[House Report 105-95]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-95
_______________________________________________________________________


 
     INDIVIDUALS WITH DISABILITIES EDUCATION ACT AMENDMENTS OF 1997


                               ----------                              

                              R E P O R T

                                 of the

                              COMMITTEE ON
                      EDUCATION AND THE WORKFORCE
                        HOUSE OF REPRESENTATIVES

                                   on

                                 H.R. 5

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

      [Including cost estimate of the Congressional Budget Office]




  May 13, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed




105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-95
_______________________________________________________________________


     INDIVIDUALS WITH DISABILITIES EDUCATION ACT AMENDMENTS OF 1997


                               __________

                              R E P O R T

                                 of the

                              COMMITTEE ON

                      EDUCATION AND THE WORKFORCE

                        HOUSE OF REPRESENTATIVES

                                   on

                                 H.R. 5

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

      [Including cost estimate of the Congressional Budget Office]




  May 13, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed


105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-95
_______________________________________________________________________


     INDIVIDUALS WITH DISABILITIES EDUCATION ACT AMENDMENTS OF 1997

                                _______
                                

  May 13, 1997.--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 Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                     ADDTIONAL AND DISSENTING VIEWS

                         [To accompany H.R. 5]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 5) to amend the Individuals with 
Disabilities Education Act, to reauthorize and make 
improvements to that Act, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Individuals with Disabilities 
Education Act Amendments of 1997''.

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

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

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

                      ``PART A--GENERAL PROVISIONS

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

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

                      ``Part A--General Provisions

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

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

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

            ``Part C--Infants and Toddlers with Disabilities

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

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

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

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

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

``Sec. 661. Administrative provisions.

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

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

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

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

  ``(c) Findings.--The Congress finds the following:
          ``(1) Disability is a natural part of the human experience 
        and in no way diminishes the right of individuals to 
        participate in or contribute to society. Improving educational 
        results for children with disabilities is an essential element 
        of our national policy of ensuring equality of opportunity, 
        full participation, independent living, and economic self-
        sufficiency for individuals with disabilities.
          ``(2) Before the date of the enactment of the Education for 
        All Handicapped Children Act of 1975 (Public Law 94-142)--
                  ``(A) the special educational needs of children with 
                disabilities were not being fully met;
                  ``(B) more than one-half of the children with 
                disabilities in the United States did not receive 
                appropriate educational services that would enable such 
                children to have full equality of opportunity;
                  ``(C) 1,000,000 of the children with disabilities in 
                the United States were excluded entirely from the 
                public school system and did not go through the 
                educational process with their peers;
                  ``(D) there were many children with disabilities 
                throughout the United States participating in regular 
                school programs whose disabilities prevented such 
                children from having a successful educational 
                experience because their disabilities were undetected; 
                and
                  ``(E) because of the lack of adequate services within 
                the public school system, families were often forced to 
                find services outside the public school system, often 
                at great distance from their residence and at their own 
                expense.
          ``(3) Since the enactment and implementation of the Education 
        for All Handicapped Children Act of 1975, this Act has been 
        successful in ensuring children with disabilities and the 
        families of such children access to a free appropriate public 
        education and in improving educational results for children 
        with disabilities.
          ``(4) However, the implementation of this Act has been 
        impeded by low expectations, and an insufficient focus on 
        applying replicable research on proven methods of teaching and 
        learning for children with disabilities.
          ``(5) Over 20 years of research and experience has 
        demonstrated that the education of children with disabilities 
        can be made more effective by--
                  ``(A) having high expectations for such children and 
                ensuring their access in the general curriculum to the 
                maximum extent possible;
                  ``(B) strengthening the role of parents and ensuring 
                that families of such children have meaningful 
                opportunities to participate in the education of their 
                children at school and at home;
                  ``(C) coordinating this Act with other local, 
                educational service agency, State, and Federal school 
                improvement efforts in order to ensure that such 
                children benefit from such efforts and that special 
                education can become a service for such children rather 
                than a place where they are sent;
                  ``(D) providing appropriate special education and 
                related services and aids and supports in the regular 
                classroom to such children, whenever appropriate;
                  ``(E) supporting high-quality, intensive professional 
                development for all personnel who work with such 
                children in order to ensure that they have the skills 
                and knowledge necessary to enable them--
                          ``(i) to meet developmental goals and, to the 
                        maximum extent possible, those challenging 
                        expectations that have been established for all 
                        children; and
                          ``(ii) to be prepared to lead productive, 
                        independent, adult lives, to the maximum extent 
                        possible;
                  ``(F) providing incentives for whole-school 
                approaches and pre-referral intervention to reduce the 
                need to label children as disabled in order to address 
                their learning needs; and
                  ``(G) focusing resources on teaching and learning 
                while reducing paperwork and requirements that do not 
                assist in improving educational results.
          ``(6) While States, local educational agencies, and 
        educational service agencies are responsible for providing an 
        education for all children with disabilities, it is in the 
        national interest that the Federal Government have a role in 
        assisting State and local efforts to educate children with 
        disabilities in order to improve results for such children and 
        to ensure equal protection of the law.
          ``(7)(A) The Federal Government must be responsive to the 
        growing needs of an increasingly more diverse society. A more 
        equitable allocation of resources is essential for the Federal 
        Government to meet its responsibility to provide an equal 
        educational opportunity for all individuals.
          ``(B) America's racial profile is rapidly changing. Between 
        1980 and 1990, the rate of increase in the population for white 
        Americans was 6 percent, while the rate of increase for racial 
        and ethnic minorities was much higher: 53 percent for 
        Hispanics, 13.2 percent for African-Americans, and 107.8 
        percent for Asians.
          ``(C) By the year 2000, this Nation will have 275,000,000 
        people, nearly one of every three of whom will be either 
        African-American, Hispanic, Asian-American, or American Indian.
          ``(D) Taken together as a group, minority children are 
        comprising an ever larger percentage of public school students. 
        Large-city school populations are overwhelmingly minority, for 
        example: for fall 1993, the figure for Miami was 84 percent; 
        Chicago, 89 percent; Philadelphia, 78 percent; Baltimore, 84 
        percent; Houston, 88 percent; and Los Angeles, 88 percent.
          ``(E) Recruitment efforts within special education must focus 
        on bringing larger numbers of minorities into the profession in 
        order to provide appropriate practitioner knowledge, role 
        models, and sufficient manpower to address the clearly changing 
        demography of special education.
          ``(F) The limited English proficient population is the 
        fastest growing in our Nation, and the growth is occurring in 
        many parts of our Nation. In the Nation's 2 largest school 
        districts, limited English students make up almost half of all 
        students initially entering school at the kindergarten level. 
        Studies have documented apparent discrepancies in the levels of 
        referral and placement of limited English proficient children 
        in special education. The Department of Education has found 
        that services provided to limited English proficient students 
        often do not respond primarily to the pupil's academic needs. 
        These trends pose special challenges for special education in 
        the referral, assessment, and services for our Nation's 
        students from non-English language backgrounds.
          ``(8)(A) Greater efforts are needed to prevent the 
        intensification of problems connected with mislabeling and high 
        dropout rates among minority children with disabilities.
          ``(B) More minority children continue to be served in special 
        education than would be expected from the percentage of 
        minority students in the general school population.
          ``(C) Poor African-American children are 2.3 times more 
        likely to be identified by their teacher as having mental 
        retardation than their white counterpart.
          ``(D) Although African-Americans represent 16 percent of 
        elementary and secondary enrollments, they constitute 21 
        percent of total enrollments in special education.
          ``(E) The drop-out rate is 68 percent higher for minorities 
        than for whites.
          ``(F) More than 50 percent of minority students in large 
        cities drop out of school.
          ``(9)(A) The opportunity for full participation in awards for 
        grants and contracts; boards of organizations receiving funds 
        under this Act; and peer review panels; and training of 
        professionals in the area of special education by minority 
        individuals, organizations, and historically black colleges and 
        universities is essential if we are to obtain greater success 
        in the education of minority children with disabilities.
          ``(B) In 1993, of the 915,000 college and university 
        professors, 4.9 percent were African-American and 2.4 percent 
        were Hispanic. Of the 2,940,000 teachers, prekindergarten 
        through high school, 6.8 percent were African-American and 4.1 
        percent were Hispanic.
          ``(C) Students from minority groups comprise more than 50 
        percent of K-12 public school enrollment in seven States yet 
        minority enrollment in teacher training programs is less than 
        15 percent in all but six States.
          ``(D) As the number of African-American and Hispanic students 
        in special education increases, the number of minority teachers 
        and related service personnel produced in our colleges and 
        universities continues to decrease.
          ``(E) Ten years ago, 12 percent of the United States teaching 
        force in public elementary and secondary schools were members 
        of a minority group. Minorities comprised 21 percent of the 
        national population at that time and were clearly 
        underrepresented then among employed teachers. Today, the 
        elementary and secondary teaching force is 13 percent minority, 
        while one-third of the students in public schools are minority 
        children.
          ``(F) As recently as 1991, historically black colleges and 
        universities enrolled 44 percent of the African-American 
        teacher trainees in the Nation. However, in 1993, historically 
        black colleges and universities received only 4 percent of the 
        discretionary funds for special education and related services 
        personnel training under this Act.
          ``(G) While African-American students constitute 28 percent 
        of total enrollment in special education, only 11.2 percent of 
        individuals enrolled in preservice training programs for 
        special education are African-American.
          ``(H) In 1986-87, of the degrees conferred in education at 
        the B.A., M.A., and Ph.D levels, only 6, 8, and 8 percent, 
        respectively, were awarded to African-American or Hispanic 
        students.
          ``(10) Minorities and underserved persons are socially 
        disadvantaged because of the lack of opportunities in training 
        and educational programs, undergirded by the practices in the 
        private sector that impede their full participation in the 
        mainstream of society.
  ``(d) Purposes.--The purposes of this title are--
          ``(1)(A) to ensure that all children with disabilities have 
        available to them a free appropriate public education that 
        emphasizes special education and related services designed to 
        meet their unique needs and prepare them for employment and 
        independent living;
          ``(B) to ensure that the rights of children with disabilities 
        and parents of such children are protected; and
          ``(C) to assist States, localities, educational service 
        agencies, and Federal agencies to provide for the education of 
        all children with disabilities;
          ``(2) to assist States in the implementation of a statewide, 
        comprehensive, coordinated, multidisciplinary, interagency 
        system of early intervention services for infants and toddlers 
        with disabilities and their families;
          ``(3) to ensure that educators and parents have the necessary 
        tools to improve educational results for children with 
        disabilities by supporting systemic-change activities; 
        coordinated research and personnel preparation; coordinated 
        technical assistance, dissemination, and support; and 
        technology development and media services; and
          ``(4) to assess, and ensure the effectiveness of, efforts to 
        educate children with disabilities.

``SEC. 602. DEFINITIONS.

  ``Except as otherwise provided, as used in this Act:
          ``(1) Assistive technology device.--The term `assistive 
        technology device' means any item, piece of equipment, or 
        product system, whether acquired commercially off the shelf, 
        modified, or customized, that is used to increase, maintain, or 
        improve functional capabilities of a child with a disability.
          ``(2) Assistive technology service.--The term `assistive 
        technology service' means any service that directly assists a 
        child with a disability in the selection, acquisition, or use 
        of an assistive technology device. Such term includes--
                  ``(A) the evaluation of the needs of such child, 
                including a functional evaluation of the child in the 
                child's customary environment;
                  ``(B) purchasing, leasing, or otherwise providing for 
                the acquisition of assistive technology devices by such 
                child;
                  ``(C) selecting, designing, fitting, customizing, 
                adapting, applying, maintaining, repairing, or 
                replacing of assistive technology devices;
                  ``(D) coordinating and using other therapies, 
                interventions, or services with assistive technology 
                devices, such as those associated with existing 
                education and rehabilitation plans and programs;
                  ``(E) training or technical assistance for such 
                child, or, where appropriate, the family of such child; 
                and
                  ``(F) training or technical assistance for 
                professionals (including individuals providing 
                education and rehabilitation services), employers, or 
                other individuals who provide services to, employ, or 
                are otherwise substantially involved in the major life 
                functions of such child.
          ``(3) Child with a disability.--
                  ``(A) In general.--The term `child with a disability' 
                means a child--
                          ``(i) with mental retardation, hearing 
                        impairments (including deafness), speech or 
                        language impairments, visual impairments 
                        (including blindness), serious emotional 
                        disturbance (hereinafter referred to as 
                        `emotional disturbance'), orthopedic 
                        impairments, autism, traumatic brain injury, 
                        other health impairments, or specific learning 
                        disabilities; and
                          ``(ii) who, by reason thereof, needs special 
                        education and related services.
                  ``(B) Child aged 3 through 9.--The term `child with a 
                disability' for a child aged 3 through 9 may, at the 
                discretion of the State and the local educational 
                agency, include a child--
                          ``(i) experiencing developmental delays, as 
                        defined by the State and as measured by 
                        appropriate diagnostic instruments and 
                        procedures, in one or more of the following 
                        areas: physical development, cognitive 
                        development, communication development, social 
                        or emotional development, or adaptive 
                        development; and
                          ``(ii) who, by reason thereof, needs special 
                        education and related services.
          ``(4) Educational service agency.--The term `educational 
        service agency'--
                  ``(A) means a regional public multiservice agency--
                          ``(i) authorized by State law to develop, 
                        manage, and provide services or programs to 
                        local educational agencies; and
                          ``(ii) recognized as an administrative agency 
                        for purposes of the provision of special 
                        education and related services provided within 
                        public elementary and secondary schools of the 
                        State; and
                  ``(B) includes any other public institution or agency 
                having administrative control and direction over a 
                public elementary or secondary school.
          ``(5) Elementary school.--The term `elementary school' means 
        a nonprofit institutional day or residential school that 
        provides elementary education, as determined under State law.
          ``(6) Equipment.--The term `equipment' includes--
                  ``(A) machinery, utilities, and built-in equipment 
                and any necessary enclosures or structures to house 
                such machinery, utilities, or equipment; and
                  ``(B) all other items necessary for the functioning 
                of a particular facility as a facility for the 
                provision of educational services, including items such 
                as instructional equipment and necessary furniture; 
                printed, published, and audio-visual instructional 
                materials; telecommunications, sensory, and other 
                technological aids and devices; and books, periodicals, 
                documents, and other related materials.
          ``(7) Excess costs.--The term `excess costs' means those 
        costs that are in excess of the average annual per-student 
        expenditure in a local educational agency during the preceding 
        school year for an elementary or secondary school student, as 
        may be appropriate, and which shall be computed after 
        deducting--
                  ``(A) amounts received--
                          ``(i) under part B of this title;
                          ``(ii) under part A of title I of the 
                        Elementary and Secondary Education Act of 1965; 
                        or
                          ``(iii) under part A of title VII of that 
                        Act; and
                  ``(B) any State or local funds expended for programs 
                that would qualify for assistance under any of those 
                parts.
          ``(8) Free appropriate public education.--The term `free 
        appropriate public education' means special education and 
        related services that--
                  ``(A) have been provided at public expense, under 
                public supervision and direction, and without charge;
                  ``(B) meet the standards of the State educational 
                agency;
                  ``(C) include an appropriate preschool, elementary, 
                or secondary school education in the State involved; 
                and
                  ``(D) are provided in conformity with the 
                individualized education program required under section 
                614(d).
          ``(9) Indian.--The term `Indian' means an individual who is a 
        member of an Indian tribe.
          ``(10) Indian tribe.--The term `Indian tribe' means any 
        Federal or State Indian tribe, band, rancheria, pueblo, colony, 
        or community, including any 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).
          ``(12) Individualized family service plan.--The term 
        `individualized family service plan' has the meaning given such 
        term in section 632.
          ``(13) Infant or toddler with a disability.--The term `infant 
        or toddler with a disability' has the meaning given such term 
        in section 632.
          ``(14) Institution of higher education.--The term 
        `institution of higher education'--
                  ``(A) has the meaning given that term in section 
                1201(a) of the Higher Education Act of 1965; and
                  ``(B) also includes any community college receiving 
                funding from the Secretary of the Interior under the 
                Tribally Controlled Community College Assistance Act of 
                1978.
          ``(15) Local educational agency.--
                  ``(A) The term `local educational agency' means a 
                public board of education or other public authority 
                legally constituted within a State for either 
                administrative control or direction of, or to perform a 
                service function for, public elementary or secondary 
                schools in a city, county, township, school district, 
                or other political subdivision of a State, or for such 
                combination of school districts or counties as are 
                recognized in a State as an administrative agency for 
                its public elementary or secondary schools.
                  ``(B) The term includes--
                          ``(i) an educational service agency, as 
                        defined in paragraph (4); and
                          ``(ii) any other public institution or agency 
                        having administrative control and direction of 
                        a public elementary or secondary school.
                  ``(C) The term includes an elementary or secondary 
                school funded by the Bureau of Indian Affairs, but only 
                to the extent that such inclusion makes the school 
                eligible for programs for which specific eligibility is 
                not provided to the school in another provision of law 
                and the school does not have a student population that 
                is smaller than the student population of the local 
                educational agency receiving assistance under this Act 
                with the smallest student population, except that the 
                school shall not be subject to the jurisdiction of any 
                State educational agency other than the Bureau of 
                Indian Affairs.
          ``(16) Native language.--The term `native language', when 
        used with reference to an individual of limited English 
        proficiency, means the language normally used by the 
        individual, or in the case of a child, the language normally 
        used by the parents of the child.
          ``(17) Nonprofit.--The term `nonprofit', as applied to a 
        school, agency, organization, or institution, means a school, 
        agency, organization, or institution owned and operated by one 
        or more nonprofit corporations or associations no part of the 
        net earnings of which inures, or may lawfully inure, to the 
        benefit of any private shareholder or individual.
          ``(18) Outlying area.--The term `outlying area' means the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
          ``(19) Parent.--The term `parent'--
                  ``(A) includes a legal guardian; and
                  ``(B) except as used in sections 615(b)(2) and 
                639(a)(5), includes an individual assigned under either 
                of those sections to be a surrogate parent.
          ``(20) Parent organization.--The term `parent organization' 
        has the meaning given that term in section 682(g).
          ``(21) Parent training and information center.--The term 
        `parent training and information center' means a center 
        assisted under section 682 or 683.
          ``(22) Related services.--The term `related services' means 
        transportation, and such developmental, corrective, and other 
        supportive services (including speech-language pathology and 
        audiology services, psychological services, physical and 
        occupational therapy, recreation, including therapeutic 
        recreation, social work services, counseling services, 
        including rehabilitation counseling, orientation and mobility 
        services, and medical services, except that such medical 
        services shall be for diagnostic and evaluation purposes only) 
        as may be required to assist a child with a disability to 
        benefit from special education, and includes the early 
        identification and assessment of disabling conditions in 
        children.
          ``(23) Secondary school.--The term `secondary school' means a 
        nonprofit institutional day or residential school that provides 
        secondary education, as determined under State law, except that 
        it does not include any education beyond grade 12.
          ``(24) Secretary.--The term `Secretary' means the Secretary 
        of Education.
          ``(25) Special education.--The term `special education' means 
        specially designed instruction, at no cost to parents, to meet 
        the unique needs of a child with a disability, including--
                  ``(A) instruction conducted in the classroom, in the 
                home, in hospitals and institutions, and in other 
                settings; and
                  ``(B) instruction in physical education.
          ``(26) Specific learning disability.--
                  ``(A) In general.--The term `specific learning 
                disability' means a disorder in one or more of the 
                basic psychological processes involved in understanding 
                or in using language, spoken or written, which disorder 
                may manifest itself in imperfect ability to listen, 
                think, speak, read, write, spell, or do mathematical 
                calculations.
                  ``(B) Disorders included.--Such term includes such 
                conditions as perceptual disabilities, brain injury, 
                minimal brain dysfunction, dyslexia, and developmental 
                aphasia.
                  ``(C) Disorders not included.--Such term does not 
                include a learning problem that is primarily the result 
                of visual, hearing, or motor disabilities, of mental 
                retardation, of emotional disturbance, or of 
                environmental, cultural, or economic disadvantage.
          ``(27) State.--The term `State' means each of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, and 
        each of the outlying areas.
          ``(28) State educational agency.--The term `State educational 
        agency' means the State board of education or other agency or 
        officer primarily responsible for the State supervision of 
        public elementary and secondary schools, or, if there is no 
        such officer or agency, an officer or agency designated by the 
        Governor or by State law.
          ``(29) Supplementary aids and services.--The term 
        `supplementary aids and services' means, aids, services, and 
        other supports that are provided in regular education classes 
        or other education-related settings to enable children with 
        disabilities to be educated with nondisabled children to the 
        maximum extent appropriate in accordance with section 
        612(a)(5).
          ``(30) Transition services.--The term `transition services' 
        means a coordinated set of activities for a student with a 
        disability that--
                  ``(A) 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 student's needs, 
                taking into account the student'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 Act 
and other programs and activities concerning the education of children 
with disabilities.
  ``(b) Director.--The Office established under subsection (a) shall be 
headed by a Director who shall be selected by the Secretary and shall 
report directly to the Assistant Secretary for Special Education and 
Rehabilitative Services.
  ``(c) Voluntary and Uncompensated Services.--Notwithstanding section 
1342 of title 31, United States Code, the Secretary is authorized to 
accept voluntary and uncompensated services in furtherance of the 
purposes of this Act.

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

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

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

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

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

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

``SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

  ``(a) Public Comment Period.--The Secretary shall provide a public 
comment period of at least 90 days on any regulation proposed under 
part B or part C of this Act on which an opportunity for public comment 
is otherwise required by law.
  ``(b) Protections Provided to Children.--The Secretary may not 
implement, or publish in final form, any regulation prescribed pursuant 
to this Act that would procedurally or substantively lessen the 
protections provided to children with disabilities under this Act, as 
embodied in regulations in effect on July 20, 1983 (particularly as 
such protections relate to parental consent to initial evaluation or 
initial placement in special education, least restrictive environment, 
related services, timelines, attendance of evaluation personnel at 
individualized education program meetings, or qualifications of 
personnel), except to the extent that such regulation reflects the 
clear and unequivocal intent of the Congress in legislation.
  ``(c) Policy Letters and Statements.--The Secretary may not, through 
policy letters or other statements, establish a rule that is required 
for compliance with, and eligibility under, this part without following 
the requirements of section 553 of title 5, United States Code.
  ``(d) Correspondence From Department of Education Describing 
Interpretations of This Part.--
          ``(1) In general.--The Secretary shall, on a quarterly basis, 
        publish in the Federal Register, and widely disseminate to 
        interested entities through various additional forms of 
        communication, a list of correspondence from the Department of 
        Education received by individuals during the previous quarter 
        that describes the interpretations of the Department of 
        Education of this Act or the regulations implemented pursuant 
        to this Act.
          ``(2) Additional information.--For each item of 
        correspondence published in a list under paragraph (1), the 
        Secretary shall identify the topic addressed by the 
        correspondence and shall include such other summary information 
        as the Secretary determines to be appropriate.
  ``(e) Issues of National Significance.--If the Secretary receives a 
written request regarding a policy, question, or interpretation under 
part B of this Act, and determines that it raises an issue of general 
interest or applicability of national significance to the 
implementation of part B, the Secretary shall--
          ``(1) include a statement to that effect in any written 
        response;
          ``(2) widely disseminate that response to State educational 
        agencies, local educational agencies, parent and advocacy 
        organizations, and other interested organizations, subject to 
        applicable laws relating to confidentiality of information; and
          ``(3) not later than one year after the date on which the 
        Secretary responds to the written request, issue written 
        guidance on such policy, question, or interpretation through 
        such means as the Secretary determines to be appropriate and 
        consistent with law, such as a policy memorandum, notice of 
        interpretation, or notice of proposed rulemaking.
  ``(f) Explanation.--Any written response by the Secretary under 
subsection (e) regarding a policy, question, or interpretation under 
part B of this Act shall include an explanation that the written 
response--
          ``(1) is provided as informal guidance and is not legally 
        binding; and
          ``(2) represents the interpretation by the Department of 
        Education of the applicable statutory or regulatory 
        requirements in the context of the specific facts presented.

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

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

  ``(a) Grants to States.--
          ``(1) Purpose of grants.--The Secretary shall make grants to 
        States and the outlying areas, and provide funds to the 
        Secretary of the Interior, to assist them to provide special 
        education and related services to children with disabilities in 
        accordance with this part.
          ``(2) Maximum amounts.--The maximum amount of the grant a 
        State may receive under this section for any fiscal year is--
                  ``(A) the number of children with disabilities in the 
                State who are receiving special education and related 
                services--
                          ``(i) aged three through five if the State is 
                        eligible for a grant under section 619; and
                          ``(ii) aged six through 21; multiplied by
                  ``(B) 40 percent of the average per-pupil expenditure 
                in public elementary and secondary schools in the 
                United States.
  ``(b) Outlying Areas and Freely Associated States.--
          ``(1) Funds reserved.--From the amount appropriated for any 
        fiscal year under subsection (j), the Secretary shall reserve 
        not more than one percent, which shall be used--
                  ``(A) to provide assistance to the outlying areas in 
                accordance with their respective populations of 
                individuals aged three through 21; and
                  ``(B) for fiscal years 1998 through 2001, to carry 
                out the competition described in paragraph (2), except 
                that the amount reserved to carry out that competition 
                shall not exceed the amount reserved for fiscal year 
                1996 for the competition under part B of this Act 
                described under the heading ``SPECIAL EDUCATION'' in 
                Public Law 104-134.
          ``(2) Limitation for freely associated states.--
                  ``(A) Competitive grants.--The Secretary shall use 
                funds described in paragraph (1)(B) to award grants, on 
                a competitive basis, to Guam, American Samoa, the 
                Commonwealth of the Northern Mariana Islands, and the 
                freely associated States to carry out the purposes of 
                this part.
                  ``(B) Award basis.--The Secretary shall award grants 
                under subparagraph (A) on a competitive basis, pursuant 
                to the recommendations of the Pacific Region 
                Educational Laboratory in Honolulu, Hawaii. Those 
                recommendations shall be made by experts in the field 
                of special education and related services.
                  ``(C) Assistance requirements.--Any freely associated 
                State that wishes to receive funds under this part 
                shall include, in its application for assistance--
                          ``(i) information demonstrating that it will 
                        meet all conditions that apply to States under 
                        this part;
                          ``(ii) an assurance that, notwithstanding any 
                        other provision of this part, it will use those 
                        funds only for the direct provision of special 
                        education and related services to children with 
                        disabilities and to enhance its capacity to 
                        make a free appropriate public education 
                        available to all children with disabilities;
                          ``(iii) identify the source and amount of 
                        funds, in addition to funds under this part, 
                        that it will make available to ensure that a 
                        free appropriate public education is available 
                        to all children with disabilities within its 
                        jurisdiction; and
                          ``(iv) such other information and assurances 
                        as the Secretary may require.
                  ``(D) Termination of eligibility.--Notwithstanding 
                any other provision of law, the freely associated 
                States shall not receive any funds under this part for 
                any program year that begins after September 30, 2001.
                  ``(E) Administrative costs.--The Secretary may 
                provide not more than five percent of the amount 
                reserved for grants under this paragraph to pay the 
                administrative costs of the Pacific Region Educational 
                Laboratory under subparagraph (B).
          ``(3) Limitation.--An outlying area is not eligible for a 
        competitive award under paragraph (2) unless it receives 
        assistance under paragraph (1)(A).
          ``(4) Special rule.--The provisions of Public Law 95-134, 
        permitting the consolidation of grants by the outlying areas, 
        shall not apply to funds provided to those areas or to the 
        freely associated States under this section.
          ``(5) Eligibility for discretionary programs.--The freely 
        associated States shall be eligible to receive assistance under 
        subpart 2 of part D of this Act until September 30, 2001.
          ``(6) Definition.--As used in this subsection, the term 
        'freely associated States' means the Republic of the Marshall 
        Islands, the Federated States of Micronesia, and the Republic 
        of Palau.
  ``(c) Secretary of the Interior.--From the amount appropriated for 
any fiscal year under subsection (j), the Secretary shall reserve 1.226 
percent to provide assistance to the Secretary of the Interior in 
accordance with subsection (i).
  ``(d) Allocations to States.--
          ``(1) In general.--After reserving funds for studies and 
        evaluations under section 674(e), and for payments to the 
        outlying areas and the Secretary of the Interior under 
        subsections (b) and (c), the Secretary shall allocate the 
        remaining amount among the States in accordance with paragraph 
        (2) or subsection (e), as the case may be.
          ``(2) Interim formula.--Except as provided in subsection (e), 
        the Secretary shall allocate the amount described in paragraph 
        (1) among the States in accordance with section 611(a)(3), (4), 
        and (5) and (b)(1), (2), and (3) of this Act, as in effect 
        prior to the enactment of the Individuals with Disabilities 
        Education Act Amendments of 1997, except that the determination 
        of the number of children with disabilities receiving special 
        education and related services under such section 611(a)(3) 
        may, at the State's discretion, be calculated as of the last 
        Friday in October or as of December 1 of the fiscal year for 
        which the funds are appropriated.
  ``(e) Permanent Formula.--
          ``(1) Establishment of base year.--The Secretary shall 
        allocate the amount described in subsection (d)(1) among the 
        States in accordance with this subsection for each fiscal year 
        beginning with the first fiscal year for which the amount 
        appropriated under subsection (j) is more than $4,924,672,200.
          ``(2) Use of base year.--
                  ``(A) Definition.--As used in this subsection, the 
                term `base year' means the fiscal year preceding the 
                first fiscal year in which this subsection applies.
                  ``(B) Special rule for use of base year amount.--If a 
                State received any funds under this section for the 
                base year on the basis of children aged three through 
                five, but does not make a free appropriate public 
                education available to all children with disabilities 
                aged three through five in the State in any subsequent 
                fiscal year, the Secretary shall compute the State's 
                base year amount, solely for the purpose of calculating 
                the State's allocation in that subsequent year under 
                paragraph (3) or (4), by subtracting the amount 
                allocated to the State for the base year on the basis 
                of those children.
          ``(3) Increase in funds.--If the amount available for 
        allocations to States under paragraph (1) is equal to or 
        greater than the amount allocated to the States under this 
        paragraph for the preceding fiscal year, those allocations 
        shall be calculated as follows:
                  ``(A)(i) Except as provided in subparagraph (B), the 
                Secretary shall--
                          ``(I) allocate to each State the amount it 
                        received for the base year;
                          ``(II) allocate 85 percent of any remaining 
                        funds to States on the basis of their relative 
                        populations of children aged 3 through 21 who 
                        are of the same age as children with 
                        disabilities for whom the State ensures the 
                        availability of a free appropriate public 
                        education under this part; and
                          ``(III) allocate 15 percent of those 
                        remaining funds to States on the basis of their 
                        relative populations of children described in 
                        subclause (II) who are living in poverty.
                  ``(ii) For the purpose of making grants under this 
                paragraph, the Secretary shall use the most recent 
                population data, including data on children living in 
                poverty, that are available and satisfactory to the 
                Secretary.
                  ``(B) Notwithstanding subparagraph (A), allocations 
                under this paragraph shall be subject to the following:
                          ``(i) No State's allocation shall be less 
                        than its allocation for the preceding fiscal 
                        year.
                          ``(ii) No State's allocation shall be less 
                        than the greatest of--
                                  ``(I) the sum of--
                                          ``(aa) the amount it received 
                                        for the base year; and
                                          ``(bb) one third of one 
                                        percent of the amount by which 
                                        the amount appropriated under 
                                        subsection (j) exceeds the 
                                        amount appropriated under this 
                                        section for the base year;
                                  ``(II) the sum of--
                                          ``(aa) the amount it received 
                                        for the preceding fiscal year; 
                                        and
                                          ``(bb) that amount multiplied 
                                        by the percentage by which the 
                                        increase in the funds 
                                        appropriated from the preceding 
                                        fiscal year exceeds 1.5 
                                        percent; or
                                  ``(III) the sum of--
                                          ``(aa) the amount it received 
                                        for the preceding fiscal year; 
                                        and
                                          ``(bb) that amount multiplied 
                                        by 90 percent of the percentage 
                                        increase in the amount 
                                        appropriated from the preceding 
                                        fiscal year.
                          ``(iii) Notwithstanding clause (ii), no 
                        State's allocation under this paragraph shall 
                        exceed the sum of--
                                  ``(I) the amount it received for the 
                                preceding fiscal year; and
                                  ``(II) that amount multiplied by the 
                                sum of 1.5 percent and the percentage 
                                increase in the amount appropriated.
                  ``(C) If the amount available for allocations under 
                this paragraph is insufficient to pay those allocations 
                in full, those allocations shall be ratably reduced, 
                subject to subparagraph (B)(i).
          ``(4) Decrease in funds.--If the amount available for 
        allocations to States under paragraph (1) is less than the 
        amount allocated to the States under this section for the 
        preceding fiscal year, those allocations shall be calculated as 
        follows:
                  ``(A) If the amount available for allocations is 
                greater than the amount allocated to the States for the 
                base year, each State shall be allocated the sum of--
                          ``(i) the amount it received for the base 
                        year; and
                          ``(ii) an amount that bears the same relation 
                        to any remaining funds as the increase the 
                        State received for the preceding fiscal year 
                        over the base year bears to the total of all 
                        such increases for all States.
                  ``(B)(i) If the amount available for allocations is 
                equal to or less than the amount allocated to the 
                States for the base year, each State shall be allocated 
                the amount it received for the base year.
                  ``(ii) If the amount available is insufficient to 
                make the allocations described in clause (i), those 
                allocations shall be ratably reduced.
  ``(f) State-Level Activities.--
          ``(1) General.--
                  ``(A) Each State may retain not more than the amount 
                described in subparagraph (B) for administration and 
                other State-level activities in accordance with 
                paragraphs (2) and (3).
                  ``(B) For each fiscal year, the Secretary shall 
                determine and report to the State educational agency an 
                amount that is 25 percent of the amount the State 
                received under this section for fiscal year 1997, 
                cumulatively adjusted by the Secretary for each 
                succeeding fiscal year by the lesser of--
                          ``(i) the percentage increase, if any, from 
                        the preceding fiscal year in the State's 
                        allocation under this section; or
                          ``(ii) the rate of inflation, as measured by 
                        the percentage increase, if any, from the 
                        preceding fiscal year in the Consumer Price 
                        Index For All Urban Consumers, published by the 
                        Bureau of Labor Statistics of the Department of 
                        Labor.
                  ``(C) A State may use funds it retains under 
                subparagraph (A) without regard to--
                          ``(i) the prohibition on commingling of funds 
                        in section 612(a)(18)(B); and
                          ``(ii) the prohibition on supplanting other 
                        funds in section 612(a)(18)(C).
          ``(2) State administration.--
                  ``(A) For the purpose of administering this part, 
                including section 619 (including the coordination of 
                activities under this part with, and providing 
                technical assistance to, other programs that provide 
                services to children with disabilities)--
                          ``(i) each State may use not more than twenty 
                        percent of the maximum amount it may retain 
                        under paragraph (1)(A) for any fiscal year or 
                        $500,000 (adjusted by the cumulative rate of 
                        inflation since fiscal year 1998, as measured 
                        by the percentage increase, if any, in the 
                        Consumer Price Index For All Urban Consumers, 
                        published by the Bureau of Labor Statistics of 
                        the Department of Labor), whichever is greater; 
                        and
                          ``(ii) each outlying area may use up to five 
                        percent of the amount it receives under this 
                        section for any fiscal year or $35,000, 
                        whichever is greater.
                  ``(B) Funds described in subparagraph (A) may also be 
                used for the administration of part C of this Act, if 
                the State educational agency is the lead agency for the 
                State under that part.
          ``(3) Other state-level activities.--Each State shall use any 
        funds it retains under paragraph (1) and does not use for 
        administration under paragraph (2) for any of the following:
                  ``(A) Support and direct services, including 
                technical assistance and personnel development and 
                training.
                  ``(B) Administrative costs of monitoring and 
                complaint investigation, but only to the extent that 
                those costs exceed the costs incurred for those 
                activities during fiscal year 1985.
                  ``(C) To establish and implement the mediation 
                process required by section 615(e), including providing 
                for the costs of mediators and support personnel.
                  ``(D) To assist local educational agencies in meeting 
                personnel shortages.
                  ``(E) To develop a State Improvement Plan under 
                subpart 1 of part D.
                  ``(F) Activities at the State and local levels to 
                meet the performance goals established by the State 
                under section 612(a)(16) and to support implementation 
                of the State Improvement Plan under subpart 1 of part D 
                if the State receives funds under that subpart.
                  ``(G) To supplement other amounts used to develop and 
                implement a Statewide coordinated services system 
                designed to improve results for children and families, 
                including children with disabilities and their 
                families, but not to exceed one percent of the amount 
                received by the State under this section. This system 
                shall be coordinated with and, to the extent 
                appropriate, build on the system of coordinated 
                services developed by the State under part C of this 
                Act.
                  ``(H) For subgrants to local educational agencies for 
                the purposes described in paragraph (4)(A).
          ``(4)(A) Subgrants to Local Educational Agencies for 
        Capacity-Building and Improvement.--In any fiscal year in which 
        the percentage increase in the State's allocation under this 
        section exceeds the rate of inflation (as measured by the 
        percentage increase, if any, from the preceding fiscal year in 
        the Consumer Price Index For All Urban Consumers, published by 
        the Bureau of Labor Statistics of the Department of Labor), 
        each State shall reserve, from its allocation under this 
        section, the amount described in subparagraph (B) to make 
        subgrants to local educational agencies, unless that amount is 
        less than $100,000, to assist them in providing direct services 
        and in making systemic change to improve results for children 
        with disabilities through one or more of the following:
  ``(i) Direct services, including alternative programming for children 
who have been expelled from school, and services for children in 
correctional facilities, children enrolled in State-operated or State-
supported schools, and children in charter schools.
  ``(ii) Addressing needs or carrying out improvement strategies 
identified in the State's Improvement Plan under subpart 1 of part D.
  ``(iii) Adopting promising practices, materials, and technology, 
based on knowledge derived from education research and other sources.
  ``(iv) Establishing, expanding, or implementing interagency 
agreements and arrangements between local educational agencies and 
other agencies or organizations concerning the provision of services to 
children with disabilities and their families.
  ``(v) Increasing cooperative problem-solving between parents and 
school personnel and promoting the use of alternative dispute 
resolution.
          ``(B) Maximum subgrant.--For each fiscal year, the amount 
        referred to in subparagraph (A) is--
                  ``(i) the maximum amount the State was allowed to 
                retain under paragraph (1)(A) for the prior fiscal 
                year, or for fiscal year 1998, 25 percent of the 
                State's allocation for fiscal year 1997 under this 
                section; multiplied by
                  ``(ii) the difference between the percentage increase 
                in the State's allocation under this section and the 
                rate of inflation, as measured by the percentage 
                increase, if any, from the preceding fiscal year in the 
                Consumer Price Index For All Urban Consumers, published 
                by the Bureau of Labor Statistics of the Department of 
                Labor.
          ``(5) Report on Use of Funds.--As part of the information 
        required to be submitted to the Secretary under section 612, 
        each State shall annually describe--
                  ``(A) how amounts retained under paragraph (1) will 
                be used to meet the requirements of this part;
                  ``(B) how those amounts will be allocated among the 
                activities described in paragraphs (2) and (3) to meet 
                State priorities based on input from local educational 
                agencies; and
                  ``(C) the percentage of those amounts, if any, that 
                will be distributed to local educational agencies by 
                formula.
  ``(g) Subgrants to Local Educational Agencies.--
          ``(1) Subgrants required.--Each State that receives a grant 
        under this section for any fiscal year shall distribute any 
        funds it does not retain under subsection (f) (at least 75 
        percent of the grant funds) to local educational agencies in 
        the State that have established their eligibility under section 
        613, and to State agencies that received funds under section 
        614A(a) of this Act for fiscal year 1997, as then in effect, 
        and have established their eligibility under section 613, for 
        use in accordance with this part.
          ``(2) Allocations to local educational agencies.--
                  ``(A) Interim procedure.--For each fiscal year for 
                which funds are allocated to States under subsection 
                (d)(2), each State shall allocate funds under paragraph 
                (1) in accordance with section 611(d) of this Act, as 
                in effect prior to the enactment of the Individuals 
                with Disabilities Education Act Amendments of 1997.
                  ``(B) Permanent procedure.--For each fiscal year for 
                which funds are allocated to States under subsection 
                (e), each State shall allocate funds under paragraph 
                (1) as follows:
                          ``(i) Base payments.--The State shall first 
                        award each agency described in paragraph (1) 
                        the amount that agency would have received 
                        under this section for the base year, as 
                        defined in subsection (e)(2)(A), if the State 
                        had distributed 75 percent of its grant for 
                        that year under section 611(d), as then in 
                        effect.
                          ``(ii) Allocation of remaining funds.--After 
                        making allocations under clause (i), the State 
                        shall--
                                  ``(I) allocate 85 percent of any 
                                remaining funds to those agencies on 
                                the basis of the relative numbers of 
                                children enrolled in public and private 
                                elementary and secondary schools within 
                                the agency's jurisdiction; and
                                  ``(II) allocate 15 percent of those 
                                remaining funds to those agencies in 
                                accordance with their relative numbers 
                                of children living in poverty, as 
                                determined by the State educational 
                                agency.
          ``(3) Former chapter 1 state agencies.--
                  ``(A) To the extent necessary, the State--
                          ``(i) shall use funds that are available 
                        under subsection (f)(1)(A) to ensure that each 
                        State agency that received fiscal year 1994 
                        funds under subpart 2 of part D of chapter 1 of 
                        title I of the Elementary and Secondary 
                        Education Act of 1965 receives, from the 
                        combination of funds under subsection (f)(1)(A) 
                        and funds provided under paragraph (1) of this 
                        subsection, an amount equal to--
                                  ``(I) the number of children with 
                                disabilities, aged 6 through 21, to 
                                whom the agency was providing special 
                                education and related services on 
                                December 1 of the fiscal year for which 
                                the funds were appropriated, subject to 
                                the limitation in subparagraph (B); 
                                multiplied by
                                  ``(II) the per-child amount provided 
                                under such subpart for fiscal year 
                                1994; and
                          ``(ii) may use those funds to ensure that 
                        each local educational agency that received 
                        fiscal year 1994 funds under that subpart for 
                        children who had transferred from a State-
                        operated or State-supported school or program 
                        assisted under that subpart receives, from the 
                        combination of funds available under subsection 
                        (f)(1)(A) and funds provided under paragraph 
                        (1) of this subsection, an amount for each such 
                        child, aged 3 through 21 to whom the agency was 
                        providing special education and related 
                        services on December 1 of the fiscal year for 
                        which the funds were appropriated, equal to the 
                        per-child amount the agency received under that 
                        subpart for fiscal year 1994.
                  ``(B) The number of children counted under 
                subparagraph (A)(i)(I) shall not exceed the number of 
                children aged 3 through 21 for whom the agency received 
                fiscal year 1994 funds under subpart 2 of part D of 
                chapter 1 of title I of the Elementary and Secondary 
                Education Act of 1965.
          ``(4) Reallocation of funds.--If a State educational agency 
        determines that a local educational agency is adequately 
        providing a free appropriate public education to all children 
        with disabilities residing in the area served by that agency 
        with State and local funds, the State educational agency may 
        reallocate any portion of the funds under this part that are 
        not needed by that local agency to provide a free appropriate 
        public education to other local educational agencies in the 
        State that are not adequately providing special education and 
        related services to all children with disabilities residing in 
        the areas they serve.
  ``(h) Definitions.--For the purpose of this section--
          ``(1) the term `average per-pupil expenditure in public 
        elementary and secondary schools in the United States' means--
                  ``(A) without regard to the source of funds--
                          ``(i) the aggregate current expenditures, 
                        during the second fiscal year preceding the 
                        fiscal year for which the determination is made 
                        (or, if satisfactory data for that year are not 
                        available, during the most recent preceding 
                        fiscal year for which satisfactory data are 
                        available) of all local educational agencies in 
                        the 50 States and the District of Columbia); 
                        plus
                          ``(ii) any direct expenditures by the State 
                        for the operation of those agencies; divided by
                  ``(B) the aggregate number of children in average 
                daily attendance to whom those agencies provided free 
                public education during that preceding year; and
          ``(2) the term `State' means each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto Rico.
  ``(i) Use of Amounts by Secretary of the Interior.--
          ``(1) Provision of amounts for assistance.--
                  ``(A) In general.--The Secretary of Education shall 
                provide amounts to the Secretary of the Interior to 
                meet the need for assistance for the education of 
                children with disabilities on reservations aged 5 to 
                21, inclusive, enrolled in elementary and secondary 
                schools for Indian children operated or funded by the 
                Secretary of the Interior. The amount of such payment 
                for any fiscal year shall be equal to 80 percent of the 
                amount allotted under subsection (c) for that fiscal 
                year.
                  ``(B) Calculation of number of children.--In the case 
                of Indian students 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 through 5.--
                  ``(A) In general.--With funds appropriated under 
                subsection (j), the Secretary of Education shall make 
                payments to the Secretary of the Interior to be 
                distributed to tribes or tribal organizations (as 
                defined under section 4 of the Indian Self-
                Determination and Education Assistance Act) or 
                consortia of the above to provide for the coordination 
                of assistance for special education and related 
                services for children with disabilities aged 3 through 
                5 on reservations served by elementary and secondary 
                schools for Indian children operated or funded by the 
                Department of the Interior. The amount of such payments 
                under subparagraph (B) for any fiscal year shall be 
                equal to 20 percent of the amount allotted under 
                subsection (c).
                  ``(B) Distribution of funds.--The Secretary of the 
                Interior shall distribute the total amount of the 
                payment under subparagraph (A) by allocating to each 
                tribe or tribal organization an amount based on the 
                number of children with disabilities ages 3 through 5 
                residing on reservations as reported annually, divided 
                by the total of those children served by all tribes or 
                tribal organizations.
                  ``(C) Submission of information.--To receive a 
                payment under this paragraph, the tribe or tribal 
                organization shall submit such figures to the Secretary 
                of the Interior as required to determine the amounts to 
                be allocated under subparagraph (B). This information 
                shall be compiled and submitted to the Secretary of 
                Education.
                  ``(D) Use of funds.--The funds received by a tribe or 
                tribal organization shall be used to assist in child 
                find, screening, and other procedures for the early 
                identification of children aged 3 through 5, parent 
                training, and the provision of direct services. These 
                activities may be carried out directly or through 
                contracts or cooperative agreements with the BIA, local 
                educational agencies, and other public or private 
                nonprofit organizations. The tribe or tribal 
                organization is encouraged to involve Indian parents in 
                the development and implementation of these activities. 
                The above entities shall, as appropriate, make 
                referrals to local, State, or Federal entities for the 
                provision of services or further diagnosis.
                  ``(E) Biennial report.--To be eligible to receive a 
                grant pursuant to subparagraph (A), the tribe or tribal 
                organization shall provide to the Secretary of the 
                Interior a biennial report of activities undertaken 
                under this paragraph, including the number of contracts 
                and cooperative agreements entered into, the number of 
                children contacted and receiving services for each 
                year, and the estimated number of children needing 
                services during the 2 years following the one in which 
                the report is made. The Secretary of the Interior shall 
                include a summary of this information on a biennial 
                basis in the report to the Secretary of Education 
                required under this subsection. The Secretary of 
                Education may require any additional information from 
                the Secretary of the Interior.
                  ``(F) Prohibitions.--None of the funds allocated 
                under this paragraph may be used by the Secretary of 
                the Interior for administrative purposes, including 
                child count and the provision of technical assistance.
          ``(4) Plan for coordination of services.--The Secretary of 
        the Interior shall develop and implement a plan for the 
        coordination of services for all Indian children with 
        disabilities residing on reservations covered under this Act. 
        Such plan shall provide for the coordination of services 
        benefiting these children from whatever source, including 
        tribes, the Indian Health Service, other BIA divisions, and 
        other Federal agencies. In developing the plan, the Secretary 
        of the Interior shall consult with all interested and involved 
        parties. It shall be based on the needs of the children and the 
        system best suited for meeting those needs, and may involve the 
        establishment of cooperative agreements between the BIA, other 
        Federal agencies, and other entities. The plan shall also be 
        distributed upon request to States, State and local educational 
        agencies, and other agencies providing services to infants, 
        toddlers, and children with disabilities, to tribes, and to 
        other interested parties.
          ``(5) Establishment of advisory board.--To meet the 
        requirements of section 612(a)(21), the Secretary of the 
        Interior shall establish, not later than 6 months after the 
        date of the enactment of the Individuals with Disabilities 
        Education Act Amendments of 1997, under the BIA, an advisory 
        board composed of individuals involved in or concerned with the 
        education and provision of services to Indian infants, 
        toddlers, children, and youth with disabilities, including 
        Indians with disabilities, Indian parents or guardians of such 
        children, teachers, service providers, State and local 
        educational officials, representatives of tribes or tribal 
        organizations, representatives from State Interagency 
        Coordinating Councils under section 641 in States having 
        reservations, and other members representing the various 
        divisions and entities of the BIA. The chairperson shall be 
        selected by the Secretary of the Interior. The advisory board 
        shall--
                  ``(A) assist in the coordination of services within 
                the BIA and with other local, State, and Federal 
                agencies in the provision of education for infants, 
                toddlers, and children with disabilities;
                  ``(B) advise and assist the Secretary of the Interior 
                in the performance of the Secretary's responsibilities 
                described in this subsection;
                  ``(C) develop and recommend policies concerning 
                effective inter- and intra-agency collaboration, 
                including modifications to regulations, and the 
                elimination of barriers to inter- and intra-agency 
                programs and activities;
                  ``(D) provide assistance and disseminate information 
                on best practices, effective program coordination 
                strategies, and recommendations for improved 
                educational programming for Indian infants, toddlers, 
                and children with disabilities; and
                  ``(E) provide assistance in the preparation of 
                information required under paragraph (2)(D).
          ``(6) Annual reports.--
                  ``(A) In general.--The advisory board established 
                under paragraph (5) shall prepare and submit to the 
                Secretary of the Interior and to the Congress an annual 
                report containing a description of the activities of 
                the advisory board for the preceding year.
                  ``(B) Availability.--The Secretary of the Interior 
                shall make available to the Secretary of Education the 
                report described in subparagraph (A).
  ``(j) Authorization of Appropriations.--For the purpose of carrying 
out this part, other than section 619, there are authorized to be 
appropriated such sums as may be necessary.

``SEC. 612. STATE ELIGIBILITY.

