must provide to the Secretary each year. This section also 
requires each State to review the data for disproportionality 
based on individual status, and review and revise, if 
necessary, its policies, practices, and procedures.
    ``Section 619(a) directs the Secretary to make grants to 
assist States to provide special education and related 
services, in accordance with Part B, to children with 
disabilities aged three through five and, at the State's 
discretion, to 2-year-old children with disabilities who will 
turn three during the school year.
    ``Section 619(b) provides that a State is eligible for a 
grant under section 619 if it has established its eligibility 
under section 612 and it makes a free appropriate public 
education available to all children with disabilities, aged 
three through five, residing in its jurisdiction.
    ``Section 619(c) guarantees each State an amount equal to 
what it received under section 619 for fiscal year 1996. The 
amounts guaranteed to the States under this paragraph would be 
reduced if insufficient funds were appropriated. This 
subsection also describes how the reduction will be 
accomplished.
    ``Section 619(d) directs the Secretary to allocate any 
additional funds to eligible States on the basis of their 
relative population of children aged three through five.
    ``Section 619(e) limits the total allocation to the 
Commonwealth of Puerto Rico to the same proportion of the total 
allocation to States that Puerto Rico received for fiscal year 
1996.
    ``Section 619(f) authorizes the Secretary to use the most 
recent population data that are available and satisfactory to 
the Secretary in making grants under this section.
    ``Section 619(g) allows each State to keep up to 25 percent 
of the grant it receives under section 619 for administration 
and other State-level activities.
    ``Section 619(h) allows each State and outlying area to use 
up to three percent of the amount it receives under section 619 
for any fiscal year for the costs of administering this 
section. This subsection also allows a State to use these funds 
to administer the Part C program, if the SEA is the lead State 
agency under that program.
    ``Section 619(i) lists the authorized activities for which 
each State is permitted to use section 619 funds retained at 
the State level.
    ``Section 619(j) requires each State which receives a grant 
under section 619 for any fiscal year to distribute at least 75 
percent of the grant funds to LEAs and to State agencies that 
have established their eligibility under section 613 and 
outlines the methods of distribution.
    ``Section 619(k) provides that Part C of the IDEA does not 
apply to any child with a disability receiving FAPE in 
accordance with Part B, with funds received under section 619.
    ``Section 619(l) exempts allocations to territories under 
IDEA from section 501 of P.L. 95-134.
    ``Section 619(m) authorizes the appropriation of such sums 
as are necessary to carry out this section.

                                ``Part C

    ``Section 631(a) lists the Congressional findings relating 
to Part C.
    ``Section 631(b) outlines the policy of the United States 
to provide financial assistance to enhance the State's capacity 
to provide quality early intervention services and expand and 
improve existing early intervention services.
    ``Section 632 defines: at-risk infant or toddler, council, 
developmental delay, early intervention services, and infant or 
toddler with a disability.
    ``Section 633 authorizes the Secretary to make grants to 
the States to assist them in implementing and maintaining a 
statewide system of early intervention services.
    ``Section 634 establishes the criteria each State must meet 
to be eligible for a grant under this Part. This criteria 
includes: adoption of a policy that appropriate early 
intervention services are available to all infants and toddlers 
with disabilities and their families in the State (including 
Indian infants and toddlers with disabilities and their 
families living on an Indian reservation within the State); and 
a statewide system in effect for the provision of early 
intervention services which meets the requirements of section 
635.
    ``Section 635(a) establishes the minimum requirements for a 
statewide system of early intervention services which are: a 
definition of developmental delay; a timely, comprehensive, 
multidisciplinary evaluation of each infant or toddler; and 
Individualized Family Service Plan; a comprehensive child find 
system; a public awareness program; a central directory; a 
comprehensive system of personnel development; policies and 
procedures relating to personnel standards; a single line of 
responsibility; a policy pertaining to contracting with service 
providers; a procedure for reimbursement of funds; procedural 
safeguards; a system for compiling data; and a State 
interagency coordinating council.
    ``Section 635(b) allows the State to temporarily suspend 
the requirements for personnel standards for a particular 
region if the requirement significantly inhibits the ability of 
the State to contract with or employ appropriate personnel.
    ``Section 636(a) requires each infant or toddler with a 
disability receive a written individualized family service plan 
(IFSP) developed by a multidisciplinary team, including the 
parents which includes appropriate assessments.
    ``Section 636(b) requires the IFSP be evaluated once a year 
and requires that every six months the family receive a review 
of the plan.
    ``Section 636(c) requires the individual family service 
plan be developed within a reasonable time after the 
assessment. With parental consent, early intervention services 
may commence prior to the completion of the assessment.
    ``Section 636(d) directs that the individualized family 
service plan be in writing and details what it must contain.
    ``Section 636(e) requires parents to provide written 
informed consent before implementation of the IFSP.
    ``Section 637(a) requires each State desiring to receive a 
grant under this part submit an application to the Secretary at 
the time and in the manner required by the Secretary containing 
the information required by this section.
    ``Section 637(b) lists the assurances that the State must 
include in its application to the Secretary.
    ``Section 637(c) directs the Secretary not to finally 
disapprove the application without allowing, with reasonable 
notice, the State an opportunity for a hearing.
    ``Section 637(d) directs the Secretary to determine a State 
to met the requirements for this section if the State has on 
file with the Secretary a policy, procedure, or assurance 
demonstrating that the State meets a requirement of this 
section.
    ``Section 637(e) requires the State to modify its 
application as the State determines necessary.
    ``Section 638 lists the allowable State activities for 
funds provided under this part.
    ``Section 639(a) details the minimum procedural safeguards 
a State shall have in place.
    ``Section 639(b) requires that while any proceedings or 
action is pending involving a complaint by the parents, the 
infant or toddler will continue to receive the early 
intervention services currently being delivered.
    ``Section 640(a) prohibits funds from this part being used 
to pay for services which would have been paid for by another 
source except to prevent a delay in the provision of early 
intervention pending reimbursement.
    ``Section 640(b) prohibits the State from reducing medical 
or other assistance available or from altering eligibility 
relating to maternal and child health or to Medicaid within the 
State.
    ``Section 641 requires each State wishing to receive funds 
under this part to establish an interagency coordinating 
council with the membership outlined in this section appointed 
by the Governor. This section also details the requirements for 
and the functions of the Council.
    ``Section 642 requires that Sections 616, 617, 618, and 
620, to the extent not inconsistent with this part, apply to 
the program authorized by this part. This section cross-
references the necessary citations.
    ``Section 643(a) allows the Secretary to reserve up to one 
percent of the funds from the appropriation for payment to the 
territories and excepts these funds from the provisions of P.L. 
95-134;
    ``Section 643(b) directs the Secretary to make payments of 
1.25 percent of the amount available to the States to the 
Secretary of the Interior for distribution to Indian tribes and 
includes the methods of allocation, allowable uses of funds, 
and reporting requirements.
    ``Section 643(c) describes the manner in which appropriated 
funds will be distributed to the States, and assures the State 
of the same level of funding as the State received in 1994 
unless the total appropriation is less.
    ``Section 643(d) allows the Secretary to reallot any funds 
refused by a State among the remaining States.
    ``Section 644 authorizes the appropriation of such sums as 
may be necessary to carry out the programs for each of the 
fiscal year 1997 through 2001.

                                ``Part D

    ``Section 651 describes the purpose of this part.
    ``Section 652 establishes the eligibility requirements for 
receiving a grant relating exclusively to 3 to 5 year old 
children.`

                              ``Subpart 1

    ``Section 661 directs the Secretary to develop and 
implement a comprehensive plan for activities conducted under 
this part by twelve months after enactment of the IDEA 
Improvement Act of 1996 in consultation with listed persons.
    ``Section 662 authorizes the Secretary to make awards for 
the priorities listed in this section without regard to the 
rule-making procedures under section 553 of title 5 U.S.C. This 
section also includes the definition of ``low-incidence 
disability'' as used in this part.
    ``Section 663 directs the Secretary to use a panel of 
experts to evaluate all proposals under this part requesting 
over $75,000, prohibits the majority of the panel from being 
individuals who are employed by the Federal Government, and 
authorizes the use of funds to pay the expenses and fees of 
panel members who are not employees of the Federal government.
    ``Section 664 lists the applicants eligible under this part 
as institutions of higher education, state educational 
agencies, local educational agencies, educational service 
agencies, other public agencies, private nonprofit 
organizations, Indian tribes and tribal organizations, and for-
profit organizations.
    ``Section 665 prohibits the Secretary from making a grant 
to or entering into agreement with any person or agency unless 
that person or agency has met the requirements of this section. 
This section also lists the additional requirements the 
Secretary may impose on the recipient.
    ``Section 666 limits the indirect costs of the grant to not 
more than 25 percent and permits the Secretary to further limit 
the use of funds for indirect costs.
    ``Section 667 authorizes the Secretary to use appropriated 
funds for evaluation of any activities carried out under this 
part.
    ``Section 668 directs the Secretary in consultation with 
others to plan, review and carry out a national assessment of 
activities carried out under this title and to submit interim 
and final reports.
    ``Section 669 authorizes the appropriation of such sums as 
may be necessary for each fiscal year 1997-2001. The minimum 
amounts of $12,832,000 will be used for the educational, 
related services, transitional, and early intervention needs of 
children with deaf-blindness, and $4,000,000 for the 
postsecondary, vocational, technical, and adult education needs 
of individuals with deafness. The section also allows for the 
minimum amounts to be ratably reduced.

                              ``Subpart 2

    ``Section 671 expresses the purpose of this subpart as 
helping to ensure that there are adequate numbers of personnel 
with the skills and knowledge necessary to provide services to 
children with disabilities.
    ``Section 672 lists the Congressional findings relating to 
this subpart.
    ``Section 673 authorizes the Secretary to make grants to 
support activities of national significance and lists the 
authorized activities.
    ``Section 674 authorizes the Secretary to make grants for 
the support of personnel preparation and lists the authorized 
activities and application process.
    ``Section 675 authorizes the Secretary to make grants for 
the support of leadership personnel and lists the authorized 
activities and preferences for making the awards.
    ``Section 676 requires that each application for funds 
under section 674 or 675 include an assurance that the 
applicant will subsequently perform work related to their 
application or repay all or part of the cost of preparation.
    ``Section 677 requires the Secretary to develop a plan for 
providing outreach services listed. This section also directs 
the Secretary to expend one percent of the funds appropriated 
for carrying out this subpart to Historically Black Colleges 
and Universities and other entities, and to provide a report.

                              ``Subpart 3

    ``Section 681 expresses the purpose of this subpart as 
assisting states in reforming and improving their systems for 
providing educational and early intervention services, 
particularly their systems for personnel development.
    ``Section 682 requires the applicant be the State and lists 
the participants in the collaborative process necessary for 
submitting an application.
    ``Section 683(a) requires a State applying for funds under 
this subpart to submit a State Improvement Plan that is 
integrated with State plans required under the Elementary and 
Secondary Education Act and the Rehabilitation Act as 
appropriate.
    ``Section 683(b) directs the State to identify critical 
aspects of early intervention, general education, and special 
education which must be improved. This subsection also lists 
the required analyses to be done by the State before submitting 
the plan.
    ``Section 683(c) requires the State to describe its 
improvement strategies. The State will also describe how the 
improvement strategies will be coordinated with public and 
private sector resources.
    ``Section 683(d) requires a State receiving funds under 
this subpart to report to the Secretary.
    ``Section 683(e) outlines the requirements which must be 
met in order for the Secretary to approve a State Improvement 
Plan.
    ``Section 683(f) allows for modifications to the approved 
State Improvement Plan upon request of the State or when 
required by the Secretary.
    ``Section 684 authorizes the use of funds awarded under 
this subpart for carrying out the activities of the State 
improvement plan and requires that 75 percent of the funds 
awarded be used for personnel development. This section also 
excepts these funds from the provisions of P.L. 95-134.
    ``Section 685 specifies the minimum stat allotments to be 
awarded under this subpart.
    ``Section 686 authorizes the appropriation of such sums as 
may be necessary to carry out the subpart for each of the 
fiscal years 1997-2001.

                              ``Subpart 4

    ``Section 691(a) authorizes the Secretary to make grants 
to, and enter into contracts and cooperative agreements with, 
parent organizations to support parent training and information 
centers to carry out the purposes of this subpart.
    ``Section 691(b) lists the required activities for parent 
training and information centers..
    ``Section 691(c) lists the optional activities.
    ``Section 691(d) lists the requirements for application 
under this subpart.
    ``Section 691(e) requires the Secretary to make a least one 
award to a parent organization in each State unless the 
Secretary does not receive an application of sufficient merit 
to warrant approval, and allows the Secretary to select among 
the applications submitted in a manner that ensures the most 
effective assistance to parents. This section also allows the 
Secretary to make additional smaller awards to meet the needs 
of targeted groups of parents.
    ``Section 692 authorizes the Secretary 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 
this subpart. This section lists the areas in which the 
Secretary may provide technical assistance.
    ``Section 693 authorize the appropriation of such sums as 
may be necessary for each of the fiscal years 1997 through 
2001.

                                TITLE II

    Section 201 makes technical amendments to ESEA to 
coordinate IDEA and schoolwide programs.
    Section 202(a) establishes the effective date for Parts A, 
B, and C of the Individuals with Disabilities Education Act, as 
amended by title I, as July, 1, 1997.
    Section 202(b) requires that section 605 of the IDEA, as 
amended by title I, take effect upon enactment of this Act.
    Section 202(c) establishes the effective date for Part D of 
such Act, as amended by title I, as October 1, 1997.
    Section 203 repeals Part I of the individuals with 
Disabilities Education Act, effective upon enactment. This 
section also repeals Part H of the Individuals with 
Disabilities Education Act, effective July 1, 1997, and Parts 
E, F, and G of such Act, effective October 1, 1997.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives and clause 2(b)(l) of 
rule X of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in the body of this report.

                     Inflationary Impact Statement

    In compliance with clause 2(l)(4) of rule XI of the Rules 
of the House of Representatives, the Committee estimates that 
the enactment into law of H.R. 3268 will have no significant 
inflationary impact on prices and costs in the operation of the 
national economy. It is the judgment of the Committee that the 
inflationary impact of this legislation as a component of the 
federal budget is negligible.

                    Government Reform and Oversight

    With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject to H.R. 3268.

                           Committee Estimate

    Clause 7 of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 3268. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                Application of Law to Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. The bill provides grant funds to States and localities 
to educate children with disabilities and increases educational 
opportunities available to these children. This bill does not 
prohibit legislative branch employees from receiving the 
benefits of this legislation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act requires a statement of whether the provisions of 
the reported bill include unfunded mandates; the bill provides 
funds for programs authorized under this bill at the local 
level and as such does not contain any unfunded mandates. The 
Committee also received a letter regarding unfunded mandates 
from the Director of the Congressional Budget Office. See 
infra.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974 and with 
respect to requirements of clause 2(l)(3)(C) of rule XI of the 
Rules of the House of Representatives and section 403 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 3268 from the Director of 
the Congressional Budget Office:

                       Congressional Budget Office,
                                             U.S. Congress,
                                      Washington, DC, June 4, 1996.
Hon. William F. Goodling,
Chairman, Committee on Economic and Educational Opportunities, U.S. 
        House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3268, the 
Individuals with Disabilities Education Act Amendments of 1996, 
as ordered reported by the Committee on Economic and 
Educational Opportunities on May 30, 1996. Because enactment of 
H.R. 3268 would not affect direct spending or receipts, pay-as-
you-go procedures would not apply to the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         June E. O'Neill, Director.

               congressional budget office cost estimate

    1. Bill number: H.R. 3268.
    2. Bill title: The IDEA Improvement Act of 1996.
    3. Bill status: As ordered reported by the House Committee 
on Educational and Economic Opportunities on May 30, 1996.
    4. Bill purpose: H.R. 3268 would revise the Individuals 
with Disabilities Education Act (IDEA) and would reauthorize 
funding for many of the programs that fall under the act.
    The purposes of H.R. 3268 are to ensure that children with 
disabilities receive a free appropriate public education that 
is designed to meet their needs and prepare them for 
employment, to assist States and localities in providing 
education for children with disabilities, and to assess the 
effectiveness of efforts to educate children with disabilities.
    5. Estimated cost to the Federal Government: The following 
table shows discretionary spending under H.R. 3268 with and 
without adjustments for inflation in cases where the bill would 
authorize such sums as necessary. With adjustments for 
inflation, authorizations of appropriations would total $122 
billion over the 1997-2002 period, as compared with $107 
billion under current law (see Table 2). Without adjustments 
for inflation, authorizations of appropriations would also 
total $122 billion over the 1997-2002 period, as compared with 
$107 billion under current law (see Table 3).

                                TABLE 1.--ESTIMATED BUDGETARY IMPACT OF H.R. 3268                               
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                     1996     1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
                                         WITH ADJUSTMENTS FOR INFLATION                                         
                                                                                                                
Authorizations of Appropriations Under Current                                                                  
 Law:                                                                                                           
    Estimated authorization......................    3,245   15,403   16,329   17,280   18,287   19,353   20,501
    Estimated outlays............................    3,230    4,456   11,849   15,538   17,049   18,044   19,097
Proposed Changes:                                                                                               
    Estimated authorization......................        0    2,092    2,231    2,372    2,522    2,682    2,854
    Estimated outlays............................        0      209    1,478    2,099    2,338    2,486    2,643
Authorizations of Appropriations Under H.R. 3268:                                                               
    Estimated authorization......................    3,245   17,495   18,560   19,652   20,809   22,034   23,355
    Estimated outlays............................    3,230    4,665   13,327   17,637   19,387   20,530   21,741
                                                                                                                
                                        WITHOUT ADJUSTMENTS FOR INFLATION                                       
                                                                                                                
Authorizations of Appropriations Under Current                                                                  
 Law:                                                                                                           
    Estimated authorization......................    3,245   15,403   16,329   17,280   18,287   19,353   20,501
    Estimated outlays............................    3,230    4,456   11,849   15,538   17,049   18,044   19,097
Proposed Changes:                                                                                               
    Estimated authorization......................        0    2,083    2,204    2,329    2,462    2,604    2,758
    Estimated outlays............................        0      208    1,470    2,076    2,299    2,430    2,570
Authorizations of Appropriations Under H.R. 3268:                                                               
    Estimated authorization......................    3,245   17,486   18,533   19,609   20,748   21,957   23,259
    Estimated outlays............................    3,230    4,664   13,319   17,614   19,348   20,474   21,667
----------------------------------------------------------------------------------------------------------------
Notes.--The 1996 levels are the amounts appropriated. Components may not sum to totals because of rounding.     

    The costs of this bill fall within budget function 500.

           TABLE 2.--ESTIMATED BUDGETARY IMPACT OF H.R. 3268 BY TITLE, WITH ADJUSTMENTS FOR INFLATION           
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                     1996     1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
Part B--General grants:                                                                                         
    Estimated authorization......................        0      195      207      219      232      246      261
    Estimated outlays............................        0       19      137      195      216      229      243
Part B--Preschool grants:                                                                                       
    Estimated authorization......................        0    1,317    1,427    1,539    1,659    1,787    1,926
    Estimated outlays............................        0      132      933    1,339    1,512    1,630    1,756
Part C:                                                                                                         
    Estimated authorization......................        0      325      335      344      354      364      374
    Estimated outlays............................        0       33      229      317      342      351      361
Part D--Subpart 1:                                                                                              
    Estimated authorization......................        0      135      139      143      147      151      155
    Estimated outlays............................        0       14       95      131      142      146      150
Part D--Subparts 2 and 3:                                                                                       
    Estimated authorization......................        0      100      103      106      109      112      115
    Estimated outlays............................        0       10       70       97      105      108      111
Part D--Subpart 4:                                                                                              
    Estimated authorization......................        0       20       21       21       22       22       23
    Estimated outlays............................        0        2       14       19       21       22       22
Total:                                                                                                          
    Estimated authorization......................        0    2,092    2,231    2,372    2,522    2,682    2,854
    Estimated outlays............................        0      209    1,478    2,099    2,338    2,486    2,643
----------------------------------------------------------------------------------------------------------------
Note.--Components may not sum to totals because of rounding.                                                    


           TABLE 3.--ESTIMATED BUDGETARY IMPACT OF H.R. 3268 BY TITLE, WITH ADJUSTMENTS FOR INFLATION           
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                     1996     1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
Part B--General grants:                                                                                         
    Estimated authorization......................        0      195      207      219      232      246      261
    Estimated outlays............................        0       19      137      195      216      229      243
Part B--Preschool grants:                                                                                       
    Estimated authorization......................        0    1,317    1,427    1,539    1,659    1,787    1,926
    Estimated outlays............................        0      132      933    1,339    1,512    1,630    1,756
Part C:                                                                                                         
    Estimated authorization......................        0      316      316      316      316      316      316
    Estimated outlays............................        0       32      221      300      316      316      316
Part D--Subpart 1:                                                                                              
    Estimated authorization......................        0      135      135      135      135      135      135
    Estimated outlays............................        0       14       95      128      135      135      135
Part D--Subparts 2 and 3:                                                                                       
    Estimated authorization......................        0      100      100      100      100      100      100
    Estimated outlays............................        0       10       70       95      100      100      100
Part D--Subpart 4:                                                                                              
    Estimated authorization......................        0       20       20       20       20       20       20
    Estimated outlays............................        0        2       14       19       20       20       20
Total:                                                                                                          
    Estimated authorization......................        0    2,083    2,204    2,329    2,462    2,604    2,758
    Estimated outlays............................        0      208    1,470    2,076    2,299    2,430    2,570
----------------------------------------------------------------------------------------------------------------
Note.--Components may not sum to totals because of rounding.                                                    

    6. Basis of estimate: the spending that would occur under 
H.R. 3268 would be subject to the availability of appropriated 
funds. Estimated outlays are based on the historical spending 
of programs authorized by IDEA.
    H.R. 3268 would revise Part B of IDEA, including the 
program of general grants to states. Current law permanently 
authorizes such sums as necessary for this program, and 
contains a formula for determining how much states would get if 
the program is fully funded--the number of children with a 
disability times forty percent of the average per pupil 
expenditure. H.R. 3268 would expand the definition of children 
with disabilities to include children aged 6 to 9 who are 
determined to be developmentally delayed. This expansion of 
eligibility by about 10 percent would increase the 
authorizations of appropriations by about $200 million in 1997, 
or a total of $1.4 billion over the 1997-2002 period with 
adjustments for increases in the number of disabled children 
and costs per pupil.
    H.R. 3268 would also revise the section of Part B of IDEA 
that deals with preschool grants to states. Current law 
permanently authorizes such sums as may be necessary to provide 
funding for grants for preschool children with disabilities, 
with a maximum grant for each child capped at $1,500. H.R. 3268 
would continue to authorize appropriations at such sums as 
necessary for preschool children with disabilities but would 
remove the limit on the grant amount per child. CBO estimates 
that H.R. 3268 would increase authorizations of appropriations 
by $1.3 billion in 1997, or a total of $9.7 billion over the 
1997-2002 period with adjustments for increases in numbers of 
disabled children and costs per pupil.
    CBO's estimate assumes that the total funding that H.R. 
3268 would authorize for preschool children would be the 
average per pupil expenditure times the number of preschool 
children with disabilities. The general grants to states 
program authorizes appropriations of 40 percent of the average 
per pupil expenditure times the number of preschool children. 
CBO assumes that the preschool grants program would authorize 
the remaining 60 percent. Sixty percent of the average per 
pupil expenditure for fiscal year 1997 would be about $3,800, 
or $2,300 higher than the $1,500 authorized under current law. 
Multiplying $2,300 times the estimated number of preschool 
children with disabilities that would be served in fiscal year 
1997 (580,000) yields and increase in authorizations of $1.3 
billion in 1997.
    Part C of H.R. 3268 would authorize such sums as necessary 
for infants and toddlers with disabilities for fiscal years 
1997 through 2001. This authorization of appropriations would 
automatically be extended one year through fiscal year 2002 
under the General Education Provisions Act (GEPA). Part C would 
be similar to part H of current law which covers infants and 
toddlers with disabilities and which is authorized only through 
fiscal year 1996. CBO used the amount appropriated in 1996 for 
part H as its basis for estimating increases in authorizations 
under H.R. 3268. budget authority is estimated to increase by 
$325 million in fiscal year 1997, or a total of $2.1 billion 
over fiscal years 1997-2002 with adjustments for inflation. The 
total over the same period without adjustments for inflation 
would be $2.0 billion. Part D of H.R. 3268 would authorize such 
sums as necessary for grants to fund activities to improve the 
education of children with disabilities for fiscal years 1997 
through 2001. DEPA would extend the authorizations of 
appropriations for one more year through fiscal year 2002.
    Subpart 1 of Part D would authorize appropriations for 
national research and improvement activities. Activities 
authorized under subpart 1 include many activities that are 
authorized in various parts of current law, including programs 
for deaf-blindness, serious emotional disturbances, early-
childhood education, secondary and transitional services, 
postsecondary education, innovation and development, media and 
captioning services, special studies, clearinghouses, and 
regional resource centers. Using the amounts appropriated for 
these activities in fiscal year 1996 as a benchmark, CBO or 
$870 million over fiscal years 1997-2002, with adjustments for 
inflation. Authorizations of appropriations for the same period 
without adjustments for inflation would total $810 million.
    Subpart 2 of Part D authorizes activities related to 
professional development of personnel who work with children 
with disabilities. Subpart 3 of Part D authorizes such sums as 
necessary for state program improvement grants for children 
with disabilities. Although this program does not have a direct 
counterpart under the current law IDEA, states who received 
grants would be required to use at least 75 percent of grants 
for professional development to ensure that there is a 
sufficient number of personnel who have the sills necessary to 
teach children with disabilities. Using what was appropriated 
for the current law personnel development program in fiscal 
year 1996 as a guide, CBO estimates that subparts 2 and 3 would 
increase budget authority by $100 million in fiscal year 1997, 
or about $640 million for fiscal years 1997-2002 when inflation 
is considered. The total for 1997-2002 without adjustments for 
inflation would be $600 million.
    Subpart 4 of Part D authorizes such sums as necessary to be 
appropriated for parent training and information centers. CBO 
estimates that this would increase authorizations of 
appropriations by $20 million in fiscal year 1997, or $129 
million over fiscal years 1997-2002, with adjustments for 
inflation. The total over the same period without adjustments 
for inflation would be $120 million. CBO used what was 
appropriated for parent training under current law IDEA for 
fiscal year 1996 as its basis for estimating these amounts.
    H.R. 3268 repeals Parts E, F, G, H, and I of current law. 
Authorizations of appropriations for Parts E, F, G, and H have 
expired, so repealing these would have no budgetary impact. 
Part I is authorized at such sums as may be necessary through 
fiscal year 1997. Since this part (family support) has never 
received an appropriation, the estimate includes no savings 
from its repeal.
    7. Pay-as-you-go considerations: None.
    8. Estimated cost to State and local governments: Section 4 
of the Unfunded Mandates Reform Act (P.L. 104-4) excludes from 
application of the act legislative provisions that ``establish 
or enforce statutory rights that prohibit discrimination on the 
basis of * * * handicap or disability.'' CBO has determined 
that many provisions of H.R. 3268--primarily in Part B of Title 
I--fit within this exclusion. All other provisions are 
conditions of federal assistance, or constitute a duty arising 
from participation in a voluntary federal program, and are thus 
not mandates as defined in P.L. 104-4.
    9. Estimated impact on the private sector: Any requirements 
imposed by the bill on the private sector are excluded from 
consideration under the Unfunded Mandates Reform Act of 1995 
because they establish or enforce statutory rights that 
prohibit discrimination on the basis of disability or because 
they are considerations of federal assistance.
    9. Estimate comparison: None.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Federal Cost Estimate: Justin 
Latus, State and Local Cost Estimate: Mark Nicole, Private 
Sector Mandate Estimate: Jay Noell.
    12. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.


         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

              INDIVIDUALS WITH DISABILITIES EDUCATION ACT

    [Parts A through C are amended to read as follows effective 
July 1, 1997. Section 605 is amended to read as follows 
effective on the date of enactment. Part D is amended to read 
as follows effective October 1, 1997. Parts E through G are 
repealed effective October 1, 1997. Part H is repealed 
effective July 1, 1997. Part I is repealed effective on the 
date of enactment.]

                      [Part A--General Provisions

            [short title; statement of findings and purpose

  [Sec. 601. (a) This title may be cited as the ``Individuals 
with Disabilities Education Act''.
  [(b) The Congress finds that--
          [(1) there are more than eight million children with 
        disabilities in the United States today;
          [(2) the special educational needs of such children 
        are not being fully met;
          [(3) more than half of the children with disabilities 
        in the United States do not receive appropriate 
        educational services which would enable them to have 
        full equality of opportunity;
          [(4) one million of the children with disabilities in 
        the United States are excluded entirely from the public 
        school system and will not go through the educational 
        process with their peers;
          [(5) there are many children with disabilities 
        throughout the United States participating in regular 
        school programs whose disabilities prevent them from 
        having a successful educational experience because 
        their disabilities are undetected;
          [(6) because of the lack of adequate services within 
        the public school system, families are often forced to 
        find services outside the public school system, often 
        at great distance from their residence and at their own 
        expense;
          [(7) developments in the training of teachers and in 
        diagnostic and instructional procedures and methods 
        have advanced to the point that, given appropriate 
        funding, State and local educational agencies can and 
        will provide effective special education and related 
        services to meet the needs of children with 
        disabilities;
          [(8) State and local educational agencies have a 
        responsibility to provide education for all children 
        with disabilities, but present financial resources are 
        inadequate to meet the special educational needs of 
        children with disabilities; and
          [(9) it is in the national interest that the Federal 
        Government assist State and local efforts to provide 
        programs to meet the educational needs of children with 
        disabilities in order to assure equal protection of the 
        law.
  [(c) It is the purpose of this Act to assure that all 
children with disabilities have available to them, within the 
time periods specified in section 612(2)(B), a free appropriate 
public education which emphasizes special education and related 
services designed to meet their unique needs, to assure that 
the rights of children with disabilities and their parents or 
guardians are protected, to assist States and localities to 
provide for the education of all children with disabilities, 
and to assess and assure the effectiveness of efforts to 
educate children with disabilities.

                              [definitions

  [Sec. 602. (a) As used in this title--
          [(1)(A) The term ``children with disabilities'' means 
        children--
                  [(i) with mental retardation, hearing 
                impairments including deafness, speech or 
                language impairments, visual impairments 
                including blindness, serious emotional 
                disturbance, orthopedic impairments, autism, 
                traumatic brain injury, other health 
                impairments, or specific learning disabilities; 
                and
                  [(ii) who, by reason thereof, need special 
                education and related services.
          [(B) The term ``children with disabilities'' for 
        children aged 3 to 5, inclusive, may, at a State's 
        discretion, include children--
                  [(i) experiencing developmental delays, as 
                defined by the State and as measured by 
                appropriate diagnostic instruments and 
                procedures, in one or more of the following 
                areas: physical development, cognitive 
                development, communication development, social 
                or emotional development, or adaptive 
                development; and
                  [(ii) who, by reason thereof, need special 
                education and related services.
          [(4) The term ``construction'', except where 
        otherwise specified, means (A) erection of new or 
        expansion of existing structures, and the acquisition 
        and installation of equipment therefor; or (B) 
        acquisition of existing structures not owned by any 
        agency or institution making application for assistance 
        under this title; or (C) remodeling or alteration 
        (including the acquisition, installation, 
        modernization, or replacement of equipment) of existing 
        structures; or (D) acquisition of land in connection 
        with the activities in clauses (A), (B), and (C); or 
        (E) a combination of any two or more of the foregoing.
          [(5) The term ``equipment'' includes machinery, 
        utilities, and built-in equipment and any necessary 
        enclosures or structures to house them, and includes 
        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.
          [(6) The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, or 
        Palau (until the Compact of Free Association with Palau 
        takes effect pursuant to section 101(a) of Public Law 
        99-658).
          [(7) The term ``State educational agency'' means the 
        State board of education or other agency or officer 
        primarily responsible for the State supervision of 
        public elementary and secondary schools, or, if there 
        is no such officer or agency, an officer or agency 
        designated by the Governor or by State law.
          [(8) The term ``local educational agency'' means a 
        public board of education or other public authority 
        legally constituted within a State for either 
        administrative control or direction of, or to perform a 
        service function, for public elementary or secondary 
        schools in a city, county, township, school district, 
        or other political subdivision of a State, or such 
        combination of school districts or counties as are 
        recognized in a State as an administrative agency for 
        its public elementary or secondary schools. Such term 
        also includes any other public institution or agency 
        having administrative control and direction of a public 
        elementary or secondary school.
          [(9) The term ``elementary school'' means a day or 
        residential school which provides elementary education, 
        as determined under State law.
          [(10) The term ``secondary school'' means a day or 
        residential school which provides secondary education, 
        as determined under State law, except that it does not 
        include any education provided beyond grade 12.
          [(11) The term ``institution of higher education'' 
        means an educational institution in any State which--
                  [(A) admits as regular students only 
                individuals having a certificate of graduation 
                from a high school, or the recognized 
                equivalent of such a certificate;
                  [(B) is legally authorized within such State 
                to provide a program of education beyond high 
                school;
                  [(C) provides an educational program for 
                which it awards a bachelor's degree, or 
                provides not less than a two-year program which 
                is acceptable for full credit toward such a 
                degree, or offers a two-year program in 
                engineering, mathematics, or the physical or 
                biological sciences which is designed to 
                prepare the student to work as a technician and 
                at a semiprofessional level in engineering, 
                scientific, or other technological fields which 
                require the understanding and application of 
                basic engineering, scientific, or mathematical 
                principles or knowledge;
                  [(D) is a public or other nonprofit 
                institution; and
                  [(E) is accredited by a nationally recognized 
                accrediting agency or association listed by the 
                Secretary pursuant to this paragraph or, if not 
                so accredited, is an institution whose credits 
                are accepted, on transfer, by not less than 
                three institutions which are so accredited, for 
                credit on the same basis as if transferred from 
                an institution so accredited: Provided, 
                however, That in the case of an institution 
                offering a two-year program in engineering, 
                mathematics, or the physical or biological 
                sciences which is designed to prepare the 
                student to work as a technician and at a 
                semiprofessional level in engineering, 
                scientific, or technological fields which 
                require the understanding and application of 
                basic engineering, scientific, or mathematical 
                principles or knowledge, if the Secretary 
                determines that there is no nationally 
                recognized accrediting agency or association 
                qualified to accredit such institutions, the 
                Secretary shall appoint an advisory committee, 
                composed of persons specially qualified to 
                evaluate training provided by such 
                institutions, which shall prescribe the 
                standards of content, scope, and quality which 
                must be met in order to qualify such 
                institutions to participate under this Act and 
                shall also determine whether particular 
                institutions meet such standards. For the 
                purposes of this paragraph the Secretary shall 
                publish a list of nationally recognized 
                accrediting agencies or associations which the 
                Secretary determines to be reliable authority 
                as to the quality of education or training 
                offered.
        The term includes community colleges receiving funding 
        from the Secretary of the Interior under the Tribally 
        Controlled Community College Assistance Act of 1978.
          [(12) The term ``nonprofit'' as applied to a school, 
        agency, organization, or institution means a school, 
        agency, organization, or institution owned and operated 
        by one or more nonprofit corporations or associations 
        no part of the net earnings of which inures, or may 
        lawfully inure, to the benefit of any private 
        shareholder or individual.
          [(13) The term ``research and related purposes'' 
        means research, research training (including the 
        payment of stipends and allowances), surveys, or 
        demonstrations in the field of education of children 
        with disabilities, or the dissemination of information 
        derived therefrom, including (but without limitation) 
        experimental schools.
          [(14) The term ``Secretary'' means the Secretary of 
        Education.
          [(15) The term ``children with specific learning 
        disabilities'' means those children who have a disorder 
        in one or more of the basic psychological processes 
        involved in understanding or in using language, spoken 
        or written, which disorder may manifest itself in 
        imperfect ability to listen, think, speak, read, write, 
        spell, or do mathematical calculations. Such disorders 
        include such conditions as perceptual disabilities, 
        brain injury, minimal brain dysfunction, dyslexia, and 
        developmental aphasia. Such term does not include 
        children who have learning problems which are primarily 
        the result of visual, hearing, or motor disabilities, 
        of mental retardation, of emotional disturbance, or of 
        environmental, cultural, or economic disadvantage.
          [(16) The term ``special education'' means specially 
        designed instruction, at no cost to parents or 
        guardians, 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.
          [(17) The term ``related services'' means 
        transportation, and such developmental, corrective, and 
        other supportive services (including speech pathology 
        and audiology, psychological services, physical and 
        occupational therapy, recreation, including therapeutic 
        recreation, social work services, counseling services, 
        including rehabilitation counseling, 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.
          [(18) The term ``free appropriate public education'' 
        means special education and related services that--
                  [(A) have been provided at public expense, 
                under public supervision and direction, and 
                without charge,
                  [(B) meet the standards of the State 
                educational agency,
                  [(C) include an appropriate preschool, 
                elementary, or secondary school education in 
                the State involved, and
                  [(D) are provided in conformity with the 
                individualized education program required under 
                section 614(a)(5).
          [(19) The term ``transition services'' means a 
        coordinated set of activities for a student, designed 
        within an outcome-oriented process, which promotes 
        movement from school to post-school activities, 
        including post-secondary education, vocational 
        training, integrated employment (including supported 
        employment), continuing and adult education, adult 
        services, independent living, or community 
        participation. The coordinated set of activities shall 
        be based upon the individual student's needs, taking 
        into account the student's preferences and interests, 
        and shall include instruction, 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.
          [(20) The term ``individualized education program'' 
        means a written statement for each child with a 
        disability developed in any meeting by a representative 
        of the local educational agency or an intermediate 
        educational unit who shall be qualified to provide, or 
        supervise the provision of, specially designed 
        instruction to meet the unique needs of children with 
        disabilities, the teacher, the parents or guardian of 
        such child, and, whenever appropriate, such child, 
        which statement shall include--
                  [(A) a statement of the present levels of 
                educational performance of such child,
                  [(B) a statement of annual goals, including 
                short-term instructional objectives,
                  [(C) a statement of the specific educational 
                services to be provided to such child, and the 
                extent to which such child will be able to 
                participate in regular educational programs,
                  [(D) a statement of the needed transition 
                services for students beginning no later than 
                age 16 and annually thereafter (and, when 
                determined appropriate for the individual, 
                beginning at age 14 or younger), including, 
                when appropriate, a statement of the 
                interagency reponsibilities or linkages (or 
                both) before the student leaves the school 
                setting,
                  [(E) the projected date for initiation and 
                anticipated duration of such services, and
                  [(F) appropriate objective criteria and 
                evaluation procedures and schedules for 
                determining, on at least an annual basis, 
                whether instructional objectives are being 
                achieved.
        In the case where a participating agency, other than 
        the educational agency, fails to provide agreed upon 
        services, the educational agency shall reconvene the 
        IEP team to identify alternative strategies to meet the 
        transition objectives.
          [(21) The term ``excess costs'' means those costs 
        which are in excess of the average annual per student 
        expenditure in a local educational agency during the 
        preceding school year for an elementary or secondary 
        school student, as may be appropriate, and which shall 
        be computed after deducting--
                  [(A) amounts received--
                          [(i) under this part,
                          [(ii) under title I of the Elementary 
                        and Secondary Education Act of 1965, or
                          [(iii) under title VII of the 
                        Elementary and Secondary Education Act 
                        of 1965, and
                  [(B) any State or local funds expended for 
                programs that would qualify for assistance 
                under such part, chapter, or title.
          [(22) The term ``native language'' has the meaning 
        given that term by section 7003(a)(2) of the Bilingual 
        Education Act.
          [(23) The term ``intermediate educational unit'' 
        means any public authority, other than a local 
        educational agency, which is under the general 
        supervision of a State educational agency, which is 
        established by State law for the purpose of providing 
        free public education on a regional basis, and which 
        provides special education and related services to 
        children with disabilities within that State.
          [(24)(A) The term ``public or private nonprofit 
        agency or organization'' includes an Indian tribe and 
        the Bureau of Indian Affairs of the Department of the 
        Interior (when acting on behalf of schools operated by 
        the Bureau for children and students on Indian 
        reservations) and tribally controlled schools funded by 
        the Department of the Interior.
          [(B) The terms ``Indian'', ``American Indian'', and 
        ``Indian American'' mean an individual who is a member 
        of an Indian tribe.
          [(C) The term ``Indian tribe'' means any Federal or 
        State Indian tribe, band, rancheria, pueblo, colony, or 
        community, including any Alaskan native village or 
        regional village corporation (as defined in or 
        established under the Alaska Native Claims Settlement 
        Act).
          [(25) 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 individuals with 
        disabilities.
          [(26) The term ``assistive technology service'' means 
        any service that directly assists an individual with a 
        disability in the selection, acquisition, or use of an 
        assistive technology device. Such term includes--
                  [(A) the evaluation of the needs of an 
                individual with a disability, including a 
                functional evaluation of the individual in the 
                individual's customary environment;
                  [(B) purchasing, leasing, or otherwise 
                providing for the acquisition of assistive 
                technology devices by individuals with 
                disabilities;
                  [(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 an 
                individual with disabilities, or, where 
                appropriate, the family of an individual with 
                disabilities; 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 individuals with disabilities.
          [(27) The term ``underrepresented'' means populations 
        such as minorities, the poor, the limited English 
        proficient, and individuals with disabilities.
  [(b) For purposes of part C of this title, ``youth with a 
disability'' means any child with a disability (as defined in 
subsection (a)(1)) who--
          [(1) is twelve years of age or older; or
          [(2) is enrolled in the seventh or higher grade in 
        school.

                 [office of special education programs

  [Sec. 603. (a) There shall be, within the Office of Special 
Education and Rehabilitative Services in the Department of 
Education, an Office of Special Education Programs which shall 
be the principal agency in the Department for administering and 
carrying out this Act and other programs and activities 
concerning the education and training of individuals with 
disabilities.
  [(b)(1) The Office established under subsection (a) shall be 
headed by a Deputy Assistant Secretary who shall be selected by 
the Secretary and shall report directly to the Assistant 
Secretary for Special Education and Rehabilitative Services. 
The position of Deputy Assistant Secretary shall be in grade 
GS-18 of the General Schedule under section 5104 of title 5, 
United States Code, and shall be a Senior Executive Service 
position for the purposes of section 3132(a)(2) of such title.
  [(2) In addition to such Deputy Assistant Secretary, there 
shall be established in such office not less than six positions 
for persons to assist the Deputy Assistant Secretary, including 
the position of Associate Deputy Assistant Secretary. Each such 
position shall be in grade GS-15 of the General Schedule under 
section 5104 of title 5, United States Code.

                [abrogation of state sovereign immunity

  [Sec. 604. (a) A State shall not be immune under the eleventh 
amendment to the Constitution of the United States from suit in 
Federal court for a violation of this Act.
  [(b) 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 such 
remedies are available for such a violation in the suit against 
any public entity other than a State.
  [(c) The provisions of subsections (a) and (b) shall take 
effect with respect to violations that occur in whole or part 
after the date of the enactment of the Education of the 
Handicapped Act Amendments of 1990.

   [acquisition of equipment and construction of necessary facilities

  [Sec. 605. (a) In the case of any program authorized by this 
title, if the Secretary determines that such program will be 
improved by permitting the funds authorized for such program to 
be used for the acquisition of equipment and the construction 
of necessary facilities, the Secretary may authorize the use of 
such funds for such purposes.
  [(b) If, within twenty years after the completion of any 
construction (except minor remodeling or alteration) for which 
funds have been paid pursuant to a grant or contract under this 
title, the facility constructed ceases to be used for the 
purposes for which it was constructed, the United States, 
unless the Secretary determines that there is good cause for 
releasing the recipient of the funds from its obligation, shall 
be entitled to recover from the applicant or other owner of the 
facility an amount which bears the same ratio to the then value 
of the facility as the amount of such Federal funds bore to the 
cost of the portion of the facility financed with such funds. 
Such value shall be determined by agreement of the parties or 
by action brought in the United States district court for the 
district in which the facility is situated.

              [employment of individuals with disabilities

  [Sec. 606. The Secretary shall assure that each recipient of 
assistance under this Act shall make positive efforts to employ 
and advance in employment qualified individuals with 
disabilities in programs assisted under this Act.

           [grants for the removal of architectural barriers

  [Sec. 607. (a) The Secretary is authorized to make grants and 
to enter into cooperative agreements with the Secretary of the 
Interior and with State educational agencies to assist such 
agencies in making grants to local educational agencies or 
intermediate educational units to pay part or all of the cost 
of altering existing buildings and equipment in accordance with 
standards promulgated under the Act entitled ``An Act to insure 
that certain buildings financed with Federal funds are so 
designed and constructed as to be accessible to the physically 
handicapped'', approved August 12, 1968.
  [(b) For the purposes of carrying out the provisions of this 
section, there are authorized to be appropriated such sums as 
may be necessary.

               [requirements for prescribing regulations

  [Sec. 608. (a) For purposes of complying with section 431(b) 
of the General Education Provisions Act with respect to 
regulations promulgated under part B of this Act, the thirty-
day period under such section shall be ninety days.
  [(b) The Secretary may not implement, or publish in final 
form, any regulation prescribed pursuant to this Act which 
would procedurally or substantively lessen the protections 
provided to children with disabilities under this Act, as 
embodied in regulations in effect on July 20, 1983 
(particularly as such protections relate to parental consent to 
initial evaluation or initial placement in special education, 
least restrictive environment, related services, timelines, 
attendance of evaluation personnel at individualized education 
program meetings, or qualifications of personnel), except to 
the extent that such regulation reflects the clear and 
unequivocal intent of the Congress in legislation.

                 [eligibility for financial assistance

  [Sec. 609. Effective for fiscal years for which the Secretary 
may make grants under section 619(b)(1), no State or local 
educational agency or intermediate educational unit or other 
public institution or agency may receive a grant under parts C 
through G which relate exclusively to programs, projects, and 
activities pertaining to children aged three to five, 
inclusive, unless the State is eligible to receive a grant 
under section 619(b)(1).

[administrative provisions applicable to parts c through g and section 
                                  618

  [Sec. 610. (a) The Secretary shall maintain a process for 
developing a program plan for the implementation of each of the 
programs authorized under section 618 and parts C through G. 
The plan shall include program goals, objectives, strategies, 
and priorities. In conducting the process, the Secretary shall 
involve individuals with disabilities, parents, professionals, 
and representatives of State and local educational agencies, 
private schools, institutions of higher education, and national 
organizations who have interest and expertise in the program.
  [(b) In awarding grants, contracts, and cooperative 
agreements under parts C through G, the Secretary, where 
appropriate, shall require applicants to demonstrate how they 
will address, in whole or in part, the needs of infants, 
toddlers, children, and youth with disabilities from minority 
backgrounds.
  [(c) In awarding grants, contracts, or cooperative agreements 
under parts C through G the Secretary, where appropriate, may 
require applicants to address the various transitions that a 
child with a disability may face throughout such child's years 
in school, including--
          [(1) the transition from medical care to special 
        education for those children with disabilities, 
        including chronic health impairments, who may require 
        individualized health-related services to enable such 
        children to participate in, or benefit from, special 
        education;
          [(2) the transition between residential placement and 
        community-based special education services; and
          [(3) the transition between a separate educational 
        placement and the regular classroom setting.
  [(d) The Secretary shall conduct directly, or by contract or 
cooperative agreement with appropriate entities, independent 
evaluations of the programs authorized under section 618 and 
under parts C through G, and may for such purpose use funds 
appropriated to carry out such provisions. The findings of the 
evaluators shall be utilized in the planning process under 
subsection (a) for the purpose of improving the programs. The 
evaluations shall determine the degree to which the program is 
being conducted consistent with the program plan and meeting 
its goals and objectives. The Secretary shall submit to the 
appropriate committees of the Congress the results of the 
evaluations required by this subsection.
  [(e) The Secretary shall report on the program plans required 
in subsection (a) and findings from the evaluations under 
subsection (d) in the annual report to the Congress required 
under section 618.
  [(f) The Secretary shall develop effective procedures for 
acquiring and disseminating information derived from programs 
and projects funded under parts C through G, as well as 
information generated from studies conducted and data collected 
under section 618.
  [(g) The Secretary shall, where appropriate, require 
recipients of all grants, contracts, and cooperative agreements 
under parts C through G to prepare reports describing their 
procedures, findings, and other relevant information in a form 
that will maximize the dissemination and use of such 
procedures, findings, and information. The Secretary shall 
require their delivery, as appropriate, to the Regional and 
Federal Resource Centers, the Clearinghouses, and the Technical 
Assistance to Parents Programs (TAPP) assisted under parts C 
and D, as well as the National Diffusion Network, the ERIC 
Clearinghouse on the Handicapped and Gifted, and the Child and 
Adolescent Service Systems Program (CASSP) under the National 
Institute of Mental Health, appropriate parent and professional 
organizations, organizations representing individuals with 
disabilities, and such other networks as the Secretary may 
determine to be appropriate.
  [(h)(1) The Secretary shall convene, in accordance with 
paragraph (2), panels of experts who are competent, by virtue 
of their training or experience, to evaluate proposals under 
section 618 and parts C through G.
  [(2) Panels under paragraph (1) shall be composed of 
individuals with disabilities, parents of such individuals, 
individuals from the fields of special education, related 
services, and other relevant disciplines.
  [(3) The Secretary shall convene panels under paragraph (1) 
for any application that includes a total funding request 
exceeding $60,000 and may convene or otherwise appoint panels 
for applications that include funding requests that are less 
than such amount.
  [(4) Panels under paragraph (1) shall include a majority of 
non-Federal members. Such non-Federal members shall be provided 
travel and per diem not to exceed the rate provided to other 
educational consultants used by the Department of Education and 
shall be provided consultant fees at such a rate.
  [(5) The Secretary may use funds available under section 618 
and parts C through G to pay expenses and fees of non-Federal 
members of the panels.
  [(i) The Secretary shall conduct at least 1 site visit for 
each grant, contract, and cooperative agreement receiving 
$300,000 or more annually under parts C through G.
  [(j)(1) With respect to the discretionary programs authorized 
by parts C through G, the Congress finds as follows:
          [(A)(i) The Federal Government must be responsive to 
        the growing needs of an increasingly more diverse 
        society. A more equitable allocation of resources is 
        essential for the Federal Government to meet its 
        responsibility to provide an equal educational 
        opportunity for all individuals.
          [(ii) America's racial profile is rapidly changing. 
        While the rate of increase for white Americans is 3.2 
        percent, the rate of increase for racial and ethnic 
        minorities is much higher: 38.6 percent for Hispanics, 
        14.6 percent for African-Americans, and 40.1 percent 
        for Asians and other ethnic groups.
          [(iii) By the year 2000, this Nation will have 
        260,000,000 people, one of every three of whom will be 
        either African-American, Hispanic, or Asian-American.
          [(iv) Taken together as a group, it is a more 
        frequent phenomenon for minorities to comprise the 
        majority of public school students. Large city school 
        populations are overwhelmingly minority, e.g., Miami, 
        71 percent; Philadelphia, 73 percent; Baltimore, 80 
        percent.
          [(v) Recruitment efforts within special education at 
        the level of preservice, continuing education, and 
        practice must focus on bringing larger numbers of 
        minorities into the profession in order to provide 
        appropriate practitioner knowledge, role models, and 
        sufficient manpower to address the clearly changing 
        demography of special education.
          [(vi) The limited English proficient population is 
        the fastest growing in our Nation, and the growth is 
        occurring in many parts of our Nation. In the Nation's 
        2 largest school districts, limited-English students 
        make up almost half of all students initially entering 
        school at the kindergarten level. Studies have 
        documented apparent discrepancies in the levels of 
        referral and placement of limited-English proficient 
        children in special education. The Department of 
        Education has found that services provided to limited-
        English proficient students often do not respond 
        primarily to the pupil's academic needs. These trends 
        pose special challenges for special education in the 
        referral, assessment, and services for our Nation's 
        students from non-English language backgrounds.
          [(B)(i) Greater efforts are needed to prevent the 
        intensification of problems connected with mislabeling 
        and high dropout rates among minority children with 
        disabilities.
          [(ii) 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.
          [(iii) Poor African-American children are 3.5 times 
        more likely to be identified by their teacher as 
        mentally retarded than their white counterpart.
          [(iv) Although African-Americans represent 12 percent 
        of elementary and secondary enrollments, they 
        constitute 28 percent of total enrollments in special 
        education.
          [(v) The drop out rate is 68 percent higher for 
        minorities than for whites.
          [(vi) More than 50 percent of minority students in 
        large cities drop out of school.
          [(C)(i) The opportunity for full participation in 
        awards for grants and contracts; boards of 
        organizations receiving funds under this Act; and peer 
        review panels; and training of professionals in the 
        area of special education by minority individuals, 
        organizations, and historically Black colleges and 
        universities is essential if we are to obtain greater 
        success in the education of minority children with 
        disabilities.
          [(ii) In 1989, of the 661,000 college and university 
        professors, 4.6 percent were African-American and 3.1 
        percent were Hispanic. Of the 3,600,000 teachers, 
        prekindergarten through high school, 9.4 percent were 
        African-American and 3.9 percent were Hispanic.
          [(iii) Students from minority groups comprise more 
        than 50 percent of K-12 public school enrollment in 
        seven States yet minority enrollment in teacher 
        training programs is less than 15 percent in all but 
        six States.
          [(iv) As the number of African-American and Hispanic 
        students in special education increases, the number of 
        minority teachers and related service personnel 
        produced in our colleges and universities continues to 
        decrease.
          [(v) Ten years ago, 12.5 percent of the United States 
        teaching force in public elementary and secondary 
        schools were members of a minority group. Minorities 
        comprised 21.3 percent of the national population at 
        that time and were clearly underrepresented then among 
        employed teachers. Today, the elementary and secondary 
        teaching force is 3 to 5 percent minority, while one-
        third of the students in public schools are minority 
        children.
          [(vi) As recently as 1984-85, Historically Black 
        Colleges and Universities (HBCUs) supplied nearly half 
        of the African-American teachers in the Nation. 
        However, in 1988, HBCUs received only 2 percent of the 
        discretionary funds for special education and related 
        services personnel training.
          [(vii) While African-American students constitute 28 
        percent of total enrollment in special education, only 
        11.2 percent of individuals enrolled in preservice 
        training programs for special education are African-
        American.
          [(viii) In 1986-87, of the degrees conferred in 
        education at the B.A., M.A., and Ph.D. levels, only 6, 
        8, and 8 percent, respectively, were awarded to 
        African-American or Hispanic students.
          [(D) Minorities and underserved persons are socially 
        disadvantaged because of the lack of opportunities in 
        training and educational programs, undergirded by the 
        practices in the private sector that impede their full 
        participation in the mainstream of society.
  [(2) The Congress further finds that these conditions can be 
greatly improved by providing opportunities for the full 
participation of minorities through the implementation of the 
following recommendations:
          [(A) Implementation of a policy to mobilize the 
        Nation's resources to prepare minorities for careers in 
        special education and related services.
          [(B) This policy should focus on--
                  [(i) the recruitment of minorities into 
                teaching; and
                  [(ii) financially assisting HBCUs and other 
                institutions of higher education (whose 
                minority student enrollment is at least 25 
                percent) to prepare students for special 
                education and related service careers.
          [(C)(i) The Secretary shall develop a plan for 
        providing outreach services to the entities described 
        in clause (ii) in order to increase the participation 
        of such entities in competitions for grants, contracts, 
        and cooperative agreements under any of parts C through 
        G.
          [(ii) The entities referred to in clause (i) are--
                  [(I) Historically Black Colleges and 
                Universities and other institutions of higher 
                education whose minority student enrollment is 
                at least 25 percent;
                  [(II) eligible institutions as defined in 
                section 312 of the Higher Education Act of 
                1965;
                  [(III) nonprofit and for-profit agencies at 
                least 51 percent owned or controlled by one or 
                more minority individuals; and
                  [(IV) underrepresented populations.
          [(iii) For the purpose of implementing the plan 
        required in clause (i), the Secretary shall, for each 
        of the fiscal years 1991 through 1994, expend 1 percent 
        of the funds appropriated for the fiscal year involved 
        for carrying out parts C through G.
  [(3) The Secretary shall exercise his/her utmost authority, 
resourcefulness, and diligence to meet the requirements of this 
subsection.
  [(4) Not later than January 31 of each year, starting with 
fiscal year 1991, the Secretary shall submit to Congress a 
final report on the progress toward meeting the goals of this 
subsection during the preceding fiscal year. The report shall 
include--
          [(i) a full explanation of any progress toward 
        meeting the goals of this subsection; and
          [(ii) a plan to meet the goals, if necessary.

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

                      [settlements and allocations

  [Sec. 611. (a)
          [(1) Except as provided in paragraph (5), the maximum 
        amount of the grant for which a State is entitled under 
        this section for any fiscal year is--
                  [(A) the sum of--
                          [(i) the number of children with 
                        disabilities in the State, aged 6 
                        through 21, who are receiving special 
                        education and related services, as 
                        determined under paragraph (3); and
                          [(ii) if the State is eligible for a 
                        grant under section 619, the number of 
                        such children in the State, aged 3 
                        through 5; multiplied by
                  [(B) 40 percent of the average per-pupil 
                expenditure in public elementary and secondary 
                schools in the United States.
          [(2) 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.
          [(3) The number of children with disabilities 
        receiving special education and related services in any 
        fiscal year shall be equal to the number of such 
        children receiving special education and related 
        services on December 1 of the fiscal year preceding the 
        fiscal year for which the determination is made.
          [(4) For purposes of paragraph (1)(B), the term 
        ``average per pupil expenditure'', in the United 
        States, means the aggregate current expenditures, 
        during the second fiscal year preceding the fiscal year 
        for which the computation is made (or, if satisfactory 
        data for such year are not available at the time of 
        computation, then during the most recent preceding 
        fiscal year for which satisfactory data are available) 
        of all local educational agencies in the United States 
        (which, for purposes of this subsection, means the 
        fifty States and the District of Columbia), as the case 
        may be, plus any direct expenditures by the State for 
        operation of such agencies (without regard to the 
        source of funds from which either of such expenditures 
        are made), divided by the aggregate number of children 
        in average daily attendance to whom such agencies 
        provided free public education during such preceding 
        year.
          [(5)(A) In determining the allotment of each State 
        under paragraph (1), the Secretary may not count--
                  [(i) children with disabilities aged three to 
                seventeen, inclusive, in such State under 
                paragraph (1)(A) to the extent the number of 
                such children is greater than 12 percent of the 
                number of all children aged three to seventeen, 
                inclusive, in such State, or the combined 
                percentage of such children counted by the 
                Secretary for the purpose of making fiscal year 
                1994 allocations under this section and under 
                subpart 2 of part D of chapter 1 of title I of 
                the Elementary and Secondary Education Act of 
                1965 (as such subpart was in effect on the day 
                preceding the date of enactment of the 
                Improving America's Schools Act of 1994), 
                whichever is greater, if the State serves all 
                children with disabilities aged three to five, 
                inclusive, in the State pursuant to State law 
                or practice or the order of any court, and
                  [(ii) children with disabilities aged five to 
                seventeen, inclusive, in such State under 
                paragraph (1)(A) to the extent the number of 
                such children is greater than 12 percent of the 
                number of all children aged five to seventeen, 
                inclusive, in such State, or the combined 
                percentage of such children counted by the 
                Secretary for the purpose of making fiscal year 
                1994 allocations under this section and under 
                subpart 2 of part D of chapter 1 of title I of 
                the Elementary and Secondary Education Act of 
                1965 (as such subpart was in effect on the day 
                preceding the date of enactment of the 
                Improving America's Schools Act of 1994), 
                whichever is greater, if the State does not 
                serve all children with disabilities aged three 
                to five, inclusive, in the State pursuant to 
                State law or practice or the order of any 
                court.
          [(B) For purposes of subparagraph (A), the number of 
        children aged three to seventeen, inclusive, in any 
        State shall be determined by the Secretary on the basis 
        of the most recent satisfactory data available to the 
        Secretary.
  [(b)(1) Notwithstanding subsections (a) and (g), no State 
shall receive an amount under this section for any of the 
fiscal years 1995 through 1999 that is less than the sum of the 
amount such State received for fiscal year 1994 under--
          [(A) this section; and
          [(B) subpart 2 of part D of chapter 1 of title I of 
        the Elementary and Secondary Education Act of 1965 (as 
        such subpart was in effect on the day preceding the 
        date of enactment of the Improving America's Schools 
        Act of 1994) for children with disabilities aged 3 
        through 21.
  [(2) If, for fiscal year 1998 or 1999, the number of children 
determined under subsection (a)(3) for any State is less than 
the total number of children with disabilities, aged 3 through 
21, counted for that State's fiscal year 1994 grants under this 
section and under subpart 2 of part D of chapter 1 of title I 
of the Elementary and Secondary Education Act of 1965 (as such 
subpart was in effect on the day preceding the date of 
enactment of the Improving America's Schools Act of 1994), then 
the amount determined under paragraph (1) for that State shall 
be reduced by the same percentage by which the number of those 
children so declined.
  [(3)(A) 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 paragraphs (1) and (2) for 
such year, the Secretary shall ratably reduce the allocations 
to such States for such year.
  [(B) If additional funds become available for making payments 
under paragraphs (1) and (2) for such fiscal year, allocations 
that were reduced under subparagraph (A) shall be increased on 
the same basis as such allocations were reduced.
    [(c)(1) Of the funds received under subsection (a) by any 
State for any fiscal year--
          [(A) a State may use not more than 25 percent of such 
        funds in accordance with paragraph (2); and
          [(B) except as provided in paragraph (4), the State 
        shall distribute at least 75 percent of such funds to 
        local educational agencies and intermediate educational 
        units, in accordance with subsection (d), for use in 
        accordance with priorities established under section 
        612(3).
    [(2)(A) From the funds that any State may use under 
paragraph (1)(A) for any fiscal year, the State--
          [(i) may use 5 percent of the funds received under 
        this section or $450,000, whichever is greater, for 
        administrative costs related to carrying out sections 
        612 and 613; and
          [(ii) shall use the remainder--
                  [(I) to provide support services and direct 
                services, subject to subparagraph (B), in 
                accordance with priorities established under 
                section 612(3); and
                  [(II) for the administrative costs of 
                monitoring and complaint investigation, but 
                only to the extent that such costs exceed the 
                costs of administration incurred during fiscal 
                year 1985.
  [(B) The amount expended by any State from the funds 
available to such State under paragraph (1)(A) in any fiscal 
year for the provision of support services or for the provision 
of direct services shall be matched on a program basis by such 
State, from funds other than Federal funds, for the provision 
of support services or for the provision of direct services for 
the fiscal year involved.
  [(3) The provisions of section 613(a)(9) shall not apply with 
respect to amounts available for use by any State under 
paragraph (2).
  [(4)(A) No funds shall be distributed by any State under this 
subsection in any fiscal year to any local educational agency 
or intermediate educational unit in such State if--
          [(i) such local educational agency or intermediate 
        educational unit is entitled, under subsection (d), to 
        less than $7,500 for such fiscal year; or
          [(ii) such local educational agency or intermediate 
        educational unit has not submitted an application for 
        such funds which meets the requirements of section 614.
  [(B) Whenever the provisions of subparagraph (A) apply, the 
State involved shall use such funds to assure the provision of 
a free appropriate education to children with disabilities 
residing in the area served by such local educational agency or 
such intermediate educational unit. The provisions of paragraph 
(2)(B) shall not apply to the use of such funds.
  [(d)(1) From the total amount of funds available for any 
fiscal year under subsection (c)(1)(B), the State shall provide 
to each local educational agency or intermediate educational 
unit an amount that bears the same ratio to such total amount 
as the number of children, aged 3 through 21, determined under 
subsection (a)(3) for such agency or unit bears to the total 
number of such children determined for all such agencies and 
units that apply for such funds.
  [(2)(A) To the extent necessary, the State--
          [(i) shall use funds available under subsection 
        (c)(2)(A)(ii) to ensure that each State agency that 
        received funds for fiscal year 1994 under subpart 2 of 
        part D of chapter 1 of title I of the Elementary and 
        Secondary Education Act of 1965 (as such subpart was in 
        effect on the day preceding the date of enactment of 
        the Improving America's Schools Act of 1994) receives, 
        from the sum of such funds and funds provided under 
        paragraph (1), an amount equal to--
                  [(I) the number of children, aged 6 through 
                21, determined under subsection (a)(3) for such 
                agency; multiplied by
                  [(II) the per-child amount provided under 
                such subpart for fiscal year 1994; and
          [(ii) may use such funds to ensure that each local 
        educational agency that received for fiscal year 1994 
        under such subpart for children who had transferred 
        from a State-owned, State-operated, or State-supported 
        school or program assisted under such subpart receives, 
        from the sum of such funds and funds provided under 
        paragraph (1), an amount for each such child, aged 3 
        through 21, determined under subsection (a)(3) for such 
        agency, equal to the per-child amount the agency 
        received under such subpart for fiscal year 1994.
  [(B) For the purpose of subparagraph (A), the number of 
children determined under subsection (a)(3) for any State 
agency or local educational agency shall not exceed the number 
of children aged 3 through 21 for whom such agency received 
funds under such subpart for such fiscal year.
  [(e)(1) The jurisdictions to which this subsection applies 
are Guam, American Samoa, the Virgin Islands, the Commonwealth 
of the Northern Mariana Islands, and Palau (until the Compact 
of Free Association with the Government of Palau takes effect).
  [(2) Each jurisdiction to which this subsection applies shall 
be entitled to a grant for the purposes set forth in section 
601(c) in an amount equal to an amount determined by the 
Secretary in accordance with criteria based on respective 
needs, except that the aggregate of the amount to which such 
jurisdictions are so entitled for any fiscal year shall not 
exceed an amount equal to 1 per centum of the aggregate of the 
amounts available to all States under this part for that fiscal 
year. If the aggregate of the amounts, determined by the 
Secretary pursuant to the preceding sentence, to be so needed 
for any fiscal year exceeds an amount equal to such 1 per 
centum limitation, the entitlement of each such jurisdiction 
shall be reduced proportionately until such aggregate does not 
exceed such 1 per centum limitation.
  [(3) The amount expended for administration by each 
jurisdiction under this subsection shall not exceed 5 per 
centum of the amount allotted to such jurisdiction for any 
fiscal year, or $35,000, whichever is greater.
  [(f)(1) The Secretary shall make payments to the Secretary of 
the Interior to meet the need for assistance for the education 
of children with disabilities on reservations aged 5-21, 
inclusive, enrolled in elementary and secondary schools for 
Indian children operated or funded by the Secretary of the 
Interior. In the case of Indian students ages 3-5, inclusive, 
who are enrolled in programs affiliated with Bureau of Indian 
Affairs (hereafter in this subsection referred to as ``BIA'') 
schools and that are required by the States in which such 
schools are located to attain or maintain State accreditation, 
and which schools have such accreditation prior to the date of 
enactment of the Individuals with Disabilities Education Act 
Amendments of 1991, the school shall be allowed to count those 
children for the purpose of distribution of the funds provided 
under this paragraph to the Secretary of the Interior. The 
Secretary of the Interior shall be responsible for meeting all 
of the requirements of this part for these children, in 
accordance with paragraph (3). The amount of such payment for 
any fiscal year shall be 1 percent of the aggregate amounts 
available for all States under this section for that fiscal 
year.
  [(2) With respect to all other children aged 3-21, inclusive, 
on reservations, the State educational agency shall be 
responsible for ensuring that all of the requirements of this 
part are implemented.
  [(3) The Secretary of the Interior may receive an allotment 
under paragraph (1) only after submitting to the Secretary of 
Education an application that--
          [(A) meets the appropriate requirements, as 
        determined by the Secretary of Education, of sections 
        612 (including monitoring and evaluation activities), 
        613, and 614(a);
          [(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 required under 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(b)(1), including data on the number of children and 
        youth with disabilities served and the types and 
        amounts of services provided and needed and this 
        information shall be included in the annual report of 
        the Secretary of Education to Congress required in 
        section 618(g);
          [(E) includes an assurance that, by October 1, 1992, 
        the Secretaries of the Interior and Health and Human 
        Services will enter 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/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 Act, and will fulfill its duties 
        under this Act.
Section 616(a) shall apply to any such application.
  [(4)(A) Beginning with funds appropriated under section 
611(a) for fiscal year 1992, the Secretary shall, subject to 
this paragraph, 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 consortiums of the above to provide for the 
coordination of assistance for special education and related 
services for children with disabilities aged 3-5, inclusive, on 
reservations served by elementary and secondary schools for 
Indian children operated or funded by the Department of the 
Interior. The amount of such payments under subparagraph (B) 
for any fiscal year shall be .25 percent of the aggregate 
amounts available for all States under this section for that 
fiscal year.
  [(B) The Secretary of the Interior shall distribute the total 
amount of the .25 percent under subparagraph (A) in the 
following manner:
          [(i) For the first fiscal year, each tribe or tribal 
        organization shall receive an amount proportionate to 
        the amount of weighted student units for special 
        education programs for BIA operated or funded schools 
        serving such reservation generated under the formula 
        established under section 1128 of the Education 
        Amendments of 1978, divided by the total number of such 
        students in all BIA operated or funded schools.
          [(ii) For each fiscal year thereafter, each tribe or 
        tribal organization shall receive an amount based on 
        the number of children with disabilities, ages 3-5, 
        inclusive, residing on reservations as reported 
        annually divided by the total of such children served 
        by all tribes or tribal organizations.
  [(C) 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) 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 3-5, 
inclusive, 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) To be eligible to receive a grant pursuant to 
subparagraph (A), the tribe or tribal organization shall make a 
biennial report to the Secretary of the Interior of activities 
undertaken under this paragraph, including the number of 
contracts and cooperative agreements entered into, the number 
of children contacted and receiving services for each year and 
the estimated number of children needing services during the 2 
years following the one in which the report is made. The 
Secretary of the Interior shall include a summary of this 
information on a biennial basis in the report to the Secretary 
of Education required under this subsection. The Secretary of 
Education may require any additional information from the 
Secretary of the Interior.
  [(F) The Secretary of the Interior shall offer and, on 
request, provide technical assistance (especially in the areas 
of child find, diagnosis, and referral) to State and local 
educational agencies (where appropriate, intermediate 
educational units), and tribes and tribal organizations. Such 
assistance may be provided through its divisions and offices at 
the national and local level.
  [(G) None of the funds allocated under this paragraph can be 
used by the Secretary of the Interior for administrative 
purposes, including child count, and the provision of technical 
assistance.
  [(5) Before January 1, 1992, the Secretary of the Interior 
shall submit to the Committee on Education and Labor of the 
House of Representatives and the Committee on Labor and Human 
Resources of the Senate a plan for the coordination of services 
for all Indian children with disabilities residing on 
reservations covered under this Act. Such plan shall provide 
for the coordination of services benefiting these children from 
whatever source, including tribes, the Indian Health Service, 
other BIA divisions, and other Federal agencies. In developing 
such a plan, the Secretary of the Interior shall consult with 
all interested and involved parties. It shall be based upon the 
needs of the children and the system best suited for meeting 
those needs, and may involve the establishment of cooperative 
agreements between the BIA, other Federal agencies, and other 
entities. Such plan shall also be distributed upon request to 
States, State and local educational agencies, and other 
agencies providing services to infants, toddlers, children, and 
youth with disabilities, to tribes, and to other interested 
parties.
  [(6) To meet the requirements of sections 613(a)(12) of this 
Act, the Secretary of the Interior shall establish, within 6 
months of the date of the enactment of the Individuals with 
Disabilities Education Act Amendments of 1991, under the Bureau 
of Indian Affairs (BIA), an advisory board composed of 
individuals involved in or concerned with the education and 
provision of services to Indian infants, toddlers, children, 
and youth with disabilities, including Indians with 
disabilities, Indian parents or guardians of such children, 
teachers, service providers, State and local educational 
officials, representatives of tribes or tribal organizations, 
representatives from State Interagency Coordinating Councils in 
States having reservations, and other members representing the 
various divisions and entities of the BIA. The chairperson 
shall be selected by the Secretary of the Interior. The 
advisory board shall--
          [(A) assist in the coordination of services within 
        BIA and with other local, State, and Federal agencies 
        in the provision of education for infants, toddlers, 
        children, and youth with disabilities;
          [(B) advise and assist the Secretary of the Interior 
        in the performance of the Secretary's responsibilities 
        described in this subsection;
          [(C) develop and recommend policies concerning 
        effective inter- and intra-agency collaboration, 
        including modifications to regulations, and the 
        elimination of barriers to inter- and intra-agency 
        programs and activities;
          [(D) provide assistance and disseminate information 
        on best practices, effective program coordination 
        strategies, and recommendations for improved 
        educational programming for Indian infants, toddlers, 
        children, and youth with disabilities; and
          [(E) provide assistance in the preparation of 
        information required under paragraph (3)(D).
  [(g)(1)(A) If the sums appropriated under subsection (h) for 
any fiscal year are not sufficient to pay in full the total of 
the amounts that all States are eligible to receive under 
subsection (a), each such amount shall be ratably reduced.
  [(B) If additional funds become available for making such 
payments for any fiscal year, such reduced amounts shall be 
increased on the same basis as such payments were reduced.
  [(C) Any State that receives any such additional funds shall 
distribute such funds in accordance with this section, except 
that any State that has used funds available under subsection 
(c)(2)(A)(ii) for the purposes described in subsection (d)(2) 
may--
          [(i) deduct, from the amount that the State would 
        otherwise be required to make available to local 
        educational agencies and intermediate educational 
        units, the same amount of such additional funds as the 
        State so used; and
          [(ii) use such funds in accordance with subsection 
        (c)(2)(A)(ii).
  [(2)(A) In any fiscal year for which payments have been 
reduced and additional funds have not been made available under 
paragraph (1) to pay in full the amounts for which all States 
are eligible under this section, each State educational agency 
shall fix dates by which each local educational agency or 
intermediate educational unit shall report to the State agency 
the amount of funds available to such agency under this section 
that such agency estimates such agency will expend.
  [(B) The State educational agency shall, in accordance with 
this section, reallocate any funds that the State educational 
agency determines will not be used during the period of 
availability by local educational agencies and intermediate 
educational units, and by any such agency or unit to which such 
funds would be available if such agency or unit applied for 
such funds under this part, to those local educational agencies 
and intermediate educational units that the State educational 
agency determines will need, and be able to use, additional 
funds to carry out approved programs.
  [(h) For grants under subsection (a) there are authorized to 
be appropriated such sums as may be necessary.

                              [eligibility

  [Sec. 612. In order to qualify for assistance under this part 
in any fiscal year, a State shall demonstrate to the Secretary 
that the following conditions are met:
          [(1) The State has in effect a policy that assures 
        all children with disabilities the right to a free 
        appropriate public education.
          [(2) The State has developed a plan pursuant to 
        section 613(b) in effect prior to the date of the 
        enactment of the Education for All Handicapped Children 
        Act of 1975 and submitted not later than August 21, 
        1975, which will be amended so as to comply with the 
        provisions of this paragraph. Each such amended plan 
        shall set forth in detail the policies and procedures 
        which the State will undertake or has undertaken in 
        order to assure that--
                  [(A) there is established (i) a goal of 
                providing full educational opportunity to all 
                children with disabilities, (ii) a detailed 
                timetable for accomplishing such a goal, and 
                (iii) a description of the kind and number of 
                facilities, personnel, and services necessary 
                throughout the State to meet such a goal;
                  [(B) a free appropriate public education will 
                be available for all children with disabilities 
                between the ages of three and eighteen within 
                the State not later than September 1, 1978, and 
                for all children with disabilities between the 
                ages of three and twenty-one within the State 
                not later than September 1, 1980, except that, 
                with respect to children with disabilities aged 
                three to five and aged eighteen to twenty-one, 
                inclusive, the requirements of this clause 
                shall not be applied in any State if the 
                application of such requirements would be 
                inconsistent with State law or practice, or the 
                order of any court, respecting public education 
                within such age groups in the State;
                  [(C) all children residing in the State who 
                are disabled, regardless of the severity of 
                their disability, and who are in need of 
                special education and related services are 
                identified, located, and evaluated, and that a 
                practical method is developed and implemented 
                to determine which children are currently 
                receiving needed special education and related 
                services and which children are not currently 
                receiving needed special education and related 
                services;
                  [(D) policies and procedures are established 
                in accordance with detailed criteria prescribed 
                under section 617(c); and
                  [(E) any amendment to the plan submitted by 
                the State required by this section shall be 
                available to parents, guardians, and other 
                members of the general public at least thirty 
                days prior to the date of submission of the 
                amendment to the Secretary.
          [(3) The State has established priorities for 
        providing a free appropriate public education to all 
        children with disabilities, which priorities shall meet 
        the timetables set forth in clause (B) of paragraph (2) 
        of this section, first with respect to children with 
        disabilities who are not receiving an education, and 
        second with respect to children with disabilities, 
        within each disability category, with the most severe 
        disabilities who are receiving an inadequate education, 
        and has made adequate progress in meeting the 
        timetables set forth in clause (B) of paragraph (2) of 
        this section.
          [(4) Each local educational agency in the State will 
        maintain records of the individualized education 
        program for each child with a disability, and such 
        program shall be established, reviewed, and revised as 
        provided in section 614(a)(5).
          [(5) The State has established (A) procedural 
        safeguards as required by section 615, (B) procedures 
        to assure that, 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 that 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 is such that 
        education in regular classes with the use of 
        supplementary aids and services cannot be achieved 
        satisfactorily, and (C) procedures to assure that 
        testing and evaluation materials and procedures 
        utilized for the purposes of evaluation and placement 
        of children with disabilities will be selected and 
        administered so as not to be racially or culturally 
        discriminatory. Such materials or procedures shall be 
        provided and administered in the child's native 
        language or mode of communication, unless it clearly is 
        not feasible to do so, and no single procedure shall be 
        the sole criterion for determining an appropriate 
        educational program for a child.
          [(6) The State educational agency shall be 
        responsible for assuring that the requirements of this 
        part are carried out and that all educational programs 
        for children with disabilities within the State, 
        including all such programs administered by any other 
        State or local agency, will be under the general 
        supervision of the persons responsible for educational 
        programs for children with disabilities in the State 
        educational agency and shall meet educational standards 
        of the State educational agency. This paragraph shall 
        not be construed to limit the responsibility of 
        agencies other than educational agencies in a State 
        from providing or paying for some or all of the costs 
        of a free appropriate public education to be provided 
        children with disabilities in the State.
          [(7) The State shall assure that (A) in carrying out 
        the requirements of this section procedures are 
        established for consultation with individuals involved 
        in or concerned with the education of children with 
        disabilities, including individuals with disabilities 
        and parents or guardians of children with disabilities, 
        and (B) there are public hearings, adequate notice of 
        such hearings, and an opportunity for comment available 
        to the general public prior to adoption of the 
        policies, programs, and procedures required pursuant to 
        the provisions of this section and section 613.

                              [state plans

  [Sec. 613. (a) Any State meeting the eligibility requirements 
set forth in section 612 and desiring to participate in the 
program under this part shall submit to the Secretary, through 
its State educational agency, a State plan at such time, in 
such manner, and containing or accompanied by such information, 
as the Secretary deems necessary. Each such plan shall--
          [(1) set forth policies and procedures designed to 
        assure that funds paid to the State under this part 
        will be expended in accordance with the provisions of 
        this part, with particular attention given to the 
        provisions of sections 611(b), 611(c), 611(d), 612(2), 
        and 612(3);
          [(2) provide that programs and procedures will be 
        established to assure that funds received by the State 
        or any of its political subdivisions under any other 
        Federal program under which there is specific authority 
        for the provision of assistance for the education of 
        children with disabilities, will be utilized by the 
        State, or any of its political subdivisions, only in a 
        manner consistent with the goal of providing a free 
        appropriate public education for all children with 
        disabilities, except that nothing in this clause shall 
        be construed to limit the specific requirements of the 
        laws governing such Federal programs;
          [(3) describe, consistent with the purposes of this 
        Act and with the comprehensive system of personnel 
        development described in section 676(b)(8), a 
        comprehensive system of personnel development that 
        shall include--
                  [(A) a description of the procedures and 
                activities the State will undertake to ensure 
                an adequate supply of qualified special 
                education and related services personnel, 
                including--
                          [(i) the development and maintenance 
                        of a system for determining, on an 
                        annual basis--
                                  [(I) the number and type of 
                                personnel, including leadership 
                                personnel, that are employed in 
                                the provision of special 
                                education and related services, 
                                by area of specialization, 
                                including the number of such 
                                personnel who are employed on 
                                an emergency, provisional, or 
                                other basis, who do not hold 
                                appropriate State certification 
                                or licensure; and
                                  [(II) the number and type of 
                                personnel, including leadership 
                                personnel, needed, and a 
                                projection of the numbers of 
                                such personnel that will be 
                                needed in five years, based on 
                                projections of individuals to 
                                be served, retirement and other 
                                leaving of personnel from the 
                                field, and other relevant 
                                factors;
                          [(ii) the development and maintenance 
                        of a system for determining, on an 
                        annual basis, the institutions of 
                        higher education within the State that 
                        are preparing special education and 
                        related services personnel, including 
                        leadership personnel, by area of 
                        specialization, including--
                                  [(I) the numbers of students 
                                enrolled in such programs, and
                                  [(II) the number who 
                                graduated with certification or 
                                licensure, or with credentials 
                                to qualify for certification or 
                                licensure, during the past 
                                year; and
                          [(iii) the development, updating, and 
                        implementation of a plan that--
                                  [(I) will address current and 
                                projected special education and 
                                related services personnel 
                                needs, including the need for 
                                leadership personnel; and
                                  [(II) coordinates and 
                                facilitates efforts among State 
                                and local educational agencies, 
                                institutions of higher 
                                education, and professional 
                                associations to recruit, 
                                prepare, and retain qualified 
                                personnel, including personnel 
                                from minority backgrounds, and 
                                personnel with disabilities; 
                                and
                  [(B) a description of the procedures and 
                activities the State will undertake to ensure 
                that all personnel necessary to carry out this 
                part are appropriately and adequately prepared, 
                including--
                          [(i) a system for the continuing 
                        education of regular and special 
                        education and related services 
                        personnel;
                          [(ii) procedures for acquiring and 
                        disseminating to teachers, 
                        administrators, and related services 
                        personnel significant knowledge derived 
                        from education research and other 
                        sources; and
                          [(iii) procedures for adopting, where 
                        appropriate, promising practices, 
                        materials, and technology.
          [(4) set forth policies and procedures to assure--
                  [(A) that, to the extent consistent with the 
                number and location of children with 
                disabilities in the State who are enrolled in 
                private elementary and secondary schools, 
                provision is made for the participation of such 
                children in the program assisted or carried out 
                under this part by providing for such children 
                special education and related services; and
                  [(B) that--
                          [(i) children with disabilities in 
                        private schools and facilities will be 
                        provided special education and related 
                        services (in conformance with an 
                        individualized education program as 
                        required by this part) at no cost to 
                        their parents or guardian, 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, and
                          [(ii) in all such instances, the 
                        State educational agency shall 
                        determine whether such schools and 
                        facilities meet standards that apply to 
                        State and local educational agencies 
                        and that children so served have all 
                        the rights they would have if served by 
                        such agencies;
          [(5) set forth policies and procedures which assure 
        that the State shall seek to recover any funds made 
        available under this part for services to any child who 
        is determined to be erroneously classified as eligible 
        to be counted under section 611(a) or section 611(d);
          [(6) provide satisfactory assurance that the control 
        of funds provided under this part, and title to 
        property derived therefrom, shall 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;
          [(7) provide for--
                  [(A) making such reports in such form and 
                containing such information as the Secretary 
                may require to carry out the Secretary's 
                functions under this part, and
                  [(B) keeping such records and affording such 
                access thereto as the Secretary may find 
                necessary to assure the correctness and 
                verification of such reports and proper 
                disbursement of Federal funds under this part;
          [(8) provide procedures to assure that final action 
        with respect to any application submitted by a local 
        educational agency or an intermediate educational unit 
        shall not be taken without first affording the local 
        educational agency or intermediate educational unit 
        involved reasonable notice and opportunity for a 
        hearing;
          [(9) provide satisfactory assurance that Federal 
        funds made available under this part--
                  [(A) will not be commingled with State funds, 
                and
                  [(B) will be so used as to supplement and 
                increase 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 part the requirement of this 
                subparagraph if the Secretary concurs with the 
                evidence provided by the State;
          [(10) provide, consistent with procedures prescribed 
        pursuant to section 617(a)(2), satisfactory assurance 
        that such fiscal control and fund accounting procedures 
        will be adopted as may be necessary to assure proper 
        disbursement of, and accounting for, Federal funds paid 
        under this part to the State, including any such funds 
        paid by the State to local educational agencies and 
        intermediate educational units;
          [(11) provide for procedures for evaluation at least 
        annually of the effectiveness of programs in meeting 
        the educational needs of children with disabilities 
        (including evaluation of individualized education 
        programs), in accordance with such criteria that the 
        Secretary shall prescribe pursuant to section 617;
          [(12) provide that the State has an advisory panel, 
        appointed by the Governor or any other official 
        authorized under State law to make such appointments, 
        composed of individuals involved in or concerned with 
        the education of children with disabilities, including 
        individuals with disabilities, teachers, parents or 
        guardians of children with disabilities, State and 
        local education officials, and administrators of 
        programs for children with disabilities, which--
                  [(A) advises the State educational agency of 
                unmet needs within the State in the education 
                of children with disabilities,
                  [(B) comments publicly on any rules or 
                regulations proposed for issuance by the State 
                regarding the education of children with 
                disabilities and the procedures for 
                distribution of funds under this part, and
                  [(C) assists the State in developing and 
                reporting such data and evaluations as may 
                assist the Secretary in the performance of the 
                responsibilities of the Secretary under section 
                618;
          [(13) set forth policies and procedures for 
        developing and implementing interagency agreements 
        between the State educational agency and other 
        appropriate State and local agencies to--
                  [(A) define the financial responsibility of 
                each agency for providing children and youth 
                with disabilities with free appropriate public 
                education, and
                  [(B) resolve interagency disputes, including 
                procedures under which local educational 
                agencies may initiate proceedings under the 
                agreement in order to secure reimbursement from 
                other agencies or otherwise implement the 
                provisions of the agreement;
          [(14) set forth policies and procedures relating to 
        the establishment and maintenance of standards to 
        ensure that personnel necessary to carry out the 
        purposes of this part are appropriately and adequately 
        prepared and trained, including--
                  [(A) the establishment and maintenance of 
                standards which are consistent with any State 
                approved or recognized certification, 
                licensing, registration, or other comparable 
                requirements which apply to the area in which 
                such personnel are providing special education 
                or related services, and
                  [(B) to the extent such standards are not 
                based on the highest requirements in the State 
                applicable to a specific profession or 
                discipline, the steps the State is taking to 
                require the retraining or hiring of personnel 
                that meet appropriate professional requirements 
                in the State; and
          [(15) set forth policies and procedures relating to 
        the smooth transition for those individuals 
        participating in the early intervention program 
        assisted under part H who will participate in preschool 
        programs assisted under this part, including a method 
        of ensuring that when a child turns age three an 
        individualized education program, or, if consistent 
        with sections 614(a)(5) and 677(d), an individualized 
        family service plan, has been developed and is being 
        implemented by such child's third birthday.
  [(b) Whenever a State educational agency provides free 
appropriate public education for children with disabilities, or 
provides direct services to such children, such State 
educational agency shall include, as part of the State plan 
required by subsection (a) of this section, such additional 
assurances not specified in such subsection (a) as are 
contained in section 614(a), except that funds available for 
the provision of such education or services may be expended 
without regard to the provisions relating to excess costs in 
section 614(a).
  [(c)(1) The Secretary shall approve any State plan and any 
modification thereof which--
          [(A) is submitted by a State eligible in accordance 
        with section 612; and
          [(B) meets the requirements of subsection (a) and 
        subsection (b).
  [(2) The Secretary shall disapprove any State plan which does 
not meet the requirements of paragraph (1), but shall not 
finally disapprove a State plan except after reasonable notice 
and opportunity for a hearing to the State.
  [(d)(1) If, on the date of enactment of the Education of the 
Handicapped Act Amendments of 1983, a State educational agency 
is prohibited by law from providing for the participation in 
special programs of children with disabilities enrolled in 
private elementary and secondary schools as required by 
subsection (a)(4), the Secretary shall waive such requirement, 
and shall arrange for the provision of services to such 
children through arrangements which shall be subject to the 
requirements of subsection (a)(4).
  [(2)(A) When 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 an amount per child which may not 
exceed the Federal amount provided per child under this part to 
all children with disabilities enrolled in the State for 
services for the fiscal year preceding the fiscal year for 
which the determination is made.
  [(B) Pending final resolution of any investigation or 
complaint that could result in a determination under this 
subsection, the Secretary may withhold from the allocation of 
the affected State educational agency the amount the Secretary 
estimates would be necessary to pay the cost of such services.
  [(C) Any determination by the Secretary under this section 
shall continue in effect 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)(4).
  [(3)(A) 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) If a State educational agency is dissatisfied with the 
Secretary's final action after a proceeding under subparagraph 
(A) of this paragraph, it may, within 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) 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) Upon the filing of a petition under subparagraph (B), 
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.
  [(e) This Act shall not be construed to permit a State to 
reduce medical and other assistance available or to alter 
eligibility under titles V and XIX of the Social Security Act 
with respect to the provision of a free appropriate public 
education for children with disabilities within the State.

                              [application

  [Sec. 614. (a) A local educational agency or an intermediate 
educational unit which desires to receive payments under 
section 611(d) for any fiscal year shall submit an application 
to the appropriate State educational agency. Such application 
shall--
          [(1) provide satisfactory assurance that payments 
        under this part will be used for excess costs directly 
        attributable to programs which--
                  [(A) provide that all children residing 
                within the jurisdiction of the local 
                educational agency or the intermediate 
                educational unit who are disabled, regardless 
                of the severity of their disability, and are in 
                need of special education and related services 
                will be identified, located, and evaluated, and 
                provide for the inclusion of a practical method 
                of determining which children are currently 
                receiving needed special education and related 
                services and which children are not currently 
                receiving such education and services;
                  [(B) establish policies and procedures in 
                accordance with detailed criteria prescribed 
                under section 617(c);
                  [(C) establish a goal of providing full 
                educational opportunities to all children with 
                disabilities, including--
                          [(i) procedures for the 
                        implementation and use of the 
                        comprehensive system of personnel 
                        development established by the State 
                        educational agency under section 
                        613(a)(3);
                          [(ii) the provision of, and the 
                        establishment of priorities for 
                        providing, a free appropriate public 
                        education to all children with 
                        disabilities, first with respect to 
                        handicapped children who are not 
                        receiving an education, and second with 
                        respect to children with disabilities, 
                        within each disability, with the most 
                        severe disabilities who are receiving 
                        an inadequate education;
                          [(iii) the participation and 
                        consultation of the parents or guardian 
                        of such children; and
                          [(iv) to the maximum extent 
                        practicable and consistent with the 
                        provisions of section 612(5)(B), the 
                        provision of special services to enable 
                        such children to participate in regular 
                        educational programs;
                  [(D) establish a detailed timetable for 
                accomplishing the goal described in subclause 
                (C); and
                  [(E) provide a description of the kind and 
                number of facilities, personnel, and services 
                necessary to meet the goal described in 
                subclause (C);
          [(2) provide satisfactory assurance that--
                  [(A) the control of funds provided under this 
                part, and title to property derived from such 
                funds, shall 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,
                  [(B) Federal funds expended by local 
                educational agencies and intermediate 
                educational units for programs under this 
                part--
                          [(i) shall be used to pay only the 
                        excess costs directly attributable to 
                        the education of children with 
                        disabilities; and
                          [(ii) shall be used to supplement 
                        and, to the extent practicable, 
                        increase the level of State and local 
                        funds expended for the education of 
                        children with disabilities, and in no 
                        case to supplant such State and local 
                        funds; and
                  [(C) State and local funds will be used in 
                the jurisdiction of the local educational 
                agency or intermediate educational unit to 
                provide services in program areas that, taken 
                as a whole, are at least comparable to services 
                being provided in areas of such jurisdiction 
                that are not receiving funds under this part;
          [(3) provide for--
                  [(A) furnishing such information (which, in 
                the case of reports relating to performance, is 
                in accordance with specific performance 
                criteria related to program objectives), as may 
                be necessary to enable the State educational 
                agency to perform its duties under this part, 
                including information relating to the 
                educational achievement of children with 
                disabilities participating in programs carried 
                out under this part; and
                  [(B) keeping such records, and affording such 
                access to such records, as the State 
                educational agency may find necessary to assure 
                the correctness and verification of such 
                information furnished under subparagraph (A);
          [(4) provide for making the application and all 
        pertinent documents related to such application 
        available to parents, guardians, and other members of 
        the general public, and provide that all evaluations 
        and reports required under clause (3) shall be public 
        information;
          [(5) provide assurances that the local educational 
        agency or intermediate educational unit will establish 
        or revise, whichever is appropriate, an individualized 
        education program for each child with a disability (or, 
        if consistent with State policy and at the discretion 
        of the local educational agency or intermediate 
        educational unit, and with the concurrence of the 
        parents or guardian, an individualized family service 
        plan described in section 677(d) for each child with a 
        disability aged 3 to 5, inclusive) at the beginning of 
        each school year and will then review and, if 
        appropriate, revise, its provisions periodically, but 
        not less than annually;
          [(6) provide satisfactory assurance that policies and 
        programs established and administered by the local 
        educational agency or intermediate educational unit 
        shall be consistent with the provisions of paragraph 
        (1) through paragraph (7) of section 612 and section 
        613(a); and
          [(7) provide satisfactory assurance that the local 
        educational agency or intermediate educational unit 
        will establish and maintain procedural safeguards in 
        accordance with the provisions of sections 612(5)(B), 
        612(5)(C), and 615.
  [(b)(1) A State educational agency shall approve any 
application submitted by a local educational agency or an 
intermediate educational unit under subsection (a) if the State 
educational agency determines that such application meets the 
requirements of subsection (a), except that no such application 
may be approved until the State plan submitted by such State 
educational agency under subsection (a) is approved by the 
Secretary under section 613(c). A State educational agency 
shall disapprove any application submitted by a local 
educational agency or an intermediate educational unit under 
subsection (a) if the State educational agency determines that 
such application does not meet the requirements of subsection 
(a).
  [(2)(A) Whenever a State educational agency, after reasonable 
notice and opportunity for a hearing, finds that a local 
educational agency or an intermediate educational unit, in the 
administration of an application approved by the State 
educational agency under paragraph (1), has failed to comply 
with any requirement set forth in such application, the State 
educational agency, after giving appropriate notice to the 
local educational agency or the intermediate educational unit, 
shall--
          [(i) make no further payments to such local 
        educational agency or such intermediate educational 
        unit under section 620 until the State educational 
        agency is satisfied that there is no longer any failure 
        to comply with the requirement involved; or
          [(ii) take such finding into account in its review of 
        any application made by such local educational agency 
        or such intermediate educational unit under subsection 
        (a).
  [(B) The provisions of the last sentence of section 616(a) 
shall apply to any local educational agency or any intermediate 
educational unit receiving any notification from a State 
educational agency under this paragraph.
  [(3) In carrying out its functions under paragraph (1), each 
State educational agency shall consider any decision made 
pursuant to a hearing held under section 615 which is adverse 
to the local educational agency or intermediate educational 
unit involved in such decision.
  [(c)(1) A State educational agency may, for purposes of the 
consideration and approval of applications under this section, 
require local educational agencies to submit a consolidated 
application for payments if such State educational agency 
determines that any individual application submitted by any 
such local educational agency will be disapproved because such 
local educational agency is ineligible to receive payments 
because of the application of section 611(c)(4)(A)(i) or such 
local educational agency would be unable to establish and 
maintain programs of sufficient size and scope to effectively 
meet the educational needs of children with disabilities.
  [(2)(A) In any case in which a consolidated application of 
local educational agencies is approved by a State educational 
agency under paragraph (1), the payments which such local 
educational agencies may receive shall be equal to the sum of 
payments to which each such local educational agency would be 
entitled under section 611(d) if an individual application of 
any such local educational agency had been approved.
  [(B) The State educational agency shall prescribe rules and 
regulations with respect to consolidated applications submitted 
under this subsection which are consistent with the provisions 
of paragraph (1) through paragraph (7) of section 612 and 
section 613(a) and which provide participating local 
educational agencies with joint responsibilities for 
implementing programs receiving payments under this part.
  [(C) In any case in which an intermediate educational unit is 
required pursuant to State law to carry out the provisions of 
this part, the joint responsibilities given to local 
educational agencies under subparagraph (B) shall not apply to 
the administration and disbursement of any payments received by 
such intermediate educational unit. Such responsibilities shall 
be carried out exclusively by such intermediate educational 
unit.
  [(d) Whenever a State educational agency determines that a 
local educational agency--
          [(1) is unable or unwilling to establish and maintain 
        programs of free appropriate public education which 
        meet the requirements established in subsection (a);
          [(2) is unable or unwilling to be consolidated with 
        other local educational agencies in order to establish 
        and maintain such programs; or
          [(3) has one or more children with disabilities who 
        can best be served by a regional or State center 
        designed to meet the needs of such children;
the State educational agency shall use the payments which would 
have been available to such local educational agency to provide 
special education and related services directly to children 
with disabilities residing in the area served by such local 
educational agency. The State educational agency may provide 
such education and services in such manner, and at such 
locations (including regional or State centers), as it 
considers appropriate, except that the manner in which such 
education and services are provided shall be consistent with 
the requirements of this part.
  [(e) Whenever 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 such agency with State and local 
funds otherwise available to such agency, the State educational 
agency may reallocate funds (or such portion of those funds as 
may not be required to provide such education and services) 
made available to such agency, pursuant to section 611(d), to 
such other local educational agencies within the State as are 
not adequately providing special education and related services 
to all children with disabilities residing in the areas served 
by such other local educational agencies.
  [(f) Notwithstanding the provisions of subsection 
(a)(2)(B)(ii), any local educational agency which is required 
to carry out any program for the education of children with 
disabilities pursuant to a State law shall be entitled to 
receive payments under section 611(d) for use in carrying out 
such program, except that such payments may not be used to 
reduce the level of expenditures for such program made by such 
local educational agency from State or local funds below the 
level of such expenditures for the fiscal year prior to the 
fiscal year for which such local educational agency seeks such 
payments.

                 [TREATMENT OF CHAPTER 1 STATE AGENCIES

  [Sec. 614A. (a) For the purpose of making payments under 
sections 611 and 619 of this Act, any State agency that 
received funds for fiscal year 1994 under subpart 2 of part D 
of chapter 1 of title I of the Elementary and Secondary 
Education Act of 1965 (as such subpart was in existence on the 
day preceding the date of enactment of the Improving America's 
Schools Act of 1994) shall be treated as if the State agency 
were a local educational agency.
  [(b) Any State agency which desires to receive payments under 
section 611(d) and section 619(c)(3) for any fiscal year shall 
submit an application to the State educational agency. Such 
application shall--
          [(1) include an assurance that all children with 
        disabilities who are participating in programs and 
        projects funded under this part receive a free 
        appropriate public education, and that such children 
        and their parents are provided all the rights and 
        procedural safeguards described in this part; and
          [(2) meet those requirements of section 614 that the 
        Secretary finds appropriate.
  [(c) Section 611(c)(4) shall not apply with respect to a 
State agency that is eligible for a payment under this part by 
application of this section.

                         [procedural safeguards

  [Sec. 615. (a) Any State educational agency, any local 
educational agency, and any intermediate educational unit which 
receives assistance under this part shall establish and 
maintain procedures in accordance with subsection (b) through 
subsection (e) of this section to assure that children with 
disabilities and their parents or guardians are guaranteed 
procedural safeguards with respect to the provision of free 
appropriate public education by such agencies and units.
  [(b)(1) The procedures required by this section shall 
include, but shall not be limited to--
          [(A) an opportunity for the parents or guardian of a 
        child with a disability to examine all relevant records 
        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;
          [(B) procedures to protect the rights of the child 
        whenever the parents or guardian of the child are not 
        known, unavailable, or the child is a ward of the 
        State, including the assignment of an individual (who 
        shall not be an employee of the State educational 
        agency, local educational agency, or intermediate 
        educational unit involved in the education or care of 
        the child) to act as a surrogate for the parents or 
        guardian;
          [(C) written prior notice to the parents or guardian 
        of the child whenever such agency or unit--
                  [(i) proposes to initiate or change, or
                  [(ii) 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;
          [(D) procedures designed to assure that the notice 
        required by clause (C) fully informs the parents or 
        guardian, in the parents' or guardian's native 
        language, unless it clearly is not feasible to do so, 
        of all procedures available pursuant to this section; 
        and
          [(E) an opportunity to present complaints with 
        respect to any matter relating to the identification, 
        evaluation, or educational placement of the child, or 
        the provision of a free appropriate public education to 
        such child.
  [(2) Whenever a complaint has been received under paragraph 
(1) of this subsection, the parents or guardian 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 or intermediate educational unit, as 
determined by State law or by the State educational agency. No 
hearing conducted pursuant to the requirements of this 
paragraph shall be conducted by an employee of such agency or 
unit involved in the education or care of the child.
  [(c) If the hearing required in paragraph (2) of subsection 
(b) of this section is conducted by a local educational agency 
or an intermediate educational unit, any party aggrieved by the 
findings and decision rendered in such a hearing may appeal to 
the State educational agency which shall conduct an impartial 
review of such hearing. The officer conducting such review 
shall make an independent decision upon completion of such 
review.
  [(d) Any party to any hearing conducted pursuant to 
subsections (b) and (c) 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 electronic verbatim 
        record of such hearing, and
          [(4) the right to written findings of fact and 
        decisions (which findings and decisions shall be made 
        available to the public consistent with the 
        requirements of section 617(c) and shall also be 
        transmitted to the advisory panel established pursuant 
        to section 613(a)(12)).
  [(e)(1) A decision made in a hearing conducted pursuant to 
paragraph (2) of subsection (b) shall be final, except that any 
party involved in such hearing may appeal such decision under 
the provisions of subsection (c) and paragraph (2) of this 
subsection. A decision made under subsection (c) shall be 
final, except that any party may bring an action under 
paragraph (2) of this subsection.
  [(2) Any party aggrieved by the findings and decision made 
under subsection (b) who does not have the right to an appeal 
under subsection (c), and any party aggrieved by the findings 
and decision under subsection (c), 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. 
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.
  [(3)(A) Except as provided in subparagraph (B), during the 
pendency of any proceedings conducted pursuant to this section, 
unless the State or local educational agency and the parents or 
guardian 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 or guardian, be placed in the public 
school program until all such proceedings have been completed.
          [(B)(i) Except as provided in clause (iii), if the 
        proceedings conducted pursuant to this section involve 
        a child with a disability who is determined to have 
        brought a weapon to school under the jurisdiction of 
        such agency, then the child may be placed in an interim 
        alternative educational setting, in accordance with 
        State law, for not more than 45 days.
          [(ii) The interim alternative educational setting 
        described in clause (i) shall be decided by the 
        individuals described in section 602(a)(20).
          [(iii) If a parent or guardian of a child described 
        in clause (i) requests a due process hearing pursuant 
        to paragraph (2) of subsection (b), then the child 
        shall remain in the alternative educational setting 
        described in such clause during the pendency of any 
        proceedings conducted pursuant to this section, unless 
        the parents and the local educational agency agree 
        otherwise.
          [(iv) For the purpose of this section, the term 
        ``weapon'' means a firearm as such term is defined in 
        section 921 of title 18, United States Code.
  [(4)(A) The district courts of the United States shall have 
jurisdiction of actions brought under this subsection without 
regard to the amount in controversy.
  [(B) In any action or proceeding brought under this 
subsection, the court, in its discretion, may award reasonable 
attorneys' fees as part of the costs to the parents or guardian 
of a child or youth with a disability who is the prevailing 
party.
  [(C) For the purpose of this subsection, fees awarded under 
this subsection 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) No award of attorneys' fees and related costs may be 
made in any action or proceeding under this subsection for 
services performed subsequent to the time of a written offer of 
settlement to a parent or guardian, if--
          [(i) the offer is made within the time prescribed by 
        Rule 68 of the Federal Rules of Civil Procedure or, in 
        the case of an administrative proceeding, at any time 
        more than ten days before the proceeding begins;
          [(ii) the offer is not accepted within ten days; and
          [(iii) the court or administrative officer finds that 
        the relief finally obtained by the parents or guardian 
        is not more favorable to the parents or guardian than 
        the offer of settlement.
  [(E) Notwithstanding the provisions of subparagraph (D), an 
award of attorneys' fees and related costs may be made to a 
parent or guardian who is the prevailing party and who was 
substantially justified in rejecting the settlement offer.
  [(F) Whenever the court finds that--
          [(i) the parent or guardian, 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, 
        experience, and reputation; or
          [(iii) the time spent and legal services furnished 
        were excessive considering the nature of the action or 
        proceeding,
the court shall reduce, accordingly, the amount of the 
attorneys' fees awarded under this subsection.
  [(G) 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 section 615 of this Act.
  [(f) Nothing in this title shall be construed to restrict or 
limit the rights, procedures, and remedies available under the 
Constitution, title V of the Rehabilitation Act of 1973, or 
other Federal statutes protecting the rights of children and 
youth with disabilities, except that before the filing of a 
civil action under such laws seeking relief that is also 
available under this part, the procedures under subsections 
(b)(2) and (c) shall be exhausted to the same extent as would 
be required had the action been brought under this part.

                    [withholding and judicial review

  [Sec. 616. (a) Whenever the Secretary, after reasonable 
notice and opportunity for hearing to the State educational 
agency involved (and to any local educational agency or 
intermediate educational unit affected by any failure described 
in clause (2)), finds--
          [(1) that there has been a failure to comply 
        substantially with any provision of section 612 or 
        section 613, or
          [(2) that in the administration of the State plan 
        there is a failure to comply with any provision of this 
        part or with any requirements set forth in the 
        application of a local educational agency or 
        intermediate educational unit approved by the State 
        educational agency pursuant to the State plan, the 
        Secretary--
                  [(A) shall, after notifying the State 
                educational agency, withhold any further 
                payments to the State under this part, and
                  [(B) may, after notifying the State 
                educational agency, withhold further payments 
                to the State under the Federal programs 
                specified in section 613(a)(2) within the 
                Secretary's jurisdiction, to the extent that 
                funds under such programs are available for the 
                provision of assistance for the education of 
                children with disabilities.
If the Secretary withholds further payments under clause (A) or 
clause (B) the Secretary may determine that such withholding 
will be limited to programs or projects under the State plan, 
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 intermediate 
educational units affected by the failure. Until the Secretary 
is satisfied that there is no longer any failure to comply with 
the provisions of this part, as specified in clause (1) or 
clause (2), no further payments shall be made to the State 
under this part or under the Federal programs specified in 
section 613(a)(2) within the Secretary's jurisdiction to the 
extent that funds under such programs are available for the 
provision of assistance for the education of children with 
disabilities, or payments by the State educational agency under 
this part shall be limited to local educational agencies and 
intermediate educational units whose actions did not cause or 
were not involved in the failure, as the case may be. Any State 
educational agency, local educational agency, or intermediate 
educational unit in receipt of a notice pursuant to the first 
sentence of this subsection 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 or unit.
  [(b)(1) If any State is dissatisfied with the Secretary's 
final action with respect to its State plan submitted under 
section 613, such State may, within sixty days after notice of 
such action, file with the United States court of appeals for 
the circuit in which such State is located a petition for 
review of that action. A copy of the petition shall be 
forthwith transmitted by the clerk of the court to the 
Secretary. The Secretary thereupon shall file in the court the 
record of the proceedings upon which the Secretary's action was 
based, as provided in section 2112 of title 28, United States 
Code.
  [(2) 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.
  [(3) 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.

                            [administration

  [Sec. 617. (a)(1) In carrying out the Secretary's duties 
under this part, the Secretary shall--
          [(A) cooperate with, and furnish all technical 
        assistance necessary, directly or by grant or contract, 
        to the States in matters relating to the education of 
        children with disabilities and the execution of the 
        provisions of this part;
          [(B) provide such short-term training programs and 
        institutes as are necessary;
          [(C) disseminate information, and otherwise promote 
        the education of all handicapped children within the 
        States; and
          [(D) assure that each State shall, within one year 
        after the date of the enactment of the Education for 
        All Handicapped Children Act of 1975 and every year 
        thereafter, provide certification of the actual number 
        of children with disabilities receiving special 
        education and related services in such State.
  [(2) As soon as practicable after the date of the enactment 
of the Education for All Handicapped Children Act of 1975, the 
Secretary shall, by regulation, prescribe a uniform financial 
report to be utilized by State educational agencies in 
submitting plans under this part in order to assure equity 
among the States.
  [(b) In carrying out the provisions of this part, the 
Secretary shall issue, not later than January 1, 1977, amend, 
and revoke such rules and regulations as may be necessary. No 
other less formal method of implementing such provisions is 
authorized.
  [(c) The Secretary shall take appropriate action, in 
accordance with the provisions of section 438 of the General 
Education Provisions Act, to assure the protection of the 
confidentiality of any personally identifiable data, 
information, and records collected or maintained by the 
Secretary and by State and local educational agencies pursuant 
to the provisions of this part.
  [(d) The Secretary is authorized to hire qualified personnel 
necessary to conduct data collection and evaluation activities 
required by subsections (b), (c) and (d) of section 618 and to 
carry out the Secretary's duties under subsection (a)(1) of 
this subsection without regard to the provisions of title 5, 
United States Code, relating to appointments in the competitive 
service and without regard to chapter 51 and subchapter III of 
chapter 53 of such title relating to classification and general 
schedule pay rates except that no more than twenty such 
personnel shall be employed at any time.

                  [evaluation and program information

  [Sec. 618. (a) The Secretary shall, directly or by grant, 
contract, or cooperative agreement, collect data and conduct 
studies, investigations, analyses, and evaluations--
          [(1) to assess progress in the implementation of this 
        Act;
          [(2) to assess the impact and effectiveness of State 
        and local efforts, and efforts by the Secretary of the 
        Interior, to provide--
                  [(A) free appropriate public education to 
                children and youth with disabilities; and
                  [(B) early intervention services to infants 
                and toddlers with disabilities; and
          [(3) to provide--
                  [(A) Congress with information relevant to 
                policymaking; and
                  [(B) State, local, and Federal agencies, 
                including the Department of the Interior, with 
                information relevant to program management, 
                administration, delivery, and effectiveness 
                with respect to such education and early 
                intervention services.
  [(b)(1) In carrying out subsection (a), the Secretary, on at 
least an annual basis (except as provided in subparagraph (E)), 
shall obtain data concerning programs and projects assisted 
under this Act and under other Federal laws relating to 
infants, toddlers, children, and youth with disabilities, and 
such additional information, from State and local educational 
agencies, the Secretary of the Interior, and other appropriate 
sources, including designated lead agencies under part H 
(except that during fiscal year 1992 such entities may not 
under this subsection be required to provide data regarding 
traumatic brain injury or autism), including--
          [(A) the number of infants, toddlers, children, and 
        youth with disabilities in each State receiving a free 
        appropriate public education or early intervention 
        services--
                  [(i) in age groups 0-2 and 3-5, and
                  [(ii) in age groups 6-11, 12-17, and 18-21, 
                by disability category;
          [(B) the number of children and youth with 
        disabilities in each State, by disability category, 
        who--
                          [(i) are participating in regular 
                        educational programs (consistent with 
                        the requirements of section 612(5)(B) 
                        and 614(a)(1)(C)(iv));
                          [(ii) are in separate classes, 
                        separate schools or facilities, or 
                        public or private residential 
                        facilities; or
                          [(iii) have been otherwise removed 
                        from the regular education environment;
          [(C) the number of children and youth with 
        disabilities exiting the educational system each year 
        through program completion or otherwise, by disability 
        category, for each year of age from age 14 through 21;
          [(D) the number and type of personnel that are 
        employed in the provision of--
                  [(i) special education and related services 
                to children and youth with disabilities, by 
                disability category served; and
                  [(ii) early intervention services to infants 
                and toddlers with disabilities; and
          [(E) at least every three years, using the data 
        collection method the Secretary finds most appropriate, 
        a description of the services expected to be needed, by 
        disability category, for youth with disabilities in age 
        groups 12-17 and 18-21 who have left the educational 
        system.
  [(2) Beginning with fiscal year 1993, the Secretary shall 
obtain and report data from the States under section 
613(a)(3)(A), including data addressing current and projected 
special education and related services needs, and data on the 
number of personnel who are employed on an emergency, 
provisional, or other basis, who do not hold appropriate State 
certification or licensure, and other data for the purpose of 
meeting the requirements of this subsection pertaining to 
special education and related services personnel.
  [(3) The Secretary shall provide, directly or by grant, 
contract, or cooperative agreement, technical assistance to 
State agencies providing the data described in paragraphs (1) 
and (2) to achieve accurate and comparable information.
  [(c)(1) The Secretary shall make grants to, or enter into 
contracts or cooperative agreements with, State or local 
educational agencies, institutions of higher education, public 
agencies, and private nonprofit organizations, and, when 
necessary because of the unique nature of the study, private-
for-profit organizations, for the purpose of conducting 
studies, analyses, syntheses, and investigations for improving 
program management, administration, delivery, and effectiveness 
necessary to provide full educational opportunities and early 
interventions for all children with disabilities from birth 
through age 21. Such studies and investigations shall gather 
information necessary for program and system improvements 
including--
          [(A) developing effective, appropriate criteria and 
        procedures to identify, evaluate, and serve infants, 
        toddlers, children, and youth with disabilities from 
        minority backgrounds for purposes of program 
        eligibility, program planning, delivery of services, 
        program placement, and parental involvement;
          [(B) planning and developing effective early 
        intervention services, special education, and related 
        services to meet the complex and changing needs of 
        infants, toddlers, children, and youth with 
        disabilities;
          [(C) developing and implementing a comprehensive 
        system of personnel development needed to provide 
        qualified personnel in sufficient number to deliver 
        special education, related services, and early 
        intervention services;
          [(D) developing the capacity to implement practices 
        having the potential to integrate children with 
        disabilities, to the maximum extent appropriate, with 
        children who are not disabled;
          [(E) effectively allocating and using human and 
        fiscal resources for providing early intervention, 
        special education, and related services;
          [(F) strengthening programs and services to improve 
        the progress of children and youth with disabilities 
        while in special education, and to effect a successful 
        transition when such children and youth leave special 
        education;
          [(G) achieving interagency coordination to maximize 
        resource utilization and continuity in services 
        provided to infants, toddlers, children, and youth with 
        disabilities;
          [(H) strengthening parent-school communication and 
        coordination to improve the effectiveness of planning 
        and delivery of interventions and instruction, thereby 
        enhancing development and educational progress; and
          [(I) the identification of environmental, 
        organizational, resource, and other conditions 
        necessary for effective professional practice.
  [(2)(A) The studies and investigations authorized under this 
subsection may be conducted through surveys, interviews, case 
studies, program implementation studies, secondary data 
analyses and syntheses, and other appropriate methodologies.
  [(B) The studies and investigations conducted under this 
subsection shall address the information needs of State and 
local educational agencies for improving program management, 
administration, delivery, and effectiveness.
  [(3) The Secretary shall develop and implement a process for 
the on-going identification of national program information 
needed for improving the management, administration, delivery, 
and effectiveness of programs and services provided under this 
Act. The process shall identify implementation issues, desired 
improvements, and information needed by State and local 
agencies to achieve such improvements, and shall be conducted 
in cooperation with State educational agencies that can ensure 
broad-based statewide input from each cooperating State. The 
Secretary shall publish for public comment in the Federal 
Register every 3 years a program information plan describing 
such information needs. Such program information plan shall be 
used to determine the priorities for, and activities carried 
out under, this subsection to produce, organize, and increase 
utilization of program information. Such program information 
plan shall be included in the annual report submitted under 
section 618 every 3 years.
  [(4) In providing funds under this subsection, the Secretary 
shall require recipients to prepare their procedures, findings, 
and other relevant information in a form that will maximize 
their dissemination and use, especially through dissemination 
networks and mechanisms authorized by this Act, and in a form 
for inclusion in the annual report to Congress authorized under 
subsection (g).
  [(d)(1) The Secretary shall enter into cooperative agreements 
with State educational agencies and other State agencies to 
carry out studies to assess the impact and effectiveness of 
programs, policies, and procedures assisted under this Act.
  [(2) The agreements referred to in paragraph (1) shall--
          [(A) provide for the payment of not more than 60 
        percent of the total cost of studies conducted by a 
        participating State agency to assess the impact and 
        effectiveness of this Act; and
          [(B) be developed in consultation with the State 
        Advisory Panel established under section 613(a)(12), 
        local educational agencies, and others involved in, or 
        concerned with, the education of children and youth 
        with disabilities and the provision of early 
        intervention services to infants and toddlers with 
        disabilities.
  [(3) The Secretary shall provide technical assistance to 
participating State agencies in the implementation of the study 
design, analysis, and reporting procedures.
  [(e)(1) The Secretary shall by grant, contract, or 
cooperative agreement, provide for special studies to assess 
progress in the implementation of this Act, and to assess the 
impact and effectiveness of State and local efforts and efforts 
by the Secretary of the Interior to provide free appropriate 
public education to children and youth with disabilities, and 
early intervention services to infants and toddlers with 
disabilities. Reports from such studies shall include 
recommendations for improving programs and services to such 
individuals. The Secretary shall, beginning in fiscal year 1993 
and for every third year thereafter, submit to the appropriate 
committees of each House of the Congress and publish in the 
Federal Register proposed priorities for review and comment.
  [(2) In selecting priorities for fiscal years 1991 through 
1994, the Secretary may give first consideration to--
          [(A) completing a longitudinal study of a sample of 
        students with disabilities, examining--
                  [(i) the full range of disabling conditions;
                  [(ii) the educational progress of students 
                with disabilities while in special education; 
                and
                  [(iii) the occupational, educational, and 
                independent living status of students with 
                disabilities after graduating from secondary 
                school or otherwise leaving special education.
          [(B) conducting pursuant to this subsection a 
        nationally representative study focusing on the types, 
        number, and intensity of related services provided to 
        children with disabilities by disability category.
          [(C) conducting pursuant to this subsection a study 
        that examines the degree of disparity among States with 
        regard to the placement in various educational settings 
        of children and youth with similar disabilities, 
        especially those with mental retardation, and, to the 
        extent that such disparity exists, the factors that 
        lead such children and youth to be educated in 
        significantly different educational settings.
          [(D) conducting pursuant to this subsection a study 
        that examines the factors that have contributed to the 
        decline in the number of children classified as 
        mentally retarded since the implementation of this Act, 
        and examines the current disparity among States in the 
        percentage of children so classified.
          [(E) conducting pursuant to this subsection a study 
        that examines the extent to which out-of-community 
        residential programs are used for children and youth 
        who are seriously emotionally disturbed, the factors 
        that influence the selection of such placements, the 
        degree to which such individuals transition back to 
        education programs in their communities, and the 
        factors that facilitate or impede such transition.
          [(F) conducting pursuant to this subsection a study 
        that examines (i) the factors that influence the 
        referral and placement decisions and types of 
        placements, by disability category and English language 
        proficiency, of minority children relative to other 
        children, (ii) the extent to which these children are 
        placed in regular education environments, (iii) the 
        extent to which the parents of these children are 
        involved in placement decisions and in the development 
        and implementation of the individualized education 
        program and the results of such participation, and (iv) 
        the type of support provided to parents of these 
        children that enable these parents to understand and 
        participate in the educational process.
  [(f) The Secretary shall make grants to, or enter into 
contracts or cooperative agreements with, State or local 
educational agencies, institutions of higher education, other 
public agencies, and private nonprofit organizations to support 
activities that organize, synthesize, interpret, and integrate 
information obtained under subsections (c) and (e) with 
relevant knowledge obtained from other sources. Such activities 
shall include the selection and design of content, formats, and 
means for communicating such information effectively to 
specific or general audiences, in order to promote the use of 
such information in improving program administration and 
management, and service delivery and effectiveness.
  [(g)(1)(A) The Secretary is authorized to conduct activities, 
directly or by grant, contract, or cooperative agreement, to 
prepare an annual report on the progress being made toward the 
provision of--
          [(i) a free appropriate public education to all 
        children and youth with disabilities; and
          [(ii) early intervention services for infants and 
        toddlers with disabilities.
  [(B) Not later than 120 days after the close of each fiscal 
year, the Secretary shall transmit a copy of the report 
authorized under subparagraph (A) to the appropriate committees 
of each House of Congress. The annual report shall be published 
and disseminated in sufficient quantities to the education and 
disability communities and to other interested parties.
  [(2) The Secretary shall include in each annual report under 
paragraph (1)--
          [(A) a compilation and analysis of data gathered 
        under subsection (b) and under part H; and
          [(B) a description of findings and determinations 
        resulting from monitoring reviews of State 
        implementation of this part.
  [(3) In the annual report under paragraph (1) for fiscal year 
1991 (which is published in 1992) and for every third year 
thereafter, the Secretary shall include in the annual report--
          [(A) an index of all current projects funded under 
        parts C through G; and
          [(B) data reported under sections 622 and 634.
  [(4) The Secretary shall include in each annual report under 
paragraph (1) the results of research and related activities 
conducted under part E that the Secretary determines are 
relevant to the effective implementation of this Act.
  [(5) The Secretary shall, in consultation with the National 
Council on Disability and the Bureau of Indian Affairs Advisory 
Committee for Exceptional Children, include a description of 
the status of early intervention services for infants and 
toddlers with disabilities from birth through age 2, and 
special education and related services to children with 
disabilities from 3 through 5 years of age (including those 
receiving services through Head Start, developmental 
disabilities programs, crippled children's services, mental 
health/mental retardation agencies, and State child-development 
centers and private agencies under contract with local 
schools).
  [(h) There are authorized to be appropriated $12,000,000 for 
fiscal year 1991 and such sums as may be necessary for fiscal 
years 1992 through 1994 to carry out the purposes of this 
section and not more than 30 percent may be used to carry out 
the purposes of subsection (e) of this section.