  ``(a) In General.--A State is eligible for assistance under this part 
for a fiscal year if the State demonstrates to the satisfaction of the 
Secretary that the State has in effect policies and procedures to 
ensure that it meets each of the following conditions:
          ``(1) Free appropriate public education.--
                  ``(A) In general.--A free appropriate public 
                education is available to all children with 
                disabilities residing in the State between the ages of 
                3 and 21, inclusive, including children with 
                disabilities who have been suspended or expelled from 
                school.
                  ``(B) Limitation.--The obligation to make a free 
                appropriate public education available to all children 
                with disabilities does not apply with respect to 
                children:
                          ``(i) aged 3 through 5 and 18 through 21 in a 
                        State to the extent that its application to 
                        those children would be inconsistent with State 
                        law or practice, or the order of any court, 
                        respecting the provision of public education to 
                        children in those age ranges; and
                          ``(ii) aged 18 through 21 to the extent that 
                        State law does not require that special 
                        education and related services under this part 
                        be provided to children with disabilities who, 
                        in the educational placement prior to their 
                        incarceration in an adult correctional 
                        facility:
                                  ``(I) were not actually identified as 
                                being a child with a disability under 
                                section 602(3) of this Act; or
                                  ``(II) did not have an Individualized 
                                Education Program under this part.
          ``(2) Full educational opportunity goal.--The State has 
        established a goal of providing full educational opportunity to 
        all children with disabilities and a detailed timetable for 
        accomplishing that goal.
          ``(3) Child find.--
                  ``(A) In general.--All children with disabilities 
                residing in the State, including children with 
                disabilities attending private schools, regardless of 
                the severity of their disabilities, and who are in need 
                of special education and related services, are 
                identified, located, and evaluated and a practical 
                method is developed and implemented to determine which 
                children with disabilities are currently receiving 
                needed special education and related services.
                  ``(B) Construction.--Nothing in this Act requires 
                that children be classified by their disability so long 
                as each child who has a disability listed in section 
                602 and who, by reason of that disability, needs 
                special education and related services is regarded as a 
                child with a disability under this part.
          ``(4) Individualized education program.--An individualized 
        education program, or an individualized family service plan 
        that meets the requirements of section 636(d), is developed, 
        reviewed, and revised for each child with a disability in 
        accordance with section 614(d).
          ``(5) Least restrictive environment.--
                  ``(A) In general.--To the maximum extent appropriate, 
                children with disabilities, including children in 
                public or private institutions or other care 
                facilities, are educated with children who are not 
                disabled, and special classes, separate schooling, or 
                other removal of children with disabilities from the 
                regular educational environment occurs only when the 
                nature or severity of the disability of a child is such 
                that education in regular classes with the use of 
                supplementary aids and services cannot be achieved 
                satisfactorily.
                  ``(B) Additional requirement.--
                          ``(i) In general.--If the State uses a 
                        funding mechanism by which the State 
                        distributes State funds on the basis of the 
                        type of setting in which a child is served, the 
                        funding mechanism does not result in placements 
                        that violate the requirements of subparagraph 
                        (A).
                          ``(ii) Assurance.--If the State does not have 
                        policies and procedures to ensure compliance 
                        with clause (i), the State shall provide the 
                        Secretary an assurance that it will revise the 
                        funding mechanism as soon as feasible to ensure 
                        that such mechanism does not result in such 
                        placements.
          ``(6) Procedural safeguards.--
                  ``(A) In general.--Children with disabilities and 
                their parents are afforded the procedural safeguards 
                required by section 615.
                  ``(B) Additional procedural safeguards.--Procedures 
                to ensure that testing and evaluation materials and 
                procedures utilized for the purposes of evaluation and 
                placement of children with disabilities will be 
                selected and administered so as not to be racially or 
                culturally discriminatory. Such materials or procedures 
                shall be provided and administered in the child's 
                native language or mode of communication, unless it 
                clearly is not feasible to do so, and no single 
                procedure shall be the sole criterion for determining 
                an appropriate educational program for a child.
          ``(7) Evaluation.--Children with disabilities are evaluated 
        in accordance with subsections (a) through (c) of section 614.
          ``(8) Confidentiality.--Agencies in the State comply with 
        section 617(c) (relating to the confidentiality of records and 
        information).
          ``(9) Transition from part c to preschool programs.--Children 
        participating in early-intervention programs assisted under 
        part C, and who will participate in preschool programs assisted 
        under this part, experience a smooth and effective transition 
        to those preschool programs in a manner consistent with section 
        637(a)(8). By the third birthday of such a child, an 
        individualized education program or, if consistent with 
        sections 614(d)(2)(B) and 636(d), an individualized family 
        service plan, has been developed and is being implemented for 
        the child. The local educational agency will participate in 
        transition planning conferences arranged by the designated lead 
        agency under section 637(a)(8).
          ``(10) Children in private schools.--
                  ``(A) Children enrolled in private schools by their 
                parents.--
                          ``(i) In general.--To the extent consistent 
                        with the number and location of children with 
                        disabilities in the State who are enrolled by 
                        their parents in private elementary and 
                        secondary schools, provision is made for the 
                        participation of those children in the program 
                        assisted or carried out under this part by 
                        providing for such children special education 
                        and related services in accordance with the 
                        following requirements, unless the Secretary 
                        has arranged for services to those children 
                        under subsection (f):
                                  ``(I) Amounts expended for the 
                                provision of those services by a local 
                                educational agency shall be equal to a 
                                proportionate amount of Federal funds 
                                made available under this part.
                                  ``(II) Such services may be provided 
                                to children with disabilities on the 
                                premises of private, including 
                                parochial, schools, to the extent 
                                consistent with law.
                          ``(ii) Child-find requirement.--The 
                        requirements of paragraph (3) of this 
                        subsection (relating to child find) shall apply 
                        with respect to children with disabilities in 
                        the State who are enrolled in private, 
                        including parochial, elementary and secondary 
                        schools.
                  ``(B) Children placed in, or referred to, private 
                schools by public agencies.--
                          ``(i) In general.--Children with disabilities 
                        in private schools and facilities are provided 
                        special education and related services, in 
                        accordance with an individualized education 
                        program, at no cost to their parents, if such 
                        children are placed in, or referred to, such 
                        schools or facilities by the State or 
                        appropriate local educational agency as the 
                        means of carrying out the requirements of this 
                        part or any other applicable law requiring the 
                        provision of special education and related 
                        services to all children with disabilities 
                        within such State.
                          ``(ii) Standards.--In all cases described in 
                        clause (i), the State educational agency shall 
                        determine whether such schools and facilities 
                        meet standards that apply to State and local 
                        educational agencies and that children so 
                        served have all the rights they would have if 
                        served by such agencies.
                  ``(C) Payment for education of children enrolled in 
                private schools without consent of or referral by the 
                public agency.--
                          ``(i) In general.--Subject to subparagraph 
                        (A), this part does not require a local 
                        educational agency to pay for the cost of 
                        education, including special education and 
                        related services, of a child with a disability 
                        at a private school or facility if that agency 
                        made a free appropriate public education 
                        available to the child and the parents elected 
                        to place the child in such private school or 
                        facility.
                          ``(ii) Reimbursement for private school 
                        placement.--If the parents of a child with a 
                        disability, who previously received special 
                        education and related services under the 
                        authority of a public agency, enroll the child 
                        in a private elementary or secondary school 
                        without the consent of or referral by the 
                        public agency, a court or a hearing officer may 
                        require the agency to reimburse the parents for 
                        the cost of that enrollment if the court or 
                        hearing officer finds that the agency had not 
                        made a free appropriate public education 
                        available to the child in a timely manner prior 
                        to that enrollment.
                          ``(iii) Limitation on reimbursement.--The 
                        cost of reimbursement described in clause (ii) 
                        may be reduced or denied--
                                  ``(I) if--
                                          ``(aa) at the most recent IEP 
                                        meeting that the parents 
                                        attended prior to removal of 
                                        the child from the public 
                                        school, the parents did not 
                                        inform the IEP team that they 
                                        were rejecting the placement 
                                        proposed by the public agency 
                                        to provide a free appropriate 
                                        public education to their 
                                        child, including stating their 
                                        concerns and their intent to 
                                        enroll their child in a private 
                                        school at public expense; or
                                          ``(bb) 10 business days 
                                        (including any holidays that 
                                        occur on a business day) prior 
                                        to the removal of the child 
                                        from the public school, the 
                                        parents did not give written 
                                        notice to the public agency of 
                                        the information described in 
                                        division (aa);
                                  ``(II) if, prior to the parents' 
                                removal of the child from the public 
                                school, the public agency informed the 
                                parents, through the notice 
                                requirements described in section 
                                615(b)(7), of its intent to evaluate 
                                the child (including a statement of the 
                                purpose of the evaluation that was 
                                appropriate and reasonable), but the 
                                parents did not make the child 
                                available for such evaluation; or
                                  ``(III) upon a judicial finding of 
                                unreasonableness with respect to 
                                actions taken by the parents.
                          ``(iv) Exception.--Notwithstanding the notice 
                        requirement in clause (iii)(I), the cost of 
                        reimbursement may not be reduced or denied for 
                        failure to provide such notice if--
                                  ``(I) the parent is illiterate and 
                                cannot write in English;
                                  ``(II) compliance with clause 
                                (iii)(I) would likely result in 
                                physical or serious emotional harm to 
                                the child;
                                  ``(III) the school prevented the 
                                parent from providing such notice; or
                                  ``(IV) the parents had not received 
                                notice, pursuant to section 615, of the 
                                notice requirement in clause (iii)(I).
          ``(11) State educational agency responsible for general 
        supervision.--
                  ``(A) In general.--The State educational agency is 
                responsible for ensuring that--
                          ``(i) the requirements of this part are met; 
                        and
                          ``(ii) all educational programs for children 
                        with disabilities in the State, including all 
                        such programs administered by any other State 
                        or local agency--
                                  ``(I) are under the general 
                                supervision of individuals in the State 
                                who are responsible for educational 
                                programs for children with 
                                disabilities; and
                                  ``(II) meet the educational standards 
                                of the State educational agency.
                  ``(B) Limitation.--Subparagraph (A) shall not limit 
                the responsibility of agencies in the State other than 
                the State educational agency to provide, or pay for 
                some or all of the costs of, a free appropriate public 
                education for any child with a disability in the State.
                  ``(C) Exception.--Notwithstanding subparagraphs (A) 
                and (B), the Governor (or another individual pursuant 
                to State law), consistent with State law, may assign to 
                any public agency in the State the responsibility of 
                ensuring that the requirements of this part are met 
                with respect to children with disabilities who are 
                convicted as adults under State law and incarcerated in 
                adult prisons.
          ``(12) Obligations related to and methods of ensuring 
        services.--
                  ``(A) Establishing responsibility for services.--The 
                Chief Executive Officer or designee of the officer 
                shall ensure that an interagency agreement or other 
                mechanism for interagency coordination is in effect 
                between each public agency described in subparagraph 
                (B) and the State educational agency, in order to 
                ensure that all services described in subparagraph 
                (B)(i) that are needed to ensure a free appropriate 
                public education are provided, including the provision 
                of such services during the pendency of any dispute 
                under clause (iii). Such agreement or mechanism shall 
                include the following:
                          ``(i) Agency financial responsibility.--An 
                        identification of, or a method for defining, 
                        the financial responsibility of each agency for 
                        providing services described in subparagraph 
                        (B)(i) to ensure a free appropriate public 
                        education to children with disabilities, 
                        provided that the financial responsibility of 
                        each public agency described in subparagraph 
                        (B), including the State Medicaid agency and 
                        other public insurers of children with 
                        disabilities, shall precede the financial 
                        responsibility of the local educational agency 
                        (or the State agency responsible for developing 
                        the child's IEP).
                          ``(ii) Conditions and terms of 
                        reimbursement.--The conditions, terms, and 
                        procedures under which a local educational 
                        agency shall be reimbursed by other agencies.
                          ``(iii) Interagency disputes.--Procedures for 
                        resolving interagency disputes (including 
                        procedures under which local educational 
                        agencies may initiate proceedings) under the 
                        agreement or other mechanism to secure 
                        reimbursement from other agencies or otherwise 
                        implement the provisions of the agreement or 
                        mechanism.
                          ``(iv) Coordination of services procedures.--
                        Policies and procedures for agencies to 
                        determine and identify the interagency 
                        coordination responsibilities of each agency to 
                        promote the coordination and timely and 
                        appropriate delivery of services described in 
                        subparagraph (B)(i).
                  ``(B) Obligation of public agency.--
                          ``(i) In general.--If any public agency other 
                        than an educational agency is otherwise 
                        obligated under Federal or State law, or 
                        assigned responsibility under State policy or 
                        pursuant to subparagraph (A), to provide or pay 
                        for any services that are also considered 
                        special education or related services (such as, 
                        but not limited to, services described in 
                        sections 602(1) relating to assistive 
                        technology devices, 602(2) relating to 
                        assistive technology services, 602(22) relating 
                        to related services, 602(29) relating to 
                        supplementary aids and services, and 602(30) 
                        relating to transition services) that are 
                        necessary for ensuring a free appropriate 
                        public education to children with disabilities 
                        within the State, such public agency shall 
                        fulfill that obligation or responsibility, 
                        either directly or through contract or other 
                        arrangement.
                          ``(ii) Reimbursement for services by public 
                        agency.--If a public agency other than an 
                        educational agency fails to provide or pay for 
                        the special education and related services 
                        described in clause (i), the local educational 
                        agency (or State agency responsible for 
                        developing the child's IEP) shall provide or 
                        pay for such services to the child. Such local 
                        educational agency or State agency may then 
                        claim reimbursement for the services from the 
                        public agency that failed to provide or pay for 
                        such services and such public agency shall 
                        reimburse the local educational agency or State 
                        agency pursuant to the terms of the interagency 
                        agreement or other mechanism described in 
                        subparagraph (A)(i) according to the procedures 
                        established in such agreement pursuant to 
                        subparagraph (A)(ii).
                  ``(C) Special rule.--The requirements of subparagraph 
                (A) may be met through--
                          ``(i) State statute or regulation;
                          ``(ii) signed agreements between respective 
                        agency officials that clearly identify the 
                        responsibilities of each agency relating to the 
                        provision of services; or
                          ``(iii) other appropriate written methods as 
                        determined by the Chief Executive Officer of 
                        the State or designee of the officer.
          ``(13) Procedural requirements relating to local educational 
        agency eligibility.--The State educational agency will not make 
        a final determination that a local educational agency is not 
        eligible for assistance under this part without first affording 
        that agency reasonable notice and an opportunity for a hearing.
          ``(14) Comprehensive system of personnel development.--The 
        State has in effect, consistent with the purposes of this Act 
        and with section 635(a)(8), a comprehensive system of personnel 
        development that is designed to ensure an adequate supply of 
        qualified special education, regular education, and related 
        services personnel that meets the requirements for a State 
        improvement plan relating to personnel development in 
        subsections (b)(2)(B) and (c)(3)(D) of section 653.
          ``(15) Personnel standards.--
                  ``(A) In general.--The State educational agency has 
                established and maintains standards to ensure that 
                personnel necessary to carry out this part are 
                appropriately and adequately prepared and trained.
                  ``(B) Standards described.--Such standards shall--
                          ``(i) be consistent with any State-approved 
                        or State-recognized certification, licensing, 
                        registration, or other comparable requirements 
                        that apply to the professional discipline in 
                        which those personnel are providing special 
                        education or related services;
                          ``(ii) to the extent the standards described 
                        in subparagraph (A) are not based on the 
                        highest requirements in the State applicable to 
                        a specific profession or discipline, the State 
                        is taking steps to require retraining or hiring 
                        of personnel that meet appropriate professional 
                        requirements in the State; and
                          ``(iii) allow paraprofessionals and 
                        assistants who are appropriately trained and 
                        supervised, in accordance with State law, 
                        regulations, or written policy, in meeting the 
                        requirements of this part to be used to assist 
                        in the provision of special education and 
                        related services to children with disabilities 
                        under this part.
                  ``(C) Policy.--In implementing this paragraph, a 
                State may adopt a policy that includes a requirement 
                that local educational agencies in the State make an 
                ongoing good-faith effort to recruit and hire 
                appropriately and adequately trained personnel to 
                provide special education and related services to 
                children with disabilities, including, in a geographic 
                area of the State where there is a shortage of such 
                personnel, the most qualified individuals available who 
                are making satisfactory progress toward completing 
                applicable course work necessary to meet the standards 
                described in subparagraph (B)(i), consistent with State 
                law, and the steps described in subparagraph (B)(ii) 
                within three years.
          ``(16) Performance goals and indicators.--The State--
                  ``(A) has established goals for the performance of 
                children with disabilities in the State that--
                          ``(i) will promote the purposes of this Act, 
                        as stated in section 601(d); and
                          ``(ii) are consistent, to the maximum extent 
                        appropriate, with other goals and standards for 
                        children established by the State;
                  ``(B) has established performance indicators the 
                State will use to assess progress toward achieving 
                those goals that, at a minimum, address the performance 
                of children with disabilities on assessments, drop-out 
                rates, and graduation rates;
                  ``(C) will, every two years, report to the Secretary 
                and the public on the progress of the State, and of 
                children with disabilities in the State, toward meeting 
                the goals established under subparagraph (A); and
                  ``(D) based on its assessment of that progress, will 
                revise its State improvement plan under subpart 1 of 
                part D as may be needed to improve its performance, if 
                the State receives assistance under that subpart.
          ``(17) Participation in assessments.--
                  ``(A) In general.--Children with disabilities are 
                included in general State and district-wide assessment 
                programs, with appropriate accommodations, where 
                necessary. As appropriate, the State or local 
                educational agency--
                          ``(i) develops guidelines for the 
                        participation of children with disabilities in 
                        alternate assessments for those children who 
                        cannot participate in State and district-wide 
                        assessment programs; and
                          ``(ii) develops and, beginning not later than 
                        July 1, 2000, conducts those alternate 
                        assessments.
                  ``(B) Reports.--The State educational agency makes 
                available to the public, and reports to the public with 
                the same frequency and in the same detail as it reports 
                on the assessment of nondisabled children, the 
                following:
                          ``(i) The number of children with 
                        disabilities participating in regular 
                        assessments.
                          ``(ii) The number of those children 
                        participating in alternate assessments.
                          ``(iii)(I) The performance of those children 
                        on regular assessments (beginning not later 
                        than July 1, 1998) and on alternate assessments 
                        (not later than July 1, 2000), if doing so 
                        would be statistically sound and would not 
                        result in the disclosure of performance results 
                        identifiable to individual children.
                          ``(II) Data relating to the performance of 
                        children described under subclause (I) shall be 
                        disaggregated--
                                  ``(aa) for assessments conducted 
                                after July 1, 1998; and
                                  ``(bb) for assessments conducted 
                                before July 1, 1998, if the State is 
                                required to disaggregate such data 
                                prior to July 1, 1998.
          ``(18) Supplementation of state, local, and other Federal 
        funds.--
                  ``(A) Expenditures.--Funds paid to a State under this 
                part will be expended in accordance with all the 
                provisions of this part.
                  ``(B) Prohibition against commingling.--Funds paid to 
                a State under this part will not be commingled with 
                State funds.
                  ``(C) Prohibition against supplantation and 
                conditions for waiver by Secretary.--Except as provided 
                in section 613, funds paid to a State under this part 
                will be used to supplement the level of Federal, State, 
                and local funds (including funds that are not under the 
                direct control of State or local educational agencies) 
                expended for special education and related services 
                provided to children with disabilities under this part 
                and in no case to supplant such Federal, State, and 
                local funds, except that, where the State provides 
                clear and convincing evidence that all children with 
                disabilities have available to them a free appropriate 
                public education, the Secretary may waive, in whole or 
                in part, the requirements of this subparagraph if the 
                Secretary concurs with the evidence provided by the 
                State.
          ``(19) Maintenance of state financial support.--
                  ``(A) In general.--The State does not reduce the 
                amount of State financial support for special education 
                and related services for children with disabilities, or 
                otherwise made available because of the excess costs of 
                educating those children, below the amount of that 
                support for the preceding fiscal year.
                  ``(B) Reduction of funds for failure to maintain 
                support.--The Secretary shall reduce the allocation of 
                funds under section 611 for any fiscal year following 
                the fiscal year in which the State fails to comply with 
                the requirement of subparagraph (A) by the same amount 
                by which the State fails to meet the requirement.
                  ``(C) Waivers for exceptional or uncontrollable 
                circumstances.--The Secretary may waive the requirement 
                of subparagraph (A) for a State, for one fiscal year at 
                a time, if the Secretary determines that--
                          ``(i) granting a waiver would be equitable 
                        due to exceptional or uncontrollable 
                        circumstances such as a natural disaster or a 
                        precipitous and unforeseen decline in the 
                        financial resources of the State; or
                          ``(ii) the State meets the standard in 
                        paragraph (18)(C) of this section for a waiver 
                        of the requirement to supplement, and not to 
                        supplant, funds received under this part.
                  ``(D) Subsequent years.--If, for any year, a State 
                fails to meet the requirement of subparagraph (A), 
                including any year for which the State is granted a 
                waiver under subparagraph (C), the financial support 
                required of the State in future years under 
                subparagraph (A) shall be the amount that would have 
                been required in the absence of that failure and not 
                the reduced level of the State's support.
                  ``(E) Regulations.--
                          (i) The Secretary shall, by regulation, 
                        establish procedures (including objective 
                        criteria and consideration of the results of 
                        compliance reviews of the State conducted by 
                        the Secretary) for determining whether to grant 
                        a waiver under subparagraph (C)(ii).
                          ``(ii) The Secretary shall publish proposed 
                        regulations under clause (i) not later than 6 
                        months after the date of the enactment of the 
                        Individuals with Disabilities Education Act 
                        Amendments of 1997, and shall issue final 
                        regulations under clause (i) not later than 1 
                        year after such date of enactment.
          ``(20) Public participation.--Prior to the adoption of any 
        policies and procedures needed to comply with this section 
        (including any amendments to such policies and procedures), the 
        State ensures that there are public hearings, adequate notice 
        of the hearings, and an opportunity for comment available to 
        the general public, including individuals with disabilities and 
        parents of children with disabilities.
          ``(21) State advisory panel.--
                  ``(A) In general.--The State has established and 
                maintains an advisory panel for the purpose of 
                providing policy guidance with respect to special 
                education and related services for children with 
                disabilities in the State.
                  ``(B) Membership.--Such advisory panel shall consist 
                of members appointed by the Governor, or any other 
                official authorized under State law to make such 
                appointments, that is representative of the State 
                population and that is composed of individuals involved 
                in, or concerned with, the education of children with 
                disabilities, including--
                          ``(i) parents of children with disabilities;
                          ``(ii) individuals with disabilities;
                          ``(iii) teachers;
                          ``(iv) representatives of institutions of 
                        higher education that prepare special education 
                        and related services personnel;
                          ``(v) State and local education officials;
                          ``(vi) administrators of programs for 
                        children with disabilities;
                          ``(vii) representatives of other State 
                        agencies involved in the financing or delivery 
                        of related services to children with 
                        disabilities;
                          ``(viii) representatives of private schools 
                        and public charter schools;
                          ``(ix) at least one representative of a 
                        vocational, community, or business organization 
                        concerned with the provision of transition 
                        services to children with disabilities; and
                          ``(x) representatives from the State juvenile 
                        and adult corrections agencies.
                  ``(C) Special rule.--A majority of the members of the 
                panel shall be individuals with disabilities or parents 
                of children with disabilities.
                  ``(D) Duties.--The advisory panel shall--
                          ``(i) advise the State educational agency of 
                        unmet needs within the State in the education 
                        of children with disabilities;
                          ``(ii) comment publicly on any rules or 
                        regulations proposed by the State regarding the 
                        education of children with disabilities;
                          ``(iii) advise the State educational agency 
                        in developing evaluations and reporting on data 
                        to the Secretary under section 618;
                          ``(iv) advise the State educational agency in 
                        developing corrective action plans to address 
                        findings identified in Federal monitoring 
                        reports under this part; and
                          ``(v) advise the State educational agency in 
                        developing and implementing policies relating 
                        to the coordination of services for children 
                        with disabilities.
          ``(22) Suspension and expulsion rates.--
                  ``(A) In general.--The State educational agency 
                examines data to determine if significant discrepancies 
                are occurring in the rate of long-term suspensions and 
                expulsions of children with disabilities--
                          ``(i) among local educational agencies in the 
                        State; or
                          ``(ii) compared to such rates for nondisabled 
                        children within such agencies.
                  ``(B) Review and revision of policies.--If such 
                discrepancies are occurring, the State educational 
                agency reviews and, if appropriate, revises (or 
                requires the affected State or local educational agency 
                to revise) its policies, procedures, and practices 
                relating to the development and implementation of IEPs, 
                the use of behavioral interventions, and procedural 
                safeguards, to ensure that such policies, procedures, 
                and practices comply with this Act.
  ``(b) State Educational Agency as Provider of Free Appropriate Public 
Education or Direct Services.--If the State educational agency provides 
free appropriate public education to children with disabilities, or 
provides direct services to such children, such agency--
          ``(1) shall comply with any additional requirements of 
        section 613(a), as if such agency were a local educational 
        agency; and
          ``(2) may use amounts that are otherwise available to such 
        agency under this part to serve those children without regard 
        to section 613(a)(2)(A)(i) (relating to excess costs).
  ``(c) Exception for Prior State Plans.--
          ``(1) In general.--If a State has on file with the Secretary 
        policies and procedures that demonstrate that such State meets 
        any requirement of subsection (a), including any policies and 
        procedures filed under this part as in effect before the 
        effective date of the Individuals with Disabilities Education 
        Act Amendments of 1997, the Secretary shall consider such State 
        to have met such requirement for purposes of receiving a grant 
        under this part.
          ``(2) Modifications made by state.--Subject to paragraph (3), 
        an application submitted by a State in accordance with this 
        section shall remain in effect until the State submits to the 
        Secretary such modifications as the State deems necessary. This 
        section shall apply to a modification to an application to the 
        same extent and in the same manner as this section applies to 
        the original plan.
          ``(3) Modifications required by the secretary.--If, after the 
        effective date of the Individuals with Disabilities Education 
        Act Amendments of 1997, the provisions of this Act are amended 
        (or the regulations developed to carry out this Act are 
        amended), or there is a new interpretation of this Act by a 
        Federal or State Supreme court, or there is an official finding 
        of noncompliance with Federal law or regulations, the Secretary 
        may require a State to modify its application only to the 
        extent necessary to ensure the State's compliance with this 
        part.
  ``(d) Approval by the Secretary.--
          ``(1) In general.--If the Secretary determines that a State 
        is eligible to receive a grant under this part, the Secretary 
        shall notify the State of that determination.
          ``(2) Notice and hearing.--The Secretary shall not make a 
        final determination that a State is not eligible to receive a 
        grant under this part until after providing the State--
                  ``(A) with reasonable notice; and
                  ``(B) with an opportunity for a hearing.
  ``(e) Assistance Under Other Federal Programs.--Nothing in this title 
permits a State to reduce medical and other assistance available, or to 
alter eligibility, under titles V and XIX of the Social Security Act 
with respect to the provision of a free appropriate public education 
for children with disabilities in the State.
  ``(f) By-Pass for Children in Private Schools.--
          ``(1) In general.--If, on the date of enactment of the 
        Education of the Handicapped Act Amendments of 1983, a State 
        educational agency is prohibited by law from providing for the 
        participation in special programs of children with disabilities 
        enrolled in private elementary and secondary schools as 
        required by subsection (a)(10)(A), the Secretary shall, 
        notwithstanding such provision of law, arrange for the 
        provision of services to such children through arrangements 
        which shall be subject to the requirements of such subsection.
          ``(2) Payments.--
                  ``(A) Determination of amounts.--If the Secretary 
                arranges for services pursuant to this subsection, the 
                Secretary, after consultation with the appropriate 
                public and private school officials, shall pay to the 
                provider of such services for a fiscal year an amount 
                per child that does not exceed the amount determined by 
                dividing--
                          ``(i) the total amount received by the State 
                        under this part for such fiscal year; by
                          ``(ii) the number of children with 
                        disabilities served in the prior year, as 
                        reported to the Secretary by the State under 
                        section 618.
                  ``(B) Withholding of certain amounts.--Pending final 
                resolution of any investigation or complaint that could 
                result in a determination under this subsection, the 
                Secretary may withhold from the allocation of the 
                affected State educational agency the amount the 
                Secretary estimates would be necessary to pay the cost 
                of services described in subparagraph (A).
                  ``(C) Period of payments.--The period under which 
                payments are made under subparagraph (A) shall continue 
                until the Secretary determines that there will no 
                longer be any failure or inability on the part of the 
                State educational agency to meet the requirements of 
                subsection (a)(10)(A).
          ``(3) Notice and hearing.--
                  ``(A) In general.--The Secretary shall not take any 
                final action under this subsection until the State 
                educational agency affected by such action has had an 
                opportunity, for at least 45 days after receiving 
                written notice thereof, to submit written objections 
                and to appear before the Secretary or the Secretary's 
                designee to show cause why such action should not be 
                taken.
                  ``(B) Review of action.--If a State educational 
                agency is dissatisfied with the Secretary's final 
                action after a proceeding under subparagraph (A), such 
                agency may, not later than 60 days after notice of such 
                action, file with the United States court of appeals 
                for the circuit in which such State is located a 
                petition for review of that action. A copy of the 
                petition shall be forthwith transmitted by the clerk of 
                the court to the Secretary. The Secretary thereupon 
                shall file in the court the record of the proceedings 
                on which the Secretary based the Secretary's action, as 
                provided in section 2112 of title 28, United States 
                Code.
                  ``(C) Review of findings of fact.--The findings of 
                fact by the Secretary, if supported by substantial 
                evidence, shall be conclusive, but the court, for good 
                cause shown, may remand the case to the Secretary to 
                take further evidence, and the Secretary may thereupon 
                make new or modified findings of fact and may modify 
                the Secretary's previous action, and shall file in the 
                court the record of the further proceedings. Such new 
                or modified findings of fact shall likewise be 
                conclusive if supported by substantial evidence.
                  ``(D) Jurisdiction of court of appeals; review by 
                united states supreme court.--Upon the filing of a 
                petition under subparagraph (B), the United States 
                court of appeals shall have jurisdiction to affirm the 
                action of the Secretary or to set it aside, in whole or 
                in part. The judgment of the court shall be subject to 
                review by the Supreme Court of the United States upon 
                certiorari or certification as provided in section 1254 
                of title 28, United States Code.

``SEC. 613. LOCAL EDUCATIONAL AGENCY ELIGIBILITY.

  ``(a) In General.--A local educational agency is eligible for 
assistance under this part for a fiscal year if such agency 
demonstrates to the satisfaction of the State educational agency that 
it meets each of the following conditions:
          ``(1) Consistency with state policies.--The local educational 
        agency, in providing for the education of children with 
        disabilities within its jurisdiction, has in effect policies, 
        procedures, and programs that are consistent with the State 
        policies and procedures established under section 612.
          ``(2) Use of amounts.--
                  ``(A) In general.--Amounts provided to the local 
                educational agency under this part shall be expended in 
                accordance with the applicable provisions of this part 
                and--
                          ``(i) shall be used only to pay the excess 
                        costs of providing special education and 
                        related services to children with disabilities;
                          ``(ii) shall be used to supplement State, 
                        local, and other Federal funds and not to 
                        supplant such funds; and
                          ``(iii) shall not be used, except as provided 
                        in subparagraphs (B) and (C), to reduce the 
                        level of expenditures for the education of 
                        children with disabilities made by the local 
                        educational agency from local funds below the 
                        level of those expenditures for the preceding 
                        fiscal year.
                  ``(B) Exception.--Notwithstanding the restriction in 
                subparagraph (A)(iii), a local educational agency may 
                reduce the level of expenditures where such reduction 
                is attributable to--
                          ``(i) the voluntary departure, by retirement 
                        or otherwise, or departure for just cause, of 
                        special education personnel;
                          ``(ii) a decrease in the enrollment of 
                        children with disabilities;
                          ``(iii) the termination of the obligation of 
                        the agency, consistent with this part, to 
                        provide a program of special education to a 
                        particular child with a disability that is an 
                        exceptionally costly program, as determined by 
                        the State educational agency, because the 
                        child--
                                  ``(I) has left the jurisdiction of 
                                the agency;
                                  ``(II) has reached the age at which 
                                the obligation of the agency to provide 
                                a free appropriate public education to 
                                the child has terminated; or
                                  ``(III) no longer needs such program 
                                of special education; or
                          ``(iv) the termination of costly expenditures 
                        for long-term purchases, such as the 
                        acquisition of equipment or the construction of 
                        school facilities.
                  ``(C) Treatment of Federal funds in certain fiscal 
                years.--
                          (i) Notwithstanding clauses (ii) and (iii) of 
                        subparagraph (A), for any fiscal year for which 
                        amounts appropriated to carry out section 611 
                        exceeds $4,100,000,000, a local educational 
                        agency may treat as local funds, for the 
                        purpose of such clauses, up to 20 percent of 
                        the amount of funds it receives under this part 
                        that exceeds the amount it received under this 
                        part for the previous fiscal year.
                          ``(ii) Notwithstanding clause (i), if a State 
                        educational agency determines that a local 
                        educational agency is not meeting the 
                        requirements of this part, the State 
                        educational agency may prohibit the local 
                        educational agency from treating funds received 
                        under this part as local funds under clause (i) 
                        for any fiscal year, only if it is authorized 
                        to so by the State constitution or a State 
                        statute.
                  ``(D) Schoolwide programs under title i of the 
                esea.--Notwithstanding subparagraph (A) or any other 
                provision of this part, a local educational agency may 
                use funds received under this part for any fiscal year 
                to carry out a schoolwide program under section 1114 of 
                the Elementary and Secondary Education Act of 1965, 
                except that the amount so used in any such program 
                shall not exceed--
                          ``(i) the number of children with 
                        disabilities participating in the schoolwide 
                        program; multiplied by
                          ``(ii)(I) the amount received by the local 
                        educational agency under this part for that 
                        fiscal year; divided by
                          ``(II) the number of children with 
                        disabilities in the jurisdiction of that 
                        agency.
          ``(3) Personnel development.--The local educational agency--
                  ``(A) shall ensure that all personnel necessary to 
                carry out this part are appropriately and adequately 
                prepared, consistent with the requirements of section 
                653(c)(3)(D); and
                  ``(B) to the extent such agency determines 
                appropriate, shall contribute to and use the 
                comprehensive system of personnel development of the 
                State established under section 612(a)(14).
          ``(4) Permissive use of funds.--Notwithstanding paragraph 
        (2)(A) or section 612(a)(18)(B) (relating to commingled funds), 
        funds provided to the local educational agency under this part 
        may be used for the following activities:
                  ``(A) Services and aids that also benefit nondisabled 
                children.--For the costs of special education and 
                related services and supplementary aids and services 
                provided in a regular class or other education-related 
                setting to a child with a disability in accordance with 
                the individualized education program of the child, even 
                if one or more nondisabled children benefit from such 
                services.
                  ``(B) Integrated and coordinated services system.--To 
                develop and implement a fully integrated and 
                coordinated services system in accordance with 
                subsection (f).
          ``(5) Treatment of charter schools and their students.--In 
        carrying out this part with respect to charter schools that are 
        public schools of the local educational agency, the local 
        educational agency--
                  ``(A) serves children with disabilities attending 
                those schools in the same manner as it serves children 
                with disabilities in its other schools; and
                  ``(B) provides funds under this part to those schools 
                in the same manner as it provides those funds to its 
                other schools.
          ``(6) Information for state educational agency.--The local 
        educational agency shall provide the State educational agency 
        with information necessary to enable the State educational 
        agency to carry out its duties under this part, including, with 
        respect to paragraphs (16) and (17) of section 612(a), 
        information relating to the performance of children with 
        disabilities participating in programs carried out under this 
        part.
          ``(7) Public information.--The local educational agency shall 
        make available to parents of children with disabilities and to 
        the general public all documents relating to the eligibility of 
        such agency under this part.
  ``(b) Exception for Prior Local Plans.--
          ``(1) In general.--If a local educational agency or State 
        agency has on file with the State educational agency policies 
        and procedures that demonstrate that such local educational 
        agency, or such State agency, as the case may be, meets any 
        requirement of subsection (a), including any policies and 
        procedures filed under this part as in effect before the 
        effective date of the Individuals with Disabilities Education 
        Act Amendments of 1997, the State educational agency shall 
        consider such local educational agency or State agency, as the 
        case may be, to have met such requirement for purposes of 
        receiving assistance under this part.
          ``(2) Modification made by local educational agency.--Subject 
        to paragraph (3), an application submitted by a local 
        educational agency in accordance with this section shall remain 
        in effect until it submits to the State educational agency such 
        modifications as the local educational agency deems necessary.
          ``(3) Modifications required by state educational agency.--
        If, after the effective date of the Individuals with 
        Disabilities Education Act Amendments of 1997, the provisions 
        of this Act are amended (or the regulations developed to carry 
        out this Act are amended), or there is a new interpretation of 
        this Act by Federal or State courts, or there is an official 
        finding of noncompliance with Federal or State law or 
        regulations, the State educational agency may require a local 
        educational agency to modify its application only to the extent 
        necessary to ensure the local educational agency's compliance 
        with this part or State law.
  ``(c) Notification of Local Educational Agency or State Agency in 
Case of Ineligibility.--If the State educational agency determines that 
a local educational agency or State agency is not eligible under this 
section, the State educational agency shall notify the local 
educational agency or State agency, as the case may be, of that 
determination and shall provide such local educational agency or State 
agency with reasonable notice and an opportunity for a hearing.
  ``(d) Local Educational Agency Compliance.--
          ``(1) In general.--If the State educational agency, after 
        reasonable notice and an opportunity for a hearing, finds that 
        a local educational agency or State agency that has been 
        determined to be eligible under this section is failing to 
        comply with any requirement described in subsection (a), the 
        State educational agency shall reduce or shall not provide any 
        further payments to the local educational agency or State 
        agency until the State educational agency is satisfied that the 
        local educational agency or State agency, as the case may be, 
        is complying with that requirement.
          ``(2) Additional requirement.--Any State agency or local 
        educational agency in receipt of a notice described in 
        paragraph (1) shall, by means of public notice, take such 
        measures as may be necessary to bring the pendency of an action 
        pursuant to this subsection to the attention of the public 
        within the jurisdiction of such agency.
          ``(3) Consideration.--In carrying out its responsibilities 
        under paragraph (1), the State educational agency shall 
        consider any decision made in a hearing held under section 615 
        that is adverse to the local educational agency or State agency 
        involved in that decision.
  ``(e) Joint Establishment of Eligibility.--
          ``(1) Joint establishment.--
                  ``(A) In general.--A State educational agency may 
                require a local educational agency to establish its 
                eligibility jointly with another local educational 
                agency if the State educational agency determines that 
                the local educational agency would be ineligible under 
                this section because the local educational agency would 
                not be able to establish and maintain programs of 
                sufficient size and scope to effectively meet the needs 
                of children with disabilities.
                  ``(B) Charter school exception.--A State educational 
                agency may not require a charter school that is a local 
                educational agency to jointly establish its eligibility 
                under subparagraph (A) unless it is explicitly 
                permitted to do so under the State's charter school 
                statute.
          ``(2) Amount of payments.--If a State educational agency 
        requires the joint establishment of eligibility under paragraph 
        (1), the total amount of funds made available to the affected 
        local educational agencies shall be equal to the sum of the 
        payments that each such local educational agency would have 
        received under section 611(g) if such agencies were eligible 
        for such payments.
          ``(3) Requirements.--Local educational agencies that 
        establish joint eligibility under this subsection shall--
                  ``(A) adopt policies and procedures that are 
                consistent with the State's policies and procedures 
                under section 612(a); and
                  ``(B) be jointly responsible for implementing 
                programs that receive assistance under this part.
          ``(4) Requirements for educational service agencies.--
                  ``(A) In general.--If an educational service agency 
                is required by State law to carry out programs under 
                this part, the joint responsibilities given to local 
                educational agencies under this subsection shall--
                          ``(i) not apply to the administration and 
                        disbursement of any payments received by that 
                        educational service agency; and
                          ``(ii) be carried out only by that 
                        educational service agency.
                  ``(B) Additional requirement.--Notwithstanding any 
                other provision of this subsection, an educational 
                service agency shall provide for the education of 
                children with disabilities in the least restrictive 
                environment, as required by section 612(a)(5).
  ``(f) Coordinated Services System.--
          ``(1) In general.--A local educational agency may not use 
        more than 5 percent of the amount such agency receives under 
        this part for any fiscal year, in combination with other 
        amounts (which shall include amounts other than education 
        funds), to develop and implement a coordinated services system 
        designed to improve results for children and families, 
        including children with disabilities and their families.
          ``(2) Activities.--In implementing a coordinated services 
        system under this subsection, a local educational agency may 
        carry out activities that include--
                  ``(A) improving the effectiveness and efficiency of 
                service delivery, including developing strategies that 
                promote accountability for results;
                  ``(B) service coordination and case management that 
                facilitates the linkage of individualized education 
                programs under this part and individualized family 
                service plans under part C with individualized service 
                plans under multiple Federal and State programs, such 
                as title I of the Rehabilitation Act of 1973 
                (vocational rehabilitation), title XIX of the Social 
                Security Act (Medicaid), and title XVI of the Social 
                Security Act (supplemental security income);
                  ``(C) developing and implementing interagency 
                financing strategies for the provision of education, 
                health, mental health, and social services, including 
                transition services and related services under this 
                Act; and
                  ``(D) interagency personnel development for 
                individuals working on coordinated services.
          ``(3) Coordination with certain projects under elementary and 
        secondary education act of 1965.--If a local educational agency 
        is carrying out a coordinated services project under title XI 
        of the Elementary and Secondary Education Act of 1965 and a 
        coordinated services project under this part in the same 
        schools, such agency shall use amounts under this subsection in 
        accordance with the requirements of that title.
  ``(g) School-Based Improvement Plan.--
          ``(1) In general.--Each local educational agency may, in 
        accordance with paragraph (2), use funds made available under 
        this part to permit a public school within the jurisdiction of 
        the local educational agency to design, implement, and evaluate 
        a school-based improvement plan that is consistent with the 
        purposes described in section 651(b) and that is designed to 
        improve educational and transitional results for all children 
        with disabilities and, as appropriate, for other children 
        consistent with subparagraphs (A) and (B) of subsection (a)(4) 
        in that public school.
          ``(2) Authority.--
                  ``(A) In general.--A State educational agency may 
                grant authority to a local educational agency to permit 
                a public school described in paragraph (1) (through a 
                school-based standing panel established under paragraph 
                (4)(B)) to design, implement, and evaluate a school-
                based improvement plan described in paragraph (1) for a 
                period not to exceed 3 years.
                  ``(B) Responsibility of local educational agency.--If 
                a State educational agency grants the authority 
                described in subparagraph (A), a local educational 
                agency that is granted such authority shall have the 
                sole responsibility of oversight of all activities 
                relating to the design, implementation, and evaluation 
                of any school-based improvement plan that a public 
                school is permitted to design under this subsection.
          ``(3) Plan requirements.--A school-based improvement plan 
        described in paragraph (1) shall--
                  ``(A) be designed to be consistent with the purposes 
                described in section 651(b) and to improve educational 
                and transitional results for all children with 
                disabilities and, as appropriate, for other children 
                consistent with subparagraphs (A) and (B) of subsection 
                (a)(4), who attend the school for which the plan is 
                designed and implemented;
                  ``(B) be designed, evaluated, and, as appropriate, 
                implemented by a school-based standing panel 
                established in accordance with paragraph (4)(B);
                  ``(C) include goals and measurable indicators to 
                assess the progress of the public school in meeting 
                such goals; and
                  ``(D) ensure that all children with disabilities 
                receive the services described in the individualized 
                education programs of such children.
          ``(4) Responsibilities of the local educational agency.--A 
        local educational agency that is granted authority under 
        paragraph (2) to permit a public school to design, implement, 
        and evaluate a school-based improvement plan shall--
                  ``(A) select each school under the jurisdiction of 
                such agency that is eligible to design, implement, and 
                evaluate such a plan;
                  ``(B) require each school selected under subparagraph 
                (A), in accordance with criteria established by such 
                local educational agency under subparagraph (C), to 
                establish a school-based standing panel to carry out 
                the duties described in paragraph (3)(B);
                  ``(C) establish--
                          ``(i) criteria that shall be used by such 
                        local educational agency in the selection of an 
                        eligible school under subparagraph (A);
                          ``(ii) criteria that shall be used by a 
                        public school selected under subparagraph (A) 
                        in the establishment of a school-based standing 
                        panel to carry out the duties described in 
                        paragraph (3)(B) and that shall ensure that the 
                        membership of such panel reflects the diversity 
                        of the community in which the public school is 
                        located and includes, at a minimum--
                                  ``(I) parents of children with 
                                disabilities who attend such public 
                                school, including parents of children 
                                with disabilities from unserved and 
                                underserved populations, as 
                                appropriate;
                                  ``(II) special education and general 
                                education teachers of such public 
                                school;
                                  ``(III) special education and general 
                                education administrators, or the 
                                designee of such administrators, of 
                                such public school; and
                                  ``(IV) related services providers who 
                                are responsible for providing services 
                                to the children with disabilities who 
                                attend such public school; and
                          ``(iii) criteria that shall be used by such 
                        local educational agency with respect to the 
                        distribution of funds under this part to carry 
                        out this subsection;
                  ``(D) disseminate the criteria established under 
                subparagraph (C) to local school district personnel and 
                local parent organizations within the jurisdiction of 
                such local educational agency;
                  ``(E) require a public school that desires to design, 
                implement, and evaluate a school-based improvement plan 
                to submit an application at such time, in such manner, 
                and accompanied by such information as such local 
                educational agency shall reasonably require; and
                  ``(F) establish procedures for approval by such local 
                educational agency of a school-based improvement plan 
                designed under this subsection.
          ``(5) Limitation.--A school-based improvement plan described 
        in paragraph (1) may be submitted to a local educational agency 
        for approval only if a consensus with respect to any matter 
        relating to the design, implementation, or evaluation of the 
        goals of such plan is reached by the school-based standing 
        panel that designed such plan.
          ``(6) Additional requirements.--
                  ``(A) Parental involvement.--In carrying out the 
                requirements of this subsection, a local educational 
                agency shall ensure that the parents of children with 
                disabilities are involved in the design, evaluation, 
                and, where appropriate, implementation of school-based 
                improvement plans in accordance with this subsection.
                  ``(B) Plan approval.--A local educational agency may 
                approve a school-based improvement plan of a public 
                school within the jurisdiction of such agency for a 
                period of 3 years, if--
                          ``(i) the approval is consistent with the 
                        policies, procedures, and practices established 
                        by such local educational agency and in 
                        accordance with this subsection; and
                          ``(ii) a majority of parents of children who 
                        are members of the school-based standing panel, 
                        and a majority of other members of the school-
                        based standing panel, that designed such plan 
                        agree in writing to such plan.
          ``(7) Extension of plan.--If a public school within the 
        jurisdiction of a local educational agency meets the applicable 
        requirements and criteria described in paragraphs (3) and (4) 
        at the expiration of the 3-year approval period described in 
        paragraph (6)(B), such agency may approve a school-based 
        improvement plan of such school for an additional 3-year 
        period.
  ``(h) Direct Services by the State Educational Agency.--
          ``(1) In general.--A State educational agency shall use the 
        payments that would otherwise have been available to a local 
        educational agency or to a State agency to provide special 
        education and related services directly to children with 
        disabilities residing in the area served by that local agency, 
        or for whom that State agency is responsible, if the State 
        educational agency determines that the local education agency 
        or State agency, as the case may be--
                  ``(A) has not provided the information needed to 
                establish the eligibility of such agency under this 
                section;
                  ``(B) is unable to establish and maintain programs of 
                free appropriate public education that meet the 
                requirements of subsection (a);
                  ``(C) is unable or unwilling to be consolidated with 
                one or more local educational agencies in order to 
                establish and maintain such programs; or
                  ``(D) has one or more children with disabilities who 
                can best be served by a regional or State program or 
                service-delivery system designed to meet the needs of 
                such children.
          ``(2) Manner and location of education and services.--The 
        State educational agency may provide special education and 
        related services under paragraph (1) in such manner and at such 
        locations (including regional or State centers) as the State 
        agency considers appropriate. Such education and services shall 
        be provided in accordance with this part.
  ``(i) State Agency Eligibility.--Any State agency that desires to 
receive a subgrant for any fiscal year under section 611(g) shall 
demonstrate to the satisfaction of the State educational agency that--
          ``(1) all children with disabilities who are participating in 
        programs and projects funded under this part receive a free 
        appropriate public education, and that those children and their 
        parents are provided all the rights and procedural safeguards 
        described in this part; and
          ``(2) the agency meets such other conditions of this section 
        as the Secretary determines to be appropriate.
  ``(j) Disciplinary Information.--The State may require that a local 
educational agency include in the records of a child with a disability 
a statement of any current or previous disciplinary action that has 
been taken against the child and transmit such statement to the same 
extent that such disciplinary information is included in, and 
transmitted with, the student records of nondisabled children. The 
statement may include a description of any behavior engaged in by the 
child that required disciplinary action, a description of the 
disciplinary action taken, and any other information that is relevant 
to the safety of the child and other individuals involved with the 
child. If the State adopts such a policy, and the child transfers from 
one school to another, the transmission of any of the child's records 
must include both the child's current individualized education program 
and any such statement of current or previous disciplinary action that 
has been taken against the child.