                           [preschool grants

  [Sec. 619. (a)(1) For fiscal years 1987 through 1989 (or 
fiscal year 1990 if the Secretary makes a grant under this 
paragraph for such fiscal year) the Secretary shall make a 
grant to any State which--
          [(A) has met the eligibility requirements of section 
        612,
          [(B) has a State plan approved under section 613, and
          [(C) provides special education and related services 
        to children with disabilities aged three to five, 
        inclusive.
  [(2)(A) For fiscal year 1987 the amount of a grant to a State 
under paragraph (1) may not exceed--
          [(i) $300 per child with a disability aged three to 
        five, inclusive, who received special education and 
        related services in such State as determined under 
        section 611(a)(3), or
          [(ii) if the amount appropriated under subsection (e) 
        exceeds the product of $300 and the total number of 
        children with disabilities aged three to five, 
        inclusive, who received special education and related 
        services as determined under section 611(a)(3)--
                  [(I) $300 per child with a disability aged 
                three to five, inclusive, who received special 
                education and related services in such State as 
                determined under section 611(a)(3), plus
                  [(II) an amount equal to the portion of the 
                appropriation available after allocating funds 
                to all States under subclause (I) (the excess 
                appropriation) divided by the estimated 
                increase, from the preceding fiscal year, in 
                the number of children with disabilities aged 
                three to five, inclusive, who will be receiving 
                special education and related services in all 
                States multiplied by the estimated increase in 
                the number of such children in such State.
  [(B) For fiscal year 1988, funds shall be distributed in 
accordance with clause (i) or (ii) of paragraph (2)(A), except 
that the amount specified therein shall be $400 instead of 
$300.
  [(C) For fiscal year 1989, funds shall be distributed in 
accordance with clause (i) or (ii) of paragraph (2)(A), except 
that the amount specified therein shall be $500 instead of 
$300.
  [(D) If the Secretary makes a grant under paragraph (1) for 
fiscal year 1990, the amount of a grant to a State under such 
paragraph may not exceed $1,000 per child with a disability 
aged three to five, inclusive, who received special education 
and related services in such State as determined under section 
611(a)(3).
  [(E) If the actual number of additional children served in a 
fiscal year differs from the estimate made under subparagraph 
(A)(ii)(II), the Secretary shall adjust (upwards or downwards) 
a State's allotment in the subsequent fiscal year.
  [(F)(i) The amount of a grant under subparagraph (A), (B), or 
(C) to any State for a fiscal year may not exceed $3,800 per 
estimated child with a disability aged three to five, 
inclusive, who will be receiving or child with a disability, 
age three to five, inclusive, who is receiving special 
education and related services in such State.
  [(ii) If the amount appropriated under subsection (e) for any 
fiscal year exceeds the amount of grants which may be made to 
the States for such fiscal year, the excess amount appropriated 
shall remain available for obligation under this section for 2 
succeeding fiscal years.
  [(3) To receive a grant under paragraph (1) a State shall 
make an application to the Secretary at such time, in such 
manner, and containing or accompanied by such information as 
the Secretary may reasonably require.
  [(b)(1) For fiscal year 1990 (or fiscal year 1991 if required 
by paragraph (2)) and fiscal years thereafter the Secretary 
shall make a grant to any State which--
          [(A) has met the eligibility requirements of section 
        612, and
          [(B) has a State plan approved under section 613 
        which includes policies and procedures that assure the 
        availability under the State law and practice of such 
        State of a free appropriate public education for all 
        children with disabilities aged three to five, 
        inclusive, and for any two-year-old children provided 
        services by the State under subsection (c)(2)(B)(iii) 
        or by a local educational agency or intermediate 
        educational unit under subsection (f)(2).
  [(2) The Secretary may make a grant under paragraph (1) only 
for fiscal year 1990 and fiscal years thereafter, except that 
if--
          [(A) the aggregate amount that was appropriated under 
        subsection (e) for fiscal years 1987, 1988, and 1989 
        was less than $656,000,000, or
          [(B) the amount appropriated for fiscal year 1990 
        under subsection (e) is less than $306,000,000,
the Secretary may not make a grant under paragraph (1) until 
fiscal year 1991 and shall make a grant under subsection (a)(1) 
for fiscal year 1990.
  [(3) The amount of any grant to any State under paragraph (1) 
for any fiscal year may not exceed $1,500 for each child with a 
disability in such State aged three to five, inclusive.
  [(4) To receive a grant under paragraph (1) a State shall 
make an application to the Secretary at such time, in such 
manner, and containing or accompanied by such information as 
the Secretary may reasonably require.
  [(c)(1) For fiscal year 1987, a State which receives a grant 
under subsection (a)(1) shall--
          [(A) distribute at least 70 percent of such grant to 
        local educational agencies and intermediate educational 
        units in such State in accordance with paragraph (3), 
        except that in applying such section only children with 
        disabilities aged three to five, inclusive, shall be 
        considered,
          [(B) use not more than 25 percent of such grant for 
        the planning and development of a comprehensive 
        delivery system for which a grant could have been made 
        under section 623(b) in effect through fiscal year 1987 
        and for direct and support services for children with 
        disabilities, and
          [(C) use not more than 5 percent of such grant for 
        administrative expenses related to the grant.
  [(2) For fiscal years beginning after fiscal year 1987, a 
State which receives a grant under subsection (a)(1) or (b)(1) 
shall--
          [(A) distribute at least 75 percent of such grant to 
        local educational agencies and intermediate educational 
        units in such State in accordance with paragraph (3), 
        except that in applying such section only children with 
        disabilities aged three to five, inclusive, shall be 
        considered,
          [(B) use not more than 20 percent of such grant--
                  [(i) for planning and development of a 
                comprehensive delivery system,
                  [(ii) for direct and support services for 
                children with disabilities, aged 3 to 5, 
                inclusive, and
                  [(iii) at the State's discretion, to provide 
                a free appropriate public education, in 
                accordance with this Act, to 2-year-old 
                children with disabilities who will reach age 3 
                during the school year, whether or not such 
                children are receiving, or have received, 
                services under part H, and
          [(C) use not more than 5 percent of such grant for 
        administrative expenses related to the grant.
  [(3) From the amount of funds available to local educational 
agencies and intermediate educational units in any State under 
this section, each local educational agency or intermediate 
educational unit shall be entitled to--
          [(A) an amount which bears the same ratio to the 
        amount available under subsection (a)(2)(A)(i) or 
        subsection (a)(2)(A)(ii)(I), as the case may be, as the 
        number of children with disabilities aged three to 
        five, inclusive, who received special education and 
        related services as determined under section 611(a)(3) 
        in such local educational agency or intermediate 
        educational unit bears to the aggregate number of 
        children with disabilities aged three to five, 
        inclusive, who received special education and related 
        services in all local educational agencies and 
        intermediate educational units in the State entitled to 
        funds under this section, and
          [(B) to the extent funds are available under 
        subsection (a)(2)(A)(ii)(II), an amount which bears the 
        same ratio to the amount of such funds as the estimated 
        number of additional children with disabilities aged 
        three to five, inclusive, who will be receiving special 
        education and related services in such local 
        educational agency or intermediate educational unit 
        bears to the aggregate number of such children in all 
        local educational agencies and intermediate educational 
        units in the State entitled to funds under this 
        section.
  [(d) If the sums appropriated under subsection (e) for any 
fiscal year for making payments to States under subsection 
(a)(1) or (b)(1) are not sufficient to pay in full the maximum 
amounts which all States may receive under such subsection for 
such fiscal year, the maximum amounts which all States may 
receive under such subsection for such fiscal year shall be 
ratably reduced by first ratably reducing amounts computed 
under the excess appropriation provision of subsection 
(a)(2)(A)(ii)(II). If additional funds become available for 
making such payments for any fiscal year during which the 
preceding sentence is applicable, the reduced maximum amounts 
shall be increased on the same basis as they were reduced.
  [(e) For grants under subsections (a)(1) and (b)(1) there are 
authorized to be appropriated such sums as may be necessary.
  [(f) Each local educational agency or intermediate 
educational unit receiving funds under this section--
          [(1) shall use such funds to provide special 
        education and related services to children with 
        disabilities aged 3 to 5, inclusive, and
          [(2) may, if consistent with State policy, use such 
        funds to provide a free appropriate public education, 
        in accordance with this part, to 2-year-old children 
        with disabilities who will reach age 3 during the 
        school year, whether or not such children are 
        receiving, or have received, services under part H.
  [(g) Part H of this Act does not apply to any child with 
disabilities receiving a free appropriate public education, in 
accordance with this part, with funds received under this 
section.

                               [payments

  [Sec. 620. (a) The Secretary shall make payments to each 
State in amounts which the State educational agency of such 
State is eligible to receive under this part. Any State 
educational agency receiving payments under this subsection 
shall distribute payments to the local educational agencies and 
intermediate educational units of such State in amounts which 
such agencies and units are eligible to receive under this part 
after the State educational agency has approved applications of 
such agencies or units for payments in accordance with section 
614(b).
  [(b) Payments under this part may be made in advance or by 
way of reimbursement and in such installments as the Secretary 
may determine necessary.

[Part C--Centers and Services To Meet Special Needs of Individuals With 
                              Disabilities

                 [regional resource and federal centers

  [Sec. 621. (a) The Secretary may make grants to, or enter 
into contracts or cooperative agreements with, institutions of 
higher education, public agencies, private nonprofit 
organizations, State educational agencies, or combinations of 
such agencies or institutions (which combinations may include 
one or more local educational agencies) within particular 
regions of the United States, to pay all or part of the cost of 
the establishment and operation of regional resource centers 
that focus on special education and related services and early 
intervention services. Each regional resource center shall 
provide consultation, technical assistance, and training, as 
requested, to State educational agencies and through such State 
educational agencies to local educational agencies and to other 
appropriate public agencies providing special education and 
related services and early intervention services. The services 
provided by a regional resource center shall be consistent with 
the priority needs identified by the States served by the 
center. Each regional resource center established or operated 
under this section shall--
          [(1) assist in identifying and solving persistent 
        problems in providing quality special education and 
        related services for children and youth with 
        disabilities and early intervention services to infants 
        and toddlers with disabilities and their families,
          [(2) assist in developing, identifying, and 
        replicating successful programs and practices which 
        will improve special education and related services to 
        children and youth with disabilities and their families 
        and early intervention services to infants and toddlers 
        with disabilities and their families,
          [(3) gather and disseminate information to all State 
        educational agencies within the region and coordinate 
        activities with other centers assisted under this 
        subsection and other relevant programs and projects 
        conducted under parts C through G and by the Department 
        of Education,
          [(4) assist in the improvement of information 
        dissemination to and training activities for 
        professionals and parents of infants, toddlers, 
        children, and youth with disabilities, and
          [(5) provide information to and training for 
        agencies, institutions, and organizations, regarding 
        techniques and approaches for submitting applications 
        for grants, contracts, and cooperative agreements under 
        this part and parts D through G.
  [(b) In determining whether to approve an application for a 
project under subsection (a), the Secretary shall utilize 
criteria for setting criteria that are consistent with the 
needs identified by States within the region served by such 
center, consistent with requirements established by the 
Secretary under subsection (f), and, to the extent appropriate, 
consistent with requirements under section 610, and shall 
consider the need for such a center in the region to be served 
by the applicant and the capability of the applicant to fulfill 
the responsibilities under subsection (a).
  [(c) Each regional resource center shall report a summary of 
materials produced or developed and the summaries reported 
shall be included in the annual report to Congress required 
under section 618.
  [(d) The Secretary may establish one coordinating technical 
assistance center focusing on national priorities established 
by the Secretary to assist the regional resource centers in the 
delivery of technical assistance, consistent with such national 
priorities. Such coordinating technical assistance center is 
authorized to--
          [(1) provide information to, and training for, 
        agencies, institutions, and organizations, regarding 
        techniques and approaches for submitting applications 
        for grants, contracts, and cooperative agreements under 
        this part and parts D through G, and shall make such 
        information available to the regional resource centers 
        on request;
          [(2) give priority to providing technical assistance 
        concerning the education of children with disabilities 
        from minority backgrounds;
          [(3) exchange information with, and, where 
        appropriate, cooperate with, other centers addressing 
        the needs of children with disabilities from minority 
        backgrounds; and
          [(4) provide assistance to State educational 
        agencies, through the regional resource centers, for 
        the training of hearing officers.
  [(e) Before using funds made available in any fiscal year to 
carry out this section for purposes of subsection (d), not less 
than the amount made available in the previous fiscal year for 
regional resource centers under subsection (a) shall be made 
available for such centers and in no case shall more than 
$500,000 be made available for the center under subsection (d).
  [(f)(1) The Secretary shall develop guidelines and criteria 
for the operation of Regional and Federal Resource Centers. In 
developing such criteria and guidelines, the Secretary shall 
establish a panel representing the Office of Special Education 
Programs staff, State special education directors, 
representatives of disability advocates, and, when appropriate, 
consult with the regional resource center directors.
  [(2) Such guidelines and criteria shall include--
          [(A) a description of how the Federal and Regional 
        Resource Centers Program will be administered by the 
        Secretary;
          [(B) a description of the geographic region each 
        Center is expected to serve;
          [(C) a description of the role of a Center in terms 
        of expected leadership and dissemination efforts;
          [(D) a description of expected relationships with 
        State agencies, research and demonstration centers, and 
        with other entities deemed necessary;
          [(E) a description of how a Center will be evaluated; 
        and
          [(F) other guidelines and criteria deemed necessary.
  [(3) The Secretary shall publish in the Federal Register by 
July 1, 1991, for review and comment, proposed and (then 
following such review and comment) final guidelines developed 
by the panel.

              [services for deaf-blind children and youth

  [Sec. 622. (a)(1) The Secretary is authorized to make grants 
to, or to enter into cooperative agreements or contracts with, 
public or nonprofit private agencies, institutions, or 
organizations to assist State educational agencies, local 
educational agencies, and designated lead agencies under part H 
to--
          [(A) assure deaf-blind infants, toddlers, children 
        and youth provision of special education, early 
        intervention, and related services as well as 
        vocational and transitional services; and
          [(B) make available to deaf-blind youth (who are in 
        the process of transitioning into adult services) 
        programs, services, and supports to facilitate such 
        transition, including assistance related to independent 
        living and competitive employment.
  [(2) For purposes of this section, the term ``deaf-blind'', 
with respect to children and youth, means having auditory and 
visual impairments, the combination of which creates such 
severe communication and other developmental and learning needs 
that they cannot be appropriately educated in special education 
programs solely for children and youth with hearing 
impairments, visual impairments, or severe disabilities, 
without supplementary assistance to address their educational 
needs due to these dual, concurrent disabilities.
    [(3)(A) A grant, cooperative agreement, or contract may be 
made under paragraph (1)(A) only for programs providing--
          [(i) technical assistance to agencies, institutions, 
        or organizations providing educational or early 
        intervention services to deaf-blind infants, toddlers, 
        children, or youth;
          [(ii) preservice or inservice training to 
        paraprofessionals, professionals, or related services 
        personnel preparing to serve, or serving, deaf-blind 
        infants, toddlers, children, or youth;
          [(iii) replication of successful innovative 
        approaches to providing educational, early 
        intervention, or related services to deaf-blind 
        infants, toddlers, children, and youth;
          [(iv) pilot projects that are designed to--
                  [(I) expand local educational agency 
                capabilities by providing services to deaf-
                blind children and youth that supplement 
                services already provided to children and youth 
                through State and local resources; and
                  [(II) encourage eventual assumption of 
                funding responsibility by State and local 
                authorities;
          [(v) the development, improvement, or demonstration 
        of new or existing methods, approaches, or techniques 
        that contribute to the adjustment and education of 
        deaf-blind infants, toddlers, children, and youth; or
          [(vi) facilitation of parental involvement in the 
        education of their deaf-blind infants, toddlers, 
        children, and youth.
    [(B) The programs described in subparagraph (A) may 
include--
          [(i) the diagnosis and educational evaluation of 
        infants, toddlers, children, and youth who are likely 
        to be diagnosed as deaf-blind;
          [(ii) programs of adjustment, education, and 
        orientation for deaf-blind infants, toddlers, children, 
        and youth; and
          [(iii) consultative, counseling, and training 
        services for the families of deaf-blind infants, 
        toddlers, children, and youth.
  [(4) A grant, cooperative agreement, or contract pursuant to 
paragraph (1)(B) may be made only for programs providing (A) 
technical assistance to agencies, institutions, and 
organizations that are preparing deaf-blind adolescents for 
adult placements, or that are preparing to receive deaf-blind 
young adults into adult living and work environments, or that 
serve, or propose to serve, deaf-blind individuals; (B) 
training or inservice training to paraprofessionals or 
professionals serving, or preparing to serve, such individuals; 
and (C) assistance in the development or replication of 
successful innovative approaches to providing rehabilitative, 
supervised, semisupervised, or independent living programs.
  [(5) In carrying out this subsection, the Secretary is 
authorized to enter into a number of grants or cooperative 
agreements to establish and support single and multi-State 
centers for the provision of technical assistance and pilot 
supplementary services, for the purposes of program development 
and expansion, for children and youth with deaf-blindness and 
their families.
  [(b) The Secretary is also authorized to enter into a limited 
number of cooperative agreements or contracts to establish and 
support regional programs for the provision of technical 
assistance in the education of deaf-blind children and youth.
  [(c)(1) Programs supported under this section shall report 
annually to the Secretary on (A) the numbers of deaf-blind 
children and youth served by age, severity, sex, and nature of 
deaf-blindness; (B) the number of paraprofessionals, 
professionals, and family members directly served by each 
activity; (C) the types of services provided and the setting in 
which the services are provided; and (D) student outcomes, 
where appropriate.
  [(2) The Secretary shall examine the number of deaf-blind 
children and youth (A) reported under subparagraph (c)(1)(A) 
and by the States; (B) served by the programs under part B of 
this Act; and (C) the Deaf-Blind Registry of each State. The 
Secretary shall revise the count of deaf-blind children and 
youth to reflect the most accurate count.
  [(3) The Secretary shall summarize these data for submission 
in the annual report required under section 618.
  [(d) The Secretary shall make a grant, or enter into a 
contract or cooperative agreement, for a national clearinghouse 
for children and youth with deaf-blindness--
          [(1) to identify, coordinate, and disseminate 
        information on deaf-blindness, emphasizing information 
        concerning effective practices in working with deaf-
        blind infants, toddlers, children, and youth;
          [(2) to interact with educators, professional groups, 
        and parents to identify areas for programming, 
        materials development, training, and expansion of 
        specific services;
          [(3) to maintain a computerized data base on local, 
        regional, and national resources; and
          [(4) to respond to information requests from 
        professionals, parents, and members of the community.
  [(e) In carrying out this section, the Secretary shall take 
into consideration the availability and quality of existing 
services for deaf-blind infants, toddlers, children, and youth 
in the country, and, to the extent practicable, ensure that all 
parts of the country have an opportunity to receive assistance 
under this section.
  [(f) The Secretary may make grants to, or enter into 
contracts or cooperative agreements with organizations or 
public or nonprofit private agencies, as determined by the 
Secretary to be appropriate, to address the needs of children 
and youth with deaf-blindness, for--
          [(1) research to identify and meet the full range of 
        special needs of such children and youth; and
          [(2) the development and demonstration of new, or 
        improvements in existing methods, approaches, or 
        techniques that would contribute to the adjustment and 
        education of children and youth with deaf-blindness.

            [early education for children with disabilities

  [Sec. 623. (a)(1) The Secretary may arrange by contract, 
grant, or cooperative agreement with appropriate public 
agencies and private nonprofit organizations, for the 
development and operation of experimental, demonstration, and 
outreach preschool and early intervention programs for children 
with disabilities, including individuals who are at risk of 
having substantial developmental delays if early intervention 
services are not provided, which the Secretary determines show 
promise of promoting a comprehensive and strengthened approach 
to the special needs of these children. Such programs shall 
include activities and services designed to--
          [(A) facilitate the intellectual, emotional, 
        physical, mental, social, speech or other communication 
        mode, language development, and self-help skills of 
        such children,
          [(B) provide family education and include a parent or 
        their representative of such child, as well as 
        encourage the participation of the parents of such 
        children in the development and operation of any such 
        program,
          [(C) acquaint the community to be served by any such 
        program with the special needs and potentialities of 
        such children,
          [(D) offer training about exemplary models and 
        practices, including interdisciplinary models and 
        practices, to State and local personnel who provide 
        services to children with disabilities from birth 
        through age 8 and to the parents of such children,
          [(E) support the adoption of exemplary models and 
        practices in States and local communities, including 
        the involvement of adult role models with disabilities 
        at all levels of the program,
          [(F) facilitate and improve the early identification 
        of infants and toddlers with disabilities or those 
        infants and toddlers at risk of having developmental 
        disabilities,
          [(G) facilitate the transition of infants with 
        disabilities or infants at risk of having developmental 
        delays, from medical care to early intervention 
        services, and the transition from early intervention 
        services to preschool special education or regular 
        education services (especially where the lead agency 
        for early intervention programs under part H is not the 
        State educational agency),
          [(H) promote the use of assistive technology devices 
        and assistive technology services, where appropriate, 
        to enhance the development of infants and toddlers with 
        disabilities,
          [(I) facilitate and improve outreach to low-income, 
        minority, rural, and other underserved populations 
        eligible for assistance under parts B and H,
          [(J) support statewide projects in conjunction with a 
        State's application under part H and a State's plan 
        under part B, to change the delivery of early 
        intervention services to infants and toddlers with 
        disabilities, and to change the delivery of special 
        education and related services to preschool children 
        with disabilities, from segregated to integrated 
        environments, and
          [(K) increase the understanding of, and address, the 
        early intervention and preschool needs of children 
        exposed prenatally to maternal substance abuse.
  [(2) Programs authorized by paragraph (1) shall be 
coordinated with similar programs in the schools operated or 
supported by State or local educational agencies of the 
community to be served and with similar programs operated by 
other public agencies in such community.
  [(3) As much as is feasible, programs assisted under 
paragraph (1) shall be geographically dispersed throughout the 
Nation in urban as well as rural areas.
  [(4)(A) Except as provided in subparagraph (B), no 
arrangement under paragraph (1) shall provide for the payment 
of more than 90 percent of the total annual costs of 
development, operation, and evaluation of any program. Non-
Federal contributions may be in cash or in kind, fairly 
evaluated, including plant, equipment, and services.
  [(B) The Secretary may waive the requirement of subparagraph 
(A) in the case of an arrangement entered into under paragraph 
(1) with governing bodies of Indian tribes located on Federal 
or State reservations and with consortia of such bodies.
  [(b) The Secretary shall fund up to 5 grants to States for 3 
years for the purpose of establishing an inter-agency, multi-
disciplinary, and coordinated statewide system for the 
identification, tracking, and referral to appropriate services 
for all categories of children who are biologically and/or 
environmentally at-risk of having developmental delays. To the 
extent feasible, such grants shall be geographically dispersed 
throughout the Nation in urban and rural areas. Each grantee 
must--
          [(1) create a data system within the first year to 
        document the numbers and types of at-risk children in 
        the State and that develops linkages with all 
        appropriate existing child data and tracking systems 
        that assist in providing information;
          [(2) coordinate activities with the child find 
        component required under parts B and H of this Act;
          [(3) demonstrate the involvement of the lead agency 
        and the State interagency coordinating council under 
        part H as well as the State educational agency under 
        part B;
          [(4) coordinate with other relevant prevention 
        activities across appropriate service agencies, 
        organizations, councils, and commissions;
          [(5) define an appropriate service delivery system 
        based on children with various types of at-risk 
        factors;
          [(6) document the need for additional services as 
        well as barriers; and
          [(7) disseminate findings and information in the 
        manner prescribed in section 610(g).
  [(c) The Secretary shall arrange by contract, grant, or 
cooperative agreement with appropriate public agencies and 
private nonprofit organizations for the establishment of a 
technical assistance development system to assist entities 
operating experimental, demonstration, and outreach programs 
and to assist State agencies to expand and improve services 
provided to children with disabilities. This technical 
assistance development system shall provide assistance to 
parents of and advocates for infants, toddlers, and children 
with disabilities, as well as direct service and administrative 
personnel involved with such children. Information from the 
system should be aggressively disseminated through established 
information networks and other mechanisms to ensure both an 
impact and benefits at the community level. The Secretary shall 
ensure that the technical assistance provided under this 
subsection includes assistance to part H State agencies on 
procedures for use by primary referral sources in referring a 
child to the appropriate agency within the system for 
evaluation, assessment, or service.
  [(d) The Secretary shall arrange by contract, grant, or 
cooperative agreement with appropriate public agencies and 
private nonprofit organizations for the establishment of early 
childhood research institutes to carry on sustained research to 
generate and disseminate new information on preschool and early 
intervention for children with disabilities and their families. 
Such institutes shall disseminate this information in the 
manner prescribed in section 610(g).
  [(e) The Secretary may make grants to, or enter into 
contracts or cooperative agreements under this section with, 
such organizations or institutions, as are determined by the 
Secretary to be appropriate, for research to identify and meet 
the full range of special needs of children with disabilities 
and for training of personnel for programs specifically 
designed for children with disabilities, including programs to 
integrate children with disabilities into regular preschool 
programs.
  [(f) At least one year before the termination of a grant, 
contract, or cooperative agreement made or entered into under 
subsections (c) and (d), the Secretary shall publish in the 
Federal Register a notice of intent to accept applications for 
such a grant, contract, or cooperative agreement contingent on 
the appropriation of sufficient funds by Congress.
  [(g) For purposes of this section the term ``children with 
disabilities'' includes children from birth through eight years 
of age, including infants and toddlers with disabilities.
  [(h) The Secretary may make grants to, or enter into 
contracts or cooperative agreements with, institutions of 
higher education and nonprofit private organizations to 
synthesize the knowledge developed under this section and 
organize, integrate, and present such knowledge so it can be 
incorporated and imparted to parents, professionals, and others 
providing or preparing to provide preschool or early 
intervention services and to persons designing preschool or 
early intervention programs.

            [programs for children with severe disabilities

  [Sec. 624. (a) The Secretary may make grants to, or enter 
into contracts or cooperative agreements with, appropriate 
public agencies and nonprofit organizations to address the 
special education, related services, early intervention, and 
integration needs of infants, toddlers, children, and youth 
with severe disabilities through--
          [(1) research to identify and meet the full range of 
        special education, related services, and early 
        intervention needs of such children and youth with 
        disabilities, including their need for transportation 
        to and from school,
          [(2) the development or demonstration of new, or 
        improvements in existing, methods, approaches, or 
        techniques which would contribute to the adjustment and 
        education of such children and youth with disabilities,
          [(3) training of special and regular education, 
        related services, and early intervention personnel for 
        programs specifically designed for such infants, 
        toddlers, children and youth, including training of 
        regular teachers, instructors, and administrators in 
        strategies (the goal of which is to serve infants, 
        toddlers, children, and youth with disabilities) that 
        include integrated settings for educating such children 
        along side their nondisabled peers,
          [(4) dissemination of materials and information about 
        practices found effective in working with such children 
        and youth by utilizing existing networks as prescribed 
        in section 610(g) and
          [(5) statewide projects, in conjunction with the 
        State's plan under part B, to improve the quality of 
        special education and related services for children and 
        youth with severe disabilities, and to change the 
        delivery of those services from segregated to 
        integrated environments.
  [(b) The Secretary is authorized to make grants to, or enter 
into contracts or cooperative agreements with, public or 
private nonprofit private agencies, institutions, or 
organizations for the development and operation of extended 
school year demonstration programs for infants, toddlers, 
children, and youth with severe disabilities.
  [(c) In making grants and entering into contracts and 
cooperative agreements under subsection (a), the Secretary 
shall ensure that the activities funded under such grants, 
contracts, or cooperative agreements will be coordinated with 
similar activities funded from grants and contracts under other 
sections of this Act.
  [(d) To the extent feasible, programs authorized by 
subsection (a) shall be geographically dispersed throughout the 
Nation in urban and rural areas.
  [(e) In awarding such grants and contracts under this 
section, the Secretary shall include a priority on programs 
that increase the likelihood that these children and youth will 
be educated with their nondisabled peers.

                        [postsecondary education

  [Sec. 625. (a)(1) The Secretary may make grants to, or enter 
into contracts with, State educational agencies, institutions 
of higher education, junior and community colleges, vocational 
and technical institutions, and other appropriate nonprofit 
educational agencies for the development, operation, and 
dissemination of specially designed model programs of 
postsecondary, vocational, technical, continuing, or adult 
education for individuals with disabilities. Such model 
programs may include joint projects that coordinate with 
special education and transition services.
  [(2) In making grants or contracts on a competitive basis 
under paragraph (1), the Secretary shall give priority 
consideration to 4 regional centers for the deaf and to model 
programs for individuals with disabling conditions other than 
deafness--
          [(A) for developing and adapting programs of 
        postsecondary, vocational, technical, continuing, or 
        adult education to meet the special needs of 
        individuals with disabilities, and
          [(B) for programs that coordinate, facilitate, and 
        encourage education of individuals with disabilities 
        with their nondisabled peers; and
          [(C) for outreach activities that include the 
        provision of technical assistance to strengthen efforts 
        in the development, operation, and design of model 
        programs that are adapted to the special needs of 
        individuals with disabilities.
  [(3) Persons operating programs for persons with disabilities 
under a grant or contract under paragraph (1) must coordinate 
their efforts with and disseminate information about their 
activities to the clearinghouse on postsecondary programs 
established under section 633(b).
  [(4) At least one year before the termination of a grant or 
contract with any of the 4 regional centers for the deaf, the 
Secretary shall publish in the Federal Register a notice of 
intent to accept applications for such grant or contract, 
contingent on the appropriation of sufficient funds by 
Congress.
  [(5) To the extent feasible, programs authorized by paragraph 
(1) shall be geographically dispersed throughout the Nation in 
urban and rural areas.
  [(6) Of the sums made available for programs under paragraph 
(1), not less than $4,000,000 shall first be available for the 
4 regional centers for the deaf. The Secretary shall continue 
to provide assistance through September 30, 1994, to the 
current grantees operating the four regional centers for the 
deaf under subsection (a) of this section. The Secretary shall 
continue to provide such assistance through September 30, 1995, 
unless the authorization of appropriations for parts C-G of the 
Act is extended by September 30, 1994.
  [(b) For purposes of subsection (a), the term ``individuals 
with disabilities'' means individuals--
          [(1) with mental retardation, hearing impairments 
        including deafness, speech or language impairments, 
        visual impairments including blindness, serious 
        emotional disturbance, orthopedic impairments, autism, 
        traumatic brain injury, other health impairments, or 
        specific learning disabilities; and
          [(2) who, by reason thereof, need special education 
        and related services.

     [secondary education and transitional services for youth with 
                              disabilities

  [Sec. 626. (a) The Secretary may make grants to, or enter 
into contracts with, institutions of higher education, State 
educational agencies, local educational agencies, or other 
appropriate public and private nonprofit institutions or 
agencies (including the State job training coordinating 
councils and service delivery area administrative entities 
established under the Job Training Partnership Act) to--
          [(1) strengthen and coordinate special education and 
        related services for youth with disabilities currently 
        in school or who recently left school to assist them in 
        the transition to postsecondary education, vocational 
        training, competitive employment (including supported 
        employment), continuing education, independent and 
        community living, or adult services,
          [(2) stimulate the improvement and development of 
        programs for secondary special education, and
          [(3) stimulate the improvement of the vocational and 
        life skills of students with disabilities to enable 
        them to be better prepared for transition to adult life 
        and services.
To the extent feasible, such programs shall be geographically 
dispersed throughout the Nation in urban and rural areas.
  [(b) Projects assisted under subsection (a) may include--
          [(1) developing strategies and techniques for 
        transition to independent living, vocational training, 
        vocational rehabilitation, postsecondary education, and 
        competitive employment (including supported employment) 
        for youth with disabilities,
          [(2) establishing demonstration models for services, 
        programs, and individualized education programs, which 
        emphasize vocational training, independent living, 
        transitional services, and placement for youth with 
        disabilities,
          [(3) conducting demographic studies which provide 
        information on the numbers, age levels, types of 
        disabling conditions, and services required for youth 
        with disabilities in need of transitional programs,
          [(4) specially designed vocational programs to 
        increase the potential for competitive employment for 
        youth with disabilities,
          [(5) research and development projects for exemplary 
        service delivery models and the replication and 
        dissemination of successful models,
          [(6) initiating cooperative models among educational 
        agencies and adult service agencies, including 
        vocational rehabilitation, mental health, mental 
        retardation, and public employment, and employers, 
        which facilitate the planning and developing of 
        transitional services for youth with disabilities to 
        postsecondary education, vocational training, 
        employment, continuing education, and adult services,
          [(7) developing appropriate procedures for evaluating 
        vocational training, placement, and transitional 
        services for youth with disabilities,
          [(8) conducting studies which provide information on 
        the numbers, age levels, types of disabling conditions 
        and reasons why some youth with disabilities remain to 
        complete school programs while others drop out,
          [(9) developing curriculum and instructional 
        techniques in special education and related services 
        that will improve the acquisition of skills by students 
        with disabilities necessary for transition to adult 
        life and services,
          [(10) specially designed or adapted physical 
        education and therapeutic recreation programs to 
        facilitate the full participation of youths with 
        disabilities in community programs, and
          [(11) developing and disseminating exemplary programs 
        and practices that meet the unique needs of students 
        who utilize assistive technology devices and assistive 
        technology services as such students make the 
        transition to postsecondary education, vocational 
        training, competitive employment (including supported 
        employment), and continuing education or adult 
        services.
  [(c) For purposes of paragraphs (1) and (2) of subsection 
(b), if an applicant is not an educational agency, such 
applicant shall coordinate its activities with the State 
educational agency.
  [(d) Applications for assistance under subsection (a) other 
than for the purpose of conducting studies or evaluations 
shall--
          [(1) describe the procedures to be used for 
        disseminating relevant findings and data to regional 
        resource centers, clearinghouses, and other interested 
        persons, agencies, or organizations,
          [(2) describe the procedures that will be used for 
        coordinating services among agencies for which youth 
        with disabilities are or will be eligible, and
          [(3) provide for the direct participation of students 
        with disabilities and the parents of students with 
        disabilities in the planning, development, and 
        implementation of such projects.
  [(e)(1) The Secretary shall make one-time, 5-year grants, on 
a competitive basis, to States in which the State vocational 
rehabilitation agency and State educational agency submit a 
joint application to develop, implement, and improve systems to 
provide transition services for youth with disabilities from 
age 14 through the age they exit school.
  [(2) In the case of a State whose vocational rehabilitation 
agency does not participate regarding a joint application 
described in paragraph (1), the Secretary may make a grant 
under such paragraph to the State if a joint application for 
the grant is submitted by the State educational agency and one 
other State agency that provides transition services to 
individuals who are leaving programs under this Act.
  [(3) States that receive grants shall use grant funds to:
          [(A) Increase the availability, access, and quality 
        of transition assistance through the development and 
        improvement of policies, procedures, systems, and other 
        mechanisms for youth with disabilities and their 
        families as such youth prepare for and enter adult 
        life.
          [(B) Improve the ability of professionals, parents, 
        and advocates to work with such youth in ways that 
        promote the understanding of and the capability to 
        successfully make the transition from ``student'' to 
        ``adult''.
          [(C) Improve working relationships among education 
        personnel, bothwithin LEAs and in postsecondary 
        training programs, relevant State agencies, the private 
        sector (especially employers), rehabilitation 
        personnel, local and State employment agencies, local 
        Private Industry Councils (PICS) authorized by the Job 
        Training Partnership Act (JTPA), and families of 
        students with disabilities and their advocates to 
        identify and achieve consensus on the general nature 
        and specific application of transition services to meet 
        the needs of youth with disabilities.
          [(D) Create an incentive for accessing and using the 
        expertise and resources of programs, projects, and 
        activities related to transition funded through this 
        section and with other sources.
  [(4)(A) In order to receive funding under this subsection, a 
State vocational rehabilitation agency and State educational 
agency shall describe in their application how they will use 
the first year, if necessary, to plan how to implement 
transition services, the second through fourth years to develop 
and implement transition services, and the fifth year to 
evaluate transition services. The application shall describe 
how the grant funds will be used during the planning period and 
phased out during the evaluation period to ensure the 
continuation of transition services. Such applications shall 
also include--
          [(i) a description of the current availability, 
        access, and quality of transition services for eligible 
        youth and a description of how, over 5 years, the State 
        will improve and expand the availability, access, and 
        quality of transition services for youth with 
        disabilities and their families as such youth prepare 
        for and enter adult life;
          [(ii) a description of how the State will improve and 
        increase the ability of professionals, parents, and 
        advocates to work with such youth in ways that promote 
        the understanding of and the capability to successfully 
        make the transition from ``student'' to ``adult'';
          [(iii) a description of how the State will improve 
        and increase working relationships among education 
        personnel, both within LEAs and in postsecondary 
        training programs, relevant State agencies, the private 
        sector (especially employers), rehabilitation 
        personnel, local and State employment agencies, local 
        Private Industry Councils (PICS) authorized by the 
        JTPA, and families of students with disabilities and 
        their advocates to identify and achieve consensus on 
        the general nature and specific application of 
        transition services to meet the needs of youth with 
        disabilities; and
          [(iv) a description of how the State will use grant 
        funds as an incentive for accessing and using the 
        expertise and resources of programs, projects, and 
        activities related to transition funded through this 
        section and with other sources.
  [(B) The Secretary shall give preference to those 
applications that, in addition to clearly addressing the 
requirements under subparagraph (A), describe how the State 
will--
          [(i) target resources to school settings, such as 
        providing access to rehabilitation counselors for 
        students with disabilities who are in school settings;
          [(ii) target a substantial amount of grant funds, 
        received under this subsection, to case management, 
        program evaluation and documentation of, and 
        dissemination of information about, transition 
        services;
          [(iii) provide incentives for interagency and private 
        sector resource pooling and otherwise investing in 
        transition services, especially in the form of 
        cooperative agreements, particularly with PICS 
        authorized by the JTPA and local branches of State 
        employment agencies;
          [(iv) provide for early, ongoing information and 
        training for those involved with or who could be 
        involved with transition services--professionals, 
        parents, youth with disabilities, including self-
        advocacy training for such youth, and advocates for 
        such youth as well as PICS authorized by the JTPA and 
        local branches of State employment agencies;
          [(v) provide for the early and direct involvement of 
        all relevant parties, including PICS authorized by the 
        JTPA and local branches of State employment agencies, 
        in operating and planning improvements in transition 
        services, and the early and direct involvement of all 
        relevant parties in planning and implementing 
        transition services for individual youth;
          [(vi) provide access to training for eligible youth 
        that matches labor market needs in their communities;
          [(vii) integrate transition services with relevant 
        opportunities in communities, including those sponsored 
        by PICS authorized by the JTPA and local employment 
        agencies;
          [(viii) use a transition services evaluation plan 
        that is outcome oriented and that focuses on individual 
        youth-focused benefits; and
          [(ix) ensure that, when appropriate and no later than 
        age 22, eligible youth who participate in transition 
        services under this program would be served as 
        appropriate in the State section 110 and/or title VI, 
        part C program authorized under the Rehabilitation Act 
        of 1973.
  [(f)(1) The Secretary is authorized to make grants to, or to 
enter into contracts or cooperative agreements with, such 
organizations or institutions as are determined by the 
Secretary to be appropriate for the development or 
demonstration of new or improvements in existing methods, 
approaches, or techniques which will contribute to the 
adjustment and education of children and youth with 
disabilities and the dissemination of materials and information 
concerning practices found effective in working with such 
children and youth. Such organizations and institutions shall 
disseminate such materials and information as prescribed under 
section 610(g).
  [(2) The Secretary shall fund one or more demonstration 
models designed to establish appropriate methods of providing, 
or continuing to provide, assistive technology devices and 
services to secondary school students as they make the 
transition to vocational rehabilitation, employment, 
postsecondary education, or adult services. Such demonstration 
models shall include, as appropriate--
          [(A) cooperative agreements with the Rehabilitation 
        Services Administration and/or State vocational 
        rehabilitation agencies that ensure continuity of 
        funding for assistive technology devices and services 
        to such students; and
          [(B) methods for dissemination of exemplary practices 
        that can be adapted or adopted by transitional programs 
        for secondary school students with disabilities.
  [(3)(A) The Secretary shall award one, five-year cooperative 
agreement through a separate competition to an institution of 
higher education, or nonprofit public or private organization. 
The purpose of this agreement will be to evaluate and document 
the approaches and outcomes of the projects funded under 
subsection (e). The results of this agreement shall be 
disseminated through the appropriate clearinghouses, networks, 
and through direct communication with Federal, State, and local 
agencies.
  [(B) The evaluation carried out pursuant to subparagraph (A) 
of transition services under subsection (e) shall include an 
evaluation of--
          [(i) the outcomes of the transition services provided 
        under such subsection, including the effect of the 
        services regarding postsecondary education, job 
        training, employment, and other appropriate matters;
          [(ii) the impact of including in the individualized 
        education program a statement of needed transition 
        services (as required under section 602(a)(20)(D));
          [(iii) the extent to which, in the provision of the 
        transition services, agencies are cooperating 
        effectively, including evaluation of the extent of 
        coordination of the staff of the agencies, of 
        procedures regarding confidentiality, assessment of 
        needs, and referrals, and coordination regarding data 
        bases and training;
          [(iv) the extent to which obstacles exist regarding 
        cooperation and coordination among agencies in the 
        provision of the transition services, and the extent to 
        which Federal law creates disincentives to such 
        cooperation and coordination; and
          [(v) the extent to which the transition services have 
        been provided in a cost-effective manner.
  [(C) The evaluation carried out pursuant to subparagraph (A) 
shall include recommendations on the manner in which the 
program under subsection (e) can be improved.
  [(D) In the annual report required under section 618(g), the 
Secretary shall include a report of the activities and results 
associated with the agreement under subparagraph (A).
  [(g) The Secretary, as appropriate, shall coordinate programs 
described under subsection (a) with projects developed under 
section 311 of the Rehabilitation Act of 1973, the Job Training 
Partnership Act (JTPA), and the Carl D. Perkins Vocational and 
Applied Technology Education Act.

  [programs for children and youth with serious emotional disturbance

  [Sec. 627. (a) The Secretary is authorized to make grants to, 
or enter into contracts or cooperative agreements with, 
institutions of higher education, State and local educational 
agencies, and other appropriate public and private nonprofit 
institutions or agencies to establish projects for the purpose 
of improving special education and related services to children 
and youth with serious emotional disturbance. Such projects may 
include--
          [(1) studies regarding the present state of special 
        education and related services to such children and 
        youth and their families, including information and 
        data to enable assessments of the status of such 
        services over time;
          [(2) developing methodologies and curricula designed 
        to improve special education and related services for 
        these children and youth;
          [(3) developing and demonstrating strategies and 
        approaches to reduce the use of out-of-community 
        residential programs and the increased use of school 
        district-based programs (which may include day 
        treatment programs, after-school programs, and summer 
        programs);
          [(4) developing the knowledge, skills, and strategies 
        for effective collaboration among special education, 
        regular education, related services, and other 
        professionals and agencies; or
          [(5) developing and demonstrating innovative 
        approaches to assist and to prevent children with 
        emotional and behavioral problems from developing 
        serious emotional disturbances that require the 
        provision of special education and related services.
  [(b)(1) The Secretary is authorized to make grants, on a 
competitive basis, to local educational agencies in 
collaboration with mental health entities to provide services 
for children and youth with serious emotional disturbance. Such 
demonstration projects shall--
          [(A) increase the availability, access, and quality 
        of community services for such children and youth and 
        their families;
          [(B) improve working relationships among education, 
        school, and community mental health and other relevant 
        personnel, families of such children and youth, and 
        their advocates;
          [(C) target resources to school settings, such as 
        providing access to school and/or community mental 
        health professionals and other community resources for 
        students with serious emotional disturbance who are in 
        community school settings; and
          [(D) take into account the needs of minority children 
        and youth in all phases of project activity.
  [(2) Funds received under this subsection may also be used to 
facilitate interagency and private sector resource pooling to 
improve services for such children and youth and to provide 
information and training for those involved with, or who could 
be involved with, such children and youth.
  [(c) Each project assisted under this section shall--
          [(1) apply existing research outcomes from multi-
        disciplinary fields;
          [(2) use a grant evaluation plan that is outcome-
        oriented and that focuses on the benefits to individual 
        children and youth;
          [(3) report on the effectiveness of such project; and
          [(4) disseminate the findings of such project, where 
        appropriate, in accordance with section 610(g).

                    [authorization of appropriations

  [Sec. 628. (a) There are authorized to be appropriated to 
carry out section 621 $8,525,000 for fiscal year 1991, 
$9,300,000 for fiscal year 1992, $10,140,000 for fiscal year 
1993, and $11,052,000 for fiscal year 1994.
  [(b) There are authorized to be appropriated to carry out 
section 622 $21,900,000 for fiscal year 1991, $24,100,000 for 
fiscal year 1992, $26,500,000 for fiscal year 1993, and 
$29,200,000 for fiscal year 1994.
  [(c) There are authorized to be appropriated to carry out 
section 623 $31,400,000 for fiscal year 1991, $34,235,000 for 
fiscal year 1992, $37,325,000 for fiscal year 1993, and 
$40,705,000 for fiscal year 1994.
  [(d) There are authorized to be appropriated to carry out 
section 624 $9,500,000 for fiscal year 1991, $10,500,000 for 
fiscal year 1992, $11,600,000 for fiscal year 1993, and 
$12,700,000 for fiscal year 1994.
  [(e) There are authorized to be appropriated to carry out 
section 625 $9,470,000 for fiscal year 1991, $10,230,000 for 
fiscal year 1992, $11,050,000 for fiscal year 1993, and 
$11,930,000 for fiscal year 1994.
  [(f) There are authorized to be appropriated to carry out 
section 626 (except subsection (e)) $9,800,000 for fiscal year 
1991, $10,800,000 for fiscal year 1992, $11,900,000 for fiscal 
year 1993, and $13,050,000 for fiscal year 1994.
  [(g) There are authorized to be appropriated to carry out 
section 626(e) $27,500,000 for fiscal year 1991, $30,250,000 
for fiscal year 1992, $33,275,000 for fiscal year 1993, and 
$36,602,000 for fiscal year 1994.
  [(h) There are authorized to be appropriated to carry out 
section 627 $6,500,000 for fiscal year 1991, $8,000,000 for 
fiscal year 1992, $9,500,000 for fiscal year 1993, and 
$11,500,000 for fiscal year 1994.

   [Part D--Training Personnel for the Education of Individuals With 
                              Disabilities

                     [grants for personnel training

  [Sec. 631. (a)(1) The Secretary may make grants, which may 
include scholarships with necessary stipends and allowances, to 
institutions of higher education (including university 
affiliated programs and satellite centers participating in 
programs under part D of the Developmental Disabilities 
Assistance and Bill of Rights Act) and other appropriate 
nonprofit agencies to assist them in training personnel for 
careers in special education, related services, and early 
intervention, including--
          [(A) special education teaching, including speech-
        language pathology and audiology, and adapted physical 
        education and instructional and assistive technology 
        services,
          [(B) related services to children and youth with 
        disabilities in educational settings, and other 
        settings,
          [(C) special education and other careers in preschool 
        and early intervention services for infants and 
        toddlers with disabilities,
          [(D) special education leadership, including 
        supervision and administration (at the advanced 
        graduate, doctoral, and post-doctoral levels), special 
        education research, and special education personnel 
        preparation (at the doctoral and post-doctoral levels),
          [(E) training of special education personnel and 
        other personnel providing special services and pre-
        school and early intervention services for children 
        with disabilities, and
          [(F) training in the use, applications, and benefits 
        of assistive technology devices and assistive 
        technology services (as defined in paragraphs (2) and 
        (3) of section 3 of the Technology-Related Assistance 
        for Individuals With Disabilities Act of 1988 (29 
        U.S.C. 2202 (2) and (3))).
  [(2)(A) The Secretary shall base the award of grants under 
paragraph (1) on information relating to the present and 
projected need for special education, related services, early 
intervention, and other personnel to be trained based on 
identified State, regional, or national shortages, including 
the need for personnel in the provision of special education to 
children of limited English proficiency, and the capacity of 
the institution or agency to train qualified personnel, and 
other information considered appropriate by the Secretary.
  [(B) The Secretary shall ensure that grants are only made 
under paragraph (1) to applicant agencies and institutions that 
meet State and professionally recognized standards for the 
preparation of special education and related services personnel 
unless the grant is for the purpose of assisting the applicant 
agency or institution to meet such standards, and that include 
in their applications a detailed description of strategies that 
will be utilized to recruit and train members of minority 
groups and persons with disabilities.
  [(3) Grants under paragraph (1) may be used by institutions 
to assist in covering the cost of courses of training or study 
for such personnel and for establishing and maintaining 
fellowships or traineeships with such stipends and allowances 
as may be determined by the Secretary. Such institutions shall 
give priority consideration in the selection of qualified 
recipients of fellowships and traineeships to individuals from 
disadvantaged backgrounds, including minorities and individuals 
with disabilities who are underrepresented in the teaching 
profession or in the specializations in which they are being 
trained.
  [(4) The Secretary in carrying out paragraph (1) may reserve 
a sum not to exceed 5 percent of the amount available for 
paragraph (1) in each fiscal year for contracts to prepare 
personnel in areas where shortages exist when a response to 
that need has not been adequately addressed by the grant 
process.
  [(5) In making grants under subsection (a)(1), the Secretary 
may determine that a portion of training supported through such 
grants shall be conducted on an interdisciplinary basis, and 
shall be designed to assist special educators in properly 
coordinating service provision with related services personnel. 
To the extent feasible, training programs funded under 
subsection (a)(1)(B) and (a)(1)(E) shall require practica to 
demonstrate the delivery of related services in an array of 
regular and special education and community settings.
  [(6) Nothing in this subsection shall be construed to prevent 
regular education or special education personnel from 
benefiting or participating in training activities conducted 
under this subsection on a preservice or inservice basis.
  [(7) The Secretary, in carrying out paragraph (1), shall make 
grants to Historically Black Colleges and Universities, and 
other institutions of higher education whose minority student 
enrollment is at least 25 percent.
  [(8)(A) In making grants under paragraph (1), the Secretary 
may make grants through a separate competition to institutions 
of higher education, in partnership with local educational 
agencies and center schools for students who are deaf, to carry 
out not less than 4 regional model demonstration training 
programs on deafness and secondary disabilities.
  [(B) Such programs shall provide preservice and inservice 
training to teachers and school administrators, and leadership 
personnel, in the education of students who are deaf and to 
related services personnel.
  [(9) In making grants under paragraph (1), the Secretary may 
provide for the training or retraining of regular education 
teachers who are involved in providing instruction to 
individuals who are deaf, but who are not certified as teachers 
of such individuals, to meet the communications needs of such 
individuals.
  [(b)(1) The Secretary may make grants to institutions of 
higher education, and other appropriate nonprofit agencies or 
organizations for the establishment or continuation of 
educational interpreter training programs to train personnel to 
effectively meet the various communication needs of elementary 
and secondary students who are deaf or deaf-blind. To the 
extent feasible, grants shall be geographically dispersed 
throughout the Nation in urban and rural areas.
  [(2) The Secretary may make a grant under paragraph (1) only 
if the applicant for the grant provides an assurance that all 
interpreters receiving training under the grant will be 
provided training designed to develop skills necessary for 
facilitating effective communication for students who are deaf 
or deaf-blind.
  [(3) In making grants under paragraph (1), the Secretary may 
provide for the training or retraining (including short-term 
and in-service training) of regular education teachers who are 
involved in providing instruction to individuals who are deaf, 
but who are not certified as teachers of such individuals, and 
other personnel who work with such individuals, on the role of 
educational interpreters.
  [(c) The Secretary may make grants to institutions of higher 
education, State agencies, and other appropriate nonprofit 
agencies and organizations to develop and demonstrate effective 
ways for preservice training programs to prepare regular 
educators to work with children and youth with disabilities and 
their families; for training teachers to work in community and 
school settings with school students with disabilities and 
their families; for inservice and preservice training of 
personnel to work with infants, toddlers, children, and youth 
with disabilities and their families; for inservice and 
preservice training of personnel to work with minority infants, 
toddlers, children, and youth with disabilities and their 
families; for preservice and inservice training of special 
education and related services personnel in the use of 
assistive and instructional technology to benefit infants, 
toddlers, children, and youth with disabilities; and for the 
recruitment and retention of special education, related 
services, and early intervention personnel. Both preservice and 
inservice training shall include a component that addresses the 
coordination among all service providers, including regular 
educators.
  [(d)(1) The Secretary shall fund up to 5 grants to States or 
entities to support the formation of consortia or partnerships 
of public and private entities for the purpose of providing 
opportunities for career advancement and/or competency-based 
training, including but not limited to, certificate or degree 
granting programs in special education, related services, and 
early intervention for current workers at public and private 
agencies that provide services to infants, toddlers, children, 
and youth with disabilities. Recipients shall meet the 
requirements of section 610(g) for the dissemination of 
information. The purposes for which such a grant may be 
expended include, but are not limited to, the following:
          [(A) Establishing a program with colleges and 
        universities to develop creative new programs and 
        coursework options and/or to expand existing programs 
        in the field of special education, related services, or 
        early intervention. Funds may be used to provide 
        release time for faculty and staff for curriculum 
        development, instructional costs, and modest start-up 
        and other program development costs.
          [(B) Establishing a career development mentoring 
        program using faculty and professional staff members of 
        participating agencies as role models, career sponsors, 
        and academic advisors for experienced State, city, 
        county, and voluntary sector workers who have 
        demonstrated a commitment to working in the above 
        fields and who are enrolled in higher education 
        institution programs relating to these fields.
          [(C) Supporting a wide range of programmatic and 
        research activities aimed at increasing opportunities 
        for career advancement and competency-based training in 
        the above fields.
          [(D) Identifying existing public and private agency 
        and labor union personnel policies and benefit programs 
        that may facilitate the ability of workers to take 
        advantage of higher education opportunities such as 
        leave time, tuition reimbursement, etc.
  [(2) To the extent feasible, projects authorized under 
paragraph (1) shall be geographically dispersed throughout the 
Nation in urban and rural areas.
  [(3) The Secretary shall award, for the purpose of providing 
technical assistance to States or entities receiving grants 
under paragraph (1), a cooperative agreement through a separate 
competition to an entity that has successfully demonstrated the 
capacity and expertise in the education, training, and 
retention of workers to serve children and youth with 
disabilities through the use of consortia or partnerships 
established for the purpose of retaining the existing workforce 
and providing opportunities for career enhancement.
  [(4) The Secretary may conduct an evaluation of projects 
funded under this subsection.
  [(5) During the period in which an entity is receiving 
financial assistance under paragraph (1) or (3), the entity may 
not receive financial assistance under the other paragraph.
  [(e)(1) The Secretary may make grants through a separate 
competition to private nonprofit organizations for the purpose 
of providing training and information to parents of infants, 
toddlers, children, and youth with disabilities and persons who 
work with parents to enable such individuals to participate 
more effectively with professionals in meeting the educational 
needs of children with disabilities. Such grants shall be 
designed to meet the unique training and information needs of 
parents of infants, toddlers, children, and youth with 
disabilities living in the area to be served by the grant, 
particularly those who are members of groups that have been 
traditionally underrepresented.
  [(2) In order to receive a grant under paragraph (1) a 
private nonprofit organization shall--
          [(A) be governed by a board of directors of which a 
        majority of the members are parents of infants, 
        toddlers, children, and youth with disabilities, 
        particularly minority parents, and that includes 
        members who are professionals, especially minority 
        professionals, in the field of special education, early 
        intervention, and related services, and individuals 
        with disabilities, or, if the nonprofit private 
        organization does not have such a board, such 
        organization shall have a membership that represents 
        the interests of individuals with disabilities, and 
        shall establish a special governing committee of which 
        a majority of the members are parents of infants, 
        toddlers, children, and youth with disabilities, 
        particularly parents of minority children, and which 
        includes members who are professionals, especially 
        minority professionals, in the field of special 
        education, early intervention, and related services, to 
        operate the training and information program under 
        paragraph (1), and parent and professional membership 
        of these boards or special governing committees shall 
        be broadly representative of minority and other 
        individuals and groups having an interest in special 
        education, early intervention, and related services;
          [(B) serve the parents of infants, toddlers, 
        children, and youth with the full range of disabling 
        conditions under such grant program; and
          [(C) demonstrate the capacity and expertise to 
        conduct effectively the training and information 
        activities for which a grant may be made under 
        paragraph (1), and, for purposes of paragraph (1), 
        network with clearinghouses, including those 
        established under section 633 and other organizations 
        and agencies, and network with other established 
        national, State, and local parent groups representing 
        the full range of parents of infants, toddlers, 
        children, and youth with disabilities, especially 
        parents of minority children.
Nothing in subparagraph (A) shall be construed to authorize or 
permit the denial to any person of the due process of law 
required by the United States Constitution.
  [(3) The board of directors or special governing committee of 
a private nonprofit organization receiving a grant under 
paragraph (1) shall meet at least once in each calendar quarter 
to review the parent training and information activities for 
which the grant is made, and each such committee shall advise 
the governing board directly of its views and recommendations. 
Whenever a private nonprofit organization requests the renewal 
of a grant under paragraph (1) for a fiscal year, the board of 
directors or the special governing committee shall submit to 
the Secretary a written review of the parent training and 
information program conducted by that private nonprofit 
organization during the preceding fiscal year.
  [(4) The Secretary shall ensure that grants under paragraph 
(1) will--
          [(A) be distributed geographically to the greatest 
        extent possible throughout all the States and give 
        priority to grants which involve unserved areas,
          [(B) be targeted to parents of children with 
        disabilities in both urban and rural areas or on a 
        State or regional basis,
          [(C) serve parents of minority children with 
        disabilities (including parents served pursuant to 
        paragraph (10)) representative to the proportion of the 
        minority population in the areas being served by 
        requiring that applicants for the grants identify with 
        specificity the special efforts that will be undertaken 
        to involve such parents, including efforts to work with 
        community-based and cultural organizations and the 
        specification of supplementary aids, services, and 
        supports that will be made available, and by specifying 
        budgetary items earmarked to accomplish this 
        subparagraph, and
          [(D) be funded at a sufficient size, scope, and 
        quality to ensure that the program is adequate to serve 
        the parents in the area.
  [(5) Parent training and information programs assisted under 
paragraph (1) shall assist parents to--
          [(A) better understand the nature and needs of the 
        disabling conditions of children,
          [(B) provide followup support for educational 
        programs of children with disabilities,
          [(C) communicate more effectively with special and 
        regular educators, administrators, related services 
        personnel, and other relevant professionals,
          [(D) participate in educational decisionmaking 
        processes, including the development of the 
        individualized education program for a child with a 
        disability,
          [(E) obtain appropriate information about the range 
        of options, programs, services, and resources available 
        at the national, State, and local levels to assist 
        infants, toddlers, children, and youth with 
        disabilities and their families, and
          [(F) understand the provisions for the education of 
        infants, toddlers, children, and youth with 
        disabilities under this Act.
  [(6) Parent training and information programs may, at a grant 
recipient's discretion, include State or local educational 
personnel where such participation will further an objective of 
the program assisted by the grant.
  [(7) Each private nonprofit organization operating a program 
receiving a grant under paragraph (1) shall consult and network 
with appropriate national, State, regional, and local agencies 
and organizations, such as protection and advocacy agencies, 
that serve or assist infants, toddlers, children, and youth 
with disabilities and their families and are located in the 
jurisdictions served by the program.
  [(8) The Secretary shall provide technical assistance, by 
grant or contract, for establishing, developing, and 
coordinating parent training and information programs.
  [(9) After the establishment in each State of a parent 
training and information center, the Secretary shall provide 
for the establishment of 3 experimental centers to serve large 
numbers of parents of children with disabilities located in 
high density areas that do not have such centers and 2 such 
centers to serve large numbers of parents of children with 
disabilities located in rural areas.
  [(10)(A) In the case of a grant under paragraph (1) to a 
private nonprofit organization for fiscal year 1993 or 1994, 
the organization, in expending the amounts described in 
subparagraph (B), shall give priority to providing services 
under this subsection to parents of children with disabilities 
aged 0-5.
  [(B) With respect to a grant under paragraph (1) to a private 
nonprofit organization for fiscal year 1993 or 1994, the 
amounts described in this subparagraph are any amounts provided 
in the grant in excess of the amount of any grant under such 
paragraph provided to the organization for fiscal year 1992.
  [(11) Effective for fiscal year 1991 and every year 
thereafter, the Secretary shall obtain data concerning programs 
and centers assisted under this subsection on--
          [(A) the number of parents provided information and 
        training by disability category of their children,
          [(B) the types and modes of information or training 
        provided,
          [(C) strategies used to reach and serve parents of 
        minority infants, toddlers, children, and youth with 
        disabilities,
          [(D) the number of parents served as a result of 
        activities described under subparagraph (C),
          [(E) activities to network with other information 
        clearinghouses and parent groups as required in 
        subsection (c)(2)(C),
          [(F) the number of agencies and organizations 
        consulted with at the national, State, regional, and 
        local levels, and
          [(G) the number of parents served under this 
        subsection who are parents of children with 
        disabilities aged 0-5.
The Secretary shall include a summary of this information in 
the annual report to Congress as required in section 618(g).

[grants to state educational agencies and institutions for traineeships

  [Sec. 632. (a) The Secretary shall make a grant of sufficient 
size and scope to each State educational agency for the 
purposes described in subsection (c) and, in any State in which 
the State educational agency does not apply for such a grant, 
to an institution of higher education within such State for 
such purposes.
  [(b) The Secretary may also make a limited number of grants 
to State educational agencies on a competitive basis for the 
purposes described in subsection (c). In any fiscal year, the 
Secretary may not expend for purposes of this subsection an 
amount that exceeds 10 percent of the amount expended for 
purposes of this section in the preceding fiscal year.
  [(c) Grants made under this section shall be for the purpose 
of assisting States in establishing and maintaining preservice 
and inservice programs to prepare special and regular 
education, related services and early intervention personnel to 
meet the needs of infants, toddlers, children, and youth with 
disabilities or supervisors of such persons, consistent with 
the personnel needs identified in the State's comprehensive 
system of personnel development under section 613 and under 
section 676(b)(8), and to assist the State in developing and 
maintaining such systems and conducting personnel recruitment 
and retention activities.
  [(d) The Secretary is authorized to provide directly or by 
grant, contract, or cooperative agreement, technical assistance 
to State educational agencies on matters pertaining to the 
effective implementation of section 613(a)(3).

                            [clearinghouses

  [Sec. 633. (a) The Secretary is authorized to make grants to, 
or enter into contracts or cooperative agreements with, public 
agencies or private nonprofit organizations or institutions for 
the establishment of three national clearinghouses: on children 
and youth with disabilities; on postsecondary education for 
individuals with disabilities; and on careers in special 
education, to--
          [(1) collect, develop, and disseminate information,
          [(2) provide technical assistance,
          [(3) conduct coordinated outreach activities,
          [(4) provide for the coordination and networking with 
        other relevant national, State, and local organizations 
        and information and referral resources,
          [(5) respond to individuals and organizations seeking 
        information, and
          [(6) provide for the synthesis of information for its 
        effective utilization by parents, professionals, 
        individuals with disabilities, and other interested 
        parties.
  [(b) The national clearinghouse for children and youth with 
disabilities shall:
          [(1) Collect and disseminate information (including 
        the development of materials) on characteristics of 
        infants, toddlers, children, and youth with 
        disabilities and on programs, legislation, and services 
        relating to their education under this Act and other 
        Federal laws.
          [(2) Participate in programs and services related to 
        disability issues for providing outreach, technical 
        assistance, collection, and dissemination of 
        information; and promoting networking of individuals 
        with appropriate national, State, and local agencies 
        and organizations.
          [(3) Establish a coordinated network and conduct 
        outreach activities with relevant Federal, State, and 
        local organizations and other sources for promoting 
        public awareness of disability issues and the 
        availability of information, programs, and services.
          [(4) Collect, disseminate, and develop information on 
        current and future national, Federal, regional, and 
        State needs for providing information to parents, 
        professionals, individuals with disabilities, and other 
        interested parties relating to the education and 
        related services of individuals with disabilities.
          [(5) Provide technical assistance to national, 
        Federal, regional, State and local agencies and 
        organizations seeking to establish information and 
        referral services for individuals with disabilities and 
        their families.
          [(6) In carrying out the activities in this 
        subsection, the clearinghouse will include strategies 
        to disseminate information to underrepresented groups 
        such as those with limited English proficiency.
  [(c) The national clearinghouse on postsecondary education 
for individuals with disabilities shall:
          [(1) Collect and disseminate information nationally 
        on characteristics of individuals entering and 
        participating in education and training programs after 
        high school; legislation affecting such individuals and 
        such programs; policies, procedures, and support 
        services, as well as adaptations, and other resources 
        available or recommended to facilitate the education of 
        individuals with disabilities; available programs and 
        services that include, or can be adapted to include, 
        individuals with disabilities; and sources of financial 
        aid for the education and training of individuals with 
        disabilities.
          [(2) Identify areas of need for additional 
        information.
          [(3) Develop new materials (in both print and 
        nonprint form), especially by synthesizing information 
        from a variety of fields affecting disability issues 
        and the education, rehabilitation, and retraining of 
        individuals with disabilities.
          [(4) Develop a coordinated network of professionals, 
        related organizations and associations, mass media, 
        other clearinghouses, and governmental agencies at the 
        Federal, regional, State, and local level for the 
        purposes of disseminating information and promoting 
        awareness of issues relevant to the education of 
        individuals with disabilities after high school and 
        referring individuals who request information to local 
        resources.
          [(5) Respond to requests from individuals with 
        disabilities, their parents, and professionals who work 
        with them, for information that will enable them to 
        make appropriate decisions about postsecondary 
        education and training.
  [(d) The national clearinghouse designed to encourage 
students to seek careers and professional personnel to seek 
employment in the various fields relating to the education of 
children and youth with disabilities shall:
          [(1) Collect and disseminate information on current 
        and future national, regional, and State needs for 
        special education and related services personnel.
          [(2) Disseminate information to high school 
        counselors and others concerning current career 
        opportunities in special education, location of 
        programs, and various forms of financial assistance 
        (such as scholarships, stipends, and allowances).
          [(3) Identify training programs available around the 
        country.
          [(4) Establish a network among local and State 
        educational agencies and institutions of higher 
        education concerning the supply of graduates and 
        available openings.
          [(5) Provide technical assistance to institutions 
        seeking to meet State and professionally recognized 
        standards.
  [(e)(1) In awarding grants, contracts, and cooperative 
agreements under this section, the Secretary shall give 
priority consideration to any applicant with demonstrated, 
proven effectiveness (at the national level) in performing the 
functions established in this section; and with the ability to 
conduct such projects, communicate with intended consumers of 
information, and maintain the necessary communication with 
national, regional, State, and local agencies and 
organizations.
  [(2) In awarding grants, contracts, and cooperative 
agreements under this section, the Secretary shall give 
priority consideration to any applicant with demonstrated, 
proven effectiveness (at the national level) in providing 
informational services to minorities and minority 
organizations.
  [(f)(1) Beginning in fiscal year 1991, and for each year 
thereafter, the Secretary shall obtain information on each 
project assisted under this section, including--
          [(A) the number of individuals served by disability 
        category, as appropriate, including parents, 
        professionals, students, and individuals with 
        disabilities;
          [(B) a description of responses utilized;
          [(C) a listing of new products developed and 
        disseminated; and
          [(D) a description of strategies and activities 
        utilized for outreach to urban and rural areas with 
        populations of minorities and underrepresented groups.
  [(2) A summary of the data required by this subsection shall 
be included in the annual report to Congress required under 
section 618.

                       [reports to the secretary

  [Sec. 634. (a) Not more than sixty days after the end of any 
fiscal year, each recipient of a grant or contract under this 
part during such fiscal year shall prepare and submit a report 
to the Secretary. Each such report shall be in such form and 
detail as the Secretary determines to be appropriate, and shall 
include--
          [(1) the number of individuals trained under the 
        grant or contract, by category of training and level of 
        training;
          [(2) the number of individuals trained under the 
        grant or contract receiving degrees and certification, 
        by category and level of training; and
          [(3) information described in section 631(d)(11) and 
        section 633(f)(1), as applicable.
  [(b) A summary of the data required by this section shall be 
included in the annual report of the Secretary under section 
618 of this Act.

                    [authorization of appropriations

  [Sec. 635. (a)(1) There are authorized to be appropriated to 
carry out this part (other than sections 631(a)(7), 631(d), and 
633) $94,725,000 for fiscal year 1991, $103,255,000 for fiscal 
year 1992, $113,580,000 for fiscal year 1993, and $123,760,000 
for fiscal year 1994.
  [(2) There are authorized to be appropriated to carry out 
section 631(a)(7) $19,250,000 for fiscal year 1991, $21,175,000 
for fiscal year 1992, $23,292,500 for fiscal year 1993, and 
$25,621,750 for fiscal year 1994.
  [(3) There are authorized to be appropriated to carry out 
section 631(d) $11,000,000 for fiscal year 1991, $15,100,000 
for fiscal year 1992, $16,300,000 for fiscal year 1993, and 
$17,600,000 for fiscal year 1994.
  [(4) There are authorized to be appropriated to carry out 
section 633 $2,900,000 for fiscal year 1991, $2,465,000 for 
fiscal year 1992, $2,710,000 for fiscal year 1993, and 
$2,960,000 for fiscal year 1994.
  [(b) Of the funds appropriated pursuant to subsection (a) for 
any fiscal year, the Secretary shall reserve not less than 65 
per centum for activities described in subparagraphs (A) 
through (E) of section 631(a)(1).

     [Part E--Research in the Education of Handicapped Individuals

                    [research and related activities

  [Sec. 641. (a) The Secretary may make grants to, or enter 
into contracts or cooperative agreements with, State and local 
educational agencies, institutions of higher education, other 
public agencies and nonprofit private organizations for the 
purpose of advancing and improving the knowledge base and 
improving the practice of professionals, parents, and others 
providing early intervention, special education, and related 
services, including professionals who work with children and 
youth with disabilities in regular education environments, to 
provide such children effective instruction and enable them to 
successfully learn. The activities supported under this section 
shall support innovation, development, exchange, and use of 
such advancements in knowledge and practice designed to 
contribute to the improvement of instruction and learning of 
infants, toddlers, children, and youth with disabilities. In 
carrying out this section, the Secretary may support a wide 
range of research and related activities designed to--
          [(1) advance knowledge regarding the provision of 
        instruction and other interventions to infants, 
        toddlers, children, and youth with disabilities 
        including--
                  [(A) the organization, synthesis, and 
                interpretation of current knowledge and the 
                identification of knowledge gaps;
                  [(B) the identification of knowledge and 
                skill competencies needed by personnel 
                providing special education, related services, 
                and early intervention services;
                  [(C) the improvement of knowledge regarding 
                the developmental and learning characteristics 
                of infants, toddlers, children, and youth with 
                disabilities in order to improve the design and 
                effectiveness of interventions and instruction;
                  [(D) the evaluation of approaches and 
                interventions;
                  [(E) the development of instructional 
                strategies, techniques, and activities;
                  [(F) the improvement of curricula and 
                instructional tools such as textbooks, media, 
                materials, and technology;
                  [(G) the development of assessment 
                techniques, instruments (including tests, 
                inventories, and scales), and strategies for 
                measurement of progress and the identification, 
                location, and evaluation of infants, toddlers, 
                children, and youth with disabilities for the 
                purpose of determining eligibility, program 
                planning, and placement for special education, 
                related services, and early intervention 
                services. Particular attention should be given 
                to the development of alternative assessment 
                procedures and processes for minority 
                individuals and those with limited English 
                proficiency;
                  [(H) the testing of research findings in 
                practice settings to determine the application, 
                usability, effectiveness, and generalizability 
                of such research findings;
                  [(I) the improvement of knowledge regarding 
                families, minorities, limited English 
                proficiency, and disabling conditions; and
                  [(J) the identification of environmental, 
                organizational, resource, and other conditions 
                necessary for effective professional practice; 
                and
          [(2) advance the use of knowledge by personnel 
        providing special education, related services, and 
        early intervention services including--
                  [(A) the improvement of knowledge regarding 
                how such individuals learn new knowledge and 
                skills, and strategies for effectively 
                facilitating such learning in preservice, 
                inservice, and continuing education;
                  [(B) the organization, integration, and 
                presentation of knowledge so that such 
                knowledge can be incorporated and imparted in 
                personnel preparation, continuing education 
                programs, and other relevant training and 
                communication vehicles; and
                  [(C) the expansion and improvement of 
                networks that exchange knowledge and practice 
                information.
  [(b) In carrying out subsection (a), the Secretary shall 
consider the special education, related services, or early 
intervention and research experience of applicants.
  [(c) The Secretary shall publish proposed priorities under 
this part in the Federal Register not later than 12 months 
preceding the fiscal year for which they are being announced, 
and shall allow a period of 60 days for public comments and 
suggestions. The Secretary shall, after analyzing and 
considering the public comments, publish final priorities in 
the Federal Register not later than 90 days after the close of 
the comment period.
  [(d) The Secretary shall provide an index (including the 
title of each project and the name and address of the funded 
organization) of all projects conducted under this part in the 
prior fiscal year in the annual report described under section 
618.
  [(e) The Secretary shall--
          [(1) coordinate the priorities established under 
        subsection (b) with research priorities established by 
        the National Institute for Disability and 
        Rehabilitation Research and other appropriate agencies 
        conducting research pertaining to the education of 
        individuals with disabilities; and
          [(2) provide information concerning priorities 
        established under subsection (b) to the National 
        Council on Disability and to the Bureau of Indian 
        Affairs Advisory Committee for Exceptional Children.
  [(f)(1) The Secretary shall make grants or enter into 
contracts or cooperative agreements for the establishment of a 
center or centers designed to organize, synthesize, and 
disseminate current knowledge relating to children with 
attention deficit disorder with respect to the following:
          [(A) Assessment techniques, instruments, and 
        strategies used for identification, location, 
        evaluation and for measurement of progress.
          [(B) Knowledge and skill competencies needed by 
        professionals providing special and regular education 
        and related services.
          [(C) Environmental, organizational, resource, and 
        other conditions necessary for effective professional 
        practice.
          [(D) Developmental and learning characteristics.
          [(E) Instructional strategies, techniques, and 
        activities.
          [(F) Curricula and instructional tools such as 
        textbooks, media, materials, and technology.
          [(G) Strategies, techniques, and activities related 
        to involvement of families.
  [(2) In awarding grants, contracts, and cooperative 
agreements under paragraph (1), the Secretary shall give 
priority consideration to applicants with--
          [(A) demonstrated knowledge concerning the disorder;
          [(B) proven effectiveness in performing the functions 
        established in this subsection; and
          [(C) the ability to--
                  [(i) conduct such projects;
                  [(ii) communicate with intended consumers of 
                information; and
                  [(iii) maintain the necessary communication 
                with national, regional, State, and local 
                agencies.
  [(g)(1) The Secretary shall make grants, or enter into 
contracts or cooperative agreements, for the establishment of 
model demonstration programs, of which some will be school-
based models, that provide the services of an ombudsman to 
assist in resolving problems that are barriers to appropriate 
educational, related services, or other services for children 
and youth with disabilities.
  [(2) Programs under paragraph (1) shall provide or identify 
personnel to assist children and youth with disabilities, their 
parents or guardians, special and regular education teachers, 
State and local education administrators, and related services 
personnel to resolve problems in a timely manner through 
dispute mediation and other methods, notwithstanding due 
process procedures, in order to further the delivery of 
appropriate education and related services. Participation in 
this program does not preclude or delay due process under part 
B of this Act.
  [(3) Ombudsman services for programs under paragraph (1) 
shall be provided by social workers, parent advocates, 
psychologists, and persons with similar qualifications 
designated by the Secretary.
  [(h)(1) The Secretary may make grants to institutions of 
higher education, in partnership with other appropriate 
agencies and organizations such as local educational agencies 
and center schools for students who are deaf, to--
          [(A) conduct research in the unique needs of children 
        and youth, including minority children and youth, with 
        disabilities;
          [(B) develop and evaluate specialized instructional 
        methods, materials, curricula, and technologies for use 
        with such children and youth; and
          [(C) develop and evaluate assessment techniques, 
        instruments, and strategies used to identify, evaluate, 
        and measure the progress of such children and youth.
  [(2) Each grantee under this subsection shall provide for the 
meaningful involvement in its project of parents and family 
members and adult role models.

    [research and demonstration projects in physical education and 
               recreation for children with disabilities

  [Sec. 642. The Secretary is authorized to make grants to 
States, State or local educational agencies, institutions of 
higher education, and other public or nonprofit private 
educational or research agencies and organizations, and to make 
contracts with States, State or local educational agencies, 
institutions of higher education, and other public or private 
educational or research agencies and organizations, for 
research and related purposes relating to physical education or 
recreation for children with disabilities, including 
therapeutic recreation, and to conduct research, surveys, or 
demonstrations relating to physical education or recreation for 
children with disabilities, including therapeutic recreation.

                    [authorization of appropriations

  [Sec. 643. For purposes of carrying out this part, there are 
authorized to be appropriated $21,100,000 for fiscal year 1990, 
$24,650,000 for fiscal year 1991, $27,400,000 for fiscal year 
1992, $30,200,000 for fiscal year 1993, and $33,200,000 for 
fiscal year 1994.

     [Part F--Instructional Media for Individuals With Disabilities

                               [purposes

  [Sec. 651. The purposes of this part are to promote--
          [(1) the general welfare of deaf and hard of hearing 
        individuals by--
                  [(A) bringing to such individuals 
                understanding and appreciation of those films 
                and television programs that play such an 
                important part in the general and cultural 
                advancement of hearing individuals;
                  [(B) providing through these films and 
                television programs enriched educational and 
                cultural experiences through which deaf and 
                hard of hearing individuals can be brought into 
                better touch with the realities of their 
                environment; and
                  [(C) providing a wholesome and rewarding 
                experience that deaf and hard of hearing 
                individuals may share together; and
          [(2) the educational advancement of individuals with 
        disabilities by--
                  [(A) carrying on research in the use of 
                educational media for individuals with 
                disabilities;
                  [(B) producing and distributing educational 
                media for the use of individuals with 
                disabilities, their parents, their actual or 
                potential employers, and other individuals 
                directly involved in work for the advancement 
                of individuals with disabilities;
                  [(C) training individuals in the use of 
                educational media for the instruction of 
                individuals with disabilities; and
                  [(D) utilizing educational media to help 
                eliminate illiteracy among individuals with 
                disabilities; \1\
          [(3) the general welfare of visually impaired 
        individuals by--
                  [(A) bringing to such individuals an 
                understanding and appreciation of textbooks, 
                films, television programs, video material, and 
                other educational publications and materials 
                that play such an important part in the general 
                and cultural advancement of visually unimpaired 
                individuals; and
                  [(B) ensuring access to television 
                programming and other video materials.

[captioned films, television, descriptive video, and educational media 
                      for handicapped individuals

  [Sec. 652. (a) The Secretary shall establish a loan service 
of captioned films, descriptive video and educational media for 
the purpose of making such materials available, in accordance 
with regulations, in the United States for nonprofit purposes 
to individuals with disabilities, parents of individuals with 
disabilities, and other individuals directly involved in 
activities for the advancement of individuals with 
disabilities, including for the purpose of addressing problems 
of illiteracy among individuals with disabilities.
  [(b) The Secretary is authorized to--
          [(1) acquire films (or rights thereto) and other 
        educational media by purchase, lease, or gift;
          [(2) acquire by lease or purchase equipment necessary 
        for the administration of this part;
          [(3) provide, by grant or contract, for the 
        captioning for deaf and hard of hearing individuals and 
        video description for the visually impaired, of films, 
        television programs, and video materials;
          [(4) provide, by grant or contract, for the 
        distribution of captioned and video-described films, 
        video materials, and other educational media and 
        equipment through State schools for handicapped 
        individuals, public libraries, and such other agencies 
        or entities as the Secretary may deem appropriate to 
        serve as local or regional centers for such 
        distribution;
          [(5) provide, by grant or contract, for the conduct 
        of research in the use of educational and training 
        films and other educational media for individuals with 
        disabilities, for the production and distribution of 
        educational and training films and other educational 
        media for individuals with disabilities and the 
        training of individuals in the use of such films and 
        media, including the payment to those individuals of 
        such stipends (including allowances for travel and 
        other expenses of such individuals and their 
        dependents) as the Secretary may determine, which shall 
        be consistent with prevailing practices under 
        comparable federally supported programs;
          [(6) utilize the facilities and services of other 
        governmental agencies;
          [(7) accept gifts, contributions, and voluntary and 
        uncompensated services of individuals and 
        organizations; and
          [(8) provide by grant or contract for educational 
        media and materials for deaf and hard of hearing 
        individuals.
  [(c) The Secretary may make grants to or enter into contracts 
or cooperative agreements with the National Theatre of the 
Deaf, Inc. and other appropriate non-profit organizations for 
the purpose of providing cultural experiences to--
          [(1) enrich the lives of deaf and hard of hearing 
        children and adults,
          [(2) increase public awareness and understanding of 
        deafness and of the artistic and intellectual 
        achievements of deaf and hard of hearing individuals, 
        and
          [(3) promote the integration of hearing and deaf and 
        hard of hearing individuals through shared cultural, 
        educational, and social experiences.
  [(d)(1) The Secretary is authorized to make a grant or enter 
into a contract for the purpose of providing current, free 
textbooks and other educational publications and materials to 
blind and other print-handicapped students in elementary, 
secondary, postsecondary, and graduate schools and other 
institutions of higher education through the medium of 
transcribed tapes and cassettes.
  [(2) For the purpose of this subsection, the term ``print-
handicapped'' refers to any individual who is blind or severely 
visually impaired, or who, by reason of a physical or 
perceptual disability, is unable to read printed material 
unassisted.

                    [authorization of appropriations

  [Sec. 653. For the purpose of carrying out section 652 there 
are authorized to be appropriated $20,010,000 for fiscal year 
1991, $22,010,000 for fiscal year 1992, $24,200,000 for fiscal 
year 1993, and $26,600,000 for fiscal year 1994.

 [Part G--Technology, Educational Media, and Materials for Individuals 
                           With Disabilities

                         [financial assistance

  [Sec. 661. (a) The Secretary may make grants or enter into 
contracts or cooperative agreements with institutions of higher 
education, State and local educational agencies, or other 
appropriate agencies and organizations for the purpose of 
advancing the use of new technology, media, and materials in 
the education of students with disabilities and the provision 
of related services and early intervention services to infants 
and toddlers with disabilities. In carrying out this section, 
the Secretary may fund projects or centers for the purposes 
of--
          [(1) determining how technology, assistive 
        technology, media, and materials are being used in the 
        education of individuals with disabilities and how they 
        can be used most effectively, efficiently, and 
        appropriately,
          [(2) designing and adapting technology, assistive 
        technology, media, and materials to improve the 
        education of students with disabilities,
          [(3) assisting the public and private sectors in the 
        development and marketing of technology, assistive 
        technology, media, and materials for the education of 
        individuals with disabilities,
          [(4) disseminating information on the availability 
        and use of technology, assistive technology, media, and 
        materials for the education of individuals with 
        disabilities, where appropriate, to entities described 
        in section 610(g),
          [(5) increasing access to and use of assistive 
        technology devices and assistive technology services in 
        the education of infants, toddlers, children, and youth 
        with disabilities, and other activities authorized 
        under the Technology-Related Assistance for Individuals 
        With Disabilities Act of 1988, as such Act relates to 
        the education of students with disabilities, and
          [(6) examining how these purposes can address the 
        problem of illiteracy among individuals with 
        disabilities.
  [(b)(1) With respect to new technology, media, and materials 
utilized with funds under this part to improve the education of 
students with disabilities, the Secretary shall make efforts to 
ensure that such instructional materials are closed captioned.
  [(2) The Secretary may not award a grant, contract, or 
cooperative agreement under paragraphs (1) through (4) of 
subsection (a) unless the applicant for such assistance agrees 
that activities carried out with the assistance will be 
coordinated, as appropriate, with the State entity receiving 
funds under title I of the Technology-Related Assistance for 
Individuals with Disabilities Act of 1988.

                    [authorization of appropriations

  [Sec. 662. For the purpose of carrying out this part, there 
are authorized to be appropriated $11,900,000 for fiscal year 
1991, $12,860,000 for fiscal year 1992, $13,890,000 for fiscal 
year 1993, and $15,000,000 for fiscal year 1994.

            [Part H--Infants and Toddlers With Disabilities

                          [findings and policy

  [Sec. 671. (a) Findings.--The Congress finds that there is an 
urgent and substantial need--
          [(1) to enhance the development of infants and 
        toddlers with disabilities and to minimize their 
        potential for developmental delay,
          [(2) to reduce the educational costs to our society, 
        including our Nation's schools, by minimizing the need 
        for special education and related services after 
        infants and toddlers with disabilities reach school 
        age,
          [(3) to minimize the likelihood of 
        institutionalization of individuals with disabilities 
        and maximize the potential for their independent living 
        in society,
          [(4) to enhance the capacity of families to meet the 
        special needs of their infants and toddlers with 
        disabilities, and
          [(5) to enhance the capacity of State and local 
        agencies and service providers to identify, evaluate, 
        and meet the needs of historically underrepresented 
        populations, particularly minority, low-income, inner-
        city, and rural populations.
  [(b) Policy.--It is therefore the policy of the United States 
to provide financial assistance to States--
          [(1) to develop and implement a statewide, 
        comprehensive, coordinated, multidisciplinary, 
        interagency program of early intervention services for 
        infants and toddlers with disabilities and their 
        families,
          [(2) to facilitate the coordination of payment for 
        early intervention services from Federal, State, local, 
        and private sources (including public and private 
        insurance coverage), and
          [(3) to enhance their capacity to provide quality 
        early intervention services and expand and improve 
        existing early intervention services being provided to 
        infants and toddlers with disabilities and their 
        families.

                              [definitions

  [Sec. 672. As used in this part--
          [(1) The term ``infants and toddlers with 
        disabilities'' means individuals from birth to age 2, 
        inclusive, who need early intervention services because 
        they--
                  [(A) are experiencing developmental delays, 
                as measured by appropriate diagnostic 
                instruments and procedures in one or more of 
                the following areas: cognitive development, 
                physical development, language and speech 
                development (hereafter in this part referred to 
                as ``communication development''), psychosocial 
                development (hereafter in this part referred to 
                as ``social or emotional development''), or 
                self-help skills (hereafter in this part 
                referred to as ``adaptive development''), or
                  [(B) have a diagnosed physical or mental 
                condition which has a high probability of 
                resulting in developmental delay.
        Such term may also include, at a State's discretion, 
        individuals from birth to age 2, inclusive, who are at 
        risk of having substantial developmental delays if 
        early intervention services are not provided.
          [(2) The term ``early intervention services'' are 
        developmental services which--
                  [(A) are provided under public supervision,
                  [(B) are provided at no cost except where 
                Federal or State law provides for a system of 
                payments by families, including a schedule of 
                sliding fees,
                  [(C) are designed to meet the developmental 
                needs of an infant or toddler with a disability 
                in any one or more of the following areas:
                          [(i) physical development,
                          [(ii) cognitive development,
                          [(iii) communication development,
                          [(iv) social or emotional 
                        development, or
                          [(v) adaptive development,
                  [(D) meet the standards of the State, 
                including the requirements of this part,
                  [(E) include--
                          [(i) family training, counseling, and 
                        home visits,
                          [(ii) special instruction,
                          [(iii) speech pathology and 
                        audiology,
                          [(iv) occupational therapy,
                          [(v) physical therapy,
                          [(vi) psychological services,
                          [(vii) case management services 
                        (hereafter in this part referred to as 
                        ``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 early 
                        intervention services,
                  [(F) are provided by qualified personnel, 
                including--
                          [(i) special educators,
                          [(ii) speech and language 
                        pathologists and audiologists,
                          [(iii) occupational therapists,
                          [(iv) physical therapists,
                          [(v) psychologists,
                          [(vi) social workers,
                          [(vii) nurses,
                          [(viii) nutritionists,
                          [(ix) family therapists,
                          [(x) orientation and mobility 
                        specialists, and
                          [(xi) pediatricians and other 
                        physicians,
                  [(G) to the maximum extent appropriate, are 
                provided in natural environments, including the 
                home, and community settings in which children 
                without disabilities participate, and
                  [(H) are provided in conformity with an 
                individualized family service plan adopted in 
                accordance with section 677.
          [(3) The term ``developmental delay'' has the meaning 
        given such term by a State under section 676(b)(1).
          [(4) The term ``Council'' means the State Interagency 
        Coordinating Council established under section 682.

                           [general authority

  [Sec. 673. The Secretary shall, in accordance with this part, 
make grants to States (from their allocations under section 
684) to assist each State to develop a statewide, 
comprehensive, coordinated, multidisciplinary, interagency 
system to provide early intervention services for infants and 
toddlers with disabilities and their families.

                          [general eligibility

  [Sec. 674. In order to be eligible for a grant under section 
673 for any fiscal year, a State shall demonstrate to the 
Secretary (in its application under section 678) that the State 
has established a State Interagency Coordinating Council which 
meets the requirements of section 682.

                        [continuing eligibility

  [Sec. 675. (a) First Two Years.--In order to be eligible for 
a grant under section 673 for the first or second year of a 
State's participation under this part, a State shall include in 
its application under section 678 for that year an assurance 
that funds received under section 673 shall be used to assist 
the State to plan, develop, and implement the statewide system 
required by section 676.
  [(b) Third and Fourth Year.--(1) In order to be eligible for 
a grant under section 673 for the third or fourth year of a 
State's participation under this part, a State shall include in 
its application under section 678 for that year information and 
assurances demonstrating to the satisfaction of the Secretary 
that--
          [(A) the State has adopted a policy which 
        incorporates all of the components of a statewide 
        system in accordance with section 676 or obtained a 
        waiver from the Secretary under paragraph (2),
          [(B) funds shall be used to plan, develop, and 
        implement the statewide system required by section 676, 
        and
          [(C) such statewide system will be in effect no later 
        than the beginning of the fourth year of the State's 
        participation under section 673, except that in order 
        to comply with section 676(b)(4), a State need only 
        conduct multidisciplinary assessments, develop 
        individualized family service plans, and make available 
        case management services.
  [(2) Notwithstanding paragraph (1), the Secretary may permit 
a State to continue to receive assistance under section 673 
during such third year even if the State has not adopted the 
policy required by paragraph (1)(A) before receiving assistance 
if the State demonstrates in its application--
          [(A) that the State has made a good faith effort to 
        adopt such a policy,
          [(B) the reasons why it was unable to meet the 
        timeline and the steps remaining before such a policy 
        will be adopted, and
          [(C) an assurance that the policy will be adopted and 
        go into effect before the fourth year of such 
        assistance.
  [(c) Fifth and Succeeding Years.--In order to be eligible for 
a grant under section 673 for a fifth and any succeeding year 
of a State's participation under this part, a State shall 
include in its application under section 678 for that year 
information and assurances demonstrating to the satisfaction of 
the Secretary that the State has in effect the statewide system 
required by section 676 and a description of services to be 
provided under section 676(b)(2).
  [(d) Exception.--Notwithstanding subsections (a) and (b), a 
State which has in effect a State law, enacted before September 
1, 1986, that requires the provision of free appropriate public 
education to children with disabilities from birth through age 
2, inclusive, shall be eligible for a grant under section 673 
for the first through fourth years of a State's participation 
under this part.
  [(e) Differential Funding for Fourth or Fifth Year.--
          [(1) In general.--Notwithstanding any other provision 
        of this part, a State shall be eligible for a grant 
        under section 673 for fiscal years 1990, 1991, or 1992 
        if--
                  [(A) the State satisfies the eligibility 
                criteria described in subsection (b)(1) 
                pertaining to the State's third or fourth year 
                of participation under this part; and
                  [(B) the Governor, on behalf of the State, 
                submits, by a date that the Secretary may 
                establish for each such year, a request for 
                extended participation, including--
                          [(i) information demonstrating to the 
                        Secretary's satisfaction that the State 
                        is experiencing significant hardships 
                        in meeting the requirements of this 
                        section for the fourth or fifth year of 
                        participation; and
                          [(ii) a plan, including timelines, 
                        for meeting the eligibility criteria 
                        described in subsections (b)(1) and (c) 
                        for the fourth, fifth, or succeeding 
                        years of participation.
          [(2) Approval of request.--
                  [(A) First year.--The Secretary shall approve 
                a State's request for a first year of extended 
                participation under this subsection if the 
                State meets the requirements of paragraph (1).
                  [(B) Second year.--The Secretary shall 
                approve a State's request for a second year of 
                extended participation under this subsection if 
                the State--
                          [(i) meets the requirements of 
                        paragraph (1); and
                          [(ii) demonstrates to the Secretary's 
                        satisfaction that the State has made 
                        reasonable progress in implementing the 
                        plan described in paragraph (1)(B)(ii).
          [(3) Duration.--The Secretary may not approve more 
        than two requests from the same State for extended 
        participation under this subsection.
          [(4) Payment.--
                  [(A) Fiscal year 1990.--Notwithstanding any 
                other provision of law, each State qualifying 
                for extended participation under this 
                subsection for fiscal year 1990 shall receive a 
                payment under this part in an amount equal to 
                such State's payment under this part for fiscal 
                year 1989.
                  [(B) Fiscal year 1991 or 1992.--Except as 
                provided in subparagraph (C) and 
                notwithstanding any other provision of law, 
                each State qualifying for extended 
                participation under this subsection for fiscal 
                year 1991 or fiscal year 1992 shall receive a 
                payment under this part for such fiscal years 
                in an amount equal to the payment such State 
                would have received under this part for fiscal 
                year 1990 if such State had met the criteria 
                for the fourth year of participation described 
                in subsection (b)(1).
                  [(C) Minimum payment for fiscal year 1991 or 
                1992 for certain states.--Notwithstanding any 
                other provision of law, each State qualifying 
                for extended participation under this 
                subsection for fiscal year 1991 or fiscal year 
                1992 shall receive a payment under this part of 
                not less than $500,000. For purposes of the 
                preceding sentence, the term ``State'' means 
                each of the 50 States, the District of 
                Columbia, and the Commonwealth of Puerto Rico.
          [(5) Reallotment.--
                  [(A) Fiscal year 1990.--The amount by which 
                the allotment computed under section 684 for 
                any State for fiscal year 1990 exceeds the 
                amount that such State may be allotted under 
                paragraph (4)(A) of this subsection (and, 
                notwithstanding section 684(d), any fiscal year 
                1990 funds allotted to any State that such 
                State elects not to receive) shall be 
                reallotted, notwithstanding the percentage 
                limitations set forth in sections 684 (a) and 
                (b), among those States satisfying the 
                eligibility criteria of subsection (b)(1) for 
                the fourth year of participation that have 
                submitted an application by a date that the 
                Secretary may establish in an amount which 
                bears the same ratio to such amount as the 
                amount of such State's allotment under section 
                684 as modified by this subsection in such 
                fiscal year bears to the amount of all such 
                States' allotment under section 684 as modified 
                by this subsection in such fiscal year.
                  [(B) Fiscal year 1991 or 1992.--The amount by 
                which a State's allotment computed under 
                section 684 for any State for fiscal years 1991 
                or 1992 exceeds the amount that such State may 
                be allotted for such fiscal year under 
                paragraph (4)(B) of this subsection shall be 
                reallotted, notwithstanding the percentage 
                limitations set forth in section 684 (a) and 
                (b)--
                          [(i) first, among those States 
                        satisfying the eligibility criteria of 
                        subsection (c) for the fifth year of 
                        participation that have submitted 
                        applications by a date that the 
                        Secretary may establish for each such 
                        year in an amount which bears the same 
                        ratio to such amount as the amount of 
                        such State's allotment under section 
                        684 as modified by this subsection in 
                        such fiscal year bears to the amount of 
                        all such States' allotment under 
                        section 684 as modified by this 
                        subsection in such fiscal year, except 
                        that no such State, by operation of 
                        this clause, shall receive an increase 
                        of more than 100 percent over the 
                        amount such State would have otherwise 
                        received under section 684 for the 
                        previous fiscal year;
                          [(ii) second, if funds remain, among 
                        those States that have--
                                  [(I) satisfied the 
                                eligibility criteria of 
                                subsection (b)(1) for the 
                                fourth year of participation;
                                  [(II) qualified for extended 
                                participation under this 
                                subsection; and
                                  [(III) not received a 
                                reallotment payment under 
                                clause (i),
                        in an amount which bears the same ratio 
                        to such amount as the amount of such 
                        State's allotment under section 684 as 
                        modified by this subsection in such 
                        fiscal year bears to the amount of all 
                        such States' allotment under section 
                        684 as modified by this subsection in 
                        such fiscal year, except that no State, 
                        by operation of this clause, shall 
                        receive a reallotment payment that is 
                        larger than the payment such State 
                        would otherwise have received under 
                        section 684 for such year; and
                          [(iii) third, if funds remain, among 
                        those States satisfying the eligibility 
                        criteria of subsection (c) for the 
                        fifth year of participation that did 
                        not receive a reallotment payment under 
                        clause (ii) in an amount which bears 
                        the same ratio to such amount as the 
                        amount of such State's allotment under 
                        section 684 as modified by this 
                        subsection in such fiscal year bears to 
                        the amount of all such States' 
                        allotment under section 684 as modified 
                        by this subsection in such fiscal year.
          [(6) Definitions.--For the purpose of this 
        subsection, the term ``State'', except as provided in 
        paragraph (4)(C), means--
                  [(A) each of the 50 States, the District of 
                Columbia, and the Commonwealth of Puerto Rico;
                  [(B) each of the jurisdictions listed in 
                section 684(a); and
                  [(C) the Department of the Interior.

                   [requirements for statewide system

  [Sec. 676. (a) In General.--A statewide system of 
coordinated, comprehensive, multidisciplinary, interagency 
programs providing appropriate early intervention services to 
all infants and toddlers with disabilities and their families, 
including Indian infants and toddlers with disabilities on 
reservations, shall include the minimum components under 
subsection (b).
  [(b) Minimum Components.--The statewide system required by 
subsection (a) shall include, at a minimum--
          [(1) a definition of the term ``developmentally 
        delayed'' that will be used by the State in carrying 
        out programs under this part,
          [(2) timetables for ensuring that appropriate early 
        intervention services will be available to all infants 
        and toddlers with disabilities in the State, including 
        Indian infants and toddlers with disabilities on 
        reservations, before the beginning of the fifth year of 
        a State's participation under this part,
          [(3) a timely, comprehensive, multidisciplinary 
        evaluation of the functioning of each infant and 
        toddler with a disability in the State and the needs of 
        the families to appropriately assist in the development 
        of the infant or toddler with a disability,
          [(4) for each infant and toddler with a disability in 
        the State, an individualized family service plan in 
        accordance with section 677, including service 
        coordination services in accordance with such service 
        plan,
          [(5) a comprehensive child find system, consistent 
        with part B of this Act, 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 to all primary 
        referral sources of information materials for parents 
        on the availability of early intervention services, and 
        procedures for determining the extent to which primary 
        referral sources, especially hospitals and physicians, 
        disseminate information on the availability of early 
        intervention services to parents of infants with 
        disabilities,
          [(7) a central directory which includes early 
        intervention services, resources, and experts available 
        in the State and research and demonstration projects 
        being conducted in the State,
          [(8) a comprehensive system of personnel development, 
        including the training of paraprofessionals and the 
        training of primary referral sources respecting the 
        basic components of early intervention services 
        available in the State, that is consistent with the 
        comprehensive system of personnel development described 
        in section 613(a)(3) and that may include--
                  [(A) implementing innovative strategies and 
                activities for the recruitment and retention of 
                early intervention 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 
                areas, and
                  [(D) training personnel to coordinate 
                transition services for infants and toddlers 
                with disabilities from an early intervention 
                program under this part to a preschool program 
                under section 619 of part B.
          [(9) a single line of responsibility in a lead agency 
        designated or established by the Governor for carrying 
        out--
                  [(A) the general administration and 
                supervision of programs and activities 
                receiving assistance under section 673, 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 673, 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 
                678(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 
                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,
          [(10) a policy pertaining to the contracting or 
        making of other arrangements with service providers to 
        provide early intervention services in the State, 
        consistent with the provisions of this part, including 
        the contents of the application used and the conditions 
        of the contract or other arrangements,
          [(11) a procedure for securing timely reimbursement 
        of funds used under this part in accordance with 
        section 681(a),
          [(12) procedural safeguards with respect to programs 
        under this part as required by section 680,
          [(13) policies and procedures relating to the 
        establishment and maintenance of standards to ensure 
        that personnel necessary to carry out this part are 
        appropriately and adequately prepared and trained, 
        including--
                  [(A) the establishment and maintenance of 
                standards which are consistent with any State 
                approved or recognized certification, 
                licensing, registration, or other comparable 
                requirements which apply to the area in which 
                such personnel are providing early intervention 
                services, and
                  [(B) to the extent such standards are not 
                based on the highest requirements in the State 
                applicable to a specific profession or 
                discipline, the steps the State is taking to 
                require the retraining or hiring of personnel 
                that meet appropriate professional requirements 
                in the State, and
          [(14) a system for compiling data on the numbers of 
        infants and toddlers with disabilities and their 
        families in the State in need of appropriate early 
        intervention services (which may be based on a sampling 
        of data), the numbers of such infants and toddlers and 
        their families served, the types of services provided 
        (which may be based on a sampling of data), and other 
        information required by the Secretary.

                  [individualized family service plan

  [Sec. 677. (a) Assessment and Program Development.--Each 
infant or toddler with a disability and the infant's or 
toddler's family shall 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 their infant or toddler with a 
        disability, and
          [(3) a written individualized family service plan 
        developed by a multidisciplinary team, including the 
        parent or guardian, as required by subsection (d).
  [(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 parent's consent, early intervention services may commence 
prior to the completion of such assessment.
  [(d) Content of Plan.--The individualized family service plan 
shall be in writing and contain--
          [(1) a statement of the infant's or toddler's present 
        levels of physical development, cognitive development, 
        communication development, social or emotional 
        development, and adaptive development, based on 
        acceptable objective criteria,
          [(2) a statement of the family's resources, 
        priorities, and concerns relating to enhancing the 
        development of the family's infant or toddler with a 
        disability,
          [(3) a statement of the major outcomes expected to be 
        achieved for the infant or toddler and the family, and 
        the criteria, procedures, and timelines used to 
        determine the degree to which progress toward achieving 
        the outcomes is being made and whether modifications or 
        revisions of the outcomes or services are necessary,
          [(4) a statement of specific early intervention 
        services necessary to meet the unique needs of the 
        infant or toddler and the family, including the 
        frequency, intensity, and the method of delivering 
        services,
          [(5) a statement of the natural environments in which 
        early intervention services shall appropriately be 
        provided,
          [(6) the projected dates for initiation of services 
        and the anticipated duration of such services,
          [(7) the name of the case manager (hereafter in this 
        part referred to as the ``service coordinator'') from 
        the profession most immediately relevant to the 
        infant's or toddler's or family's needs (or who is 
        otherwise qualified to carry out all applicable 
        responsibilities under this part) who will be 
        responsible for the implementation of the plan and 
        coordination with other agencies and persons, and
          [(8) the steps to be taken supporting the transition 
        of the toddler with a disability to services provided 
        under part B of this Act to the extent such services 
        are considered appropriate.
  [(e) Parental Consent.--The contents of the individualized 
family service plan shall be fully explained to the parents or 
guardian and informed written consent from such parents or 
guardian shall be obtained prior to the provision of early 
intervention services described in such plan. If such parents 
or guardian do not provide such consent with respect to a 
particular early intervention service, then the early 
intervention services to which such consent is obtained shall 
be provided.

                   [state application and assurances

  [Sec. 678. (a) Application.--Any State desiring to receive a 
grant under section 673 for any year shall submit an 
application to the Secretary at such time and in such manner as 
the Secretary may reasonably require by regulation. Such an 
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 673,
          [(2) a designation by the State of an individual or 
        entity responsible for assigning financial 
        responsibility among appropriate agencies,
          [(3) information demonstrating eligibility of the 
        State under section 674,
          [(4) the information or assurances required to 
        demonstrate eligibility of the State for the particular 
        year of participation under section 675,
          [(5)(A) information demonstrating that the State has 
        provided (i) public hearings, (ii) adequate notice of 
        such hearings, and (iii) an opportunity for comment to 
        the general public before the submission of such 
        application and before the adoption by the State of the 
        policies described in such application, and (B) a 
        summary of the public comments and the State's 
        responses,
          [(6) a description of the uses for which funds will 
        be expended in accordance with this part and, for the 
        fifth and succeeding fiscal years, a description of the 
        services to be provided,
          [(7) a description of the procedure used to ensure an 
        equitable distribution of resources made available 
        under this part among all geographic areas within the 
        State,
          [(8) a description of the policies and procedures 
        used to ensure a smooth transition for individuals 
        participating in the early intervention program under 
        this part who are eligible for participation in 
        preschool programs under part B, including a 
        description of how the families will be included in the 
        transitional plans and how the lead agency under this 
        part will notify the appropriate local educational 
        agency or intermediate educational unit in which the 
        child resides and convene, with the approval of the 
        family, a conference between the lead agency, the 
        family, and such agency or unit at least 90 days before 
        such child is eligible for the preschool program under 
        part B in accordance with State law, and to review the 
        child's program options, for the period commencing on 
        the day a child turns 3 running through the remainder 
        of the school year, and to establish a transition plan, 
        and
          [(9) such other information and assurances as the 
        Secretary may reasonably require by regulation.
  [(b) Statement of Assurances.--Any State desiring to receive 
a grant under section 673 shall file with the Secretary a 
statement at such time and in such manner as the Secretary may 
reasonably require by regulation. Such statement shall--
          [(1) assure that funds paid to the State under 
        section 673 will be expended in accordance with this 
        part,
          [(2) contain assurances that the State will comply 
        with the requirements of section 681,
          [(3) provide satisfactory assurance that the control 
        of funds provided under section 673, and title to 
        property derived therefrom, shall 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) provide for (A) making such reports in such form 
        and containing such information as the Secretary may 
        require to carry out the Secretary's functions under 
        this part, and (B) keeping such records and affording 
        such access thereto as the Secretary may find necessary 
        to assure the correctness and verification of such 
        reports and proper disbursement of Federal funds under 
        this part,
          [(5) provide satisfactory assurance that Federal 
        funds made available under section 673 (A) will not be 
        commingled with State funds, and (B) will be so used as 
        to supplement and increase the level of State and local 
        funds expended for infants and toddlers with 
        disabilities and their families and in no case to 
        supplant such State and local funds,
          [(6) provide satisfactory assurance that such fiscal 
        control and fund accounting procedures will be adopted 
        as may be necessary to assure proper disbursement of, 
        and accounting for, Federal funds paid under section 
        673 to the State,
          [(7) beginning in fiscal year 1992, provide 
        satisfactory assurance that policies and practices have 
        been adopted to ensure meaningful involvement of 
        traditionally underserved groups, including minority, 
        low-income, and rural families, in the planning and 
        implementation of all the requirements of this part and 
        to ensure that such families have access to culturally 
        competent services within their local areas, and
          [(8) such other information and assurances as the 
        Secretary may reasonably require by regulation.
  [(c) Approval of Application and Assurances Required.--No 
State may receive a grant under section 673 unless the 
Secretary has approved the application and statement of 
assurances of that State. The Secretary shall not disapprove 
such an application or statement of assurances unless the 
Secretary determines, after notice and opportunity for a 
hearing, that the application or statement of assurances fails 
to comply with the requirements of this section.

                             [uses of funds

  [Sec. 679. In addition to using funds provided under section 
673 to plan, develop, and implement the statewide system 
required by section 676, a State may use such funds--
          [(1) for direct services for infants and toddlers 
        with disabilities and their families that are not 
        otherwise provided from other public or private 
        sources,
          [(2) to expand and improve on services for infants 
        and toddlers with disabilities and their families that 
        are otherwise available, and
          [(3) to provide a free appropriate public education, 
        in accordance with part B, to children with 
        disabilities from their third birthday to the beginning 
        of the following school year.

                         [procedural safeguards

  [Sec. 680. The procedural safeguards required to be included 
in a statewide system under section 676(b)(12) 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, 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. 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 or guardians 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 or guardian 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 or a guardian 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 with a disability whenever the parents or 
        guardian of the child are not known or unavailable or 
        the child is a ward of the State, including the 
        assignment of an individual (who shall not be an 
        employee of the State agency providing services) to act 
        as a surrogate for the parents or guardian.
          [(6) Written prior notice to the parents or guardian 
        of the infant or toddler with a disability whenever the 
        State agency or service provider proposes to initiate 
        or change or refuses to initiate or change the 
        identification, evaluation, placement, or the provision 
        of appropriate early intervention services to the 
        infant or toddler with a disability.
          [(7) Procedures designed to assure that the notice 
        required by paragraph (6) fully informs the parents or 
        guardian, in the parents' or guardian's native 
        language, unless it clearly is not feasible to do so, 
        of all procedures available pursuant to this section.
          [(8) During the pendency of any proceeding or action 
        involving a complaint, unless the State agency and the 
        parents or guardian otherwise agree, the child 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.

                         [payor of last resort

  [Sec. 681. (a) Nonsubstitution.--Funds provided under section 
673 may not be used to satisfy a financial commitment for 
services which would have been paid for from another public or 
private source but for the enactment of this part, except that 
whenever considered necessary to prevent a delay in the receipt 
of appropriate early intervention services by the infant or 
toddler or family in a timely fashion, funds provided under 
section 673 may be used to pay the provider of services pending 
reimbursement from the agency which has ultimate responsibility 
for the payment.
  [(b) Reduction of Other Benefits.--Nothing in this part shall 
be construed to permit the State to reduce medical or other 
assistance available or to alter eligibility under title V of 
the Social Security Act (relating to maternal and child health) 
or title XIX of the Social Security Act (relating to medicaid 
for infants or toddlers with disabilities) within the State.