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

  ``(a) Evaluations and Reevaluations.--
          ``(1) Initial evaluations.--
                  ``(A) In general.--A State educational agency, other 
                State agency, or local educational agency shall conduct 
                a full and individual initial evaluation, in accordance 
                with this paragraph and subsection (b), before the 
                initial provision of special education and related 
                services to a child with a disability under this part.
                  ``(B) Procedures.--Such initial evaluation shall 
                consist of procedures--
                          ``(i) to determine whether a child is a child 
                        with a disability (as defined in section 
                        602(3)); and
                          ``(ii) to determine the educational needs of 
                        such child.
                  ``(C) Parental consent.--
                          ``(i) In general.--The agency proposing to 
                        conduct an initial evaluation to determine if 
                        the child qualifies as a child with a 
                        disability as defined in section 602(3)(A) or 
                        602(3)(B) shall obtain an informed consent from 
                        the parent of such child before the evaluation 
                        is conducted. Parental consent for evaluation 
                        shall not be construed as consent for placement 
                        for receipt of special education and related 
                        services.
                          ``(ii) Refusal.--If the parents of such child 
                        refuse consent for the evaluation, the agency 
                        may continue to pursue an evaluation by 
                        utilizing the mediation and due process 
                        procedures under section 615, except to the 
                        extent inconsistent with State law relating to 
                        parental consent.
          ``(2) Reevaluations.--A local educational agency shall ensure 
        that a reevaluation of each child with a disability is 
        conducted--
                  ``(A) if conditions warrant a reevaluation or if the 
                child's parent or teacher requests a reevaluation, but 
                at least once every 3 years; and
                  ``(B) in accordance with subsections (b) and (c).
  ``(b) Evaluation Procedures.--
          ``(1) Notice.--The local educational agency shall provide 
        notice to the parents of a child with a disability, in 
        accordance with subsections (b)(3), (b)(4), and (c) of section 
        615, that describes any evaluation procedures such agency 
        proposes to conduct.
          ``(2) Conduct of evaluation.--In conducting the evaluation, 
        the local educational agency shall--
                  ``(A) use a variety of assessment tools and 
                strategies to gather relevant functional and 
                developmental information, including information 
                provided by the parent, that may assist in determining 
                whether the child is a child with a disability and the 
                content of the child's individualized education 
                program, including information related to enabling the 
                child to be involved in and progress in the general 
                curriculum or, for preschool children, to participate 
                in appropriate activities;
                  ``(B) not use any single procedure as the sole 
                criterion for determining whether a child is a child 
                with a disability or determining an appropriate 
                educational program for the child; and
                  ``(C) use technically sound instruments that may 
                assess the relative contribution of cognitive and 
                behavioral factors, in addition to physical or 
                developmental factors.
          ``(3) Additional requirements.--Each local educational agency 
        shall ensure that--
                  ``(A) tests and other evaluation materials used to 
                assess a child under this section--
                          ``(i) are selected and administered so as not 
                        to be discriminatory on a racial or cultural 
                        basis; and
                          ``(ii) are provided and administered in the 
                        child's native language or other mode of 
                        communication, unless it is clearly not 
                        feasible to do so; and
                  ``(B) any standardized tests that are given to the 
                child--
                          ``(i) have been validated for the specific 
                        purpose for which they are used;
                          ``(ii) are administered by trained and 
                        knowledgeable personnel; and
                          ``(iii) are administered in accordance with 
                        any instructions provided by the producer of 
                        such tests;
                  ``(C) the child is assessed in all areas of suspected 
                disability; and
                  ``(D) assessment tools and strategies that provide 
                relevant information that directly assists persons in 
                determining the educational needs of the child are 
                provided.
          ``(4) Determination of eligibility.--Upon completion of 
        administration of tests and other evaluation materials--
                  ``(A) the determination of whether the child is a 
                child with a disability as defined in section 602(3) 
                shall be made by a team of qualified professionals and 
                the parent of the child in accordance with paragraph 
                (5); and
                  ``(B) a copy of the evaluation report and the 
                documentation of determination of eligibility will be 
                given to the parent.
          ``(5) Special rule for eligibility determination.--In making 
        a determination of eligibility under paragraph (4)(A), a child 
        shall not be determined to be a child with a disability if the 
        determinant factor for such determination is lack of 
        instruction in reading or math or limited English proficiency.
  ``(c) Additional Requirements For Evaluation and Reevaluations.--
          ``(1) Review of existing evaluation data.--As part of an 
        initial evaluation (if appropriate) and as part of any 
        reevaluation under this section, the IEP Team described in 
        subsection (d)(1)(B) and other qualified professionals, as 
        appropriate, shall--
                  ``(A) review existing evaluation data on the child, 
                including evaluations and information provided by the 
                parents of the child, current classroom-based 
                assessments and observations, and teacher and related 
                services providers observation; and
                  ``(B) on the basis of that review, and input from the 
                child's parents, identify what additional data, if any, 
                are needed to determine--
                          ``(i) whether the child has a particular 
                        category of disability, as described in section 
                        602(3), or, in case of a reevaluation of a 
                        child, whether the child continues to have such 
                        a disability;
                          ``(ii) the present levels of performance and 
                        educational needs of the child;
                          ``(iii) whether the child needs special 
                        education and related services, or in the case 
                        of a reevaluation of a child, whether the child 
                        continues to need special education and related 
                        services; and
                          ``(iv) whether any additions or modifications 
                        to the special education and related services 
                        are needed to enable the child to meet the 
                        measurable annual goals set out in the 
                        individualized education program of the child 
                        and to participate, as appropriate, in the 
                        general curriculum.
          ``(2) Source of data.--The local educational agency shall 
        administer such tests and other evaluation materials as may be 
        needed to produce the data identified by the IEP Team under 
        paragraph (1)(B).
          ``(3) Parental consent.--Each local educational agency shall 
        obtain informed parental consent, in accordance with subsection 
        (a)(1)(C), prior to conducting any reevaluation of a child with 
        a disability, except that such informed parent consent need not 
        be obtained if the local educational agency can demonstrate 
        that it had taken reasonable measures to obtain such consent 
        and the child's parent has failed to respond.
          ``(4) Requirements if additional data are not needed.--If the 
        IEP Team and other qualified professionals, as appropriate, 
        determine that no additional data are needed to determine 
        whether the child continues to be a child with a disability, 
        the local educational agency--
                  ``(A) shall notify the child's parents of--
                          ``(i) that determination and the reasons for 
                        it; and
                          ``(ii) the right of such parents to request 
                        an assessment to determine whether the child 
                        continues to be a child with a disability; and
                  ``(B) shall not be required to conduct such an 
                assessment unless requested to by the child's parents.
          ``(5) Evaluations before change in eligibility.--A local 
        educational agency shall evaluate a child with a disability in 
        accordance with this section before determining that the child 
        is no longer a child with a disability.
  ``(d) Individualized Education Programs.--
          ``(1) Definitions.--As used in this title:
                  ``(A) Individualized education program.--The term 
                `individualized education program' or `IEP' means a 
                written statement for each child with a disability that 
                is developed, reviewed, and revised in accordance with 
                this section and that includes--
                          ``(i) a statement of the child's present 
                        levels of educational performance, including--
                                  ``(I) how the child's disability 
                                affects the child's involvement and 
                                progress in the general curriculum; or
                                  ``(II) for preschool children, as 
                                appropriate, how the disability affects 
                                the child's participation in 
                                appropriate activities;
                          ``(ii) a statement of measurable annual 
                        goals, including benchmarks or short-term 
                        objectives, related to--
                                  ``(I) meeting the child's needs that 
                                result from the child's disability to 
                                enable the child to be involved in and 
                                progress in the general curriculum; and
                                  ``(II) meeting each of the child's 
                                other educational needs that result 
                                from the child's disability;
                          ``(iii) a statement of the special education 
                        and related services and supplementary aids and 
                        services to be provided to the child, or on 
                        behalf of the child, and a statement of the 
                        program modifications or supports for school 
                        personnel that will be provided for the child--
                                  ``(I) to advance appropriately toward 
                                attaining the annual goals;
                                  ``(II) to be involved and progress in 
                                the general curriculum in accordance 
                                with clause (i) and to participate in 
                                extracurricular and other nonacademic 
                                activities; and
                                  ``(III) to be educated and 
                                participate with other children with 
                                disabilities and nondisabled children 
                                in the activities described in this 
                                paragraph;
                          ``(iv) an explanation of the extent, if any, 
                        to which the child will not participate with 
                        nondisabled children in the regular class and 
                        in the activities described in clause (iii);
                          ``(v)(I) a statement of any individual 
                        modifications in the administration of State or 
                        districtwide assessments of student achievement 
                        that are needed in order for the child to 
                        participate in such assessment; and
                          ``(II) if the IEP Team determines that the 
                        child will not participate in a particular 
                        State or districtwide assessment of student 
                        achievement (or part of such an assessment), a 
                        statement of--
                                ``(aa) why that assessment is not 
                                appropriate for the child; and
                                ``(bb) how the child will be assessed;
                          ``(vi) the projected date for the beginning 
                        of the services and modifications described in 
                        clause (iii), and the anticipated frequency, 
                        location, and duration of those services and 
                        modifications;
                          ``(vii)(I) beginning at age 14, and updated 
                        annually, a statement of the transition service 
                        needs of the child under the applicable 
                        components of the child's IEP that focuses on 
                        the child's courses of study (such as 
                        participation in advanced-placement courses or 
                        a vocational education program);
                          ``(II) beginning at age 16 (or younger, if 
                        determined appropriate by the IEP Team), a 
                        statement of needed transition services for the 
                        child, including, when appropriate, a statement 
                        of the interagency responsibilities or any 
                        needed linkages; and
                          ``(III) beginning at least one year before 
                        the child reaches the age of majority under 
                        State law, a statement that the child has been 
                        informed of his or her rights under this title, 
                        if any, that will transfer to the child on 
                        reaching the age of majority under section 
                        615(m); and
                          ``(viii) a statement of--
                                  ``(I) how the child's progress toward 
                                the annual goals described in clause 
                                (ii) will be measured; and
                                  ``(II) how the child's parents will 
                                be regularly informed (by such means as 
                                periodic report cards), at least as 
                                often as parents are informed of their 
                                nondisabled children's progress, of--
                                          ``(aa) their child's progress 
                                        toward the annual goals 
                                        described in clause (ii); and
                                          ``(bb) the extent to which 
                                        that progress is sufficient to 
                                        enable the child to achieve the 
                                        goals by the end of the year.
                  ``(B) Individualized education program team.--The 
                term `individualized education program team' or `IEP 
                Team' means a group of individuals composed of--
                          ``(i) the parents of a child with a 
                        disability;
                          ``(ii) at least one regular education teacher 
                        of such child (if the child is, or may be, 
                        participating in the regular education 
                        environment);
                          ``(iii) at least one special education 
                        teacher, or where appropriate, at least one 
                        special education provider of such child;
                          ``(iv) a representative of the local 
                        educational agency who--
                                  ``(I) is qualified to provide, or 
                                supervise the provision of, specially 
                                designed instruction to meet the unique 
                                needs of children with disabilities;
                                  ``(II) is knowledgeable about the 
                                general curriculum; and
                                  ``(III) is knowledgeable about the 
                                availability of resources of the local 
                                educational agency;
                          ``(v) an individual who can interpret the 
                        instructional implications of evaluation 
                        results, who may be a member of the team 
                        described in clauses (ii) through (vi);
                          ``(vi) at the discretion of the parent or the 
                        agency, other individuals who have knowledge or 
                        special expertise regarding the child, 
                        including related services personnel as 
                        appropriate; and
                          ``(vii) whenever appropriate, the child with 
                        a disability.
          ``(2) Requirement that program be in effect.--
                  ``(A) In general.--At the beginning of each school 
                year, each local educational agency, State educational 
                agency, or other State agency, as the case may be, 
                shall have in effect, for each child with a disability 
                in its jurisdiction, an individualized education 
                program, as defined in paragraph (1)(A).
                  ``(B) Program for child aged 3 through 5.--In the 
                case of a child with a disability aged 3 through 5 (or, 
                at the discretion of the State educational agency, a 2 
                year-old child with a disability who will turn age 3 
                during the school year), an individualized family 
                service plan that contains the material described in 
                section 636, and that is developed in accordance with 
                this section, may serve as the IEP of the child if 
                using that plan as the IEP is--
                          ``(i) consistent with State policy; and
                          ``(ii) agreed to by the agency and the 
                        child's parents.
          ``(3) Development of iep.--
                  ``(A) In general.--In developing each child's IEP, 
                the IEP Team, subject to subparagraph (C), shall 
                consider--
                          ``(i) the strengths of the child and the 
                        concerns of the parents for enhancing the 
                        education of their child; and
                          ``(ii) the results of the initial evaluation 
                        or most recent evaluation of the child.
                  ``(B) Consideration of special factors.--The IEP Team 
                shall--
                          ``(i) in the case of a child whose behavior 
                        impedes his or her learning or that of others, 
                        consider, when appropriate, strategies, 
                        including positive behavioral interventions, 
                        strategies, and supports to address that 
                        behavior;
                          ``(ii) in the case of a child with limited 
                        English proficiency, consider the language 
                        needs of the child as such needs relate to the 
                        child's IEP;
                          ``(iii) in the case of a child who is blind 
                        or visually impaired, provide for instruction 
                        in Braille and the use of Braille unless the 
                        IEP Team determines, after an evaluation of the 
                        child's reading and writing skills, needs, and 
                        appropriate reading and writing media 
                        (including an evaluation of the child's future 
                        needs for instruction in Braille or the use of 
                        Braille), that instruction in Braille or the 
                        use of Braille is not appropriate for the 
                        child;
                          ``(iv) consider the communication needs of 
                        the child, and in the case of a child who is 
                        deaf or hard of hearing, consider the child's 
                        language and communication needs, opportunities 
                        for direct communications with peers and 
                        professional personnel in the child's language 
                        and communication mode, academic level, and 
                        full range of needs, including opportunities 
                        for direct instruction in the child's language 
                        and communication mode; and
                          ``(v) consider whether the child requires 
                        assistive technology devices and services.
                  ``(C) Requirement with respect to regular education 
                teacher.--The regular education teacher of the child, 
                as a member of the IEP Team, shall, to the extent 
                appropriate, participate in the development of the IEP 
                of the child, including the determination of 
                appropriate positive behavioral interventions and 
                strategies and the determination of supplementary aids 
                and services, program modifications, and support for 
                school personnel consistent with paragraph (1)(A)(iii).
          ``(4) Review and revision of iep.--
                  ``(A) In general.--The local educational agency shall 
                ensure that, subject to subparagraph (B), the IEP 
                Team--
                          ``(i) reviews the child's IEP periodically, 
                        but not less than annually to determine whether 
                        the annual goals for the child are being 
                        achieved; and
                          ``(ii) revises the IEP as appropriate to 
                        address--
                                  ``(I) any lack of expected progress 
                                toward the annual goals and in the 
                                general curriculum, where appropriate;
                                  ``(II) the results of any 
                                reevaluation conducted under this 
                                section;
                                  ``(III) information about the child 
                                provided to, or by, the parents, as 
                                described in subsection (c)(1)(B);
                                  ``(IV) the child's anticipated needs; 
                                or
                                  ``(V) other matters.
                  ``(B) Requirement with respect to regular education 
                teacher.--The regular education teacher of the child, 
                as a member of the IEP Team, shall, to the extent 
                appropriate, participate in the review and revision of 
                the IEP of the child.
          ``(5) Failure to meet transition objectives.--If a 
        participating agency, other than the local educational agency, 
        fails to provide the transition services described in the IEP 
        in accordance with paragraph (1)(A)(vii), the local educational 
        agency shall reconvene the IEP Team to identify alternative 
        strategies to meet the transition objectives for the child set 
        out in that program.
          ``(6) Children with disabilities in adult prisons.--
                  ``(A) In general.--The following requirements do not 
                apply to children with disabilities who are convicted 
                as adults under State law and incarcerated in adult 
                prisons:
                          ``(i) The requirements contained in section 
                        612(a)(17) and paragraph (1)(A)(v) of this 
                        subsection (relating to participation of 
                        children with disabilities in general 
                        assessments).
                          ``(ii) The requirements of subclauses (I) and 
                        (II) of paragraph (1)(A)(vii) of this 
                        subsection (relating to transition planning and 
                        transition services), do not apply with respect 
                        to such children whose eligibility under this 
                        part will end, because of their age, before 
                        they will be released from prison.
                  ``(B) Additional requirement.--If a child with a 
                disability is convicted as an adult under State law and 
                incarcerated in an adult prison, the child's IEP team 
                may modify the child's IEP or placement notwithstanding 
                the requirements of sections 612(a)(5)(A) and 
                614(d)(1)(A) if the State has demonstrated a bona fide 
                security or compelling penological interest that cannot 
                otherwise be accommodated.
  ``(e) Construction.--Nothing in this section shall be construed to 
require the IEP team to include information under one component of a 
child's IEP that is already contained under another component of such 
IEP.
  ``(f) Educational Placements.--Each local educational agency or State 
educational agency shall ensure that the parents of each child with a 
disability are members of any group that makes decisions on the 
educational placement of their child.

``SEC. 615. PROCEDURAL SAFEGUARDS.

  ``(a) Establishment of Procedures.--Any State educational agency, 
State agency, or local educational agency that receives assistance 
under this part shall establish and maintain procedures in accordance 
with this section to ensure that children with disabilities and their 
parents are guaranteed procedural safeguards with respect to the 
provision of free appropriate public education by such agencies.
  ``(b) Types of Procedures.--The procedures required by this section 
shall include--
          ``(1) an opportunity for the parents of a child with a 
        disability to examine all records relating to such child and to 
        participate in meetings with respect to the identification, 
        evaluation, and educational placement of the child, and the 
        provision of a free appropriate public education to such child, 
        and to obtain an independent educational evaluation of the 
        child;
          ``(2) procedures to protect the rights of the child whenever 
        the parents of the child are not known, the agency cannot, 
        after reasonable efforts, locate the parents, or the child is a 
        ward of the State, including the assignment of an individual 
        (who shall not be an employee of the State educational agency, 
        the local educational agency, or any other agency that is 
        involved in the education or care of the child) to act as a 
        surrogate for the parents;
          ``(3) written prior notice to the parents of the child 
        whenever such agency--
                  ``(A) proposes to initiate or change; or
                  ``(B) refuses to initiate or change;
        the identification, evaluation, or educational placement of the 
        child, in accordance with subsection (c), or the provision of a 
        free appropriate public education to the child;
          ``(4) procedures designed to ensure that the notice required 
        by paragraph (3) is in the native language of the parents, 
        unless it clearly is not feasible to do so;
          ``(5) an opportunity for mediation in accordance with 
        subsection (e);
          ``(6) an opportunity to present complaints with respect to 
        any matter relating to the identification, evaluation, or 
        educational placement of the child, or the provision of a free 
        appropriate public education to such child;
          ``(7) procedures that require the parent of a child with a 
        disability, or the attorney representing the child, to provide 
        notice (which shall remain confidential)--
                  ``(A) to the State educational agency or local 
                educational agency, as the case may be, in the 
                complaint filed under paragraph (6); and
                  ``(B) that shall include--
                          ``(i) the name of the child, the address of 
                        the residence of the child, and the name of the 
                        school the child is attending;
                          ``(ii) a description of the nature of the 
                        problem of the child relating to such proposed 
                        initiation or change, including facts relating 
                        to such problem; and
                          ``(iii) a proposed resolution of the problem 
                        to the extent known and available to the 
                        parents at the time; and
          ``(8) procedures that require the State educational agency to 
        develop a model form to assist parents in filing a complaint in 
        accordance with paragraph (7).
  ``(c) Content of Prior Written Notice.--The notice required by 
subsection (b)(3) shall include--
          ``(1) a description of the action proposed or refused by the 
        agency;
          ``(2) an explanation of why the agency proposes or refuses to 
        take the action;
          ``(3) a description of any other options that the agency 
        considered and the reasons why those options were rejected;
          ``(4) a description of each evaluation procedure, test, 
        record, or report the agency used as a basis for the proposed 
        or refused action;
          ``(5) a description of any other factors that are relevant to 
        the agency's proposal or refusal;
          ``(6) a statement that the parents of a child with a 
        disability have protection under the procedural safeguards of 
        this part and, if this notice is not an initial referral for 
        evaluation, the means by which a copy of a description of the 
        procedural safeguards can be obtained; and
          ``(7) sources for parents to contact to obtain assistance in 
        understanding the provisions of this part.
  ``(d) Procedural Safeguards Notice.--
          ``(1) In general.--A copy of the procedural safeguards 
        available to the parents of a child with a disability shall be 
        given to the parents, at a minimum--
                  ``(A) upon initial referral for evaluation;
                  ``(B) upon each notification of an individualized 
                education program meeting and upon reevaluation of the 
                child; and
                  ``(C) upon registration of a complaint under 
                subsection (b)(6).
          ``(2) Contents.--The procedural safeguards notice shall 
        include a full explanation of the procedural safeguards, 
        written in the native language of the parents, unless it 
        clearly is not feasible to do so, and written in an easily 
        understandable manner, available under this section and under 
        regulations promulgated by the Secretary relating to--
                  ``(A) independent educational evaluation;
                  ``(B) prior written notice;
                  ``(C) parental consent;
                  ``(D) access to educational records;
                  ``(E) opportunity to present complaints;
                  ``(F) the child's placement during pendency of due 
                process proceedings;
                  ``(G) procedures for students who are subject to 
                placement in an interim alternative educational 
                setting;
                  ``(H) requirements for unilateral placement by 
                parents of children in private schools at public 
                expense;
                  ``(I) mediation;
                  ``(J) due process hearings, including requirements 
                for disclosure of evaluation results and 
                recommendations;
                  ``(K) State-level appeals (if applicable in that 
                State);
                  ``(L) civil actions; and
                  ``(M) attorneys' fees.
  ``(e) Mediation.--
          ``(1) In general.--Any State educational agency or local 
        educational agency that receives assistance under this part 
        shall ensure that procedures are established and implemented to 
        allow parties to disputes involving any matter described in 
        subsection (b)(6) to resolve such disputes through a mediation 
        process which, at a minimum, shall be available whenever a 
        hearing is requested under subsection (f) or (k).
          ``(2) Requirements.--Such procedures shall meet the following 
        requirements:
                  ``(A) The procedures shall ensure that the mediation 
                process--
                          ``(i) is voluntary on the part of the 
                        parties;
                          ``(ii) is not used to deny or delay a 
                        parent's right to a due process hearing under 
                        subsection (f), or to deny any other rights 
                        afforded under this part; and
                          ``(iii) is conducted by a qualified and 
                        impartial mediator who is trained in effective 
                        mediation techniques.
                  ``(B) A local educational agency or a State agency 
                may establish procedures to require parents who choose 
                not to use the mediation process to meet, at a time and 
                location convenient to the parents, with a 
                disinterested party who is under contract with--
                          ``(i) a parent training and information 
                        center or community parent resource center in 
                        the State established under section 682 or 683; 
                        or
                          ``(ii) an appropriate alternative dispute 
                        resolution entity;
                to encourage the use, and explain the benefits, of the 
                mediation process to the parents.
                  ``(C) The State shall maintain a list of individuals 
                who are qualified mediators and knowledgeable in laws 
                and regulations relating to the provision of special 
                education and related services.
                  ``(D) The State shall bear the cost of the mediation 
                process, including the costs of meetings described in 
                subparagraph (B).
                  ``(E) Each session in the mediation process shall be 
                scheduled in a timely manner and shall be held in a 
                location that is convenient to the parties to the 
                dispute.
                  ``(F) An agreement reached by the parties to the 
                dispute in the mediation process shall be set forth in 
                a written mediation agreement.
                  ``(G) Discussions that occur during the mediation 
                process shall be confidential and may not be used as 
                evidence in any subsequent due process hearings or 
                civil proceedings and the parties to the mediation 
                process may be required to sign a confidentiality 
                pledge prior to the commencement of such process.
  ``(f) Impartial Due Process Hearing.--
          ``(1) In general.--Whenever a complaint has been received 
        under subsection (b)(6) or (k) of this section, the parents 
        involved in such complaint shall have an opportunity for an 
        impartial due process hearing, which shall be conducted by the 
        State educational agency or by the local educational agency, as 
        determined by State law or by the State educational agency.
          ``(2) Disclosure of evaluations and recommendations.--
                  ``(A) In general.--At least 5 business days prior to 
                a hearing conducted pursuant to paragraph (1), each 
                party shall disclose to all other parties all 
                evaluations completed by that date and recommendations 
                based on the offering party's evaluations that the 
                party intends to use at the hearing.
                  ``(B) Failure to disclose.--A hearing officer may bar 
                any party that fails to comply with subparagraph (A) 
                from introducing the relevant evaluation or 
                recommendation at the hearing without the consent of 
                the other party.
          ``(3) Limitation on conduct of hearing.--A hearing conducted 
        pursuant to paragraph (1) may not be conducted by an employee 
        of the State educational agency or the local educational agency 
        involved in the education or care of the child.
  ``(g) Appeal.--If the hearing required by subsection (f) is conducted 
by a local educational agency, any party aggrieved by the findings and 
decision rendered in such a hearing may appeal such findings and 
decision to the State educational agency. Such agency shall conduct an 
impartial review of such decision. The officer conducting such review 
shall make an independent decision upon completion of such review.
  ``(h) Safeguards.--Any party to a hearing conducted pursuant to 
subsection (f) or (k), or an appeal conducted pursuant to subsection 
(g), shall be accorded--
          ``(1) the right to be accompanied and advised by counsel and 
        by individuals with special knowledge or training with respect 
        to the problems of children with disabilities;
          ``(2) the right to present evidence and confront, cross-
        examine, and compel the attendance of witnesses;
          ``(3) the right to a written, or, at the option of the 
        parents, electronic verbatim record of such hearing; and
          ``(4) the right to written, or, at the option of the parents, 
        electronic findings of fact and decisions (which findings and 
        decisions shall be made available to the public consistent with 
        the requirements of section 617(c) (relating to the 
        confidentiality of data, information, and records) and shall 
        also be transmitted to the advisory panel established pursuant 
        to section 612(a)(21)).
  ``(i) Administrative Procedures.--
          ``(1) In general.--
                  ``(A) Decision made in hearing.--A decision made in a 
                hearing conducted pursuant to subsection (f) or (k) 
                shall be final, except that any party involved in such 
                hearing may appeal such decision under the provisions 
                of subsection (g) and paragraph (2) of this subsection.
                  ``(B) Decision made at appeal.--A decision made under 
                subsection (g) shall be final, except that any party 
                may bring an action under paragraph (2) of this 
                subsection.
          ``(2) Right to bring civil action.--
                  ``(A) In general.--Any party aggrieved by the 
                findings and decision made under subsection (f) or (k) 
                who does not have the right to an appeal under 
                subsection (g), and any party aggrieved by the findings 
                and decision under this subsection, shall have the 
                right to bring a civil action with respect to the 
                complaint presented pursuant to this section, which 
                action may be brought in any State court of competent 
                jurisdiction or in a district court of the United 
                States without regard to the amount in controversy.
                  ``(B) Additional requirements.--In any action brought 
                under this paragraph, the court--
                          ``(i) shall receive the records of the 
                        administrative proceedings;
                          ``(ii) shall hear additional evidence at the 
                        request of a party; and
                          ``(iii) basing its decision on the 
                        preponderance of the evidence, shall grant such 
                        relief as the court determines is appropriate.
          ``(3) Jurisdiction of district courts; attorneys' fees.--
                  ``(A) In general.--The district courts of the United 
                States shall have jurisdiction of actions brought under 
                this section without regard to the amount in 
                controversy.
                  ``(B) Award of attorneys' fees.--In any action or 
                proceeding brought under this section, the court, in 
                its discretion, may award reasonable attorneys' fees as 
                part of the costs to the parents of a child with a 
                disability who is the prevailing party.
                  ``(C) Determination of amount of attorneys' fees.--
                Fees awarded under this paragraph shall be based on 
                rates prevailing in the community in which the action 
                or proceeding arose for the kind and quality of 
                services furnished. No bonus or multiplier may be used 
                in calculating the fees awarded under this subsection.
                  ``(D) Prohibition of attorneys' fees and related 
                costs for certain services.--
                          ``(i) Attorneys' fees may not be awarded and 
                        related costs may not be reimbursed in any 
                        action or proceeding under this section for 
                        services performed subsequent to the time of a 
                        written offer of settlement to a parent if--
                                  ``(I) the offer is made within the 
                                time prescribed by Rule 68 of the 
                                Federal Rules of Civil Procedure or, in 
                                the case of an administrative 
                                proceeding, at any time more than ten 
                                days before the proceeding begins;
                                  ``(II) the offer is not accepted 
                                within 10 days; and
                                  ``(III) the court or administrative 
                                hearing officer finds that the relief 
                                finally obtained by the parents is not 
                                more favorable to the parents than the 
                                offer of settlement.
                          ``(ii) Attorneys' fees may not be awarded 
                        relating to any meeting of the IEP Team unless 
                        such meeting is convened as a result of an 
                        administrative proceeding or judicial action, 
                        or, at the discretion of the State, for a 
                        mediation described in subsection (e) that is 
                        conducted prior to the filing of a complaint 
                        under subsection (b)(6) or (k) of this section.
                  ``(E) Exception to prohibition on attorneys' fees and 
                related costs.--Notwithstanding subparagraph (D), an 
                award of attorneys' fees and related costs may be made 
                to a parent who is the prevailing party and who was 
                substantially justified in rejecting the settlement 
                offer.
                  ``(F) Reduction in amount of attorneys' fees.--Except 
                as provided in subparagraph (G), whenever the court 
                finds that--
                          ``(i) the parent, during the course of the 
                        action or proceeding, unreasonably protracted 
                        the final resolution of the controversy;
                          ``(ii) the amount of the attorneys' fees 
                        otherwise authorized to be awarded unreasonably 
                        exceeds the hourly rate prevailing in the 
                        community for similar services by attorneys of 
                        reasonably comparable skill, reputation, and 
                        experience;
                          ``(iii) the time spent and legal services 
                        furnished were excessive considering the nature 
                        of the action or proceeding; or
                          ``(iv) the attorney representing the parent 
                        did not provide to the school district the 
                        appropriate information in the due process 
                        complaint in accordance with subsection (b)(7);
                the court shall reduce, accordingly, the amount of the 
                attorneys' fees awarded under this section.
                  ``(G) Exception to reduction in amount of attorneys' 
                fees.--The provisions of subparagraph (F) shall not 
                apply in any action or proceeding if the court finds 
                that the State or local educational agency unreasonably 
                protracted the final resolution of the action or 
                proceeding or there was a violation of this section.
  ``(j) Maintenance of Current Educational Placement.--Except as 
provided in subsection (k)(7), during the pendency of any proceedings 
conducted pursuant to this section, unless the State or local 
educational agency and the parents otherwise agree, the child shall 
remain in the then-current educational placement of such child, or, if 
applying for initial admission to a public school, shall, with the 
consent of the parents, be placed in the public school program until 
all such proceedings have been completed.
  ``(k) Placement in Alternative Educational Setting.--
          ``(1) Authority of school personnel.--
                  ``(A) School personnel under this section may order a 
                change in the placement of a child with a disability--
                          ``(i) to an appropriate interim alternative 
                        educational setting, another setting, or 
                        suspension, for not more than 10 school days 
                        (to the extent such alternatives would be 
                        applied to children without disabilities); and
                          ``(ii) to an appropriate interim alternative 
                        educational setting for the same amount of time 
                        that a child without a disability would be 
                        subject to discipline, but for not more than 45 
                        days if--
                                  ``(I) the child carries a weapon to 
                                school or to a school function under 
                                the jurisdiction of a State or a local 
                                educational agency; or
                                  ``(II) the child knowingly possesses 
                                or uses illegal drugs or sells or 
                                solicits the sale of a controlled 
                                substance while at school or a school 
                                function under the jurisdiction of a 
                                State or local educational agency.
                  ``(B) Either before or not later than 10 days after 
                taking a disciplinary action described in subparagraph 
                (A)--
                          ``(i) if the local educational agency did not 
                        conduct a functional behavioral assessment and 
                        implement a behavioral intervention plan for 
                        such child before the behavior that resulted in 
                        the suspension described in subparagraph (A), 
                        the agency shall convene an IEP meeting to 
                        develop an assessment plan to address that 
                        behavior; or
                          ``(ii) if the child already has a behavioral 
                        intervention plan, the IEP Team shall review 
                        the plan and modify it, as necessary, to 
                        address the behavior.
          ``(2) Authority of hearing officer.--A hearing officer under 
        this section may order a change in the placement of a child 
        with a disability to an appropriate interim alternative 
        educational setting for not more than 45 days if the hearing 
        officer--
                  ``(A) determines that the public agency has 
                demonstrated by substantial evidence that maintaining 
                the current placement of such child is substantially 
                likely to result in injury to the child or to others;
                  ``(B) considers the appropriateness of the child's 
                current placement;
                  ``(C) considers whether the public agency has made 
                reasonable efforts to minimize the risk of harm in the 
                child's current placement, including the use of 
                supplementary aids and services; and
                  ``(D) determines that the interim alternative 
                educational setting meets the requirements of paragraph 
                (3)(B).
          ``(3) Determination of setting.--
                  ``(A) In general.--The alternative educational 
                setting described in paragraph (1)(A)(ii) shall be 
                determined by the IEP Team.
                  ``(B) Additional requirements.--Any interim 
                alternative educational setting in which a child is 
                placed under paragraph (1) or (2) shall--
                          ``(i) be selected so as to enable the child 
                        to continue to participate in the general 
                        curriculum, although in another setting, and to 
                        continue to receive those services and 
                        modifications, including those described in the 
                        child's current IEP, that will enable the child 
                        to meet the goals set out in that IEP; and
                          ``(ii) include services and modifications 
                        designed to address the behavior described in 
                        paragraph (1) or paragraph (2) so that it does 
                        not recur.
          ``(4) Manifestation determination review.--
                  ``(A) In general.--If a disciplinary action is 
                contemplated as described in paragraph (1) or paragraph 
                (2) for a behavior of a child with a disability 
                described in either of those paragraphs, or if a 
                disciplinary action involving a change of placement for 
                more than 10 days is contemplated for a child with a 
                disability who has engaged in other behavior that 
                violated any rule or code of conduct of the local 
                educational agency that applies to all children--
                          ``(i) not later than the date on which the 
                        decision to take that action is made, the 
                        parents shall be notified of that decision and 
                        of all procedural safeguards accorded under 
                        this section; and
                          ``(ii) immediately, if possible, but in no 
                        case later than 10 school days after the date 
                        on which the decision to take that action is 
                        made, a review shall be conducted of the 
                        relationship between the child's disability and 
                        the behavior subject to the disciplinary 
                        action.
                  ``(B) Individuals to carry out review.--A review 
                described in subparagraph (A) shall be conducted by the 
                IEP Team and other qualified personnel.
                  ``(C) Conduct of review.--In carrying out a review 
                described in subparagraph (A), the IEP Team may 
                determine that the behavior of the child was not a 
                manifestation of such child's disability only if the 
                IEP Team--
                          ``(i) first considers, in terms of the 
                        behavior subject to disciplinary action, all 
                        relevant information, including--
                                  ``(I) evaluation and diagnostic 
                                results, including such results or 
                                other relevant information supplied by 
                                the parents of the child;
                                  ``(II) observations of the child; and
                                  ``(III) the child's IEP and 
                                placement; and
                          ``(ii) then determines that--
                                  ``(I) in relationship to the behavior 
                                subject to disciplinary action, the 
                                child's IEP and placement were 
                                appropriate and the special education 
                                services, supplementary aids and 
                                services, and behavior intervention 
                                strategies were provided consistent 
                                with the child's IEP and placement;
                                  ``(II) the child's disability did not 
                                impair the ability of the child to 
                                understand the impact and consequences 
                                of the behavior subject to disciplinary 
                                action; and
                                  ``(III) the child's disability did 
                                not impair the ability of the child to 
                                control the behavior subject to 
                                disciplinary action.
          ``(5) Determination that behavior was not manifestation of 
        disability.--
                  ``(A) In general.--If the result of the review 
                described in paragraph (4) is a determination, 
                consistent with paragraph (4)(C), that the behavior of 
                the child with a disability was not a manifestation of 
                the child's disability, the relevant disciplinary 
                procedures applicable to children without disabilities 
                may be applied to the child in the same manner in which 
                they would be applied to children without disabilities, 
                except as provided in section 612(a)(1).
                  ``(B) Additional requirement.--If the public agency 
                initiates disciplinary procedures applicable to all 
                children, the agency shall ensure that the special 
                education and disciplinary records of the child with a 
                disability are transmitted for consideration by the 
                person or persons making the final determination 
                regarding the disciplinary action.
          ``(6) Parent appeal.--
                  ``(A) In general.--
                          ``(i) If the child's parent disagrees with a 
                        determination that the child's behavior was not 
                        a manifestation of the child's disability or 
                        with any decision regarding placement, the 
                        parent may request a hearing.
                          ``(ii) The State or local educational agency 
                        shall arrange for an expedited hearing in any 
                        case described in this subsection when 
                        requested by a parent.
                  ``(B) Review of decision.--
                          ``(i) In reviewing a decision with respect to 
                        the manifestation determination, the hearing 
                        officer shall determine whether the public 
                        agency has demonstrated that the child's 
                        behavior was not a manifestation of such 
                        child's disability consistent with the 
                        requirements of paragraph (4)(C).
                          ``(ii) In reviewing a decision under 
                        paragraph (1)(A)(ii) to place the child in an 
                        interim alternative educational setting, the 
                        hearing officer shall apply the standards set 
                        out in paragraph (2).
          ``(7) Placement during appeals.--
                  ``(A) In general.--When a parent requests a hearing 
                regarding a disciplinary action described in paragraph 
                (1)(A)(ii) or paragraph (2) to challenge the interim 
                alternative educational setting or the manifestation 
                determination, the child shall remain in the interim 
                alternative educational setting pending the decision of 
                the hearing officer or until the expiration of the time 
                period provided for in paragraph (1)(A)(ii) or 
                paragraph (2), whichever occurs first, unless the 
                parent and the State or local educational agency agree 
                otherwise.
                  ``(B) Current placement.--If a child is placed in an 
                interim alternative educational setting pursuant to 
                paragraph (1)(A)(ii) or paragraph (2) and school 
                personnel propose to change the child's placement after 
                expiration of the interim alternative placement, during 
                the pendency of any proceeding to challenge the 
                proposed change in placement, the child shall remain in 
                the current placement (the child's placement prior to 
                the interim alternative educational setting), except as 
                provided in subparagraph (C).
                  ``(C) Expedited hearing.--
                          ``(i) If school personnel maintain that it is 
                        dangerous for the child to be in the current 
                        placement (placement prior to removal to the 
                        interim alternative education setting) during 
                        the pendency of the due process proceedings, 
                        the local educational agency may request an 
                        expedited hearing.
                          ``(ii) In determining whether the child may 
                        be placed in the alternative educational 
                        setting or in another appropriate placement 
                        ordered by the hearing officer, the hearing 
                        officer shall apply the standards set out in 
                        paragraph (2).
          ``(8) Protections for children not yet eligible for special 
        education and related services.--
                  ``(A) In general.--A child who has not been 
                determined to be eligible for special education and 
                related services under this part and who has engaged in 
                behavior that violated any rule or code of conduct of 
                the local educational agency, including any behavior 
                described in paragraph (1), may assert any of the 
                protections provided for in this part if the local 
                educational agency had knowledge (as determined in 
                accordance with this paragraph) that the child was a 
                child with a disability before the behavior that 
                precipitated the disciplinary action occurred.
                  ``(B) Basis of knowledge.--A local educational agency 
                shall be deemed to have knowledge that a child is a 
                child with a disability if--
                          ``(i) the parent of the child has expressed 
                        concern in writing (unless the parent is 
                        illiterate or has a disability that prevents 
                        compliance with the requirements contained in 
                        this clause) to personnel of the appropriate 
                        educational agency that the child is in need of 
                        special education and related services;
                          ``(ii) the behavior or performance of the 
                        child demonstrates the need for such services;
                          ``(iii) the parent of the child has requested 
                        an evaluation of the child pursuant to section 
                        614; or
                          ``(iv) the teacher of the child, or other 
                        personnel of the local educational agency, has 
                        expressed concern about the behavior or 
                        performance of the child to the director of 
                        special education of such agency or to other 
                        personnel of the agency.
                  ``(C) Conditions that apply if no basis of 
                knowledge.--
                          ``(i) In general.--If a local educational 
                        agency does not have knowledge that a child is 
                        a child with a disability (in accordance with 
                        subparagraph (B)) prior to taking disciplinary 
                        measures against the child, the child may be 
                        subjected to the same disciplinary measures as 
                        measures applied to children without 
                        disabilities who engaged in comparable 
                        behaviors consistent with clause (ii).
                          ``(ii) Limitations.--If a request is made for 
                        an evaluation of a child during the time period 
                        in which the child is subjected to disciplinary 
                        measures under paragraph (1) or (2), the 
                        evaluation shall be conducted in an expedited 
                        manner. If the child is determined to be a 
                        child with a disability, taking into 
                        consideration information from the evaluation 
                        conducted by the agency and information 
                        provided by the parents, the agency shall 
                        provide special education and related services 
                        in accordance with the provisions of this part, 
                        except that, pending the results of the 
                        evaluation, the child shall remain in the 
                        educational placement determined by school 
                        authorities.
          ``(9) Referral to and action by law enforcement and judicial 
        authorities.--
                  ``(A) Nothing in this part shall be construed to 
                prohibit an agency from reporting a crime committed by 
                a child with a disability to appropriate authorities or 
                to prevent State law enforcement and judicial 
                authorities from exercising their responsibilities with 
                regard to the application of Federal and State law to 
                crimes committed by a child with a disability.
                  ``(B) An agency reporting a crime committed by a 
                child with a disability shall ensure that copies of the 
                special education and disciplinary records of the child 
                are transmitted for consideration by the appropriate 
                authorities to whom it reports the crime.
          ``(10) Definitions.--For purposes of this subsection, the 
        following definitions apply:
                  ``(A) Controlled substance.--The term `controlled 
                substance' means a drug or other substance identified 
                under schedules I, II, III, IV, or V in section 202(c) 
                of the Controlled Substances Act (21 U.S.C. 812(c)).
                  ``(B) Illegal drug.--The term `illegal drug'--
                          ``(i) means a controlled substance; but
                          ``(ii) does not include such a substance that 
                        is legally possessed or used under the 
                        supervision of a licensed health-care 
                        professional or that is legally possessed or 
                        used under any other authority under that Act 
                        or under any other provision of Federal law.
                  ``(C) Substantial evidence.--The term `substantial 
                evidence' means beyond a preponderance of the evidence.
                  ``(D) Weapon.--The term `weapon' has the meaning 
                given the term `dangerous weapon' under paragraph (2) 
                of the first subsection (g) of section 930 of title 18, 
                United States Code.
  ``(l) Rule of Construction.--Nothing in this part shall be construed 
to restrict or limit the rights, procedures, and remedies available 
under the Constitution, the Americans with Disabilities Act of 1990, 
title V of the Rehabilitation Act of 1973, or other Federal laws 
protecting the rights of children with disabilities, except that before 
the filing of a civil action under such laws seeking relief that is 
also available under this part, the procedures under subsections (f) 
and (g) shall be exhausted to the same extent as would be required had 
the action been brought under this part.
  ``(m) Transfer of Parental Rights at Age of Majority.--
          ``(1) In general.--A State that receives amounts from a grant 
        under this part may provide that, when a child with a 
        disability reaches the age of majority under State law (except 
        for a child with a disability who has been determined to be 
        incompetent under State law)--
                  ``(A) the public agency shall provide any notice 
                required by this section to both the individual and the 
                parents;
                  ``(B) all other rights accorded to parents under this 
                part transfer to the child;
                  ``(C) the agency shall notify the individual and the 
                parents of the transfer of rights; and
                  ``(D) all rights accorded to parents under this part 
                transfer to children who are incarcerated in an adult 
                or juvenile Federal, State, or local correctional 
                institution.
          ``(2) Special rule.--If, under State law, a child with a 
        disability who has reached the age of majority under State law, 
        who has not been determined to be incompetent, but who is 
        determined not to have the ability to provide informed consent 
        with respect to the educational program of the child, the State 
        shall establish procedures for appointing the parent of the 
        child, or if the parent is not available, another appropriate 
        individual, to represent the educational interests of the child 
        throughout the period of eligibility of the child under this 
        part.

``SEC. 616. WITHHOLDING AND JUDICIAL REVIEW.

  (a) Withholding of Payments.--
          ``(1) In general.--Whenever the Secretary, after reasonable 
        notice and opportunity for hearing to the State educational 
        agency involved (and to any local educational agency or State 
        agency affected by any failure described in subparagraph (B)), 
        finds--
                  ``(A) that there has been a failure by the State to 
                comply substantially with any provision of this part; 
                or
                  ``(B) that there is a failure to comply with any 
                condition of a local educational agency's or State 
                agency's eligibility under this part, including the 
                terms of any agreement to achieve compliance with this 
                part within the timelines specified in the agreement;
        the Secretary shall, after notifying the State educational 
        agency, withhold, in whole or in part, any further payments to 
        the State under this part, or refer the matter for appropriate 
        enforcement action, which may include referral to the 
        Department of Justice.
          ``(2) Nature of withholding.--If the Secretary withholds 
        further payments under paragraph (1), the Secretary may 
        determine that such withholding will be limited to programs or 
        projects, or portions thereof, affected by the failure, or that 
        the State educational agency shall not make further payments 
        under this part to specified local educational agencies or 
        State agencies affected by the failure. Until the Secretary is 
        satisfied that there is no longer any failure to comply with 
        the provisions of this part, as specified in subparagraph (A) 
        or (B) of paragraph (1), payments to the State under this part 
        shall be withheld in whole or in part, or payments by the State 
        educational agency under this part shall be limited to local 
        educational agencies and State agencies whose actions did not 
        cause or were not involved in the failure, as the case may be. 
        Any State educational agency, State agency, or local 
        educational agency that has received notice under paragraph (1) 
        shall, by means of a public notice, take such measures as may 
        be necessary to bring the pendency of an action pursuant to 
        this subsection to the attention of the public within the 
        jurisdiction of such agency.
  ``(b) Judicial Review.--
          ``(1) In general.--If any State is dissatisfied with the 
        Secretary's final action with respect to the eligibility of the 
        State under section 612, such State may, not later than 60 days 
        after notice of such action, file with the United States court 
        of appeals for the circuit in which such State is located a 
        petition for review of that action. A copy of the petition 
        shall be forthwith transmitted by the clerk of the court to the 
        Secretary. The Secretary thereupon shall file in the court the 
        record of the proceedings upon which the Secretary's action was 
        based, as provided in section 2112 of title 28, United States 
        Code.
          ``(2) Jurisdiction; review by united states supreme court.--
        Upon the filing of such petition, the court shall have 
        jurisdiction to affirm the action of the Secretary or to set it 
        aside, in whole or in part. The judgment of the court shall be 
        subject to review by the Supreme Court of the United States 
        upon certiorari or certification as provided in section 1254 of 
        title 28, United States Code.
          ``(3) Standard of review.--The findings of fact by the 
        Secretary, if supported by substantial evidence, shall be 
        conclusive, but the court, for good cause shown, may remand the 
        case to the Secretary to take further evidence, and the 
        Secretary may thereupon make new or modified findings of fact 
        and may modify the Secretary's previous action, and shall file 
        in the court the record of the further proceedings. Such new or 
        modified findings of fact shall likewise be conclusive if 
        supported by substantial evidence.
  ``(c) Divided state agency responsibility.--For purposes of this 
section, where responsibility for ensuring that the requirements of 
this part are met with respect to children with disabilities who are 
convicted as adults under State law and incarcerated in adult prisons 
is assigned to a public agency other than the State educational agency 
pursuant to section 612(a)(11)(C), the Secretary, in instances where 
the Secretary finds that the failure to comply substantially with the 
provisions of this part are related to a failure by the public agency, 
shall take appropriate corrective action to ensure compliance with this 
part, except--
          ``(1) any reduction or withholding of payments to the State 
        is proportionate to the total funds allotted under section 611 
        to the State as the number of eligible children with 
        disabilities in adult prisons under the supervision of the 
        other public agency is proportionate to the number of eligible 
        individuals with disabilities in the State under the 
        supervision of the State educational agency; and
          ``(2) any withholding of funds under paragraph (1) shall be 
        limited to the specific agency responsible for the failure to 
        comply with this part.

``SEC. 617. ADMINISTRATION.

  ``(a) Responsibilities of Secretary.--In carrying out this part, the 
Secretary shall--
          ``(1) cooperate with, and (directly or by grant or contract) 
        furnish technical assistance necessary to, the State in matters 
        relating to--
                  ``(A) the education of children with disabilities; 
                and
                  ``(B) carrying out this part; and
          ``(2) provide short-term training programs and institutes.
  ``(b) Rules and Regulations.--In carrying out the provisions of this 
part, the Secretary shall issue regulations under this Act only to the 
extent that such regulations are necessary to ensure that there is 
compliance with the specific requirements of this Act.
  ``(c) Confidentiality.--The Secretary shall take appropriate action, 
in accordance with the provisions of section 444 of the General 
Education Provisions Act (20 U.S.C. 1232g), to assure the protection of 
the confidentiality of any personally identifiable data, information, 
and records collected or maintained by the Secretary and by State and 
local educational agencies pursuant to the provisions of this part.
  ``(d) Personnel.--The Secretary is authorized to hire qualified 
personnel necessary to carry out the Secretary's duties under 
subsection (a) and under sections 618, 661 and 673 (or their 
predecessor authorities through October 1, 1997) without regard to the 
provisions of title 5, United States Code, relating to appointments in 
the competitive service and without regard to chapter 51 and subchapter 
III of chapter 53 of such title relating to classification and general 
schedule pay rates, except that no more than twenty such personnel 
shall be employed at any time.

``SEC. 618. PROGRAM INFORMATION.

  ``(a) In General.--Each State that receives assistance under this 
part, and the Secretary of the Interior, shall provide data each year 
to the Secretary--
                  ``(1)(A) on--
                  ``(i) the number of children with disabilities, by 
                race, ethnicity, and disability category, who are 
                receiving a free appropriate public education;
                  ``(ii) the number of children with disabilities, by 
                race and ethnicity, who are receiving early 
                intervention services;
                  ``(iii) the number of children with disabilities, by 
                race, ethnicity, and disability category, who are 
                participating in regular education;
                  ``(iv) the number of children with disabilities, by 
                race, ethnicity, and disability category, who are in 
                separate classes, separate schools or facilities, or 
                public or private residential facilities;
                  ``(v) the number of children with disabilities, by 
                race, ethnicity, and disability category, who, for each 
                year of age from age 14 to 21, stopped receiving 
                special education and related services because of 
                program completion or other reasons and the reasons why 
                those children stopped receiving special education and 
                related services;
                  ``(vi) the number of children with disabilities, by 
                race and ethnicity, who, from birth through age two, 
                stopped receiving early intervention services because 
                of program completion or for other reasons; and
                  ``(vii)(I) the number of children with disabilities, 
                by race, ethnicity, and disability category, who under 
                subparagraphs (A)(ii) and (B) of section 615(k)(1), are 
                removed to an interim alternative educational setting;
                  ``(II) the acts or items precipitating those 
                removals; and
                  ``(III) the number of children with disabilities who 
                are subject to long-term suspensions or expulsions; and
          ``(B) on the number of infants and toddlers, by race and 
        ethnicity, who are at risk of having substantial developmental 
        delays (as described in section 632), and who are receiving 
        early intervention services under part C; and
          ``(2) on any other information that may be required by the 
        Secretary.
  ``(b) Sampling.--The Secretary may permit States and the Secretary of 
the Interior to obtain the data described in subsection (a) through 
sampling.
  ``(c) Disproportionality.--
          ``(1) In general.--Each State that receives assistance under 
        this part, and the Secretary of the Interior, shall provide for 
        the collection and examination of data to determine if 
        significant disproportionality based on race is occurring in 
        the State with respect to--
                  ``(A) the identification of children as children with 
                disabilities, including the identification of children 
                as children with disabilities in accordance with a 
                particular impairment described in section 602(3); and
                  ``(B) the placement in particular educational 
                settings of such children.
          ``(2) Review and revision of policies, practices, and 
        procedures.--In the case of a determination of significant 
        disproportionality with respect to the identification of 
        children as children with disabilities, or the placement in 
        particular educational settings of such children, in accordance 
        with paragraph (1), the State or the Secretary of the Interior, 
        as the case may be, shall provide for the review and, if 
        appropriate, revision of the policies, procedures, and 
        practices used in such identification or placement to ensure 
        that such policies, procedures, and practices comply with the 
        requirements of this Act.

``SEC. 619. PRESCHOOL GRANTS.