                [state interagency coordinating council

  [Sec. 682. (a) Establishment.--(1) Any State which desires to 
receive financial assistance under section 673 shall establish 
a State Interagency Coordinating Council composed of at least 
15 members but not more than 25 members, unless the State 
provides sufficient justification for a greater number of 
members in the application submitted pursuant to section 678.
  [(2) 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) 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 676(b)(9) may not serve as the chairperson of the 
Council.
  [(b) Composition.--(1) The Council shall be composed as 
follows:
          [(A) At least 20 percent of the members shall be 
        parents, including minority parents, of infants or 
        toddlers with disabilities or children with 
        disabilities aged 12 or younger, with knowledge of, or 
        experience with, programs for infants and toddlers with 
        disabilities. At least one such member shall be a 
        parent of an infant or toddler with a disability or a 
        child with a disability aged 6 or younger.
          [(B) At least 20 percent of the members shall be 
        public or private providers of early intervention 
        services.
          [(C) At least one member shall be from the State 
        legislature.
          [(D) At least one member shall be involved in 
        personnel preparation.
          [(E) At least one member shall be from each of the 
        State agencies involved in the provision of, or payment 
        for, early intervention services to infants and 
        toddlers with disabilities and their families and shall 
        have sufficient authority to engage in policy planning 
        and implementation on behalf of such agencies.
          [(F) At least one member shall be from the State 
        educational agency responsible for preschool services 
        to children with disabilities and shall have sufficient 
        authority to engage in policy planning and 
        implementation on behalf of such agency.
          [(G) At least one member shall be from the agency 
        responsible for the State governance of insurance, 
        especially in the area of health insurance.
  [(2) The Council may include other members selected by the 
Governor, including a representative from the Bureau of Indian 
Affairs, or where there is no BIA operated or funded school, 
from the Indian Health Service or the tribe/tribal council.
  [(c) Meetings.--The Council shall meet at least quarterly and 
in such places as it deems necessary. The meetings shall be 
publicly announced, and, to the extent appropriate, open and 
accessible to the general public.
  [(d) Management Authority.--Subject to the approval of the 
Governor, the Council may prepare and approve a budget using 
funds under this part to conduct hearings and forums, to 
reimburse members of the Council for reasonable and necessary 
expenses for attending Council meetings and performing Council 
duties (including child care for parent representatives), to 
pay compensation to a member of the Council if such member is 
not employed or must forfeit wages from other employment when 
performing official Council business, to hire staff, and to 
obtain the services of such professional, technical, and 
clerical personnel as may be necessary to carry out its 
functions under this part.
  [(e) Functions of Council.--(1) The Council shall--
          [(A) advise and assist the lead agency designated or 
        established under section 676(b)(9) in the performance 
        of the responsibilities set out in such section, 
        particularly the identification of the sources of 
        fiscal and other support for services for early 
        intervention programs, assignment of financial 
        responsibility to the appropriate agency, and the 
        promotion of the interagency agreements,
          [(B) advise and assist the lead agency in the 
        preparation of applications and amendments thereto,
          [(C) advise and assist the State educational agency 
        regarding the transition of toddlers with disabilities 
        to services provided under part B, to the extent such 
        services are appropriate, 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) The Council may advise and assist the lead agency and 
the State educational agency regarding the provision of 
appropriate services for children aged birth to 5, inclusive.
  [(f) Conflict of Interest.--No member of the Council shall 
cast a vote on any matter which would provide direct financial 
benefit to that member or otherwise give the appearance of a 
conflict of interest under State law.
  [(g) Use of Existing Councils.--To the extent that a State 
has established a Council before September 1, 1986, that is 
comparable to the Council described in this section, such 
Council shall be considered to be in compliance with this 
section. Within 4 years after the date the State accepts funds 
under section 673, such State shall establish a council that 
complies in full with this section.

                        [federal administration

  [Sec. 683. Sections 616, 617, and 620 shall, to the extent 
not inconsistent with this part, apply to the program 
authorized by this part, except that--
          [(1) any reference to a State educational agency 
        shall be deemed to be a reference to the State agency 
        established or designated under section 676(b)(9),
          [(2) any reference to the education of children with 
        disabilities and the education of all children with 
        disabilities and the provision of free public education 
        to all children with disabilities shall be deemed to be 
        a reference to the provision of services to infants and 
        toddlers with disabilities in accordance with this 
        part, and
          [(3) any reference to local educational agencies and 
        intermediate educational agencies shall be deemed to be 
        a reference to local service providers under this part.

                          [allocation of funds

  [Sec. 684. (a) From the sums appropriated to carry out this 
part for any fiscal year, the Secretary may reserve 1 percent 
for payments to Guam, American Samoa, the Virgin Islands, the 
Republic of the Marshall Islands, the Federated States of 
Micronesia, the Republic of Palau, and the Commonwealth of the 
Northern Mariana Islands in accordance with their respective 
needs.
  [(b)(1) The Secretary shall, subject to this subsection, 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 
consortium of the above entities for the coordination of 
assistance in the provision of early intervention services by 
the States to infants and toddlers with disabilities and their 
families on reservations served by elementary and secondary 
schools for Indian children operated or funded by the 
Department of the Interior. The amount of such payment for any 
fiscal year shall be 1.25 percent of the aggregate of the 
amount available to all States under this part for that fiscal 
year.
  [(2) The Secretary of the Interior shall distribute the total 
amount of the 1.25 percent under paragraph (1) in the following 
manner:
          [(A) For the first fiscal year, each tribe or tribal 
        organization shall receive an amount proportionate to 
        the amount of weighted student units for special 
        education programs for BIA operated or funded schools 
        serving such reservation generated under the formula 
        established under section 1128 of the Education 
        Amendments of 1978, divided by the total number of such 
        students in all BIA operated or funded schools.
          [(B) For each fiscal year thereafter, each tribe or 
        tribal organization shall receive 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 or tribal 
        organizations.
  [(3) To receive a payment under this paragraph, the tribe or 
tribal organization shall submit such figures to the Secretary 
of the Interior as are needed to determine the amounts to be 
allocated under paragraph (2).
  [(4) The funds received by a tribe or tribal organization 
shall be used to assist States in child find, screening, and 
other procedures for the early identification of Indian 
children aged 0-2, inclusive, and for parent training. Such 
funds may also be used to provide early intervention services 
in accordance with this part. 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 and 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.
  [(5) To be eligible to receive a grant pursuant to paragraph 
(2), the tribe or tribal organization shall make a biennial 
report to the Secretary of the Interior of activities 
undertaken under this subsection, including the number of 
contracts and cooperative agreements entered into, the number 
of children contacted and receiving services for each year, and 
the estimated number of children needing services during the 2 
years following the one in which the report is made. The 
Secretary of the Interior shall include a summary of this 
information on a biennial basis to the Secretary of Education 
along with such other information as required under section 
611(f)(3)(D) of this Act. The Secretary of Education may 
require any additional information from the Secretary of the 
Interior.
  [(6) None of the funds under this subsection can be used by 
the Secretary of the Interior for administrative purposes, 
including child count, and the provision of technical 
assistance.
      [(c)(1) Except as provided in paragraphs (3), (4), and 
(5) from the funds remaining for each fiscal year after the 
reservation and payments under subsections (a) and (b), the 
Secretary shall first allot to each State an amount that bears 
the same ratio to the amount of such remainder as the number of 
infants and toddlers in the State bears to the number of 
infants and toddlers in all States.
    [(2) For fiscal year 1995 only, the Secretary shall allot 
$34,000,000 of the remaining funds described in paragraph (1) 
among the States in proportion to their relative numbers of 
infants and toddlers with disabilities who--
          [(A) are counted on December 1, 1994; and
          [(B) would have been eligible to be counted under 
        section 1221(c)(1) of the Elementary and Secondary 
        Education Act of 1965 (as such section was in effect on 
        the day preceding the date of the enactment of the 
        Improving America's Schools Act of 1994).
    [(3) Except as provided in paragraphs (4) and (5), no State 
shall receive an amount under this section for any fiscal year 
that is less than the greater of--
          [(A) one-half of one percent of the remaining amount 
        described in paragraph (1), excluding any amounts 
        allotted under paragraph (2); or
          [(B) $500,000.
    [(4)(A) Except as provided in paragraph (5), no State shall 
receive an amount under this section for any of the fiscal 
years 1995 through 1999 that is less than the sum of the amount 
such State received for fiscal year 1994 under--
          [(i) this part; and
          [(ii) subpart 2 of part D of chapter 1 of title I of 
        the Elementary and Secondary Education Act of 1965 (as 
        such subpart was in existence on the day preceding the 
        date of enactment of the Improving America's Schools 
        Act of 1994) for children with disabilities from birth 
        through age 2.
    [(B) If, for fiscal year 1998 or 1999, the number of 
infants and toddlers in any State, as determined under 
paragraph (1), is less than the number of infants and toddlers 
so determined for fiscal year 1994, the amount determined under 
subparagraph (A) for that State shall be reduced by the same 
percentage by which the number of those infants and toddlers so 
declined.
    [(5)(A) If the sums made available under this part for any 
fiscal year are insufficient to pay the full amounts that all 
States are eligible to receive under this subsection for such 
year, the Secretary shall ratably reduce the allocations to 
such States for such year.
    [(B) If additional funds become available for making 
payments under this subsection for such fiscal year, 
allocations that were reduced under subparagraph (A) shall be 
increased on the same basis as such allocations were reduced.
  [(6) For the purpose of paragraph (1)--
          [(A) the terms ``infants'' and ``toddlers'' mean 
        children from birth to age 2, inclusive, and
          [(B) the term ``State'' does not include the 
        jurisdictions described in subsection (a).
  [(d) If any State elects not to receive its allotment under 
subsection (c)(1), the Secretary shall reallot, among the 
remaining States, amounts from such State in accordance with 
such subsection.

               [federal interagency coordinating council

  [Sec. 685. (a) Establishment and Purpose.--
          [(1) In general.--The Secretary shall establish a 
        Federal Interagency Coordinating Council in order to--
                  [(A) minimize duplication of programs and 
                activities relating to early intervention 
                services for infants and toddlers with 
                disabilities and their families, and preschool 
                services for children with disabilities, across 
                Federal, State, and local agencies;
                  [(B) ensure the effective coordination of 
                Federal early intervention and preschool 
                programs and policies across Federal agencies;
                  [(C) coordinate the provision of Federal 
                technical assistance and support activities to 
                States;
                  [(D) identify gaps in Federal agency programs 
                and services; and
                  [(E) identify barriers to Federal interagency 
                cooperation.
          [(2) Appointments.--The council established under 
        paragraph (1) (hereafter in this section referred to as 
        the ``Council'') and the chairperson of the Council 
        shall be appointed by the Secretary in consultation 
        with other appropriate Federal agencies. In making the 
        appointments, the Secretary shall ensure that each 
        member has sufficient authority to engage in policy 
        planning and implementation on behalf of the 
        department, agency, or program that such member 
        represents.
  [(b) Composition.--The Council shall be composed of--
          [(1) a representative of the Office of Special 
        Education Programs;
          [(2) a representative of the National Institute on 
        Disability and Rehabilitation Research;
          [(3) a representative of the Maternal and Child 
        Health Services Block Grant Program;
          [(4) a representative of programs assisted under the 
        Developmental Disabilities Assistance and Bill of 
        Rights Act;
          [(5) a representative of the Health Care Financing 
        Administration;
          [(6) a representative of the Division of Birth 
        Defects and Developmental Disabilities of the Centers 
        for Disease Control;
          [(7) a representative of the Social Security 
        Administration;
          [(8) a representative of the special supplemental 
        nutrition program for women, infants, and children of 
        the Department of Agriculture;
          [(9) a representative of the National Institute of 
        Mental Health;
          [(10) a representative of the National Institute of 
        Child Health and Human Development;
          [(11) a representative of the Bureau of Indian 
        Affairs of the Department of the Interior;
          [(12) a representative of the Indian Health Service;
          [(13) a representative of the Surgeon General;
          [(14) a representative of the Department of Defense;
          [(15) a representative of the Administration for 
        Children and Families;
          [(16) a representative of the Alcohol, Drug Abuse and 
        Mental Health Administration;
          [(17) a representative of the Pediatric Aids Health 
        Care Demonstration Program in the Public Health 
        Service;
          [(18) at least 3 parents of children with 
        disabilities age 12 or under, of whom at least one must 
        have a child with a disability under the age of 6;
          [(19) at least 2 representatives of State lead 
        agencies for early intervention services to infants and 
        toddlers, one of which must be a representative of a 
        State educational agency and the other a representative 
        of a noneducational agency;
          [(20) other members representing appropriate agencies 
        involved in the provision of, or payment for, early 
        intervention services and special education and related 
        services to infants and toddlers with disabilities and 
        their families and preschool children with 
        disabilities; and
          [(21) other persons appointed by the Secretary.
  [(c) Meetings.--The Council shall meet at least quarterly and 
in such places as the Council deems necessary. The meetings 
shall be publicly announced, and, to the extent appropriate, 
open and accessible to the general public.
  [(d) Functions of the Council.--The Council shall--
          [(1) advise and assist the Secretary in the 
        performance of the Secretary's responsibilities 
        described in this part;
          [(2) conduct policy analyses of Federal programs 
        related to the provision of early intervention services 
        and special educational and related services to infants 
        and toddlers with disabilities and their families, and 
        preschool children with disabilities, in order to 
        determine areas of conflict, overlap, duplication, or 
        inappropriate omission;
          [(3) identify strategies to address issues described 
        in paragraph (2);
          [(4) develop and recommend joint policy memoranda 
        concerning effective interagency collaboration, 
        including modifications to regulations, and the 
        elimination of barriers to interagency programs and 
        activities;
          [(5) coordinate technical assistance and disseminate 
        information on best practices, effective program 
        coordination strategies, and recommendations for 
        improved early intervention programming for infants and 
        toddlers with disabilities and their families and 
        preschool children with disabilities; and
          [(6) facilitate activities in support of States' 
        interagency coordination efforts.
  [(e) Conflict of Interest.--No member of the Council shall 
cast a vote on any matter that would provide direct financial 
benefit to that member or otherwise give the appearance of a 
conflict of interest under Federal law.

                    [authorization of appropriations

  [Sec. 686. There are authorized to be appropriated to carry 
out this part $220,000,000 for fiscal year 1992, and such sums 
as may be necessary for each of the fiscal years 1993 and 1994.

                        [PART I--FAMILY SUPPORT

[SEC. 701. SHORT TITLE.

  [This part may be cited as the ``Families of Children With 
Disabilities Support Act of 1994''.

[SEC. 702. FINDINGS, PURPOSES, AND POLICY.

  [(a) Findings.--The Congress makes the following findings:
          [(1) It is in the best interest of our Nation to 
        preserve, strengthen, and maintain the family.
          [(2) Families are the greatest natural resource 
        available to their children and are the major providers 
        of support, care, and training of their children.
          [(3) Families of children with disabilities enrich 
        the lives of all citizens through the contributions of 
        such families to the economic, health, and social 
        fabric of their community, State, and Nation.
          [(4) A growing number of families are searching for 
        ways to empower themselves to raise their children with 
        disabilities at home and in their communities. 
        Supporting such families to enable them to care for 
        their children with disabilities at home is efficient 
        and can be cost-effective.
          [(5) Children, including children with disabilities, 
        benefit from enduring family relationships in a 
        nurturing home environment.
          [(6) Many families experience exceptionally high 
        financial outlays and significant physical and 
        emotional challenges in meeting the special needs of 
        their children with disabilities.
          [(7) There are financial disincentives for families 
        to care for their children with disabilities at home.
          [(8) Most families of children with disabilities do 
        not have access to family-centered and family-directed 
        services to support such families in their efforts to 
        care for their children with disabilities at home.
          [(9) There is a need in each State for a 
        comprehensive, coordinated, interagency system of 
        family support for families of children with 
        disabilities that is family-centered and family-
        directed, is easily accessible, avoids duplication, 
        uses existing resources more efficiently, and prevents 
        gaps in services to families in all areas of the State.
          [(10) The goals of the Nation properly include the 
        goal of providing families of children with 
        disabilities the family support necessary to accomplish 
        the following:
                  [(A) To support the family.
                  [(B) To enable families of children with 
                disabilities to nurture and enjoy their 
                children at home.
                  [(C) To enable families of children with 
                disabilities to make informed choices and 
                decisions regarding the nature of services, 
                supports, and resources made available to such 
                families.
  [(b) Purposes.--The purposes of this part are as follows:
          [(1) To provide financial assistance to the States to 
        support systems change activities designed to assist 
        each State to develop and implement, or expand and 
        enhance, a family-centered and family-directed, 
        culturally competent, community-centered, 
        comprehensive, statewide system of family support for 
        families of children with disabilities that is designed 
        to--
                  [(A) ensure the full participation, choice 
                and control of families of children with 
                disabilities in decisions related to the 
                provision of such family support for their 
                family;
                  [(B) ensure the active involvement of 
                families of children with disabilities in the 
                planning, development, implementation, and 
                evaluation of such a statewide system;
                  [(C) increase the availability of, funding 
                for, access to, and provision of family support 
                for families of children with disabilities;
                  [(D) promote training activities that are 
                family-centered and family-directed and that 
                enhance the ability of family members of 
                children with disabilities to increase 
                participation, choice, and control in the 
                provision of family support for families of 
                children with disabilities;
                  [(E) increase and promote interagency 
                coordination among State agencies, and between 
                State agencies and private entities that are 
                involved in carrying out activities under 
                section 708; and
                  [(F) increase the awareness of laws, 
                regulations, policies, practices, procedures, 
                and organizational structures, which facilitate 
                or impede the availability or provision of 
                family support for families of children with 
                disabilities.
          [(2) To enhance the ability of the Federal Government 
        to--
                  [(A) identify Federal policies that 
                facilitate or impede family support for 
                families of children with disabilities, and 
                that are consistent with the principles in 
                subsection (c);
                  [(B) provide States with technical assistance 
                and information relating to the provision of 
                family support for families of children with 
                disabilities;
                  [(C) conduct an evaluation of the program of 
                grants to States; and
                  [(D) provide funding for model demonstration 
                and innovation projects.
  [(c) Policy.--It is the policy of the United States that all 
programs, projects, and activities receiving assistance under 
this part shall be family-centered and family-directed and 
shall be carried out in a manner consistent with the following 
principles:
          [(1) Family support for families of children with 
        disabilities must focus on the needs of the entire 
        family.
          [(2) Families of children with disabilities should be 
        supported in determining their needs and in making 
        decisions concerning necessary, desirable, and 
        appropriate services.
          [(3) Families should play decisionmaking roles in 
        policies and programs that affect the lives of such 
        families.
          [(4) Family needs change over time and family support 
        for families of children with disabilities must offer 
        options that are flexible and responsive to the unique 
        needs and strengths and cultural values of individual 
        families.
          [(5) Family support for families of children with 
        disabilities is proactive and not solely in response to 
        a crisis.
          [(6) Families must be supported in their efforts to 
        promote the integration and inclusion of their children 
        with disabilities into all aspects of community life.
          [(7) Family support for families of children with 
        disabilities should promote the use of existing social 
        networks, strengthen natural sources of support, and 
        help build connections to existing community resources 
        and services.
          [(8) Youth with disabilities should be involved in 
        decisionmaking about their own lives, consistent with 
        the unique strengths, resources, priorities, concerns, 
        abilities, and capabilities of each such youth.
          [(9) Services and supports must be provided in a 
        manner that demonstrates respect for individual 
        dignity, personal responsibility, self-determination, 
        personal preferences, and cultural differences of 
        families.
  [(d) Rule of Construction.--Nothing in this part shall be 
construed to prevent families from choosing an out-of-home 
placement for their children with disabilities, including 
institutional placement for such children.

[SEC. 703. DEFINITIONS.

  [For the purposes of this part, only the following 
definitions shall apply:
          [(1) Child with a disability.--The term ``child with 
        a disability'' means an individual who from birth 
        through 21 years of age meets the definition of 
        disability under paragraph (4).
          [(2) Council.--The term ``Council'' means an existing 
        Council, or a new Council, which is considered as a 
        State Policy Council for Families of Children with 
        Disabilities under section 707.
          [(3) Culturally competent.--The term ``culturally 
        competent'' means services, supports, or other 
        assistance that is conducted or provided in a manner 
        that--
                  [(A) is responsive to the beliefs, 
                interpersonal styles, attitudes, language, and 
                behaviors of those individuals receiving 
                services; and
                  [(B) has the greatest likelihood of ensuring 
                maximum participation of such individuals.
          [(4) Disability.--The term ``disability'' means--
                  [(A) in the case of an individual 6 years of 
                age or older, a significant physical or mental 
                impairment as defined pursuant to State policy 
                to the extent that such policy is established 
                without regard to type of disability; and
                  [(B) in the case of infants and young 
                children, birth to age 5, inclusive, a 
                substantial developmental delay or specific 
                congenital or acquired conditions with a high 
                probability of resulting in a disability if 
                services are not provided.
          [(5) Existing council.--The term ``existing Council'' 
        means an entity or a committee of an entity that--
                  [(A) is established by a State prior to the 
                date on which the State submits an application 
                for funding under this part;
                  [(B) has authority to advise the State with 
                respect to family support for families of 
                children with disabilities; and
                  [(C) may have the authority to carry out 
                other responsibilities and duties.
          [(6) Family.--The term ``family'' means a group of 
        interdependent persons residing in the same household 
        that consists of a child with a disability and one or 
        more of the following:
                  [(A) A mother, father, brother, sister or any 
                combination.
                  [(B) Extended blood relatives, such as a 
                grandparent, aunt, or uncle.
                  [(C) An adoptive parent.
                  [(D) One or more persons to whom legal 
                custody of a child with a disability has been 
                given by a court.
                  [(E) A person providing short-term foster 
                care that includes a family reunification plan 
                with the biological family.
                  [(F) A person providing long-term foster care 
                for a child with a disability.
        The term does not include employees who, acting in 
        their paid employment capacity, provide services to 
        children with disabilities in out-of-home settings such 
        as hospitals, nursing homes, personal care homes, board 
        and care homes, group homes, or other facilities.
          [(7) Family-centered and family-directed.--The term 
        ``family-centered and family-directed'' means, with 
        respect to a service or program, that the service or 
        program--
                  [(A) facilitates the full participation, 
                choice, and control by families of children 
                with disabilities in--
                          [(i) decisions relating to the 
                        supports that will meet the priorities 
                        of the family; and
                          [(ii) the planning, development, 
                        implementation, and evaluation of the 
                        statewide system of family support for 
                        families of children with disabilities;
                  [(B) responds to the needs of the entire 
                family of a child with a disability in a timely 
                and appropriate manner; and
                  [(C) is easily accessible to and usable by 
                families of children with disabilities.
          [(8) Family satisfaction.--The term ``family 
        satisfaction'' means the extent to which a service or 
        support meets a need, solves a problem, or adds value 
        for a family, as determined by the individual family.
          [(9) Family support for families of children with 
        disabilities.--The term ``family support for families 
        of children with disabilities''--
                  [(A) means supports, resources, services, and 
                other assistance provided to families of 
                children with disabilities that are designed 
                to--
                          [(i) support families in the efforts 
                        of such families to raise their 
                        children with disabilities in the 
                        family home;
                          [(ii) strengthen the role of the 
                        family as primary caregiver;
                          [(iii) prevent inappropriate and 
                        unwanted out-of-the-home placement and 
                        maintain family unity; and
                          [(iv) reunite families with children 
                        with disabilities who have been placed 
                        out of the home, whenever possible; and
                  [(B) includes--
                          [(i) service coordination that 
                        includes individualized planning and 
                        brokering for services with families in 
                        control of decisionmaking;
                          [(ii) goods and services, which may 
                        include specialized diagnosis and 
                        evaluation, adaptive equipment, respite 
                        care (in and out of the home), personal 
                        assistance services, homemaker or chore 
                        services, behavioral supports, 
                        assistive technology services and 
                        devices, permanency or future planning, 
                        home and vehicle modifications and 
                        repairs, equipment and consumable 
                        supplies, transportation, specialized 
                        nutrition and clothing, counseling 
                        services and mental health services for 
                        family members, family education or 
                        training services, communication 
                        services, crisis intervention, day care 
                        and child care for a child with a 
                        disability, supports and services for 
                        integrated and inclusive community 
                        activities, parent or family member 
                        support groups, peer support, sitter 
                        service or companion service, and 
                        education aids; and
                          [(iii) financial assistance, which 
                        may include discretionary cash 
                        subsidies, allowances, voucher or 
                        reimbursement systems, low-interest 
                        loans, or lines of credit.
          [(10) Integration and inclusion.--The term 
        ``integration and inclusion'' with respect to children 
        with disabilities and their families means--
                  [(A) the use of the same community resources 
                that are used by and available to other 
                individuals and families;
                  [(B) the full and active participation in the 
                same community activities and utilization of 
                the same community resources as individuals 
                without disabilities, living, learning, 
                working, and enjoying life in regular contact 
                with individuals without disabilities; and
                  [(C) having friendships and relationships 
                with individuals and families of their own 
                choosing.
          [(11) Lead entity.--The term ``lead entity'' means an 
        office or entity described in section 706.
          [(12) New council.--The term ``new Council'' means a 
        council that is established by a State, and considered 
        as the State Policy Council for Families of Children 
        with Disabilities, under section 707(a).
          [(13) Secretary.--The term ``Secretary'' means the 
        Secretary of Health and Human Services.
          [(14) Service coordination.--The term ``service 
        coordination''--
                  [(A) means those family-centered and family-
                directed activities that assist and enable 
                families to receive rights and procedural 
                safeguards and to gain access to social, 
                medical, legal, educational, and other supports 
                and services; and
                  [(B) includes--
                          [(i) follow-along services that 
                        assure, through a continuing 
                        relationship between a family of a 
                        child with a disability and an 
                        individual or entity, that the changing 
                        needs of the child and family are 
                        recognized and appropriately met;
                          [(ii) the coordination and monitoring 
                        of services provided to children with 
                        disabilities and their families;
                          [(iii) the provision of information 
                        to children with disabilities and their 
                        families about the availability of 
                        services and assistance to such 
                        children and their families in 
                        obtaining appropriate services; and
                          [(iv) the facilitation and 
                        organization of existing social 
                        networks, and natural sources of 
                        support, and community resources and 
                        services.
          [(15) Statewide system of family support.--The term 
        ``statewide system of family support for families of 
        children with disabilities'' means a family-centered 
        and family-directed, culturally competent, community-
        centered, comprehensive, statewide system of family 
        support for families of children with disabilities 
        developed and implemented by a State under this part 
        that--
                  [(A) addresses the needs of all families of 
                children with disabilities, including unserved 
                and underserved populations; and
                  [(B) addresses such needs without regard to 
                the age, type of disability, race, ethnicity, 
                or gender of such children or the particular 
                major life activity for which such children 
                need the assistance.
          [(16) Systems change activities.--The term ``systems 
        change activities'' means efforts that result in laws, 
        regulations, policies, practices, or organizational 
        structures--
                  [(A) that are family-centered and family-
                directed;
                  [(B) that facilitate and increase access to, 
                provision of, and funding for, family support 
                services for families of children with 
                disabilities; and
                  [(C) that otherwise accomplish the purposes 
                of this part.
          [(17) Unserved and underserved populations.--The term 
        ``unserved and underserved populations'' includes 
        populations such as individuals from racial and ethnic 
        minority backgrounds, economically disadvantaged 
        individuals, individuals with limited-English 
        proficiency, individuals from underserved geographic 
        areas (rural or urban), and specific groups of 
        individuals within the population of individuals with 
        disabilities, including individuals with disabilities 
        attributable to physical impairment, mental impairment, 
        or a combination of physical and mental impairments.

[SEC. 704. GRANTS TO STATES.

  [(a) In General.--The Secretary shall make grants to States 
on a competitive basis, in accordance with the provisions of 
this part, to support systems change activities designed to 
assist States to develop and implement, or expand and enhance, 
a statewide system of family support for families of children 
with disabilities that accomplishes the purposes described in 
section 702.
  [(b) Award Period and Grant Limitation.--No grant shall be 
awarded for a period greater than 3 years. A State shall be 
eligible for not more than one grant.
  [(c) Amount of Grants.--
          [(1) Grants to states.--
                  [(A) Federal matching share.--From amounts 
                appropriated under section 716(a), the 
                Secretary shall pay to each State that has an 
                application approved under section 705, for 
                each year of the grant period, an amount that 
                is--
                          [(i) equal to 75 percent of the cost 
                        of the systems change activities to be 
                        carried out by the State; and
                          [(ii) not less than $200,000 and not 
                        more than $500,000.
                  [(B) Non-federal share.--The non-Federal 
                share of payments under this paragraph may be 
                in cash or in kind fairly evaluated, including 
                planned equipment or services.
          [(2) Grants to territories.--From amounts 
        appropriated under section 716(a) for any fiscal year, 
        the Secretary shall pay to each territory that has an 
        application approved under section 705 not more than 
        $100,000.
          [(3) Calculation of amounts.--The Secretary shall 
        calculate a grant amount described in paragraph (1) or 
        (2) on the basis of the following:
                  [(A) The amounts available for making grants 
                under this section.
                  [(B) The child population of the State or 
                territory concerned.
          [(4) Definitions.--As used in this subsection:
                  [(A) State.--The term ``State'' means each of 
                the 50 States of the United States, the 
                District of Columbia, and the Commonwealth of 
                Puerto Rico.
                  [(B) Territory.--The term ``territory'' means 
                the United States Virgin Islands, Guam, 
                American Samoa, the Commonwealth of the 
                Northern Mariana Islands, or the Republic of 
                Palau (upon the entry into force and effect of 
                the Compact of Free Association between the 
                United States and the Republic of Palau).
  [(d) Priority for Previously Participating States.--Amounts 
appropriated for purposes of carrying out the provisions of 
this section in each of the 2 fiscal years succeeding the 
fiscal year in which amounts are first appropriated for such 
purposes shall first be made available to a State that--
          [(1) received a grant under this section during the 
        fiscal year preceding the fiscal year concerned; and
          [(2) is making significant progress in accordance 
        with section 710.
  [(e) Priorities for Distribution.--To the extent practicable, 
the Secretary shall award grants to States under this section 
in a manner that--
          [(1) is geographically equitable; and
          [(2) distributes the grants among States that have 
        differing levels of development of statewide systems of 
        family support for families of children with 
        disabilities.

[SEC. 705. APPLICATION.

  [A State that desires to receive a grant under this part 
shall submit an application to the Secretary that contains the 
following information and assurances:
          [(1) Family-centered and family-directed approach.--
        An assurance that the State will use funds made 
        available under this part to accomplish the purposes 
        described in section 702 and the goals, objectives, and 
        family-centered outcomes described in section 709(b) by 
        carrying out systems change activities in partnership 
        with families and in a manner that is family-centered 
        and family-directed.
          [(2) Designation of the lead entity.--Information 
        identifying the lead entity, and evidence documenting 
        the abilities of such entity.
          [(3) State policy council for families of children 
        with disabilities.--An assurance of the following:
                  [(A) The State has designated or established 
                Council that meets the criteria set forth in 
                section 707.
                  [(B) The lead entity will seek and consider 
                on a regular and ongoing basis advice from the 
                Council regarding the development and 
                implementation of the strategic plan under 
                section 709, and other policies and procedures 
                of general applicability pertaining to the 
                provision of family support for families of 
                children with disabilities in the State.
                  [(C) The lead entity will include, in its 
                annual progress reports, a summary of advice 
                provided by the Council, including 
                recommendations from the annual report of the 
                Council and the response of the lead entity to 
                such advice and recommendations.
                  [(D) The lead entity will transmit to the 
                Council any other plans, reports, and other 
                information required under this part.
          [(4) Family involvement.--A description of the 
        following:
                  [(A) The nature and extent of the involvement 
                of families of children with disabilities and 
                individuals with disabilities in the 
                development of the application.
                  [(B) Strategies for actively involving 
                families of children with disabilities and 
                individuals with disabilities in the 
                development, implementation, and evaluation of 
                the statewide system of family support for 
                families of children with disabilities.
                  [(C) Strategies and special outreach 
                activities that will be undertaken to ensure 
                the active involvement of families of children 
                with disabilities who are members of unserved 
                and underserved populations.
                  [(D) Strategies for actively involving 
                families of children with disabilities who use 
                family support services in decisions relating 
                to such services.
          [(5) Agency involvement.--A description of the nature 
        and extent of involvement of various State agencies or 
        units within State agencies in the preparation of the 
        application and the continuing role of each agency in 
        the statewide system of family support for families of 
        children with disabilities.
          [(6) State resources.--A description of the State 
        resources and other resources that are available to 
        commit to the statewide system of family support for 
        families of children with disabilities.
          [(7) Unmet needs.--A description of unmet needs for 
        family support for families of children with 
        disabilities within the State.
          [(8) Preliminary plan.--A preliminary plan that 
        contains information on the program to be carried out 
        under the grant with respect to the goals and 
        objectives of the State for the program and the 
        activities that the State plans to carry out under the 
        program (including the process for appointing 
        individuals to the Council) and that is consistent with 
        the purposes of this part.
          [(9) Activities.--An assurance that, except for the 
        first year of the grant, the State shall expend not 
        less than 65 percent of the funds made available to a 
        State under this part for grants and contracts to 
        conduct the activities described in section 708.
          [(10) Limit on administrative costs.--An assurance 
        that the lead entity that receives funding under this 
        part in any fiscal year shall use not more than 5 
        percent of such funds in such year for administrative 
        expenses. Such administrative expenses shall not 
        include expenses related to the activities of the 
        Council.
          [(11) Strategic plan.--A description of the measures 
        that will be taken by the State to develop a strategic 
        plan in accordance with section 709.
          [(12) Evaluation.--An assurance that the State will 
        conduct an annual evaluation of the statewide system of 
        family support for families of children with 
        disabilities in accordance with section 710.
          [(13) Coordination with state and local councils.--An 
        assurance that the lead entity will coordinate the 
        activities funded through a grant made under this part 
        with the activities carried out by other relevant 
        councils within the State.
          [(14) Supplement other funds.--An assurance, with 
        respect to amounts received under a grant, of the 
        following:
                  [(A) Such grant will be used to supplement 
                and not supplant amounts available from other 
                sources that are expended for programs of 
                family support for families of children with 
                disabilities, including the provision of family 
                support.
                  [(B) Such grant will not be used to pay a 
                financial obligation for family support for 
                families of children with disabilities that 
                would have been paid with amounts available 
                from other sources if amounts under such grant 
                had not been available.
          [(15) Other information and assurances.--Such other 
        information and assurances as the Secretary may 
        reasonably require.

[SEC. 706. DESIGNATION OF THE LEAD ENTITY.

  [(a) Designation.--The Chief Executive Officer of a State 
that desires to receive a grant under section 704, shall 
designate the office or entity (referred to in this part as the 
``lead entity'') responsible for--
          [(1) submitting the application under section 705 on 
        behalf of the State;
          [(2) administering and supervising the use of the 
        amounts made available under the grant;
          [(3) coordinating efforts related to and supervising 
        the preparation of the application;
          [(4) coordinating the planning, development, 
        implementation (or expansion and enhancement), and 
        evaluation of a statewide system of family support 
        services for families of children with disabilities 
        among public agencies and between public agencies and 
        private agencies, including coordinating efforts 
        related to entering into interagency agreements; and
          [(5) coordinating efforts related to the meaningful 
        participation by families in activities carried out 
        under a grant awarded under this part.
  [(b) Qualifications.--In designating the lead entity, the 
Chief Executive Officer may designate--
          [(1) an office of the Chief Executive Officer;
          [(2) a commission appointed by the Chief Executive 
        Officer;
          [(3) a public agency;
          [(4) a council established under Federal or State 
        law; or
          [(5) another appropriate office, agency, or entity.
  [(c) Capabilities of the Lead Entity.--The State shall 
provide, in accordance with the requirements of section 705, 
evidence that the lead entity has the capacity--
          [(1) to promote a statewide system of family support 
        for families of children with disabilities throughout 
        the State;
          [(2) to promote and implement systems change 
        activities;
          [(3) to maximize access to public and private funds 
        for family support services for families of children 
        with disabilities;
          [(4) to implement effective strategies for capacity 
        building, family and professional training, and access 
        to and funding for family support services for families 
        of children with disabilities across agencies;
          [(5) to promote and facilitate the implementation of 
        family support services for families of children with 
        disabilities that are family-centered and family-
        directed, and flexible, and that provide families with 
        the greatest possible decisionmaking authority and 
        control regarding the nature and use of services and 
        supports;
          [(6) to promote leadership by families in planning, 
        policy development, implementation, and evaluation of 
        family support services for families of children with 
        disabilities, and parent-professional partnerships; and
          [(7) to promote and develop interagency coordination 
        and collaboration.

[SEC. 707. STATE POLICY COUNCIL FOR FAMILY SUPPORT FOR FAMILIES OF 
                    CHILDREN WITH DISABILITIES.

  [(a) Designation or Establishment.--A State that desires to 
receive financial assistance under this part shall, prior to 
the receipt of funds under this part, designate an existing 
Council, or establish a new Council, to be considered as a 
State Policy Council for Families of Children with 
Disabilities.
  [(b) Use of Existing Council.--
          [(1) In general.--To the extent that a State has an 
        existing Council, the existing Council shall be 
        considered in compliance with this section if the 
        existing Council meets the requirements under paragraph 
        (2).
          [(2) Requirements.--An existing Council shall--
                  [(A) include a majority of members who are 
                family members of children with disabilities 
                and who are children with disabilities (from 
                age 18 to 21);
                  [(B) in the case in which the existing 
                Council does not represent the full range of 
                families and individuals described in 
                subsection (d)(1), adopt strategies that will 
                ensure the full participation of such families 
                and individuals in all activities carried out 
                by the Council; and
                  [(C) carry out functions and authorities that 
                are comparable to the functions and authorities 
                described in subsections (e) through (h).
          [(3) Documentation of compliance.--Any State that has 
        an existing Council shall include in a grant 
        application submitted under section 705 and in 
        subsequent annual progress reports submitted to the 
        Secretary under section 710, a description of the 
        measures that are being taken or that are planned, to 
        ensure that the existing Council of the State complies 
        with this section.
  [(c) Appointments to New Council.--
          [(1) Members.--To the extent that a State establishes 
        a new Council, members of the new Council shall be 
        appointed by the Chief Executive Officer of the State 
        or the appropriate official within the State 
        responsible for making appointments in accordance with 
        subsection (d). The appointing authority shall select 
        members after soliciting recommendations from the State 
        Developmental Disabilities Council, parent or family 
        organizations, and other organizations representing the 
        full range of disabilities covered under this part. The 
        appointing authority shall ensure that the membership 
        of the new Council reasonably represents the population 
        of the State and shall establish guidelines for the 
        terms of the members of the new Council.
          [(2) Chairperson.--The new Council shall elect a 
        member of the new Council to serve as the Chairperson 
        of the new Council. The Chairperson shall be a family 
        member, as described in subsection (d)(1).
  [(d) Composition.--The new Council shall be composed of--
          [(1) a majority of members who are--
                  [(A) individuals who are family members of 
                children with disabilities, are eligible for 
                family support, and represent the diversity of 
                families within the State, including those 
                families from unserved and underserved 
                populations; and
                  [(B) children with disabilities, from age 18 
                to 21, and are representative of the 
                demographics of the State;
          [(2) members--
                  [(A) who are from State agencies with 
                significant responsibility for the provision 
                of, or payment for, family support services to 
                families of children with disabilities, and who 
                have sufficient authority to engage in policy 
                planning and implementation on behalf of such 
                agencies; and
                  [(B) who are from the office of the Chief 
                Executive Officer of the State with 
                responsibility with respect to budget and 
                finance; and
          [(3) such additional members as the appointing 
        authority considers appropriate.
  [(e) Functions.--The new Council shall--
          [(1) establish formal policies regarding the 
        operation of the new Council;
          [(2) advise and assist the lead entity in the 
        performance of responsibilities described in section 
        706(a), particularly the promotion of interagency 
        agreements and the promotion of meaningful 
        participation by families in all aspects of the 
        statewide system of family support for families of 
        children with disabilities;
          [(3) advise and assist State agencies in the 
        development of policies and procedures relating to the 
        provision of family support for families of children 
        with disabilities in the State;
          [(4) advise and assist the lead entity in the 
        development of all aspects of a strategic plan under 
        section 709, including--
                  [(A) the mission, purpose, and principles of 
                the statewide system of family support for 
                families of children with disabilities;
                  [(B) the statement of family-centered 
                outcomes;
                  [(C) the goals, objectives, and activities;
                  [(D) the quality improvement or quality 
                enhancement system;
                  [(E) the appeals process;
                  [(F) the eligibility criteria to be used for 
                all programs, projects, and activities carried 
                out under this part;
                  [(G) the analysis of the extent to which 
                family support for families of children with 
                disabilities is defined as a benefit and not as 
                income; and
                  [(H) the approach to the evaluation of the 
                statewide system of family support for families 
                of children with disabilities;
          [(5) advise and assist the lead entity in the 
        implementation of systems change activities;
          [(6) advise and assist the lead entity in assessing 
        family satisfaction with the statewide system of family 
        support for families of children with disabilities;
          [(7) review, analyze, and comment on the strategic 
        plan and updates to the plan, progress reports, and 
        annual budgets;
          [(8) advise and assist the lead entity in the 
        identification of Federal and State barriers that 
        impede the development of a statewide system of family 
        support for families of children with disabilities; and
          [(9) prepare and submit to the Chief Executive 
        Officer of the State, the State legislature, and to the 
        Secretary an annual report on the status of family 
        support services for families of children with 
        disabilities, and make such report available to the 
        public.
  [(f) Hearings and Forums.--The new Council is authorized to 
hold such hearings and forums as the new Council may determine 
to be necessary to carry out the duties of the new Council.
  [(g) Conflict of Interest.--No member of the new Council 
shall cast a vote on any matter that would provide direct 
financial benefit to such member or otherwise give the 
appearance of a conflict of interest under applicable State 
law.
  [(h) Compensation and Expenses.--The new Council may, 
consistent with State law, use such resources to reimburse 
members of the new Council for reasonable and necessary 
expenses of attending the new Council meetings and performing 
Council duties (including child care and personal assistance 
services), and to pay compensation to a member of the new 
Council, if such member is not employed or must forfeit wages 
from other employment, for each day the member is engaged in 
performing Council duties.

[SEC. 708. AUTHORIZED ACTIVITIES.

  [(a) In General.--A State that receives a grant under section 
704 may use the funds made available through the grant to carry 
out systems change activities, which accomplish the purposes 
described in section 702, such as the following activities:
          [(1) Training and technical assistance.--The State 
        may support training and technical assistance 
        activities for family members, service providers, 
        community members, professionals, members of the 
        Council, students and others that will do the 
        following:
                  [(A) Increase family participation, choice, 
                and control in the provision of family support 
                for families of children with disabilities.
                  [(B) Promote partnerships with families of 
                children with disabilities at all levels of the 
                service system.
                  [(C) Develop or strengthen family-centered 
                and family-directed approaches to services, 
                including service coordination services, 
                service planning services, and respite care 
                services.
                  [(D) Assist families of children with 
                disabilities in accessing natural and community 
                supports and in obtaining benefits and 
                services.
          [(2) Interagency coordination.--The State may support 
        activities that conduct the following:
                  [(A) Identification and coordination of 
                Federal and State policies, resources, and 
                services, relating to the provision of family 
                support services for families of children with 
                disabilities, including entering into 
                interagency agreements.
                  [(B) Interagency work groups to enhance 
                public funding options and coordinate access to 
                funding for family support services for 
                families of children with disabilities, with 
                special attention to the issues of family 
                involvement in the identification, planning, 
                use, delivery, and evaluation of such services.
                  [(C) Documentation and dissemination of 
                information about interagency activities that 
                promote coordination with respect to family 
                support services for families of children with 
                disabilities, including evidence of increased 
                participation of State and local health, 
                maternal and child health, social service, 
                mental health, mental retardation and 
                developmental disabilities, child protection, 
                education, early intervention, developmental 
                disabilities councils, agencies, and 
                departments.
          [(3) Local or regional councils.--The State may 
        support the development or enhancement of local or 
        regional councils to review the status of family 
        support for families of children with disabilities in 
        the local or regional area, to advise and assist with 
        the planning, development, implementation, and 
        evaluation of family support for families of children 
        with disabilities in such local or regional area, and 
        to provide recommendations to the State regarding 
        improvements and plans.
          [(4) Outreach.--The State may conduct outreach 
        activities to locate families who are eligible for 
        family support for families of children with 
        disabilities and to identify groups who are unserved or 
        underserved. Such activities may involve the creation 
        or maintenance of, support of, or provision of, 
        assistance to statewide and community parent 
        organizations, and organizations that provide family 
        support to families of children with disabilities.
          [(5) Policy studies.--The State may support policy 
        studies that relate to the development and 
        implementation, or expansion and enhancement, of a 
        statewide system of family support for families of 
        children with disabilities. Such studies may address 
        issues regarding eligibility and access to services.
          [(6) Hearings and forums.--The State may conduct 
        hearings and forums to solicit input from families of 
        children with disabilities regarding family support 
        programs, policies, and plans for such families. Such 
        hearings and forums may be conducted in collaboration 
        with other statewide councils.
          [(7) Public awareness and education.--The State may 
        develop and disseminate information relating to family 
        support for families of children with disabilities 
        designed to provide information to such families, 
        parent groups and organizations, public and private 
        agencies that are in contact with children with 
        disabilities and families of such children, students, 
        policymakers, and the public. Such information may 
        relate to the nature, cost, and availability of, and 
        accessibility to, family support for families of 
        children with disabilities, the impact of family 
        support for families of children with disabilities on 
        other benefits, and the efficacy of family support for 
        families of children with disabilities with respect to 
        enhancing the quality of family life.
          [(8) Needs assessment.--The State may conduct a needs 
        assessment, which may, in part, be based on existing 
        State data.
          [(9) Program data.--The State may support the 
        compilation and evaluation of appropriate data related 
        to the statewide system of family support for families 
        of children with disabilities.
          [(10) Pilot demonstration projects.--The State may 
        support pilot demonstration projects to demonstrate new 
        approaches to the provision of family support for 
        families of children with disabilities. Such projects 
        may include the demonstration of family-centered and 
        family-directed service coordination, approaches to 
        improve access to services, including independent 
        service coordination, peer support networks, and 
        voucher programs.
          [(11) Other activities.--The State may support other 
        systems change activities that accomplish the purposes 
        described in section 702.
  [(b) Special Rule.--In carrying out activities authorized 
under this part, a State shall ensure that such programs and 
activities address the needs of families who are economically 
disadvantaged.

[SEC. 709. STRATEGIC PLAN.

  [(a) In General.--Not later than 6 months after the date on 
which assistance is received by a State under this part, the 
lead entity of the State, in conjunction with the Council, 
shall prepare and submit to the Secretary a strategic plan 
designed to achieve the purposes and policy of this part.
  [(b) Contents.--The strategic plan shall include--
          [(1) a statement of the mission, purpose, and 
        principles of the statewide system of family support 
        for families of children with disabilities in the 
        State;
          [(2) a statement of family-centered outcomes to be 
        achieved by the statewide system of family support for 
        families of children with disabilities;
          [(3) specific goals and objectives for developing and 
        implementing, or expanding and improving, the system 
        for providing family support services for families of 
        children with disabilities, and for achieving the 
        family-centered outcomes;
          [(4) systemic approaches for accomplishing the 
        objectives and achieving the family-centered outcomes, 
        including interagency coordination and cooperation, 
        that builds upon state-of-the-art practices and 
        research findings;
          [(5) a description of the specific programs, 
        projects, and activities funded under this part and the 
        manner in which the programs, projects, and activities 
        accomplish the objectives and achieve the family-
        centered outcomes;
          [(6) a description of an ongoing quality improvement 
        or quality enhancement system, which utilizes 
        information from ongoing measurements of the extent to 
        which family-centered outcomes are achieved, to improve 
        the system;
          [(7) a description of an appeals process that will be 
        used in resolving any disputes families of children 
        with disabilities may have regarding the determination 
        of eligibility or the provision of family support 
        services to the family or to the child with a 
        disability;
          [(8) a description of the eligibility criteria to be 
        used to carry out programs, projects, and activities 
        under this part that includes all eligible families;
          [(9) an analysis of the extent to which family 
        support for a family of a child with a disability is 
        defined as a benefit and not as income; and
          [(10) a description of the plan to conduct an annual 
        evaluation of the statewide system of family support 
        for families of children with disabilities, in 
        conjunction with the Council, to improve such statewide 
        system and to document progress as required by section 
        710.
  [(c) Period and Updates.--The strategic plan shall cover the 
period of the grant and shall be reviewed and updated on an 
annual basis to reflect actual experience and family 
satisfaction information over the preceding year and input from 
the Council, families of children with disabilities, and other 
interested parties.
  [(d) Recommendations.--Prior to developing the strategic 
plan, the State shall solicit input and recommendations from 
interested members of the public, either by holding public 
hearings or through an alternative method or methods determined 
by the lead entity in consultation with the Council. The lead 
entity shall also obtain the comments and recommendations of 
the Council. The lead entity, in conjunction with the Council, 
shall consider the recommendations and attempt to reach a 
consensus with respect to such recommendations. If the lead 
entity and the Council are unable to reach a consensus, the 
lead entity shall include a written explanation of the reason a 
consensus was not reached in the strategic plan.
  [(e) Comment.--The State shall develop a procedure for 
ensuring ongoing comment from the Council.
  [(f) Dissemination.--The State shall widely disseminate the 
strategic plan to families of children with disabilities, 
parent organizations, and other interested persons.
  [(g) Construction.--Nothing in this section shall be 
construed to prevent a State from using an existing statewide 
strategic plan or parts thereof to meet the requirements of 
this section as long as such plan or the applicable parts 
thereof are comparable to the specifications of this section.

[SEC. 710. PROGRESS CRITERIA AND REPORTS.

  [(a) Guidelines.--The Secretary shall develop guidelines to 
be used in assessing the extent to which a State that received 
a grant under section 704 is making significant progress in 
developing and implementing, or expanding and enhancing, a 
statewide system of family support for families of children 
with disabilities consistent with the purposes of this part.
  [(b) Progress Reports.--A State that receives a grant under 
section 704 shall submit annually to the Secretary a report 
that documents progress in developing and implementing, or 
expanding and enhancing, a statewide system of family support 
for families of children with disabilities consistent with this 
part. Such report shall include--
          [(1) the results of the annual evaluation of the 
        statewide system of family support for families of 
        children with disabilities;
          [(2) a description of the unanticipated problems with 
        the achievement of the goals, objectives, and family-
        centered outcomes described in the application or 
        strategic plan and the measures the State has taken to 
        rectify such problems;
          [(3) for the annual progress report concerning the 
        first year of the grant period, the strategic plan 
        developed by the State during the first year; and
          [(4) for the annual progress report concerning 
        subsequent years of the grant period, the updated 
        strategic plan.

[SEC. 711. ADMINISTRATIVE PROVISIONS.

  [(a) Evaluation of Grant Applications.--
          [(1) Panels.--The Secretary shall convene panels of 
        experts who are competent, by virtue of their training 
        or experience, to evaluate grant applications under 
        this part.
          [(2) Composition of panels.--Panels shall be composed 
        of a majority of family members of children with 
        disabilities and individuals with disabilities, and may 
        include service providers, State administrative 
        personnel, and professionals. Panels shall include a 
        majority of individuals who are not Federal employees.
          [(3) Expenses and fees of the panel.--A member of the 
        Panel who is not a Federal employee shall receive 
        travel, per diem and consultant fees not to exceed the 
        rate provided to other consultants used by the 
        Secretary. The Secretary may use funds available under 
        section 716 to pay expenses and fees of a member of a 
        Panel who is not a Federal employee.
  [(b) Provision of Information.--To assist the Secretary in 
carrying out the responsibilities of the Secretary under this 
section, the Secretary may require States to provide relevant 
information, including recommendations and relevant reports of 
the Council.
  [(c) Appeals.--The Secretary shall establish appeals 
procedures for States that are found in noncompliance with the 
provisions of this part as the result of failure to supply 
information required under section 705 or 710. The Secretary 
shall take into consideration the comments of the Council.
  [(d) Effect on Other Assistance.--This part may not be 
construed as authorizing a Federal or State agency to reduce 
medical or other assistance available, or to alter eligibility, 
under any Federal law.
  [(e) Unobligated Funds.--Any amount paid to a State for a 
fiscal year and remaining unobligated at the end of such year 
shall remain available to such State for the next fiscal year 
for the purposes for which such amount was paid.

[SEC. 712. TECHNICAL ASSISTANCE.

  [(a) In General.--The Secretary shall make grants, or enter 
into contracts or cooperative agreements, with appropriate 
public or private agencies and organizations, including 
institutions of higher education, with documented experience, 
expertise, and capacity, for the purpose of providing technical 
assistance and information with respect to the development and 
implementation, or expansion and enhancement, of a statewide 
system of family support for families of children with 
disabilities.
  [(b) Purpose.--With respect to States receiving assistance 
under this part, the technical assistance and information 
described under subsection (a) shall be provided to the State 
agency designated as the lead entity, the Council, family 
members of children with disabilities, organizations, service 
providers, and policymakers involved with children with 
disabilities and their families. Such technical assistance 
shall also be available to States that do not receive 
assistance under this part. Such technical assistance and 
information shall--
          [(1) facilitate effective systems change activities;
          [(2) promote effective approaches to the development 
        and implementation, or expansion and enhancement of, 
        the statewide systems of family support for families of 
        children with disabilities that increase access to, 
        funding for, and awareness of family support for 
        families of children with disabilities;
          [(3) promote partnerships with families at all levels 
        of the service system;
          [(4) foster awareness and understanding of Federal, 
        State, and local laws, regulations, policies, 
        practices, procedures, and organizational structures, 
        that facilitate, and overcome barriers to, funding for, 
        and access to family support for families of children 
        with disabilities;
          [(5) foster the development and replication of 
        effective approaches to strategic plan development, 
        interagency coordination, training, outreach to 
        underserved groups, and public awareness activities;
          [(6) facilitate service delivery capacity, training, 
        and the improvement of data collection and evaluation 
        systems;
          [(7) promote effective approaches to the development 
        of family-centered and family-directed services, 
        including approaches to the development and measurement 
        of family-centered outcomes described in section 
        709(b)(2), and the assessment of family satisfaction; 
        and
          [(8) coordinate and facilitate an annual meeting of 
        the chairpersons of the Councils.
  [(c) Request for Technical Assistance.--A request for 
technical assistance by a lead entity in a State receiving 
assistance under this part shall be made in conjunction with 
the Council.
  [(d) Reports to the Secretary.--An entity providing the 
technical assistance under this section shall submit periodic 
reports to the Secretary regarding Federal policies and 
procedures identified within the States that facilitate or 
impede the delivery of family support to families of children 
with disabilities. The report shall include recommendations to 
the Secretary regarding the delivery of services, coordination 
with other programs, and integration of the policies and 
principles described in section 702 in other Federal 
legislation.

[SEC. 713. EVALUATION.

  [(a) In General.--The Secretary shall make grants, or enter 
into contracts or cooperative agreements, with appropriate 
public or private agencies and organizations, including 
institutions of higher education, with documented experience, 
expertise, and capacity for the purpose of conducting a 
national evaluation of the program of grants to States 
authorized by this part.
  [(b) Purpose.--The purpose of an evaluation under subsection 
(a) shall be to assess the status and effects of State efforts 
to develop and implement, or expand and enhance, statewide 
systems of family support for families of children with 
disabilities in a manner consistent with the provisions of this 
part, particularly in terms of the impact of such efforts on 
families of children with disabilities, and to recommend 
amendments to this part that are necessary to assist States to 
fully accomplish the purposes of this part. The Secretary or 
recipient of assistance under this section shall work with the 
States to consider and develop an information system designed 
to report and compile, from information provided by the States, 
including the Council, a qualitative and quantitative 
description of the impact of the program of grants to States 
authorized by this part on--
          [(1) families of children with disabilities, 
        including families from ethnic and racial minority 
        backgrounds;
          [(2) access to and funding for family support for 
        families of children with disabilities; and
          [(3) the involvement of families at all levels of the 
        service system.
  [(c) Report to Congress.--Not later than 2\1/2\ years after 
the date of enactment of this part, the Secretary shall prepare 
and submit to the appropriate committees of Congress a report 
concerning the results of the evaluation conducted under this 
section.
  [(d) Conflict of Interest.--The Secretary shall assure that a 
recipient of a grant, contract, or cooperative agreement under 
this section is independent from, and free from, any financial 
or personal relationships with the recipient of a grant, 
contract, or cooperative agreement selected to provide 
technical assistance under section 712.

[SEC. 714. PROJECTS OF NATIONAL SIGNIFICANCE.

  [(a) Study by the Secretary.--The Secretary shall review 
Federal programs to determine the extent to which such programs 
facilitate or impede access to, provision of, and funding for 
family support for families of children with disabilities, 
consistent with the policies described in section 702.
  [(b) Demonstration and Innovation Projects.--The Secretary 
shall make grants or enter into contracts for projects of 
national significance to support the development of national 
and State policies and practices related to the development and 
implementation, or expansion and enhancement, of family-
centered and family-directed systems of family support for 
families of children with disabilities.

[SEC. 715. CONSTRUCTION.

  [Notwithstanding any other provision of this title, nothing 
in parts A through H of this title shall be construed to apply 
to this part.

[SEC. 716. AUTHORIZATION OF APPROPRIATIONS.

  [(a) In General.--There are authorized to be appropriated to 
carry out this part, $10,000,000 for fiscal year 1995, and such 
sums as may be necessary for each of the fiscal years 1996 and 
1997.
  [(b) Reservation.--
          [(1) In general.--Except as provided in paragraph 
        (2), the Secretary shall reserve for each fiscal year 
        10 percent, or $600,000 (whichever is greater), of the 
        amount appropriated pursuant to the authority of 
        subsection (a) to carry out--
                  [(A) section 712, with respect to the 
                provision of technical assistance and 
                information to States;
                  [(B) section 713, with respect to the conduct 
                of the evaluations;
                  [(C) section 711(a), with respect to the 
                evaluation of grant applications; and
                  [(D) section 714, with respect to the conduct 
                of projects of national significance.
          [(2) Special rule.--The Secretary shall only use 
        funds reserved under paragraph (1) for a fiscal year to 
        carry out section 714 for such year if the amount of 
        funds reserved under such paragraph for such fiscal 
        year is $700,000 or greater.]