  ``(a) In General.--The Secretary shall provide grants under this 
section to assist States to provide special education and related 
services, in accordance with this part--
          ``(1) to children with disabilities aged 3 to 5, inclusive; 
        and
          ``(2) at the State's discretion, to 2-year-old children with 
        disabilities who will turn 3 during the school year.
  ``(b) Eligibility.--A State shall be eligible for a grant under this 
section if such State--
          ``(1) is eligible under section 612 to receive a grant under 
        this part; and
          ``(2) makes a free appropriate public education available to 
        all children with disabilities, aged 3 through 5, residing in 
        the State.
  ``(c) Allocations to States.--
          ``(1) In general.--After reserving funds for studies and 
        evaluations under section 674(e), the Secretary shall allocate 
        the remaining amount among the States in accordance with 
        paragraph (2) or (3), as the case may be.
          ``(2) Increase in funds.--If the amount available for 
        allocations to States under paragraph (1) is equal to or 
        greater than the amount allocated to the States under this 
        section for the preceding fiscal year, those allocations shall 
        be calculated as follows:
                  ``(A)(i) Except as provided in subparagraph (B), the 
                Secretary shall--
                          ``(I) allocate to each State the amount it 
                        received for fiscal year 1997;
                          ``(II) allocate 85 percent of any remaining 
                        funds to States on the basis of their relative 
                        populations of children aged 3 through 5; and
                          ``(III) allocate 15 percent of those 
                        remaining funds to States on the basis of their 
                        relative populations of all children aged 3 
                        through 5 who are living in poverty.
                  ``(ii) For the purpose of making grants under this 
                paragraph, the Secretary shall use the most recent 
                population data, including data on children living in 
                poverty, that are available and satisfactory to the 
                Secretary.
                  ``(B) Notwithstanding subparagraph (A), allocations 
                under this paragraph shall be subject to the following:
                          ``(i) No State's allocation shall be less 
                        than its allocation for the preceding fiscal 
                        year.
                          ``(ii) No State's allocation shall be less 
                        than the greatest of--
                                  ``(I) the sum of--
                                          ``(aa) the amount it received 
                                        for fiscal year 1997; and
                                          ``(bb) one third of one 
                                        percent of the amount by which 
                                        the amount appropriated under 
                                        subsection (j) exceeds the 
                                        amount appropriated under this 
                                        section for fiscal year 1997;
                                  ``(II) the sum of--
                                          ``(aa) the amount it received 
                                        for the preceding fiscal year; 
                                        and
                                          ``(bb) that amount multiplied 
                                        by the percentage by which the 
                                        increase in the funds 
                                        appropriated from the preceding 
                                        fiscal year exceeds 1.5 
                                        percent; or
                                  ``(III) the sum of--
                                          ``(aa) the amount it received 
                                        for the preceding fiscal year; 
                                        and
                                          ``(bb) that amount multiplied 
                                        by 90 percent of the percentage 
                                        increase in the amount 
                                        appropriated from the preceding 
                                        fiscal year.
                          ``(iii) Notwithstanding clause (ii), no 
                        State's allocation under this paragraph shall 
                        exceed the sum of--
                                  ``(I) the amount it received for the 
                                preceding fiscal year; and
                                  ``(II) that amount multiplied by the 
                                sum of 1.5 percent and the percentage 
                                increase in the amount appropriated.
                  ``(C) If the amount available for allocations under 
                this paragraph is insufficient to pay those allocations 
                in full, those allocations shall be ratably reduced, 
                subject to subparagraph (B)(i).
          ``(3) Decrease in Funds.--If the amount available for 
        allocations to States under paragraph (1) is less than the 
        amount allocated to the States under this section for the 
        preceding fiscal year, those allocations shall be calculated as 
        follows:
                  ``(A) If the amount available for allocations is 
                greater than the amount allocated to the States for 
                fiscal year 1997, each State shall be allocated the sum 
                of--
                          ``(i) the amount it received for fiscal year 
                        1997; and
                          ``(ii) an amount that bears the same relation 
                        to any remaining funds as the increase the 
                        State received for the preceding fiscal year 
                        over fiscal year 1997 bears to the total of all 
                        such increases for all States.
                  ``(B) If the amount available for allocations is 
                equal to or less than the amount allocated to the 
                States for fiscal year 1997, each State shall be 
                allocated the amount it received for that year, ratably 
                reduced, if necessary.
          ``(4) Outlying areas.--The Secretary shall increase the 
        fiscal year 1998 allotment of each outlying area under section 
        611 by at least the amount that that area received under this 
        section for fiscal year 1997.
  ``(d) Reservation for State Activities.--
          ``(1) In general.--Each State may retain not more than the 
        amount described in paragraph (2) for administration and other 
        State-level activities in accordance with subsections (e) and 
        (f).
          ``(2) Amount described.--For each fiscal year, the Secretary 
        shall determine and report to the State educational agency an 
        amount that is 25 percent of the amount the State received 
        under this section for fiscal year 1997, cumulatively adjusted 
        by the Secretary for each succeeding fiscal year by the lesser 
        of--
                  ``(A) the percentage increase, if any, from the 
                preceding fiscal year in the State's allocation under 
                this section; or
                  ``(B) the percentage increase, if any, from the 
                preceding fiscal year in the Consumer Price Index For 
                All Urban Consumers published by the Bureau of Labor 
                Statistics of the Department of Labor.
  ``(e) State Administration.--
          ``(1) In general.--For the purpose of administering this 
        section (including the coordination of activities under this 
        part with, and providing technical assistance to, other 
        programs that provide services to children with disabilities) a 
        State may use not more than 20 percent of the maximum amount it 
        may retain under subsection (d) for any fiscal year.
          ``(2) Administration of part c.--Funds described in paragraph 
        (1) may also be used for the administration of part C of this 
        Act, if the State educational agency is the lead agency for the 
        State under that part.
  ``(f) Other State-Level Activities.--Each State shall use any funds 
it retains under subsection (d) and does not use for administration 
under subsection (e)--
          ``(1) for support services (including establishing and 
        implementing the mediation process required by section 615(e)), 
        which may benefit children with disabilities younger than 3 or 
        older than 5 as long as those services also benefit children 
        with disabilities aged 3 through 5;
          ``(2) for direct services for children eligible for services 
        under this section;
          ``(3) to develop a State improvement plan under subpart 1 of 
        part D;
          ``(4) for activities at the State and local levels to meet 
        the performance goals established by the State under section 
        612(a)(16) and to support implementation of the State 
        improvement plan under subpart 1 of part D if the State 
        receives funds under that subpart; or
          ``(5) to supplement other funds used to develop and implement 
        a Statewide coordinated services system designed to improve 
        results for children and families, including children with 
        disabilities and their families, but not to exceed one percent 
        of the amount received by the State under this section for a 
        fiscal year.
  ``(g) Subgrants to Local Educational Agencies.--
          ``(1) Subgrants required.--Each State that receives a grant 
        under this section for any fiscal year shall distribute any of 
        the grant funds that it does not reserve under subsection (d) 
        to local educational agencies in the State that have 
        established their eligibility under section 613, as follows:
                  ``(A) Base payments.--The State shall first award 
                each agency described in paragraph (1) the amount that 
                agency would have received under this section for 
                fiscal year 1997 if the State had distributed 75 
                percent of its grant for that year under section 
                619(c)(3), as then in effect.
                  ``(B) Allocation of remaining funds.--After making 
                allocations under subparagraph (A), the State shall--
                          ``(i) allocate 85 percent of any remaining 
                        funds to those agencies on the basis of the 
                        relative numbers of children enrolled in public 
                        and private elementary and secondary schools 
                        within the agency's jurisdiction; and
                          ``(ii) allocate 15 percent of those remaining 
                        funds to those agencies in accordance with 
                        their relative numbers of children living in 
                        poverty, as determined by the State educational 
                        agency.
                  ``(2) Reallocation of funds.--If a State educational 
                agency determines that a local educational agency is 
                adequately providing a free appropriate public 
                education to all children with disabilities aged three 
                through five residing in the area served by that agency 
                with State and local funds, the State educational 
                agency may reallocate any portion of the funds under 
                this section that are not needed by that local agency 
                to provide a free appropriate public education to other 
                local educational agencies in the State that are not 
                adequately providing special education and related 
                services to all children with disabilities aged three 
                through five residing in the areas they serve.
  ``(h) Part C Inapplicable.--Part C of this Act does not apply to any 
child with a disability receiving a free appropriate public education, 
in accordance with this part, with funds received under this section.
  ``(i) Definition.--For the purpose of this section, the term `State' 
means each of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico.
  ``(j) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated to the 
Secretary $500,000,000 for fiscal year 1998 and such sums as may be 
necessary for each subsequent fiscal year.

            ``PART C--INFANTS AND TODDLERS WITH DISABILITIES

``SEC. 631. FINDINGS AND POLICY.

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

``SEC. 632. DEFINITIONS.

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

``SEC. 633. GENERAL AUTHORITY.

  ``The Secretary shall, in accordance with this part, make grants to 
States (from their 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 State policy that is in effect and that ensures that 
        appropriate early intervention services are available to all 
        infants and toddlers with disabilities and their families, 
        including Indian infants and toddlers and their families 
        residing on a reservation geographically located in the State.
          ``(3) A timely, comprehensive, multidisciplinary evaluation 
        of the functioning of each infant or toddler with a disability 
        in the State, and a family-directed identification of the needs 
        of each family of such an infant or toddler, to appropriately 
        assist in the development of the infant or toddler.
          ``(4) For each infant or toddler with a disability in the 
        State, an individualized family service plan in accordance with 
        section 636, including service coordination services in 
        accordance with such service plan.
          ``(5) A comprehensive child find system, consistent with part 
        B, including a system for making referrals to service providers 
        that includes timelines and provides for participation by 
        primary referral sources.
          ``(6) A public awareness program focusing on early 
        identification of infants and toddlers with disabilities, 
        including the preparation and dissemination by the lead agency 
        designated or established under paragraph (10) to all primary 
        referral sources, especially hospitals and physicians, of 
        information for parents on the availability of early 
        intervention services, and procedures for determining the 
        extent to which such sources disseminate such information to 
        parents of infants and toddlers.
          ``(7) A central directory which includes information on early 
        intervention services, resources, and experts available in the 
        State and research and demonstration projects being conducted 
        in the State.
          ``(8) A comprehensive system of personnel development, 
        including the training of paraprofessionals and the training of 
        primary referral sources respecting the basic components of 
        early intervention services available in the State, that is 
        consistent with the comprehensive system of personnel 
        development described in section 612(a)(14) and may include--
                  ``(A) implementing innovative strategies and 
                activities for the recruitment and retention of early 
                education service providers;
                  ``(B) promoting the preparation of early intervention 
                providers who are fully and appropriately qualified to 
                provide early intervention services under this part;
                  ``(C) training personnel to work in rural and inner-
                city areas; and
                  ``(D) training personnel to coordinate transition 
                services for infants and toddlers served under this 
                part from an early intervention program under this part 
                to preschool or other appropriate services.
          ``(9) Subject to subsection (b), policies and procedures 
        relating to the establishment and maintenance of standards to 
        ensure that personnel necessary to carry out this part are 
        appropriately and adequately prepared and trained, including--
                  ``(A) the establishment and maintenance of standards 
                which are consistent with any State-approved or 
                recognized certification, licensing, registration, or 
                other comparable requirements which apply to the area 
                in which such personnel are providing early 
                intervention services; and
                  ``(B) to the extent such standards are not based on 
                the highest requirements in the State applicable to a 
                specific profession or discipline, the steps the State 
                is taking to require the retraining or hiring of 
                personnel that meet appropriate professional 
                requirements in the State;
        except that nothing in this part, including this paragraph, 
        prohibits the use of paraprofessionals and assistants who are 
        appropriately trained and supervised, in accordance with State 
        law, regulations, or written policy, to assist in the provision 
        of early intervention services to infants and toddlers with 
        disabilities under this part.
          ``(10) A single line of responsibility in a lead agency 
        designated or established by the Governor for carrying out--
                  ``(A) the general administration and supervision of 
                programs and activities receiving assistance under 
                section 633, and the monitoring of programs and 
                activities used by the State to carry out this part, 
                whether or not such programs or activities are 
                receiving assistance made available under section 633, 
                to ensure that the State complies with this part;
                  ``(B) the identification and coordination of all 
                available resources within the State from Federal, 
                State, local, and private sources;
                  ``(C) the assignment of financial responsibility in 
                accordance with section 637(a)(2) to the appropriate 
                agencies;
                  ``(D) the development of procedures to ensure that 
                services are provided to infants and toddlers and their 
                families under this part in a timely manner pending the 
                resolution of any disputes among public agencies or 
                service providers;
                  ``(E) the resolution of intra- and interagency 
                disputes; and
                  ``(F) the entry into formal interagency agreements 
                that define the financial responsibility of each agency 
                for paying for early intervention services (consistent 
                with State law) and procedures for resolving disputes 
                and that include all additional components necessary to 
                ensure meaningful cooperation and coordination.
          ``(11) A policy pertaining to the contracting or making of 
        other arrangements with service providers to provide early 
        intervention services in the State, consistent with the 
        provisions of this part, including the contents of the 
        application used and the conditions of the contract or other 
        arrangements.
          ``(12) A procedure for securing timely reimbursements of 
        funds used under this part in accordance with section 640(a).
          ``(13) Procedural safeguards with respect to programs under 
        this part, as required by section 639.
          ``(14) A system for compiling data requested by the Secretary 
        under section 618 that relates to this part.
          ``(15) A State interagency coordinating council that meets 
        the requirements of section 641.
          ``(16) Policies and procedures to ensure that, consistent 
        with section 636(d)(5)--
                  ``(A) to the maximum extent appropriate, early 
                intervention services are provided in natural 
                environments; and
                  ``(B) the provision of early intervention services 
                for any infant or toddler occurs in a setting other 
                than a natural environment only when early intervention 
                cannot be achieved satisfactorily for the infant or 
                toddler in a natural environment.
  ``(b) Policy.--In implementing subsection (a)(9), a State may adopt a 
policy that includes making ongoing good-faith efforts to recruit and 
hire appropriately and adequately trained personnel to provide early 
intervention services to infants and toddlers with disabilities, 
including, in a geographic area of the State where there is a shortage 
of such personnel, the most qualified individuals available who are 
making satisfactory progress toward completing applicable course work 
necessary to meet the standards described in subsection (a)(9) within 3 
years.

``SEC. 636. INDIVIDUALIZED FAMILY SERVICE PLAN.

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

``SEC. 637. STATE APPLICATION AND ASSURANCES.

  ``(a) Application.--A State desiring to receive a grant under section 
633 shall submit an application to the Secretary at such time and in 
such manner as the Secretary may reasonably require. The application 
shall contain--
          ``(1) a designation of the lead agency in the State that will 
        be responsible for the administration of funds provided under 
        section 633;
          ``(2) a designation of an individual or entity responsible 
        for assigning financial responsibility among appropriate 
        agencies;
          ``(3) information demonstrating eligibility of the State 
        under section 634, including--
                  ``(A) information demonstrating to the Secretary's 
                satisfaction that the State has in effect the statewide 
                system required by section 633; and
                  ``(B) a description of services to be provided to 
                infants and toddlers with disabilities and their 
                families through the system;
          ``(4) if the State provides services to at-risk infants and 
        toddlers through the system, a description of such services;
          ``(5) a description of the uses for which funds will be 
        expended in accordance with this part;
          ``(6) a description of the procedure used to ensure that 
        resources are made available under this part for all geographic 
        areas within the State;
          ``(7) a description of State policies and procedures that 
        ensure that, prior to the adoption by the State of any other 
        policy or procedure necessary to meet the requirements of this 
        part, there are public hearings, adequate notice of the 
        hearings, and an opportunity for comment available to the 
        general public, including individuals with disabilities and 
        parents of infants and toddlers with disabilities;
          ``(8) a description of the policies and procedures to be 
        used--
                  ``(A) to ensure a smooth transition for toddlers 
                receiving early intervention services under this part 
                to preschool or other appropriate services, including a 
                description of how--
                          ``(i) the families of such toddlers will be 
                        included in the transition plans required by 
                        subparagraph (C); and
                          ``(ii) the lead agency designated or 
                        established under section 636(a)(10) will--
                                  ``(I) notify the local educational 
                                agency for the area in which such a 
                                child resides that the child will 
                                shortly reach the age of eligibility 
                                for preschool services under part B, as 
                                determined in accordance with State 
                                law;
                                  ``(II) in the case of a child who may 
                                be eligible for such preschool 
                                services, with the approval of the 
                                family of the child, convene a 
                                conference among the lead agency, the 
                                family, and the local educational 
                                agency at least 90 days (and at the 
                                discretion of all such parties, up to 6 
                                months) before the child is eligible 
                                for the preschool services, to discuss 
                                any such services that the child may 
                                receive; and
                                  ``(III) in the case of a child who 
                                may not be eligible for such preschool 
                                services, with the approval of the 
                                family, make reasonable efforts to 
                                convene a conference among the lead 
                                agency, the family, and providers of 
                                other appropriate services for children 
                                who are not eligible for preschool 
                                services under part B, to discuss the 
                                appropriate services that the child may 
                                receive;
                  ``(B) to review the child's program options for the 
                period from the child's third birthday through the 
                remainder of the school year; and
                  ``(C) to establish a transition plan; and
          ``(9) such other information and assurances as the Secretary 
        may reasonably require.
  ``(b) Assurances.--The application described in subsection (a)--
          ``(1) shall provide satisfactory assurance that Federal funds 
        made available under section 643 to the State will be expended 
        in accordance with this part;
          ``(2) shall contain an assurance that the State will comply 
        with the requirements of section 640;
          ``(3) shall provide satisfactory assurance that the control 
        of funds provided under section 643, and title to property 
        derived from those funds, will be in a public agency for the 
        uses and purposes provided in this part and that a public 
        agency will administer such funds and property;
          ``(4) shall provide for--
                  ``(A) making such reports in such form and containing 
                such information as the Secretary may require to carry 
                out the Secretary's functions under this part; and
                  ``(B) keeping such records and affording such access 
                to them as the Secretary may find necessary to ensure 
                the correctness and verification of those reports and 
                proper disbursement of Federal funds under this part;
          ``(5) provide satisfactory assurance that Federal funds made 
        available under section 643 to the State--
                  ``(A) will not be commingled with State funds; and
                  ``(B) will be used so as to supplement the level of 
                State and local funds expended for infants and toddlers 
                with disabilities and their families and in no case to 
                supplant those State and local funds;
          ``(6) shall provide satisfactory assurance that such fiscal 
        control and fund accounting procedures will be adopted as may 
        be necessary to ensure proper disbursement of, and accounting 
        for, Federal funds paid under section 643 to the State;
          ``(7) shall provide satisfactory assurance that policies and 
        procedures have been adopted to ensure meaningful involvement 
        of underserved groups, including minority, low-income, and 
        rural families, in the planning and implementation of all the 
        requirements of this part; and
          ``(8) shall contain such other information and assurances as 
        the Secretary may reasonably require by regulation.
  ``(c) Standard for Disapproval of Application.--The Secretary may not 
disapprove such an application unless the Secretary determines, after 
notice and opportunity for a hearing, that the application fails to 
comply with the requirements of this section.
  ``(d) Subsequent State Application.--If a State has on file with the 
Secretary a policy, procedure, or assurance that demonstrates that the 
State meets a requirement of this section, including any policy or 
procedure filed under part H (as in effect before July 1, 1998), the 
Secretary shall consider the State to have met the requirement for 
purposes of receiving a grant under this part.
  ``(e) Modification of Application.--An application submitted by a 
State in accordance with this section shall remain in effect until the 
State submits to the Secretary such modifications as the State 
determines necessary. This section shall apply to a modification of an 
application to the same extent and in the same manner as this section 
applies to the original application.
  ``(f) Modifications Required by the Secretary.--The Secretary may 
require a State to modify its application under this section, but only 
to the extent necessary to ensure the State's compliance with this 
part, if--
          ``(1) an amendment is made to this Act, or a Federal 
        regulation issued under this Act;
          ``(2) a new interpretation of this Act is made by a Federal 
        court or the State's highest court; or
          ``(3) an official finding of noncompliance with Federal law 
        or regulations is made with respect to the State.

``SEC. 638. USES OF FUNDS.

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

``SEC. 639. PROCEDURAL SAFEGUARDS.

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

``SEC. 640. PAYOR OF LAST RESORT.

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

``SEC. 641. STATE INTERAGENCY COORDINATING COUNCIL.

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

``SEC. 642. FEDERAL ADMINISTRATION.

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

``SEC. 643. ALLOCATION OF FUNDS.

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

``SEC. 644. FEDERAL INTERAGENCY COORDINATING COUNCIL.

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

``SEC. 645. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

``SEC. 651. FINDINGS AND PURPOSE.

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

``SEC. 652. ELIGIBILITY AND COLLABORATIVE PROCESS.

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

``SEC. 653. APPLICATIONS.

  ``(a) In General.--
          ``(1) Submission.--A State educational agency that desires to 
        receive a grant under this subpart shall submit to the 
        Secretary an application at such time, in such manner, and 
        including such information as the Secretary may require.
          ``(2) State improvement plan.--The application shall include 
        a State improvement plan that--
                  ``(A) is integrated, to the maximum extent possible, 
                with State plans under the Elementary and Secondary 
                Education Act of 1965 and the Rehabilitation Act of 
                1973, as appropriate; and
                  ``(B) meets the requirements of this section.
  ``(b) Determining Child and Program Needs.--
          ``(1) In general.--Each State improvement plan shall identify 
        those critical aspects of early intervention, general 
        education, and special education programs (including 
        professional development, based on an assessment of State and 
        local needs) that must be improved to enable children with 
        disabilities to meet the goals established by the State under 
        section 612(a)(16).
          ``(2) Required analyses.--To meet the requirement of 
        paragraph (1), the State improvement plan shall include at 
        least--
                  ``(A) an analysis of all information, reasonably 
                available to the State educational agency, on the 
                performance of children with disabilities in the State, 
                including--
                          ``(i) their performance on State assessments 
                        and other performance indicators established 
                        for all children, including drop-out rates and 
                        graduation rates;
                          ``(ii) their participation in postsecondary 
                        education and employment; and
                          ``(iii) how their performance on the 
                        assessments and indicators described in clause 
                        (i) compares to that of non-disabled children;
                  ``(B) an analysis of State and local needs for 
                professional development for personnel to serve 
                children with disabilities that includes, at a 
                minimum--
                          ``(i) the number of personnel providing 
                        special education and related services; and
                          ``(ii) relevant information on current and 
                        anticipated personnel vacancies and shortages 
                        (including the number of individuals described 
                        in clause (i) with temporary certification), 
                        and on the extent of certification or 
                        retraining necessary to eliminate such 
                        shortages, that is based, to the maximum extent 
                        possible, on existing assessments of personnel 
                        needs;
                  ``(C) an analysis of the major findings of the 
                Secretary's most recent reviews of State compliance, as 
                they relate to improving results for children with 
                disabilities; and
                  ``(D) an analysis of other information, reasonably 
                available to the State, on the effectiveness of the 
                State's systems of early intervention, special 
                education, and general education in meeting the needs 
                of children with disabilities.
  ``(c) Improvement Strategies.--Each State improvement plan shall--
          ``(1) describe a partnership agreement that--
                  ``(A) specifies--
                          ``(i) the nature and extent of the 
                        partnership among the State educational agency, 
                        local educational agencies, and other State 
                        agencies involved in, or concerned with, the 
                        education of children with disabilities, and 
                        the respective roles of each member of the 
                        partnership; and
                          ``(ii) how such agencies will work in 
                        partnership with other persons and 
                        organizations involved in, and concerned with, 
                        the education of children with disabilities, 
                        including the respective roles of each of these 
                        persons and organizations; and
                  ``(B) is in effect for the period of the grant;
          ``(2) describe how grant funds will be used in undertaking 
        the systemic-change activities, and the amount and nature of 
        funds from any other sources, including part B funds retained 
        for use at the State level under sections 611(f) and 619(d), 
        that will be committed to the systemic-change activities;
          ``(3) describe the strategies the State will use to address 
        the needs identified under subsection (b), including--
                  ``(A) how the State will change State policies and 
                procedures to address systemic barriers to improving 
                results for children with disabilities;
                  ``(B) how the State will hold local educational 
                agencies and schools accountable for educational 
                progress of children with disabilities;
                  ``(C) how the State will provide technical assistance 
                to local educational agencies and schools to improve 
                results for children with disabilities;
                  ``(D) how the State will address the identified needs 
                for in-service and pre-service preparation to ensure 
                that all personnel who work with children with 
                disabilities (including both professional and 
                paraprofessional personnel who provide special 
                education, general education, related services, or 
                early intervention services) have the skills and 
                knowledge necessary to meet the needs of children with 
                disabilities, including a description of how--
                          ``(i) the State will prepare general and 
                        special education personnel with the content 
                        knowledge and collaborative skills needed to 
                        meet the needs of children with disabilities, 
                        including how the State will work with other 
                        States on common certification criteria;
                          ``(ii) the State will prepare professionals 
                        and paraprofessionals in the area of early 
                        intervention with the content knowledge and 
                        collaborative skills needed to meet the needs 
                        of infants and toddlers with disabilities;
                          ``(iii) the State will work with institutions 
                        of higher education and other entities that (on 
                        both a pre-service and an in-service basis) 
                        prepare personnel who work with children with 
                        disabilities to ensure that those institutions 
                        and entities develop the capacity to support 
                        quality professional development programs that 
                        meet State and local needs;
                          ``(iv) the State will work to develop 
                        collaborative agreements with other States for 
                        the joint support and development of programs 
                        to prepare personnel for which there is not 
                        sufficient demand within a single State to 
                        justify support or development of such a 
                        program of preparation;
                          ``(v) the State will work in collaboration 
                        with other States, particularly neighboring 
                        States, to address the lack of uniformity and 
                        reciprocity in the credentialing of teachers 
                        and other personnel;
                          ``(vi) the State will enhance the ability of 
                        teachers and others to use strategies, such as 
                        behavioral interventions, to address the 
                        conduct of children with disabilities that 
                        impedes the learning of children with 
                        disabilities and others;
                          ``(vii) the State will acquire and 
                        disseminate, to teachers, administrators, 
                        school board members, and related services 
                        personnel, significant knowledge derived from 
                        educational research and other sources, and how 
                        the State will, when appropriate, adopt 
                        promising practices, materials, and technology;
                          ``(viii) the State will recruit, prepare, and 
                        retain qualified personnel, including personnel 
                        with disabilities and personnel from groups 
                        that are underrepresented in the fields of 
                        regular education, special education, and 
                        related services;
                          ``(ix) the plan is integrated, to the maximum 
                        extent possible, with other professional 
                        development plans and activities, including 
                        plans and activities developed and carried out 
                        under other Federal and State laws that address 
                        personnel recruitment and training; and
                          ``(x) the State will provide for the joint 
                        training of parents and special education, 
                        related services, and general education 
                        personnel;
                  ``(E) strategies that will address systemic problems 
                identified in Federal compliance reviews, including 
                shortages of qualified personnel;
                  ``(F) how the State will disseminate results of the 
                local capacity-building and improvement projects funded 
                under section 611(f)(4);
                  ``(G) how the State will address improving results 
                for children with disabilities in the geographic areas 
                of greatest need; and
                  ``(H) how the State will assess, on a regular basis, 
                the extent to which the strategies implemented under 
                this subpart have been effective; and
          ``(4) describe how the improvement strategies described in 
        paragraph (3) will be coordinated with public and private 
        sector resources.
  ``(d) Competitive Awards.--
          ``(1) In general.--The Secretary shall make grants under this 
        subpart on a competitive basis.
          ``(2) Priority.--The Secretary may give priority to 
        applications on the basis of need, as indicated by such 
        information as the findings of Federal compliance reviews.
  ``(e) Peer Review.--
          ``(1) In general.--The Secretary shall use a panel of experts 
        who are competent, by virtue of their training, expertise, or 
        experience, to evaluate applications under this subpart.
          ``(2) Composition of panel.--A majority of a panel described 
        in paragraph (1) shall be composed of individuals who are not 
        employees of the Federal Government.
          ``(3) Payment of fees and expenses of certain members.--The 
        Secretary may use available funds appropriated to carry out 
        this subpart to pay the expenses and fees of panel members who 
        are not employees of the Federal Government.
  ``(f) Reporting Procedures.--Each State educational agency that 
receives a grant under this subpart shall submit performance reports to 
the Secretary pursuant to a schedule to be determined by the Secretary, 
but not more frequently than annually. The reports shall describe the 
progress of the State in meeting the performance goals established 
under section 612(a)(16), analyze the effectiveness of the State's 
strategies in meeting those goals, and identify any changes in the 
strategies needed to improve its performance.

``SEC. 654. USE OF FUNDS.

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

``SEC. 655. MINIMUM STATE GRANT AMOUNTS.

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

``SEC. 656. AUTHORIZATION OF APPROPRIATIONS.

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

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

``SEC. 661. ADMINISTRATIVE PROVISIONS.

  ``(a) Comprehensive Plan.--
          ``(1) In general.--The Secretary shall develop and implement 
        a comprehensive plan for activities carried out under this 
        subpart in order to enhance the provision of educational, 
        related, transitional, and early intervention services to 
        children with disabilities under parts B and C. The plan shall 
        include mechanisms to address educational, related services, 
        transitional, and early intervention needs identified by State 
        educational agencies in applications submitted for State 
        program improvement grants under subpart 1.
          ``(2) Participants in plan development.--In developing the 
        plan described in paragraph (1), the Secretary shall consult 
        with--
                  ``(A) individuals with disabilities;
                  ``(B) parents of children with disabilities;
                  ``(C) appropriate professionals; and
                  ``(D) representatives of State and local educational 
                agencies, private schools, institutions of higher 
                education, other Federal agencies, the National Council 
                on Disability, and national organizations with an 
                interest in, and expertise in, providing services to 
                children with disabilities and their families.
          ``(3) Public comment.--The Secretary shall take public 
        comment on the plan.
          ``(4) Distribution of funds.--In implementing the plan, the 
        Secretary shall, to the extent appropriate, ensure that funds 
        are awarded to recipients under this subpart to carry out 
        activities that benefit, directly or indirectly, children with 
        disabilities of all ages.
          ``(5) Reports to congress.--The Secretary shall periodically 
        report to the Congress on the Secretary's activities under this 
        subsection, including an initial report not later than the date 
        that is 18 months after the date of the enactment of the 
        Individuals with Disabilities Act Amendments of 1997.
  ``(b) Eligible Applicants.--
          ``(1) In general.--Except as otherwise provided in this 
        subpart, the following entities are eligible to apply for a 
        grant, contract, or cooperative agreement under this subpart:
                  ``(A) A State educational agency.
                  ``(B) A local educational agency.
                  ``(C) An institution of higher education.
                  ``(D) Any other public agency.
                  ``(E) A private nonprofit organization.
                  ``(F) An outlying area.
                  ``(G) An Indian tribe or a tribal organization (as 
                defined under section 4 of the Indian Self-
                Determination and Education Assistance Act).
                  ``(H) A for-profit organization, if the Secretary 
                finds it appropriate in light of the purposes of a 
                particular competition for a grant, contract, or 
                cooperative agreement under this subpart.
          ``(2) Special rule.--The Secretary may limit the entities 
        eligible for an award of a grant, contract, or cooperative 
        agreement to one or more categories of eligible entities 
        described in paragraph (1).
  ``(c) Use of Funds by Secretary.--Notwithstanding any other provision 
of law, and in addition to any authority granted the Secretary under 
chapter 1 or chapter 2, the Secretary may use up to 20 percent of the 
funds available under either chapter 1 or chapter 2 for any fiscal year 
to carry out any activity, or combination of activities, subject to 
such conditions as the Secretary determines are appropriate effectively 
to carry out the purposes of such chapters, that--
                  ``(A) is consistent with the purposes of chapter 1, 
                chapter 2, or both; and
                  ``(B) involves--
                          ``(i) research;
                          ``(ii) personnel preparation;
                          ``(iii) parent training and information;
                          ``(iv) technical assistance and 
                        dissemination;
                          ``(v) technology development, demonstration, 
                        and utilization; or
                          ``(vi) media services.
  ``(d) Special Populations.--
          ``(1) Application requirement.--In making an award of a 
        grant, contract, or cooperative agreement under this subpart, 
        the Secretary shall, as appropriate, require an applicant to 
        demonstrate how the applicant will address the needs of 
        children with disabilities from minority backgrounds.
          ``(2) Outreach and technical assistance.--
                  ``(A) Requirement.--Notwithstanding any other 
                provision of this Act, the Secretary shall ensure that 
                at least one percent of the total amount of funds 
                appropriated to carry out this subpart is used for 
                either or both of the following activities:
                          ``(i) To provide outreach and technical 
                        assistance to Historically Black Colleges and 
                        Universities, and to institutions of higher 
                        education with minority enrollments of at least 
                        25 percent, to promote the participation of 
                        such colleges, universities, and institutions 
                        in activities under this subpart.
                          ``(ii) To enable Historically Black Colleges 
                        and Universities, and the institutions 
                        described in clause (i), to assist other 
                        colleges, universities, institutions, and 
                        agencies in improving educational and 
                        transitional results for children with 
                        disabilities.
                  ``(B) Reservation of funds.--The Secretary may 
                reserve funds appropriated under this subpart to 
                satisfy the requirement of subparagraph (A).
  ``(e) Priorities.--
          ``(1) In general.--Except as otherwise explicitly authorized 
        in this subpart, the Secretary shall ensure that a grant, 
        contract, or cooperative agreement under chapter 1 or 2 is 
        awarded only--
                  ``(A) for activities that are designed to benefit 
                children with disabilities, their families, or the 
                personnel employed to work with such children or their 
                families; or
                  ``(B) to benefit other individuals with disabilities 
                who such chapter is intended to benefit.
          ``(2) Priority for particular activities.--Subject to 
        paragraph (1), the Secretary, in making an award of a grant, 
        contract, or cooperative agreement under this subpart, may, 
        without regard to the rule making procedures under section 553 
        of title 5, United States Code, limit competitions to, or 
        otherwise give priority to--
                  ``(A) projects that address one or more--
                          ``(i) age ranges;
                          ``(ii) disabilities;
                          ``(iii) school grades;
                          ``(iv) types of educational placements or 
                        early intervention environments;
                          ``(v) types of services;
                          ``(vi) content areas, such as reading; or
                          ``(vii) effective strategies for helping 
                        children with disabilities learn appropriate 
                        behavior in the school and other community-
                        based educational settings;
                  ``(B) projects that address the needs of children 
                based on the severity of their disability;
                  ``(C) projects that address the needs of--
                          ``(i) low-achieving students;
                          ``(ii) underserved populations;
                          ``(iii) children from low-income families;
                          ``(iv) children with limited English 
                        proficiency;
                          ``(v) unserved and underserved areas;
                          ``(vi) particular types of geographic areas; 
                        or
                          ``(vii) children whose behavior interferes 
                        with their learning and socialization;
                  ``(D) projects to reduce inappropriate identification 
                of children as children with disabilities, particularly 
                among minority children;
                  ``(E) projects that are carried out in particular 
                areas of the country, to ensure broad geographic 
                coverage; and
                  ``(F) any activity that is expressly authorized in 
                chapter 1 or 2.
  ``(f) Applicant and Recipient Responsibilities.--
          ``(1) Development and assessment of projects.--The Secretary 
        shall require that an applicant for, and a recipient of, a 
        grant, contract, or cooperative agreement for a project under 
        this subpart--
                  ``(A) involve individuals with disabilities or 
                parents of individuals with disabilities in planning, 
                implementing, and evaluating the project; and
                  ``(B) where appropriate, determine whether the 
                project has any potential for replication and adoption 
                by other entities.
          ``(2) Additional responsibilities.--The Secretary may require 
        a recipient of a grant, contract, or cooperative agreement for 
        a project under this subpart--
                  ``(A) to share in the cost of the project;
                  ``(B) to prepare the research and evaluation findings 
                and products from the project in formats that are 
                useful for specific audiences, including parents, 
                administrators, teachers, early intervention personnel, 
                related services personnel, and individuals with 
                disabilities;
                  ``(C) to disseminate such findings and products; and
                  ``(D) to collaborate with other such recipients in 
                carrying out subparagraphs (B) and (C).
  ``(g) Application Management.--
          ``(1) Standing panel.--
                  ``(A) In general.--The Secretary shall establish and 
                use a standing panel of experts who are competent, by 
                virtue of their training, expertise, or experience, to 
                evaluate applications under this subpart that, 
                individually, request more than $75,000 per year in 
                Federal financial assistance.
                  ``(B) Membership.--The standing panel shall include, 
                at a minimum--
                          ``(i) individuals who are representatives of 
                        institutions of higher education that plan, 
                        develop, and carry out programs of personnel 
                        preparation;
                          ``(ii) individuals who design and carry out 
                        programs of research targeted to the 
                        improvement of special education programs and 
                        services;
                          ``(iii) individuals who have recognized 
                        experience and knowledge necessary to integrate 
                        and apply research findings to improve 
                        educational and transitional results for 
                        children with disabilities;
                          ``(iv) individuals who administer programs at 
                        the State or local level in which children with 
                        disabilities participate;
                          ``(v) individuals who prepare parents of 
                        children with disabilities to participate in 
                        making decisions about the education of their 
                        children;
                          ``(vi) individuals who establish policies 
                        that affect the delivery of services to 
                        children with disabilities;
                          ``(vii) individuals who are parents of 
                        children with disabilities who are benefiting, 
                        or have benefited, from coordinated research, 
                        personnel preparation, and technical 
                        assistance; and
                          ``(viii) individuals with disabilities.
                  ``(C) Training.--The Secretary shall provide training 
                to the individuals who are selected as members of the 
                standing panel under this paragraph.
                  ``(D) Term.--No individual shall serve on the 
                standing panel for more than 3 consecutive years, 
                unless the Secretary determines that the individual's 
                continued participation is necessary for the sound 
                administration of this subpart.
          ``(2) Peer-review panels for particular competitions.--
                  ``(A) Composition.--The Secretary shall ensure that 
                each sub-panel selected from the standing panel that 
                reviews applications under this subpart includes--
                          ``(i) individuals with knowledge and 
                        expertise on the issues addressed by the 
                        activities authorized by the subpart; and
                          ``(ii) to the extent practicable, parents of 
                        children with disabilities, individuals with 
                        disabilities, and persons from diverse 
                        backgrounds.
                  ``(B) Federal employment limitation.--A majority of 
                the individuals on each sub-panel that reviews an 
                application under this subpart shall be individuals who 
                are not employees of the Federal Government.
          ``(3) Use of discretionary funds for administrative 
        purposes.--
                  ``(A) Expenses and fees of non-Federal panel 
                members.--The Secretary may use funds available under 
                this subpart to pay the expenses and fees of the panel 
                members who are not officers or employees of the 
                Federal Government.
                  ``(B) Administrative support.--The Secretary may use 
                not more than 1 percent of the funds appropriated to 
                carry out this subpart to pay non-Federal entities for 
                administrative support related to management of 
                applications submitted under this subpart.
                  ``(C) Monitoring.--The Secretary may use funds 
                available under this subpart to pay the expenses of 
                Federal employees to conduct on-site monitoring of 
                projects receiving $500,000 or more for any fiscal year 
                under this subpart.
  ``(h) Program Evaluation.--The Secretary may use funds appropriated 
to carry out this subpart to evaluate activities carried out under the 
subpart.
  ``(i) Minimum Funding Required.--
          ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall ensure that, for each fiscal year, at least the following 
        amounts are provided under this subpart to address the 
        following needs:
                  ``(A) $12,832,000 to address the educational, related 
                services, transitional, and early intervention needs of 
                children with deaf-blindness.
                  ``(B) $4,000,000 to address the postsecondary, 
                vocational, technical, continuing, and adult education 
                needs of individuals with deafness.
                  ``(C) $4,000,000 to address the educational, related 
                services, and transitional needs of children with an 
                emotional disturbance and those who are at risk of 
                developing an emotional disturbance.
          ``(2) Ratable reduction.--If the total amount appropriated to 
        carry out sections 672, 673, and 685 for any fiscal year is 
        less than $130,000,000, the amounts listed in (1) shall be 
        ratably reduced.
  ``(j) Eligibility for Financial Assistance.--Effective for fiscal 
years for which the Secretary may make grants under section 619(b), no 
State or local educational agency or educational service agency or 
other public institution or agency may receive a grant under this 
subpart which relates exclusively to programs, projects, and activities 
pertaining to children aged three to five, inclusive, unless the State 
is eligible to receive a grant under section 619(b).

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

``SEC. 671. FINDINGS AND PURPOSE.

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

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

  ``(a) In General.--The Secretary shall make competitive grants to, or 
enter into contracts or cooperative agreements with, eligible entities 
to produce, and advance the use of, knowledge--
          ``(1) to improve--
                  ``(A) services provided under this Act, including the 
                practices of professionals and others involved in 
                providing such services to children with disabilities; 
                and
                  ``(B) educational results for children with 
                disabilities;
          ``(2) to address the special needs of preschool-aged children 
        and infants and toddlers with disabilities, including infants 
        and toddlers who would be at risk of having substantial 
        developmental delays if early intervention services were not 
        provided to them;
          ``(3) to address the specific problems of over-identification 
        and under-identification of children with disabilities;
          ``(4) to develop and implement effective strategies for 
        addressing inappropriate behavior of students with disabilities 
        in schools, including strategies to prevent children with 
        emotional and behavioral problems from developing emotional 
        disturbances that require the provision of special education 
        and related services;
          ``(5) to improve secondary and postsecondary education and 
        transitional services for children with disabilities; and
          ``(6) to address the range of special education, related 
        services, and early intervention needs of children with 
        disabilities who need significant levels of support to maximize 
        their participation and learning in school and in the 
        community.
  ``(b) New Knowledge Production; Authorized Activities.--
          ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives described in subsection (a), that lead to the 
        production of new knowledge.
          ``(2) Authorized activities.--Activities that may be carried 
        out under this subsection include activities such as the 
        following:
                  ``(A) Expanding understanding of the relationships 
                between learning characteristics of children with 
                disabilities and the diverse ethnic, cultural, 
                linguistic, social, and economic backgrounds of 
                children with disabilities and their families.
                  ``(B) Developing or identifying innovative, 
                effective, and efficient curricula designs, 
                instructional approaches, and strategies, and 
                developing or identifying positive academic and social 
                learning opportunities, that--
                          ``(i) enable children with disabilities to 
                        make effective transitions described in section 
                        674(b)(3)(C) or transitions between educational 
                        settings; and
                          ``(ii) improve educational and transitional 
                        results for children with disabilities at all 
                        levels of the educational system in which the 
                        activities are carried out and, in particular, 
                        that improve the progress of the children, as 
                        measured by assessments within the general 
                        education curriculum involved.
                  ``(C) Advancing the design of assessment tools and 
                procedures that will accurately and efficiently 
                determine the special instructional, learning, and 
                behavioral needs of children with disabilities, 
                especially within the context of general education.
                  ``(D) Studying and promoting improved alignment and 
                compatibility of general and special education reforms 
                concerned with curricular and instructional reform, 
                evaluation and accountability of such reforms, and 
                administrative procedures.
                  ``(E) Advancing the design, development, and 
                integration of technology, assistive technology 
                devices, media, and materials, to improve early 
                intervention, educational, and transitional services 
                and results for children with disabilities.
                  ``(F) Improving designs, processes, and results of 
                personnel preparation for personnel who provide 
                services to children with disabilities through the 
                acquisition of information on, and implementation of, 
                research-based practices.
                  ``(G) Advancing knowledge about the coordination of 
                education with health and social services.
                  ``(H) Producing information on the long-term impact 
                of early intervention and education on results for 
                individuals with disabilities through large-scale 
                longitudinal studies.
  ``(c) Integration of Research and Practice; Authorized Activities.--
          ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives described in subsection (a), that integrate research 
        and practice, including activities that support State systemic-
        change and local capacity-building and improvement efforts.
          ``(2) Authorized activities.--Activities that may be carried 
        out under this subsection include activities such as the 
        following:
                  ``(A) Model demonstration projects to apply and test 
                research findings in typical service settings to 
                determine the usability, effectiveness, and general 
                applicability of such research findings in such areas 
                as improving instructional methods, curricula, and 
                tools, such as textbooks and media.
                  ``(B) Demonstrating and applying research-based 
                findings to facilitate systemic changes, related to the 
                provision of services to children with disabilities, in 
                policy, procedure, practice, and the training and use 
                of personnel.
                  ``(C) Promoting and demonstrating the coordination of 
                early intervention and educational services for 
                children with disabilities with services provided by 
                health, rehabilitation, and social service agencies.
                  ``(D) Identifying and disseminating solutions that 
                overcome systemic barriers to the effective and 
                efficient delivery of early intervention, educational, 
                and transitional services to children with 
                disabilities.
  ``(d) Improving the Use of Professional Knowledge; Authorized 
Activities.--
          ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives described in subsection (a), that improve the use of 
        professional knowledge, including activities that support State 
        systemic-change and local capacity-building and improvement 
        efforts.
          ``(2) Authorized activities.--Activities that may be carried 
        out under this subsection include activities such as the 
        following:
                  ``(A) Synthesizing useful research and other 
                information relating to the provision of services to 
                children with disabilities, including effective 
                practices.
                  ``(B) Analyzing professional knowledge bases to 
                advance an understanding of the relationships, and the 
                effectiveness of practices, relating to the provision 
                of services to children with disabilities.
                  ``(C) Ensuring that research and related products are 
                in appropriate formats for distribution to teachers, 
                parents, and individuals with disabilities.
                  ``(D) Enabling professionals, parents of children 
                with disabilities, and other persons, to learn about, 
                and implement, the findings of research, and successful 
                practices developed in model demonstration projects, 
                relating to the provision of services to children with 
                disabilities.
                  ``(E) Conducting outreach, and disseminating 
                information relating to successful approaches to 
                overcoming systemic barriers to the effective and 
                efficient delivery of early intervention, educational, 
                and transitional services, to personnel who provide 
                services to children with disabilities.
  ``(e) Balance Among Activities and Age Ranges.--In carrying out this 
section, the Secretary shall ensure that there is an appropriate 
balance--
          ``(1) among knowledge production, integration of research and 
        practice, and use of professional knowledge; and
          ``(2) across all age ranges of children with disabilities.
  ``(f) Applications.--An eligible entity that wishes to receive a 
grant, or enter into a contract or cooperative agreement, under this 
section shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
require.
  ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 1998 through 2002.

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

  ``(a) In General.--The Secretary shall, on a competitive basis, make 
grants to, or enter into contracts or cooperative agreements with, 
eligible entities--
          ``(1) to help address State-identified needs for qualified 
        personnel in special education, related services, early 
        intervention, and regular education, to work with children with 
        disabilities; and
          ``(2) to ensure that those personnel have the skills and 
        knowledge, derived from practices that have been determined, 
        through research and experience, to be successful, that are 
        needed to serve those children.
  ``(b) Low-Incidence Disabilities; Authorized Activities.--
          ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives described in subsection (a), that benefit children 
        with low-incidence disabilities.
          ``(2) Authorized activities.--Activities that may be carried 
        out under this subsection include activities such as the 
        following:
                  ``(A) Preparing persons who--
                          ``(i) have prior training in educational and 
                        other related service fields; and
                          ``(ii) are studying to obtain degrees, 
                        certificates, or licensure that will enable 
                        them to assist children with disabilities to 
                        achieve the objectives set out in their 
                        individualized education programs described in 
                        section 614(d), or to assist infants and 
                        toddlers with disabilities to achieve the 
                        outcomes described in their individualized 
                        family service plans described in section 636.
                  ``(B) Providing personnel from various disciplines 
                with interdisciplinary training that will contribute to 
                improvement in early intervention, educational, and 
                transitional results for children with disabilities.
                  ``(C) Preparing personnel in the innovative uses and 
                application of technology to enhance learning by 
                children with disabilities through early intervention, 
                educational, and transitional services.
                  ``(D) Preparing personnel who provide services to 
                visually impaired or blind children to teach and use 
                Braille in the provision of services to such children.
                  ``(E) Preparing personnel to be qualified educational 
                interpreters, to assist children with disabilities, 
                particularly deaf and hard-of-hearing children in 
                school and school-related activities and deaf and hard-
                of-hearing infants and toddlers and preschool children 
                in early intervention and preschool programs.
                  ``(F) Preparing personnel who provide services to 
                children with significant cognitive disabilities and 
                children with multiple disabilities.
          ``(3) Definition.--As used in this section, the term `low-
        incidence disability' means--
                  ``(A) a visual or hearing impairment, or simultaneous 
                visual and hearing impairments;
                  ``(B) a significant cognitive impairment; or
                  ``(C) any impairment for which a small number of 
                personnel with highly specialized skills and knowledge 
                are needed in order for children with that impairment 
                to receive early intervention services or a free 
                appropriate public education.
          ``(4) Selection of recipients.--In selecting recipients under 
        this subsection, the Secretary may give preference to 
        applications that propose to prepare personnel in more than one 
        low-incidence disability, such as deafness and blindness.
          ``(5) Preparation in use of braille.--The Secretary shall 
        ensure that all recipients of assistance under this subsection 
        who will use that assistance to prepare personnel to provide 
        services to visually impaired or blind children that can 
        appropriately be provided in Braille will prepare those 
        individuals to provide those services in Braille.
  ``(c) Leadership Preparation; Authorized Activities.--
          ``(1) In general.--In carrying out this section, the 
        Secretary shall support leadership preparation activities that 
        are consistent with the objectives described in subsection (a).
          ``(2) Authorized activities.--Activities that may be carried 
        out under this subsection include activities such as the 
        following:
                  ``(A) Preparing personnel at the advanced graduate, 
                doctoral, and postdoctoral levels of training to 
                administer, enhance, or provide services for children 
                with disabilities.
                  ``(B) Providing interdisciplinary training for 
                various types of leadership personnel, including 
                teacher preparation faculty, administrators, 
                researchers, supervisors, principals, and other persons 
                whose work affects early intervention, educational, and 
                transitional services for children with disabilities.
  ``(d) Projects of National Significance; Authorized Activities.--
          ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives described in subsection (a), that are of national 
        significance and have broad applicability.
          ``(2) Authorized activities.--Activities that may be carried 
        out under this subsection include activities such as the 
        following:
                  ``(A) Developing and demonstrating effective and 
                efficient practices for preparing personnel to provide 
                services to children with disabilities, including 
                practices that address any needs identified in the 
                State's improvement plan under part C;
                  ``(B) Demonstrating the application of significant 
                knowledge derived from research and other sources in 
                the development of programs to prepare personnel to 
                provide services to children with disabilities.
                  ``(C) Demonstrating models for the preparation of, 
                and interdisciplinary training of, early intervention, 
                special education, and general education personnel, to 
                enable the personnel--
                          ``(i) to acquire the collaboration skills 
                        necessary to work within teams to assist 
                        children with disabilities; and
                          ``(ii) to achieve results that meet 
                        challenging standards, particularly within the 
                        general education curriculum.
                  ``(D) Demonstrating models that reduce shortages of 
                teachers, and personnel from other relevant 
                disciplines, who serve children with disabilities, 
                through reciprocity arrangements between States that 
                are related to licensure and certification.
                  ``(E) Developing, evaluating, and disseminating model 
                teaching standards for persons working with children 
                with disabilities.
                  ``(F) Promoting the transferability, across State and 
                local jurisdictions, of licensure and certification of 
                teachers and administrators working with such children.
                  ``(G) Developing and disseminating models that 
                prepare teachers with strategies, including behavioral 
                interventions, for addressing the conduct of children 
                with disabilities that impedes their learning and that 
                of others in the classroom.
                  ``(H) Institutes that provide professional 
                development that addresses the needs of children with 
                disabilities to teachers or teams of teachers, and 
                where appropriate, to school board members, 
                administrators, principals, pupil-service personnel, 
                and other staff from individual schools.
                  ``(I) Projects to improve the ability of general 
                education teachers, principals, and other 
                administrators to meet the needs of children with 
                disabilities.
                  ``(J) Developing, evaluating, and disseminating 
                innovative models for the recruitment, induction, 
                retention, and assessment of new, qualified teachers, 
                especially from groups that are underrepresented in the 
                teaching profession, including individuals with 
                disabilities.
                  ``(K) Supporting institutions of higher education 
                with minority enrollments of at least 25 percent for 
                the purpose of preparing personnel to work with 
                children with disabilities.
  ``(e) High-Incidence Disabilities; Authorized Activities.--
          ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives described in subsection (a), to benefit children 
        with high-incidence disabilities, such as children with 
        specific learning disabilities, speech or language impairment, 
        or mental retardation.
          ``(2) Authorized activities.--Activities that may be carried 
        out under this subsection include the following:
                  ``(A) Activities undertaken by institutions of higher 
                education, local educational agencies, and other local 
                entities--
                          ``(i) to improve and reform their existing 
                        programs to prepare teachers and related 
                        services personnel--
                                  ``(I) to meet the diverse needs of 
                                children with disabilities for early 
                                intervention, educational, and 
                                transitional services; and
                                  ``(II) to work collaboratively in 
                                regular classroom settings; and
                          ``(ii) to incorporate best practices and 
                        research-based knowledge about preparing 
                        personnel so they will have the knowledge and 
                        skills to improve educational results for 
                        children with disabilities.
                  ``(B) Activities incorporating innovative strategies 
                to recruit and prepare teachers and other personnel to 
                meet the needs of areas in which there are acute and 
                persistent shortages of personnel.
                  ``(C) Developing career opportunities for 
                paraprofessionals to receive training as special 
                education teachers, related services personnel, and 
                early intervention personnel, including 
                interdisciplinary training to enable them to improve 
                early intervention, educational, and transitional 
                results for children with disabilities.
  ``(f) Applications.--
          ``(1) In general.--Any eligible entity that wishes to receive 
        a grant, or enter into a contract or cooperative agreement, 
        under this section shall submit an application to the Secretary 
        at such time, in such manner, and containing such information 
        as the Secretary may require.
          ``(2) Identified state needs.--
                  ``(A) Requirement to address identified needs.--Any 
                application under subsection (b), (c), or (e) shall 
                include information demonstrating to the satisfaction 
                of the Secretary that the activities described in the 
                application will address needs identified by the State 
                or States the applicant proposes to serve.
                  ``(B) Cooperation with state educational agencies.--
                Any applicant that is not a local educational agency or 
                a State educational agency shall include information 
                demonstrating to the satisfaction of the Secretary that 
                the applicant and one or more State educational 
                agencies have engaged in a cooperative effort to plan 
                the project to which the application pertains, and will 
                cooperate in carrying out and monitoring the project.
          ``(3) Acceptance by states of personnel preparation 
        requirements.--The Secretary may require applicants to provide 
        letters from one or more States stating that the States--
                  ``(A) intend to accept successful completion of the 
                proposed personnel preparation program as meeting State 
                personnel standards for serving children with 
                disabilities or serving infants and toddlers with 
                disabilities; and
                  ``(B) need personnel in the area or areas in which 
                the applicant proposes to provide preparation, as 
                identified in the States' comprehensive systems of 
                personnel development under parts B and C.
  ``(g) Selection of Recipients.--
          ``(1) Impact of project.--In selecting recipients under this 
        section, the Secretary may consider the impact of the project 
        proposed in the application in meeting the need for personnel 
        identified by the States.
          ``(2) Requirement on applicants to meet state and 
        professional standards.--The Secretary shall make grants under 
        this section only to eligible applicants that meet State and 
        professionally-recognized standards for the preparation of 
        special education and related services personnel, if the 
        purpose of the project is to assist personnel in obtaining 
        degrees.
          ``(3) Preferences.--In selecting recipients under this 
        section, the Secretary may--
                  ``(A) give preference to institutions of higher 
                education that are educating regular education 
                personnel to meet the needs of children with 
                disabilities in integrated settings and educating 
                special education personnel to work in collaboration 
                with regular educators in integrated settings; and
                  ``(B) give preference to institutions of higher 
                education that are successfully recruiting and 
                preparing individuals with disabilities and individuals 
                from groups that are underrepresented in the profession 
                for which they are preparing individuals.
  ``(h) Service Obligation.--
          ``(1) In general.--Each application for funds under 
        subsections (b) and (e), and to the extent appropriate 
        subsection (d), shall include an assurance that the applicant 
        will ensure that individuals who receive a scholarship under 
        the proposed project will subsequently provide special 
        education and related services to children with disabilities 
        for a period of 2 years for every year for which assistance was 
        received or repay all or part of the cost of that assistance, 
        in accordance with regulations issued by the Secretary.
          ``(2) Leadership preparation.--Each application for funds 
        under subsection (c) shall include an assurance that the 
        applicant will ensure that individuals who receive a 
        scholarship under the proposed project will subsequently 
        perform work related to their preparation for a period of 2 
        years for every year for which assistance was received or repay 
        all or part of such costs, in accordance with regulations 
        issued by the Secretary.
  ``(i) Scholarships.--The Secretary may include funds for 
scholarships, with necessary stipends and allowances, in awards under 
subsections (b), (c), (d), and (e).
  ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 1998 through 2002.