                       PART A--GENERAL PROVISIONS

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

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

                       Part A--General Provisions

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

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

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

             Part C--Infants and Toddlers With Disabilities

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

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

    Sec. 651. Purpose of part.
    Sec. 652. Eligibility for financial assistance.

   SUBPART 1--GENERAL PROVISIONS AND NATIONAL RESEARCH AND IMPROVEMENT 
                               ACTIVITIES

    Sec. 661. Comprehensive plan.
    Sec. 662. Priorities.
    Sec. 663. Peer review.
    Sec. 664. Eligible applicants.
    Sec. 665. Applicant and recipient responsibilities.
    Sec. 666. Indirect costs.
    Sec. 667. Program evaluation.
    Sec. 668. National assessment.
    Sec. 669. Authorization of appropriations.

                    SUBPART 2--PROFESSIONAL DEVELOPMENT

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

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

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

                        SUBPART 4--PARENT TRAINING

    Sec. 691. Grants for parent training and information centers.
    Sec. 692. Technical assistance for parent training and information 
              centers.
    Sec. 693. Authorization of appropriations.

  (c) Findings.--The Congress finds the following:
          (1) Disability is a natural part of the human 
        experience and in no way diminishes the right of 
        individuals to participate in or contribute to society. 
        Improving educational results for children with 
        disabilities is an essential element of our national 
        policy of ensuring equality of opportunity, full 
        participation, independent living, and economic self-
        sufficiency for individuals with disabilities.
          (2) Before the date of the enactment of the Education 
        for All Handicapped Children Act of 1975 (Public Law 
        94-142)--
                  (A) the special educational needs of children 
                with disabilities were not being fully met;
                  (B) more than one-half of the children with 
                disabilities in the United States did not 
                receive appropriate educational services that 
                would enable such children to have full 
                equality of opportunity;
                  (C) 1,000,000 of the children with 
                disabilities in the United States were excluded 
                entirely from the public school system and did 
                not go through the educational process with 
                their peers;
                  (D) there were many children with 
                disabilities throughout the United States 
                participating in regular school programs whose 
                disabilities prevented such children from 
                having a successful educational experience 
                because their disabilities were undetected; and
                  (E) because of the lack of adequate services 
                within the public school system, families were 
                often forced to find services outside the 
                public school system, often at great distance 
                from their residence and at their own expense.
          (3) Since the enactment and implementation of the 
        Education for All Handicapped Children Act of 1975, 
        this Act has been successful in ensuring children with 
        disabilities and the families of such children access 
        to a free appropriate public education and in improving 
        educational results for children with disabilities.
          (4) However, the implementation of this Act has been 
        impeded by low expectations, and an insufficient focus 
        on applying replicable research on proven methods of 
        teaching and learning for children with disabilities.
          (5) 20 years of research and experience has 
        demonstrated that the education of children with 
        disabilities can be made more effective by--
                  (A) having high expectations for such 
                children and ensuring their access in the 
                general curriculum to the maximum extent 
                possible;
                  (B) ensuring that families of such children 
                have meaningful opportunities to participate in 
                the education of their children at school and 
                at home;
                  (C) coordinating this Act with other local, 
                State, and Federal school improvement efforts 
                in order to ensure that such children benefit 
                from such efforts and that special education 
                can become a service for such children rather 
                than a place where they are sent;
                  (D) providing appropriate special education 
                and related services and aids and supports in 
                the regular classroom to such children, 
                whenever appropriate;
                  (E) supporting high-quality, intensive 
                professional development for all personnel who 
                work with such children in order to ensure that 
                they have the skills and knowledge necessary to 
                enable them--
                          (i) to meet developmental goals and, 
                        to the maximum extent possible, those 
                        challenging expectations that have been 
                        established for all children; and
                          (ii) to be prepared to lead 
                        productive, independent, adult lives, 
                        to the maximum extent possible;
                  (F) providing incentives for whole-school 
                approaches and early intervention to reduce the 
                need to label children as disabled in order to 
                address their learning needs; and
                  (G) focusing resources on teaching and 
                learning while reducing paperwork and 
                requirements that do not assist in improving 
                educational results.
          (6) While States and local educational agencies are 
        responsible for providing an education for all children 
        with disabilities, it is in the national interest that 
        the Federal Government have a role in assisting State 
        and local efforts to educate children with disabilities 
        in order to improve results for such children and to 
        ensure equal protection of the law.
          (7)(A) The Federal Government must be responsive to 
        the growing needs of an increasingly more diverse 
        society. A more equitable allocation of resources is 
        essential for the Federal Government to meet its 
        responsibility to provide an equal educational 
        opportunity for all individuals.
          (B) America's racial profile is rapidly changing. 
        While the rate of increase for white Americans is 3.2 
        percent, the rate of increase for racial and ethnic 
        minorities is much higher: 38.6 percent for Hispanics, 
        14.6 percent for African-Americans, and 40.1 percent 
        for Asians and other ethnic groups.
          (C) By the year 2000, this Nation will have 
        260,000,000 people, one of every three of whom will be 
        either African-American, Hispanic, or Asian-American.
          (D) Taken together as a group, it is a more frequent 
        phenomenon for minorities to comprise the majority of 
        public school students. Large city school populations 
        are overwhelmingly minority, e.g., Miami, 71 percent; 
        Philadelphia, 73 percent; Baltimore, 80 percent.
          (E) Recruitment efforts within special education at 
        the level of preservice, continuing education, and 
        practice must focus on bringing larger numbers of 
        minorities into the profession in order to provide 
        appropriate practitioner knowledge, role models, and 
        sufficient manpower to address the clearly changing 
        demography of special education.
          (F) The limited English proficient population is the 
        fastest growing in our Nation, and the growth is 
        occurring in many parts of our Nation. In the Nation's 
        2 largest school districts, limited-English students 
        make up almost half of all students initially entering 
        school at the kindergarten level. Studies have 
        documented apparent discrepancies in the levels of 
        referral and placement of limited-English proficient 
        children in special education. The Department of 
        Education has found that services provided to limited-
        English proficient students often do not respond 
        primarily to the pupil's academic needs. These trends 
        pose special challenges for special education in the 
        referral, assessment, and services for our Nation's 
        students from non-English language backgrounds.
          (8)(A) Greater efforts are needed to prevent the 
        intensification of problems connected with mislabeling 
        and high dropout rates among minority children with 
        disabilities.
          (B) More minority children continue to be served in 
        special education than would be expected from the 
        percentage of minority students in the general school 
        population.
          (C) Poor African-American children are 3.5 times more 
        likely to be identified by their teacher as mentally 
        retarded than their white counterpart.
          (D) Although African-Americans represent 12 percent 
        of elementary and secondary enrollments, they 
        constitute 28 percent of total enrollments in special 
        education.
          (E) The drop out rate is 68 percent higher for 
        minorities than for whites.
          (F) More than 50 percent of minority students in 
        large cities drop out of school.
          (9)(A) The opportunity for full participation in 
        awards for grants and contracts; boards of 
        organizations receiving funds under this Act; and peer 
        review panels; and training of professionals in the 
        area of special education by minority individuals, 
        organizations, and historically Black colleges and 
        universities is essential if we are to obtain greater 
        success in the education of minority children with 
        disabilities.
          (B) In 1989, of the 661,000 college and university 
        professors, 4.6 percent were African-American and 3.1 
        percent were Hispanic. Of the 3,600,000 teachers, 
        prekindergarten through high school, 9.4 percent were 
        African-American and 3.9 percent were Hispanic.
          (C) Students from minority groups comprise more than 
        50 percent of K-12 public school enrollment in seven 
        States yet minority enrollment in teacher training 
        programs is less than 15 percent in all but six States.
          (D) As the number of African-American and Hispanic 
        students in special education increases, the number of 
        minority teachers and related service personnel 
        produced in our colleges and universities continues to 
        decrease.
          (E) Ten years ago, 12.5 percent of the United States 
        teaching force in public elementary and secondary 
        schools were members of a minority group. Minorities 
        comprised 21.3 percent of the national population at 
        that time and were clearly underrepresented then among 
        employed teachers. Today, the elementary and secondary 
        teaching force is 3 to 5 percent minority, while one-
        third of the students in public schools are minority 
        children.
          (F) As recently as 1984-85, Historically Black 
        Colleges and Universities supplied nearly half of the 
        African-American teachers in the Nation. However, in 
        1988, Historically Black Colleges and Universities 
        received only 2 percent of the discretionary funds for 
        special education and related services personnel 
        training.
          (G) While African-American students constitute 28 
        percent of total enrollment in special education, only 
        11.2 percent of individuals enrolled in preservice 
        training programs for special education are African-
        American.
          (H) In 1986-87, of the degrees conferred in education 
        at the B.A., M.A., and Ph.D levels, only 6, 8, and 8 
        percent, respectively, were awarded to African-American 
        or Hispanic students.
          (10) Minorities and underserved persons are socially 
        disadvantaged because of the lack of opportunities in 
        training and educational programs, undergirded by the 
        practices in the private sector that impede their full 
        participation in the mainstream of society.
  (d) Purposes.--The purposes of this title are--
          (1) to ensure that all children with disabilities 
        have available to them a free appropriate public 
        education that emphasizes special education and related 
        services designed to meet their unique needs and 
        prepare them for employment and independent living;
          (2) to ensure that the rights of children with 
        disabilities and parents of such children are 
        protected;
          (3) to assist States, localities, and Federal 
        agencies to provide for the education of all children 
        with disabilities; and
          (4) to assess, and ensure the effectiveness of, 
        efforts to educate children with disabilities.

SEC. 602. DEFINITIONS.

  As used in this title:
          (1) Assistive technology device.--The term 
        ``assistive technology device'' means any item, piece 
        of equipment, or product system, whether acquired 
        commercially off the shelf, modified, or customized, 
        that is used to increase, maintain, or improve 
        functional capabilities of a child with a disability.
          (2) Assistive technology service.--The term 
        ``assistive technology service'' means any service that 
        directly assists a child with a disability in the 
        selection, acquisition, or use of an assistive 
        technology device. Such term includes--
                  (A) the evaluation of the needs of such 
                child, including a functional evaluation of the 
                child in the child's customary environment;
                  (B) purchasing, leasing, or otherwise 
                providing for the acquisition of assistive 
                technology devices by such child;
                  (C) selecting, designing, fitting, 
                customizing, adapting, applying, maintaining, 
                repairing, or replacing of assistive technology 
                devices;
                  (D) coordinating and using other therapies, 
                interventions, or services with assistive 
                technology devices, such as those associated 
                with existing education and rehabilitation 
                plans and programs;
                  (E) training or technical assistance for such 
                child, or, where appropriate, the family of 
                such child; and
                  (F) training or technical assistance for 
                professionals (including individuals providing 
                education and rehabilitation services), 
                employers, or other individuals who provide 
                services to, employ, or are otherwise 
                substantially involved in the major life 
                functions of such child.
          (3) Child with a disability.--
                  (A) In general.--The term ``child with a 
                disability'' means a child--
                          (i) with mental retardation, hearing 
                        impairments (including deafness), 
                        speech or language impairments, visual 
                        impairments (including blindness), 
                        serious emotional disturbance, 
                        orthopedic impairments, autism, 
                        traumatic brain injury, other health 
                        impairments, or specific learning 
                        disabilities; and
                          (ii) who, by reason thereof, needs 
                        special education and related services.
                  (B) Child aged 3 to 9.--The term ``child with 
                a disability'' for a child aged 3 to 9, 
                inclusive, may, at the discretion of the State 
                and the local educational agency, include a 
                child--
                          (i) experiencing developmental 
                        delays, as defined by the State and as 
                        measured by appropriate diagnostic 
                        instruments and procedures, in one or 
                        more of the following areas: physical 
                        development, cognitive development, 
                        communication development, social or 
                        emotional development, or adaptive 
                        development; and
                          (ii) who, by reason thereof, needs 
                        special education and related services.
          (4) Educational service agency.--The term 
        ``educational service agency''--
                  (A) means a regional public multiservice 
                agency--
                          (i) authorized by State law to 
                        develop, manage, and provide services 
                        or programs to local educational 
                        agencies; and
                          (ii) recognized as an administrative 
                        agency for purposes of the provision of 
                        special education and related services 
                        provided within public elementary and 
                        secondary schools of the State; and
                  (B) includes any other public institution or 
                agency having administrative control and 
                direction over a public elementary or secondary 
                school.
          (5) Elementary school.--The term ``elementary 
        school'' means a day or residential school which 
        provides elementary education, as determined under 
        State law, policy, or procedure.
          (6) Equipment.--The term ``equipment'' includes--
                  (A) machinery, utilities, and built-in 
                equipment and any necessary enclosures or 
                structures to house such machinery, utilities, 
                or equipment; and
                  (B) all other items necessary for the 
                functioning of a particular facility as a 
                facility for the provision of educational 
                services, including items such as instructional 
                equipment and necessary furniture, printed, 
                published, and audio-visual instructional 
                materials, telecommunications, sensory, and 
                other technological aids and devices, and 
                books, periodicals, documents, and other 
                related materials.
          (7) Excess costs.--The term ``excess costs'' means 
        those costs which are in excess of the average annual 
        per student expenditure in a local educational agency 
        during the preceding school year for an elementary or 
        secondary school student, as may be appropriate, and 
        which shall be computed after deducting--
                  (A) amounts received--
                          (i) under part B of this title;
                          (ii) under part A of title I of the 
                        Elementary and Secondary Education Act 
                        of 1965; or
                          (iii) under part A of title VII of 
                        such Act; and
                  (B) any State or local funds expended for 
                programs that would qualify for assistance 
                under any such part.
          (8) Free appropriate public education.--The term 
        ``free appropriate public education'' means special 
        education and related services that--
                  (A) have been provided at public expense, 
                under public supervision and direction, and 
                without charge;
                  (B) meet the standards of the State 
                educational agency;
                  (C) include an appropriate preschool, 
                elementary, or secondary school education in 
                the State involved; and
                  (D) are provided in conformity with the 
                individualized education program required under 
                section 614(d).
          (9) Indian.--The term ``Indian'' means an individual 
        who is a member of an Indian tribe.
          (10) Indian tribe.--The term ``Indian tribe'' means 
        any Federal or State Indian tribe, band, rancheria, 
        pueblo, colony, or community, including any Alaskan 
        native village or regional village corporation (as 
        defined in or established under the Alaska Native 
        Claims Settlement Act).
          (11) Individualized education program.--The term 
        ``individualized education program'' or ``IEP'' means a 
        written statement for each child with a disability that 
        is developed, reviewed, and revised in accordance with 
        section 614(d) and that includes--
                  (A) a statement of the child's present levels 
                of educational performance, including--
                          (i) how the child's disability 
                        affects the child's involvement and 
                        progress in the general curriculum; or
                          (ii) for preschool children, as 
                        appropriate, how the disability affects 
                        the child's participation in 
                        appropriate activities;
                  (B) a statement of measurable annual goals, 
                including benchmarks or short-term objectives, 
                related to--
                          (i) meeting the child's needs that 
                        result from the child's disability to 
                        enable the child to be involved in and 
                        progress in the general curriculum; and
                          (ii) meeting each of the child's 
                        other educational needs that result 
                        from the child's disability;
                  (C) a statement of how the classroom was 
                adapted before the student was referred for 
                identification as a child with a disability;
                  (D) a justification of the extent, if any, to 
                which the child will not be educated with 
                nondisabled children;
                  (E) a statement of the special education and 
                related services and supplementary aids and 
                services to be provided to the child, or on 
                behalf of the child, and any program 
                modifications or support for school personnel 
                necessary for the child--
                          (i) to progress toward the attainment 
                        of the annual goals described in 
                        subparagraph (B); and
                          (ii) to be involved and progress in 
                        the general curriculum in accordance 
                        with subparagraph (A) and to 
                        participate in extracurricular and 
                        other nonacademic activities;
                  (F)(i) a statement of any individual 
                modifications in the administration of State or 
                districtwide assessments of student achievement 
                that are needed in order for the child to 
                participate in such assessment; and
                  (ii) if the individualized education program 
                team determines that the child will not 
                participate in a particular State or 
                districtwide assessment of student achievement 
                (or part of such an assessment), a statement 
                of--
                          (I) why that assessment is not 
                        appropriate for the child; and
                          (II) how the child will be assessed;
                  (G) the projected date for the beginning of 
                the services and modifications described in 
                subparagraph (E), and the anticipated 
                frequency, location, and duration of those 
                services and modifications;
                  (H)(i) beginning at age 14, and updated 
                annually, a statement of the transition service 
                needs of the child under the applicable 
                components of the child's IEP that focuses on 
                the child's courses of study (such as 
                participation in advanced-placement courses or 
                a vocational education or school-to-work 
                program);
                  (ii) beginning at age 16 (or younger, if 
                determined appropriate by the IEP Team), a 
                statement of needed transition services for the 
                child, including, when appropriate, a statement 
                of the interagency responsibilities or any 
                needed linkages; and
                  (iii) beginning at least one year before the 
                child reaches the age of majority under State 
                law, a statement that the child has been 
                informed of his or her rights under this title, 
                if any, that will transfer to the child on 
                reaching the age of majority under section 
                615(m); and
                  (I) a statement of--
                          (i) how the child's progress toward 
                        the annual goals described in 
                        subparagraph (B) will be measured; and
                          (ii) how the child's parents will be 
                        regularly informed (by such means as 
                        periodic report cards), at least as 
                        often as parents are informed of their 
                        nondisabled children's progress, of--
                                  (I) their child's progress 
                                toward the annual goals 
                                described in subparagraph (B); 
                                and
                                  (II) the extent to which that 
                                progress is sufficient to 
                                enable the child to achieve the 
                                objectives by the end of the 
                                year.
          (12) Individualized education program team.--The term 
        ``individualized education program team'' or ``IEP 
        Team'' means a group of individuals composed of--
                  (A) the parents of a child with a disability;
                  (B) at least one regular education teacher of 
                such child (if the child is, or may be, 
                participating in the regular education 
                environment);
                  (C) at least one special education teacher, 
                or where appropriate, at least one special 
                education provider of such child;
                  (D) a representative of the local educational 
                agency who--
                          (i) is qualified to provide, or 
                        supervise the provision of, specially 
                        designed instruction to meet the unique 
                        needs of children with disabilities;
                          (ii) is knowledgeable about the 
                        general curriculum; and
                          (iii) is knowledgeable about the 
                        availability of resources of the local 
                        educational agency;
                  (E) whenever appropriate, the child with a 
                disability; and
                  (F) at the discretion of the parent or the 
                agency, other individuals who have special 
                expertise or knowledge regarding the abilities 
                and disability or disabilities of the child, 
                including, as appropriate, related services 
                personnel who are or who will be working with 
                the child.
          (13) Institution of higher education.--The term 
        ``institution of higher education''--
                  (A) has the meaning given that term in 
                section 1201(a) of the Higher Education Act of 
                1965; and
                  (B) also includes any community college 
                receiving funding from the Secretary of the 
                Interior under the Tribally Controlled 
                Community College Assistance Act of 1978.
          (14) Local educational agency.--The term ``local 
        educational agency'' means--
                  (A) a public board of education or other 
                public authority legally constituted within a 
                State for either administrative control or 
                direction of, or to perform a service function 
                for, public elementary or secondary schools in 
                a city, county, township, school district, or 
                other political subdivision of a State, or for 
                a combination of school districts or counties 
                as are recognized in a State as an 
                administrative agency for its public elementary 
                or secondary schools;
                  (B) any other public institution or agency 
                having administrative control and direction of 
                a public elementary or secondary school; or
                  (C) an educational service agency.
          (15) Native language.--The term ``native language'', 
        when used with reference to an individual of limited 
        English proficiency, means the language normally used 
        by the individual, or in the case of a child, the 
        language normally used by the parents of the child, and 
        includes American Sign Language.
          (16) Nonprofit.--The term ``nonprofit'' as applied to 
        a school, agency, organization, or institution means a 
        school, agency, organization, or institution owned and 
        operated by one or more nonprofit corporations or 
        associations no part of the net earnings of which 
        inures, or may lawfully inure, to the benefit of any 
        private shareholder or individual.
          (17) Parent.--The term ``parent'' includes a legal 
        guardian or surrogate parent.
          (18) Parent organization.--The term ``parent 
        organization'' means a private nonprofit organization 
        (but not including an institution of higher education) 
        that--
                  (A) has a board of directors--
                          (i) the majority of whom are parents 
                        of children with disabilities;
                          (ii) that includes--
                                  (I) individuals working in 
                                the fields of special 
                                education, related services, 
                                and early intervention; and
                                  (II) individuals with 
                                disabilities; and
                          (iii) the parent and professional 
                        members of which are broadly 
                        representative of the population to be 
                        served; or
                  (B)(i) represents the interests of 
                individuals with disabilities and has 
                established a special governing committee which 
                meets the requirements of subparagraph (A); and
                  (ii) has a memorandum of understanding 
                between the special governing committee and the 
                board of directors of the organization which 
                clearly outlines the relationship between the 
                board and the committee and the decisionmaking 
                responsibilities and authority of each.
          (19) Parent training and information center.--The 
        term ``parent training and information center'' means a 
        center that--
                  (A) provides training and information that 
                meets the training and information needs of 
                parents of children with disabilities living in 
                the area served by the center; and
                  (B) assists parents--
                          (i) to better understand the nature 
                        of their children's disabilities and 
                        their educational and developmental 
                        needs;
                          (ii) to communicate effectively with 
                        personnel responsible for providing 
                        special education, early intervention, 
                        and related services;
                          (iii) to participate in 
                        decisionmaking processes and the 
                        development of the IEP;
                          (iv) to obtain appropriate 
                        information about the range of options, 
                        programs, services, and resources 
                        available to assist children with 
                        disabilities and their families;
                          (v) to understand the programs under 
                        this title for the education of, and 
                        the provision of early intervention 
                        services to, children with 
                        disabilities; and
                          (vi) to participate in school reform 
                        activities.
          (20) Related services.--The term ``related services'' 
        means transportation, and such developmental, 
        corrective, and other supportive services (including 
        speech-language pathology and audiology services, 
        psychological services, physical and occupational 
        therapy, recreation, including therapeutic recreation, 
        social work services, counseling services, including 
        rehabilitation counseling, orientation and mobility 
        services, and medical services, except that such 
        medical services shall be for diagnostic and evaluation 
        purposes only) as may be required to assist a child 
        with a disability to benefit from special education, 
        and includes the early identification and assessment of 
        disabling conditions in children.
          (21) Secondary school.--The term ``secondary school'' 
        means a day or residential school which provides 
        secondary education, as determined under State law, 
        policy, or procedure, except that it does not include 
        any education provided beyond grade 12.
          (22) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          (23) Special education.--The term ``special 
        education'' means specially designed instruction, at no 
        cost to parents, to meet the unique needs of a child 
        with a disability, including--
                  (A) instruction conducted in the classroom, 
                in the home, in hospitals and institutions, and 
                in other settings; and
                  (B) instruction in physical education.
          (24) Specific learning disability.--
                  (A) In general.--The term ``specific learning 
                disability'' means a disorder in one or more of 
                the basic psychological processes involved in 
                understanding or in using language, spoken or 
                written, which disorder may manifest itself in 
                imperfect ability to listen, think, speak, 
                read, write, spell, or do mathematical 
                calculations.
                  (B) Disorders included.--Such term includes 
                such conditions as perceptual disabilities, 
                brain injury, minimal brain dysfunction, 
                dyslexia, and developmental aphasia.
                  (C) Disorders not included.--Such term does 
                not include a learning problem that is 
                primarily the result of visual, hearing, or 
                motor disabilities, of mental retardation, of 
                emotional disturbance, or of environmental, 
                cultural, or economic disadvantage.
          (25) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, and each of the territories.
          (26) State educational agency.--The term ``State 
        educational agency'' means the State board of education 
        or other agency or officer primarily responsible for 
        the State supervision of public elementary and 
        secondary schools, or, if there is no such officer or 
        agency, an officer or agency designated by the Governor 
        or by State law.
          (27) Supplementary aids and services.--The term 
        ``supplementary aids and services'' means, aids, 
        services, and other supports that are provided in 
        regular education classes or other education-related 
        settings to enable children with disabilities to be 
        educated with nondisabled children to the maximum 
        extent appropriate in accordance with section 
        612(a)(4).
          (28) Territory.--The term ``territory'' means 
        American Samoa, the Commonwealth of the Northern 
        Mariana Islands, Guam, and the Virgin Islands.
          (29) Transition services.--The term ``transition 
        services'' means a coordinated set of activities for a 
        child with a disability that--
                  (A) are designed within an outcome-oriented 
                process, which promotes movement from school to 
                post-school activities, including post-
                secondary education, vocational training, 
                integrated employment (including supported 
                employment), continuing and adult education, 
                adult services, independent living, or 
                community participation;
                  (B) are based upon the individual child's 
                needs, taking into account the child's 
                preferences and interests; and
                  (C) include instruction, related services, 
                community experiences, the development of 
                employment and other post-school adult living 
                objectives, and, when appropriate, acquisition 
                of daily living skills and functional 
                vocational evaluation.

SEC. 603. OFFICE OF SPECIAL EDUCATION PROGRAMS.

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

SEC. 604. ABROGATION OF STATE SOVEREIGN IMMUNITY.

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

SEC. 605. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

  (a) Public-Comment Period.--The Secretary shall provide a 
public-comment period of at least 90 days on any regulation 
proposed under part B or part C of this title on which an 
opportunity for public comment is otherwise required by law.
  (b) Protections Provided to Children.--The Secretary may not 
implement, or publish in final form, any regulation prescribed 
pursuant to this title which would procedurally or 
substantively lessen the protections provided to children with 
disabilities under this title, as embodied in regulations in 
effect on July 20, 1983 (particularly as such protections 
relate to parental consent to initial evaluation or initial 
placement in special education, least restrictive environment, 
related services, timeliness, attendance of evaluation 
personnel at individualized education program meetings, or 
qualifications of personnel), except to the extent that such 
regulation reflects the clear and unequivocal intent of the 
Congress in legislation.
  (c) Correspondence From Department of Education Describing 
Interpretations of This Part.--
          (1) In general.--The Secretary shall, on a quarterly 
        basis, publish in the Federal Register, and widely 
        disseminate to interested entities through various 
        additional forms of communication, a list of 
        correspondence from the Department of Education 
        received by individuals during the previous quarter 
        that describes the interpretations of the Department of 
        Education of this Act or the regulations implemented 
        pursuant to this Act.
          (2) Additional information.--For each item of 
        correspondence published in a list under paragraph (1), 
        the Secretary shall identify the topic addressed by the 
        correspondence and shall include such other summary 
        information as the Secretary determines to be 
        appropriate.
          (3) Restrictions on use of correspondence.--
                  (A) In general.--Except as provided in 
                subparagraph (B), an item of correspondence 
                published and disseminated under paragraph (1) 
                may not be used in the following:
                          (i) An administrative or due process 
                        action commenced under section 615.
                          (ii) A compliance review or other 
                        action relating to a State educational 
                        agency conducted by the Department of 
                        Education.
                          (iii) A compliance review or other 
                        action relating to a local educational 
                        agency or other agency conducted by a 
                        State educational agency.
                  (B) Exceptions.--A restriction on the use of 
                an item of correspondence under subparagraph 
                (A) shall not apply if the item of 
                correspondence--
                          (i) is directly related to the 
                        particular fact situation, practice, or 
                        policy at issue under clause (i) or 
                        (iii) of subparagraph (A);
                          (ii)(I) was originally directed to 
                        one of the parties to the action under 
                        subparagraph (A)(i); or
                          (II) was originally directed to the 
                        particular local educational agency or 
                        other agency under subparagraph 
                        (A)(iii); or
                          (iii) was originally directed to the 
                        particular State educational agency 
                        under subparagraph (A)(ii).

SEC. 606. EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.

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

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

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

  (a) Authorization.--The Secretary of Education shall provide 
grants to States and provide amounts to the Secretary of the 
Interior for the purpose of providing special education and 
related services to children with disabilities in accordance 
with this part.
  (b) Allotment Among States.--
          (1) Reservation for the territories.--
                  (A) In general.--Of the amount appropriated 
                pursuant to subsection (e) to carry out this 
                part for a fiscal year, the Secretary shall 
                allot not more than one percent among the 
                territories in accordance with this paragraph.
                  (B) Basis for allotment.--The Secretary shall 
                allot to each territory an amount that bears 
                the same proportion to the amount appropriated 
                pursuant to subsection (e) for a fiscal year as 
                the number of individuals aged 3 to 21, 
                inclusive, residing in such territory bears to 
                the aggregate number of such individuals 
                residing in all such territories.
                  (C) Prohibition on consolidation of grants.--
                The provisions of section 501 of Public Law 95-
                134 (48 U.S.C. 1469a; relating to the 
                consolidation of one or more grants provided to 
                certain territories) shall not apply with 
                respect to amounts provided to a territory 
                under a grant under this part.
          (2) Secretary of the interior.--Of the amount 
        appropriated pursuant to subsection (e) to carry out 
        this part for a fiscal year, the Secretary shall 
        provide to the Secretary of the Interior an amount 
        equal to 1.226 percent to carry out subsection (d) 
        (relating to special education and related services for 
        Indian children with disabilities).
          (3) States.--
                  (A) In general.--After determining the amount 
                to be allotted to the territories under 
                paragraph (1) and the amount to be provided to 
                the Secretary of the Interior under paragraph 
                (2) for a fiscal year, the Secretary shall 
                allot the remaining amount to the remaining 
                States in accordance with this paragraph.
                  (B) Basis for allotment.--Except as provided 
                in subparagraph (D), the Secretary shall allot 
                to each State an amount equal to the sum of the 
                following amounts:
                          (i) The amount equal to--
                                  (I) 85 percent of the 
                                remaining amount described in 
                                subparagraph (A); multiplied by
                                  (II) the child population 
                                percentage of the State (as 
                                determined under subparagraph 
                                (C)(i)).
                          (ii) The amount equal to--
                                  (I) 15 percent of the 
                                remaining amount described in 
                                subparagraph (A); multiplied by
                                  (II) the child poverty 
                                percentage of the State (as 
                                determined under subparagraph 
                                (C)(ii)).
                  (C) Determination of child population 
                percentage and child poverty percentage.--
                          (i) Child population percentage.--The 
                        child population percentage shall be 
                        determined by comparing--
                                  (I) the number of children 
                                aged 3 to 21, inclusive, in the 
                                State who are of the same age 
                                as children with disabilities 
                                for whom the State ensures the 
                                availability of a free 
                                appropriate public education; 
                                to
                                  (II) the number of such 
                                children in all States.
                          (ii) Child poverty percentage.--The 
                        child poverty percentage shall be 
                        determined by comparing--
                                  (I) the number of children 
                                aged 3 to 21, inclusive, in the 
                                State living in poverty who are 
                                of the same age as children 
                                with disabilities for whom the 
                                State ensures the availability 
                                of a free appropriate public 
                                education; to
                                  (II) the number of such 
                                children in all States.
                  (D) Transition formula.--For each of the 
                fiscal years 1997 through 2005, the Secretary 
                shall allot the remaining amount to the 
                remaining States in accordance with the 
                following:
                          (i) Fiscal year 1997.--For fiscal 
                        year 1997, the Secretary shall allot to 
                        each remaining State the sum of--
                                  (I) 10 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (B); 
                                and
                                  (II) 90 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (E).
                          (ii) Fiscal year 1998.--For fiscal 
                        year 1998, the Secretary shall allot to 
                        each remaining State the sum of--
                                  (I) 20 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (B); 
                                and
                                  (II) 80 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (E).
                          (iii) Fiscal year 1999.--For fiscal 
                        year 1999, the Secretary shall allot to 
                        each remaining State the sum of--
                                  (I) 30 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (B); 
                                and
                                  (II) 70 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (E).
                          (iv) Fiscal year 2000.--For fiscal 
                        year 2000, the Secretary shall allot to 
                        each remaining State the sum of--
                                  (I) 40 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (B); 
                                and
                                  (II) 60 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (E).
                          (v) Fiscal year 2001.--For fiscal 
                        year 2001, the Secretary shall allot to 
                        each remaining State the sum of--
                                  (I) 50 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (B); 
                                and
                                  (II) 50 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (E).
                          (vi) Fiscal year 2002.--For fiscal 
                        year 2002, the Secretary shall allot to 
                        each remaining State the sum of--
                                  (I) 60 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (B); 
                                and
                                  (II) 40 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (E).
                          (vii) Fiscal year 2003.--For fiscal 
                        year 2003, the Secretary shall allot to 
                        each remaining State the sum of--
                                  (I) 70 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (B); 
                                and
                                  (II) 30 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (E).
                          (viii) Fiscal year 2004.--For fiscal 
                        year 2004, the Secretary shall allot to 
                        each remaining State the sum of--
                                  (I) 80 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (B); 
                                and
                                  (II) 20 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (E).
                          (ix) Fiscal year 2005.--For fiscal 
                        year 2005, the Secretary shall allot to 
                        each remaining State the sum of--
                                  (I) 90 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (B); 
                                and
                                  (II) 10 percent multiplied by 
                                the amount determined for such 
                                State under subparagraph (E).
                  (E) Base amount for 1996.--
                          (i) In general.--Subject to clause 
                        (ii), the amount determined under this 
                        subparagraph for a State is the amount 
                        that bears the same proportion to the 
                        remaining amount (described in 
                        subparagraph (A)) for the fiscal year 
                        under subparagraph (D) as the amount 
                        received by the State under this 
                        section for fiscal year 1996 bears to 
                        the aggregate of the amounts received 
                        by the remaining States (described in 
                        subparagraph (A)) under this section 
                        for fiscal year 1996.
                          (ii) Reduction in amount.--If the 
                        State received an amount under this 
                        section for fiscal year 1996 on the 
                        basis of children aged 3 to 5, 
                        inclusive, in such State, but the State 
                        does not make a free appropriate public 
                        education available to all children 
                        with disabilities aged 3 to 5, 
                        inclusive, in the State at the time a 
                        determination is made under 
                        subparagraph (C), the Secretary shall 
                        reduce, on a proportional basis, the 
                        amount under clause (i) for purposes of 
                        allotting amounts under such 
                        subparagraph.
                  (F) Minimum allotment.--For fiscal year 1997 
                and each subsequent fiscal year, the amount 
                allotted to each remaining State (described in 
                subparagraph (A)) shall not be less than an 
                amount equal to one-third of one percent of the 
                remaining amount (described in subparagraph 
                (A)) for the fiscal year.
                  (G) Maximum allotment.--
                          (i) In general.--For fiscal year 1997 
                        and each subsequent fiscal year, the 
                        amount allotted to each remaining State 
                        (described in subparagraph (A)) under 
                        this paragraph shall not be more than 
                        an amount equal to
                                  (I) the sum of--
                                          (aa) the number of 
                                        children with 
                                        disabilities in the 
                                        State, aged 6 through 
                                        21, who are receiving 
                                        special education and 
                                        related services, as 
                                        determined under clause 
                                        (ii); and
                                          (bb) if the State is 
                                        eligible for a grant 
                                        under section 619, the 
                                        number of such children 
                                        in the State, aged 3 
                                        through 5; multiplied 
                                        by
                                  (II) 40 percent of the 
                                average per-pupil expenditure 
                                in public elementary and 
                                secondary schools in the United 
                                States.
                          (ii) Determination of number of 
                        children.--The number of children with 
                        disabilities receiving special 
                        education and related services in any 
                        fiscal year shall be equal to the 
                        number of such children receiving 
                        special education and related services 
                        on December 1 of the fiscal year 
                        preceding the fiscal year for which the 
                        determination is made.
                          (iii) Average per pupil 
                        expenditure.--For purposes of clause 
                        (i)(II), the term ``average per pupil 
                        expenditure'', in the United States, 
                        means the aggregate current 
                        expenditures, during the second fiscal 
                        year preceding the fiscal year for 
                        which the computation is made (or, if 
                        satisfactory data for such year are not 
                        available at the time of computation, 
                        then during the most recent preceding 
                        fiscal year for which satisfactory data 
                        are available) of all local educational 
                        agencies in the United States (which, 
                        for purposes of this subparagraph, 
                        means the fifty States and the District 
                        of Columbia), as the case may be, plus 
                        any direct expenditures by the State 
                        for operation of such agencies (without 
                        regard to the source of funds from 
                        which either of such expenditures are 
                        made), divided by the aggregate number 
                        of children in average daily attendance 
                        to whom such agencies provided free 
                        public education during such preceding 
                        year.
          (4) Special rule with respect to puerto rico.--
                  (A) In general.--Notwithstanding any other 
                provision of this subsection, the amount 
                allotted to Puerto Rico for a fiscal year shall 
                bear the same or lower proportion to the 
                remaining amount (described in paragraph 
                (3)(A)) as the amount received by Puerto Rico 
                under this section for fiscal year 1996 bears 
                to the aggregate of the amounts received by the 
                remaining States (as described in paragraph 
                (3)(A)) under this section for fiscal year 
                1996.
                  (B) Adjustment in amounts to remaining 
                states.--If the amount allotted to Puerto Rico 
                for a fiscal year is determined under 
                subparagraph (A), the Secretary shall reallot 
                to the remaining States (as described in 
                paragraph (3)(A)), on a proportional basis, any 
                amount not otherwise allotted to Puerto Rico.
          (5) Use of most recent population data.--For the 
        purpose of providing grants under this part, the 
        Secretary shall use the most recent population data and 
        data on children aged 3 to 21, inclusive, living in 
        poverty that are available and satisfactory to the 
        Secretary.
  (c) Use of Funds by State.--
          (1) Reservation for state activities.--
                  (A) In general.--Subject to subparagraph (D), 
                a State may reserve not more than 25 percent of 
                the amount allotted to the State under 
                paragraph (1) or (3) of subsection (b) for a 
                fiscal year for administration and other State-
                level activities in accordance with 
                subparagraphs (B) and (C).
                  (B) State administration.--
                          (i) In general.--For the purpose of 
                        administering programs under this part, 
                        including the coordination of 
                        activities under this part with, and 
                        providing technical assistance to, 
                        other programs that provide services to 
                        children with disabilities--
                                  (I) each territory may use up 
                                to 3 percent of the amount 
                                allotted to the territory for a 
                                fiscal year, or $35,000, 
                                whichever is greater; and
                                  (II) each remaining State may 
                                use up to 3 percent of the 
                                amount allotted to the State 
                                for a fiscal year, or $450,000, 
                                whichever is greater.
                          (ii) Use of amounts for 
                        administration of part c.--If the State 
                        educational agency is the lead agency 
                        for the State under part C, amounts 
                        described in clause (i) may also be 
                        used for the administration of part C.
                  (C) Other state-level activities.--A State 
                shall use any amounts reserved under 
                subparagraph (A) for a fiscal year that are not 
                used for administration under subparagraph (B) 
                for such fiscal year--
                          (i) for support and direct services, 
                        including technical assistance and 
                        personnel development and training;
                          (ii) for administrative costs of 
                        monitoring and complaint investigation, 
                        but only to the extent that such costs 
                        exceed the costs incurred for those 
                        activities during fiscal year 1985;
                          (iii) to establish and implement the 
                        mediation process required by section 
                        615(d), including providing for the 
                        costs of mediators and support 
                        personnel;
                          (iv) to assist local educational 
                        agencies in meeting personnel 
                        shortages;
                          (v) to develop a State improvement 
                        plan under part D;
                          (vi) for activities at the State and 
                        local levels to meet the performance 
                        goals established by the State under 
                        section 612(a)(14) and to support 
                        implementation of the State improvement 
                        plan under part D if the State receives 
                        funds under that part; or
                          (vii) to supplement other amounts 
                        used to develop and implement a 
                        Statewide coordinated services system 
                        designed to improve results for 
                        children and families, including 
                        children with disabilities and their 
                        families, but not to exceed one percent 
                        of the amount received by the State 
                        under this section (such system shall 
                        be coordinated with and, to the extent 
                        appropriate, build on the system of 
                        coordinated services developed by the 
                        State under part C).
                  (D) Report on use of amounts.--The State 
                shall, as part of the information required to 
                be submitted under section 612, submit a 
                description of--
                          (i) how amounts reserved under 
                        subparagraph (A) will be used to meet 
                        the requirements of this part;
                          (ii) how such amounts will be 
                        allocated among the activities 
                        described in subparagraphs (B) and (C) 
                        to meet State priorities based on input 
                        from local educational agencies; and
                          (iii) what percentage of such 
                        amounts, if any, will be distributed to 
                        local educational agencies by formula.
          (2) Subgrants to local educational agencies and 
        certain state agencies.--
                  (A) In general.--The State shall provide at 
                least 75 percent of the amount received under a 
                grant for a fiscal year to local educational 
                agencies in the State that have established 
                their eligibility under section 613, and to 
                State agencies that received funds under 
                section 614A(a) (as such section was in effect 
                on the day before the date of the enactment of 
                the IDEA Improvement Act of 1996) for fiscal 
                year 1996 and have established their 
                eligibility under section 613, for use in 
                accordance with this part.
                  (B) Methods of distribution.--A State may 
                provide amounts under subparagraph (A) to local 
                educational agencies and State agencies 
                described under such subparagraph on the basis 
                of--
                          (i) school-age population;
                          (ii) school enrollment;
                          (iii) numbers of children with 
                        disabilities receiving a free 
                        appropriate public education;
                          (iv) allocations for previous fiscal 
                        years;
                          (v) any two or more of the factors 
                        described in clauses (i) through (iv); 
                        or
                          (vi) poverty, in combination with one 
                        or more of the factors described in 
                        clauses (i) through (iv).
                  (C) Former chapter 1 state agencies.--
                          (i) In general.--To the extent 
                        necessary for each of the fiscal years 
                        1997, 1998, and 1999, the State shall 
                        use amounts that are available under 
                        paragraph (1)(A) to ensure that each 
                        State agency that received amounts in 
                        fiscal year 1994 under subpart 2 of 
                        part D of chapter 1 of title I of the 
                        Elementary and Secondary Education Act 
                        of 1965 (as such subpart was in effect 
                        on the day before the date of the 
                        enactment of the Improving America's 
                        Schools Act of 1994) receives, from the 
                        combination of funds under paragraph 
                        (1)(A) and funds provided under 
                        subparagraph (A), an amount equal to--
                                  (I) the number of children 
                                with disabilities, aged 6 to 
                                21, inclusive, to whom the 
                                agency was providing special 
                                education and related services 
                                on December 1 of the fiscal 
                                year for which the funds were 
                                appropriated, subject to the 
                                methods of distribution under 
                                subparagraph (B); multiplied by
                                  (II) the per-child amount 
                                provided under such subpart for 
                                fiscal year 1994.
                          (ii) Additional use of amounts.--The 
                        State may use amounts described in 
                        clause (i) to ensure that each local 
                        educational agency that received fiscal 
                        year 1994 funds under that subpart for 
                        children who had transferred from a 
                        State-operated or State-supported 
                        school or program assisted under that 
                        subpart receives, from the combination 
                        of funds available under paragraph 
                        (1)(A) and funds provided under 
                        subparagraph (A), an amount for each 
                        such child, aged 3 to 21, inclusive, to 
                        whom the agency was providing special 
                        education and related services on 
                        December 1 of the fiscal year for which 
                        the funds were appropriated, equal to 
                        the per-child amount the agency 
                        received under that subpart for fiscal 
                        year 1994.
                          (iii) Determination of number of 
                        children.--The number of children 
                        counted under clause (i)(I) shall not 
                        exceed the number of children aged 3 to 
                        21, inclusive, for whom the agency 
                        received amounts in fiscal year 1994 
                        under subpart 2 of part D of chapter 1 
                        of title I of the Elementary and 
                        Secondary Education Act of 1965 (as 
                        such subpart was in effect on the day 
                        before the date of the enactment of the 
                        Improving America's Schools Act of 
                        1994).
                  (D) Reallocation of amounts.--If a State 
                educational agency determines that a local 
                educational agency is adequately providing a 
                free appropriate public education to all 
                children with disabilities residing in the area 
                served by that agency with State and local 
                funds, the State educational agency may 
                reallocate any portion of amounts received 
                under a grant under this part that are not 
                needed by that local agency to other local 
                educational agencies in the State that are not 
                adequately providing special education and 
                related services to all children with 
                disabilities residing in the areas they serve.
  (d) Use of Amounts by Secretary of the Interior.--
          (1) Provision of amounts for assistance.--
                  (A) In general.--The Secretary of Education 
                shall provide amounts to the Secretary of the 
                Interior to meet the need for assistance for 
                the education of children with disabilities on 
                reservations aged 5 to 21, inclusive, enrolled 
                in elementary and secondary schools for Indian 
                children operated or funded by the Secretary of 
                the Interior. The amount of such payment for 
                any fiscal year shall be equal to 80 percent of 
                the amount allotted under subsection (b)(2) for 
                that fiscal year.
                  (B) Calculation of number of children.--In 
                the case of Indian students ages 3 to 5, 
                inclusive, who are enrolled in programs 
                affiliated with Bureau of Indian Affairs 
                (hereafter in this subsection referred to as 
                ``BIA'') schools and that are required by the 
                States in which such schools are located to 
                attain or maintain State accreditation, and 
                which schools have such accreditation prior to 
                the date of enactment of the Individuals with 
                Disabilities Education Act Amendments of 1991, 
                the school shall be allowed to count those 
                children for the purpose of distribution of the 
                funds provided under this paragraph to the 
                Secretary of the Interior. The Secretary of the 
                Interior shall be responsible for meeting all 
                of the requirements of this part for these 
                children, in accordance with paragraph (2).
                  (C) Additional requirement.--With respect to 
                all other children aged 3 to 21, inclusive, on 
                reservations, the State educational agency 
                shall be responsible for ensuring that all of 
                the requirements of this part are implemented.
          (2) Submission of information.--The Secretary of 
        Education may provide the Secretary of the Interior 
        amounts under paragraph (1) for a fiscal year only if 
        the Secretary of the Interior submits to the Secretary 
        of Education information that--
                  (A) demonstrates that the Department of the 
                Interior meets the appropriate requirements, as 
                determined by the Secretary of Education, of 
                sections 612 (including monitoring and 
                evaluation activities) and 613;
                  (B) includes a description of how the 
                Secretary of the Interior will coordinate the 
                provision of services under this part with 
                local educational agencies, tribes and tribal 
                organizations, and other private and Federal 
                service providers;
                  (C) includes an assurance that there are 
                public hearings, adequate notice of such 
                hearings, and an opportunity for comment 
                afforded to members of tribes, tribal governing 
                bodies, and affected local school boards before 
                the adoption of the policies, programs, and 
                procedures described in subparagraph (A);
                  (D) includes an assurance that the Secretary 
                of the Interior will provide such information 
                as the Secretary of Education may require to 
                comply with section 618;
                  (E) includes an assurance that the Secretary 
                of the Interior and the Secretary of Health and 
                Human Services have entered into a memorandum 
                of agreement, to be provided to the Secretary 
                of Education, for the coordination of services, 
                resources, and personnel between their 
                respective Federal, State, and local offices 
                and with State and local educational agencies 
                and other entities to facilitate the provision 
                of services to Indian children with 
                disabilities residing on or near reservations 
                (such agreement shall provide for the 
                apportionment of responsibilities and costs 
                including, but not limited to, child find, 
                evaluation, diagnosis, remediation or 
                therapeutic measures, and (where appropriate) 
                equipment and medical or personal supplies as 
                needed for a child to remain in school or a 
                program); and
                  (F) includes an assurance that the Department 
                of the Interior will cooperate with the 
                Department of Education in its exercise of 
                monitoring and oversight of this application, 
                and any agreements entered into between the 
                Secretary of the Interior and other entities 
                under this part, and will fulfill its duties 
                under this part.
          Section 616(a) shall apply to the information 
        described in this paragraph.
          (3) Payments for education and services for indian 
        children with disabilities aged 3 to 5.--
                  (A) In general.--With funds appropriated 
                under subsection (e), the Secretary shall make 
                payments to the Secretary of the Interior to be 
                distributed to tribes or tribal organizations 
                (as defined under section 4 of the Indian Self-
                Determination and Education Assistance Act) or 
                consortia of the above to provide for the 
                coordination of assistance for special 
                education and related services for children 
                with disabilities aged 3 to 5, inclusive, on 
                reservations served by elementary and secondary 
                schools for Indian children operated or funded 
                by the Department of the Interior. The amount 
                of such payments under subparagraph (B) for any 
                fiscal year shall be equal to 20 percent of the 
                amount allotted under subsection (b)(2).
                  (B) Distribution of funds.--The Secretary of 
                the Interior shall distribute the total amount 
                of the payment under subparagraph (A) by 
                allocating to each tribe or tribal organization 
                an amount based on the number of children with 
                disabilities, ages 3 to 5, inclusive, residing 
                on reservations as reported annually divided by 
                the total of such children served by all tribes 
                or tribal organizations.
                  (C) Submission of information.--To receive a 
                payment under this paragraph, the tribe or 
                tribal organization shall submit such figures 
                to the Secretary of the Interior as required to 
                determine the amounts to be allocated under 
                subparagraph (B). This information shall be 
                compiled and submitted to the Secretary of 
                Education.
                  (D) Use of funds.--The funds received by a 
                tribe or tribal organization shall be used to 
                assist in child find, screening, and other 
                procedures for the early identification of 
                children aged 3 to 5, inclusive, parent 
                training, and the provision of direct services. 
                These activities may be carried out directly or 
                through contracts or cooperative agreements 
                with the BIA, local educational agencies, and 
                other public or private nonprofit 
                organizations. The tribe or tribal organization 
                is encouraged to involve Indian parents in the 
                development and implementation of these 
                activities. The above entities shall, as 
                appropriate, make referrals to local, State, or 
                Federal entities for the provision of services 
                or further diagnosis.
                  (E) Biennial report.--To be eligible to 
                receive a grant pursuant to subparagraph (A), 
                the tribe or tribal organization shall provide 
                to the Secretary of the Interior a biennial 
                report of activities undertaken under this 
                paragraph, including the number of contracts 
                and cooperative agreements entered into, the 
                number of children contacted and receiving 
                services for each year and the estimated number 
                of children needing services during the 2 years 
                following the one in which the report is made. 
                The Secretary of the Interior shall include a 
                summary of this information on a biennial basis 
                in the report to the Secretary of Education 
                required under this subsection. The Secretary 
                of Education may require any additional 
                information from the Secretary of the Interior.
                  (F) Prohibitions.--None of the funds 
                allocated under this paragraph may be used by 
                the Secretary of the Interior for 
                administrative purposes, including child count 
                and the provision of technical assistance.
          (4) Plan for coordination of services.--The Secretary 
        of the Interior shall develop and implement a plan for 
        the coordination of services for all Indian children 
        with disabilities residing on reservations covered 
        under this Act. Such plan shall provide for the 
        coordination of services benefiting these children from 
        whatever source, including tribes, the Indian Health 
        Service, other BIA divisions, and other Federal 
        agencies. In developing such a plan, the Secretary of 
        the Interior shall consult with all interested and 
        involved parties. It shall be based upon the needs of 
        the children and the system best suited for meeting 
        those needs, and may involve the establishment of 
        cooperative agreements between the BIA, other Federal 
        agencies, and other entities. Such plan shall also be 
        distributed upon request to States, State and local 
        educational agencies, and other agencies providing 
        services to infants, toddlers, children, and youth with 
        disabilities, to tribes, and to other interested 
        parties.
          (5) Establishment of advisory board.--To meet the 
        requirements of section 612(a)(18), the Secretary of 
        the Interior shall establish, not later than 6 months 
        after the date of the enactment of the IDEA Improvement 
        Act of 1996, under the Bureau of Indian Affairs (BIA), 
        an advisory board composed of individuals involved in 
        or concerned with the education and provision of 
        services to Indian infants, toddlers, children, and 
        youth with disabilities, including Indians with 
        disabilities, Indian parents or guardians of such 
        children, teachers, service providers, State and local 
        educational officials, representatives of tribes or 
        tribal organizations, representatives from State 
        Interagency Coordinating Councils in States having 
        reservations, and other members representing the 
        various divisions and entities of the BIA. The 
        chairperson shall be selected by the Secretary of the 
        Interior. The advisory board shall--
                  (A) assist in the coordination of services 
                within BIA and with other local, State, and 
                Federal agencies in the provision of education 
                for infants, toddlers, children, and youth with 
                disabilities;
                  (B) advise and assist the Secretary of the 
                Interior in the performance of the Secretary's 
                responsibilities described in this subsection;
                  (C) develop and recommend policies concerning 
                effective inter- and intra-agency 
                collaboration, including modifications to 
                regulations, and the elimination of barriers to 
                inter- and intra-agency programs and 
                activities;
                  (D) provide assistance and disseminate 
                information on best practices, effective 
                program coordination strategies, and 
                recommendations for improved educational 
                programming for Indian infants, toddlers, 
                children, and youth with disabilities; and
                  (E) provide assistance in the preparation of 
                information required under paragraph (2)(D).
          (6) Annual reports.--
                  (A) In general.--The advisory board 
                established under paragraph (5) shall prepare 
                and submit to the Secretary of the Interior and 
                to the Congress an annual report containing a 
                description of the activities of the advisory 
                board for the preceding year.
                  (B) Availability.--The Secretary of the 
                Interior shall make available to the Secretary 
                of Education the report described in 
                subparagraph (A).
  (e) Authorization of Appropriations.--For the purpose of 
carrying out this part (except for section 619; relating to 
preschool grants), there are authorized to be appropriated to 
the Secretary such sums as may be necessary.

SEC. 612. STATE REQUIREMENTS.