``SEC. 674. STUDIES AND EVALUATIONS.

  ``(a) Studies and Evaluations.--
          ``(1) In general.--The Secretary shall, directly or through 
        grants, contracts, or cooperative agreements, assess the 
        progress in the implementation of this Act, including the 
        effectiveness of State and local efforts to provide--
                  ``(A) a free appropriate public education to children 
                with disabilities; and
                  ``(B) early intervention services to infants and 
                toddlers with disabilities and infants and toddlers who 
                would be at risk of having substantial developmental 
                delays if early intervention services were not provided 
                to them.
          ``(2) Authorized activities.--In carrying out this 
        subsection, the Secretary may support studies, evaluations, and 
        assessments, including studies that--
                  ``(A) analyze measurable impact, outcomes, and 
                results achieved by State educational agencies and 
                local educational agencies through their activities to 
                reform policies, procedures, and practices designed to 
                improve educational and transitional services and 
                results for children with disabilities;
                  ``(B) analyze State and local needs for professional 
                development, parent training, and other appropriate 
                activities that can reduce the need for disciplinary 
                actions involving children with disabilities;
                  ``(C) assess educational and transitional services 
                and results for children with disabilities from 
                minority backgrounds, including--
                          ``(i) data on--
                                  ``(I) the number of minority children 
                                who are referred for special education 
                                evaluation;
                                  ``(II) the number of minority 
                                children who are receiving special 
                                education and related services and 
                                their educational or other service 
                                placement; and
                                  ``(III) the number of minority 
                                children who graduated from secondary 
                                and postsecondary education programs; 
                                and
                          ``(ii) the performance of children with 
                        disabilities from minority backgrounds on State 
                        assessments and other performance indicators 
                        established for all students;
                  ``(D) measure educational and transitional services 
                and results of children with disabilities under this 
                Act, including longitudinal studies that--
                          ``(i) examine educational and transitional 
                        services and results for children with 
                        disabilities who are 3 through 17 years of age 
                        and are receiving special education and related 
                        services under this Act, using a national, 
                        representative sample of distinct age cohorts 
                        and disability categories; and
                          ``(ii) examine educational results, 
                        postsecondary placement, and employment status 
                        of individuals with disabilities, 18 through 21 
                        years of age, who are receiving or have 
                        received special education and related services 
                        under this Act; and
                  ``(E) identify and report on the placement of 
                children with disabilities by disability category.
  ``(b) National Assessment.--
          ``(1) In general.--The Secretary shall carry out a national 
        assessment of activities carried out with Federal funds under 
        this Act in order--
                  ``(A) to determine the effectiveness of this Act in 
                achieving its purposes;
                  ``(B) to provide information to the President, the 
                Congress, the States, local educational agencies, and 
                the public on how to implement the Act more 
                effectively; and
                  ``(C) to provide the President and the Congress with 
                information that will be useful in developing 
                legislation to achieve the purposes of this Act more 
                effectively.
          ``(2) Consultation.--The Secretary shall plan, review, and 
        conduct the national assessment under this subsection in 
        consultation with researchers, State practitioners, local 
        practitioners, parents of children with disabilities, 
        individuals with disabilities, and other appropriate 
        individuals.
          ``(3) Scope of assessment.--The national assessment shall 
        examine how well schools, local educational agencies, States, 
        other recipients of assistance under this Act, and the 
        Secretary are achieving the purposes of this Act, including--
                  ``(A) improving the performance of children with 
                disabilities in general scholastic activities and 
                assessments as compared to nondisabled children;
                  ``(B) providing for the participation of children 
                with disabilities in the general curriculum;
                  ``(C) helping children with disabilities make 
                successful transitions from--
                          ``(i) early intervention services to 
                        preschool education;
                          ``(ii) preschool education to elementary 
                        school; and
                          ``(iii) secondary school to adult life;
                  ``(D) placing and serving children with disabilities, 
                including minority children, in the least restrictive 
                environment appropriate;
                  ``(E) preventing children with disabilities, 
                especially children with emotional disturbances and 
                specific learning disabilities, from dropping out of 
                school;
                  ``(F) addressing behavioral problems of children with 
                disabilities as compared to nondisabled children;
                  ``(G) coordinating services provided under this Act 
                with each other, with other educational and pupil 
                services (including preschool services), and with 
                health and social services funded from other sources;
                  ``(H) providing for the participation of parents of 
                children with disabilities in the education of their 
                children; and
                  ``(I) resolving disagreements between education 
                personnel and parents through activities such as 
                mediation.
          ``(4) Interim and final reports.--The Secretary shall submit 
        to the President and the Congress--
                  ``(A) an interim report that summarizes the 
                preliminary findings of the assessment not later than 
                October 1, 1999; and
                  ``(B) a final report of the findings of the 
                assessment not later than October 1, 2001.
  ``(c) Annual Report.--The Secretary shall report annually to the 
Congress on--
          ``(1) an analysis and summary of the data reported by the 
        States and the Secretary of the Interior under section 618;
          ``(2) the results of activities conducted under subsection 
        (a);
          ``(3) the findings and determinations resulting from reviews 
        of State implementation of this Act.
  ``(d) Technical Assistance to LEAS.--The Secretary shall provide 
directly, or through grants, contracts, or cooperative agreements, 
technical assistance to local educational agencies to assist them in 
carrying out local capacity-building and improvement projects under 
section 611(f)(4) and other LEA systemic improvement activities under 
this Act.
  ``(e) Reservation for Studies and Technical Assistance.--
          ``(1) In general.--Except as provided in paragraph (2) and 
        notwithstanding any other provision of this Act, the Secretary 
        may reserve up to one-half of one percent of the amount 
        appropriated under parts B and C for each fiscal year to carry 
        out this section.
          ``(2) Maximum amount.--For the first fiscal year in which the 
        amount described in paragraph (1) is at least $20,000,000, the 
        maximum amount the Secretary may reserve under paragraph (1) is 
        $20,000,000. For each subsequent fiscal year, the maximum 
        amount the Secretary may reserve under paragraph (1) is 
        $20,000,000, increased by the cumulative rate of inflation 
        since the fiscal year described in the previous sentence.
          ``(3) Use of maximum amount.--In any fiscal year described in 
        paragraph (2) for which the Secretary reserves the maximum 
        amount described in that paragraph, the Secretary shall use at 
        least half of the reserved amount for activities under 
        subsection (d).

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

``SEC. 681. FINDINGS AND PURPOSES.

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

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

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

``SEC. 683. COMMUNITY PARENT RESOURCE CENTERS.

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

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

  ``(a) In General.--The Secretary may, directly or through awards to 
eligible entities, provide technical assistance for developing, 
assisting, and coordinating parent training and information programs 
carried out by parent training and information centers receiving 
assistance under sections 682 and 683.
  ``(b) Authorized Activities.--The Secretary may provide technical 
assistance to a parent training and information center under this 
section in areas such as--
          ``(1) effective coordination of parent training efforts;
          ``(2) dissemination of information;
          ``(3) evaluation by the center of itself;
          ``(4) promotion of the use of technology, including assistive 
        technology devices and assistive technology services;
          ``(5) reaching underserved populations;
          ``(6) including children with disabilities in general 
        education programs;
          ``(7) facilitation of transitions from--
                  ``(A) early intervention services to preschool;
                  ``(B) preschool to school; and
                  ``(C) secondary school to postsecondary environments; 
                and
          ``(8) promotion of alternative methods of dispute resolution.

``SEC. 685. COORDINATED TECHNICAL ASSISTANCE AND DISSEMINATION.

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

``SEC. 686. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

                   TITLE II--MISCELLANEOUS PROVISIONS

 SEC. 201. EFFECTIVE DATES.

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

 SEC. 202. TRANSITION.

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

 SEC. 203. REPEALERS.

  (a) Part I.--Effective October 1, 1998, part I of the Individuals 
with Disabilities Education Act is hereby repealed.
  (b) Part H.--Effective July 1, 1998, part H of such Act is hereby 
repealed.
  (c) Parts C, E, F, and G.--Effective October 1, 1997, parts C, E, F, 
and G of such Act are hereby repealed.

                       Explanation of Amendments

    The sole amendment, other than the Riggs amendment in the 
nature of a substitute, that was accepted by the Committee was 
the Goodling amendment. The Goodling amendment made four 
changes to the bill. First, it amended section 612(a)(1), as it 
relates to prisoners, for reasons discussed below. Second, it 
made a technical clarification with respect to the application 
of the stay-put clause to section 615(k)(7) of the Act. Third, 
it defined the term ``substantial evidence'' for purposes of 
section 615(k) of the Act as meaning beyond a preponderance of 
the evidence. Finally, it amended section 616 of the Act as it 
relates to compliance, for reasons described below. The 
amendment in the nature of a substitute is explained in this 
report.

                                Purpose

    The purposes of the Individuals with Disabilities Education 
Act Amendments of 1997 are to clarify and strengthen the 
Individuals with Disabilities Education Act (IDEA) by providing 
parents and educators with the tools to:
          Preserve the right of children with disabilities to a 
        free appropriate public education;
          Promote improved educational results for children 
        with disabilities through early intervention, 
        preschool, and educational experiences that prepare 
        them for later educational challenges and employment;
          Expand and promote opportunities for parents, special 
        education, related services, regular education, and 
        early intervention service providers, and other 
        personnel to work in new partnerships at both the State 
        and local levels;
          Create incentives to enhance the capacity of schools 
        and other community-based entities to work effectively 
        with children with disabilities and their families, 
        through targeted funding for personnel training, 
        research, media, technology, and the dissemination of 
        technical assistance and best practices.

                            Committee Action

                         HEARINGS AND TESTIMONY

    The Subcommittee on Early Childhood, Youth and Families 
held two hearings to consider the review and authorization of 
the Individuals with Disabilities Education Act on February 4 
and 6, 1997.
    Testifying at the February 4, 1997 hearing were: Judith E. 
Heumann, Assistant Secretary, Office of Special Education and 
Rehabilitative Services, U.S. Department of Education, 
Washington, DC; Thomas R. Bloom, Inspector General, U.S. 
Department of Education, Washington, DC; Lou Barela, Director, 
Upper Solano County Special Education Local Plan Area, 
Fairfield, CA; Doris Husted, Parent, Albuquerque, NM; Dr. 
George Severns, Jr., Superintendent, Dover Area School 
District, Dover, PA; Phyllis Bertin, Director of Education, 
Windward School, White Plains, NY; Elisabeth Healey, School 
Director, Pittsburgh Board of Education, Pittsburgh, PA; and 
Lonnie Johns, Jacksonville Area Chamber of Commerce, 
Jacksonville, IL.
    Testifying at the February 6, 1997 hearing were: John 
Bukey, Legal Counsel, California School Boards Association, 
Sacramento, CA; Lillian M. Brinkley, Principal, Willard Model 
Elementary School, Norfolk, VA; Dr. Iris Metts, Superintendent, 
Christina School District, Newark, DE; Kevin Comerford, Chief 
of Police, Buffalo, NY for R. Gil Kerlikowske, Buffalo Police 
Commissioner; Gregory W. Harding, Chief Deputy Director for 
Support Services, Department of Corrections, Sacramento, CA; 
and Dr. Steven Steurer, Executive Director, Correctional 
Education Association, Lanham, MD.

    INTRODUCTION OF THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT 
               AMENDMENTS OF 1997 AND LEGISLATIVE ACTION

    The Individuals with Disabilities Education Act Amendments 
of 1997, H.R. 5 (originally entitled the ``IDEA Improvement Act 
of 1997,'' was introduced on Tuesday, January 7, 1997 by 
Chairman Bill Goodling (R-PA) and reported out of the Committee 
on Education and the Workforce on Wednesday, May 7, 1997 with 
amendments. H.R. 5, as amended, was ordered reported by a voice 
vote.

                  BACKGROUND AND NEED FOR LEGISLATION

    Congress established a State grant program for the 
Education of Handicapped Children under title VI of the 
Elementary and Secondary Education Amendments of 1966 (P.L. 89-
750). In 1970, Congress authorized the Education of the 
Handicapped Act (EHA) as title VI of P.L. 91-230. With the 
enactment of P.L. 91-230, the State grant program established 
in 1966 was redesignated as part B of the EHA.
    In 1975, Congress passed the Education for All Handicapped 
Children Act, P.L. 94-142. It amended part B, the State grant 
program in the EHA. P.L. 94-142 refined and expanded 
requirements for State participation in the State grant 
program. In accepting State grant funds, a State was required 
to provide a free appropriate public education (FAPE) to all 
children with disabilities in the State according to specific 
procedures and civil rights protections.
    From 1979 through 1994, a series of amendments to the EHA 
refined and increased in number, discretionary programs in 
personnel preparation, research, demonstration, and technical 
assistance. In 1986, the Handicapped Children's Protection Act, 
P.L. 99-372, was enacted. In amending part B of the EHA, P.L. 
99-372 authorized attorneys' fees for parents who prevail in 
due process proceedings and judicial actions against school 
districts. Also in 1986, P.L. 99-457 was enacted, creating a 
new part H in the EHA. Part H provides funds for State programs 
in early intervention services for infants and toddlers with 
disabilities from birth through two years of age. The EHA 
amendments of 1990, P.L. 101-476, renamed the statute as the 
Individuals with Disabilities Education Act (IDEA). In 1994, 
P.L. 103-382, the Improving America's Schools Act of 1994, 
eliminated the separate authorization for the chapter 1 
Handicapped Program and merged its authorization for funding 
with part B funding under the IDEA and gave school districts 
the discretion to remove children with disabilities to an 
interim alternative educational setting for up to 45 days when 
such children bring firearms to school.
    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. Educational achievement for children with 
disabilities, while improving, 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. 5, the Individuals with Disabilities 
Education Act Amendments of 1997, the Committee improves the 
Individuals with Disabilities Education Act (IDEA) through 
provisions that: (1) place the emphasis on what is best 
educationally for children with disabilities rather than on 
paperwork for paperwork's sake; (2) give professionals, 
especially teachers, more influence and flexibility in the 
delivery of education to children with disabilities, and give 
school administrators and policymakers lower costs; (3) enhance 
the input of parents of children with disabilities in the 
decision making that affects their child's education; (4) make 
schools safer and describe how school officials may discipline 
children with disabilities; and (5) consolidate and target 
discretionary programs to strengthen the capacity of America's 
schools to effectively serve children, including infants and 
toddlers, with disabilities.
    The Committee also makes it easier to understand and use 
the IDEA by simplifying its structure and the organization of 
provisions. The legislation alphabetizes definitions in section 
602; revises the formula when appropriations reach a trigger 
level in section 611; consolidates all State educational agency 
eligibility requirements in section 612 and all local 
educational agency (LEA) eligibility requirements in section 
613; groups evaluation and reevaluation, individualized 
education program, and placement provisions in section 614; and 
places all procedural safeguards requirements in section 615. 
Part H, the early intervention program for infants and 
toddlers, becomes part C. Other discretionary programs are 
condensed and consolidated into part D, with two authorized 
subparts including a new State Improvement program.

              Explanation of the Bill and Committee Views

    In its 22 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 outlying area to a 
free appropriate public education by law.
    The IDEA has been a very successful law. Prior to its 
implementation, approximately 1 million children with 
disabilities were denied education. The number of children with 
developmental disabilities in State institutions has declined 
by close to 90 percent. The number of young adults with 
disabilities enrolled in postsecondary education has tripled, 
and the unemployment rate for individuals with disabilities in 
their twenties is almost half that of their older counterparts.
    Despite this progress, the promise of the law has not been 
fulfilled for too many children with disabilities. Too many 
students with disabilities are failing courses and dropping out 
of school. Almost twice as many students with disabilities drop 
out as compared to students without disabilities. Of further 
concern, is the continued inappropriate placement of children 
from minority backgrounds and children with limited English 
proficiency in special education. In addition, school officials 
and others complain that the current law is unclear and focuses 
too much on paperwork and process rather than on improving 
results for children.
    This authorization is viewed by the Committee as an 
opportunity to review, strengthen, and improve IDEA to better 
educate children with disabilities and enable them to achieve a 
quality education by:
          (1) Strengthening the role of parents;
          (2) Ensuring access to the general education 
        curriculum and reforms;
          (3) Focusing on teaching and learning while reducing 
        unnecessary paperwork requirements;
          (4) Assisting educational agencies in addressing the 
        costs of improving special education and related 
        services to children with disabilities.
          (5) Giving increased attention to racial, ethnic, and 
        linguistic diversity to prevent inappropriate 
        identification and mislabeling;
          (6) Ensuring schools are safe and conducive to 
        learning; and
          (7) Encouraging parents and educators to work out 
        their differences by using nonadversarial means.
    In drafting the bill, the Committee was guided by the 
premise that, to achieve a quality education for children with 
disabilities, it should start with current law and build on the 
actions, experiences, information, facts, and research gathered 
over the life of the law, particularly in the last three years. 
Further, in developing these amendments the Committee 
distinguished between problems of implementation and problems 
with the law, and responded appropriately in addressing any 
issue raised.
    Through this legislation the Committee intends to encourage 
exemplary practices that lead to improved teaching and learning 
experiences for children with disabilities, and that in turn, 
for these children, result in productive independent adult 
lives, including employment. Through these efforts, the 
Committee intends to assist States in the implementation of 
early intervention services for infants and toddlers with 
disabilities and their families, and support the smooth and 
effective transition of these children to preschool.
    The Committee views the structure and substance of this 
legislation as critically important, if the Country is to see 
clearer understanding of, and better implementation and fuller 
compliance with, the requirements of IDEA.

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

Amendments to part A of the Individuals with Disabilities Education Act

            Definitions
    Section 602 of the Act consolidates the majority of the 
definitions in the Act and reorders them alphabetically. Most 
definitions in current law are retained, and where appropriate 
updated. For example the definitions of ``State educational 
agency'' and ``Local educational agency'' were amended to be 
consistent with the definition of these terms in title XIV of 
the Elementary and Secondary Education Act of 1965, as amended 
by the 1994 Improving America's Schools Act and term 
``intermediate educational unit'' has been replaced by the term 
``educational service agency'' and its definition, to reflect 
the more contemporary understanding of the broad and varied 
functions of such agencies.
    The bill amends the definition of ``related services'', by 
adding ``orientation and mobility services''. This change is 
not intended to reduce or alter the scope of related services 
or special education services that are available to children 
with disabilities, but merely to emphasize the importance of 
orientation and mobility services. Orientation and mobility 
services are generally recognized to be services provided to 
children who are blind or have visual impairments. However, it 
is important to keep in mind that children with other 
disabilities may also need instruction in traveling around 
their school, or to and from school. A high school aged child 
with a mental disability, for example, might need to be taught 
how to get from class to class so that he can participate in 
his inclusive program. The addition of orientation and mobility 
services to the list of identified related services is not 
intended to result in the denial of appropriate services for 
children with disabilities who do not have visual impairments 
or blindness.
    The bill retains the 13 disability categories. However, the 
bill expands the definition for service eligibility in part B 
called ``developmental delay'', to be used at State and local 
discretion, for children ages three through nine. The use of a 
specific disability category to determine a child's eligibility 
for special education and related services frequently has led 
to the use of the category to drive the development of the 
child's Individualized Education Program (IEP) and placement to 
a greater extent than the child's needs.
    The Committee believes that 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 part of a unified approach 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, and could 
actually reduce later referrals of children with disabilities 
to special education.
    The Committee wants to make clear that changing the 
terminology from ``serious emotional disturbance'' to ``serious 
emotional disturbance (hereinafter referred to as `emotional 
disturbance')'' in the definition of a child with a disability 
is intended to have no substantive or legal significance. It is 
intended strictly to eliminate the pejorative connotation of 
the term ``serious.'' It should in no circumstances be 
construed to change the existing meaning of the term under 34 
CFR 300.7(b)(9) as promulgated September 29, 1992.
            Policy letters and regulations section 607
    Section 607 maintains the requirements of current law that 
prescribe a 90 day public comment period for enacting proposed 
regulations under parts B and C, and establishes a baseline for 
regulations promulgated by the Secretary under the Act that 
provides protections to children with disabilities. The section 
also specifies that the Secretary not establish a rule required 
for compliance with, or eligibility under, this part without 
following the requirements of 5 U.S.C. 553. Section 607 also 
specifies that the Secretary shall, on a quarterly basis, 
publish in the Federal Register, and widely disseminate through 
various additional forms of communication, a list identifying 
the topic and other appropriate summary information, of 
correspondence from the Department of Education that describes 
its interpretation of IDEA or its regulations issued by the 
Department in the previous quarter. Furthermore, if the 
Secretary receives a written request regarding a policy, 
question, or interpretation under part B of IDEA, and 
determines that it raises an issue of general interest or 
applicability of national significance to the implementation of 
part B, the Secretary shall include a statement to that effect 
in any written response; and widely disseminate that response 
to SEAs, LEAs, parent and advocacy organizations, and other 
interested organizations subject to appropriate confidentiality 
laws. Not later thanone year after responding on such a matter, 
the bill directs the Secretary to issue written guidance on the policy, 
question, or interpretation through such means as a policy memorandum, 
notice of interpretation, or notice of proposed rulemaking.
    The bill requires that those written responses by the 
Secretary shall include an explanation that the Secretary's 
written response is provided as informal guidance and is not 
legally binding; and represents the interpretation by the 
Department of Education of the applicable statutory or 
regulatory requirements in the context of the facts presented.
    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 607 of the bill is not intended to prohibit 
the Secretary from answering such correspondence.
    The Committee believes the guidance in section 607 is 
consistent with the public notice and comment procedures of the 
Administrative Procedures Act and will provide all stake 
holders with a common frame of reference and expectation with 
regard to any particular written correspondence from the 
Secretary, its significance, and its future implications. With 
the enactment of section 607, such guidance should reduce 
substantially the degree and amount of misapplication or 
misinterpretation of Secretarial correspondence.

Amendments to part B of the Individuals with Disabilities Education Act

            Funding formula section 611
    Section 611 of the Act retains the disability child count-
based formula in current law until the appropriation for part B 
of the IDEA reaches $4,924,672,200. When this threshold funding 
level is reached, a change in the funding formula for 
distributing funds to States will be triggered. At that point, 
yearly child counts based on disability will no longer 
determine a State's allotment. When the threshold funding level 
is reached, a State's allotment will be based on two 
calculations, which would be added together to determine the 
State's allotment under the new formula: (1) the amount the 
State received in the year prior to the threshold amount being 
reached; and (2) the State's proportional share of funds that 
exceed that previous year's appropriation, based 85 percent on 
the State's census data for children from 3 through 21 (if the 
State provides FAPE to children of these ages), and 15 percent 
on the State's poverty rate. Distribution of part B funds 
within States will be on the same basis.
    The legislation caps the maximum increase for a State 
gaining from the change in formula and includes a floor for 
States receiving less under the change in formula. States would 
receive no more than 1.5% more than the total percent part B 
appropriations increase for that year. In addition, the State 
would receive no less than either 1.5% less than the total 
percent part B appropriations increase for that year or 90% of 
the total percentage increase, whichever is greater. No State 
will receive less than the amount it received in the prior 
year. In the year the new formula is triggered, the State 
minimum will become \1/3\ of one percent of the new formula 
funds.
    The Committee wishes to make clear that the change from a 
formula based on the number of children with disabilities to a 
formula based on census and poverty should in no way be 
construed to modify the obligation of educational agencies to 
identify and serve children with disabilities.
    Section 501 of P.L. 95-134, permitting consolidation of 
grants, would not apply to the outlying areas or freely 
associated States under this section. The purpose of this was 
to assure that entities 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.
    The Committee developed the change in formula 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 many children with 
disabilities. Therefore, Congress proposed to distribute 
Federal funds for special education services in order to 
encourage and reward States for serving eligible children. In 
the 22 years since then, the States have made excellent 
progress in identifying children with disabilities and 
providing them access to special education, and are now serving 
5.5 million children with disabilities or approximately 10 
percent of children aged 3 through 17. 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.
    Today, the growing problem is over identifying children as 
disabled when they might not be truly disabled. The challenge 
today is not so much how to provide access to special education 
services but how to appropriately provide educational services 
to children with disabilities in order to improve educational 
results for such children. As States consider this issue, more 
and more States are exploring alternatives for serving more 
children with learning problems in the regular educational 
classroom. But in doing so, they face the prospect of 
reductions in Federal funds, as long as funding is tied to 
child counts.
    While it is unlikely that individual educators ever 
identify children for the additional funding that such 
identification brings, the financial incentive reduces the 
proactive scrutiny that such referrals would receive if they 
did not have the additional monetarybenefit. It also reduces 
the scrutiny of children who might be moved back out of special 
education. In-State funding formulas that follow the current 
disability-based Federal child-count 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. The Committee is also cognizant, 
however, that in some areas under identification remains a 
problem, particularly for minority children.
    The Committee has squarely faced this problem by shifting, 
once the targeted threshold is reached, to a formula of which 
85 percent of additional funds is based on the total school age 
population and 15 percent is based on the poverty statistic for 
children in a State. This system was encouraged in the 1994 
report of the Department of Education's Inspector General. The 
Inspector General noted: ``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 added 
a poverty factor to the formula because there is a link between 
poverty and certain forms of disability. This concept was also 
encouraged by the Inspector General's report.
    Based on the significant progress that has been made in 
providing access to special education and concerns about the 
over-identification of children as disabled, the Committee 
believes this new formula will address many of these concerns. 
This change will enable States to undertake good practices for 
addressing the learning needs of more children in the regular 
classroom without the unnecessary categorization or labeling 
thereby risking the loss of Federal funds. Changing the Federal 
formula may also motivate States to change their own formulas 
for distributing State aid in ways that eliminate inappropriate 
financial incentives for referring children to special 
education.
    The bill continues to authorize that States may retain a 
portion of their State allotments with certain changes 
effective for fiscal year 1998. First, the 5 percent for 
administrative purposes is capped at the fiscal year 1997 
level, with future annual increases limited to the lesser of 
the rate of inflation or the rate of Federal appropriation 
increases. The remaining 20 percent of the State's share of its 
part B allotment is capped in the same manner. Any excess above 
inflation in any year goes into a new one-year fund that must 
be distributed that year through grants to LEAs for local 
systemic improvement activities or for specific direct 
services. In the next year, the amounts expended for such 
activities must be distributed to LEAs based on the 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 the 
Interior's programs.
            State eligibility section 612
    Section 612 establishes the conditions of State eligibility 
for part B funds. Many provisions are retained from current 
law. Other provisions have been added to promote a better 
understanding of, and more consistent compliance with, part B 
of the statute.
    Provisions retained from current law are obligations of a 
State to: establish a full educational opportunity goal and a 
timetable for meeting it; comply with the evaluation and 
confidentiality, IEP, and procedural safeguards provisions; 
require that private placements made by public agencies meet 
State standards; not commingle part B funds with State funds; 
seek public comment prior to adopting policies and procedures 
necessary to comply with this section; and meet LEA eligibility 
requirements if the SEA provides direct services. In addition, 
section 612 retains the opportunity of a State to apply for a 
waiver from the supplement not supplant provision, when it can 
demonstrate, through clear and convincing evidence, that it is 
providing a free appropriate public education to all children 
with disabilities in the State.
    Other provisions in section 612 taken from current law are: 
(1) the construction clause pertaining to the fact that part B 
does not permit a State to reduce medical or other assistance 
or alter eligibility under titles V and XIX of the Social 
Security Act; and (2) the ``by-pass'' provision that allows the 
Secretary to make arrangements to provide services to children 
with disabilities in private schools, if a State is prohibited 
by State law from providing for the participation of such 
children.
    Section 612 contains clarifications of current law. To 
receive part B funds, States are to make available a free 
appropriate public education to all children with disabilities, 
including children with disabilities who have been suspended or 
expelled from school. States must also conduct child find 
activities, which include identification of children in private 
schools and a process to determine which children are in need 
of special education and receiving it (while allowing 
identified children not to be labeled with a disability 
category).
    The bill provides that a State may also opt not to serve 
individuals who, in the educational placement prior to their 
incarceration in adult correctional facilities, were not 
actually identified as being a child with a disability under 
section 602(3) or did not have an individualized education 
program under this part. The Committee means to set the point 
in time when it is determined whether a child has been 
identified or had an IEP. This makes clear that services need 
not be provided to all children who were at one time determined 
to be eligible under this part. The Committee does not intend 
to permit the exclusion from services under part B of children 
who had been identified as children with disabilities and had 
an IEP, but who had left school prior to their incarceration. 
In otherwords, if a child had an IEP in his or her last 
educational placement, the child has an IEP for purposes of this 
provision. The Committee added language to make clear that children 
with disabilities aged 18 through 21, who did not have an IEP in their 
last educational placement but who had actually been identified should 
not be excluded from services.
    The bill amends the provisions on least restrictive 
environment (redesignated as section 612(a)(5)) to ensure that 
the State's funding formula does not result in placements that 
violate the requirement that children be placed in the least 
restrictive environment.
    The Committee supports the longstanding concept of the 
least restrictive environment, including the policy that, to 
the maximum extent appropriate, children with disabilities are 
educated with children who are nondisabled 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 special education 
and related services or supplementary aids and services cannot 
be achieved satisfactorily.
    The Committee supports the longstanding policy of a 
continuum of alternative placements designed to meet the unique 
needs of each child with a disability. Placement options 
available include instruction in regular classes, special 
classes, special schools, home instruction, and instruction in 
hospitals and institutions. For disabled children placed in 
regular classes, supplementary aids and services and resource 
room services or itinerant instruction must also be offered as 
needed.
    Section 612 also includes an obligation on a State to 
require LEAs to participate in transition planning conferences 
for toddlers with disabilities about to enter preschools; and 
to provide a proportionate amount of IDEA funds to private 
schools in which children with disabilities are enrolled, and, 
to the extent consistent with law, at State discretion, provide 
services on the premises of private, including parochial, 
schools.
    Section 612 also includes several other factors that affect 
possible parental reimbursement for unilateral private 
placements of their child. Parents must give notice about their 
concerns and intent at the most recent IEP meeting or written 
notice ten days before they transfer the child to the private 
school. Prior to removal of the child from the public school, 
if the public agency informed the parents of its intent to 
evaluate the child (including a statement of the purpose of the 
evaluation that was appropriate and reasonable), the parents 
must make the child available for such an evaluation. If the 
parents do not comply with notice and evaluation requests or 
engage in unreasonable actions, hearing officers and courts may 
reduce or deny reimbursement to parents for unilateral private 
placements. The bill specifies that reduction or denial of 
reimbursement must not occur for parents' failure to comply 
with these requirements if parents are illiterate and cannot 
read English; compliance would result in physical or serious 
emotional harm to the child; the school prevented the parents 
from complying; or the parents had not received notice with 
regard to the potential consequences of noncompliance.
    The bill strengthens the requirements on ensuring provision 
of services by noneducational agencies while retaining a single 
line of responsibility. The chief executive officer of a State 
must develop and implement interagency agreements and 
reimbursement mechanisms to ensure that educational agencies 
have access to funding from non-educational public agencies 
that are responsible for services that are also necessary for 
ensuring a free appropriate public education to children with 
disabilities.
    A provision is added to the Act to strengthen the 
obligation to ensure that all services necessary to ensure a 
free appropriate public education are provided through the 
coordination of public educational and non-educational 
programs. This subsection is meant to reinforce two important 
principles: (1) that the State agency or LEA responsible for 
developing a child's IEP can look to non-educational agencies, 
such as Medicaid, to pay for or provide those services they 
(the non-educational agencies) are otherwise responsible for; 
and (2) that the State agency or LEA remains responsible for 
ensuring that children receive all the services described in 
their IEPs in a timely fashion, regardless of whether another 
agency will ultimately pay for the services.
    The Committee places particular emphasis in the bill on the 
relationship between schools and the State Medicaid Agency in 
order to clarify that health services provided to children with 
disabilities who are Medicaid-eligible and meet the standards 
applicable to Medicaid, are not disqualified for reimbursement 
by Medicaid agencies because they are provided services in a 
school context in accordance with the child's IEP.
    The bill makes a number of changes to clarify the 
responsibility of public school districts to children with 
disabilities who are placed by their parents in private 
schools. These changes should resolve a number of issues that 
have been the subject of an increasing amount of litigation in 
the last few years. First, the bill specifies that the total 
amount of money that must be spent to provide special education 
and related services to children in the State with disabilities 
who have been placed by their parents in private schools is 
limited to a proportional amount (that is, the amount 
consistent with the number and location of private school 
children with disabilities in the State) of the Federal funds 
available under part B. Second, the bill specifies that school 
districts may provide the special education and related 
services funded under part B on the premises of private, 
including parochial, schools. This provision is designed to 
implement the principle underlying the ruling of the Supreme 
Court in Zobrest v. Catalina Foothills School Dist. that it was 
not an ``entanglement'' violation of the First Amendment to 
provide a sign interpreter paid for with IDEA funds to a deaf 
student at his parochial school. Third, the bill clarifies that 
the child-find, identification, and evaluation provision of 
section 612(a)(3) applies to children placed by their parents 
in private schools. Comparable language is also included in the 
child-find provision itself to make it clear that this 
obligation is independent from the participation requirements 
addressed in section 612(a)(10)(A).
    Section 612 also specifies that parents may be reimbursed 
for the cost of a private educational placement under certain 
conditions (i.e., when a due process hearing officer or judge 
determines that a public agency had not made a free appropriate 
public education available to the child, in a timely manner, 
prior to the parents enrolling the child in that placement 
without the public agency's consent). Previously, the child 
must have had received special education and related services 
under the authority of a public agency.
    Section 612, as current law, requires that a State have in 
effect a Comprehensive System of Personnel Development (CSPD) 
that is designed to ensure an adequate supply of qualified 
personnel, including the establishment of procedures for 
acquiring and disseminating significant knowledge derived from 
educational research and for adopting, where appropriate, 
promising practices, materials, and technology. The bill 
requires the State to coordinate CSPD requirements with the 
personnel sections of a State improvement plan under part D, if 
the State has such a plan, so the State only has to meet one 
set of requirements for both purposes.
    With regard to personnel standards, the bill adds two 
provisions to the standards in current law. Paraprofessionals 
and assistants must be appropriately trained and supervised in 
accordance with State law, regulations, or written policy in 
order to assist in the provision of special education and 
related services. In implementing the personnel standards 
requirements, a State may adopt a policy that includes a 
requirement that LEAs make an ongoing good-faith effort to 
recruit and hire appropriately and adequately trained personnel 
to provide special education and related services to children 
with disabilities, including, in a geographic area of the State 
where there is a shortage of such personnel, the most qualified 
individuals available who are making satisfactory progress 
toward completing applicable course work necessary to meet 
State standards within three years.
    With regard to section 612(a)(16), the Committee wishes to 
make clear that its requirements are not intended to prevent 
the integration of performance goals and indicators for 
children with disabilities into the performance goals and 
indicators for nondisabled children, so that SEAs and LEAs can 
be held accountable for all children.
    Section 612(a)(19) specifies that a State must maintain its 
level of expenditures for special education and related 
services for children with disabilities from one year to the 
next. Calculations of the level of expenditures is not to 
include Federal or local dollars. Reductions from this level 
are allowed through a waiver from the Secretary for exceptional 
or uncontrollable circumstances such as a natural disaster or a 
precipitous and unforeseen decline in the State's financial 
resources. In the absence of a waiver situation, if a State 
fails to maintain its level of expenditures as required in this 
section, the Secretary shall reduce the State's allocation for 
any fiscal year following the year of the failure to maintain 
the level of effort required, by the same amount by which the 
State fails to meet the requirement.
    The bill requires the Secretary, by regulation, to 
establish procedures for determining whether to grant a waiver 
under section 612(a)(19)(E) within one year of enactment based 
on compliance with the obligations of part B. These procedures 
are to include objective criteria and consideration of the 
results of compliance reviews of the State conducted by the 
Secretary. The Committee intends this provision to be a real 
mechanism for waivers under this provision for States that are 
complying with their obligations under this Act.
    With regard to a State's advisory panel, in section 
612(a)(21), the Committee has added more detail relating to the 
panel's duties and added representation from private and public 
charter schools and from the State's juvenile and adult 
corrections agencies.
    Section 612 contains several new provisions. It requires a 
State to establish performance goals for children with 
disabilities and to develop indicators to judge such children's 
progress. Any State that has a State improvement plan under 
part D must revise it based on information it obtains from the 
assessment of such progress. It requires that children with 
disabilities participate in State and districtwide assessments 
of student progress, with or without accommodations as 
appropriate for the child. By July 1, 2000, for children that 
cannot participate in such assessments, alternative assessments 
must be developed and conducted. The State must report to the 
public on the assessment performance of children with 
disabilities with the same frequency and detail it reports on 
the performance of nondisabled children, including the number 
participating in regular assessments and the number 
participating in alternative assessments. Data related to 
children with disabilities must be disaggregated. Further, the 
section requires States to determine if there is a 
disproportionate number of long-term suspensions and expulsions 
of disabled children and if so to take appropriate action and 
to modify policies and procedures in order to be consistent 
with the Act.
    The section retains the provision in current law requiring 
that the SEA have general supervisory authority over 
educational programs for children with disabilities, but 
provides that the Governor (or another individual pursuant to 
State law), consistent with State law, may assign to any public 
agency in the State the responsibility of ensuring that the 
part B requirements are met with respect to children with 
disabilities who are convicted as adults under State law and 
are incarcerated in adult prisons. In addition, the provisions 
requiring participation of students with disabilities in 
Statewide assessments will not apply, the transition services 
requirements will not apply to students whose eligibility under 
IDEA will terminate before their release from prison, and the 
IEP team may modify a student's IEP/placement if the State has 
a bona fide security or compelling penological interest that 
cannot otherwise be accommodated. These changes, however, do 
not affect the student's eligibility for services under IDEA. 
Neither do they affect students who are in juvenile facilities.
    The Act specifies that if a State already has on file with 
the Secretary policies and procedures that demonstrate that it 
meets any requirement of Section 612, it shall be treated by 
the Secretary as meeting that requirement, and that State 
applications need be submitted only once, and remain in effect, 
until the State submits modifications it deems necessary. 
Further, the Secretary may require a State to modify its 
application to the extent necessary to ensure compliance if the 
Act or its regulations are amended, or thereis a new 
interpretation by a Federal Court or the State's highest court or an 
official Department of Education finding of noncompliance with Federal 
law or regulations. These modifications would be developed and 
submitted subject to the same process requirements as the original 
plan.
            Local educational agency eligibility section 613
    Section 613 consolidates LEA eligibility requirements, 
which if met, make an LEA eligible for part B funding. The 
Committee believes that these amendments will promote a better 
understanding of and more consistent compliance with part B of 
the IDEA.
    In section 613, the following provisions are retained 
without substantive alteration: conditions associated with 
notice of LEA or State agency ineligibility; compliance with 
part B of the IDEA and State requirements associated with it; 
consequences connected to direct services by the SEA when an 
LEA cannot or does not provide a free appropriate public 
education to children with disabilities within its 
jurisdiction; and the conditions associated with the joint 
establishment of eligibility, except that the mandatory 
obligation on an LEA eligible for less than $7,500 to 
consolidate with another LEA is deleted.
    Section 613 maintains the requirement that LEAs must 
provide information to the SEA so that the SEA will be able to 
carry out its responsibilities. A specific reference is added 
to this provision regarding information that must be provided 
by the LEA so that the SEA can comply with the CSPD and 
personnel standards requirements.
    The Committee also has included several modifications to 
current law in section 613. LEAs are required to submit an 
application only once to the SEA, instead of once every three 
years as under current regulations. Additional information may 
be required by the SEA when there are: amendments to the Act or 
its Federal regulations; new interpretations of either the Act 
or its regulations by Federal or State courts; or an official 
finding of noncompliance with Federal or State law or 
regulations. In these instances, the SEA may require an LEA to 
modify its application only to the extent necessary to ensure 
the LEA's compliance with part B of IDEA. This section also 
explicitly requires that an LEA make available to parents of 
children with disabilities and the general public all documents 
pertaining to the LEA's eligibility.
    This section of the bill maintains the current supplement 
not supplant and maintenance of effort obligations on LEAs, 
except that LEAs are required to include only local funds 
expended for special education and related services in 
determining whether the LEA has maintained its effort. The bill 
includes a local ``maintenance of effort'' provision to ensure 
that the level of expenditures from State and local funds for 
the education of children with disabilities within each LEA 
does not drop below the level of such expenditures for the 
preceding year. However, the Committee recognizes that there 
are times when appropriate exceptions to this rule must be 
made. Thus, the bill includes four specific exceptions:
          (1) The voluntary departure, by retirement or 
        otherwise, or departure for just cause, of special 
        education personnel who are paid at or near the top of 
        the agency's salary scale. This exception is included 
        in recognition that, in some situations, when higher-
        salaried personnel depart from their positions in 
        special education, they are replaced by qualified, 
        lower-salaried staff. In such situations, as long as 
        certain safeguards are in effect, the LEA should not be 
        required to maintain the level of the higher-salaried 
        departing personnel. In order for an LEA to invoke this 
        exception, the agency must ensure that such voluntary 
        retirement or resignation and replacement are in full 
        conformity with existing school board policies in the 
        agency, with the applicable collective bargaining 
        agreement that is in effect at the time, and with 
        applicable State statutes.
          (2) A decrease in the enrollment of children with 
        disabilities.
          (3) The end of an agency's responsibility to provide 
        an exceptionally costly program to a child with a 
        disability because the child has left the agency's 
        jurisdiction, no longer requires such a program, or has 
        aged-out with respect to the agency's responsibility.
          (4) The end of unusually large expenditures for long 
        term purchases such as equipment or construction.
    Section 613 also provides that in any fiscal year for which 
amounts appropriated under 611 exceed $4.1 billion, an LEA may 
treat, as local funds, up to 20 percent of the funds it 
receives under part B that exceed the amount it received in the 
previous fiscal year, effectively permitting local schools to 
reduce the level of local expenditures for special education 
and related services. This section gives a State the authority 
to prevent an LEA from reducing its local level of effort when 
an LEA has been cited by the SEA as failing to substantially 
comply with the Act. The Committee does not intend that the 
Secretary could find an SEA out of compliance based solely on 
the fact that LEAs in the State have reduced their effort under 
this provision.
    New provisions in section 613 give LEAs increased 
flexibility in the use of part B funds. Section 613(a)(4)(A) 
allows an LEA to use part B funds for 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 IEP, even if one or more nondisabled children 
benefit from those services. In addition, section 613(g) allows 
an LEA, if granted the authority by the State, to use part B 
funds to permit a public school within the jurisdiction of the 
LEA to design, implement, and evaluate a school-based 
improvement plan that is consistent with the purposes and 
activities described under the State Program Improvement Grant 
program under part D of these amendments. A school-based 
improvement plan must be designed to improve educational and 
transitional results for all children, consistent with section 
613(a)(4)(A). The section also authorizes LEAs to use part B 
funds for school-wide programs, except that the amount of part 
B funds that may be used is limited to the number of disabled 
children in the school multiplied by the per child allotment.
    Section 613 contains two provisions concerning how charter 
schools can use part B funds to serve children with 
disabilities. First, charter schools that are LEAs may not be 
required to apply for part B funds jointly with other LEAs 
unless State law specifies otherwise. Second, in situations 
where charter schools are within an LEA, the bill directs LEAs 
to serve children with disabilities attending charter schools 
in the same manner as it serves children with disabilities in 
its other schools and directs LEAs to provide part B funds to 
charter schools in the same manner they provide such funds to 
other schools. The Committee expects that charter schools will 
be in full compliance with Part B.
    Section 613 also provides that the State may require that a 
local educational agency include in the records of a child with 
a disability a statement of any current or previous 
disciplinary action that has been taken against the child and 
transmit such statement to the same extent that such 
disciplinary information is included in, and transmitted with, 
the student records of nondisabled children. The statement may 
include a description of any behavior engaged in by the child 
that required disciplinary action, a description of the 
disciplinary action taken, and any other information that is 
relevant to the safety of the child and other individuals 
involved with the child. If the State adopts such policy, and 
the child transfers from one school to another, the 
transmission of any of the child's records must include both 
the child's current individualized education program and any 
such statement of current or previous disciplinary action that 
has been taken against the child.
            Evaluations, eligibility determinations, IEPs, and 
                    placements section 614
    The bill consolidates in section 614 all interrelated 
provisions regarding the evaluation and reevaluation of 
children with disabilities and the development, review, and 
revision of individualized education programs (IEPs) for these 
children. Most of these provisions are current law, as it is 
expressed in statute, regulations, and other regulatory 
guidance and policies from the U.S. Department of Education. 
The Committee anticipates that the consolidation of these 
provisions in one section, and the clarification of procedural 
and administrative requirements associated with them, will 
reduce the burdens imposed by the interpretations of current 
law and make the requirements more understandable. The 
Committee expects that these particular amendments will 
facilitate State and local implementation of, and compliance 
with, these provisions.
    Provisions on evaluation in section 614 codify the 
requirement that a full and individual initial comprehensive 
evaluation must be conducted before the provision of special 
education and related services; that the purposes of the 
initial evaluation are to determine whether a child is a child 
with a disability, and to determine the child's specific 
educational needs. The bill specifies that parents must provide 
informed consent before the initial evaluation of a child, but 
that such consent shall not be construed as consent for 
placement for the receipt of special education and related 
services. If a child's parents refuse consent for evaluation, 
an LEA may continue to pursue an evaluation by using the 
mediation and due process procedures under section 615, except 
to the extent inconsistent with State law relating to parental 
consent.
    Reevaluations are to be conducted if conditions warrant a 
reevaluation or if the child's parents or teacher requests a 
reevaluation, but at least once every three years. Informed 
parental consent also must be obtained for reevaluations, 
except that such informed consent need not be obtained if the 
LEA can demonstrate that it has taken reasonable steps to 
obtain consent and the child's parents have failed to respond.
    The bill requires that, in conducting evaluations, the LEA: 
(1) use a variety of assessment tools and strategies to gather 
relevant functional and developmental information, including 
information from the child's parents, to establish the child's 
eligibility and to determine the content of the child's IEP, 
including information relating to enabling the child to be 
involved in and progress in the general education curriculum; 
(2) not use any single procedure as the sole criterion for 
determining a child's eligibility or for determining an 
appropriate educational program for the child; and (3) use 
technically sound instruments that may assess the relative 
contribution of cognitive and behavioral factors, in addition 
to physical or developmental factors.
    In addition, the bill requires an LEA to ensure that: (1) 
tests and other evaluation materials used to assess a child are 
selected and administered so as not to be racially or 
culturally discriminatory, and are administered in the child's 
native language or other mode of communication, unless it is 
clearly not feasible to do so; (2) any standardized tests given 
to the child have been validated for the specific purpose for 
which they are used; are administered by trained and 
knowledgeable personnel; and are administered in accordance 
with the instructions provided by the producers of such tests; 
(3) the child is assessed in all areas of suspected disability; 
and (4) assessment tools and strategies provide relevant 
information that directly assists persons in determining the 
educational needs of the child. These requirements reflect 
current policy contained in current law and regulations, but 
now for the first time, the bill codifies them in one section 
of statute.
    The Committee intends that professionals, who are involved 
in the evaluation of a child, give serious consideration at the 
conclusion of the evaluation process 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 previously received proper academic 
support. Such a child often is identified as learning disabled, 
because the child has not been taught, in an appropriate or 
effective manner for the child, the core skill of reading. 
Other cases might include children who have limited English 
proficiency. Therefore, in making the determination of a 
child's eligibility, the bill states that a child shall not be 
determined to be a child with a disability if the determinant 
factor for such a determination is lack of instruction in 
reading or math or limited English proficiency. The Committee 
believes this provision will lead to fewer children being 
improperly included in special education programs where their 
actual educational difficulties stem from another cause and 
that this will lead schools to focus greater attention on these 
subjects in the early grades.
    The bill specifies that the determination of a child's 
eligibility is to be made by a qualified team of professionals 
and the child's parents. The bill requires that a copy of the 
evaluation report and the documentation of the child's 
eligibility determination be given to the child's parents.
    One of the most significant changes in the bill relates to 
how the evaluation process should be viewed. For example, over 
the years, the required three year reevaluation has become a 
highly paperwork-intensive process, driven as much by concern 
for compliance with the letter of the law, as by the need for 
additional evaluation information about a child. The Committee 
believes that a 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 should not be 
saddled with associated expenses unnecessarily. If there is no 
need to collect additional information about a child's 
continuing eligibility for special education, any necessary 
evaluation activities should focus on collecting information 
about how to teach and assist the child in the way he or she is 
most capable of learning.
    Thus, provisions in the bill require that existing 
evaluation data on a child be reviewed to determine if any 
other data are needed to make decisions about a child's 
eligibility and services. If it is determined by the IEP Team 
and other qualified professionals that additional data are not 
needed, the parents must be so notified of the determination 
that no additional data are needed, the reasons for it, and of 
the parents' right to still request an evaluation. Unlike 
current law, however, no further evaluations will be required 
at that time unless requested by the parents.
    To assist in improved compliance with the IEP provisions, 
the Committee placed all provisions pertaining to the IEP, 
including the definitions of the IEP and the IEP Team, in 
section 614(d). The definition of the Individualized Education 
Program (IEP) includes all of the required elements of an IEP, 
beginning with a statement of a child's present levels of 
educational performance, including how the child's disability 
affects the child's involvement and progress in the general 
education curriculum, or for a preschool child with a 
disability, how the child's disability affects the child's 
participation in appropriate activities. The IEP should also 
address the unique needs of the child that arise out of their 
disability that must be addressed in order for the child to 
progress in the general education curriculum, such as the need 
of a blind child to read Braille, or of a cognitively-disabled 
child to receive transportation training (i.e., how to use 
public transportation). The Committee wishes to emphasize that, 
once a child has been identified as being eligible for special 
education, the connection between special education and related 
services and the child's opportunity to experience and benefit 
from the general education curriculum should be strengthened. 
The majority of children identified as eligible for special 
education and related services are capable of participating in 
the general education curriculum to varying degrees with some 
adaptations and modifications. This provision is intended to 
ensure that children's special education and related services 
are in addition to and are affected by the general education 
curriculum, not separate from it.
    The new emphasis on participation in the general education 
curriculum is not intended by the Committee to result in major 
expansions in the size of the IEP of dozens of pages of 
detailed goals and benchmarks or objectives in every curricular 
content standard or skill. The new focus is intended to produce 
attention to the accommodations and adjustments necessary for 
disabled children to access the general education curriculum 
and the special services which may be necessary for appropriate 
participation in particular areas of the curriculum due to the 
nature of the disability.
    Specific day to day adjustments in instructional methods 
and approaches that are made by either a regular or special 
education teacher to assist a disabled child to achieve his or 
her annual goals would not normally require action by the 
child's IEP Team. However, if changes are contemplated in the 
child's measurable annual goals, benchmarks, or short term 
objectives, or in any of the services or program modifications, 
or other components described in the child's IEP, the LEA must 
ensure that the child's IEP Team is reconvened in a timely 
manner to address those changes.
    The bill requires that a child's IEP include a statement of 
measurable annual goals, including benchmarks or short-term 
objectives. The Committee views this requirement as crucial. It 
will help parents and educators determine if the goals can 
reasonably be met during the year, and as important, allow 
parents to be able to monitor their child's progress. The bill 
requires that annual goals included in a child's IEP relate to 
``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 education curriculum.'' This language should not 
be construed to be a basis for excluding a child with a 
disability who is unable to learn at the same level or rate as 
nondisabled children in an inclusive classroom or program. It 
is intended to require that the IEP's annual goals focus on how 
the child's needs resulting from his or her disability can be 
addressed so that the child can participate, at the 
individually appropriate level, in the general curriculum 
offered to all students.
    Prior to the enactment of P.L. 94-142 in 1975, the 
opportunity and inclination to educate children with 
disabilities was often in separate programs and schools away 
from children without disabilities. The law and this bill 
contain a presumption that children with disabilities are to be 
educated in regular classes. Therefore, the legislation 
requires that the IEP include an explanation of the extent, if 
any, to which a child with a disability will not participate 
with nondisabled children in the regular class and in the 
general education curriculum including extra-curricular and 
non-academic activities.
    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, an explanation of that 
decision will need, at a minimum, to be stated as part of the 
child's IEP.
    Children with disabilities must be included in State and 
district-wide assessments of student progress with individual 
modifications and accommodations as needed. Thus, the bill 
requires that the IEP include a statement of any individual 
modifications in the administration of State and districtwide 
assessments. The Committee knows that excluding children with 
disabilities from these assessments severely limits and in some 
cases prevents children with disabilities, through no fault of 
their own, from continuing on to post-secondary education. The 
bill requires that if the IEP team determines that the child's 
performance cannot appropriately be assessed with the regular 
education assessments, even with individual modifications, the 
IEP must include a statement of why the assessment is not 
appropriate and alternative assessments must be made available. 
The Committee reaffirms the existing Federal law requirement 
that children with disabilities participate in State and 
district-wide assessments. This will assist parents in judging 
if their child is improving with regard to his or her academic 
achievement, just as the parents of nondisabled children do.
    As under current law, a child's IEP must include 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. The Committee intends that, while 
teaching and related services methodologies or approaches are 
an appropriate topic for discussion and consideration by the 
IEP Team during IEP development or annual review, they are not 
expected to be written into the IEP. Furthermore, the Committee 
does not intend that changing particular methods or approaches 
necessitates an additional meeting of the IEP Team. 
Additionally, the Committee is aware of, and endorses, the 
provision in Section 300.350 of the current regulations 
relating to personal accountability. That regulation provides 
that each public agency must provide special education and 
related services to a child with a disability in accordance 
with an IEP. However, part B does not require that any agency, 
teacher, or other person be held accountable if a child does 
not achieve the growth projected in the annual goals and 
objectives.
    The location where special education and related services 
will be provided to a child influences decisions about the 
nature and amount of these services and when they should be 
provided to a child. For example, 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 
regular educational program. For this reason, in the bill the 
Committee has added ``location'' to the provision in the IEP 
that includes ``the projected date for the beginning of 
services and modifications, and the anticipated frequency, 
location, and duration of those services.''
    The bill requires that the IEP include, beginning at age 
fourteen, ``a statement of the transition service needs of the 
child under the applicable components of the child's IEP that 
focuses on the child's courses of study (such as participation 
in advanced placement courses or a vocational education 
program)''. The purpose of this requirement is to focus 
attention on how the child's educational program can be planned 
to help the child make a successful transition to his or her 
goals for life after secondary school. This provision is 
designed to augment, and not replace, the separate transition 
services requirement, under which children with disabilities 
beginning no later than age sixteen receive transition services 
including instruction, community experiences, the development 
of employmentand other post-school objectives and, when 
appropriate, independent living skills and functional vocational 
evaluation. For example, for a child whose transition goal is a job, a 
transition service could be teaching the child how to get to the job 
site on public transportation.
    Current law is not clear on what is required when a child 
with a disability attains the age of majority. In order to 
clarify the situation, the IEP definition in the bill includes 
a statement that the child has been informed of his or her 
rights under part B, if any, that will transfer to the child 
when he or she attains the age of majority. 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. This transfer of rights is also addressed under section 
615(m) in the bill.
    Additionally, the bill requires that a child's IEP include 
a statement of how the child's progress toward the annual goals 
will be measured and how the child's parents will be regularly 
informed of the child's progress toward those goals (by such 
means as report cards) as often as parents are informed of 
their nondisabled children's progress. The Committee believes 
that informing parents of children with disabilities as often 
as other parents will, in fact, reduce the cost of informing 
parents of children with disabilities and facilitate more 
useful feedback on their child's performance. One method 
recommended by the Committee would be by providing an IEP 
report card with the general education report card, if the 
latter is appropriate and provided for the child.
    An IEP report card could also be made more useful by 
including checkboxes or equivalent options that enable the 
parents and the special educator to review and judge the 
performance of the child.
    An example would be to state a goal or benchmark on the IEP 
report card and rank it on a multi-point continuum. The goal 
might be, ``Ted will demonstrate effective literal 
comprehension.'' The ranking system would then state the 
following, as indicated by a checkbox: No progress; some 
progress; good progress; almost complete; completed. Of course, 
these concepts would be used by the school and the IEP Team 
when appropriate. This example is not intended to indicate the 
Committee's preference for a single means of compliance with 
this requirement.
    The bill's definition of the Individualized Education 
Program (IEP) includes the parents of a child with a 
disability; at least one regular education teacher of such 
child (if the child is, or may be, participating in the regular 
education environment); at least one special education teacher, 
or where appropriate, at least one special education provider 
of such child; a representative of the local educational agency 
who is (a) qualified to provide, or supervise the provision of, 
specially designed instruction to meet the unique needs of 
children with disabilities; (b) knowledgeable about the general 
curriculum; and (c) knowledgeable about the availability of 
resources of the local educational agency; an individual who 
can interpret the instructional implications of evaluation 
results, who may be a member of the team; at the discretion of 
the parent or the agency, other individuals who have knowledge 
or special expertise regarding the child, including related 
services personnel as appropriate; and whenever appropriate, 
the child with a disability. Very often, regular education 
teachers play a central role in the education of children with 
disabilities. In that regard the bill provides that regular 
education teacher participate on the IEP Team, but this 
provision is to be construed in light of the bill's proviso 
that the regular education teacher, to the extent appropriate, 
participate in the development of the IEP of the child. The 
Committee recognizes the reasonable concern that the provision 
including the regular education teacher might create an 
obligation that the teacher participate in all aspects of the 
IEP Team's work. The Committee does not intend that to be the 
case and only intends it to be to the extent appropriate. The 
Committee wishes to emphasize that the ``support'' for school 
personnel, that is stated in the child's IEP is that support 
that will assist them to help a particular child progress in 
the general education curriculum.
    Related services personnel should be included on the team 
when a particular related service will be discussed at the 
request of a child's parents or the school. Such personnel can 
include personnel knowledgeable about services that are not 
strictly special education services, such as specialists in 
curriculum content areas such as reading. Furthermore, 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 sometimes are 
assumed to be responsible for all health-care costs connected 
to a child's participation in school. The Committee wishes to 
encourage, to the greatest extent practicable and when 
appropriate, the participation of a licensed registered school 
nurse on the IEP Team to help define and make decisions about 
how to safely address a child's educationally-related health 
needs.
    The bill also clarifies obligations in two areas. First, 
nothing in section 614 may be construed to require the IEP Team 
to include information under one component of a child's IEP 
that is already contained in another component. Second, section 
614 requires that each LEA or State educational agency 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. The Committee expects that the majority of 
placement decisions will be made by the IEP Team, but in those 
unique cases where it is not, the Committee expects parents to 
be involved in the group making the decision.
    The bill requires that, at the beginning of every school 
year, an IEP be in effect for each child with a disability 
served by an LEA, a State agency, or an SEA. In the case of a 
child with a disability aged 3 though 5 (or at the discretion 
of the State educational agency, a 2 year-old child with a 
disability who will turn age 3 during the school year), an 
individualized family service plan that contains the 
requirements described in section 636, and that is developed in 
accordance with section 614, may serve as the child's IEP if 
using that plan as the IEP is consistent with State policy and 
agreed to by the agency and the child's parents.
    The bill specifies that the LEA shall ensure that a child's 
IEP Team review a child's IEP periodically, but not less than 
annually to determine whether the annual goals of the child are 
being achieved; and revises the IEP as appropriate to address: 
(1) any lack of expected progress toward the annual goals and 
in the general education curriculum, where appropriate; (2) the 
results of any reevaluation; (3) information provided by or to 
the parents; (4) the child's anticipated needs; or (5) other 
matters.
    With regard to transition services in IEPs, the bill 
provides that if an agency, other than the LEA, participating 
in the child's education fails to provide the transition 
services described in the child's IEP, the LEA must reconvene 
the IEP Team to identify alternative strategies to meet the 
child's transition objectives.
    In developing a child's IEP, the bill requires that the IEP 
Team consider the strengths of the child and the concerns of 
the parents for enhancing the education of their child; and the 
results of the initial evaluation or most recent evaluation of 
the child. In addition, the Committee believes that a number of 
considerations are essential to the process of creating a 
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 could fit into the school's general education program 
without assistance, special education would not be necessary.
    The bill provides that, in the case of a child whose 
behavior impedes the learning of the child or others, the IEP 
Team, as appropriate, shall consider strategies, including 
positive behavior interventions strategies and supports, to 
address that behavior. Similarly, in the case of a child with 
limited English proficiency, the IEP Team is to consider the 
language needs of the child as such needs relate to the child's 
IEP. In the case of a child who is blind or visually impaired, 
the IEP team must provide for instruction in Braille and the 
use of Braille unless the IEP team determines, after an 
evaluation of the child's reading and writing skills, needs, 
and appropriate reading and writing media (including an 
evaluation of the child's future needs for instruction in 
Braille or the use of Braille), that instruction in Braille or 
the use of Braille is not appropriate for the child.
    The Team also is to consider the communication needs of the 
child in order to ensure that local educational agencies better 
understand the unique needs of children who are deaf or hard of 
hearing; section 614(d)(3)(B)(iv) includes special factors that 
must be considered in developing IEPs for these children. The 
policy included in the bill provides that, in the case of the 
child who is deaf or hard of hearing, the IEP Team must 
consider the language and communication needs of the child; 
opportunities for direct communication with peers and 
professional personnel in the child's language and 
communication mode; the child's academic level; and the child's 
full range of needs, including the child's social, emotional, 
and cultural needs and opportunities for direct instruction in 
the child's language and communication mode. The Committee also 
intends that this provision will be implemented in a manner 
consistent with the policy guidance entitled ``Deaf Students 
Education Services,'' published in the Federal Register (57 
Fed. Reg. 49274, October 30, 1992) by the U.S. Department of 
Education.
    The bill further requires that the IEP Team consider the 
provision of assistive technology devices and services when 
developing the child's IEP.
            Procedural Safeguards Section 615
    The procedural safeguards in the IDEA 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, which this bill retains. The Committee has added 
clarifications to the procedural safeguard provisions to 
facilitate conflict resolution, describe how schools may 
discipline children with disabilities, and ensure that due 
process is useful for all parents and schools.
    The bill retains all provisions concerning the opportunity 
to use, and the administrative procedures associated with, an 
impartial due process hearing, and appeals through State-level 
reviews, and the courts, as well as certain existing exceptions 
to reductions in attorneys' fees.
    The bill simplifies the process of delivering, and the 
content of, notices to parents about their child's rights. The 
Committee hopes that these provisions will result in user-
friendly information that parents can understand.
    In section 615 of the bill provisions affecting possible 
reduction of attorneys' fees to prevailing parents are retained 
from current law. A provision has been added that would allow 
parents' attorneys' fees to be reduced, if the attorney 
representing the parents did not provide the LEA with specific 
information about the child and the basis of the dispute; 
specifically: (1) the name of the child, the address of the 
residence of the child, and the name of the school the child is 
attending; (2) a description of the nature of the problem of 
the child relating to the proposed initiation or change, 
including facts relating to that problem; and (3) a proposed 
resolution of the problem, to the extent known and available to 
the parents at the time. The Committee believes that the 
addition of this provision will facilitate an early opportunity 
for schools and parents to develop a common frame of reference 
about problems and potential problems that may remove the need 
to proceed to due process and instead foster a partnership to 
resolve problems.
    The Committee believes that the IEP process should be 
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 
attorneys' fees for attorney participation in IEP meetings, 
unless such meetings are convened as a result of an 
administrative proceeding or judicial action.
    Questions have been raised regarding the relationship 
between the extent of success of the parents and the amount of 
attorneys' fees a court may award. In addressing this question, 
the Committee believes the amount of any award of attorneys' 
fees to a prevailing party under part B shall be determined in 
accordance with the law establishedby the Supreme Court in 
Hensley v. Eckerhart, 461 U.S. 424 (1983) and its progeny.
    As we stated in the 1986 report accompanying the 
legislation that added the attorneys fees provisions: ``It is 
the committee's intent that the terms `prevailing party' and 
`reasonable' be construed consistent with the U.S. Supreme 
Court's decision in Hensley v. Eckerhart, 461 U.S. 424, 440 
(1983). In this case, the Court held that:

        the extent of a plaintiff's success is a crucial factor 
        in determining the proper amount of an award of 
        attorney's fees. Where the plaintiff has failed to 
        prevail on a claim that is distinct in all respects 
        from his successful claims, the hours spent on the 
        unsuccessful claim should be excluded in considering 
        the amount of a reasonable fee. Where a lawsuit 
        consists of related claims, a plaintiff who has won 
        substantial relief should not have his attorney's fees 
        reduced simply because the district court did not adopt 
        each contention raised. But where the plaintiff 
        achieved only limited success, the district court 
        should award only that amount of fees that is 
        reasonable in relation to the results obtained.

    To encourage early resolution of problems whenever 
possible, section 615 requires States to offer mediation as a 
voluntary option to parents and LEAs as an initial process for 
resolving disputes. However, the bill requires that a State's 
mediation system may not be used to delay or deny a parents 
right to due process. The bill allows SEAs and LEAs to 
establish procedures to require parents who choose not to 
engage in mediation to meet, at a time and place convenient for 
them, with a disinterested party who would encourage and 
explain the benefits of mediation. This individual would be 
under contract with either a Parent Training and Information 
Center funded under part D or an alternative dispute resolution 
entity.
    The Committee believes that, in States where mediation is 
now offered, mediation is proving successful both with and 
without the use of attorneys. Thus, the Committee wishes to 
respect the individual State procedures with regard to attorney 
use in mediation, and therefore, neither requires nor prohibits 
the use of attorneys in mediation. The Committee is aware that, 
in States where mediation is being used, 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 strong preference that 
mediation become the norm for resolving disputes under IDEA. 
The Committee believes that the availability of mediation will 
ensure that far fewer conflicts will proceed to the next 
procedural steps, formal due process and litigation, outcomes 
that the Committee believes should be avoided when possible. 
Section 615(e)(2)(B) of the bill provides that the State shall 
maintain a list of individuals who are qualified mediators. The 
Committee intends that, whenever such a mediator is not 
selected on a random basis from that list, both the parents and 
the agency are involved in selecting the mediator, and are in 
agreement with the individual who is selected. The Committee 
further intends that any individual who serves as an impartial 
mediator under part B of IDEA is not an employee of any local 
educational agency or State agency described in section 613(h), 
and is not a person having a personal or professional conflict 
of interest. Individuals who serve as mediators under part C of 
this bill are expected to be selected in the same manner 
described in this paragraph and to meet the same criteria of 
impartiality with respect to employment in the lead agency and 
not having a personal and professional conflict of interest. 
The Committee believes that mediators be experienced, trained, 
and understand the law, the Committee clearly does not intend 
that all mediators be attorneys. Section 615 also specifies 
that a State will bear the cost of mediation.
    The legislation requires that agreements reached in 
mediation shall be put in writing. Furthermore, the amendments 
require that discussions held in mediation would be 
confidential and could not be used as evidence in any 
subsequent due process hearing or civil action. However, the 
Committee intends that nothing in this bill shall supersede any 
parental access rights under the Family Educational Rights and 
Privacy Act of 1974 or foreclose access to information 
otherwise available to the parties. Mediation parties may enter 
into a confidentiality pledge or agreement prior to the 
commencement of mediation. An example of such an agreement 
follows:
          a. The mediator, the parties, and their attorneys 
        agree that they are all strictly prohibited from 
        revealing to anyone, including a judge, administrative 
        hearing officer or arbitrator the content of any 
        discussions which take place during the mediation 
        process. This includes statements made, settlement 
        proposals made or rejected, evaluations regarding the 
        parties, their good faith, and the reasons a resolution 
        was not achieved, if that be the case. This does not 
        prohibit the parties from discussing information, on a 
        need-to-know basis, with appropriate staff, 
        professional advisors, and witnesses.
          b. The parties and their attorneys agree that they 
        will not at any time, before, during, or after 
        mediation, call the mediator or anyone associated with 
        the mediator as a witness in any judicial, 
        administrative, or arbitration proceeding concerning 
        this dispute.
          c. The parties and their attorneys agree not to 
        subpoena or demand the production of any records, 
        notes, work product, or the like of mediator in any 
        judicial, administrative, or arbitration proceeding 
        concerning this dispute.
          d. If, at a later time, either party decides to 
        subpoena the mediator or the mediator's records, the 
        mediator will move to quash the subpoena. The party 
        making the demand agrees to reimburse the mediator for 
        all expenses incurred, including attorney fees, plus 
        mediator's then-current hourly rate for all time taken 
        by the matter.
          e. The exception to the above is that this agreement 
        to mediate and any written agreement made and signed by 
        the parties as a result of mediation may be used in any 
        relevant proceeding, unless the parties agree in 
        writing not to do so. Information which would otherwise 
        be subject to discovery, shall not become exempt from 
        discovery by virtue of it being disclosed during 
        mediation.
    Section 615 adds a provision that requires that five 
business days prior to a due process hearing, each party 
disclose to other parties all evaluations completed by that 
date and recommendations associated with those evaluations that 
are to be used at the hearing. If any party fails to provide 
such information within the time specified in the bill, the 
hearing officer may bar that party from introducing the 
relevant evaluation or recommendation at the hearing without 
the consent of the other party.
    Section 615(j) provides that, except as provided in 
615(k)(7), during the pendency of any proceedings conducted 
pursuant to section 615, unless the State or LEA 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.
    The Committee recognizes that school safety is important to 
educators and parents. There has been considerable debate and 
concern about both if and how those few children with 
disabilities who affect the school safety of peers, teachers, 
and themselves may be disciplined when they engage in behaviors 
that jeopardize such safety. In addition, the Committee is 
aware of the perception of a lack of parity when making 
decisions about disciplining children with and without 
disabilities who violate the same school rule or code of 
conduct. By adding a new section 615(k) to IDEA, the Committee 
has attempted to strike a careful balance between the LEA's 
duty to ensure that school environments are safe and conducive 
to learning for all children, including children with 
disabilities, and the LEA's continuing obligation to ensure 
that children with disabilities receive a free appropriate 
public education (FAPE). Thus, drawing on testimony, 
experience, and common sense, the Committee has placed specific 
and comprehensive guidelines on the matter of disciplining 
children with disabilities in this section.
    It is the Committee's intent that this set of practical and 
balanced guidelines reinforce and clarify the understanding of 
Federal policy on this matter, which is currently found in the 
statute, case law, regulations, and informal policy guidance. 
By placing all pertinent guidance in one place, the Committee 
anticipates that educators will have a better understanding of 
their areas of discretion in disciplining children with 
disabilities and that parents will have a better understanding 
of the protections available to their children with 
disabilities.
    The bill codifies current law by allowing school personnel 
to order a change in the placement of a child with a disability 
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). The bill also provides two 
exceptions to the pendency provision under section 615(j). 
First, the bill allows school personnel to order a change in 
the placement of a child with a disability to an appropriate 
interim alternative educational setting for the same amount of 
time that a child without a disability would be subject to 
discipline, but for not more than 45 days, if the child carries 
a weapon to school or to a school function under the 
jurisdiction of a State or an LEA: or the child knowingly 
possesses or uses illegal drugs or sells or solicits the sale 
of a controlled substance while at school or a school function 
under the jurisdiction of a State or an LEA. The appropriate 
interim alternative educational setting shall be determined by 
the IEP team.
    The bill requires that, either before or not later than 10 
days after taking such a disciplinary action, if the LEA did 
not conduct a functional behavioral assessment and implement a 
behavioral intervention plan for such child before the behavior 
that resulted in the suspension, the agency shall convene an 
IEP meeting to develop an assessment plan to address that 
behavior; or if the child already has a behavior intervention 
plan, the IEP Team shall review the plan and modify it, as 
necessary, to address the behavior.
    Under the second exception to the pendency provision, a 
impartial hearing officer is permitted to order a change in the 
placement of a child with a disability to an appropriate 
interim alternative educational setting for not more than 45 
days if the impartial hearing officer determines at the hearing 
that the public agency has demonstrated by substantial evidence 
that maintaining the current placement of the child is 
substantially likely to result in injury to the child or to 
others; considers the appropriateness of the child's current 
placement; considers whether the public agency has made 
reasonable efforts to minimize the risk of harm in the child's 
current placement, including the use of supplementary aids and 
services; and determines that the interim alternative 
educational setting enables the child to continue to 
participate in the general education curriculum, although in 
another setting, and to continue to receive those services and 
modifications, including those described in the child's current 
IEP, that will enable the child to meet the goals set out in 
that IEP; and includes services and modifications designed to 
address the behavior so that it does not recur.
    The standard ``substantially likely to result in injury to 
the child or others'' codifies the standard established by the 
Supreme Court in Honig v. Doe. The bill requires the impartial 
hearing officer to consider the appropriateness of the child's 
placement and efforts by the school district to minimize the 
risk of harm in the child's current placement, including 
through use of supplementary aids and services. If the school 
district has failed to provide the child an appropriate 
placement or to make reasonable efforts to minimize the risk of 
harm, the appropriate response by an impartial hearing officer 
is to deny the school district's request to move the child to 
an alternative setting and to require the district to provide 
an appropriate placement and make reasonable efforts to 
minimize the risk of harm. Thus, it will not be permissible to 
move a child when the child's behavior can be addressed in the 
current placement.
    Section 615(k)(10)(C) defines the term ``substantial 
evidence'' as used in section 615(k). The term means evidence 
that is beyond preponderance of the evidence. The standard in 
615(k)(2)(A) that maintaining a child in the current placement 
is substantially likely to result in injury to the child or 
others codifies the standard set by the Supreme Court in Honig 
v. Doe.
    The bill requires that, if a disciplinary action is 
contemplated as described in the preceding paragraphs for a 
behavior of a child with disability or if a disciplinary action 
involving a change in placement for more than 10 school days 
for a child with a disability who has engaged in other behavior 
that violated any rule or code of conduct of the LEA that 
applies to all children, not later than the date on which the 
decision to take that action is made, the parents shall be 
notified of that decision and of all procedural safeguards 
accorded under section 615 of IDEA. In addition, immediately, 
if possible, but in no case later than 10 school days after the 
date on which the decision to take that action, a review shall 
be conducted by the IEP Team and other qualified personnel of 
the relationship between the child's disability and the 
behavior subject to the disciplinary action.
    The bill allows for a change of setting for the educational 
services provided a child with disabilities in the two specific 
circumstances identified above, but it does not change the 
other requirements of the Act. The bill describes the standards 
that that setting--the interim alternative educational 
setting--must meet. It must be a setting, although a different 
setting, where the child can continue to participate in the 
general curriculum, and continue to receive the general 
curriculum services and modifications, including those in the 
child's current IEP, so that the child can meet the goals of 
that IEP, and it must include services or modifications 
designed to address (so that it does not recur) the behavior 
that led to the child's placement in the interim alternative 
educational setting.
    The bill prescribes the relevant information that must be 
considered by the IEP Team in carrying out a review in terms of 
the behavior subject to the disciplinary action--all relevant 
information, including evaluation and diagnostic results, 
including relevant information supplied by the parents, 
observations of the child, and the child's IEP and placement. 
The Committee limits the scope of this review by including the 
phrases ``in relationship to the behavior subject to 
disciplinary action'' and ``behavior subject to disciplinary 
action''.
    In addition, this section prescribes, also in terms of the 
behavior subject to disciplinary action, the standards for 
determining whether or not the behavior of the child was a 
manifestation of the child's disability:
    The IEP Team must determine that--
          (1) in relationship to the behavior subject to 
        disciplinary action, the child's IEP and placement were 
        appropriate, and special education and related 
        services, and supplementary aids and services, and 
        behavior intervention strategies were provided 
        consistent with the child's IEP and placement;
          (2) the child's disability did not impair the ability 
        of the child to understand the impact and consequences 
        of the behavior subject to disciplinary action; and
          (3) the child's disability did not impair the ability 
        of the child to control the behavior subject to 
        disciplinary action.
    The Committee offers the following clarification with 
respect to the first standard in section 615(k)(4)(C)(ii). This 
standard recognizes that where there is a relationship between 
a child's behavior and the failure to provide or implement an 
IEP or placement, the IEP Team must conclude that the behavior 
was a manifestation of the child's disability. Similarly, where 
the IEP Team determines that an appropriate placement and IEP 
were provided, the IEP Team must then determine that the 
remaining two standards have been satisfied. This section is 
not intended to require an IEP Team to find that a child's 
behavior was a manifestation of a child's disability based on a 
technical violation of the IEP or placement requirements that 
are unrelated to the educational/behavior needs of the child.
    Section 615(k)(5) of the legislation codifies current law, 
which permits a public agency to apply to a child whose 
behavior is not a manifestation of the child's disability the 
same disciplinary procedures that apply to children without 
disabilities. This section must be construed in light of the 
Act's obligation not to terminate services to children with 
disabilities and the pendency provision. A child with a 
disability would not be subject to disciplinary action for 
behavior that was a manifestation of the child's disability.
    To promote the timely sharing of relevant information, 
section 615(k) of the bill requires that, if the public agency 
initiates disciplinary procedures applicable to all children, 
the agency shall ensure that the special education and 
disciplinary records of the child with a disability are 
transmitted for consideration by the person or persons making 
the final determination regarding the disciplinary action.
    The Committee also addresses parents' appeal options in 
section 615(k) of the bill. If parents disagree with a 
determination that the child's behavior was not a manifestation 
of the child's disability or with any decision regarding 
placement, the parents may request a hearing. In such a case, 
the State or LEA shall arrange for an expedited hearing.
    In reviewing a decision with respect to the manifestation 
determination in an expedited hearing, the hearing officer 
shall determine whether the public agency has demonstrated that 
the child's behavior was not a manifestation of such child's 
disability consistent with the requirements of paragraph(4)(C), 
used by an IEP Team when determining whether a behavior is or 
is not a manifestation of the disability. That is, the hearing 
officer in an expedited hearing, would determine that (1) in 
relationship to the behavior subject to disciplinary action, 
the child's IEP and placement were appropriate, and special 
education services and related services, supplementary aids and 
services, and behavior intervention strategies were consistent 
with the child's IEP; (2) the child's disability did not impair 
the ability of the child to understand the impact and 
consequences of the behavior subject to disciplinary action; 
and (3) the child's disability did not impair the ability of 
the child to control the behavior subject to disciplinary 
action.
    The bill requires that, before a hearing officer in an 
expedited due process hearing selects an interim alternative 
educational setting for a child, the officer is to determine if 
the public agency has demonstrated by substantial evidence that 
maintaining the currentplacement of the child is substantially 
likely to result in injury to the child or to others; consider the 
appropriateness of the child's current placement; consider whether the 
public agency has made reasonable efforts to minimize the risk of harm 
in the child's current placement, including the use of supplementary 
aids and services; and determines that the interim alternative 
educational setting meets these requirements: (1) it enables the child 
to continue to participate in the general education curriculum, 
although in another setting, and to continue to receive those services 
and modifications, including those described in the child's current 
IEP, that will enable the child to meet the goals set out in that IEP; 
and (2) includes services and modifications designed to address the 
behavior subject to discipline so that it does not recur.
    When parents request a hearing regarding a disciplinary 
action with respect to weapons, illegal drugs, or a controlled 
substance or actions that are substantially likely to result in 
injury to the child or others or to challenge the interim 
alternative educational setting or the manifestation 
determination, the child shall remain in the interim 
alternative educational setting pending the decision of the 
hearing officer or until the expiration of the time period 
provided for (i.e., the same amount of time that a child 
without a disability would be subject to discipline but not 
more than 45 days) in section 615(1)(A)(ii) or (2) of the bill, 
whichever occurs first, unless the parents and the State or LEA 
agree otherwise.
    If a child is placed in an interim alternative educational 
setting for the reasons described in Section 615(k)(1)(A)(ii) 
or (2) and school personnel propose to change the child's 
placement after expiration of the interim alternative 
educational placement, during the pendency of any proceeding to 
challenge the proposed change in placement, the child shall 
remain in the current placement (i.e., the child's placement 
prior to the interim alternative educational setting). In the 
bill the Committee allows an exception. If school personnel 
maintain that it is dangerous for the child to be in the 
current placement (placement prior to removal to the interim 
alternative educational setting) during the pendency of the due 
process proceedings, the district may request an expedited 
hearing.
    In determining whether the child may be placed in the 
alternative educational setting or in another appropriate 
placement ordered by the hearing officer, the hearing officer 
shall apply the standards set out above. That is, the officer 
is to: (1) determine if the public agency has demonstrated by 
substantial evidence that permitting the child to return to his 
or her current placement (the child's placement prior to the 
interim alternative educational setting) is substantially 
likely to result in injury to the child or to others; (2) 
consider the appropriateness of the child's current placement 
(the child's placement prior to the interim alternative 
educational setting); (3) consider whether the public agency 
has made reasonable efforts to minimize the risk of harm in the 
child's current placement (the child's placement prior to the 
interim alternative educational setting), including the use of 
supplementary aids and services; and (4) determine that the 
continued use of an interim alternative educational setting 
meets these requirements: (a) enables the child to continue to 
participate in the general education curriculum, although in 
another setting other than the original placement, and to 
continue to receive those services and modifications, including 
those described in the child's current IEP, that will enable 
the child to meet the goals set out in that IEP; and (b) 
includes services and modifications designed to address the 
behavior subject to discipline so that it does not recur.
    In the bill, the Committee addresses the issue of 
disciplining children not yet eligible under part B of the IDEA 
and discipline. A child who has not been determined to be 
eligible for special education and related services under part 
B and who has engaged in behavior that violated any rule or 
code of conduct of the LEA may assert any of the protections 
provided for in part B of IDEA, if the LEA had knowledge that 
the child was a child with a disability before the behavior 
that precipitated the disciplinary action occurred. An LEA 
shall be deemed to have had knowledge that a child is a child 
with a disability if the parents of the child have expressed 
concern in writing (unless the parents are illiterate or have a 
disability that prevents compliance with the requirements of 
this clause) to personnel of the appropriate educational agency 
that the child needs special education and related services; 
the behavior or performance of the child demonstrates the need 
for such services; the parent of the child has requested an 
evaluation of the child under section 614, or the child's 
teacher, or other LEA personnel, has expressed concern about 
the behavior or performance of the child to the director of 
special education or to other agency personnel.
    If an LEA does not have knowledge, or could not reasonably 
have known, that a child is a child with a disability prior to 
taking disciplinary measures against the child, the child may 
be subjected to the same disciplinary measures applied to 
children without disabilities, who engaged in comparable 
behaviors, consistent with section 615(k)(2) pertaining to the 
authority of a hearing officer.
    If a request is made for an evaluation of a child during 
the time period in which the child is subjected to disciplinary 
measures, 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 part B, except that, 
pending the results of the evaluation, the child shall remain 
in the educational placement determined by school authorities.
    In the bill, the Committee clarifies that nothing in part B 
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. An agency reporting a crime 
committed by a child with a disability shall ensure that copies 
of the special education and disciplinary records of the child 
are transmitted for consideration by the appropriate 
authorities to whom it reports the crime.
    To ensure uniformity in the application of the provisions 
that have safety implications in section 615(k), the terms 
``controlled substance,'' ``illegal drug,'' and ``weapon'' 
havebeen defined in the bill. ``Controlled substance'' means a drug or 
other substance identified under schedules I, II, III, IV, or V in 
section 202(c) of the Controlled Substances Act (21 U.S.C. 812(c)). The 
term ``illegal drug'' means a drug or other substance identified under 
schedules I, II, III, IV, or V in section 202(c) of the Controlled 
Substances Act (21 U.S.C. 812(c)), but does not include such a 
substance that is legally possessed or used under the supervision of a 
licensed health-care professional or that is legally possessed or used 
under any other authority under the Controlled Substance Act or under 
any other provision of Federal law. ``Weapon'' means a weapon, device, 
instrument, material, or substance, animate or inanimate, that is used 
for, or is readily capable of, causing death or serious bodily injury, 
except that such term does not include a pocket knife with a blade of 
less than 2\1/2\ inches in length.
            Withholding and judicial review section 616
    The Committee recognizes and fully expects that the 
Secretary will utilize the broad enforcement authority 
available for ensuring compliance with and implementation by 
State educational agencies with the applicable provisions of 
part B. The bill authorizes the Secretary to withhold part B 
funds, in whole or in part, from States that are not in 
compliance with part B. Thus, based on the nature and degree of 
noncompliance, the Secretary may determine the level of funding 
to be withheld and the type of funding to withhold (e.g., the 
entire State set-aside or the set-aside for administrative 
purposes).
    The Committee expects the Secretary to initiate actions to 
ensure enforcement, including the reexamination of current 
Federal monitoring and compliance procedures to improve the 
implementation of the law, and a subsequent annual report to 
Congress which evaluates the impact of the improved procedures 
on compliance. The committee also expects that the Secretary's 
reexamination of current enforcement procedures will place 
strong emphasis on: (1) including parents in the state 
monitoring process; (2) focusing monitoring efforts on the 
issues that are most critical to ensuring appropriate education 
to children with disabilities, and (3) timely follow-up to 
ensure that a State has taken appropriate action to demonstrate 
compliance with the law.
    In addition, the Secretary may initiate other actions to 
ensure enforcement, such as requiring the State to submit a 
detailed plan for achieving compliance, imposing special 
considerations on the State's part B grant, referring the 
matter to the Department of Justice for appropriate enforcement 
action, and other enforcement actions authorized by law.
    The Committee has included an express reference ``referral 
to the Department of Justice'' in section 616(a)(1)(B) to the 
authority now in current law of the Department of Education to 
refer instances of non-compliance to other agencies. In 
reiterating this authority, the Committee does not intend to 
expand present enforcement powers of any other Department, nor 
establish any new rights of action against State or local 
governments, education agencies, or private parties.
    Similar enforcement authorities exist for States to ensure 
that local educational agencies meet their responsibilities 
under the Individuals with Disabilities Education Act.
            Data collection section 618
    The legislation substantially streamlines the current data 
collection requirements by eliminating reporting on the 
services needed, by disability category, for children leaving 
the educational system, and the number and type of personnel 
employed and data on current and project personnel needs. New 
reporting requirements are added in the bill for: the number of 
children moved to interim alternative educational settings, and 
the number of infants and toddlers at risk of developing 
developmental delays. The bill allows the Secretary of 
Education discretion to allow States and the Secretary of the 
Interior to collect needed data through sampling.
    Because of the Committee's desire to see the problem of 
over identification of minority children addressed, the bill 
requires States provide for the collection and examination of 
data to determine if significant disproportionality based on 
race is occurring with respect to particular disability 
categories or types of educational setting.
            The Preschool Program section 619
    The legislation amends the section 619 Preschool Grants 
program to conform with the funding formula changes for the 
section 611 Grants to States program. Under the new formula, no 
State would receive less than it received in fiscal year 1997. 
Beginning in fiscal year 1998, all new appropriations above the 
FY 97 level will be 85 percent based on the general population 
of children aged 3 through 5, and 15 percent on the poverty 
rate in the State. The formula also includes the same minimum 
and maximum allocation provisions that apply to the new formula 
under the Grants to States program. These provisions ensure 
that every State receives part of any increase, and there is no 
radical shift in resources.
    The legislation would eliminate funding for the Outlying 
Areas under the Preschool Grants program and add an amount 
equivalent to the amount they received in fiscal year 1997 to 
the fiscal year 1998 allocations the Outlying Areas would 
otherwise receive under the Grants to States program. This 
would maintain overall funding for the Outlying Areas while 
eliminating paperwork associated with their allocations under 
the Preschool Grants program, which is unduly burdensome for 
the Outlying Areas given the nominal amount of funding 
involved.
    Unlike the Grant to States program, the new funding formula 
for Preschool Grants takes effect on July 1, 1998.

Amendments to part C of the Individuals with Disabilities Education Act

    The bill reorganizes part H which authorizes the early 
intervention program as part C.
    The 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 need less intensive services when they reach school age. 
The Committee believes that it is in the best interests of the 
infants and toddlers, their families, schools, and society in 
general that these services continue to be provided.
    The bill retains current law and adds clarifications with 
regard to State discretion when it elects to address the needs 
of infants and toddlers at risk of having substantial 
developmental delays if they do not receive early intervention 
services. To provide greater flexibility in addressing the 
needs of ``at-risk infants and toddlers'' in those States not 
currently serving such children, the bill permits a State to 
use its part C funds for initiating, expanding, or improving 
collaborative efforts related to at-risk infants and toddlers, 
including: establishing linkages with public and private 
organizations, services and personnel for identifying and 
evaluating at-risk infants and toddlers; referring those 
children to other (nonpart C) services; and conducting periodic 
follow-ups on each referral to determine if the child's 
eligibility under part C has changed.
    While the provision in the preceding paragraph, applies 
only to States that do not serve at-risk infants and toddlers 
under part C, States that are serving those infants and 
toddlers may carry out these activities as well, under the 
general authority to use part C funds to implement the 
components of statewide systems. The provision addressed in the 
preceding paragraph is intended to provide both clear authority 
and an incentive for States that are not serving at-risk 
infants and toddlers, not to penalize States that are already 
doing so.
    The Committee has addressed the serious problem of 
personnel shortages in the provision of early intervention 
services. The bill adds a provision that allows that 
paraprofessionals and assistants, who are appropriately trained 
and supervised, in accordance with State law and regulations, 
or written policy, to assist in the provision of early 
intervention services to infants and toddlers with disabilities 
under part C. With regard to personnel standards, the bill, as 
does current law, clarifies that, to the extent that the 
standards met by providers of early intervention services in a 
State, are not based on the highest requirements in the State 
applicable to a specific profession or discipline, the State is 
to have steps it is taking to require the retraining or hiring 
of personnel that meet appropriate professional requirements in 
the State. In addition, the bill in part C clarifies this State 
responsibility in a manner that conforms to parallel language 
in part B.
    The bill describes the assurances a State must submit as 
part of its application for funding under part C.
    The bill clarifies that part C is truly the payer of last 
resort even for military families who are eligible for medical 
programs administered by the Department of Defense. The 
Committee does not intend to change the types of services that 
are currently covered by DOD programs nor expect that the 
services covered under DOD medical programs will change.
    Changes are made to the provisions for submission of State 
applications, consistent with similar changes in part B.
    The bill includes an authorization level for part C of 
$400,000,000. The Committee recognizes the effort, both 
fiscally and programmatically, that all States are making 
through Part C and the current federal/State partnership in 
this important effort.

Amendments to part D of the Individuals with Disabilities Education Act

    Discretionary programs in IDEA, which fund personnel 
training, research, systemic change activities, parent training 
and information centers, technical assistance, and media and 
technology initiatives to assist children with disabilities, 
have evolved since the Act's original passing to cover a 
variety of particular needs. Many of these needs continue to 
this day, while others have receded.
    Current law authorizes nineteen funded and unfunded 
discretionary programs. This legislation consolidates these 
programs into four broad areas. The Committee believes that by 
creating a refocused national program for discretionary 
programs, such programs will be more strategically able to 
assist States, and local communities, to maintain and improve 
their capacity to reach and serve infants, toddlers, and 
children with disabilities.
    The Act creates a new part D, National Activities to 
Improve Education of Children with Disabilities. Subpart 1 of 
part D authorizes new State Program Improvement Grants. This 
subpart 1 establishes a new system of grants to improve results 
for children with disabilities through systemic reform with an 
emphasis on personnel training. State educational agencies, in 
close cooperation with their ``contractual partners,'' local 
educational agencies, and parents of children with and without 
disabilities, individuals with disabilities, the Governor, and 
other State and local agencies, organizations, and institutions 
concerned with the needs of and services for children with 
disabilities shall develop an improvement plan after 
identifying the State's needs in several areas; these include 
assessing children with disabilities and their performance, 
training and personnel needs, and evaluating system 
effectiveness. States that receive these competitive grants 
will be able to use funds to implement the improvement 
strategies they have proposed in their plan which will be based 
on the needs of the State's children with disabilities and the 
nature of the State's capacity and methods of serving these 
children.
    The legislation requires that 75% of State Improvement 
Grant funds be used for personnel training. This reflected the 
Committee's desire that subpart 1 grants be a primary means of 
supporting personnel training, complemented by an authorization 
for additional, but targeted, personnel training initiatives in 
subpart 2, chapter 1 of part D. The rationale for focusing 
personnel training funds at the State level through subpart 1, 
State Program Improvement Grants, is an attempt to improve 
results for children with disabilities through addressing 
personnel training needs of States, as identified anddefined by 
a State, not the Federal government.
    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 States, the greatest need 
for training is for in-service training for general and special 
education teachers, and for pre-service training in addressing 
the special instructional needs of children with disabilities, 
including their integration regular education classes, for 
future general education personnel. The Committee believes 
that, by targeting State Program Improvement Grant funds as it 
has, appropriate training for teachers addressing the learning 
needs of children with disabilities, especially general 
education teachers in early grades, will help reduce 
inappropriate referrals to special education of learning 
disabled children and improve results for children with 
disabilities served by both general and special education 
personnel. 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.
    In part D, subpart 2, the Committee authorizes Coordinated 
Research, Personnel Preparation, Technical Assistance, Support, 
and Dissemination of Information. The Committee intends that 
the new Chapter 1 National Research and Innovation Activities 
Program lead to a new coordinated effort in special education 
research and grant activities. Section 661 in the bill contains 
the administrative provisions. In this section the Secretary of 
Education is provided with both direction and flexibility that 
the Committee believes will facilitate the development of a 
comprehensive plan to guide the distribution of funds under 
subpart 2. Stake holders will have direct input in developing 
the plan. As in current law, in the bill each major grant 
competition requires peer review, to promote the selection of 
high quality applications for funding who will be responsive to 
the needs identified in a particular competition. The Committee 
intends that the Secretary's planning process establish a new 
coordinated system of funding to reflect what the stake holders 
collectively view as funding priorities.
    The bill authorizes research and targeted personnel 
training activities. The bill provides wide flexibility in 
terms of funding for research, distinguishing among funding for 
knowledge production, integration of research knowledge and 
practice, and the use of professional knowledge. The Committee 
believes strongly that an organized, collective commitment to 
get validated research--best practice information--to the 
teacher in the classroom is essential. Thus, the Committee 
anticipates the substance and organization of the provisions 
pertaining to research will facilitate such an outcome.
    The bill authorizes funding for targeted personnel 
preparation activities related preparing personnel to serve 
children with low-incidence and high incidence disabilities, 
leadership personnel, and projects of national significance. 
The focus of the latter projects will be to develop and 
demonstrate effective and efficient practices; to apply 
research findings in personnel preparation, demonstrate 
effective models for preparing personnel; reducing shortages of 
personnel, and developing, evaluating, and disseminating model 
teaching standards; as well as to develop and disseminate 
models that prepare teachers with strategies, including 
behavioral interventions, for addressing the conduct of 
children with disabilities that impedes their learning and that 
of others; to fund institutes for professional development, 
activities promoting the transfer of certification requirements 
across States; and selected other activities, including 
projects to improve the ability of general education 
personnel--teachers, principals, and administrators--to meet 
the needs of children with disabilities. The bill specifies 
that high-incidence personnel preparation activities, including 
those conducted by local educational agencies and other local 
entities, are to address improvement and reform of existing 
training programs and the incorporation of best-practices and 
research-based knowledge into these training programs.
    The bill directs the Secretary to undertake a national 
assessment of the Nation's systems of providing services to 
infants, toddlers, and children with disabilities and their 
families. The Secretary is to prepare recommendations for 
improving these systems in a fashion that will be useful to the 
107th Congress, as it considers the effectiveness of these 
amendments in improving services for children with disabilities 
and whether further changes are needed. In addition, the 
Secretary is authorized to conduct longitudinal studies and to 
provide technical assistance directly to local educational 
agencies.
    The bill retains the authority, substantially unchanged 
from current law, to fund the Parent Training and Information 
Centers. The bill adds authority to fund local parent 
organizations, referred to in the bill as ``community parent 
resource centers,'' to receive funding. The Committee 
recognizes the substantial contribution that State Parent 
Training and Information Centers, and local parent 
organizations have made, in educating parents about the IDEA, 
and especially in responding to parents of diverse racial, 
cultural, and linguistic backgrounds. The Committee anticipates 
that, by working in tandem, the State-level and community-based 
grantees will be able to reach even more parents many of whom 
are isolated by geographic, social, language, cultural, or 
racial factors.
    The bill retains the authority for the Secretary to fund 
Regional Resource Centers and clearinghouses, and other 
programs to help State and local entities build capacity to 
serve infants, toddlers, and children with disabilities and 
their families. It also retains the Secretary's authority to 
fund systemic technical assistance to assist with the 
implementation of State program improvement grants, promoting 
change through multistate and regional frameworks that benefit 
State and local educational agencies, and the collection and 
dissemination to a wide range of stake holder audiences.
    The bill retains the authority of the Secretary to fund 
projects related to the development, demonstration, and use of 
technology. It also retains the authority to fund educational 
media services. The authority extends to support for video 
description, open captioning, and closed captioning of 
television programs, videos, or educational materials. On 
October 1, 2001, such support will cover video description, 
open captioning, and close captioning of educational, news, and 
informational television, videos, or materials. By that point, 
the Committee anticipates that the transition towardprivately 
financed captioning of all broadcast television will be well under way, 
because of the publication of, and expected compliance with, the 
Federal Communication Commission's regulations on the subject in August 
1997.

                   title II--miscellaneous provisions

    Title II repeals and extends provisions of the IDEA 
consistent with the amendments in Title I of the bill. Title II 
also provides that most amendments to parts A and B will be 
effective on the date of enactment. It provides that part C and 
sections 612(a)(4), 612(a)(14), 612(a)(16), 614(d) (except for 
paragraph (6)), and 618 of part B will be effective on July 1, 
1998. It provides that amendments to part D, the new 
discretionary programs, and section 617 of part B will take 
effect October 1, 1997 consistent with the start of the Federal 
fiscal year 1998.
    Title II establishes that section 618 of IDEA as in effect 
on the day before enactment, and the provisions of parts A and 
B of IDEA relating to IEPs and the State's comprehensive system 
of personnel development, as so in effect, shall remain in 
effect until July 1, 1998. It provides that beginning on 
October 1, 1997, the Secretary of Education may use funds 
appropriated under part D of IDEA as in effect on the day prior 
to enactment to make continuation awards for projects that were 
funded under section 618 and parts C through G of IDEA as in 
effect on September 30, 1997. Part I, the Family Support 
Program, will be authorized through September 30, 1998 as part 
of IDEA.