  (a) In General.--A State shall be eligible to receive a grant 
under this part for a fiscal year if, except as provided in 
subsection (c), the State submits to the Secretary information 
that demonstrates to the satisfaction of the Secretary that the 
State has in effect policies and procedures to ensure that it 
meets each of the following requirements:
          (1) Free appropriate public education.--
                  (A) In general.--A free appropriate public 
                education is available to all children with 
                disabilities residing in the State between the 
                ages of 3 and 21, inclusive.
                  (B) Limitation.--Subparagraph (A) shall not 
                apply with respect to children with 
                disabilities aged 3 to 5 and children with 
                disabilities aged 18 to 21 to the extent that 
                such application to those children would be 
                inconsistent with State law or practice, or the 
                order of any court, relating to the provision 
                of public education to children in such age 
                ranges.
          (2) Child find.--All children with disabilities 
        residing in the State, including children with 
        disabilities attending private schools, regardless of 
        the severity of such disabilities, and who are in need 
        of special education and related services, are 
        identified, located, and evaluated and that a practical 
        method is developed and implemented to determine which 
        children with disabilities are currently receiving 
        needed special education and related services.
          (3) Individualized education program.--An 
        individualized education program, or an individualized 
        family service plan that meets the requirements of 
        section 636(d), is developed, reviewed, and revised for 
        each child with a disability in accordance with section 
        614(d).
          (4) Least restrictive environment.--
                  (A) In general.--To the maximum extent 
                appropriate--
                          (i) children with disabilities, 
                        including children in public or private 
                        institutions or other care facilities, 
                        are educated with children who are not 
                        disabled; and
                          (ii) special classes, separate 
                        schooling, or other removal of children 
                        with disabilities from the regular 
                        educational environment occurs only 
                        when the nature or severity of the 
                        disability of a child means that 
                        education in regular classes with the 
                        use of supplementary aids and services 
                        cannot be achieved satisfactorily.
                  (B) Additional requirement.--
                          (i) In general.--The State's method 
                        of distributing funds shall not result 
                        in placements that violate the 
                        requirements of subparagraph (A).
                          (ii) Exception.--If the State does 
                        not have policies and procedures to 
                        ensure compliance with clause (i), the 
                        State shall provide the Secretary an 
                        assurance that it will revise the 
                        funding mechanism as soon as feasible 
                        to ensure that such mechanism does not 
                        result in such placements.
          (5) Procedural safeguards.--
                  (A) In general.--Children with disabilities 
                and their parents are afforded the procedural 
                safeguards required by section 615.
                  (B) Additional procedural safeguards.--
                Procedures to assure that testing and 
                evaluation materials and procedures utilized 
                for the purposes of evaluation and placement of 
                children with disabilities will be selected and 
                administered so as not to be racially or 
                culturally discriminatory. Such materials or 
                procedures shall be provided and administered 
                in the child's native language or mode of 
                communication, unless it clearly is not 
                feasible to do so, and no single procedure 
                shall be the sole criterion for determining an 
                appropriate educational program for a child.
          (6) Evaluation.--Children with disabilities are 
        evaluated in accordance with subsections (a) through 
        (c) of section 614.
          (7) Confidentiality.--Agencies in the State comply 
        with section 617(c) (relating to the confidentiality of 
        records and information).
          (8) Transition from part c to preschool programs.--
        Children participating in early-intervention programs 
        assisted under part C, and who will participate in 
        preschool programs assisted under this part, experience 
        a smooth transition to those preschool programs in a 
        manner consistent with section 637(a)(7). By the third 
        birthday of such a child, an individualized education 
        program or, if consistent with sections 614(d)(1)(B) 
        and 636(d), an individualized family service plan, has 
        been developed and is being implemented for the child. 
        The local educational agency will participate in 
        transition planning conferences by the designated lead 
        agency under section 637(a)(7).
          (9) Children in private schools.--
                  (A) In general.--To the extent consistent 
                with the number and location of children with 
                disabilities in the State who are enrolled in 
                private elementary and secondary schools, 
                provision is made for the participation of such 
                children in the program assisted or carried out 
                under this part by providing for such children 
                special education and related services, except 
                if the Secretary has arranged for services to 
                such children under subsection (f).
                  (B) Children placed in, or referred to, 
                private schools by public agencies.--
                          (i) In general.--Children with 
                        disabilities in private schools and 
                        facilities are provided special 
                        education and related services, in 
                        accordance with an individualized 
                        education program, at no cost to their 
                        parents, if they are placed in, or 
                        referred to, such schools or facilities 
                        by the State or a local educational 
                        agency in order to comply with this 
                        part or with any other provision of law 
                        requiring the provision of special 
                        education and related services to all 
                        children with disabilities in the 
                        State.
                          (ii) Additional requirements.--In all 
                        cases described in clause (i)--
                                  (I) children with 
                                disabilities are placed in, or 
                                referred to, only those private 
                                schools and facilities that the 
                                State educational agency 
                                determines meet standards that 
                                apply to State and local 
                                educational agencies; and
                                  (II) children served in such 
                                private schools or facilities 
                                retain access to a free 
                                appropriate public education in 
                                accordance with this part.
                  (C) Payment for education of children placed 
                in private schools without consent of or 
                referral by the public agency.--
                          (i) In general.--If the parents of a 
                        child with a disability that had 
                        previously received special education 
                        and related services under the 
                        authority of a public agency have 
                        enrolled their child in a private 
                        elementary or secondary school without 
                        the consent of or referral by the 
                        public agency, as a result of mediation 
                        described in section 615(d), or as a 
                        result of a decision rendered under the 
                        procedural safeguards of section 615, 
                        the public agency may be required to 
                        reimburse the parents for the cost of 
                        the enrollment, except that the cost of 
                        the reimbursement may be reduced or 
                        denied--
                                  (I) if, at least 10 school 
                                days prior to the removal of 
                                the child from the public 
                                school, the parents did not 
                                give a written statement of 
                                their concerns to the public 
                                agency and notice that they 
                                intend to place their child in 
                                a private school at public 
                                expense;
                                  (II) if, prior to the removal 
                                of the child from the public 
                                school, the parents did not 
                                make the child available for an 
                                initial assessment and 
                                evaluation by the local 
                                educational agency prior to 
                                enrollment in the private 
                                school; or
                                  (III) at the discretion of 
                                the judge.
                          (ii) Exception.--Notwithstanding the 
                        notice requirement in clause (i)(I), 
                        the cost of the reimbursement may not 
                        be reduced or denied for failure to 
                        provide such notice if--
                                  (I) the parent is illiterate 
                                or cannot write in English;
                                  (II) compliance with clause 
                                (i)(I) would likely result in 
                                physical or serious emotional 
                                harm to the child;
                                  (III) the school prevented 
                                the parent from providing such 
                                notice; or
                                  (IV) the parent had not 
                                received notice, pursuant to 
                                section 615(d), of the notice 
                                requirement in clause (i)(I).
          (10) State educational agency responsible for general 
        supervision.--
                  (A) In general.--The State educational agency 
                is responsible for ensuring that--
                          (i) the requirements of this part are 
                        met; and
                          (ii) all educational programs for 
                        children with disabilities in the 
                        State, including all such programs 
                        administered by any other State or 
                        local agency--
                                  (I) are under the general 
                                supervision of individuals in 
                                the State who are responsible 
                                for educational programs for 
                                children with disabilities; and
                                  (II) meet the educational 
                                standards of the State 
                                educational agency.
                  (B) Limitation.--Subparagraph (A) shall not 
                limit the responsibility of agencies in the 
                State other than the State educational agency 
                to provide, or pay for some or all of the costs 
                of, a free appropriate public education for any 
                child with a disability in the State.
          (11) Obligations related to and methods of ensuring 
        services.--
                  (A) Establishing responsibility for 
                services.--The Chief Executive Officer or 
                designee of the officer shall ensure that an 
                interagency agreement or other mechanism for 
                interagency coordination is in effect between 
                each public agency described in subparagraph 
                (B) and the appropriate educational agency 
                within the State, in order to ensure that all 
                services described in subparagraph (B)(i) that 
                are needed to ensure a free appropriate public 
                education are provided, including the provision 
                of such services during the pendency of any 
                dispute under clause (iii). Such agreement or 
                mechanism shall include the following:
                          (i) Agency financial 
                        responsibility.--An identification of, 
                        or a method for defining, the financial 
                        responsibility of each agency for 
                        providing services described in 
                        subparagraph (B)(i) to ensure a free 
                        appropriate public education to 
                        children with disabilities provided 
                        that the financial responsibility of 
                        each public agency described in 
                        subparagraph (B), including the State 
                        Medicaid agency and other public 
                        insurers of children with disabilities, 
                        shall precede the financial 
                        responsibility of the local education 
                        agency (or the State agency responsible 
                        for developing the child's IEP).
                          (ii) Conditions and terms of 
                        reimbursement.--The conditions, terms, 
                        and procedures under which a local 
                        educational agency shall be reimbursed 
                        by other agencies.
                          (iii) Interagency disputes.--
                        Procedures for resolving interagency 
                        disputes (including procedures under 
                        which local education agencies may 
                        initiate proceedings) under the 
                        agreement or other mechanism to secure 
                        reimbursement from other agencies or 
                        otherwise implement the provisions of 
                        the agreement or mechanism.
                          (iv) Coordination of services 
                        procedures.--Policies and procedures 
                        for agencies to determine and identify 
                        the interagency coordination 
                        responsibilities of each agency to 
                        promote the coordination and timely and 
                        appropriate delivery of services 
                        described in subparagraph (B)(i).
                  (B) Obligation of public agency.--
                          (i) In general.--If any public agency 
                        other than an educational agency is 
                        otherwise obligated under Federal or 
                        State law, or assigned responsibility 
                        under State policy or pursuant to 
                        subparagraph (A), to provide or pay for 
                        any services that are considered 
                        special education or related services 
                        (such as, but not limited to, services 
                        described in sections 602(1) relating 
                        to assistive technology devices, 602(2) 
                        relating to assistive technology 
                        services, 602(20) relating to related 
                        services, 602(27) related to 
                        supplementary aids and services, and 
                        602(29) relating to transition 
                        services) that are necessary for 
                        ensuring a free appropriate public 
                        education to children with disabilities 
                        within the State, such public agency 
                        shall fulfill that obligation or 
                        responsibility, either directly or 
                        through contract or other arrangement.
                          (ii) Reimbursement for services by 
                        public agency.--If a public agency 
                        other than an educational agency fails 
                        to provide or pay for the special 
                        education and related services 
                        described in clause (i), the local 
                        educational agency (or State agency 
                        responsible for developing the child's 
                        IEP) shall provide or pay for such 
                        services to the child. Such local 
                        education agency or State agency may 
                        then claim reimbursement for the 
                        services from the public agency that 
                        failed to provide or pay for such 
                        services and such public agency shall 
                        reimburse the local education agency or 
                        State agency pursuant to the terms of 
                        the interagency agreement described in 
                        subparagraph (A)(i) according to the 
                        procedures established in such 
                        agreement pursuant to subparagraph 
                        (A)(ii).
                  (C) Special rule.--The requirements of 
                subparagraph (A) may be met through--
                          (i) State statute or regulation;
                          (ii) signed agreements between 
                        respective agency officials that 
                        clearly identify the responsibilities 
                        of each agency relating to the 
                        provision of services; or
                          (iii) other appropriate methods as 
                        determined by the Chief Executive 
                        Officer or designee of the officer.
          (12) Procedural requirements relating to local 
        educational agency eligibility.--The State educational 
        agency will not make a final determination that a local 
        educational agency is not eligible for assistance under 
        this part without first affording that agency 
        reasonable notice and an opportunity for a hearing.
          (13) Comprehensive system of personnel development.--
        The State has established and implemented, consistent 
        with the purposes of this title and section 635(a)(7), 
        a comprehensive system of personnel development that is 
        designed to ensure an adequate supply of qualified 
        special education and related services personnel 
        necessary to carry out this part, including--
                  (A) a statewide, coordinated personnel-
                development plan that meets the personnel 
                development requirements of a State improvement 
                plan under section 683; or
                  (B) a personnel-development plan, developed 
                in consultation with parents of children with 
                disabilities, State and local educational 
                agencies, institutions of higher education, and 
                professional associations that--
                          (i) addresses current and projected 
                        needs for special education and related 
                        services personnel throughout the 
                        State;
                          (ii) addresses the need for the pre-
                        service and in-service preparation of 
                        personnel throughout the State, 
                        including regular education personnel, 
                        to provide educational services to 
                        children with disabilities;
                          (iii) includes a system or procedures 
                        for recruiting, preparing, and 
                        retaining qualified personnel, 
                        including personnel with disabilities 
                        and personnel from groups that are 
                        underrepresented in the field of 
                        special education and related services; 
                        and
                          (iv) is integrated, to the maximum 
                        extent possible, with other 
                        professional development plans and 
                        activities.
          (14) Personnel standards.--
                  (A) In general.--The State educational agency 
                has established and maintains standards to 
                ensure that personnel necessary to carry out 
                this part are appropriately and adequately 
                prepared and trained.
                  (B) Standards described.--Such standards 
                shall--
                          (i) be consistent with any State-
                        approved or State-recognized 
                        certification, licensing, registration, 
                        or other comparable requirements that 
                        apply to the professional discipline in 
                        which those personnel are providing 
                        special education or related services;
                          (ii) to the extent the standards 
                        described in subparagraph (A) are not 
                        based on the highest requirements in 
                        the State applicable to a specific 
                        profession or discipline, the State is 
                        taking steps to require retraining or 
                        hiring of personnel that meet 
                        appropriate professional requirements 
                        in the State; and
                          (iii) allow paraprofessionals and 
                        assistants who are appropriately 
                        trained and supervised, in accordance 
                        with State law, regulations, or written 
                        policy, in meeting the requirements of 
                        this part to be used to assist in the 
                        provision of special education and 
                        related services to children with 
                        disabilities under this part.
                  (C) Exception.--If the State determines that, 
                within a geographic area of the State there is 
                a shortage of an appropriate number and type of 
                personnel to provide the special education and 
                related services to children with disabilities 
                within such area, and the appropriate public 
                agency has taken steps to recruit and hire such 
                personnel, the State may, subject to public 
                comment and review, temporarily suspend the 
                standards of subparagraph (B)--
                          (i) consistent with State law, for 
                        the purpose of recruiting and hiring 
                        for such shortage areas the most 
                        qualified available individuals who are 
                        making progress in applicable 
                        coursework; and
                          (ii) for a period not to exceed 3 
                        years.
          (15) Performance goals and indicators.--The State--
                  (A) has established goals for the performance 
                of children with disabilities in the State 
                that--
                          (i) will promote the purposes of this 
                        title, as stated in section 601(d); and
                          (ii) are consistent, to the maximum 
                        extent appropriate, with other goals 
                        and standards established by the State;
                  (B) has established performance indicators 
                the State will use to assess progress toward 
                achieving those goals that, at a minimum, 
                address the performance of children with 
                disabilities on assessments, drop-out rates, 
                and graduation rates;
                  (C) will, every two years, report to the 
                Secretary and the public on the progress of the 
                State, and of children with disabilities in the 
                State, toward meeting the goals established 
                under subparagraph (A); and
                  (D) based on its assessment of that progress, 
                will revise its State improvement plan under 
                part D as may be needed to improve its 
                performance, if the State receives assistance 
                under such part.
          (16) Participation in assessments.--
                  (A) In general.--Children with disabilities 
                are included in general State and district-wide 
                assessment programs, with appropriate 
                accommodations, where necessary. As 
                appropriate, the State or local educational 
                agency--
                          (i) develops guidelines for the 
                        participation of children with 
                        disabilities in alternate assessments 
                        for those children who cannot 
                        participate in State and district-wide 
                        assessment programs; and
                          (ii) develops and, beginning not 
                        later than July 1, 1999, conducts those 
                        alternate assessments.
                  (B) Reports.--The State educational agency 
                makes available to the public, and reports to 
                the public with the same frequency and in the 
                same detail as it reports on the assessment of 
                nondisabled children, the following:
                          (i) The number of children with 
                        disabilities participating in regular 
                        assessments.
                          (ii) The number of those children 
                        participating in alternate assessments.
                          (iii) The performance of those 
                        children on regular assessments 
                        (beginning not later than July 1, 1997) 
                        and on alternate assessments (not later 
                        than July 1, 1999), if doing so would 
                        be statistically sound and would not 
                        result in the disclosure of performance 
                        results identifiable to individual 
                        children.
          (17) Supplementation of state, local, and other 
        federal funds.--
                  (A) In general.--The State ensures that 
                amounts provided under a grant to the State 
                under this part, except as provided in 
                subparagraph (B), will be used to supplement 
                State, local, and other Federal funds 
                (including funds not under the direct control 
                of State or local educational agencies) 
                expended for special education and related 
                services, and not to supplant those funds.
                  (B) Waiver.--The Secretary may waive, in 
                whole or in part, the requirements of 
                subparagraph (A) if the Secretary determines 
                that the State has provided clear evidence that 
                all children with disabilities in the State 
                have available a free appropriate public 
                education or that, such a waiver would allow 
                the State to improve the delivery of special 
                education and related services to children with 
                disabilities in the State.
          (18) Public participation.--Prior to the adoption of 
        any policies and procedures needed to comply with this 
        section (including any amendments to such policies and 
        procedures), the State ensures that there are public 
        hearings, adequate notice of the hearings, and an 
        opportunity for comment available to the general 
        public, including individuals with disabilities and 
        parents of children with disabilities.
          (19) State advisory panel.--
                  (A) In General.--The State has established 
                and maintains an advisory panel for the purpose 
                of providing policy guidance with respect to 
                special education and related services for 
                children with disabilities in the State.
                  (B) Membership.--Such advisory panel shall 
                consist of members appointed by the Governor, 
                or any other official authorized under State 
                law to make such appointments, that is 
                representative of the State population and that 
                is composed of individuals involved in, or 
                concerned with, the education of children with 
                disabilities, including--
                          (i) parents of children with 
                        disabilities;
                          (ii) individuals with disabilities;
                          (iii) teachers;
                          (iv) representatives of institutions 
                        of higher education that prepare 
                        special education and related services 
                        personnel;
                          (v) State and local education 
                        officials;
                          (vi) administrators of programs for 
                        children with disabilities;
                          (vii) representatives of other State 
                        agencies involved in the financing or 
                        delivery of related services to 
                        children with disabilities;
                          (viii) at least one representative of 
                        a vocational, community, or business 
                        organization concerned with the 
                        provision of transition services to 
                        children with disabilities; and
                          (ix) representatives from the State 
                        juvenile and adult corrections 
                        agencies.
                  (C) Special rule.--A majority of the members 
                of the panel shall be individuals with 
                disabilities or parents of children with 
                disabilities.
                  (D) Duties.--The advisory panel shall--
                          (i) advise the State educational 
                        agency of unmet needs within the State 
                        in the education of children with 
                        disabilities;
                          (ii) comment publicly on any rules or 
                        regulations proposed by the State 
                        regarding--
                                  (I) the education of children 
                                with disabilities; and
                                  (II) the procedures for 
                                distribution of amounts 
                                received by the State under a 
                                grant under this part;
                          (iii) advise the State educational 
                        agency in developing evaluations and 
                        reporting on data to the Secretary 
                        under section 618;
                          (iv) advise the State educational 
                        agency in developing corrective action 
                        plans to address findings identified in 
                        Federal monitoring reports under this 
                        part; and
                          (v) advise the State educational 
                        agency in developing and implementing 
                        policies relating to the coordination 
                        of services for children with 
                        disabilities.
  (b) State Educational Agency as Provider of Free Appropriate 
Public Education or Direct Services.--If the State educational 
agency provides free appropriate public education to children 
with disabilities, or provides direct services to such 
children, such agency--
          (1) shall comply with any additional requirements of 
        section 613(a), as if such agency were a local 
        educational agency; and
          (2) may use amounts that are otherwise available to 
        such agency under this part to serve those children 
        without regard to section 613(a)(2)(A)(i) (relating to 
        excess costs).
  (c) Exception for Prior State Plans.--
          (1) In general.--If a State has on file with the 
        Secretary policies and procedures that demonstrate that 
        such State meets any requirement of subsection (a), 
        including any policies and procedures filed under this 
        part as in effect before the date of the enactment of 
        the IDEA Improvement Act of 1996, the Secretary shall 
        consider such State to have met such requirement for 
        purposes of receiving a grant under this part.
          (2) Modifications made by state.--Subject to 
        paragraph (3), an application submitted by a State in 
        accordance with this section shall remain in effect 
        until the State submits to the Secretary such 
        modifications as the State deems necessary. This 
        section shall apply to a modification to an application 
        to the same extent and in the same manner as this 
        section applies to the original plan.
          (3) Modifications required by the secretary.--The 
        Secretary may require a State to amend its application 
        at any time as a result of the Secretary's compliance 
        reviews under parts B and C. The Secretary shall reduce 
        or shall not provide any further payments to the State 
        educational agency until the Secretary is satisfied 
        that the State educational agency is complying with 
        that requirement.
  (d) Approval by the Secretary.--
          (1) In general.--If the Secretary determines that a 
        State is eligible to receive a grant under this part, 
        the Secretary shall notify the State of that 
        determination.
          (2) Notice and hearing.--The Secretary shall not make 
        a final determination that a State is not eligible to 
        receive a grant under this part until after providing 
        the State--
                  (A) with reasonable notice; and
                  (B) with an opportunity for a hearing.
  (e) Assistance Under Other Federal Programs.--Nothing in this 
title permits a State to reduce medical and other assistance 
available, or to alter eligibility, under titles V and XIX of 
the Social Security Act with respect to the provision of a free 
appropriate public education for children with disabilities 
within the State.
  (f) By-Pass for Children in Private Schools.--
          (1) In general.--If, on the date of enactment of the 
        Education of the Handicapped Act Amendments of 1983, a 
        State educational agency is prohibited by law from 
        providing for the participation in special programs of 
        children with disabilities enrolled in private 
        elementary and secondary schools as required by 
        subsection (a)(9), the Secretary shall, notwithstanding 
        such provision of law, arrange for the provision of 
        services to such children through arrangements which 
        shall be subject to the requirements of such 
        subsection.
          (2) Payments.--
                  (A) Determination of amounts.--If the 
                Secretary arranges for services pursuant to 
                this subsection, the Secretary, after 
                consultation with the appropriate public and 
                private school officials, shall pay to the 
                provider of such services for a fiscal year an 
                amount per child that does not exceed the 
                amount determined by dividing--
                          (i) the total amount received by the 
                        State under this part for such fiscal 
                        year; by
                          (ii) the number of children with 
                        disabilities served in the prior year, 
                        as reported to the Secretary by the 
                        State under section 618.
                  (B) Withholding of certain amounts.--Pending 
                final resolution of any investigation or 
                complaint that could result in a determination 
                under this subsection, the Secretary may 
                withhold from the allocation of the affected 
                State educational agency the amount the 
                Secretary estimates would be necessary to pay 
                the cost of services described in subparagraph 
                (A).
                  (C) Period of payments.--The period under 
                which payments are made under subparagraph (A) 
                shall continue until the Secretary determines 
                that there will no longer be any failure or 
                inability on the part of the State educational 
                agency to meet the requirements of subsection 
                (a)(9).
          (3) Notice and hearing.--
                  (A) In general.--The Secretary shall not take 
                any final action under this subsection until 
                the State educational agency affected by such 
                action has had an opportunity, for at least 45 
                days after receiving written notice thereof, to 
                submit written objections and to appear before 
                the Secretary or the Secretary's designee to 
                show cause why such action should not be taken.
                  (B) Review of action.--If a State educational 
                agency is dissatisfied with the Secretary's 
                final action after a proceeding under 
                subparagraph (A), such agency may, not later 
                than 60 days after notice of such action, file 
                with the United States court of appeals for the 
                circuit in which such State is located a 
                petition for review of that action. A copy of 
                the petition shall be forthwith transmitted by 
                the clerk of the court to the Secretary. The 
                Secretary thereupon shall file in the court the 
                record of the proceedings on which the 
                Secretary based the Secretary's action, as 
                provided in section 2112 of title 28, United 
                States Code.
                  (C) Review of findings of fact.--The findings 
                of fact by the Secretary, if supported by 
                substantial evidence, shall be conclusive, but 
                the court, for good cause shown, may remand the 
                case to the Secretary to take further evidence, 
                and the Secretary may thereupon make new or 
                modified findings of fact and may modify the 
                Secretary's previous action, and shall file in 
                the court the record of the further 
                proceedings. Such new or modified findings of 
                fact shall likewise be conclusive if supported 
                by substantial evidence.
                  (D) Jurisdiction of court of appeals; review 
                by united states supreme court.--Upon the 
                filing of a petition under subparagraph (B), 
                the United States court of appeals shall have 
                jurisdiction to affirm the action of the 
                Secretary or to set it aside, in whole or in 
                part. The judgment of the court shall be 
                subject to review by the Supreme Court of the 
                United States upon certiorari or certification 
                as provided in section 1254 of title 28, United 
                States Code.

SEC. 613. LOCAL EDUCATIONAL AGENCY REQUIREMENTS.

  (a) In General.--A local educational agency shall be eligible 
for assistance under this part for any fiscal year if, except 
as provided in subsection (b), such agency submits to the State 
educational agency information that demonstrates to the 
satisfaction of the State educational agency the following:
          (1) Consistency with state policies.--The local 
        educational agency, in providing for the education of 
        children with disabilities within its jurisdiction, has 
        in effect policies, procedures, and programs that are 
        consistent with the State policies and procedures 
        established under section 612.
          (2) Use of amounts.--
                  (A) In general.--Amounts provided to the 
                local educational agency under this part--
                          (i) shall be used only to pay the 
                        excess costs of providing special 
                        education and related services to 
                        children with disabilities;
                          (ii) shall be used to supplement 
                        State, local, and other Federal funds 
                        and not to supplant such funds;
                          (iii) except as provided in 
                        subparagraph (B), may not be used to 
                        reduce the level of expenditures for 
                        the education of children with 
                        disabilities made by the local 
                        educational agency from State or local 
                        funds below the level of those 
                        expenditures for the preceding fiscal 
                        year;
                          (iv) may be used, notwithstanding 
                        clause (i) or any other provision of 
                        this part, for the costs of special 
                        education and related services provided 
                        in a regular class or other education 
                        related setting to a child with a 
                        disability in accordance with the 
                        child's individualized education 
                        program, even if one or more 
                        nondisabled children benefit from those 
                        services; and
                          (v) may be used, in accordance with 
                        subsection (f) and notwithstanding 
                        clause (i) or any other provision of 
                        this part, to develop and implement a 
                        coordinated services system.
                  (B) Exception.--Notwithstanding the 
                restriction in subparagraph (A)(iii), a local 
                education agency may reduce the level of 
                expenditures where such reduction is 
                attributable to--
                          (i) the departure, by retirement or 
                        otherwise, of special education 
                        personnel;
                          (ii) a decrease in the enrollment of 
                        children with disabilities;
                          (iii) the termination of the 
                        obligation of the agency, consistent 
                        with this part, to provide a program of 
                        special education to a particular child 
                        with a disability that is an 
                        exceptionally costly program, as 
                        determined by the State educational 
                        agency, because the child--
                                  (I) has left the jurisdiction 
                                of the agency;
                                  (II) has reached the age at 
                                which the obligation of the 
                                agency to provide a free 
                                appropriate public education to 
                                the child has terminated; or
                                  (III) no longer needs such 
                                program of special education; 
                                or
                          (iv) the termination of costly 
                        expenditures for long-term purchases, 
                        such as the acquisition of equipment or 
                        the construction of school facilities.
          (3) Information for state educational agency.--The 
        local educational agency shall provide the State 
        educational agency with information necessary to enable 
        the State educational agency to carry out its duties 
        under this part, including, with respect to paragraphs 
        (14) and (15) of section 612(a), information relating 
        to the performance of children with disabilities 
        participating in programs carried out under this part.
          (4) Public information.--The local educational agency 
        shall make available to parents of children with 
        disabilities and to the general public all documents 
        relating to the eligibility of such agency under this 
        part.
  (b) Exception for Prior Local Plans.--
          (1) In general.--If a local educational agency or 
        State agency has on file with the State educational 
        agency policies and procedures that demonstrate that 
        such local educational agency, or such State agency, as 
        the case may be, meets any requirement of subsection 
        (a), including any policies and procedures filed under 
        this part as in effect before the date of the enactment 
        of IDEA Improvement Act of 1996, the State educational 
        agency shall consider such local educational agency or 
        State agency, as the case may be, to have met such 
        requirement for purposes of receiving assistance under 
        this part.
          (2) Modification made by local educational agency.--
        Subject to paragraph (3), an application submitted by a 
        local educational agency in accordance with this 
        section shall remain in effect until the such agency 
        submits to the State educational agency such 
        modifications as the local educational agency deems 
        necessary.
          (3) Modifications required by state educational 
        agency.--The State educational agency may require a 
        local educational agency to amend its application at 
        anytime as a result of the compliance reviews of the 
        State educational agency under parts B and C. This 
        paragraph shall apply to a modification to an 
        application to the same extent and in the same manner 
        as this section applies to the original plan.
  (c) Notification of Local Educational Agency or State Agency 
in Case of Ineligibility.--If the State educational agency 
determines that a local educational agency or State agency is 
not eligible under this section, the State educational agency 
shall notify such local educational agency or State agency, as 
the case may be, of that determination and shall provide such 
local educational agency or State agency with reasonable notice 
and an opportunity for a hearing.
  (d) Local Educational Agency Compliance.--
          (1) In general.--If the State educational agency, 
        after reasonable notice and an opportunity for a 
        hearing, finds that a local educational agency or State 
        agency that has been determined to be eligible under 
        this section is failing to comply with any requirement 
        described in subsection (a), the State educational 
        agency shall reduce or shall not provide any further 
        payments to the local educational agency or State 
        agency until the State educational agency is satisfied 
        that the local educational agency or State agency, as 
        the case may be, is complying with that requirement.
          (2) Additional requirement.--Any State educational 
        agency, State agency, or local educational agency in 
        receipt of a notice pursuant to the notice described in 
        paragraph (1) shall, by means of public notice, take 
        such measures as may be necessary to bring the pendency 
        of an action pursuant to this subsection to the 
        attention of the public within the jurisdiction of such 
        agency.
          (3) Consideration.--In carrying out its 
        responsibilities under paragraph (1), the State 
        educational agency shall consider any decision made in 
        a hearing held under section 615 that is adverse to the 
        local educational agency or State agency involved in 
        that decision.
  (e) Joint Establishment of Eligibility.--
          (1) In general.--A State educational agency may 
        require a local educational agency to establish its 
        eligibility jointly with another local educational 
        agency if the State educational agency determines that 
        the local educational agency would be ineligible under 
        this section because the local educational agency would 
        not be able to establish and maintain programs of 
        sufficient size and scope to effectively meet the needs 
        of children with disabilities.
          (2) Amount of payments.--If a State educational 
        agency requires the joint establishment of eligibility 
        under paragraph (1), the total amount of funds made 
        available to the affected local educational agencies 
        shall be equal to the sum of the payments that each 
        such local educational agency would have received under 
        section 611(c) if such agencies were eligible for such 
        payments.
          (3) Requirements.--Local educational agencies that 
        establish joint eligibility under this subsection 
        shall--
                  (A) adopt policies and procedures that are 
                consistent with the State's policies and 
                procedures under section 612(a); and
                  (B) be jointly responsible for implementing 
                programs that receive assistance under this 
                part.
          (4) Requirements for educational service agencies.--
                  (A) In general.--If an educational service 
                agency is required by State law to carry out 
                programs under this part, the joint 
                responsibilities given to local educational 
                agencies under this subsection shall--
                          (i) not apply to the administration 
                        and disbursement of any payments 
                        received by that educational service 
                        agency; and
                          (ii) be carried out only by that 
                        educational service agency.
                  (B) Additional requirement.--Notwithstanding 
                any other provision of this subsection, an 
                educational service agency shall provide for 
                the education of children with disabilities in 
                the least restrictive environment, as required 
                by section 612(a)(4).
  (f) Coordinated Services System.--
          (1) In general.--A local educational agency may not 
        use more than 5 percent of the amount such agency 
        receives under this part for any fiscal year, in 
        combination with other amounts (which shall include 
        amounts other than education funds), to develop and 
        implement a coordinated services system designed to 
        improve results for children and families, including 
        children with disabilities and their families.
          (2) Activities.--In implementing a coordinated 
        services system under this subsection, a local 
        educational agency may carry out activities which 
        include--
                  (A) improving the effectiveness and 
                efficiency of service delivery, including 
                developing strategies that promote 
                accountability for results;
                  (B) service coordination and case management 
                that facilitates the linkage of individualized 
                education programs under this part and 
                individualized family service plans under part 
                C with individualized service plans under 
                multiple Federal and State programs, such as 
                title I of the Rehabilitation Act of 1973 
                (vocational rehabilitation), title XIX of the 
                Social Security Act (Medicaid), and title XVI 
                of the Social Security Act (supplemental 
                security income);
                  (C) developing and implementing interagency 
                financing strategies for the provision of 
                education, health, mental health, and social 
                services, including transition services and 
                related services under this title; and
                  (D) interagency personnel development for 
                individuals working on coordinated services.
          (3) Coordination with certain projects under 
        elementary and secondary education act of 1965.--If a 
        local educational agency is carrying out a coordinated 
        services project under title XI of the Elementary and 
        Secondary Education Act of 1965 and a coordinated 
        services project under this part in the same schools, 
        such agency shall use amounts under this subsection in 
        accordance with the requirements of that title.
  (g) Direct Services by the State Educational Agency.--
          (1) In general.--A State educational agency shall use 
        the payments that would otherwise have been available 
        to a local educational agency or to a State agency to 
        provide special education and related services directly 
        to children with disabilities residing in the area 
        served by that local agency, or for whom that State 
        agency is responsible, if the State educational agency 
        determines that the local education agency or State 
        agency, as the case may be--
                  (A) has not provided the information needed 
                to establish the eligibility of such agency 
                under this section;
                  (B) is unable to establish and maintain 
                programs of free appropriate public education 
                that meet the requirements of subsection (a);
                  (C) is unable or unwilling to be consolidated 
                with one or more local educational agencies in 
                order to establish and maintain such programs; 
                or
                  (D) has one or more children with 
                disabilities who can best be served by a 
                regional or State program or service delivery 
                system designed to meet the needs of such 
                children.
          (2) Manner and location of education and services.--
        The State educational agency may provide special 
        education and related services under paragraph (1) in 
        such manner and at such locations (including regional 
        or State centers) as the State agency considers 
        appropriate. Such education and services shall be 
        provided in accordance with this part.
  (h) State Agency Eligibility.--Any State agency that desires 
to receive a subgrant for any fiscal year under section 611(c) 
shall demonstrate to the satisfaction of the State educational 
agency that--
          (1) all children with disabilities who are 
        participating in programs and projects funded under 
        this part receive a free appropriate public education, 
        and that those children and their parents are provided 
        all the rights and procedural safeguards described in 
        this part; and
          (2) the agency meets such other conditions of this 
        section as the Secretary determines to be appropriate.

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

  (a) Evaluations and Reevaluations.--
          (1) Initial evaluations.--
                  (A) In general.--A State educational agency, 
                other State agency, or local educational agency 
                shall conduct an initial evaluation, in 
                accordance with this paragraph and subsection 
                (b), before the initial provision of special 
                education and related services to a child with 
                a disability under this part.
                  (B) Procedures.--Such initial evaluation 
                shall consist of procedures--
                          (i) to determine whether a child is a 
                        child with a disability (as defined in 
                        section 602(3)); and
                          (ii) to determine the educational 
                        needs of such child.
                  (C) Parental consent.--
                          (i) In general.--The agency proposing 
                        to conduct an initial evaluation to 
                        determine if the child qualifies as a 
                        child with a disability as defined in 
                        section 602(3)(A) or 602(3)(B) shall 
                        obtain an informed consent from the 
                        parent of such child before the 
                        evaluation is conducted. Parental 
                        consent for evaluation shall not be 
                        construed as consent for placement for 
                        receipt of special education and 
                        related services.
                          (ii) Refusal.--If the parents of such 
                        child refuse consent for the 
                        evaluation, the agency may continue to 
                        pursue an evaluation by utilizing the 
                        mediation and due process procedures 
                        under section 615(e).
          (2) Reevaluations.--A local educational agency shall 
        ensure that a reevaluation of each child with a 
        disability is conducted--
                  (A) if conditions warrant a reevaluation or 
                if the child's parent or teacher requests a 
                reevaluation, but at least once every 3 years; 
                and
                  (B) in accordance with subsections (b) and 
                (c).
  (b) Evaluation Procedures.--
          (1) Notice.--The local educational agency shall 
        provide notice to the parents of a child with a 
        disability, in accordance with subsections (b)(3), 
        (b)(4), and (c) of section 615, that describes any 
        evaluation procedures such agency proposes to conduct.
          (2) Conduct of evaluation.--In conducting the 
        evaluation, the local educational agency shall--
                  (A) use a variety of assessment tools and 
                strategies to gather relevant functional and 
                developmental information, including 
                information provided by the parent, that may 
                assist in determining whether the child is a 
                child with a disability and the content of the 
                child's individualized education program, 
                including information related to enabling the 
                child to be involved in and progress in the 
                general curriculum or, for preschool children, 
                to participate in appropriate activities;
                  (B) not use any single procedure as the sole 
                criterion for determining whether a child is a 
                child with a disability or determining an 
                appropriate educational program for the child; 
                and
                  (C) use technically sound instruments that 
                may assess the relative contribution of 
                cognitive and behavioral factors, in addition 
                to physical or developmental factors.
          (3) Additional requirements.--Each local educational 
        agency shall ensure that--
                  (A) tests and other evaluation materials used 
                to assess a child under this section--
                          (i) are selected and administered so 
                        as not to be discriminatory on a racial 
                        or cultural basis; and
                          (ii) are provided and administered in 
                        the child's native language or other 
                        mode of communication, unless it is 
                        clearly not feasible to do so; and
                  (B) any standardized tests that are given to 
                the child--
                          (i) have been validated for the 
                        specific purpose for which they are 
                        used;
                          (ii) are administered by qualified 
                        personnel; and
                          (iii) are administered in accordance 
                        with any instructions provided by the 
                        producer of such tests; and
                  (C) the child is assessed in all areas of 
                suspected disability.
          (4) Determination of eligibility.--Upon completion of 
        administration of tests and other evaluation 
        materials--
                  (A) the determination of whether the child is 
                a child with a disability as defined in section 
                602(3) or section 602(3)(B) will be made by a 
                team of qualified professionals and the parent 
                of the child in accordance with paragraph (5); 
                and
                  (B) a copy of the evaluation report and the 
                documentation of determination of eligibility 
                will be given to the parent.
          (5) Special rule for eligibility determination.--In 
        making a determination of eligibility under paragraph 
        (4)(A), a child shall not be determined to be a child 
        with a disability based on any of the following:
                  (A) Lack of instruction, including 
                instruction in reading or math.
                  (B) Limited English proficiency.
                  (C) Cultural or environmental factors.
                  (D) Economic disadvantage.
  (c) Reevaluation Procedures.--
          (1) In general.--As part of any reevaluation to 
        assess a child under this section, the individualized 
        education program team and other qualified 
        professionals, as appropriate, shall--
                  (A) review existing evaluation data on the 
                child, including current classroom-based 
                assessments and teacher and related services 
                providers observation; and
                  (B) on the basis of that review and input 
                from the child's parents, identify what 
                additional data, if any, are needed to 
                determine--
                          (i) whether the child continues to 
                        have a disability, as described in 
                        section 602(3)(A)(i) or section 
                        602(3)(B);
                          (ii) the child's present levels of 
                        performance and educational needs; and
                          (iii)(I) whether the child continues 
                        to need special education and related 
                        services; and
                          (II) if so, any additions or 
                        modifications to the special education 
                        and related services to enable the 
                        child to meet the objectives set out in 
                        the individualized education program of 
                        the child and to participate, as 
                        appropriate, in the general curriculum.
          (2) Tests and other evaluation materials.--The local 
        educational agency shall administer such tests and 
        other evaluation materials as may be needed to produce 
        the data identified by the IEP Team under paragraph 
        (1)(B).
          (3) Requirements if additional data not needed.--If 
        the IEP Team and other qualified professionals, as 
        appropriate, determines that no additional data are 
        needed to determine whether the child continues to be a 
        child with a disability, the local educational agency--
                  (A) shall notify the child's parents of--
                          (i) that determination and the 
                        reasons for it; and
                          (ii) the right of such parents to 
                        request an assessment to determine 
                        whether the child continues to be a 
                        child with a disability; and
                  (B) shall not be required to conduct such an 
                assessment unless requested to by the child's 
                parents.
  (d) Individualized Education Programs.--
          (1) Requirement that program be in effect.--
                  (A) In general.--At the beginning of each 
                school year, each local educational agency, or 
                State educational agency, as the case may be, 
                shall have in effect, for each child with a 
                disability in its jurisdiction, an 
                individualized education program, as defined in 
                section 602(11).
                  (B) Program for child aged 3 to 5.--In the 
                case of a child with a disability aged 3 to 5, 
                inclusive, an individualized family service 
                plan that contains the material described in 
                section 636, and that is developed in 
                accordance with this section, may serve as the 
                IEP of the child if using that plan as the IEP 
                is--
                          (i) consistent with State policy; and
                          (ii) agreed to by the agency and the 
                        child's parents.
          (2) Development of iep.--
                  (A) In general.--An individualized education 
                program team shall develop the IEP described in 
                paragraph (1). In developing such IEP, the IEP 
                Team, subject to subparagraph (B), shall--
                          (i) consider the child's strengths 
                        and the parents' concerns for enhancing 
                        their child's education;
                          (ii) consider the results of the 
                        initial evaluation or most recent 
                        reevaluation;
                          (iii) in the case of a child whose 
                        behavior impedes his or her learning or 
                        that of others, consider, when 
                        appropriate, strategies, including 
                        positive behavior management 
                        interventions and strategies to help 
                        the child behave in an appropriate and 
                        responsible manner conducive to 
                        learning;
                          (iv) in the case of a child with 
                        limited English proficiency, consider 
                        the language needs of the child as such 
                        needs relate to the child's IEP;
                          (v) in the case of a child who is 
                        blind or visually impaired, provide for 
                        instruction in braille and the use of 
                        braille unless all members of the IEP 
                        Team concur that, after an evaluation 
                        of the child's reading and writing 
                        skills, needs, and appropriate reading 
                        and writing media (including an 
                        evaluation of the child's future needs 
                        for instruction in braille or the use 
                        of braille), instruction in braille or 
                        the use of braille is not appropriate 
                        for the child;
                          (vi) consider the communication needs 
                        of the child, and in the case of a 
                        child who is deaf, hard-of-hearing, 
                        blind, or communicatively disabled, 
                        consider the language and communication 
                        needs of the child; and
                          (vii) consider whether the child 
                        requires assistive technology services 
                        or devices.
                  (B) Requirement with respect to regular 
                education teacher.--The regular education 
                teacher of the child, as a member of the IEP 
                Team, shall, to the extent appropriate, 
                participate in the development of the IEP of 
                the child, including the determination of 
                appropriate behavior-management techniques 
                consistent with subparagraph (A)(iii) of this 
                paragraph, and the determination of 
                supplementary aids and services, program 
                modifications, and support for school personnel 
                consistent with section 602(11)(E).
          (3) Review and revision of iep.--
                  (A) In general.--The local educational agency 
                shall ensure that, subject to subparagraphs (B) 
                and (C), the IEP Team--
                          (i) reviews each IEP at least once a 
                        year to determine whether the annual 
                        objectives for the child are being 
                        achieved; and
                          (ii) revises the IEP to address--
                                  (I) any lack of expected 
                                progress toward the annual 
                                objectives and in the general 
                                curriculum, where appropriate;
                                  (II) the results of any 
                                reevaluation conducted under 
                                this section;
                                  (III) information about the 
                                child provided to, or by, the 
                                parents, as described in 
                                section 602(11)(F)(ii); or
                                  (IV) the child's anticipated 
                                needs as otherwise appropriate.
                  (B) Certain children with disabilities.--
                          (i) In general.--In the case of a 
                        child with a disability who has 
                        demonstrated a pattern of behavior that 
                        significantly impairs the education of 
                        the child, or the education of the 
                        classmates of the child, and the 
                        ability of the teacher of the child to 
                        teach, if such teacher initiates or 
                        requests an IEP meeting, then the 
                        appropriate authority shall convene an 
                        IEP meeting to review the child's 
                        educational program, related services, 
                        supplementary aids and services, and 
                        placement.
                          (ii) Review of iep.--In carrying out 
                        a review of the IEP of the child, the 
                        IEP Team shall determine--
                                  (I) the appropriateness of 
                                the current IEP of the child;
                                  (II) whether or not special 
                                education and related services 
                                have been appropriately 
                                provided to the child;
                                  (III) whether or not other 
                                supplementary aids or services, 
                                including teacher training, are 
                                needed to address the behavior 
                                of the child; and
                                  (IV) subject to clauses (iii) 
                                and (iv), whether or not the 
                                placement of the child should 
                                be changed.
                          (iii) Determination of change in 
                        placement.--Prior to proposing a change 
                        in the placement of the child, the IEP 
                        Team shall first consider and then 
                        document the following:
                                  (I) The cumulative record 
                                over a reasonable period of 
                                time describing the frequent 
                                behaviors exhibited by the 
                                child that significantly 
                                impairs the education of the 
                                child, the education of the 
                                classmates of the child, and 
                                the ability of the teacher of 
                                the child to teach.
                                  (II) Documentation of the 
                                efforts made to address the 
                                behavior of the child, the use 
                                of supplementary services or 
                                strategies (including the use 
                                of behavior management plans) 
                                that have been implemented over 
                                a reasonable period of time and 
                                have failed to address the 
                                behavior of the child in a 
                                manner that would enable the 
                                child to remain in the current 
                                educational placement of the 
                                child without significantly 
                                impairing the education of the 
                                child, the education of the 
                                classmates of the child, and 
                                the ability of the teacher of 
                                the child to teach.
                                  (III) The training made 
                                available to the teacher or 
                                teachers of the child.
                          (iv) Expedited due process hearing.--
                        If the IEP Team determines that a 
                        change in placement of the child is 
                        appropriate, and the parents of the 
                        child disagree with such determination, 
                        then either party may request an 
                        expedited due process hearing in 
                        accordance with section 615(f)(2).
                  (C) Requirement with respect to regular 
                education teacher.--The regular education 
                teacher of the child, as a member of the IEP 
                Team, shall, to the extent appropriate, 
                participate in the review and revision of the 
                IEP of the child.
          (4) Failure to meet transition objectives.--If a 
        participating agency, other than the local educational 
        agency, fails to provide the transition services 
        described in the IEP in accordance with section 
        602(11)(F)(ii), the local educational agency shall 
        reconvene the IEP Team to identify alternative 
        strategies to meet the transition objectives for the 
        child set out in that program.
          (5) Rule of construction.--Nothing in this subsection 
        shall be construed--
                  (A) to decrease the amount of information 
                that a parent receives concerning the progress 
                of the child of such parent; or
                  (B) to increase the amount of paperwork for 
                the teachers, related services personnel, and 
                administrators of such child.
  (e) Educational Placements.--Each local educational agency or 
State educational agency shall ensure that the parents of each 
child with a disability are members of any group that makes 
decisions on the educational placement of their child.

SEC. 615. PROCEDURAL SAFEGUARDS.

  (a) Establishment of Procedures.--Any State educational 
agency or local educational agency that receives assistance 
under this part shall establish and maintain procedures in 
accordance with this section to assure that children with 
disabilities and their parents are guaranteed procedural 
safeguards with respect to the provision of free appropriate 
public education by such agencies.
  (b) Types of Procedures.--The procedures required by this 
section shall include--
          (1) an opportunity for the parents of a child with a 
        disability to examine all records relating to such 
        child and to participate in meetings with respect to 
        the identification, evaluation, and educational 
        placement of the child, and the provision of a free 
        appropriate public education to such child, and to 
        obtain an independent educational evaluation of the 
        child;
          (2) procedures to protect the rights of the child 
        whenever the parents of the child are not known, the 
        agency cannot, after reasonable efforts, locate the 
        parents, or the child is a ward of the State, including 
        the assignment of an individual (who shall not be an 
        employee of the State educational agency, the local 
        educational agency, or any other agency that is 
        involved in the education or care of the child) to act 
        as a surrogate for the parents;
          (3) written prior notice to the parents of the child 
        whenever such agency--
                  (A) proposes to initiate or change; or
                  (B) refuses to initiate or change;
        the identification, evaluation, or educational 
        placement of the child, in accordance with subsection 
        (c), or the provision of a free appropriate public 
        education to the child;
          (4) procedures designed to assure that the notice 
        required by paragraph (3) is in the native language of 
        the parents, unless it clearly is not feasible to do 
        so;
          (5) an opportunity for mediation in accordance with 
        subsection (e);
          (6) an opportunity to present complaints with respect 
        to any matter relating to the identification, 
        evaluation, or educational placement of the child, or 
        the provision of a free appropriate public education to 
        such child;
          (7) procedures that require the parent of a child 
        with a disability, or the attorney representing the 
        child, to provide notice (which shall remain 
        confidential)--
                  (A) to the State educational agency or local 
                educational agency, as the case may be, in the 
                complaint filed under paragraph (6); and
                  (B) that shall include--
                          (i) the name of the child, the 
                        address of the residence of the child, 
                        and the name of the school at which the 
                        child is attending;
                          (ii) a description of the nature of 
                        the problem of the child relating to 
                        such proposed initiation or change, 
                        including facts relating to such 
                        problem; and
                          (iii) the proposed resolution of the 
                        problem; and
          (8) procedures that require the State educational 
        agency to develop a model form to assist parents in 
        filing a complaint in accordance with paragraph (7).
  (c) Content of Prior Written Notice.--The notice required by 
subsection (b)(3) shall include--
          (1) a description of the action proposed or refused 
        by the agency;
          (2) an explanation of why the agency proposes or 
        refuses to take the action;
          (3) a description of any other options that the 
        agency considered and the reasons why those options 
        were rejected;
          (4) a description of each evaluation procedure, test, 
        record, or report the agency used as a basis for the 
        proposed or refused action;
          (5) a description of any other factors that are 
        relevant to the agency's proposal or refusal; and
          (6) a statement that the parents of a child with a 
        disability have protection under the procedural 
        safeguards of this title and, if this notice is not an 
        initial referral for evaluation, the means by which a 
        copy of a description of the procedural safeguards can 
        be obtained.
  (d) Procedural Safeguards Notice.--
          (1) In general.--A copy of the procedural safeguards 
        available to the parents of a child with a disability 
        shall be given to the parents, at a minimum--
                  (A) upon initial referral for evaluation;
                  (B) upon each notification of an 
                individualized education program meeting and 
                upon reevaluation of the child; and
                  (C) upon registration of a complaint under 
                subsection (b)(6).
          (2) Contents.--The procedural safeguards notice shall 
        include a full explanation of the procedural safeguards 
        written in the native language of the parents, unless 
        not feasible to do so, and written in an easily 
        understandable manner, available under this section and 
        under regulations promulgated by the Secretary relating 
        to--
                  (A) independent educational evaluation;
                  (B) prior written notice;
                  (C) parental consent;
                  (D) access to educational records;
                  (E) opportunity to present complaints;
                  (F) the child's placement during pendency of 
                due process proceedings;
                  (G) procedures for students who are subject 
                to placement in an interim alternative 
                educational setting;
                  (H) requirements for unilateral placement by 
                parents of children in private schools at 
                public expense;
                  (I) mediation;
                  (J) due process hearings, including 
                requirements for disclosure of evaluation 
                results and recommendations;
                  (K) State-level appeals (if applicable in 
                that State);
                  (L) civil actions; and
                  (M) attorney's fees.
  (e) Mediation.--
          (1) In general.--Any State educational agency or 
        local educational agency that receives assistance under 
        this part shall ensure that procedures are established 
        and implemented to allow parties to disputes involving 
        the provision of free appropriate public education to 
        children with disabilities by any such State 
        educational agency or local educational agency to 
        resolve such disputes through a mediation process.
          (2) Requirements.--Such procedures shall meet the 
        following requirements:
                  (A) The procedures shall ensure that the 
                mediation process--
                          (i) is voluntary on the part of the 
                        parents and may be terminated by either 
                        party after a good faith effort has 
                        been made by the party terminating the 
                        mediation process; and
                          (ii) is conducted by a qualified and 
                        impartial mediator who is trained in 
                        effective mediation techniques.
                  (B) The State shall maintain a list of 
                individuals who are qualified mediators and 
                knowledgeable in laws and regulations relating 
                to the provision of special education and 
                related services.
                  (C) The State shall bear the cost of the 
                mediation process.
                  (D) Each session in the mediation process 
                shall be scheduled in a timely manner and shall 
                be held in a location that is convenient to the 
                parties to the dispute.
                  (E) An agreement reached by the parties to 
                the dispute in the mediation process shall be 
                set forth in a written mediation agreement.
                  (F) Discussions that occur during the 
                mediation process shall be confidential and may 
                not be used as evidence in any subsequent due 
                process hearings or civil proceedings, and the 
                parties to the mediation process may be 
                required to sign a confidentiality pledge prior 
                to the commencement of such process.
                  (G) The State shall determine whether or not 
                attorneys may attend or otherwise participate 
                in the mediation process after offering the 
                opportunity for parents and representatives of 
                school districts to participate in the 
                mediation process prior to any due process 
                filing without attorneys present.
  (f) Impartial Due Process Hearing.--
          (1) In general.--Whenever a complaint has been 
        received under section 614(d)(3)(B), or subsection 
        (b)(6) or (k) of this section, the parents involved in 
        such complaint shall have an opportunity for an 
        impartial due process hearing which shall be conducted 
        by the State educational agency or by the local 
        educational agency, as determined by State law or by 
        the State educational agency.
          (2) Disclosure of evaluations and recommendations.--
                  (A) In general.--At least 10 school days 
                prior to a hearing conducted pursuant to 
                paragraph (1), each party shall disclose to all 
                other parties all evaluations and 
                recommendations based on the offering party's 
                evaluations which the party intends to use at 
                the hearing.
                  (B) Prohibition.--Any party which fails to 
                meet the requirement of subparagraph (A) shall 
                be barred from introducing such evaluations and 
                recommendations at such hearing.
          (3) Limitation on conduct of hearing.--A hearing 
        conducted pursuant to paragraph (1) may not be 
        conducted by an employee of the State educational 
        agency or the local educational agency involved in the 
        education or care of the child.
          (4) Additional requirements with respect to hearings 
        for certain children with disabilities.--A hearing 
        conducted pursuant to paragraph (1) that is based upon 
        a complaint received under section 614(d)(3)(B) shall, 
        in addition to the requirements contained in this 
        subsection, comply with the following additional 
        requirements:
                  (A) In determining whether or not the 
                decision by the IEP Team to change the 
                placement of the child is justified and 
                appropriate, the hearing officer shall, at a 
                minimum, review the information under clause 
                (iii) of such section.
                  (B) The child shall remain in the current 
                educational placement of the child until the 
                hearing officer reaches a final decision under 
                this subsection.
                  (C) The hearing officer shall make a 
                determination of findings and reach a final 
                decision not later than 20 days after the first 
                day of the hearing, or, at the discretion of 
                the hearing officer, not later than 30 days 
                after such first day of the hearing.
                  (D) The placement of the child, including the 
                placement of the child during any due process 
                or judicial proceeding, shall be determined in 
                accordance with the final decision of the 
                hearing officer under this subsection, unless 
                the parents and the State or local educational 
                agency agree otherwise.
  (g) Appeal.--If the hearing required by subsection (f) is 
conducted by a local educational agency, any party aggrieved by 
the findings and decision rendered in such a hearing may appeal 
such findings and decision to the State educational agency. 
Such agency shall conduct an impartial review of such decision. 
The officer conducting such review shall make an independent 
decision upon completion of such review.
  (h) Safeguards.--Any party to a hearing conducted pursuant to 
subsection (f), or an appeal conducted pursuant to subsection 
(g), shall be accorded--
          (1) the right to be accompanied and advised by 
        counsel and by individuals with special knowledge or 
        training with respect to the problems of children with 
        disabilities;
          (2) the right to present evidence and confront, 
        cross-examine, and compel the attendance of witnesses;
          (3) the right to a written, or, at the option of the 
        parents, electronic verbatim record of such hearing; 
        and
          (4) the right to written, or, at the option of the 
        parents, electronic findings of fact and decisions 
        (which findings and decisions shall be made available 
        to the public consistent with the requirements of 
        section 617(c) (relating to the confidentiality of 
        data, information, and records) and shall also be 
        transmitted to the advisory panel established pursuant 
        to section 612(a)(18)).
  (i) Administrative Procedures.--
          (1) In general.--A decision made in a hearing 
        conducted pursuant to subsection (f) shall be final, 
        except that any party involved in such hearing may 
        appeal such decision under the provisions of subsection 
        (g) and paragraph (2) of this subsection.
          (2) Right to bring civil action.--
                  (A) In general.--Any party aggrieved by the 
                findings and decision made under subsection (f) 
                who does not have the right to an appeal under 
                subsection (g), and any party aggrieved by the 
                findings and decision under this subsection, 
                shall have the right to bring a civil action 
                with respect to the complaint presented 
                pursuant to this section, which action may be 
                brought in any State court of competent 
                jurisdiction or in a district court of the 
                United States without regard to the amount in 
                controversy.
                  (B) Additional requirements.--In any action 
                brought under this paragraph the court--
                          (i) shall receive the records of the 
                        administrative proceedings;
                          (ii) may hear additional evidence at 
                        the request of a party; and
                          (iii) basing its decision on the 
                        preponderance of the evidence, shall 
                        grant such relief as the court 
                        determines is appropriate.
          (3) Jurisdiction of district courts; attorneys' 
        fees.--
                  (A) In general.--The district courts of the 
                United States shall have jurisdiction of 
                actions brought under this section without 
                regard to the amount in controversy.
                  (B) Award of attorneys' fees.--In any action 
                or proceeding brought under this section, the 
                court, in its discretion, may award reasonable 
                attorneys' fees as part of the costs to the 
                parents of a child or youth with a disability 
                who is the prevailing party.
                  (C) Determination of amount of attorneys' 
                fees.--Fees awarded under this paragraph shall 
                be based on rates prevailing in the community 
                in which the action or proceeding arose for the 
                kind and quality of services furnished. No 
                bonus or multiplier may be used in calculating 
                the fees awarded under this subsection.
                  (D) Prohibition of attorneys' fees and 
                related costs for certain services.--(i) 
                Attorneys' fees may not be awarded and related 
                costs may not be reimbursed in any action or 
                proceeding under this subsection for services 
                performed subsequent to the time of a written 
                offer of settlement to a parent if--
                          (I) the offer is made within the time 
                        prescribed by Rule 68 of the Federal 
                        Rules of Civil Procedure or, in the 
                        case of an administrative proceeding, 
                        at any time more than ten days before 
                        the proceeding begins;
                          (II) the offer is not accepted within 
                        10 days; and
                          (III) the court or administrative 
                        officer finds that the relief finally 
                        obtained by the parents is not more 
                        favorable to the parents than the offer 
                        of settlement.
                  (ii) Attorneys' fees may not be awarded 
                relating to any meeting of the IEP Team unless 
                such meeting is convened as a result of a 
                judicial action or proceeding.
                  (E) Exception to prohibition on attorneys' 
                fees and related costs.--Notwithstanding 
                subparagraph (D), an award of attorneys' fees 
                and related costs may be made to a parent who 
                is the prevailing party and who was 
                substantially justified in rejecting the 
                settlement offer.
                  (F) Reduction in amount of attorneys' fees.--
                Except as provided in subparagraph (G), 
                whenever the court finds that--
                          (i) the parent, during the course of 
                        the action or proceeding, unreasonably 
                        protracted the final resolution of the 
                        controversy;
                          (ii) the amount of the attorneys' 
                        fees otherwise authorized to be awarded 
                        unreasonably exceeds the hourly rate 
                        prevailing in the community for similar 
                        services by attorneys of reasonably 
                        comparable skill and experience;
                          (iii) the time spent and legal 
                        services furnished were excessive 
                        considering the nature of the action or 
                        proceeding;
                          (iv) the attorney representing the 
                        parent did not provide to the school 
                        district the appropriate information in 
                        the due process complaint in accordance 
                        with subsection (b)(7); or
                          (v) the amount of attorneys' fees 
                        requested is not consistent with the 
                        extent of the success of the parents;
                the court shall reduce, accordingly, the amount 
                of the attorneys' fees awarded under this 
                subsection.
                  (G) Exception to reduction in amount of 
                attorneys' fees.--The provisions of 
                subparagraph (F) shall not apply in any action 
                or proceeding if the court finds that the State 
                or local educational agency unreasonably 
                protracted the final resolution of the action 
                or proceeding or there was a violation of this 
                section.
  (j) Maintenance of Current Educational Placement.--Except as 
provided in subsection (k), during the pendency of any 
proceedings conducted pursuant to this section, unless the 
State or local educational agency and the parents otherwise 
agree, the child shall remain in the then current educational 
placement of such child, or, if applying for initial admission 
to a public school, shall, with the consent of the parents, be 
placed in the public school program until all such proceedings 
have been completed.
  (k) Placement in Alternative Educational Setting.--
          (1) Authority of school personnel.--School personnel 
        under this section may, to the same extent as a court, 
        order a change in the placement of a child with a 
        disability--
                  (A) to an appropriate interim alternative 
                educational setting, another setting, or 
                suspension, for not more than 10 school days 
                (to the extent such alternatives would be 
                applied to children without disabilities); and
                  (B) to an appropriate interim alternative 
                educational setting for the same amount of time 
                that a child without a disability would be 
                subject to discipline, but for not more than an 
                additional 45 school days if--
                          (i) the child carries a weapon to 
                        school or to a school function under 
                        the jurisdiction of a State or a local 
                        educational agency;
                          (ii) the child possesses or uses 
                        illegal drugs or sells or solicits the 
                        sale of medications or illegal drugs 
                        while at school or a school function 
                        under the jurisdiction of a State or 
                        local educational agency; or
                          (iii) the child causes serious injury 
                        while at school or at a school function 
                        under the jurisdiction of a State or a 
                        local educational agency.
          (2) Authority of hearing officer.--A hearing officer 
        under this section may, to the same extent as a court, 
        order a change in the placement of a child with a 
        disability to an appropriate interim alternative 
        educational setting for not more than 45 school days 
        if--
                  (A) the maintenance of the current placement 
                of such child is substantially likely to result 
                in injury to the child or to others; and
                  (B) the hearing officer--
                          (i) determines that the public agency 
                        has demonstrated by substantial 
                        evidence that the requirement of 
                        subparagraph (A) has been met;
                          (ii) considers the appropriateness of 
                        the child's current placement; and
                          (iii) considers whether the public 
                        agency has made reasonable efforts to 
                        minimize the risk of harm including the 
                        use of supplementary aids and services.
          (3) Determination of setting.--The alternative 
        educational setting described in paragraph (1) or 
        paragraph (2) shall be determined by the individualized 
        education program team.
          (4) Manifestation determination review.--
                  (A) In general.--If a change in placement or 
                disciplinary proceeding, including expulsion, 
                is contemplated as a result of an action 
                described in paragraph (1) or paragraph (2)--
                          (i) not later than 3 school days 
                        after the date on which such action has 
                        been taken the parents shall be 
                        notified of such action; and
                          (ii) not later than 15 school days 
                        after the date on which such action has 
                        been taken a review shall be conducted 
                        of the relationship between the child's 
                        disability and the behavior described 
                        in paragraph (1).
                  (B) Individuals to carry out review.--A 
                review described in subparagraph (A) shall be 
                conducted by the IEP Team and other qualified 
                personnel.
                  (C) Conduct of review.--In carrying out a 
                review described in subparagraph (A), the 
                individuals described in subparagraph (B) shall 
                consider appropriate factors, including--
                          (i) the appropriateness of the 
                        child's placement;
                          (ii) the consistency of the 
                        implementation of the child's entire 
                        IEP, including the technical soundness 
                        of the behavior strategies used;
                          (iii) evaluation and diagnostic 
                        results, which may include any such 
                        results supplied by the parents or 
                        guardian of the child; and
                          (iv) observations of the child.
          (5) Determination that behavior was manifestation of 
        disability.--If the result of the review described in 
        paragraph (4) is a determination that the behavior of 
        the child with a disability was a manifestation of such 
        child's disability and the parents of such child agree 
        with such determination, the educational placement of 
        such child may be changed. If the parents do not agree 
        with such determination or with such changed 
        educational placement, an immediate appeal may be made 
        to a hearing officer to determine whether the child's 
        placement should be changed. Any party aggrieved by the 
        determination of the hearing officer may initiate a due 
        process hearing as described in subsection (f).
          (6) Determination that behavior was not manifestation 
        of disability.--
                  (A) In general.--
                          (i) Initial determination 
                        requirement.--The IEP Team may 
                        determine that the behavior of the 
                        child was not a manifestation of such 
                        child's disability only if the IEP Team 
                        first determines that the disability--
                                  (I) did not impair the 
                                ability of the child to 
                                understand the impact and 
                                consequences of the behavior; 
                                and
                                  (II) did not impair the 
                                ability of the child to control 
                                the behavior.
                          (ii) Other requirements.--If the 
                        result of the review described in 
                        paragraph (4) is a determination that 
                        the behavior of the child with a 
                        disability was not a manifestation of 
                        such child's disability, the relevant 
                        disciplinary procedures applicable to 
                        children without disabilities may be 
                        applied in the same manner in which 
                        they would be applied to children 
                        without disabilities. If the parents do 
                        not agree with such application, a due 
                        process hearing, as described in 
                        subsection (f), may be initiated. Any 
                        determination under paragraph (4) that 
                        a child's behavior was not a 
                        manifestation of a disability shall be 
                        reviewed by a hearing officer under 
                        subsection (f), whether or not the 
                        child's parents request a hearing, 
                        before educational services to the 
                        child may be terminated under this 
                        paragraph. During the pendency of such 
                        due process procedures, the child shall 
                        continue to receive educational 
                        services in the alternative educational 
                        setting.
                  (B) Special rule.--Where application of the 
                relevant disciplinary procedures in 
                subparagraph (A) would result in the expulsion 
                of the child without the receipt of educational 
                services, the child may be expelled only if--
                          (i) the child carries a weapon to 
                        school or to a school function under 
                        the jurisdiction of a State or local 
                        educational agency; or
                          (ii) the child possesses or uses 
                        illegal drugs or sells or solicits the 
                        sale of medications or illegal drugs 
                        while at school or a school function 
                        under the jurisdiction of a State or 
                        local educational agency.
          (7) Expedited hearing.--The State or local 
        educational agency shall arrange for an expedited 
        hearing in any case described in this subsection when 
        requested by the parent.
          (8) Additional requirements.--
                  (A) Maintenance of alternative educational 
                setting.-- If the parent of a child described 
                in this section requests a hearing pursuant to 
                subsection (f), the child shall remain in the 
                alternative educational setting in which such 
                child was placed during the pendency of any 
                proceedings under this section, unless the 
                parents and the State or local educational 
                agency agree otherwise.
                  (B) Protections for children not yet eligible 
                for special education and related services.--
                          (i) In general.--A child who has not 
                        been determined to be eligible for 
                        special education and related services 
                        under this part and who has engaged in 
                        behavior that violated any rule or code 
                        of conduct of the local educational 
                        agency, including any behavior 
                        described in paragraph (1), may assert 
                        any of the protections provided for in 
                        this part if the local educational 
                        agency had knowledge (as determined in 
                        accordance with this subparagraph) that 
                        the child was a child with a disability 
                        before the behavior that precipitated 
                        the disciplinary action occurred.
                          (ii) Basis of knowledge.--A local 
                        educational agency shall be deemed to 
                        have knowledge that a child is a child 
                        with a disability if--
                                  (I) the parent of the child 
                                has expressed concern in 
                                writing (unless the parent is 
                                illiterate or has a disability 
                                that prevents compliance with 
                                the requirements contained in 
                                this subclause) to personnel of 
                                the appropriate educational 
                                agency that the child is in 
                                need of special education and 
                                related services;
                                  (II) the behavior of the 
                                child demonstrates the need for 
                                such services;
                                  (III) the parent of the child 
                                has requested an evaluation of 
                                the child pursuant to section 
                                614; or
                                  (IV) the teacher of the 
                                child, or other personnel of 
                                the local educational agency, 
                                has expressed concern about the 
                                behavior of the child to the 
                                director of special education 
                                of such agency or to other 
                                personnel of the agency.
                          (iii) Conditions that apply if no 
                        basis of knowledge.--
                                  (I) In general.--If a local 
                                educational agency does not 
                                have knowledge that a child is 
                                a child with a disability (in 
                                accordance with clause (ii)) 
                                prior to taking disciplinary 
                                measures against the child, the 
                                child may be subjected to the 
                                same disciplinary measures as 
                                measures applied to children 
                                without disabilities, who 
                                engaged in comparable behaviors 
                                consistent with paragraph (2).
                                  (II) Limitations.--If a 
                                request is made for an 
                                evaluation of a child during 
                                the time period in which the 
                                child is subjected to 
                                disciplinary measures under 
                                paragraph (1), the evaluation 
                                shall be conducted in an 
                                expedited manner. If the child 
                                is determined to be a child 
                                with a disability, taking into 
                                consideration information from 
                                the evaluation conducted by the 
                                agency and information provided 
                                by the parents, the agency 
                                shall provide special education 
                                and related services in 
                                accordance with the provisions 
                                of this part, except that, 
                                pending the results of the 
                                evaluation, the child shall 
                                remain in the educational 
                                placement determined by school 
                                authorities.
                  (C) Referral to and action by law enforcement 
                and judicial authorities.--Nothing in this part 
                shall be construed to prohibit an agency from 
                reporting a crime committed by a child with a 
                disability to appropriate authorities or to 
                prevent State law enforcement and judicial 
                authorities from exercising their 
                responsibilities with regard to the application 
                of Federal and State law to crimes committed by 
                a child with a disability.
          (9) Definitions.--For purposes of this subsection, 
        the following definitions apply:
                  (A) Illegal drug.--The term ``illegal 
                drug''--
                          (i) means a controlled substance 
                        within the meaning of any of paragraphs 
                        (1) through (5) of section 202 of the 
                        Controlled Substances Act (21 U.S.C. 
                        812); but
                          (ii) does not include a controlled 
                        substance within the meaning of 
                        paragraphs (1) through (5) of section 
                        202 of such Act if--
                                  (I) such controlled substance 
                                is legally possessed or used 
                                under the supervision of a 
                                licensed health care 
                                professional; or
                                  (II) such controlled 
                                substance is legally possessed 
                                or used under any other 
                                authority under such Act or 
                                under any other provision of 
                                Federal law.
                  (B) Serious injury.--The term ``serious 
                injury'' means an injury that involves 
                substantial risk of death, extreme physical 
                pain, obvious or protracted disfigurement, loss 
                of the use of bodily members or organs, broken 
                bones, or significant endangerment to an 
                individual's emotional health or safety that is 
                the result of a physical or verbal assault.
                  (C) Weapon.--The term ``weapon'' has the 
                meaning given the term ``dangerous weapon'' 
                under paragraph (2) of the first subsection (g) 
                of section 930 of title 18, United States Code.
  (l) Rule of Construction.--Nothing in this part shall be 
construed to restrict or limit the rights, procedures, and 
remedies available under the Constitution, the Americans with 
Disabilities Act, title V of the Rehabilitation Act of 1973, or 
other Federal laws protecting the rights of children with 
disabilities, except that before the filing of a civil action 
under such laws seeking relief that is also available under 
this part, the procedures under subsections (f) and (g) shall 
be exhausted to the same extent as would be required had the 
action been brought under this part.
  (m) Transfer of Parental Rights at Age of Majority.--
          (1) In general.--A State that receives amounts from a 
        grant under this part may provide that, when a child 
        with a disability reaches the age of majority under 
        State law (except for a child with a disability who has 
        been determined to be incompetent under State law)--
                  (A) the public agency shall provide any 
                notice required by this section to both the 
                individual and the parents;
                  (B) all other rights accorded to parents 
                under this part transfer to the child;
                  (C) the agency shall notify the individual 
                and the parents of the transfer of rights; and
                  (D) all rights accorded to parents under this 
                part transfer to children who are incarcerated 
                in an adult or juvenile Federal, State, or 
                local correctional institution.
          (2) Special rule.--If, under State law, a child with 
        a disability who has reached the age of majority under 
        State law is determined not to have the ability to 
        provide informed consent with respect to the 
        educational program of the child, the State shall 
        establish procedures for appointing the parent of the 
        child, or another appropriate individual, to represent 
        the educational interests of the child throughout the 
        period of eligibility of the child under this part.