                      Section-by-Section Analysis

    Section 1 of the bill permits this title to be cited as the 
`Individuals with Disabilities Education Act Amendments of 
1997'.
    Section 101 of the bill 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 Act, the 
Table of Contents, the findings, and the purposes.
    ``Section 602 defines the key terms used in this title, 
including: 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 Family Service Plan, Infant 
or Toddler with a Disability, Institution of Higher Education, 
Local Educational Agency, Native Language, Nonprofit, Outlying 
Areas, 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, and 
Transition Services.
    ``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 authorizes the acquisition of equipment and 
construction of necessary facilities, and provides that any 
construction must meet specified accessibility standards.
    ``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.
    ``Section 607: includes requirements for prescribing 
regulations, and for issuing policy letters by the Department 
of Education.

                                ``part b

    ``Section 611 authorizes such sums for Part B and 
establishes a new formula when the appropriation reaches $4.9 
billion.
    ``Section 612(a) describes the policies and procedures that 
a State must have in effect to be eligible for receipt of funds 
under part B of the Act, including policies and procedures 
relating to: 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 (including an exception relating to 
disabled children who are convicted as adults under State Law 
and incarcerated in adult prisons); Obligations Relating to and 
Methods for Ensuring Services; State 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; Maintenance of State Financial 
Support; Public Participation; State Advisory Panel; and 
Suspension and Expulsion Rates.
    ``Section 612(b) lists the additional requirements under 
section 613(a) that a State Education Agency must meet if it 
provides a free appropriate public education or direct services 
to children with disabilities.
    ``Section 612(c) includes conditions under which States are 
required to submit amended policies and procedures to the 
Secretary, and the Secretary's responsibilities under this 
section.
    ``Section 612(d) describes what actions the Secretary must 
take in approving a State's eligibility, and before making a 
final determination that a State is not eligible.
    ``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 the 
provision of special education to children with disabilities in 
private schools if, in 1983, a State was prohibited by State 
law from providing that education.
    ``Section 613(a) sets out the local eligibility 
requirements under part B. The section provides that to be 
eligible for any fiscal year, an LEA is must demonstrate to the 
satisfaction of the SEA that its policies, procedures, and 
programs are consistent with the State policies and procedures 
described under section 612; and that the LEA uses its part B 
funds in accordance with the specified requirements of this 
section; meets the personnel development requirements; and 
provides the SEA with information to enable that agency to 
carry out its duties under this part. The section permits LEAs 
to use the part B funds for various specified purposes. The 
section also addresses the treatment of charter schools under 
part B and the disabled children that they serve.
    ``Section 613(b) includes conditions under which LEAs are 
required to submit amended policies and procedures to the SEA, 
and the SEA's responsibilities under this section.
    ``Section 613(c) provides that if the SEA determines that 
an LEA or a State agency is not eligible under this section, it 
must notify that agency of its determination and provide the 
agency with reasonable notice and an opportunity for a hearing.
    ``Section 613(d) provides that if an eligible LEA or State 
agency is failing to comply with any requirement under section 
613(a), the SEA shall not make any further payments to that 
agency until it comes into compliance.
    ``Section 613(e) sets out conditions under which an SEA may 
require an LEA to require an LEA to establish its eligibility 
jointly with another LEA, and describes the conditions under 
which an educational service agency and a charter school would 
be exempted from this section.
    ``Section 613(f) permits an LEA to use up to five percent 
of its annual part B allotment to develop and implement a 
coordinated services system.
    ``Section 613(g) authorizes each LEA to use its part B 
funds to permit a public school within the jurisdiction of an 
LEA to design, implement, and evaluate a school based 
improvement plan.
    ``Section 613(h) requires the SEA to use the payments that 
otherwise would have been available to an LEA or State agency 
to provide special education and related services directly to 
children with disabilities for whom the agency is responsible, 
if the SEA determines the existence of one or more specified 
situations.
    ``Section 613(i) requires any State agency that desires to 
receive a subgrant for any fiscal year under part B to 
demonstrate to the satisfaction of the SEA that the agency 
meets the conditions described in the section.
    ``Section 613(j) allows the State to require local 
educational agencies to include in the records of a child with 
a disability a statement of any current or previous 
disciplinary action that has been taken against the child to 
the same extent that such disciplinary information is included 
in the student records of non-disabled children.
    ``Section 614(a) sets out requirements relating to initial 
evaluations, parental consent and refusal of consent, and 
reevaluations.
    ``Section 614(b) includes requirements for procedures 
relating to providing notice to parents about evaluations, and 
conducting evaluations.
    ``Section 614(c) includes requirements relating to 
determining a child's eligibility under part B; reviewing 
existing evaluation data; obtaining parental consent for 
reevaluations, and actions to take if additional data are not 
needed.
    ``Section 614(d) includes definitions of `IEP' and `IEP 
Team'; requires that an IEP be in effect at the beginning of 
each school year for each child with a disability, and provides 
that, for a child aged three, four, or five, an IFSP developed 
under part C could serve as the child's IEP; requires that each 
IEP be developed in a meeting by the IEP team, and lists 
specified areas that must be considered in developing a child's 
IEP; and requires LEAs to ensure that the IEP team reviews each 
IEP periodically, but not less than annually, and revises the 
IEP, as appropriate. The section also requires LEAs to 
reconvene the IEP team to identify alternative strategies to 
meet the transition objectives for a student if a participating 
agency, other than the LEA, fails to provide the transition 
services described in the IEP. Further, the section includes 
provisions relating to children with disabilities in adult 
prisons.
    ``Section 614(e) provides that nothing in the section shall 
be construed to require the IEP team to include information 
under one component of a child's IEP that is already contained 
under another component.
    ``Section 614(f) requires that each SEA or LEA ensure that 
the parents of each disabled child are members of any group 
that makes decisions on the educational placement of their 
child.
    ``Section 615(a) provides that any SEA, State agency, or 
LEA that receives part B funds must 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 that procedural safeguards 
include: parental opportunity to examine all relevant records 
on their child; procedures to protect the rights of the child 
whenever the parents are not known, can't be located after 
reasonable efforts, or the child is a State ward, including 
appointing a surrogate parent for the child; written prior 
notice to the parents, provided in their native language, 
unless it is clearly not feasible to do so; an opportunity for 
mediation and to present complaints; notice by the parents or 
their attorney in the complaint, including information about 
the child, the problem, and a possible solution known and 
available at the time; and development of a model by the SEA to 
assist parents in providing notice.
    ``Section 615(c) describes the content of the prior written 
notice provided by the agency.
    ``Section 615(d) describes the content and timing of the 
procedural safeguards notice given to the parents.
    ``Section 615(e) requires SEAs or LEAs to make mediation 
available to parents, but provides that it is voluntary for 
both parties to determine whether they want to participate, and 
is not used to deny or delay a parent's right to a due process 
hearing under section 615, or to deny any other rights afforded 
under part B. The section authorizes LEAs to require parents, 
before requesting a due process hearing, to attend a meeting at 
which representatives from Parent Training Centers or other 
alternative dispute resolution groups would explain the 
benefits of mediation and encourage its use.
    ``Section 615(f) requires that whenever a complaint has 
been received, the parents involved in the complaint must have 
an opportunity for an impartial due process conducted by the 
SEA or LEA, and also outlines the requirements for the hearing 
process.
    ``Section 615(g) provides that any party aggrieved by a due 
process hearing conducted by the LEA may appeal the decision to 
the SEA.
    ``Section 615(h) lists the procedural safeguards rights 
that are available to any party to a due process hearing or an 
appeal, including the right to a written, or, at the option of 
the parents, electronic verbatim record of the hearing and 
electronic findings of fact and decisions.
    ``Section 615(i) provides that any party aggrieved by the 
findings and decision in this section, or in section 615(g), 
has the right to bring a civil action in a State court or in a 
District Court of the United States without regard to the 
amount in question. This section permits the award of 
attorneys' fees and lists the considerations for reducing 
attorney's fees.
    ``Section 615(j) provides that, except as provided in 
615(k), the child must remain in the current educational 
setting while any proceedings conducted under this section are 
pending.
    ``Section 615(k) provides two exceptions to the pendency 
provision under section 615(j): first, with respect to a 
situation in which a disabled child carries a weapon to school 
or a school function or knowingly possesses or uses illegal 
drugs or sells or solicits the sale of a controlled substance 
while at school or at a school function; and second, with 
respect to a situation in which a child's actions are 
substantially likely to result in injury to the child or 
others, as determined by a hearing officer. The section sets 
out conditions and procedures relating to placing a child in an 
alternative educational setting, conducting a manifestation 
determination, required actions by the LEA when the child's 
behavior was not a manifestation of the child's disability, and 
the required hearing procedures and pendency provisions. The 
section also sets out protections for children not yet eligible 
for special education; includes a provision relating to 
referral to and action by law enforcement and judicial 
authorities; and includes definitions of `controlled 
substance', `illegal drug', and `weapon'.
    ``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 part B, including: arranging for the provision 
of technical assistance to the States; the issuance of rules 
and regulations to the extent necessary to ensure compliance 
with part B;confidentiality; and the hiring of personnel to 
conduct data collection and evaluation activities.
    ``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, and permits States and 
the Secretary of the Interior to obtain the data through 
sampling. The section also requires each State to collect and 
examine data each year to determine if significant 
disproportionality based on race is occurring in the 
identification and placement of children with disabilities, and 
provides that if a situation is identified, the State must 
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) includes the allotment formula for the 
Preschool Grants program.
    ``Section 619(d) describes the general amount of Preschool 
Grant funds that may be retained by the State.
    ``Section 619(e) specifies the use of Preschool Grant funds 
for State administration.
    ``Section 619(f) specifies the use of Preschool Grant funds 
for other State-level activities.
    ``Section 619(g) provides for subgrants to LEAs.
    ``Section 619(h) provides that part C of this Act does not 
apply to any child with a disability receiving a free 
appropriate public education in accordance with part B, with 
Preschool Grant funds.
    ``Section 619(i) includes a special definition of `State' 
for purposes of allocating funds under the Preschool Grants 
program.
    ``Section 619(j) authorizes an appropriation of $500 
million for FY 1998 and such sums as may be necessary for each 
subsequent fiscal year.

                                ``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 the key terms used in this part, 
including `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 for infants and 
toddlers with disabilities and their families.
    ``Section 634 establishes the criteria each State must meet 
to be eligible for a grant under this Part including: 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 provision of a 
statewide system of early intervention services which meets the 
requirements of section 635.
    ``Section 635(a) establishes the minimum components for a 
statewide system of early intervention services including: a 
definition of developmental delay; a timely, comprehensive, 
multidisciplinary evaluation of each infant or toddler; an 
Individualized Family Service Plan in accordance with section 
636; a comprehensive child find system consistent with Part B; 
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 for the administration and supervision of the 
statewide program; a policy pertaining to contracting with 
service providers; a procedure for reimbursement of funds; 
procedural safeguards; a system for compiling data; a State 
interagency coordinating council that meets the requirements of 
section 641; and a policy for ensuring that early intervention 
services are provided in natural environments to the maximum 
extent appropriate.
    ``Section 635(b) allows the State to make ongoing, good 
faith efforts to recruit and hire appropriately and adequately 
trained personnel and, where there is a shortage of such 
personnel, to use the most qualified individuals available who 
are making satisfactory progress toward completing course work 
necessary to meet State certification standards.
    ``Section 636(a) requires the statewide system to provide 
for each infant or toddler with a disability, and each family, 
to receive: a multidisciplinary assessment; a family-directed 
assessment; and a written individualized family service plan 
(IFSP) developed by a multidisciplinary team, including the 
parents.
    ``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 IFSP be developed within a 
reasonable time after the assessment, and provides that, 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 informed 
written consent before implementation of the IFSP, and permits 
the delivery of only those services for which consent has been 
given.
    ``Section 637(a) requires that 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, and describes the information required to be in the 
application.
    ``Section 637(b) lists the assurances that the State must 
include in its application to the Secretary.
    ``Section 637(c) provides that the Secretary may not 
disapprove a State's application without first determining, 
after notice and opportunity for a hearing, that the 
application fails to comply with the requirements of this 
section.
    ``Section 637(d) provides that if a State already has on 
file with the Secretary policies and procedures that 
demonstrate that it meets any requirement of part C, the 
Secretary shall treat the State as meeting that requirement for 
purposes of receiving a grant under part C.
    ``Section 637(e) provides that an application submitted by 
a State in accordance with section 637 shall remain in effect 
until the State submits to the Secretary such modifications it 
determines necessary.
    ``Section 637(f) allows the Secretary to require the State 
to modify the State's application but only to the extent 
necessary to ensure the State's compliance with Part C, Infants 
and Toddlers with Disabilities program.
    ``Section 638 lists the allowable use of funds under part 
C, including providing greater flexibility in addressing the 
needs of at risk infants and toddlers in those States not 
currently serving such children.
    ``Section 639(a) details the minimum procedural safeguards 
a State shall have in place.
    ``Section 639(b) provides that during the pendency of any 
proceeding or action involving a complaint by the parents, the 
infant or toddler shall continue to receive the early 
intervention services currently being delivered, or if applying 
for initial services, shall receive the services not in 
dispute.
    ``Section 640(a) provides that funds under part C may not 
be used to pay for services which would have been paid for by 
another source, including any medical program administered by 
the Department of Defense, but for the enactment of part C, 
except to prevent a delay in the provision of early 
intervention services pending reimbursement from the agency 
which has ultimate responsibility for the payment.
    ``Section 640(b) prohibits the State from reducing medical 
or other assistance available or from altering eligibility 
under title V of the Social Security Act (relating to maternal 
and child health) or to title XIX of the Social Security Act 
(relating to Medicaid for infants or toddlers with 
disabilities) within the State.
    ``Section 641(a) 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.
    ``Section 641(b) prescribes the composition of the council, 
including: 20% parent members; 20% service provider members; 
and at least one member representing the State legislature, 
personnel preparation, each of the State agencies providing or 
paying for early intervention services; and other members 
selected by the Governor.
    ``Section 641(c) requires the council to meet at least 
quarterly, and to conduct meetings that have been publicly 
announced and are open and accessible to the general public.
    ``Section 641(d) allows the council, subject to the 
approval of the Governor, to use funds under this part to 
conduct hearings and forums, reimburse council members for 
necessary expenses related to attending meetings, hire staff, 
and for other purposes.
    ``Section 641(e) describes the functions of the council.
    ``Section 641(f) prohibits any member of the council from 
voting on any matter which would give the appearance of a 
conflict of interest.
    ``Section 642 provides that sections 616, 617, 618, and 620 
shall, to the extent not inconsistent with part C, apply to the 
program authorized under this part.
    ``Section 643(a) allows the Secretary to reserve up to one 
percent of the funds from the appropriation for payment to the 
outlying areas, and exempts those 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 the part C 
funds will be distributed to the States.
    ``Section 643(d) allows the Secretary to re-allot any funds 
refused by a State to the remaining States.
    ``Section 644(a) requires the Secretary to establish a 
Federal Interagency Coordinating Council to minimize 
duplication of programs and activities across Federal, State, 
and local agencies, ensure the effective coordination of 
Federal early intervention and preschool programs across 
Federal agencies, and for other coordinating purposes.
    ``Section 644(b) prescribes the composition of the Council.
    ``Section 644(c) requires the council to meet at least 
quarterly, and to conduct meetings that have been publicly 
announced and are open and accessible to the general public.
    ``Section 644(d) describes the functions of the Council.
    ``Section 644(e) prohibits any member of the Council from 
voting on any matter which would give the appearance of a 
conflict of interest under Federal law.
    ``Section 644(f) exempts the Federal Advisory Committee Act 
(5 U.S.C. App.) from applying to the establishment or operation 
of the Council.
    ``Section 645 authorizes an appropriation of $400,000,000 
for fiscal year 1998, and such sums as may be necessary for 
each of the fiscal years 1999 through 2002.

                          ``part d--subpart 1

    ``Section 651(a) sets out congressional findings in support 
of a new program of grants to States to support the development 
and implementation of plans to improve their systems for 
educating children with disabilities. The program would be 
authorized by Subpart 1 of a new Part C of the IDEA.
    ``Section 651(b) would provide that the purpose of the new 
program is to assist SEAs and their partners in the State in 
reforming and improving their systems for providing 
educational, early intervention, and transitional services to 
improve results for children with disabilities.
    ``Section 652(a) permits an SEA to apply for a grant under 
subpart 1 or a period of not less than one year and not more 
than five years.
    ``Section 652(b) requires an SEA that wants to apply for a 
grant to establish a partnership with LEAs and other State 
agencies involved in, or concerned with, the education of 
children with disabilities, and to work in partnership with 
other organizations and individuals involved in and concerned 
with the education of children with disabilities. The SEA must 
involve identified individuals and organizations in the 
partnership, and may include others at its discretion.
    ``Section 653 describes the material (including a 
comprehensive needs assessment and a description of the 
strategies the State will use to meet those needs) that must be 
included in a State's application under Subpart 1, the process 
by which the Secretary makes competitive awards to States, and 
the obligation of States receiving grants to submit regular 
performance reports to the Secretary.
    ``Section 654 describes the permissible uses of a State 
Improvement grant, and requires each State to use a substantial 
part of its grant to ensure that there are sufficient personnel 
who have the skills and knowledge necessary to meet the needs 
of children with disabilities in the State.
    ``Section 655 establishes minimum grant amounts for States 
whose applications are approved, allows the Secretary to 
increase the minimum amounts in later years to account for 
inflation, and lists the factors the Secretary considers in 
setting the amount of individual grants.
    ``Section 656 authorizes the appropriation of such sums as 
may be necessary to carry out Subpart 1 for each of the fiscal 
years 1998 through 2002.

                          ``part d--subpart 2

    ``Section 661(a), which is similar to current section 
610(a), requires the Secretary to develop and implement a 
comprehensive plan for activities under Subpart 2 of Part D, in 
order to assist States and LEAs in providing educational, 
related, and early intervention services to children with 
disabilities under Parts B and C of the IDEA. In developing 
that plan, the Secretary is required to consult with 
individuals with disabilities; parents of children with 
disabilities; appropriate professionals; and representatives of 
SEAs, LEAs, private schools, institutions of higher education, 
other Federal agencies, the National Council on Disabilities, 
and national organizations with an interest in, and expertise 
in, providing services to children with disabilities and their 
families.
    ``Section 661(b)(1) replaces the individual statements of 
eligibility that are now scattered throughout the discretionary 
program authorities with a single comprehensive statement that, 
except as otherwise provided, those eligible to apply for 
awards under Subpart 2 are: (1) SEAs; (2) LEAs; (3) 
institutions of higher education; (4) other public agencies; 
(5) private nonprofit organizations; (6) Indian tribes and 
tribal organizations; and (7) when the Secretary finds it 
appropriate in light of the purposes of the particular 
competition, for-profit organizations.
    ``Section 661(b)(2) permits the Secretary to limit 
individual competitions to one or more categories of eligible 
entities listed above.
    ``Section 661(c) affords the Secretary some flexibility in 
using funds under Subpart 2 by allowing the Secretary to use up 
to 20 percent of the funds available under Chapter 1 or Chapter 
2 for activities authorized by the other chapter, or for any 
combination of activities consistent with the purposes of 
either or both chapters.
    ``Section 661(d), relating to special populations, is based 
on current section 610(b) and (j). Paragraph (1) directs the 
Secretary, as appropriate, in making awards under Subpart 2, to 
require applicants to demonstrate how they will address the 
needs of children with disabilities from minority backgrounds.
    ``Section 661(d)(2)(A) further directs the Secretary, 
notwithstanding any other provision of the IDEA, to ensure that 
at least one percent of the total amount of funds appropriated 
for Subpart 2 is used to provide outreach and technical 
assistance to Historically Black Colleges and Universities 
(HBCUs), and to institutions of higher education with minority 
enrollments of at least 25 percent, to promote their 
participation in activities under the Subpart 2 programs; and 
to enable those HBCUs and institutions to assist others in 
improving educational results for children with disabilities. 
Paragraph (3)(B) would allow the Secretary to reserve funds 
appropriated under Parts D through G (and, for fiscal year 
1996, under Parts C through G) to meet that requirement. These 
provisions are analogous to current section 610(j)(2)(C)(iii).
    ``Section 661(e) enables the Secretary to give priority to 
particular types of projects without requiring public comment.
    ``Section 661(f)(1) directs the Secretary to require that 
applicants for, and recipients of, awards under Subpart 2 
involve individuals with disabilities and parents of 
individuals with disabilities in planning, implementing, and 
evaluating projects, and, where appropriate, determine their 
projects' potential for replication and widespread adoption. 
Paragraph (2) permits the Secretary to require that those 
applicants and recipients share in the cost of projects; 
prepare their findings and products in formats useful for 
specific audiences; disseminate their findings and products; 
and collaborate with other recipients. These two paragraphs 
replace current section 610(g).
    ``Section 661(g), which is similar to current section 
610(h), provides for peer review of applications under Subpart 
2 for more than $75,000. (The current threshold is $60,000.) 
Separate peer-review provisions for State Improvement Plans 
under the new Subpart 1 apply to that program.
    ``Section 661(h) allows the Secretary to use funds 
appropriated to carry out Subpart 2 to evaluate activities 
carried out under that subpart.
    ``Section 661(i) ensures that the needs of children with 
low-incidence disabilities continue to be met during the 
implementation of the new, more flexible authorities by 
guaranteeing that, however the Secretary implements those 
authorities, certain absolute dollar amounts continue to be 
spent in the following specified areas: (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; and (3) $4,000,000 to address the special 
educational, related services, and transitional needs of 
children with emotional disturbance and those who are at risk 
of developing an emotional disturbance. Paragraph (2) provides 
for a proportionate reduction of these amounts if the total 
amount appropriated for any fiscal year for Subpart 2 falls 
below $130 million.
    ``Section 661(j) restricts a State educational agency and 
local educational agency from being eligible for research, 
personnel training, technical assistance, support and 
dissemination grants unless the State is eligible for a 
preschool grant.

                              ``Chapter 1

    ``Section 671(a) sets out congressional findings in support 
of the Chapter 1 program. Section 671(b) provides that the 
purpose of Chapter 1 is to provide Federal funding for certain 
coordinated research, demonstration projects, outreach, and 
personnel-preparation activities that are linked with, and 
promote, systemic change; and that improve early intervention, 
educational, and transitional results for children with 
disabilities.
    ``Section 672(a) directs the Secretary to make competitive 
awards to eligible entities to produce and advance the use of 
knowledge for six specified purposes.
    ``Section 672(b) directs the Secretary to support 
activities, consistent with the objectives described in section 
672(a), that lead to the production of new knowledge, and lists 
a variety of specific activities that may be carried out.
    ``Section 672(c) directs the Secretary to support 
activities, consistent with the objectives described in section 
672(a), that integrate research and practice, including 
activities that support State systemic-change and local 
capacity-building and improvement efforts, and lists examples 
of activities that may be carried out under this subsection.
    ``Section 672(d) directs the Secretary to support 
activities, consistent with the objectives described in section 
672(a), that improve the use of professional knowledge, 
including activities that support State systemic-change and 
local capacity-building and improvement efforts, and lists 
examples of activities that may be carried out under this 
subsection.
    ``Section 672(e) requires the Secretary, in carrying out 
section 632, to ensure that there is an appropriate balance 
among knowledge production, integration of research and 
practice, and use of professional knowledge; and across all age 
ranges of children with disabilities.
    ``Section 672(f) requires an eligible entity that wishes to 
receive an award under section 672 to submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may require.
    ``Section 672(g) authorizes the appropriation of such sums 
as may be necessary to carry out section 672 for each of the 
fiscal years 1998 through 2002.
    ``Section 673(a) directs the Secretary to make competitive 
awards to eligible entities to help address State-identified 
needs for qualified personnel in special education, related 
services, early intervention, and regular education to work 
with children with disabilities; and to ensure that those 
personnel have the skills and knowledge reflecting successful 
practices determined through research and practice that are 
needed to serve those children.
    ``Section 673(b) directs the Secretary, in carrying out 
section 673, to support activities, consistent with the 
objectives described in section 673(a), that benefit children 
with low-incidence disabilities; identifies examples of 
activities that may be carried out under this subsection; 
defines the term ``low-incidence disability''; and permits the 
Secretary to give preference to applications that propose to 
prepare personnel in more than one low-incidence disability, 
such as deafness or blindness.
    ``Section 673(c) directs the Secretary to support 
leadership-preparation activities that are consistent with the 
objectives described in section 673(a), and lists examples of 
specific activities that may be carried out under this 
subsection.
    ``Section 673(d) directs the Secretary to support 
activities, consistent with the objectives described in section 
673(a), that are of national significance and have broad 
applicability, and lists examples of specific activities that 
may be carried out under this subsection.
    ``Section 673(e) directs the Secretary to support 
activities, consistent with the objectives described in section 
673(a), to benefit children with high-incidence disabilities, 
and lists examples of specific activities that may be carried 
out under this subsection.
    ``Section 673(f) requires an eligible entity that wishes to 
receive an award under section 673 to submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may require, and describes certain 
material that must be included, or that the Secretary may 
require to be included, in applications for funds to carry out 
certain activities.
    ``Section 673(g) establishes various rules for the 
selection of recipients under section 673.
    ``Section 673(h) requires applicants for certain projects 
under section 673 to provide an assurance that they will ensure 
that individuals who receive scholarship assistance under the 
proposed project will subsequently work in the area for which 
they received training or repay all or part of that assistance, 
in accordance with regulations issued by the Secretary.
    ``Section 673(i) permits the Secretary to include funds for 
scholarships, with necessary stipends and allowances, in awards 
under section 633.
    ``Section 673(j) authorizes the appropriation of such sums 
as may be necessary to carry out section 673 for each of the 
fiscal years 1998 through 2002.
    ``Section 674(a) directs the Secretary to assess progress 
in the implementation of the IDEA, including the effectiveness 
of State and local efforts to provide a free appropriate public 
education to children with disabilities, and to provide early 
intervention services to infants and toddlers with disabilities 
and infants and toddlers at risk for developmental delay. To 
that end, the Secretary may support studies, evaluations, and 
assessments, including various studies described in this 
subsection.
    ``Section 674(b) directs the Secretary to carry out a 
national assessment of activities carried out with Federal 
funds under the IDEA in order to: (1) determine the 
effectiveness of the IDEA in achieving its purposes; (2) 
provide information to the President, the Congress, the States, 
LEAs, and the public on how to implement the IDEA more 
effectively; and (3) provide the President and the Congress 
with information that will be useful in developing legislation 
to achieve the purposes of the IDEA more effectively. An 
interim report is due to Congress by October 1, 1999; and a 
final report of the findings of the assessment is due by 
October 1, 2001.
    ``Section 674(c) requires the Secretary to provide an 
annual report to Congress that includes an analysis and summary 
of the data reported by the States and the Secretary of the 
Interior under section 618; the results of activities conducted 
under section 674(a); and the findings and determinations 
resulting from reviews of State implementation of the IDEA.
    ``Section 674(d) directs the Secretary to provide technical 
assistance to LEAs to assist them in carrying out local 
capacity-building and improvement projects under section 611(e) 
of Part B.
    ``Section 674(e) allows the Secretary to reserve up to one-
half of one percent of the amount appropriated under Parts B 
and C for each fiscal year to carry out section 674.

                              ``Chapter 2

    ``Section 681(a) sets out congressional findings in support 
of Chapter 2.
    ``Section 681(b) provides that the purposes of Chapter 2 
are to ensure that: (1) children with disabilities, and their 
parents, receive training and information on their rights and 
protections under the IDEA; (2) parents, teachers, 
administrators, early intervention personnel, related services 
personnel, and transition personnel receive coordinated and 
accessible technical assistance and information to assist them 
to improve services and results for children with disabilities 
and their families; (3) appropriate technology and media 
areresearched, developed, demonstrated, and made available in timely 
and accessible formats to parents, teachers, and all types of personnel 
providing services to children with disabilities; (4) on reaching the 
age of majority under State law, children with disabilities understand 
their rights and responsibilities under Part B of the IDEA, if the 
State provides for the transfer of parental rights under Part B; and 
(5) the general welfare of deaf and hard-of-hearing individuals is 
promoted.
    ``Section 682(a) authorizes the Secretary to make awards to 
parent organizations to support parent training and information 
(PTI) centers.
    ``Section 682(b) requires each PTI center assisted under 
section 682 to carry out a variety of specified activities.
    ``Section 682(c) identifies additional activities that PTI 
centers may, but are not required, to carry out.
    ``Section 682(d) requires each application for a PTI center 
to identify the special efforts that the applicant will 
undertake to: (1) ensure that the needs for training and 
information of underserved parents of children with 
disabilities in the area to be served are effectively met; and 
(2) work with community-based organizations.
    ``Section 682(e)(1) requires the Secretary to make at least 
one award to a parent organization in each State, unless the 
Secretary does not receive an application from a parent 
organization in the State of sufficient quality to warrant 
approval.
    ``Section 682(e)(2) requires the Secretary to select among 
applications submitted by parent organizations so as to ensure 
the most effective assistance to parents, including parents in 
urban and rural areas in the State.
    ``Section 682(f) requires the board of directors or special 
governing committee of each organization that receives an award 
for a parent training and information center to meet at least 
once in each calendar quarter to review the activities for 
which the award was made.
    ``Section 682(g) identifies the characteristics of those 
private nonprofit organizations that qualify as ``parent 
organizations'' and that are, therefore, eligible to apply for 
PTI center awards under section 682. In addition to other 
requirements, such an organization must either have a board of 
directors the majority of whom are parents of children with 
disabilities or have established a special governing committee 
for the PTI center that meets that condition.
    ``Section 683(a) authorizes the Secretary to make awards to 
local parent organizations to support local parent training and 
information centers that will help ensure that underserved 
parents of children with disabilities have the training and 
information they need to enable them to participate effectively 
in helping their children with disabilities: (1) meet 
developmental goals and, to the maximum extent possible, those 
challenging standards that have been established for all 
children; and (2) be prepared to lead productive, independent 
adult lives to the maximum extent possible.
    ``Section 683(b) identifies certain activities that each 
local PTI center assisted under section 683 must carry out.
    ``Section 683(c) defines the term ``local parent 
organization'', as used in section 683.
    ``Section 684(a) would authorize the Secretary to provide 
technical assistance for developing, assisting, and 
coordinating parent training and information carried out by PTI 
centers assisted under sections 682 and 683.
    ``Section 684(b) would allow the Secretary to focus 
technical assistance under section 684 on various areas.
    ``Section 685(a) directs the Secretary to provide technical 
assistance and information to interested parties in order to 
improve early intervention, educational, and transitional 
services and results for children with disabilities and their 
families, and to address systemic-change goals and priorities.
    ``Section 685(b) directs the Secretary to carry out or 
support technical assistance activities, consistent with the 
objectives described in section 685(a), relating to systemic 
change, and identifies examples of specific activities that are 
authorized under this subsection.
    ``Section 685(c) directs the Secretary to carry out or 
support activities, consistent with the objectives described in 
section 685(a), relating to specific topics or populations, and 
identifies examples of specific activities that are authorized 
under this subsection.
    ``Section 685(d) directs the Secretary to carry out or 
support information dissemination activities that are 
consistent with the objectives described in section 685(a), 
including activities that address national needs for the 
preparation and dissemination of information relating to 
eliminating barriers to systemic-change and improving early 
intervention, educational, and transitional results for 
children with disabilities.
    ``Section 685(e) requires an eligible entity that wishes to 
receive an award under section 685 to submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may require.
    ``Section 686 authorizes the appropriation of such sums as 
may be necessary to carry out sections 681 through 685 for each 
of the fiscal years 1998 through 2002.
    ``Section 687(a) directs the Secretary to make competitive 
awards to eligible entities to support technology development, 
demonstration, and utilization activities described in section 
687(b) and educational media services activities described in 
section 687(c). Subsection (d) requires any eligible entity 
that wishes to receive an award under section 687 to submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require. 
Subsection (e) authorizes the appropriation of such sums as may 
be necessary to carry out section 687 for each of the fiscal 
years 1998 through 2002.

                        miscellaneous provisions

    Section 201 of the bill specifies effective dates.
    Section 202 of the bill provides that notwithstanding any 
other provision of law, beginning on October 1, 1997, the 
Secretary of Education may use funds appropriated under part D 
of the Individuals with Disabilities Education Act to make 
continuation awards that were funded under Section 618 and 
parts C through G of such Act (as in effect on September 30, 
1997).
    Section 203 of the bill repeals part I of the Individuals 
with Disabilities Education Act, effective October 1, 1998; 
repeals part H of such Act, effective July 1, 1998; and repeals 
parts C, E, F, and G, 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.

                   Constitutional Authority Statement

    The provisions of the Individuals with Disabilities 
Education Act and the amendments made thereto by H.R. 5 are 
within the powers of Congress under the spending clause of the 
constitution, Article I section 8, clause 1.

                    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 of H.R. 5.

                           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. 5. 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)(B) of 
rule XI 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 House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 5 from the Director of the Congressional Budget 
Office:
                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 9, 1997.
Hon. William F. Goodling,
Chairman, Committee on Education and the Workforce,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5, the Individuals 
with Disabilities Act Amendments of 1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Justin Latus.
            Sincerely,
                                         June E. O'Neill, Director.

H.R. 5--Individuals with Disabilities Education Act Amendments of 1997

    Summary: H.R. 5 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. 5 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.
    The bill would give states the option to expand the 
definition of developmentally disabled children to include 
children aged 6 to 9, and in doing so would increase 
authorizations of appropriations for the permanently authorized 
general grants to states program by about $200 million a year. 
H.R. 5 would reduce authorizations of appropriations for the 
permanently authorized preschool grant program by $400 million 
in 1998.
    H.R. 5 would also reauthorize several programs that have 
expired, including the infants and toddlers program and the 
special purpose funds. The bill would reauthorize the special 
purpose funds and also consolidate fourteen separate programs 
that received an appropriation in 1997 into five new programs. 
These reauthorizations total $700 million to $800 million a 
year.
    This cost estimate describes what H.R. 5 would authorize 
for spending on programs under the Individuals With 
Disabilities Education Act. Since all IDEA spending is 
discretionary, however, the amount that will actually be spent 
on this program will be determined in the annual appropriations 
process. For example, although total authorizations of 
appropriations under H.R. 5 in fiscal year 1998 are $16 
billion, the program was funded at $4 billion in fiscal year 
1997.
    The provisions of H.R. 5 are excluded from consideration 
under the Unfunded Mandates Reform Act because they would 
``establish or enforce statutory rights that prohibit 
discrimination on the basis of * * * handicap, or disability.''
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 5 is shown in the following tables.

                                  TABLE 1: ESTIMATED BUDGETARY IMPACT OF H.R. 5                                 
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
                                         WITH ADJUSTMENTS FOR INFLATION                                         
                                                                                                                
Authorizations of appropriations under current law:                                                             
    Estimated authorization...............................    4,036   15,927   16,664   17,424   18,224   19,064
    Estimated outlays.....................................    3,320    4,988   12,394   15,924   17,239   18,030
Propsoed changes:                                                                                               
    Estimated authorization...............................        0      523      952      982    1,013    1,045
    Estimated outlays.....................................        0       52      409      800      955    1,005
Authorizations of appropriations under H.R. 5:                                                                  
    Estimated authorization...............................    4,036   16,449   17,616   18,406   19,237   20,109
    Estimated outlays.....................................    3,320    5,040   12,803   16,724   18,194   19,035
                                                                                                                
                                        WITHOUT ADJUSTMENTS FOR INFLATION                                       
                                                                                                                
Authorizations of appropriations under current law:                                                             
    Estimated authorization...............................    4,036   15,927   16,664   17,424   18,224   19,064
    Estimated outlays.....................................    3,320    4,988   12,394   15,924   17,239   18,030
Proposed Changes:                                                                                               
    Estimated authorization...............................        0      523      933      943      953      964
    Estimated outlays.....................................        0       52      407      784      920      951
Authorizations of appropriations under H.R. 5:                                                                  
    Estimated authorization...............................    4,036   16,449   17,596   18,367   19,177   20,029
    Estimated outlays.....................................    3,320    5,040   12,801   16,709   18,159   18,981
----------------------------------------------------------------------------------------------------------------
Notes: The 1997 levels are the amounts appropriated. Components may not sum to totals because of rounding.      

    The costs of this legislation fall within budget function 
500 (education, training, employment, and social services).

             TABLE 2: ESTIMATED BUDGETARY IMPACT OF H.R. 5--BY PART, WITH ADJUSTMENTS FOR INFLATION             
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
Part B--General grants:                                                                                         
    Estimated authorization...............................        0      204      214      224      234      245
    Estimated outlays.....................................        0       20      144      201      221      232
Part B--Preschool grants:                                                                                       
    Estimated authorization...............................        0     -400        0        0        0        0
    Estimated outlays.....................................        0      -40     -240     -100      -20        0
Part C:                                                                                                         
    Estimated authorization...............................        0      400      411      422      433      445
    Estimated outlays.....................................        0       40      281      389      419      430
Part D--Subpart 1:                                                                                              
    Estimated authorization...............................        0      104      107      110      113      116
    Estimated outlays.....................................        0       10       73      101      109      112
Part D--Subpart 2, section 672:                                                                                 
    Estimated authorization...............................        0      110      113      116      119      122
    Estimated outlays.....................................        0       11       77      107      115      118
Part D--Subpart 2, section 673:                                                                                 
    Estimated authorization...............................        0       50       51       53       54       56
    Estimated outlays.....................................        0        5       35       49       52       54
Part D--Subpart 2, Section 686:                                                                                 
    Estimated authorization...............................        0       25       26       26       27       28
    Estimated outlays.....................................        0        3       18       24       26       27
Part D--Subpart 2, section 687:                                                                                 
    Estimated authorization...............................        0       30       31       32       32       33
    Estimated outlays.....................................        0        3       21       29       31       32
      Part D--Subtotal:                                                                                         
        Estimated authorization...........................        0      319      328      336      345      355
        Estimated outlays.................................        0       32      224      310      334      343
        Total:                                                                                                  
          Estimated authorization.........................        0      523      952      982    1,013    1,045
          Estimated outlays...............................        0       52      409      800      955    1,005
----------------------------------------------------------------------------------------------------------------
Notes: The 1997 levels are the amounts appropriated. Components may not sum to totals because of rounding.      


            TABLE 3: ESTIMATED BUDGETARY IMPACT OF H.R. 5--BY PART, WITHOUT ADJUSTMENTS FOR INFLATION           
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
Part B--General grants:                                                                                         
    Estimated authorization...............................        0      204      214      224      234      245
    Estimated outlays.....................................        0       20      144      201      221      232
Part B--Preschool grants:                                                                                       
    Estimated authorization...............................        0     -400        0        0        0        0
    Estimated outlays.....................................        0      -40     -240     -100      -20        0
Part C:                                                                                                         
    Estimated authorization...............................        0      400      400      400      400      400
    Estimated outlays.....................................        0       40      280      380      400      400
Part D--Subpart 1:                                                                                              
    Estimated authorization...............................        0      104      104      104      104      104
    Estimated outlays.....................................        0       10       73       99      104      104
Part D--Subpart 2, Section 672:                                                                                 
    Estimated authorization...............................        0      110      110      110      110      110
    Estimated outlays.....................................        0       11       77      105      110      110
Part D--Subpart 2, Section 673:                                                                                 
    Estimated authorization...............................        0       50       50       50       50       50
    Estimated outlays.....................................        0        5       35       48       50       50
Part D--Subpart 2, Section 686:                                                                                 
    Estimated authorization...............................        0       25       25       25       25       25
    Estimated outlays.....................................        0        3       18       24       25       25
Part D--Subpart 2, Section 687:                                                                                 
    Estimated authorization...............................        0       30       30       30       30       30
    Estimated outlays.....................................        0        3       21       29       30       30
      Part D--Subtotal:                                                                                         
        Estimated authorization...........................        0      319      319      319      319      319
        Estimated outlays.................................        0       32      223      303      319      319
        Total:                                                                                                  
          Estimated authorization.........................        0      523      933      943      953      964
          Estimated outlays...............................        0       52      407      784      920      951
----------------------------------------------------------------------------------------------------------------
Notes: The 1997 levels are the amounts appropriated. Components may not sum to totals because of rounding.      

    Basis of estimate: The spending that would occur under H.R. 
5 would be subject to the availability of appropriated funds. 
Estimated outlays are based on the historical spending of 
programs authorized by IDEA. Parts A, B, and C would be 
effective on July 1, 1998, and Part D would be effective on 
October 1, 1997.

                                 Part B

    H.R. 5 would revise Part B of IDEA, including the program 
of general grants to states. Current law permanently authorizes 
such sums as may be 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 40 percent of the average per pupil 
expenditure. H.R. 5 would give states the option to expand the 
definition of children with disabilities to include children 
aged 6 to 9 who are determined to be developmentally delayed 
(i.e., experiencing delays in physical, cognitive, 
communication, social, emotional, or adaptive development). 
This expansion of eligibility by about 10 percent would 
increase the authorizations of appropriations by about $200 
million in 1998 and $1.1 billion over the 1998-2002 period, 
including adjustments for increases in the number of disabled 
children and costs per pupil.
    H.R. 5 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. Authorizations of 
appropriations for 1998 under current law are estimated to be 
about $900 million. H.R. 5 would authorize appropriations for 
preschool children with disabilities of $500 million in fiscal 
year 1998 and such sums as necessary in subsequent years. The 
bill would remove the limit on the grant amount per child. CBO 
estimates that H.R. 5 would decrease authorizations of 
appropriations by $400 million in 1998. This authorization 
level represents an increase, however, over the fiscal year 
1997 appropriation for grants for preschool children of $360 
million.

                                 Part C

    Part C of H.R. 5 would authorize $400 million in 1998 and 
such sums as necessary in fiscal years 1999 through 2002 for 
spending on infants and toddlers with disabilities. Part C 
would be similar to part H of current law, which covers infants 
and toddlers with disabilities and which is authorized through 
fiscal year 1997. Budget authority is estimated to increase by 
$400 million in fiscal year 1998 and $2.1 billion over the 
1998-2002 period, with adjustments for inflation. Without 
adjustments for inflation, the total would be $2.0 billion.

                                 Part D

    Part D of H.R. 5 would authorize such sums as necessary for 
grants to fund activities to improve the education of children 
with disabilities for fiscal years 1998 through 2002. The 
fourteen current law special purpose funds that this part would 
replace are not authorized beyond 1997.
    Subpart 1.--Subpart 1 of Part D would authorize 
appropriations for state program improvement grants for 
children with disabilities. This program has no equivalent 
under current law. The program would give money to states to 
improve their systems of delivery of services to children with 
disabilities. States would be required to spend a certain share 
of the grants they receive on training and development of 
personnel who work with children with disabilities. This 
subpart authorizes a maximum grant of $2 million per state for 
each of the fifty states, the District of Columbia, and Puerto 
Rico. CBO uses this maximum amount to estimate total 
authorizations of appropriations for fiscal year 1998 of $104 
million. Authorizations of appropriations would total $550 
million over the 1998-2002 period with adjustments for 
inflation and $520 million without adjustments for inflation.
    Subpart 2.--Section 672 authorizes such sums as necessary 
for ``research and innovation to improve services and results 
for children with disabilities'' for fiscal years 1998 through 
2002. CBO assumes this section would authorize spending on 
activities covered under such current programs as innovation 
and development, deaf-blindness, serious emotional 
disturbances, severe disabilities, early-childhood education, 
secondary and transitional services, postsecondary education, 
and special studies. Using the amounts appropriated for these 
activities in fiscal year 1997 as a benchmark, CBO estimates 
that section 672 would authorize $110 million in fiscal year 
1998, or $580 million over fiscal years 1998-2002, with 
adjustments for inflation. Authorizations of appropriations for 
the same period without adjustments for inflation would total 
$550 million.
    Section 673 authorizes such sums as necessary for 
activities related to the professional development of personnel 
who work with children with disabilities. Current 
authorizations of appropriations for these activities do not 
extend beyond 1997. Personnel development activities under this 
subpart would be implemented by the Secretary of Education, as 
contrasted with the personnel development activities in Subpart 
1 which would be initiated by states. Spending on the current 
personnel development program (conducted by the Secretary of 
Education) was about $100 million in 1997. CBO assumes that 
under H.R. 5, some personnel development spending would be 
shifted to Subpart 1 and that authorizations of appropriations 
under Subpart 2 would be only $50 million fiscal year 1998, or 
about $260 million for fiscal years 1998-2002 when inflation is 
considered. The total for 1998-2002 without adjustments for 
inflation would be $250 million.
    Section 686 would authorize appropriations for parent 
training and information centers and community parent resource 
centers. Current programs that would be authorized under this 
section include parent training, clearinghouses, and regional 
resource centers. Using the 1997 appropriations for these 
programs as a guide, CBO estimates that this section would 
increase authorizations of appropriations by $25 million in 
fiscal year 1998 and $132 million over the 1998-2002 period, 
with adjustments for inflation. The total over the same period 
without adjustments for inflation would be $125 million.
    Section 687 would authorize such sums as necessary for 
activities related to media services and technology 
development, demonstration, and utilization. CBO estimates that 
this section would increase authorizations by $30 million in 
1998. The total increase in authorizations over the 1998-2002 
period would be $158 million with adjustments for inflation, or 
$150 million without adjustments for inflation. CBO used what 
was appropriated for media and captioning services and 
technology applications under the current IDEA law for fiscal 
year 1997 as its basis for estimating these amounts.

                                Repeals

    H.R. 5 repeals parts C, E, F, G, H, and I of current law. 
Authorizations of appropriations for Parts C, E, F, G, and H 
have expired, so repealing these parts would have no budgetary 
impact. Part I is authorized as such sums as may be necessary 
through fiscal year 1998 under the General Education Provisions 
Act (GEPA). (GEPA provides an automatic one-year extension of 
authorizations for all programs in the Department of 
Education.) Since this part (family support) has never received 
an appropriation, the estimate includes no savings from its 
repeal.
    Pay-as-you-go considerations: None.

              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    Section 4 of the Unfunded Mandates Reform Act excludes from 
consideration under that Act any bill that would ``establish or 
enforce statutory rights that prohibit discrimination on the 
basis of . . . handicap, or disability.'' H.R. 5 fits within 
that exclusion because it would ensure that the rights of 
children with disabilities are protected in the public 
education system.
    Estimate Prepared by: Federal Cost: Justin Latus, Impact on 
State, Local and Tribal Governments: Marc Nicole. Impact on the 
Private Sector: Kathryn Rarick.
    Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                             CORRESPONDENCE

                    Committee on National Security,
                                  House of Representatives,
                                       Washington, DC, May 7, 1997.
Hon. William F. Goodling,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: I understand the Committee on Education 
and the Workforce will shortly mark up H.R. 5, the IDEA 
Improvement Act of 1997. The bill includes a provision 
clarifying the circumstances under which the Civilian Health 
and Medical Program of the Uniformed Services (CHAMPUS) 
qualifies as a payor of last resort for infants and toddlers 
who receive medical treatment from the Department of Defense. 
This provision falls within the legislative jurisdiction of the 
Committee on National Security pursuant to House Rule X.
    In recognition of your committee's desire to bring this 
legislation expeditiously before the House of Representatives, 
the Committee on National Security will forego a request for 
sequential referral of the bill, without waiving or diminishing 
this committee's jurisdiction over this provision. Of course, 
this committee will seek the appointment of conferees with 
respect to provisions within its legislative jurisdiction 
during any conference on the bill. I also request that this 
letter be printed in your committee's report on this 
legislation.
    Thank you for your assistance and prompt attention to this 
matter.
    With warm personal regards, I am
            Sincerely,
                                         Floyd D. Spence, Chairman.
                                ------                                

          Committee on Education and the Workforce,
                                  House of Representatives,
                                       Washington, DC, May 7, 1997.
Hon. Floyd Spence,
Chairman, Committee on National Security,
House of Representatives, Washington, DC.
    Dear Chairman Spence: Thank you for working with me in the 
development of H.R. 5, the ``IDEA Improvement Act of 1997'', 
specifically the provision clarifying the ``Payor of Last 
Resort'' found in Section 640 of the matter to be inserted into 
the Individuals with Disabilities Education Act. This provision 
clarifies that funds under Part C of the Act, programs for 
infants and toddlers with disabilities, are truly the payor of 
last resort even for military families who receive medical 
services from the Department of Defense (DOD), specifically the 
Civilian Health and Medical Program of the Uniformed Services 
(CHAMPUS). The Committee does not intend to change what is 
currently covered by DOD programs nor does the Committee expect 
that coverage under DOD medical programs will change.
    As reported by the Committee, the relevant language in 
Section 640 states:
          Nonsubstitution.--Funds provided under section 643 
        may not be used to satisfy a financial commitment for 
        services that would have been paid for from another 
        public or private source, including any medical program 
        administered by the Secretary of Defense, but for the 
        enactment of this part, except that whenever considered 
        necessary to prevent a delay in the receipt of 
        appropriate early intervention services by an infant, 
        toddler, or family in a timely fashion, funds provided 
        under section 643 may be used to pay the provider of 
        services pending reimbursement from the agency that has 
        ultimate responsibility for the payment. (Italic added)
    Based on this provision as written, you will not seek 
referral of H.R. 5 containing this clarification, nor will the 
Committee on National Security seek jurisdiction over this 
provision in the future. The Committee on Education and the 
Workforce holds no jurisdictional interest in CHAMPUS and does 
not intend to change the CHAMPUS program. Again, I thank you 
for working with me to clarify current law, for confirming our 
understanding, and for working with me in developing this 
amendment to H.R. 5.
            Sincerely,
                                           Bill Goodling, Chairman.
                             ROLLCALL VOTES


         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 italics, existing law in which no change is proposed 
is shown in roman):

              INDIVIDUALS WITH DISABILITIES EDUCATION ACT

                      [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 ofFree 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 reponsibilitiesor 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 bein 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 
childwith 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 haveall 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 serviceplan, 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

  [c. 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 tothe 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 andmechanisms 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 thatdevelops 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 ensurethat 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 toidentify 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 
toimprove 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;
          [(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.

    (20 U.S.C. 1462)

            [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) forthe 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 administrativeproceedings, 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 
ofenactment 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.

    (20 U.S.C. 1491a)

[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 inclusivecommunity 
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 payto 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 ofmeaningful 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 leadentity 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 Act may be cited as the ``Individuals 
with Disabilities Education Act''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

                       Part A--General Provisions

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

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

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

             Part C--Infants and Toddlers with Disabilities

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

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

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

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

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

Sec. 661. Administrative provisions.