SEC. 616. WITHHOLDING AND JUDICIAL REVIEW.

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

SEC. 617. ADMINISTRATION.

  (a) Responsibilities of Secretary.--In carrying out this 
part, the Secretary shall--
          (1) cooperate with, and (directly or by grant or 
        contract) furnish technical assistance necessary to, 
        the State in matters relating to--
                  (A) the education of children with 
                disabilities; and
                  (B) carrying out this part; and
          (2) provide short-term training programs and 
        institutes.
  (b) Rules and Regulations.--In carrying out the provisions of 
this part, the Secretary shall issue regulations under this Act 
only to the extent that such regulations are necessary to 
ensure that there is compliance with the specific requirements 
of this Act.
  (c) Confidentiality.--The Secretary shall take appropriate 
action, in accordance with the provisions of section 444 of the 
General Education Provisions Act (20 U.S.C. 1232g), to assure 
the protection of the confidentiality of any personally 
identifiable data, information, and records collected or 
maintained by the Secretary and by State and local educational 
agencies pursuant to the provisions of this part.
  (d) Personnel.--The Secretary is authorized to hire qualified 
personnel necessary to conduct data collection and evaluation 
activities authorized by subsection (a) and section 618 without 
regard to the provisions of title 5, United States Code, 
relating to appointments in the competitive service and without 
regard to chapter 51 and subchapter III of chapter 53 of such 
title relating to classification and general schedule pay 
rates, except that no more than twenty such personnel shall be 
employed at any time.

SEC. 618. PROGRAM INFORMATION.

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

SEC. 619. PRESCHOOL GRANTS.

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

             PART C--INFANTS AND TODDLERS WITH DISABILITIES

SEC. 631. FINDINGS AND POLICY.

  (a) Findings.--The Congress finds that there is an urgent and 
substantial need--
          (1) to enhance the development of infants and 
        toddlers with disabilities and to minimize their 
        potential for developmental delay;
          (2) to reduce the educational costs to our society, 
        including our Nation's schools, by minimizing the need 
        for special education and related services after 
        infants and toddlers with disabilities reach school 
        age;
          (3) to minimize the likelihood of 
        institutionalization of individuals with disabilities 
        and maximize the potential for their independently 
        living in society;
          (4) to enhance the capacity of families to meet the 
        special needs of their infants and toddlers with 
        disabilities; and
          (5) to enhance the capacity of State and local 
        agencies and service providers to identify, evaluate, 
        and meet the needs of historically underrepresented 
        populations, particularly minority, low-income, inner-
        city, and rural populations.
  (b) Policy.--It is therefore the policy of the United States 
to provide financial assistance to States--
          (1) to develop and implement a statewide, 
        comprehensive, coordinated, multidisciplinary, 
        interagency system of early intervention services for 
        infants and toddlers with disabilities and their 
        families;
          (2) to facilitate the coordination of payment for 
        early intervention services from Federal, State, local, 
        and private sources (including public and private 
        insurance coverage); and
          (3) to enhance their capacity to provide quality 
        early intervention services and expand and improve 
        existing early intervention services being provided to 
        infants and toddlers with disabilities and their 
        families.

SEC. 632. DEFINITIONS.

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

SEC. 633. GENERAL AUTHORITY.

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

SEC. 634. ELIGIBILITY.

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

SEC. 635. REQUIREMENTS FOR STATEWIDE SYSTEM.

  (a) In General.--A statewide system described in section 633 
shall include, at a minimum, the following components:
          (1) A definition of the term ``developmental delay'' 
        that will be used by the State in carrying out programs 
        under this part.
          (2) A timely, comprehensive, multidisciplinary 
        evaluation of the functioning of each infant or toddler 
        with a disability in the State, and a family-directed 
        identification of the needs of each family of such an 
        infant or toddler, to appropriately assist in the 
        development of the infant or toddler.
          (3) For each infant or toddler with a disability in 
        the State, an individualized family service plan in 
        accordance with section 636, including service 
        coordination services in accordance with such service 
        plan.
          (4) A comprehensive child find system, consistent 
        with part B, including a system for making referrals to 
        service providers that includes timelines and provides 
        for participation by primary referral sources.
          (5) A public awareness program focusing on early 
        identification of infants and toddlers with 
        disabilities, including the preparation and 
        dissemination by the lead agency designated or 
        established under paragraph (8) to all primary referral 
        sources, especially hospitals and physicians, of 
        information for parents on the availability of early 
        intervention services, and procedures for determining 
        the extent to which such sources disseminate such 
        information to parents of infants and toddlers.
          (6) A central directory which includes information on 
        early intervention services, resources, and experts 
        available in the State and research and demonstration 
        projects being conducted in the State.
          (7) A comprehensive system of personnel development, 
        including the training of paraprofessionals and the 
        training of primary referral sources respecting the 
        basic components of early intervention services 
        available in the State, that is consistent with the 
        comprehensive system of personnel development described 
        in section 612(a)(13) (or with the personnel 
        development requirements for State improvement plans 
        under section 683) and may include--
                  (A) implementing innovative strategies and 
                activities for the recruitment and retention of 
                early education service providers;
                  (B) promoting the preparation of early 
                intervention providers who are fully and 
                appropriately qualified to provide early 
                intervention services under this part;
                  (C) training personnel to work in rural and 
                inner city areas; and
                  (D) training personnel to coordinate 
                transition services for infants and toddlers 
                served under this part from an early 
                intervention program under this part to 
                preschool or other appropriate services.
          (8) Policies and procedures relating to the 
        establishment and maintenance of standards to ensure 
        that personnel necessary to carry out this part are 
        appropriately and adequately prepared and trained, 
        including--
                  (A) the establishment and maintenance of 
                standards which are consistent with any State 
                approved or recognized certification, 
                licensing, registration, or other comparable 
                requirements which apply to the area in which 
                such personnel are providing early intervention 
                services; and
                  (B) subject to subsection (b), to the extent 
                such standards are not based on the highest 
                requirements in the State applicable to a 
                specific profession or discipline, the steps 
                the State is taking to require the retraining 
                or hiring of personnel that meet appropriate 
                professional requirements in the State;
        except that nothing in this part, including this 
        paragraph, prohibits the use of paraprofessionals and 
        assistants who are appropriately trained and 
        supervised, in accordance with State law, regulations, 
        or written policy, to assist in the provision of early 
        intervention services to infants and toddlers with 
        disabilities under this part.
          (9) A single line of responsibility in a lead agency 
        designated or established by the Governor for carrying 
        out--
                  (A) the general administration and 
                supervision of programs and activities 
                receiving assistance under section 633, and the 
                monitoring of programs and activities used by 
                the State to carry out this part, whether or 
                not such programs or activities are receiving 
                assistance made available under section 633, to 
                ensure that the State complies with this part;
                  (B) the identification and coordination of 
                all available resources within the State from 
                Federal, State, local and private sources;
                  (C) the assignment of financial 
                responsibility in accordance with section 
                637(a)(1) to the appropriate agencies;
                  (D) the development of procedures to ensure 
                that services are provided to infants and 
                toddlers and their families under this part in 
                a timely manner pending the resolution of any 
                disputes among public agencies or service 
                providers;
                  (E) the resolution of intra- and interagency 
                disputes; and
                  (F) the entry into formal interagency 
                agreements that define the financial 
                responsibility of each agency for paying for 
                early intervention services (consistent with 
                State law) and procedures for resolving 
                disputes and that include all additional 
                components necessary to ensure meaningful 
                cooperation and coordination.
          (10) A policy pertaining to the contracting or making 
        of other arrangements with service providers to provide 
        early intervention services in the State, consistent 
        with the provisions of this part, including the 
        contents of the application used and the conditions of 
        the contract or other arrangements.
          (11) A procedure for securing timely reimbursement of 
        funds used under this part in accordance with section 
        640(a).
          (12) Procedural safeguards with respect to programs 
        under this part, as required by section 639.
          (13) A system for compiling data requested by the 
        Secretary under section 618 that relates to this part.
          (14) A State interagency coordinating council that 
        meets the requirements of section 641.
  (b) Modification of Personnel Requirement.--If a State 
determines that the requirement of subsection (a)(7)(B) would 
significantly inhibit the ability of the State to contract 
with, or employ, an appropriate number and types of personnel 
to provide early intervention services to infants and toddlers 
with disabilities in a geographic region, the State may, 
subject to public notice and comment, temporarily suspend the 
requirement for the region, in a manner consistent with State 
law and for a period not exceeding 3 years, with respect to the 
most qualified available individuals in shortage areas who are 
making annual progress in applicable coursework.

SEC. 636. INDIVIDUALIZED FAMILY SERVICE PLAN.

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

SEC. 637. STATE APPLICATION AND ASSURANCES.

  (a) Application.--A State desiring to receive a grant under 
section 633 shall submit an application to the Secretary at 
such time and in such manner as the Secretary may reasonably 
require. Such application shall contain--
          (1) a designation of the lead agency in the State 
        that will be responsible for the administration of 
        funds provided under section 633;
          (2) a designation of a person responsible for 
        assigning financial responsibility among appropriate 
        agencies;
          (3) information demonstrating eligibility of the 
        State under section 634, including--
                  (A) information demonstrating to the 
                Secretary's satisfaction that the State has in 
                effect the statewide system required by section 
                633; and
                  (B) a description of services to be provided 
                to infants and toddlers with disabilities and 
                their families through the system;
          (4) a description of the uses for which funds will be 
        expended in accordance with this part;
          (5) a description of the procedure used to ensure 
        that resources are made available under this part for 
        all geographic areas within the State;
          (6) a description of State policies and procedures 
        that ensure that, prior to the adoption by the State of 
        any other policy or procedure necessary to meet the 
        requirements of this part, there are public hearings, 
        adequate notice of the hearings, and an opportunity for 
        comment available to the general public, including 
        individuals with disabilities and parents of infants 
        and toddlers with disabilities;
          (7) a description of the policies and procedures to 
        be used--
                  (A) to ensure a smooth transition for 
                toddlers receiving early intervention services 
                under this part to preschool or other 
                appropriate services, including a description 
                of how--
                          (i) the families of such toddlers 
                        will be included in the transition 
                        plans required by subparagraph (C); and
                          (ii) the lead agency designated or 
                        established under section 635(a) will--
                                  (I) notify the local 
                                educational agency for the area 
                                in which such a child resides 
                                that the child will shortly 
                                reach the age of eligibility 
                                for preschool services under 
                                part B, as determined in 
                                accordance with State law;
                                  (II) in the case of such a 
                                child who may be eligible for 
                                such preschool services, with 
                                the approval of the family of 
                                the child, convene a conference 
                                among the lead agency, the 
                                family, and the local 
                                educational agency at least 90 
                                days (and at the discretion of 
                                all such parties, up to 6 
                                months) before the child is 
                                eligible for the preschool 
                                services, to discuss any such 
                                services that the child may 
                                receive; and
                                  (III) in the case of such a 
                                child who may not be eligible 
                                for such preschool services, 
                                with the approval of the 
                                family, make reasonable efforts 
                                to convene a conference among 
                                the lead agency, the family, 
                                and providers of other 
                                appropriate services for 
                                children who are not eligible 
                                for preschool services under 
                                part B, to discuss the 
                                appropriate services that the 
                                child may receive;
                  (B) to review the child's program options for 
                the period from the child's third birthday 
                through the remainder of the school year; and
                  (C) to establish a transition plan; and
          (8) such other information and assurances as the 
        Secretary may reasonably require.
  (b) Assurances.--The application described in subsection (a) 
shall contain the following:
          (1) A satisfactory assurance that the State will--
                  (A) make such reports in such form and 
                containing such information as the Secretary 
                may require to carry out the Secretary's 
                functions under this part; and
                  (B) keep such records and afford such access 
                thereto as the Secretary may find necessary to 
                assure the correctness and verification of such 
                reports and proper disbursement of Federal 
                funds under this part.
          (2) A satisfactory assurance that Federal funds made 
        available under section 633 will be used to supplement 
        and increase the level of State and local funds 
        expended for infants and toddlers with disabilities and 
        their families under this part and in no case to 
        supplant such State and local funds.
          (3) Such other information and assurances as the 
        Secretary may reasonably require by regulation.
  (c) Standard for Disapproval of Application.--The Secretary 
may not disapprove such an application unless the Secretary 
determines, after notice and opportunity for a hearing, that 
the application fails to comply with the requirements of this 
section.
  (d) Subsequent State Application.--If a State has on file 
with the Secretary a policy, procedure, or assurance that 
demonstrates that the State meets a requirement of this 
section, including any policy or procedure filed under part H 
(as in effect before the date of the enactment of the IDEA 
Improvement Act of 1996), the Secretary shall consider the 
State to have met the requirement for purposes of receiving a 
grant under this part.
  (e) Modification of Application.--An application submitted by 
a State in accordance with this section shall remain in effect 
until the State submits to the Secretary such modifications as 
the State determines necessary. This section shall apply to a 
modification of an application to the same extent and in the 
same manner as this section applies to the original 
application.

SEC. 638. USES OF FUNDS.

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

SEC. 639. PROCEDURAL SAFEGUARDS.

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

SEC. 640. PAYOR OF LAST RESORT.

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

SEC. 641. STATE INTERAGENCY COORDINATING COUNCIL.

  (a) Establishment.--
          (1) In general.--A State that desires to receive 
        financial assistance under this part shall establish a 
        State interagency coordinating council.
          (2) Appointment.--The council shall be appointed by 
        the Governor. In making appointments to the council, 
        the Governor shall ensure that the membership of the 
        council reasonably represents the population of the 
        State.
          (3) Chairperson.--The Governor shall designate a 
        member of the council to serve as the chairperson of 
        the Council, or shall require the council to so 
        designate such a member. Any member of the council who 
        is a representative of the lead agency designated under 
        section 635(b)(8) may not serve as the chairperson of 
        the council.
  (b) Composition.--
          (1) In general.--The council shall be composed as 
        follows:
                  (A) Parents.--At least 20 percent of the 
                members shall be parents of infants or toddlers 
                with disabilities or children with disabilities 
                aged 12 or younger, with knowledge of, or 
                experience with, programs for infants and 
                toddlers with disabilities. At least one such 
                member shall be a parent of an infant or 
                toddler with a disability or a child with a 
                disability aged 6 or younger.
                  (B) Service providers.--At least 20 percent 
                of the members shall be public or private 
                providers of early intervention services.
                  (C) State legislature.--At least one member 
                shall be from the State legislature.
                  (D) Personnel preparation.--At least one 
                member shall be involved in personnel 
                preparation.
                  (E) Agency for early intervention services.--
                At least one member shall be from each of the 
                State agencies involved in the provision of, or 
                payment for, early intervention services to 
                infants and toddlers with disabilities and 
                their families and shall have sufficient 
                authority to engage in policy planning and 
                implementation on behalf of such agencies.
                  (F) Agency for preschool services.--At least 
                one member shall be from the State educational 
                agency responsible for preschool services to 
                children with disabilities and shall have 
                sufficient authority to engage in policy 
                planning and implementation on behalf of such 
                agency.
                  (G) Agency for insurance.--At least one 
                member shall be from the agency responsible for 
                the State governance of insurance, especially 
                in the area of health insurance.
                  (H) Head start agency.--A representative from 
                a Head Start agency or program in the State.
                  (I) A representative from a State agency 
                responsible for child care.
          (2) Other members.--The council may include other 
        members selected by the Governor, including a 
        representative from the Bureau of Indian Affairs, or 
        where there is no BIA operated or funded school, from 
        the Indian Health Service or the tribe/tribal council.
  (c) Meetings.--The council shall meet at least quarterly and 
in such places as it deems necessary. The meetings shall be 
publicly announced, and, to the extent appropriate, open and 
accessible to the general public.
  (d) Management Authority.--Subject to the approval of the 
Governor, the council may prepare and approve a budget using 
funds under this part to conduct hearings and forums, to 
reimburse members of the council for reasonable and necessary 
expenses for attending council meetings and performing council 
duties (including child care for parent representatives), to 
pay compensation to a member of the council if such member is 
not employed or must forfeit wages from other employment when 
performing official council business, to hire staff, and to 
obtain the services of such professional, technical, and 
clerical personnel as may be necessary to carry out its 
functions under this part.
  (e) Functions of Council.--
          (1) Duties.--The council shall--
                  (A) advise and assist the lead agency 
                designated or established under section 
                635(b)(8) in the performance of the 
                responsibilities set out in such section, 
                particularly the identification of the sources 
                of fiscal and other support for services for 
                early intervention programs, assignment of 
                financial responsibility to the appropriate 
                agency, and the promotion of the interagency 
                agreements;
                  (B) advise and assist the lead agency in the 
                preparation of applications and amendments 
                thereto;
                  (C) advise and assist the State educational 
                agency regarding the transition of toddlers 
                with disabilities to preschool and other 
                appropriate services; and
                  (D) prepare and submit an annual report to 
                the Governor and to the Secretary on the status 
                of early intervention programs for infants and 
                toddlers with disabilities and their families 
                operated within the State.
          (2) Authorized activity.--The council may advise and 
        assist the lead agency and the State educational agency 
        regarding the provision of appropriate services for 
        children aged birth to 5, inclusive.
  (f) Conflict of Interest.--No member of the council shall 
cast a vote on any matter which would provide direct financial 
benefit to that member or otherwise give the appearance of a 
conflict of interest under State law.

SEC. 642. FEDERAL ADMINISTRATION.

  Sections 616, 617, 618, and 620 shall, to the extent not 
inconsistent with this part, apply to the program authorized by 
this part, except that--
          (1) any reference in such sections to a State 
        educational agency shall be considered to be a 
        reference to a State's lead agency established or 
        designated under section 635(a)(8);
          (2) any reference in such sections to a local 
        educational agency, educational service agency, or a 
        State agency shall be considered to be a reference to 
        an early intervention service provider under this part; 
        and
          (3) any reference to the education of children with 
        disabilities or the education of all children with 
        disabilities shall be considered to be a reference to 
        the provision of appropriate early intervention 
        services to infants and toddlers with disabilities.

SEC. 643. ALLOCATION OF FUNDS.

  (a) Reservation of Funds for Territories.--
          (1) In general.--From the sums appropriated to carry 
        out this part for any fiscal year, the Secretary may 
        reserve up to one percent for payments to Guam, 
        American Samoa, the Virgin Islands, and the 
        Commonwealth of the Northern Mariana Islands in 
        accordance with their respective needs.
          (2) Consolidation of funds.--The provisions of Public 
        Law 95-134, permitting the consolidation of grants to 
        the territories, shall not apply to funds those areas 
        receive under this part.
  (b) Payments to Indians.--
          (1) In general.--The Secretary shall, subject to this 
        subsection, make payments to the Secretary of the 
        Interior to be distributed to tribes, tribal 
        organizations (as defined under section 4 of the Indian 
        Self-Determination and Education Assistance Act), or 
        consortia of the above entities for the coordination of 
        assistance in the provision of early intervention 
        services by the States to infants and toddlers with 
        disabilities and their families on reservations served 
        by elementary and secondary schools for Indian children 
        operated or funded by the Department of the Interior. 
        The amount of such payment for any fiscal year shall be 
        1.25 percent of the aggregate of the amount available 
        to all States under this part for such fiscal year.
          (2) Allocation.--For each fiscal year, the Secretary 
        of the Interior shall distribute the entire payment 
        received under paragraph (1) by providing to each 
        tribe, tribal organization, or consortium an amount 
        based on the number of infants and toddlers residing on 
        the reservation as determined annually divided by the 
        total of such children served by all tribes, tribal 
        organizations, or consortia.
          (3) Information.--To receive a payment under this 
        paragraph, the tribe, tribal organization, or consortia 
        shall submit such information to the Secretary of the 
        Interior as is needed to determine the amounts to be 
        allocated under paragraph (2).
          (4) Use of funds.--The funds received by a tribe, 
        tribal organization, or consortia shall be used to 
        assist States in child find, screening, and other 
        procedures for the early identification of Indian 
        children under 3 years of age and for parent training. 
        Such funds may also be used to provide early 
        intervention services in accordance with this part. 
        Such activities may be carried out directly or through 
        contracts or cooperative agreements with the BIA, local 
        educational agencies, and other public or private 
        nonprofit organizations. The tribe, tribal 
        organization, or consortia is encouraged to involve 
        Indian parents in the development and implementation of 
        these activities. The above entities shall, as 
        appropriate, make referrals to local, State, or Federal 
        entities for the provision of services or further 
        diagnosis.
          (5) Reports.--To be eligible to receive a grant under 
        paragraph (2), a tribe, tribal organization, or 
        consortia shall make a biennial report to the Secretary 
        of the Interior of activities undertaken under this 
        subsection, including the number of contracts and 
        cooperative agreements entered into, the number of 
        children contacted and receiving services for each 
        year, and the estimated number of children needing 
        services during the 2 years following the year in which 
        the report is made. The Secretary of the Interior shall 
        include a summary of this information on a biennial 
        basis to the Secretary of Education along with such 
        other information as required under section 
        611(f)(3)(D). The Secretary of Education may require 
        any additional information from the Secretary of the 
        Interior.
          (6) Prohibited uses of funds.--None of the funds 
        under this subsection may be used by the Secretary of 
        the Interior for administrative purposes, including 
        child count, and the provision of technical assistance.
  (c) State Allotments.--
          (1) In general.--Except as provided in paragraphs 
        (2), (3), and (4), from the funds remaining for each 
        fiscal year after the reservation and payments under 
        subsections (a) and (b), the Secretary shall first 
        allot to each State an amount that bears the same ratio 
        to the amount of such remainder as the number of 
        infants and toddlers in the State bears to the number 
        of infants and toddlers in all States.
          (2) Minimum allotments.--Except as provided in 
        paragraphs (3) and (4), no State shall receive an 
        amount under this section for any fiscal year that is 
        less than the greatest of--
                  (A) one-half of one percent of the remaining 
                amount described in paragraph (1); or
                  (B) $500,000.
          (3) Special rule for 1997 through 1999.--
                  (A) In general.--Except as provided in 
                paragraph (4), no State may receive an amount 
                under this section for any of the fiscal years 
                1997 through 1999 that is less than the sum of 
                the amount such State received for fiscal year 
                1994 under--
                          (i) part H (as in effect on the day 
                        before the date of the enactment of the 
                        IDEA Improvement Act of 1996); and
                          (ii) subpart 2 of part D of chapter 1 
                        of title I of the Elementary and 
                        Secondary Education Act of 1965 (as in 
                        effect on the day before the date of 
                        the enactment of the Improving 
                        America's Schools Act of 1994) for 
                        children with disabilities under 3 
                        years of age.
                  (B) Exception.--If, for fiscal year 1998 or 
                1999, the number of infants and toddlers in a 
                State, as determined under paragraph (1), is 
                less than the number of infants and toddlers so 
                determined for fiscal year 1994, the amount 
                determined under subparagraph (A) for the State 
                shall be reduced by the same percentage by 
                which the number of such infants and toddlers 
                so declined.
          (4) Ratable reduction.--
                  (A) In general.--If the sums made available 
                under this part for any fiscal year are 
                insufficient to pay the full amounts that all 
                States are eligible to receive under this 
                subsection for such year, the Secretary shall 
                ratably reduce the allocations to such States 
                for such year.
                  (B) Additional funds.--If additional funds 
                become available for making payments under this 
                subsection for a fiscal year, allocations that 
                were reduced under subparagraph (A) shall be 
                increased on the same basis as such allocations 
                were reduced.
          (5) Definitions.--For the purpose of this 
        subsection--
                  (A) the terms ``infants'' and ``toddlers'' 
                mean children under 3 years of age; and
                  (B) the term ``State'' means each of the 50 
                States, the District of Columbia, and the 
                Commonwealth of Puerto Rico.
  (d) Reallotment of Funds.--If a State elects not to receive 
its allotment under subsection (c), the Secretary shall 
reallot, among the remaining States, amounts from such State in 
accordance with such subsection.

SEC. 644. AUTHORIZATION OF APPROPRIATIONS.

  For the purpose of carrying out this part, there are 
authorized to be appropriated such sums as may be necessary for 
each of the fiscal years 1997 through 2001.

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

SEC. 651. PURPOSE OF PART.

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

SEC. 652. ELIGIBILITY FOR FINANCIAL ASSISTANCE.

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

  Subpart 1--General Provisions and National Research and Improvement 
                               Activities

SEC. 661. COMPREHENSIVE PLAN.

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

SEC. 662. PRIORITIES.

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

SEC. 663. PEER REVIEW.

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

SEC. 664. ELIGIBLE APPLICANTS.

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

SEC. 665. APPLICANT AND RECIPIENT RESPONSIBILITIES.

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

SEC. 666. INDIRECT COSTS.

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

SEC. 667. PROGRAM EVALUATION.

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

SEC. 668. NATIONAL ASSESSMENT.

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

SEC. 669. AUTHORIZATION OF APPROPRIATIONS.

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

                  Subpart 2--Professional Development

SEC. 671. PURPOSE.

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

SEC. 672. FINDING.

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

SEC. 673. NATIONAL ACTIVITIES.

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

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

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

SEC. 675. LEADERSHIP PERSONNEL.

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

SEC. 676. SERVICE OBLIGATION.

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

SEC. 677. OUTREACH.

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

     Subpart 3--State Program Improvement Grants for Children With 
                              Disabilities

SEC. 681. PURPOSE.

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

SEC. 682. ELIGIBILITY AND COLLABORATIVE PROCESS.

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

SEC. 683. STATE IMPROVEMENT PLANS.

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

SEC. 684. USE OF FUNDS.

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

SEC. 685. MINIMUM STATE ALLOTMENTS.

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

SEC. 686. AUTHORIZATION OF APPROPRIATIONS.

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

                       Subpart 4--Parent Training

SEC. 691. GRANTS FOR PARENT TRAINING AND INFORMATION CENTERS.

  (a) Program Authorized.--The Secretary may make grants to, 
and enter into contracts and cooperative agreements with, 
parent organizations to support parent training and information 
centers to carry out activities under this subpart.
  (b) Required Activities.--A parent training and information 
center that receives assistance under this section shall--
          (1) assist parents to understand the availability of, 
        and how effectively to use, procedural safeguards under 
        this title, including the use of alternative methods of 
        dispute resolution, such as mediation;
          (2) serve the parents of children with the full range 
        of disabilities; and
          (3) annually report to the Secretary on--
                  (A) the number of parents to whom it provided 
                information and training in the most recently 
                concluded fiscal year; and
                  (B) the effectiveness of strategies used to 
                reach and serve parents of children with 
                disabilities, including underserved parents of 
                children with disabilities.
  (c) Optional Activities.--A parent training and information 
center that receives assistance under this section may--
          (1) provide information to teachers and other 
        professionals who provide special education and related 
        services to children with disabilities;
          (2) assist students with disabilities to understand 
        their rights and responsibilities under section 615(j) 
        on reaching the age of majority; and
          (3) establish cooperative partnerships with parent 
        organizations, and other organizations assisting 
        families of children with disabilities, in the 
        community.
  (d) Application Requirements.--Each application for 
assistance under this section shall identify with specificity 
the special efforts that the applicant will undertake to--
          (1) ensure that the needs for training and 
        information of parents of underserved children with 
        disabilities in the area to be served are effectively 
        met; and
          (2) work with community-based organizations.
  (e) Distribution of Funds.--
          (1) Initial awards.--
                  (A) In general.--The Secretary shall make at 
                least one award to a parent organization in 
                each State, unless the Secretary does not 
                receive an application from such an 
                organization in each State of sufficient 
                quality to warrant approval.
                  (B) Selection requirement.--The Secretary 
                shall select among applications submitted by 
                parent organizations in a State in a manner 
                that ensures the most effective assistance to 
                parents, including parents in urban and rural 
                areas, in the State.
          (2) Additional awards.--
                  (A) In general.--The Secretary may make 
                additional awards to community-based parent 
                organizations in each State.
                  (B) Selection requirement.--The Secretary may 
                make additional awards in a manner that ensures 
                that parents of children with disabilities in 
                low-income, high-density, and rural areas have 
                access to parent training and information 
                centers that provide appropriate training and 
                information.

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

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

SEC. 693. AUTHORIZATION OF APPROPRIATIONS.

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


   SECTION 1114 OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965

SEC. 1114. SCHOOLWIDE PROGRAMS.

  (a) Use of Funds for Schoolwide Programs.--
          (1) * * *
          * * * * * * *
          (4) Special rule.--(A) Except as provided in 
        subsection (b), the Secretary may, through publication 
        of a notice in the Federal Register, exempt schoolwide 
        programs under this section from statutory or 
        regulatory provisions of any other noncompetitive 
        formula grant program administered by the Secretary, or 
        any discretionary grant program administered by the 
        [Secretary (other than formula or discretionary grant 
        programs under the Individuals with Disabilities 
        Education Act),] Secretary, to support schoolwide 
        programs, if the intent and purposes of such other 
        programs are met.
          (B) A school that chooses to use funds from such 
        other programs shall not be relieved of the 
        requirements relating to health, safety, civil rights, 
        special education and related services under an 
        individualized education program, procedural 
        safeguards, gender equity, student and parental 
        participation and involvement, services to private 
        school children, maintenance of effort, comparability 
        of services, uses of Federal funds to supplement, not 
        supplant non-Federal funds, or the distribution of 
        funds to State or local educational agencies that apply 
        to the receipt of funds from such programs.
          * * * * * * *
                            ADDITIONAL VIEWS

                   cessation of educational services

    We have grave concerns about the provisions of the bill 
which will permit states to ``cease'' educational services to 
children under certain circumstances. We believe that the 
creation of a federal education policy that sanctions the 
cessation of educational services for any child is wrong and 
will set a dangerous precedent.
    Under current law, a child with a disability who is 
expelled from the regular classroom for any reason is still 
entitled to a free appropriate education. No public benefit 
will be realized from a policy that results in additional idle 
children roaming the streets. We already know what happens to 
kids who drop out of school. We know that the link between 
school dropouts and crime is very strong. Demographers report 
that 82% of State and local prisoners are high school dropouts. 
We also know that there is a strong correlation between welfare 
dependency and school dropout rates.
    For children with disabilities, these correlations are even 
stronger. Research shows that children with disabilities who 
are expelled from school without educational services are much 
less likely than other children to ever catch up, are more 
likely to drop out, are less likely to ever graduate from high 
school or to get a G.E.D., are less likely to be employed, and 
are substantially more likely to be involved in crime. One 
recent study points out that as many as 73% of children with 
mental disabilities who do not complete high school end up with 
arrest records after leaving school.
    There are costs associated with the continued provision of 
educational services to students with disabilities who have 
been expelled. However, we believe the costs of not providing 
services to these students are far greater. The short-term 
savings achieved by ceasing educational services to children 
with disabilities will be more than offset by the long-term 
costs of children who fall behind or fall through the cracks 
educationally as a result of expulsion without services.
    Those on the other side of this issue assert that children 
with disabilities who engage in serious misbehavior should be 
treated just like other children and their needs are unique. 
IDEA is premised on the recognition that children with 
disabilities need more support than other students in order to 
attain an education. There is nothing to suggest that less 
support is needed when they have disciplinary problems.
    The cessation debate is not about school safety. We all 
believe that classrooms should be free of violence and 
conducive to learning. For children with disabilities, safe 
classrooms are even more critical. These children are the most 
vulnerable to unsafe and chaotic school environments. Children 
who commit serious infractions that interfere with the ability 
of teachers to teach and other students to learn should be 
expelled, suspended, or moved to another educational placement. 
But cessation of educational services does not further the 
goals of order and safety in the classroom. We strongly believe 
that children should continue to learn, whether in an 
alternative school or juvenile facility. Failure to do that 
will nourish a spiral of failure.
    We are deeply concerned about the message we send in this 
bill. We believe strongly that a Federal policy of cessation of 
educational services, however limited its application, is the 
wrong policy. This view has been affirmed by the 55 groups 
(representing the full array of organizations who help serve 
and protect this nation's children) who in a letter to the 
Committee to stated their opposition to cessation of services. 
In addition, Secretary of Education Richard Riley has gone on 
record to express his strong opposition to the policy of 
cessation. We regret the Committee's decision to ignore the 
persuasive arguments of these many individuals.

federal research and development investments in technology for children 
                           with disabilities

    We strongly oppose the exclusion of a specific authority, 
such as exists in current law, to support the research and 
development of advanced technology to enhance educational and 
early intervention services to children with disabilities. 
Technology research and development is critical for children 
with disabilities and their families who are served under IDEA.
    House Speaker Newt Gingrich recognized the importance of 
technology to the lives of individuals with disabilities in a 
recent interview with the Atlanta Journal-Constitution, noting 
the potential of technology ``to dramatically expand the 
potential for people, who historically have been totally 
outside the mainstream, to lead remarkably full lives.''
    Technology research and development activities supported 
under IDEA have led to the development of innovative tools and 
strategies that help children with disabilities become active, 
independent learners at schools and a home. Without these tools 
and strategies, many children with disabilities would remain 
dependent on their families or the government, rather than 
acquiring the knowledge, skills, and self-confidence they need 
to lead personally fulfilling and productive lives. These tools 
and strategies can permit children with disabilities to 
overcome their disabilities and learn in an infinite variety of 
ways. Technological devices can permit infants to explore and 
interact with their environments, school-aged children to learn 
in regular classes, and adults to function independently in 
work and society.
    The types and uses of technology devices for individuals 
with disabilities are vast. Instructional technology used in 
the classroom can enhance higher order thinking and problem 
solving skills of children with learning disabilities, allowing 
them to improve their performance in academic subjects as well 
as reading comprehension. Technology helps individuals with 
cerebral palsy gain access to a range of environments and 
function with a level of independence that might otherwise be 
impossible. Technology helps students who are blind or visually 
impaired gain access to and use information to function more 
effectively in their physical and social environments. 
Technology enables students who are deaf or hard-of-hearing to 
learn to read with the aid of CD-ROM visual capabilities, take 
notes without an interpreter, and improve their reading and 
writing. Teachers, administrators, and families have been 
provided access to information on effectively serving children 
with disabilities at home and at school through expert 
information systems and a center to improve use of technology. 
Continued advances in technology research hold promise for 
further improving educational opportunities for children and 
youth with disabilities.
    Many research and development projects supported under IDEA 
have successfully marketed and distributed their products 
through collaboration with the Nation's leading commercial 
vendors. These activities yield considerable benefits by 
providing useful products not only for individuals with 
disabilities but also for use within the general population. 
For example, in order to compete successfully with their peers 
in the job market, young people with disabilities need not only 
the work competencies specific to each job, but also basic 
social skills. Under a contract with the Department of 
Education, MACRO International produced electronic and print 
materials to teach individuals with disabilities workplace 
social skills.
    We are very concerned that the bill eliminates the discrete 
authority for technology research and development under IDEA. 
The Federal Government must continue to take an active role in 
investing in technology. Individuals with disabilities have a 
wide range of special needs and require different tools and 
adaptations to become active, independent learners. 
Unfortunately, the market for many of these technologies is 
small and fragmented.
    Developing and testing assistive and instructional 
technologies for children with disabilities is not likely to be 
done by the private sector. Assistive devices and instructional 
technology for people with disabilities often must be targeted 
to very specific and small populations, and hence have very 
limited market potential. There is little financial incentive 
for the private sector to pursue these markets. Federal 
research and development investments in technology help fill 
this gap and complement private sector investments to provide 
teachers and families with the tools and strategies that 
individuals with disabilities need to lead independent and 
productive lives.
    Moreover, there is no other Federal authority that focuses 
on the research and development of technology to improve 
educational and early intervention services to children with 
disabilities. Similar Federal programs complement, but do not 
duplicate, the activities supported under IDEA. For example, 
the Technology-Related Assistance for Individuals With 
Disabilities Act of 1988 was intended to build the capacity in 
each state to pull together the resources needed by individuals 
with disabilities to access the technology tools needed for 
independence and productivity in our society. The purpose of 
that Act is to promote systems-change--changes in laws, 
regulations, and policies--to facilitate access to technology, 
not to support the research and development that is so critical 
in ensuring that the available technology addresses the needs 
of individuals with disabilities. Technology research and 
development activities, such as those currently supported under 
IDEA, effectively address the technology-related needs of 
children with disabilities that would not otherwise be met.
    In the same interview cited above, Speaker Gingrich opined 
that ``if you have [the] potential for liberating people and 
enabling them to lead full lives and you don't do everything 
you can to make it real, then it is an enormous, enormous 
mistake.'' We strongly agree.

                     waiver of personnel standards

    We believe that the Committee took the wrong approach to 
the issue of personnel shortages for service providers of 
special education and related services by creating a mechanism 
for States to establish regional waivers to their own personnel 
standards. This would sanction the provision of services by 
less than fully qualified personnel.
    We acknowledge the serious problem of education personnel 
shortages in this country. A study recently published by the 
Council of Great City Schools showed a large demand for 
teachers in several areas, particularly in the area of special 
education.
    In our view, States already have, and would continue to 
have, even without such waivers, sufficient flexibility to 
design their personnel standards to address these shortages. A 
far better approach, and one that would not obstruct the right 
of disabled children to receive services of the same quality as 
other individuals, would be to further develop the States' 
capacities to recruit and train highly qualified service 
providers.

                 department of education policy letters

    The Department of Education's ``policy letters'' have 
served an important role in ensuring appropriate implementation 
of the IDEA. By letting States, school districts, teachers, 
parents, and even members of Congress know what the 
Department's thinking is about what the law requires, the 
issuance of these letters and other documents that interpret 
the statute and regulations have helped to ensure consistency 
in the implementation of the law and to resolve disagreements 
about how the law and regulations should be applied in 
particular circumstances.
    Because of the importance of these letters, it is critical 
that they be shared with everyone who needs the information 
they contain. Therefore, we support language in the bill that 
would require the Department to publish quarterly in the 
Federal Register and ``widely disseminate'' by other means a 
summary of correspondence from the Department in the prior 
quarter that describes the interpretations of the IDEA and its 
regulations by the Department.
    The reported bill, however, also includes language we 
strongly oppose that would prohibit the use of correspondence 
from the Department expressing the Department's interpretation 
of the IDEA and its regulations except by the exact party who 
receive the letter and only in relation to the exact situation 
at issue in the letter. The Office of Special Education and 
Rehabilitative Services (OSERS) receives questions on a variety 
of issues. Parents typically ask questions about the types of 
services that their children are entitled to receive and other 
rights under the law. For example, one parent asked OSERS to 
describe the circumstances under which a child with a 
disability must be provided with an interpreter under Part B of 
IDEA. Another parent asked OSERS what obligation a local school 
district has to conduct an evaluation of a child when the 
parent makes the request rather than the teacher.
    The language in the Republican bill would limit the use of 
policy letters so that other parents who had written OSERS on 
these same two issues could not use the OSERS response to these 
parents. It would mean that any parent involved in a due 
process hearing would not be able to point to an interpretation 
that the Department expressed in a letter to some other person 
on exactly the same issue and ask a hearing officer to adopt 
that interpretation. Thus, even though the Department had 
already expressed its views on a particular topic, and, as the 
proposal also requires, had ``widely disseminated'' information 
about its letters on that topic and published quarterly lists 
of them in the Federal Register, parents would have to pretend 
the Department had never expressed a view about that issue. A 
parent who wanted to use this information would have to 
individually write to the Department and await its response.
    The results of this bill language will be inconsistent 
application of the IDEA across the country, increased burden 
and needless bureaucratic rigmarole for those parents who seek 
the advice of the Department on what the law requires, and 
increased litigation due to increased uncertainty about what 
the law actually requires. This language could also result in 
increased rulemaking by the Department in areas where it 
currently relies on interpretations of the statute and 
regulations.

                                   William L. Clay.
                                   Dale E. Kildee.
                                   Matthew G. Martinez.
                                   Tom Sawyer.
                                   Patsy T. Mink.
                                   Jack Reed.
                                   Xavier Becerra.
                                   Gene Green.
                                   Earl Blumenauer.
                                   George Miller.
                                   Pat Williams.
                                   Major R. Owens.
                                   Donald M. Payne.
                                   Robert E. Andrews.
                                   Robert C. Scott.
                                   Chaka Fattah.
                            ADDITIONAL VIEWS

          interstate funding formula proposed under h.r. 3268

    The interstate funding formula contained in the bill 
proposes to allocate funds to the States based on total student 
population and will include a poverty factor. This formula 
proposes to replace current law in which allocations are based 
on actual numbers of disabled students served.
    We disagree with the premise that the current formula 
provides an incentive to over-identify students with 
disabilities and that the more students that are identified as 
disabled, the more money states get from the Federal 
Government. We disagree.
    Federal funds make up only about 7% of the cost of special 
education. States and local school districts pick up 93% of the 
cost. It is hard to understand how schools would be motivated 
to over-identify disabled students so they can spend thousands 
of dollars per student in order to receive a little over $400 
for each student.
    Supporters of the new formula argue that the formula is 
necessary to change the way the States and districts allocate 
their own dollars. There is nothing in the current law or bill 
that precludes States from determining how to allocate such 
funds. In fact, some States have already done that.
    We don't believe that the new formula will address the 
problem of over-identification. We highly doubt that the change 
in the funding formula on the Federal level will influence the 
number of students who are identified as disabled because there 
are other factors which influence the identification process. 
All the formula would do is punish States who have a higher 
incidence of disabled students by allocating less money per 
child.
    The rationale behind this newly proposed formula is open to 
question when one considers the statement in the Department of 
Education's 1995 report on IDEA where they state that, ``In 
some cases, children with disabilities are not identified and 
served. In other cases, particular with African-American 
children, students are over-identified and placed in overly 
restrictive settings.'' While the proposed formula purportedly 
addresses the over-identification problem, it does nothing to 
address the under-identification problem. While the poverty 
factor in the formula is expected to address the correlation 
between poverty and disabilities, one can argue that given the 
spirit of the formula, it also reinforces the over-
identification issue raised by the Department of Education. In 
short, it perpetuates a bias towards placing African-American 
children in overly restrictive settings.
    Moreover, the rationale set forth to support the new 
funding formula is inconsistent with the special rule in the 
formula which would cap the level of funding to Puerto Rico, 
discriminating against children with disabilities who reside in 
Puerto Rico. Where the new formula purports to take into 
account the effect of poverty on the incidence of disability, 
it then caps the level of funding to Puerto Rico precisely 
because many children in Puerto Rico are poor. Where the new 
formula purports to address the problem of over-representation 
of minorities in special education, the formula then discounts 
an entire population of minority children.
    By refusing to recognize each child with a disability, the 
proposed formula ignores the overall philosophy of IDEA, i.e., 
that the right of individuals with disabilities to a free and 
appropriate education is derived from the equal protection 
clause of the Fourteenth Amendment of the United States 
Constitution. That's why each disabled student gets an 
Individualized Education Program. Since the amount of money 
granted to individual students will vary on a state by state 
basis, it is questionable whether each child is granted equal 
opportunities guaranteed under the Constitution.
    We agree that there are some issues pertaining to the 
identification process. The Department of Education has 
identified under- and over-identification as well as a bias 
towards African-American children. These issues are much too 
complex to be resolved through a new proposed formula which 
will do nothing to address the issue, it could even perpetuate 
it. We believe that the proposed formula is ineffective, 
unnecessary, and unfair.

                                   William L. Clay.
                                   Dale E. Kildee.
                                   Jack Reed.
                                   Earl Blumenauer.
                                   George Miller.
                                   Pat Williams.
                                   Major R. Owens.
                                   Donald M. Payne.
                                   Robert E. Andrews.
                                   Tim Roemer.
                 DISSENTING VIEWS OFFERED BY MR. OWENS

    Twenty-one years ago Congress opened the door for millions 
of children with disabilities to complete school and become 
productive citizens. However, this victory has not been fully 
manifested for some groups of children and families of children 
who are traditionally underserved due to their marginalized 
societal status. H.R. 3268 abandons current law and fails to 
provide direct funding for full participation of minorities 
through recruitment of minorities into teaching and financially 
assisting Historically Black Colleges and Universities in their 
efforts to prepare students for careers in special education 
and related services. Additionally, this bill weakens the 
current Federal provision of Community Parent Resource Centers 
(CPRCs).

           direct funding for activities assisting minorities

    As a group, minority children represent a large percentage 
of public school students. In large urban school systems such 
as Miami, Chicago, Baltimore and Los Angeles, minority students 
comprise over 80 percent of the school population. Moreover, 
the number of children with limited English proficiency is the 
fastest growing in the country. While the number of minority 
children receiving special education in public schools 
continues to grow, recruitment, training, and retention of 
personnel continue to be problems in the provision of special 
education and related services to children with disabilities.
    In 1990-1991, 38 percent of all schools had teaching 
vacancies in special education. Schools that were 20 percent or 
more minority were more likely to have teaching vacancies than 
those with lower percentages of minority enrollments. In the 
area of personnel recruitment, there is a need for the 
Department of Education to continue providing technical 
assistance and funding to Historically Black Colleges and 
Universities so that they can continue to develop creative new 
programs in the field of special education, and establish a 
career development mentoring program using faculty and 
professional staff members of participating agencies as role 
models, career sponsors and academic advisors for personnel 
committed to working in special education and related services. 
We must ensure that all schools have adequately trained, 
competent personnel educating children with disabilities.

               cprcs--a valuable community-based project

    We strongly support the provision of funding for Parent 
Training and Information (PTI) Projects around the Nation, and 
would ask that this area of parent participation be constantly 
strengthened. However, parents in our Nation's poorest urban 
and rural communities continue to be severely hampered in their 
quest for access to training and information. As a result, they 
are underrepresented among those who access the established 
systems of obtaining information and support needed to guide 
their children in the process of obtaining a free, appropriate 
education.
    In the 1990 amendment to IDEA, a strong bipartisan effort 
provided a remedy in the form of a measure providing for the 
development of grassroots, community-based programs to serve 
chronically unrepresented parents of children with disabilities 
residing in the Nation's poorest urban and rural areas. During 
the first two years of the Community Parent Training Program 
Initiative (formerly the Experimental Project Initiative), the 
Technical Assistance for Parent Programs Project (TAPP) 
provided direct technical assistance to more than 25 parent 
groups or individuals working on special education issues in 
their communities. Assistance included training in 
organizational skills, coalition building, grant writing, board 
development and grassroots leadership development in 
underserved communities in preparation for the participation of 
grassroots organizations in the first Experimental Projects 
competition for funding OSERS.
    The first Experimental Projects competition was conducted 
in the fall of 1992 and only four community projects were 
approved for funding by the Department of Education. Three 
years later, a second competition yielded funding for five 
centers. A recent survey showed that collectively, the 
community-based programs served over 150,000 parents in over 50 
communities. The following list represents fourteen community-
based parent projects delivering service throughout the United 
States on grants ranging from $2,500 to $10,000 per project:
    (1) Coalition of Florida Farmworkers Organizations--
Homestead, Florida
    (2) Island Parents Educational Support and Training 
Center--Martha's Vineyard and Nantucket
    (3) Loving Your Disabled Child--Los Angeles, California
    (4) Mentor Parent Program--Seneca, Venango County, 
Pennsylvania
    (5) Parent Empowerment Project--Immokalee, Florida
    (6) Parents of Watts--Los Angeles, California
    (7) Parent to Parent Power--Tacoma, Washington
    (8) Pyramid Parent Training--New Orleans, Louisiana
    (9) Reaching Harmony, Native American Family Support, 
Inc.--Fort Defiance, Arizona
    (10) Special Kids, Inc.--Houston, Texas
    (11) United We Stand--Brooklyn, New York
    (12) Upbeatt--Detroit, Michigan
    (13) Vietnamese Parents with Disabled Children Association, 
Inc.--Carson, California
    (14) Virgin Islands Family Information Network on 
Disabilities--U.S. Virgin Islands
    We must seek to strengthen this measure.
    Disability is a partisan issue affecting children and 
families in every Congressional district. These initiatives are 
of vital importance in ensuring that the educational needs of 
all children with disabilities are met.
                                                    Major R. Owens.