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


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


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


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

    (c) Findings.--The Congress finds the following:
          (1) Disability is a natural part of the human 
        experience and in no way diminishes the right of 
        individuals to participate in or contribute to society. 
        Improving educational results for children with 
        disabilities is an essential element of our national 
        policy of ensuring equality of opportunity, full 
        participation, independent living, and economic self-
        sufficiency for individuals with disabilities.
          (2) Before the date of the enactment of the Education 
        for All Handicapped Children Act of 1975 (Public Law 
        94-142)--
                  (A) the special educational needs of children 
                with disabilities were not being fully met;
                  (B) more than one-half of the children with 
                disabilities in the United States did not 
                receive appropriate educational services that 
                would enable such children to have full 
                equality of opportunity;
                  (C) 1,000,000 of the children with 
                disabilities in the United States were excluded 
                entirely from the public school system and did 
                not go through the educational process with 
                their peers;
                  (D) there were many children with 
                disabilities throughout the United States 
                participating in regular school programs whose 
                disabilities prevented such children from 
                having a successful educational experience 
                because their disabilities were undetected; and
                  (E) because of the lack of adequate services 
                within the public school system, families were 
                often forced to find services outside the 
                public school system, often at great distance 
                from their residence and at their own expense.
          (3) Since the enactment and implementation of the 
        Education for All Handicapped Children Act of 1975, 
        this Act has been successful in ensuring children with 
        disabilities and the families of such children access 
        to a free appropriate public education and in improving 
        educational results for children with disabilities.
          (4) However, the implementation of this Act has been 
        impeded by low expectations, and an insufficient focus 
        on applying replicable research on proven methods of 
        teaching and learning for children with disabilities.
          (5) Over 20 years of research and experience has 
        demonstrated that the education of children with 
        disabilities can be made more effective by--
                  (A) having high expectations for such 
                children and ensuring their access in the 
                general curriculum to the maximum extent 
                possible;
                  (B) strengthening the role of parents and 
                ensuring that families of such children have 
                meaningful opportunities to participate in the 
                education of their children at school and at 
                home;
                  (C) coordinating this Act with other local, 
                educational service agency, State, and Federal 
                school improvement efforts in order to ensure 
                that such children benefit from such efforts 
                and that special education can become a service 
                for such children rather than a place where 
                they are sent;
                  (D) providing appropriate special education 
                and related services and aids and supports in 
                the regular classroom to such children, 
                whenever appropriate;
                  (E) supporting high-quality, intensive 
                professional development for all personnel who 
                work with such children in order to ensure that 
                they have the skills and knowledge necessary to 
                enable them--
                          (i) to meet developmental goals and, 
                        to the maximum extent possible, those 
                        challenging expectations that have been 
                        established for all children; and
                          (ii) to be prepared to lead 
                        productive, independent, adult lives, 
                        to the maximum extent possible;
                  (F) providing incentives for whole-school 
                approaches and pre-referral intervention to 
                reduce the need to label children as disabled 
                in order to address their learning needs; and
                  (G) focusing resources on teaching and 
                learning while reducing paperwork and 
                requirements that do not assist in improving 
                educational results.
          (6) While States, local educational agencies, and 
        educational service agencies are responsible for 
        providing an education for all children with 
        disabilities, it is in the national interest that the 
        Federal Government have a role in assisting State and 
        local efforts to educate children with disabilities in 
        order to improve results for such children and to 
        ensure equal protection of the law.
          (7)(A) The Federal Government must be responsive to 
        the growing needs of an increasingly more diverse 
        society. A more equitable allocation of resources is 
        essential for the Federal Government to meet its 
        responsibility to provide an equal educational 
        opportunity for all individuals.
          (B) America's racial profile is rapidly changing. 
        Between 1980 and 1990, the rate of increase in the 
        population for white Americans was 6 percent, while the 
        rate of increase for racial and ethnic minorities was 
        much higher: 53 percent for Hispanics, 13.2 percent for 
        African-Americans, and 107.8 percent for Asians.
          (C) By the year 2000, this Nation will have 
        275,000,000 people, nearly one of every three of whom 
        will be either African-American, Hispanic, Asian-
        American, or American Indian.
          (D) Taken together as a group, minority children are 
        comprising an ever larger percentage of public school 
        students. Large-city school populations are 
        overwhelmingly minority, for example: for fall 1993, 
        the figure for Miami was 84 percent; Chicago, 89 
        percent; Philadelphia, 78 percent; Baltimore, 84 
        percent; Houston, 88 percent; and Los Angeles, 88 
        percent.
          (E) Recruitment efforts within special education must 
        focus on bringing larger numbers of minorities into the 
        profession in order to provide appropriate practitioner 
        knowledge, role models, and sufficient manpower to 
        address the clearly changing demography of special 
        education.
          (F) The limited English proficient population is the 
        fastest growing in our Nation, and the growth is 
        occurring in many parts of our Nation. In the Nation's 
        2 largest school districts, limited English students 
        make up almost half of all students initially entering 
        school at the kindergarten level. Studies have 
        documented apparent discrepancies in the levels of 
        referral and placement of limited English proficient 
        children in special education. The Department of 
        Education has found that services provided to limited 
        English proficient students often do not respond 
        primarily to the pupil's academic needs. These trends 
        pose special challenges for special education in the 
        referral, assessment, and services for our Nation's 
        students from non-English language backgrounds.
          (8)(A) Greater efforts are needed to prevent the 
        intensification of problems connected with mislabeling 
        and high dropout rates among minority children with 
        disabilities.
          (B) More minority children continue to be served in 
        special education than would be expected from the 
        percentage of minority students in the general school 
        population.
          (C) Poor African-American children are 2.3 times more 
        likely to be identified by their teacher as having 
        mental retardation than their white counterpart.
          (D) Although African-Americans represent 16 percent 
        of elementary and secondary enrollments, they 
        constitute 21 percent of total enrollments in special 
        education.
          (E) The drop-out rate is 68 percent higher for 
        minorities than for whites.
          (F) More than 50 percent of minority students in 
        large cities drop out of school.
          (9)(A) The opportunity for full participation in 
        awards for grants and contracts; boards of 
        organizations receiving funds under this Act; and peer 
        review panels; and training of professionals in the 
        area of special education by minority individuals, 
        organizations, and historically black colleges and 
        universities is essential if we are to obtain greater 
        success in the education of minority children with 
        disabilities.
          (B) In 1993, of the 915,000 college and university 
        professors, 4.9 percent were African-American and 2.4 
        percent were Hispanic. Of the 2,940,000 teachers, 
        prekindergarten through high school, 6.8 percent were 
        African-American and 4.1 percent were Hispanic.
          (C) Students from minority groups comprise more than 
        50 percent of K-12 public school enrollment in seven 
        States yet minority enrollment in teacher training 
        programs is less than 15 percent in all but six States.
          (D) As the number of African-American and Hispanic 
        students in special education increases, the number of 
        minority teachers and related service personnel 
        produced in our colleges and universities continues to 
        decrease.
          (E) Ten years ago, 12 percent of the United States 
        teaching force in public elementary and secondary 
        schools were members of a minority group. Minorities 
        comprised 21 percent of the national population at that 
        time and were clearly underrepresented then among 
        employed teachers. Today, the elementary and secondary 
        teaching force is 13 percent minority, while one-third 
        of the students in public schools are minority 
        children.
          (F) As recently as 1991, historically black colleges 
        and universities enrolled 44 percent of the African-
        American teacher trainees in the Nation. However, in 
        1993, historically black colleges and universities 
        received only 4 percent of the discretionary funds for 
        special education and related services personnel 
        training under this Act.
          (G) While African-American students constitute 28 
        percent of total enrollment in special education, only 
        11.2 percent of individuals enrolled in preservice 
        training programs for special education are African-
        American.
          (H) In 1986-87, of the degrees conferred in education 
        at the B.A., M.A., and Ph.D levels, only 6, 8, and 8 
        percent, respectively, were awarded to African-American 
        or Hispanic students.
          (10) Minorities and underserved persons are socially 
        disadvantaged because of the lack of opportunities in 
        training and educational programs, undergirded by the 
        practices in the private sector that impede their full 
        participation in the mainstream of society.
    (d) Purposes.--The purposes of this title are--
          (1)(A) to ensure that all children with disabilities 
        have available to them a free appropriate public 
        education that emphasizes special education and related 
        services designed to meet their unique needs and 
        prepare them for employment and independent living;
          (B) to ensure that the rights of children with 
        disabilities and parents of such children are 
        protected; and
          (C) to assist States, localities, educational service 
        agencies, and Federal agencies to provide for the 
        education of all children with disabilities;
          (2) to assist States in the implementation of a 
        statewide, comprehensive, coordinated, 
        multidisciplinary, interagency system of early 
        intervention services for infants and toddlers with 
        disabilities and their families;
          (3) to ensure that educators and parents have the 
        necessary tools to improve educational results for 
        children with disabilities by supporting systemic-
        change activities; coordinated research and personnel 
        preparation; coordinated technical assistance, 
        dissemination, and support; and technology development 
        and media services; and
          (4) to assess, and ensure the effectiveness of, 
        efforts to educate children with disabilities.

SEC. 602. DEFINITIONS.

    Except as otherwise provided, as used in this Act:
          (1) Assistive technology device.--The term 
        ``assistive technology device'' means any item, piece 
        of equipment, or product system, whether acquired 
        commercially off the shelf, modified, or customized, 
        that is used to increase, maintain, or improve 
        functional capabilities of a child with a disability.
          (2) Assistive technology service.--The term 
        ``assistive technology service'' means any service that 
        directly assists a child with a disability in the 
        selection, acquisition, or use of an assistive 
        technology device. Such term includes--
                  (A) the evaluation of the needs of such 
                child, including a functional evaluation of the 
                child in the child's customary environment;
                  (B) purchasing, leasing, or otherwise 
                providing for the acquisition of assistive 
                technology devices by such child;
                  (C) selecting, designing, fitting, 
                customizing, adapting, applying, maintaining, 
                repairing, or replacing of assistive technology 
                devices;
                  (D) coordinating and using other therapies, 
                interventions, or services with assistive 
                technology devices, such as those associated 
                with existing education and rehabilitation 
                plans and programs;
                  (E) training or technical assistance for such 
                child, or, where appropriate, the family of 
                such child; and
                  (F) training or technical assistance for 
                professionals (including individuals providing 
                education and rehabilitation services), 
                employers, or other individuals who provide 
                services to, employ, or are otherwise 
                substantially involved in the major life 
                functions of such child.
          (3) Child with a disability.--
                  (A) In general.--The term ``child with a 
                disability'' means a child--
                          (i) with mental retardation, hearing 
                        impairments (including deafness), 
                        speech or language impairments, visual 
                        impairments (including blindness), 
                        serious emotional disturbance 
                        (hereinafter referred to as ``emotional 
                        disturbance''), orthopedic impairments, 
                        autism, traumatic brain injury, other 
                        health impairments, or specific 
                        learning disabilities; and
                          (ii) who, by reason thereof, needs 
                        special education and related services.
                  (B) Child aged 3 through 9.--The term ``child 
                with a disability'' for a child aged 3 through 
                9 may, at the discretion of the State and the 
                local educational agency, include a child--
                          (i) experiencing developmental 
                        delays, as defined by the State and as 
                        measured by appropriate diagnostic 
                        instruments and procedures, in one or 
                        more of the following areas: physical 
                        development, cognitive development, 
                        communication development, social or 
                        emotional development, or adaptive 
                        development; and
                          (ii) who, by reason thereof, needs 
                        special education and related services.
          (4) Educational service agency.--The term 
        ``educational service agency''--
                  (A) means a regional public multiservice 
                agency--
                          (i) authorized by State law to 
                        develop, manage, and provide services 
                        or programs to local educational 
                        agencies; and
                          (ii) recognized as an administrative 
                        agency for purposes of the provision of 
                        special education and related services 
                        provided within public elementary and 
                        secondary schools of the State; and
                  (B) includes any other public institution or 
                agency having administrative control and 
                direction over a public elementary or secondary 
                school.
          (5) Elementary school.--The term ``elementary 
        school'' means a nonprofit institutional day or 
        residential school that provides elementary education, 
        as determined under State law.
          (6) Equipment.--The term ``equipment'' includes--
                  (A) machinery, utilities, and built-in 
                equipment and any necessary enclosures or 
                structures to house such machinery, utilities, 
                or equipment; and
                  (B) all other items necessary for the 
                functioning of a particular facility as a 
                facility for the provision of educational 
                services, including items such as instructional 
                equipment and necessary furniture; printed, 
                published, and audio-visual instructional 
                materials; telecommunications, sensory, and 
                other technological aids and devices; and 
                books, periodicals, documents, and other 
                related materials.
          (7) Excess costs.--The term ``excess costs'' means 
        those costs that are in excess of the average annual 
        per-student expenditure in a local educational agency 
        during the preceding school year for an elementary or 
        secondary school student, as may be appropriate, and 
        which shall be computed after deducting--
                  (A) amounts received--
                          (i) under part B of this title;
                          (ii) under part A of title I of the 
                        Elementary and Secondary Education Act 
                        of 1965; or
                          (iii) under part A of title VII of 
                        that Act; and
                  (B) any State or local funds expended for 
                programs that would qualify for assistance 
                under any of those parts.
          (8) Free appropriate public education.--The term 
        ``free appropriate public education'' means special 
        education and related services that--
                  (A) have been provided at public expense, 
                under public supervision and direction, and 
                without charge;
                  (B) meet the standards of the State 
                educational agency;
                  (C) include an appropriate preschool, 
                elementary, or secondary school education in 
                the State involved; and
                  (D) are provided in conformity with the 
                individualized education program required under 
                section 614(d).
          (9) Indian.--The term ``Indian'' means an individual 
        who is a member of an Indian tribe.
          (10) Indian tribe.--The term ``Indian tribe'' means 
        any Federal or State Indian tribe, band, rancheria, 
        pueblo, colony, or community, including any 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).
          (12) Individualized family service plan.--The term 
        ``individualized family service plan'' has the meaning 
        given such term in section 632.
          (13) Infant or toddler with a disability.--The term 
        ``infant or toddler with a disability'' has the meaning 
        given such term in section 632.
          (14) Institution of higher education.--The term 
        ``institution of higher education''--
                  (A) has the meaning given that term in 
                section 1201(a) of the Higher Education Act of 
                1965; and
                  (B) also includes any community college 
                receiving funding from the Secretary of the 
                Interior under the Tribally Controlled 
                Community College Assistance Act of 1978.
          (15) Local educational agency.--
                  (A) The term ``local educational agency'' 
                means a public board of education or other 
                public authority legally constituted within a 
                State for either administrative control or 
                direction of, or to perform a service function 
                for, public elementary or secondary schools in 
                a city, county, township, school district, or 
                other political subdivision of a State, or for 
                such combination of school districts or 
                counties as are recognized in a State as an 
                administrative agency for its public elementary 
                or secondary schools.
                  (B) The term includes--
                          (i) an educational service agency, as 
                        defined in paragraph (4); and
                          (ii) any other public institution or 
                        agency having administrative control 
                        and direction of a public elementary or 
                        secondary school.
                  (C) The term includes an elementary or 
                secondary school funded by the Bureau of Indian 
                Affairs, but only to the extent that such 
                inclusion makes the school eligible for 
                programs for which specific eligibility is not 
                provided to the school in another provision of 
                law and the school does not have a student 
                population that is smaller than the student 
                population of the local educational agency 
                receiving assistance under this Act with the 
                smallest student population, except that the 
                school shall not be subject to the jurisdiction 
                of any State educational agency other than the 
                Bureau of Indian Affairs.
          (16) Native language.--The term ``native language'', 
        when used with reference to an individual of limited 
        English proficiency, means the language normally used 
        by the individual, or in the case of a child, the 
        language normally used by the parents of the child.
          (17) Nonprofit.--The term ``nonprofit'', as applied 
        to a school, agency, organization, or institution, 
        means a school, agency, organization, or institution 
        owned and operated by one or more nonprofit 
        corporations or associations no part of the net 
        earnings of which inures, or may lawfully inure, to the 
        benefit of any private shareholder or individual.
          (18) Outlying area.--The term ``outlying area'' means 
        the United States Virgin Islands, Guam, American Samoa, 
        and the Commonwealth of the Northern Mariana Islands.
          (19) Parent.--The term ``parent''--
                  (A) includes a legal guardian; and
                  (B) except as used in sections 615(b)(2) and 
                639(a)(5), includes an individual assigned 
                under either of those sections to be a 
                surrogate parent.
          (20) Parent organization.--The term ``parent 
        organization'' has the meaning given that term in 
        section 682(g).
          (21) Parent training and information center.--The 
        term ``parent training and information center'' means a 
        center assisted under section 682 or 683.
          (22) Related services.--The term ``related services'' 
        means transportation, and such developmental, 
        corrective, and other supportive services (including 
        speech-language pathology and audiology services, 
        psychological services, physical and occupational 
        therapy, recreation, including therapeutic recreation, 
        social work services, counseling services, including 
        rehabilitation counseling, orientation and mobility 
        services, and medical services, except that such 
        medical services shall be for diagnostic and evaluation 
        purposes only) as may be required to assist a child 
        with a disability to benefit from special education, 
        and includes the early identification and assessment of 
        disabling conditions in children.
          (23) Secondary school.--The term ``secondary school'' 
        means a nonprofit institutional day or residential 
        school that provides secondary education, as determined 
        under State law, except that it does not include any 
        education beyond grade 12.
          (24) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          (25) Special education.--The term ``special 
        education'' means specially designed instruction, at no 
        cost to parents, to meet the unique needs of a child 
        with a disability, including--
                  (A) instruction conducted in the classroom, 
                in the home, in hospitals and institutions, and 
                in other settings; and
                  (B) instruction in physical education.
          (26) Specific learning disability.--
                  (A) In general.--The term ``specific learning 
                disability'' means a disorder in one or more of 
                the basic psychological processes involved in 
                understanding or in using language, spoken or 
                written, which disorder may manifest itself in 
                imperfect ability to listen, think, speak, 
                read, write, spell, or do mathematical 
                calculations.
                  (B) Disorders included.--Such term includes 
                such conditions as perceptual disabilities, 
                brain injury, minimal brain dysfunction, 
                dyslexia, and developmental aphasia.
                  (C) Disorders not included.--Such term does 
                not include a learning problem that is 
                primarily the result of visual, hearing, or 
                motor disabilities, of mental retardation, of 
                emotional disturbance, or of environmental, 
                cultural, or economic disadvantage.
          (27) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, and each of the outlying areas.
          (28) State educational agency.--The term ``State 
        educational agency'' means the State board of education 
        or other agency or officer primarily responsible for 
        the State supervision of public elementary and 
        secondary schools, or, if there is no such officer or 
        agency, an officer or agency designated by the Governor 
        or by State law.
          (29) Supplementary aids and services.--The term 
        ``supplementary aids and services'' means, aids, 
        services, and other supports that are provided in 
        regular education classes or other education-related 
        settings to enable children with disabilities to be 
        educated with nondisabled children to the maximum 
        extent appropriate in accordance with section 
        612(a)(5).
          (30) Transition services.--The term ``transition 
        services'' means a coordinated set of activities for a 
        student with a disability that--
                  (A) 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 student's 
                needs, taking into account the student'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 Act and other programs and 
activities concerning the education of children with 
disabilities.
  (b) Director.--The Office established under subsection (a) 
shall be headed by a Director who shall be selected by the 
Secretary and shall report directly to the Assistant Secretary 
for Special Education and Rehabilitative Services.
  (c) Voluntary and Uncompensated Services.--Notwithstanding 
section 1342 of title 31, United States Code, the Secretaryis 
authorized to accept voluntary and uncompensated services in 
furtherance of the purposes of this Act.

SEC. 604. ABROGATION OF STATE SOVEREIGN IMMUNITY.

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

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

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

SEC. 606. EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.

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

SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

  (a) Public Comment Period.--The Secretary shall provide a 
public comment period of at least 90 days on any regulation 
proposed under part B or part C of this Act on which an 
opportunity for public comment is otherwise required by law.
  (b) Protections Provided to Children.--The Secretary may not 
implement, or publish in final form, any regulation prescribed 
pursuant to this Act that would procedurally or substantively 
lessen the protections provided to children with disabilities 
under this Act, as embodied in regulations in effect on July 
20, 1983 (particularly as such protections relate to parental 
consent to initial evaluation or initial placement in special 
education, least restrictive environment, related services, 
timelines, attendance of evaluation personnel at individualized 
education program meetings, or qualifications of personnel), 
except to the extent that such regulation reflects the clear 
and unequivocal intent of the Congress in legislation.
  (c) Policy Letters and Statements.--The Secretary may not, 
through policy letters or other statements, establish a rule 
that is required for compliance with, and eligibility under, 
this part without following the requirements of section 553 of 
title 5, United States Code.
  (d) Correspondence From Department of Education Describing 
Interpretations of This Part.--
          (1) In general.--The Secretary shall, on a quarterly 
        basis, publish in the Federal Register, and widely 
        disseminate to interested entities through various 
        additional forms of communication, a list of 
        correspondence from the Department of Education 
        received by individuals during the previous quarter 
        that describes the interpretations of the Department of 
        Education of this Act or the regulations implemented 
        pursuant to this Act.
          (2) Additional information.--For each item of 
        correspondence published in a list under paragraph (1), 
        the Secretary shall identify the topic addressed by the 
        correspondence and shall include such other summary 
        information as the Secretary determines to be 
        appropriate.
  (e) Issues of National Significance.--If the Secretary 
receives a written request regarding a policy, question, or 
interpretation under part B of this Act, and determines that it 
raises an issue of general interest or applicability of 
national significance to the implementation of part B, the 
Secretary shall--
          (1) include a statement to that effect in any written 
        response;
          (2) widely disseminate that response to State 
        educational agencies, local educational agencies, 
        parent and advocacy organizations, and other interested 
        organizations, subject to applicable laws relating to 
        confidentiality of information; and
          (3) not later than one year after the date on which 
        the Secretary responds to the written request, issue 
        written guidance on such policy, question, or 
        interpretation through such means as the Secretary 
        determines to be appropriate and consistent with law, 
        such as a policy memorandum, notice of interpretation, 
        or notice of proposed rulemaking.
  (f) Explanation.--Any written response by the Secretary under 
subsection (e) regarding a policy, question, or interpretation 
under part B of this Act shall include an explanation that the 
written response--
          (1) is provided as informal guidance and is not 
        legally binding; and
          (2) represents the interpretation by the Department 
        of Education of the applicable statutory or regulatory 
        requirements in the context of the specific facts 
        presented.

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

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

  (a) Grants to States.--
          (1) Purpose of grants.--The Secretary shall make 
        grants to States and the outlying areas, and provide 
        funds to the Secretary of the Interior, to assist them 
        to provide special education and related services to 
        children with disabilities in accordance with this 
        part.
          (2) Maximum amounts.--The maximum amount of the grant 
        a State may receive under this section for any fiscal 
        year is--
                  (A) the number of children with disabilities 
                in the State who are receiving special 
                education and related services--
                          (i) aged three through five if the 
                        State is eligible for a grant under 
                        section 619; and
                          (ii) aged six through 21; multiplied 
                        by
                  (B) 40 percent of the average per-pupil 
                expenditure in public elementary and secondary 
                schools in the United States.
  (b) Outlying Areas and Freely Associated States.--
          (1) Funds reserved.--From the amount appropriated for 
        any fiscal year under subsection (j), the Secretary 
        shall reserve not more than one percent, which shall be 
        used--
                  (A) to provide assistance to the outlying 
                areas in accordance with their respective 
                populations of individuals aged three through 
                21; and
                  (B) for fiscal years 1998 through 2001, to 
                carry out the competition described in 
                paragraph (2), except that the amount reserved 
                to carry out that competition shall not exceed 
                the amount reserved for fiscal year 1996 for 
                the competition under part B of this Act 
                described under the heading ``SPECIAL 
                EDUCATION'' in Public Law 104-134.
          (2) Limitation for freely associated states.--
                  (A) Competitive grants.--The Secretary shall 
                use funds described in paragraph (1)(B) to 
                award grants, on a competitive basis, to Guam, 
                American Samoa, the Commonwealth of the 
                Northern Mariana Islands, and the freely 
                associated States to carry out the purposes of 
                this part.
                  (B) Award basis.--The Secretary shall award 
                grants under subparagraph (A) on a competitive 
                basis, pursuant to the recommendations of the 
                Pacific Region Educational Laboratory in 
                Honolulu, Hawaii. Those recommendations shall 
                be made by experts in the field of special 
                education and related services.
                  (C) Assistance requirements.--Any freely 
                associated State that wishes to receive funds 
                under this part shall include, in its 
                application for assistance--
                          (i) information demonstrating that it 
                        will meet all conditions that apply to 
                        States under this part;
                          (ii) an assurance that, 
                        notwithstanding any other provision of 
                        this part, it will use those funds only 
                        for the direct provision of special 
                        education and related services to 
                        children with disabilities and to 
                        enhance its capacity to make a free 
                        appropriate public education available 
                        to all children with disabilities;
                          (iii) identify the source and amount 
                        of funds, in addition to funds under 
                        this part, that it will make available 
                        to ensure that a free appropriate 
                        public education is available to all 
                        children with disabilities within its 
                        jurisdiction; and
                          (iv) such other information and 
                        assurances as the Secretary may 
                        require.
                  (D) Termination of eligibility.--
                Notwithstanding any other provision of law, the 
                freely associated States shall not receive any 
                funds under this part for any program year that 
                begins after September 30, 2001.
                  (E) Administrative costs.--The Secretary may 
                provide not more than five percent of the 
                amount reserved for grants under this paragraph 
                to pay the administrative costs of the Pacific 
                Region Educational Laboratory under 
                subparagraph (B).
          (3) Limitation.--An outlying area is not eligible for 
        a competitive award under paragraph (2) unless it 
        receives assistance under paragraph (1)(A).
          (4) Special rule.--The provisions of Public Law 95-
        134, permitting the consolidation of grants by the 
        outlying areas, shall not apply to funds provided to 
        those areas or to the freely associated States under 
        this section.
          (5) Eligibility for discretionary programs.--The 
        freely associated States shall be eligible to receive 
        assistance under subpart 2 of part D of this Act until 
        September 30, 2001.
          (6) Definition.--As used in this subsection, the term 
        ``freely associated States'' means the Republic of the 
        Marshall Islands, the Federated States of Micronesia, 
        and the Republic of Palau.
  (c) Secretary of the Interior.--From the amount appropriated 
for any fiscal year under subsection (j), the Secretary shall 
reserve 1.226 percent to provide assistance to the Secretary of 
the Interior in accordance with subsection (i).
  (d) Allocations to States.--
          (1) In general.--After reserving funds for studies 
        and evaluations under section 674(e), and for payments 
        to the outlying areas and the Secretary of the Interior 
        under subsections (b) and (c), the Secretary shall 
        allocate the remaining amount among the States in 
        accordance with paragraph (2) or subsection (e), as the 
        case may be.
          (2) Interim formula.--Except as provided in 
        subsection (e), the Secretary shall allocate the amount 
        described in paragraph (1) among the States in 
        accordance with section 611(a)(3), (4), and (5) and 
        (b)(1), (2), and (3) of this Act, as in effect prior to 
        the enactment of the Individuals with Disabilities 
        Education Act Amendments of 1997, except that the 
        determination of the number of children with 
        disabilities receiving special education and related 
        services under such section 611(a)(3) may, at the 
        State's discretion, be calculated as of the last Friday 
        in October or as of December 1 of the fiscal year for 
        which the funds are appropriated.
  (e) Permanent Formula.--
          (1) Establishment of base year.--The Secretary shall 
        allocate the amount described in subsection (d)(1) 
        among the States in accordance with this subsection for 
        each fiscal yearbeginning with the first fiscal year 
for which the amount appropriated under subsection (j) is more than 
$4,924,672,200.
          (2) Use of base year.--
                  (A) Definition.--As used in this subsection, 
                the term ``base year'' means the fiscal year 
                preceding the first fiscal year in which this 
                subsection applies.
                  (B) Special rule for use of base year 
                amount.--If a State received any funds under 
                this section for the base year on the basis of 
                children aged three through five, but does not 
                make a free appropriate public education 
                available to all children with disabilities 
                aged three through five in the State in any 
                subsequent fiscal year, the Secretary shall 
                compute the State's base year amount, solely 
                for the purpose of calculating the State's 
                allocation in that subsequent year under 
                paragraph (3) or (4), by subtracting the amount 
                allocated to the State for the base year on the 
                basis of those children.
          (3) Increase in funds.--If the amount available for 
        allocations to States under paragraph (1) is equal to 
        or greater than the amount allocated to the States 
        under this paragraph for the preceding fiscal year, 
        those allocations shall be calculated as follows:
                  (A)(i) Except as provided in subparagraph 
                (B), the Secretary shall--
                          (I) allocate to each State the amount 
                        it received for the base year;
                          (II) allocate 85 percent of any 
                        remaining funds to States on the basis 
                        of their relative populations of 
                        children aged 3 through 21 who are of 
                        the same age as children with 
                        disabilities for whom the State ensures 
                        the availability of a free appropriate 
                        public education under this part; and
                          (III) allocate 15 percent of those 
                        remaining funds to States on the basis 
                        of their relative populations of 
                        children described in subclause (II) 
                        who are living in poverty.
                  (ii) For the purpose of making grants under 
                this paragraph, the Secretary shall use the 
                most recent population data, including data on 
                children living in poverty, that are available 
                and satisfactory to the Secretary.
                  (B) Notwithstanding subparagraph (A), 
                allocations under this paragraph shall be 
                subject to the following:
                          (i) No State's allocation shall be 
                        less than its allocation for the 
                        preceding fiscal year.
                          (ii) No State's allocation shall be 
                        less than the greatest of--
                                  (I) the sum of--
                                          (aa) the amount it 
                                        received for the base 
                                        year; and
                                          (bb) one third of one 
                                        percent of the amount 
                                        by which the amount 
                                        appropriated under 
                                        subsection (j) exceeds 
                                        the amount appropriated 
                                        under this section for 
                                        the base year;
                                  (II) the sum of--
                                          (aa) the amount it 
                                        received for the 
                                        preceding fiscal year; 
                                        and
                                          (bb) that amount 
                                        multiplied by the 
                                        percentage by which the 
                                        increase in the funds 
                                        appropriated from the 
                                        preceding fiscal year 
                                        exceeds 1.5 percent; or
                                  (III) the sum of--
                                          (aa) the amount it 
                                        received for the 
                                        preceding fiscal year; 
                                        and
                                          (bb) that amount 
                                        multiplied by 90 
                                        percent of the 
                                        percentage increase in 
                                        the amount appropriated 
                                        from the preceding 
                                        fiscal year.
                          (iii) Notwithstanding clause (ii), no 
                        State's allocation under this paragraph 
                        shall exceed the sum of--
                                  (I) the amount it received 
                                for the preceding fiscal year; 
                                and
                                  (II) that amount multiplied 
                                by the sum of 1.5 percent and 
                                the percentage increase in the 
                                amount appropriated.
                  (C) If the amount available for allocations 
                under this paragraph is insufficient to pay 
                those allocations in full, those allocations 
                shall be ratably reduced, subject to 
                subparagraph (B)(i).
          (4) Decrease in funds.--If the amount available for 
        allocations to States under paragraph (1) is less than 
        the amount allocated to the States under this section 
        for the preceding fiscal year, those allocations shall 
        be calculated as follows:
                  (A) If the amount available for allocations 
                is greater than the amount allocated to the 
                States for the base year, each State shall be 
                allocated the sum of--
                          (i) the amount it received for the 
                        base year; and
                          (ii) an amount that bears the same 
                        relation to any remaining funds as the 
                        increase the State received for the 
                        preceding fiscal year over the base 
                        year bears to the total of all such 
                        increases for all States.
                  (B)(i) If the amount available for 
                allocations is equal to or less than the amount 
                allocated to the States for the base year, each 
                State shall be allocated the amount it received 
                for the base year.
                  (ii) If the amount available is insufficient 
                to make the allocations described in clause 
                (i), those allocations shall be ratably 
                reduced.
  (f) State-Level Activities.--
          (1) General.--
                  (A) Each State may retain not more than the 
                amount described in subparagraph (B) for 
                administration and other State-level activities 
                in accordance with paragraphs (2) and (3).
                  (B) For each fiscal year, the Secretary shall 
                determine and report to the State educational 
                agency an amount that is 25 percent of the 
                amount the State received under this section 
                for fiscal year 1997, cumulatively adjusted by 
                the Secretary for each succeeding fiscal year 
                by the lesser of--
                          (i) the percentage increase, if any, 
                        from the preceding fiscal year in the 
                        State's allocation under this section; 
                        or
                          (ii) the rate of inflation, as 
                        measured by the percentage increase, if 
                        any, from the preceding fiscal year in 
                        the Consumer Price Index For All Urban 
                        Consumers, published by the Bureau of 
                        Labor Statistics of the Department of 
                        Labor.
                  (C) A State may use funds it retains under 
                subparagraph (A) without regard to--
                          (i) the prohibition on commingling of 
                        funds in section 612(a)(18)(B); and
                          (ii) the prohibition on supplanting 
                        other funds in section 612(a)(18)(C).
          (2) State administration.--
                  (A) For the purpose of administering this 
                part, including section 619 (including the 
                coordination of activities under this part 
                with, and providing technical assistance to, 
                other programs that provide services to 
                children with disabilities)--
                          (i) each State may use not more than 
                        twenty percent of the maximum amount it 
                        may retain under paragraph (1)(A) for 
                        any fiscal year or $500,000 (adjusted 
                        by the cumulative rate of inflation 
                        since fiscal year 1998, as measured by 
                        the percentage increase, if any, in the 
                        Consumer Price Index For All Urban 
                        Consumers, published by the Bureau of 
                        Labor Statistics of the Department of 
                        Labor), whichever is greater; and
                          (ii) each outlying area may use up to 
                        five percent of the amount it receives 
                        under this section for any fiscal year 
                        or $35,000, whichever is greater.
                  (B) Funds described in subparagraph (A) may 
                also be used for the administration of part C 
                of this Act, if the State educational agency is 
                the lead agency for the State under that part.
          (3) Other state-level activities.--Each State shall 
        use any funds it retains under paragraph (1) and does 
        not use for administration under paragraph (2) for any 
        of the following:
                  (A) Support and direct services, including 
                technical assistance and personnel development 
                and training.
                  (B) Administrative costs of monitoring and 
                complaint investigation, but only to the extent 
                that those costs exceed the costs incurred for 
                those activities during fiscal year 1985.
                  (C) To establish and implement the mediation 
                process required by section 615(e), including 
                providing for the costs of mediators and 
                support personnel.
                  (D) To assist local educational agencies in 
                meeting personnel shortages.
                  (E) To develop a State Improvement Plan under 
                subpart 1 of part D.
                  (F) Activities at the State and local levels 
                to meet the performance goals established by 
                the State under section 612(a)(16) and to 
                support implementation of the State Improvement 
                Plan under subpart 1 of part D if the State 
                receives funds under that subpart.
                  (G) To supplement other amounts used to 
                develop and implement a Statewide coordinated 
                services system designed to improve results for 
                children and families, including children with 
                disabilities and their families, but not to 
                exceed one percent of the amount received by 
                the State under this section. This system shall 
                be coordinated with and, to the extent 
                appropriate, build on the system of coordinated 
                services developed by the State under part C of 
                this Act.
                  (H) For subgrants to local educational 
                agencies for the purposes described in 
                paragraph (4)(A).
          (4)(A) Subgrants to local educational agencies for 
        capacity-building and improvement.--In any fiscal year 
        in which the percentage increase in the State's 
        allocation under this section exceeds the rate of 
        inflation (as measured by the percentage increase, if 
        any, from the preceding fiscal year in the Consumer 
        Price Index For All Urban Consumers, published by the 
        Bureau of Labor Statistics of the Department of Labor), 
        each State shall reserve, from its allocation under 
        this section, the amount described in subparagraph (B) 
        to make subgrants to local educational agencies, unless 
        that amount is less than $100,000, to assist them in 
        providing direct services and in making systemic change 
        to improve results for children with disabilities 
        through one or more of the following:
                  (i) Direct services, including alternative 
                programming for children who have been expelled 
                from school, and services for children in 
                correctional facilities, children enrolled in 
                State-operated or State-supported schools, and 
                children in charter schools.
                  (ii) Addressing needs or carrying out 
                improvement strategies identified in the 
                State's Improvement Plan under subpart 1 of 
                part D.
                  (iii) Adopting promising practices, 
                materials, and technology, based on knowledge 
                derived from education research and other 
                sources.
                  (iv) Establishing, expanding, or implementing 
                interagency agreements and arrangements between 
                local educational agencies and other agencies 
                or organizations concerning the provision of 
                services to children with disabilities and 
                their families.
                  (v) Increasing cooperative problem-solving 
                between parents and school personnel and 
                promoting the use of alternative dispute 
                resolution.
          (B) Maximum subgrant.--For each fiscal year, the 
        amount referred to in subparagraph (A) is--
                  (i) the maximum amount the State was allowed 
                to retain under paragraph (1)(A) for the prior 
                fiscal year, or for fiscal year 1998, 25 
                percent of the State's allocation for fiscal 
                year 1997 under this section; multiplied by
                  (ii) the difference between the percentage 
                increase in the State's allocation under this 
                section and the rateof inflation, as measured 
by the percentage increase, if any, from the preceding fiscal year in 
the Consumer Price Index For All Urban Consumers, published by the 
Bureau of Labor Statistics of the Department of Labor.
          (5) Report on use of funds.--As part of the 
        information required to be submitted to the Secretary 
        under section 612, each State shall annually describe--
                  (A) how amounts retained under paragraph (1) 
                will be used to meet the requirements of this 
                part;
                  (B) how those amounts will be allocated among 
                the activities described in paragraphs (2) and 
                (3) to meet State priorities based on input 
                from local educational agencies; and
                  (C) the percentage of those amounts, if any, 
                that will be distributed to local educational 
                agencies by formula.
  (g) Subgrants to Local Educational Agencies.--
          (1) Subgrants required.--Each State that receives a 
        grant under this section for any fiscal year shall 
        distribute any funds it does not retain under 
        subsection (f) (at least 75 percent of the grant funds) 
        to local educational agencies in the State that have 
        established their eligibility under section 613, and to 
        State agencies that received funds under section 
        614A(a) of this Act for fiscal year 1997, as then in 
        effect, and have established their eligibility under 
        section 613, for use in accordance with this part.
          (2) Allocations to local educational agencies.--
                  (A) Interim procedure.--For each fiscal year 
                for which funds are allocated to States under 
                subsection (d)(2), each State shall allocate 
                funds under paragraph (1) in accordance with 
                section 611(d) of this Act, as in effect prior 
                to the enactment of the Individuals with 
                Disabilities Education Act Amendments of 1997.
                  (B) Permanent procedure.--For each fiscal 
                year for which funds are allocated to States 
                under subsection (e), each State shall allocate 
                funds under paragraph (1) as follows:
                          (i) Base payments.--The State shall 
                        first award each agency described in 
                        paragraph (1) the amount that agency 
                        would have received under this section 
                        for the base year, as defined in 
                        subsection (e)(2)(A), if the State had 
                        distributed 75 percent of its grant for 
                        that year under section 611(d), as then 
                        in effect.
                          (ii) Allocation of remaining funds.--
                        After making allocations under clause 
                        (i), the State shall--
                                  (I) allocate 85 percent of 
                                any remaining funds to those 
                                agencies on the basis of the 
                                relative numbers of children 
                                enrolled in public and private 
                                elementary and secondary 
                                schools within the agency's 
                                jurisdiction; and
                                  (II) allocate 15 percent of 
                                those remaining funds to those 
                                agencies in accordance with 
                                their relative numbers of 
                                children living in poverty, as 
                                determined by the State 
                                educational agency.
          (3) Former chapter 1 state agencies.--
                  (A) To the extent necessary, the State--
                          (i) shall use funds that are 
                        available under subsection (f)(1)(A) to 
                        ensure that each State agency that 
                        received fiscal year 1994 funds under 
                        subpart 2 of part D of chapter 1 of 
                        title I of the Elementary and Secondary 
                        Education Act of 1965 receives, from 
                        the combination of funds under 
                        subsection (f)(1)(A) and funds provided 
                        under paragraph (1) of this subsection, 
                        an amount equal to--
                                  (I) the number of children 
                                with disabilities, aged 6 
                                through 21, to whom the agency 
                                was providing special education 
                                and related services on 
                                December 1 of the fiscal year 
                                for which the funds were 
                                appropriated, subject to the 
                                limitation in subparagraph (B); 
                                multiplied by
                                  (II) the per-child amount 
                                provided under such subpart for 
                                fiscal year 1994; and
                          (ii) may use those funds to ensure 
                        that each local educational agency that 
                        received fiscal year 1994 funds under 
                        that subpart for children who had 
                        transferred from a State-operated or 
                        State-supported school or program 
                        assisted under that subpart receives, 
                        from the combination of funds available 
                        under subsection (f)(1)(A) and funds 
                        provided under paragraph (1) of this 
                        subsection, an amount for each such 
                        child, aged 3 through 21 to whom the 
                        agency was providing special education 
                        and related services on December 1 of 
                        the fiscal year for which the funds 
                        were appropriated, equal to the per-
                        child amount the agency received under 
                        that subpart for fiscal year 1994.
                  (B) The number of children counted under 
                subparagraph (A)(i)(I) shall not exceed the 
                number of children aged 3 through 21 for whom 
                the agency received fiscal year 1994 funds 
                under subpart 2 of part D of chapter 1 of title 
                I of the Elementary and Secondary Education Act 
                of 1965.
          (4) Reallocation of funds.--If a State educational 
        agency determines that a local educational agency is 
        adequately providing a free appropriate public 
        education to all children with disabilities residing in 
        the area served by that agency with State and local 
        funds, the State educational agency may reallocate any 
        portion of the funds under this part that are not 
        needed by that local agency to provide a free 
        appropriate public education to other local educational 
        agencies in the State that are not adequately providing 
        special education and related services to all children 
        with disabilities residing in the areas they serve.
  (h) Definitions.--For the purpose of this section--
          (1) the term ``average per-pupil expenditure in 
        public elementary and secondary schools in the United 
        States'' means--
                  (A) without regard to the source of funds--
                          (i) the aggregate current 
                        expenditures, during the second fiscal 
                        year preceding the fiscal year for 
                        which the determination is made (or, if 
                        satisfactory data for that year are not 
                        available, during the most recent 
                        preceding fiscal year for which 
                        satisfactory data are available) of all 
                        local educational agencies in the 50 
                        States and the District of Columbia); 
                        plus
                          (ii) any direct expenditures by the 
                        State for the operation of those 
                        agencies; divided by
                  (B) the aggregate number of children in 
                average daily attendance to whom those agencies 
                provided free public education during that 
                preceding year; and
          (2) the term ``State'' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of 
        Puerto Rico.
  (i) Use of Amounts by Secretary of the Interior.--
          (1) Provision of amounts for assistance.--
                  (A) In general.--The Secretary of Education 
                shall provide amounts to the Secretary of the 
                Interior to meet the need for assistance for 
                the education of children with disabilities on 
                reservations aged 5 to 21, inclusive, enrolled 
                in elementary and secondary schools for Indian 
                children operated or funded by the Secretary of 
                the Interior. The amount of such payment for 
                any fiscal year shall be equal to 80 percent of 
                the amount allotted under subsection (c) for 
                that fiscal year.
                  (B) Calculation of number of children.--In 
                the case of Indian students 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 
governingbodies, and affected local school boards before the adoption 
of the policies, programs, and procedures described in subparagraph 
(A);
                  (D) includes an assurance that the Secretary 
                of the Interior will provide such information 
                as the Secretary of Education may require to 
                comply with section 618;
                  (E) includes an assurance that the Secretary 
                of the Interior and the Secretary of Health and 
                Human Services have entered into a memorandum 
                of agreement, to be provided to the Secretary 
                of Education, for the coordination of services, 
                resources, and personnel between their 
                respective Federal, State, and local offices 
                and with State and local educational agencies 
                and other entities to facilitate the provision 
                of services to Indian children with 
                disabilities residing on or near reservations 
                (such agreement shall provide for the 
                apportionment of responsibilities and costs 
                including, but not limited to, child find, 
                evaluation, diagnosis, remediation or 
                therapeutic measures, and (where appropriate) 
                equipment and medical or personal supplies as 
                needed for a child to remain in school or a 
                program); and
                  (F) includes an assurance that the Department 
                of the Interior will cooperate with the 
                Department of Education in its exercise of 
                monitoring and oversight of this application, 
                and any agreements entered into between the 
                Secretary of the Interior and other entities 
                under this part, and will fulfill its duties 
                under this part.
        Section 616(a) shall apply to the information described 
        in this paragraph.
          (3) Payments for education and services for indian 
        children with disabilities aged 3 through 5.--
                  (A) In general.--With funds appropriated 
                under subsection (j), the Secretary of 
                Education shall make payments to the Secretary 
                of the Interior to be distributed to tribes or 
                tribal organizations (as defined under section 
                4 of the Indian Self-Determination and 
                Education Assistance Act) or consortia of the 
                above to provide for the coordination of 
                assistance for special education and related 
                services for children with disabilities aged 3 
                through 5 on reservations served by elementary 
                and secondary schools for Indian children 
                operated or funded by the Department of the 
                Interior. The amount of such payments under 
                subparagraph (B) for any fiscal year shall be 
                equal to 20 percent of the amount allotted 
                under subsection (c).
                  (B) Distribution of funds.--The Secretary of 
                the Interior shall distribute the total amount 
                of the payment under subparagraph (A) by 
                allocating to each tribe or tribal organization 
                an amount based on the number of children with 
                disabilities ages 3 through 5 residing on 
                reservations as reported annually, divided by 
                the total of those children served by all 
                tribes or tribal organizations.
                  (C) Submission of information.--To receive a 
                payment under this paragraph, the tribe or 
                tribal organization shall submit such figures 
                to the Secretary of the Interior as required to 
                determine the amounts to be allocated 
undersubparagraph (B). This information shall be compiled and submitted 
to the Secretary of Education.
                  (D) Use of funds.--The funds received by a 
                tribe or tribal organization shall be used to 
                assist in child find, screening, and other 
                procedures for the early identification of 
                children aged 3 through 5, parent training, and 
                the provision of direct services. These 
                activities may be carried out directly or 
                through contracts or cooperative agreements 
                with the BIA, local educational agencies, and 
                other public or private nonprofit 
                organizations. The tribe or tribal organization 
                is encouraged to involve Indian parents in the 
                development and implementation of these 
                activities. The above entities shall, as 
                appropriate, make referrals to local, State, or 
                Federal entities for the provision of services 
                or further diagnosis.
                  (E) Biennial report.--To be eligible to 
                receive a grant pursuant to subparagraph (A), 
                the tribe or tribal organization shall provide 
                to the Secretary of the Interior a biennial 
                report of activities undertaken under this 
                paragraph, including the number of contracts 
                and cooperative agreements entered into, the 
                number of children contacted and receiving 
                services for each year, and the estimated 
                number of children needing services during the 
                2 years following the one in which the report 
                is made. The Secretary of the Interior shall 
                include a summary of this information on a 
                biennial basis in the report to the Secretary 
                of Education required under this subsection. 
                The Secretary of Education may require any 
                additional information from the Secretary of 
                the Interior.
                  (F) Prohibitions.--None of the funds 
                allocated under this paragraph may be used by 
                the Secretary of the Interior for 
                administrative purposes, including child count 
                and the provision of technical assistance.
          (4) Plan for coordination of services.--The Secretary 
        of the Interior shall develop and implement a plan for 
        the coordination of services for all Indian children 
        with disabilities residing on reservations covered 
        under this Act. Such plan shall provide for the 
        coordination of services benefiting these children from 
        whatever source, including tribes, the Indian Health 
        Service, other BIA divisions, and other Federal 
        agencies. In developing the plan, the Secretary of the 
        Interior shall consult with all interested and involved 
        parties. It shall be based on the needs of the children 
        and the system best suited for meeting those needs, and 
        may involve the establishment of cooperative agreements 
        between the BIA, other Federal agencies, and other 
        entities. The plan shall also be distributed upon 
        request to States, State and local educational 
        agencies, and other agencies providing services to 
        infants, toddlers, and children with disabilities, to 
        tribes, and to other interested parties.
          (5) Establishment of advisory board.--To meet the 
        requirements of section 612(a)(21), the Secretary of 
        the Interior shall establish, not later than 6 months 
        after the date of the enactment of the Individuals with 
        Disabilities Education Act Amendments of 1997, under 
        the BIA, an advisory board composed of individuals 
        involved in or concerned with the education and 
        provision of services to Indian infants, toddlers, 
        children, and youth with disabilities, including 
        Indians with disabilities, Indian parents or guardians 
        of such children, teachers, service providers, State 
        and local educational officials, representatives of 
        tribes or tribal organizations, representatives from 
        State Interagency Coordinating Councils under section 
        641 in States having reservations, and other members 
        representing the various divisions and entities of the 
        BIA. The chairperson shall be selected by the Secretary 
        of the Interior. The advisory board shall--
                  (A) assist in the coordination of services 
                within the BIA and with other local, State, and 
                Federal agencies in the provision of education 
                for infants, toddlers, and children with 
                disabilities;
                  (B) advise and assist the Secretary of the 
                Interior in the performance of the Secretary's 
                responsibilities described in this subsection;
                  (C) develop and recommend policies concerning 
                effective inter- and intra-agency 
                collaboration, including modifications to 
                regulations, and the elimination of barriers to 
                inter- and intra-agency programs and 
                activities;
                  (D) provide assistance and disseminate 
                information on best practices, effective 
                program coordination strategies, and 
                recommendations for improved educational 
                programming for Indian infants, toddlers, and 
                children with disabilities; and
                  (E) provide assistance in the preparation of 
                information required under paragraph (2)(D).
          (6) Annual reports.--
                  (A) In general.--The advisory board 
                established under paragraph (5) shall prepare 
                and submit to the Secretary of the Interior and 
                to the Congress an annual report containing a 
                description of the activities of the advisory 
                board for the preceding year.
                  (B) Availability.--The Secretary of the 
                Interior shall make available to the Secretary 
                of Education the report described in 
                subparagraph (A).
  (j) Authorization of Appropriations.--For the purpose of 
carrying out this part, other than section 619, there are 
authorized to be appropriated such sums as may be necessary.

SEC. 612. STATE ELIGIBILITY.

  (a) In General.--A State is eligible for assistance under 
this part for a fiscal year if the State demonstrates to the 
satisfaction of the Secretary that the State has in effect 
policies and procedures to ensure that it meets each of the 
following conditions:
          (1) Free appropriate public education.--
                  (A) In general.--A free appropriate public 
                education is available to all children with 
                disabilities residing in the State between the 
                ages of 3 and 21, inclusive, including children 
                with disabilities who have been suspended or 
                expelled from school.
                  (B) Limitation.--The obligation to make a 
                free appropriate public education available to 
                all children with disabilities does not apply 
                with respect to children:
                          (i) aged 3 through 5 and 18 through 
                        21 in a State to the extent that its 
                        application to those children would be 
                        inconsistent with State law or 
                        practice, or the order of any court, 
                        respecting the provision of public 
                        education to children in those age 
                        ranges; and
                          (ii) aged 18 through 21 to the extent 
                        that State law does not require that 
                        special education and related services 
                        under this part be provided to children 
                        with disabilities who, in the 
                        educational placement prior to their 
                        incarceration in an adult correctional 
                        facility:
                                  (I) were not actually 
                                identified as being a child 
                                with a disability under section 
                                602(3) of this Act; or
                                  (II) did not have an 
                                Individualized Education 
                                Program under this part.
          (2) Full educational opportunity goal.--The State has 
        established a goal of providing full educational 
        opportunity to all children with disabilities and a 
        detailed timetable for accomplishing that goal.
          (3) Child find.--
                  (A) In general.--All children with 
                disabilities residing in the State, including 
                children with disabilities attending private 
                schools, regardless of the severity of their 
                disabilities, and who are in need of special 
                education and related services, are identified, 
                located, and evaluated and a practical method 
                is developed and implemented to determine which 
                children with disabilities are currently 
                receiving needed special education and related 
                services.
                  (B) Construction.--Nothing in this Act 
                requires that children be classified by their 
                disability so long as each child who has a 
                disability listed in section 602 and who, by 
                reason of that disability, needs special 
                education and related services is regarded as a 
                child with a disability under this part.
          (4) Individualized education program.--An 
        individualized education program, or an individualized 
        family service plan that meets the requirements of 
        section 636(d), is developed, reviewed, and revised for 
        each child with a disability in accordance with section 
        614(d).
          (5) Least restrictive environment.--
                  (A) In general.--To the maximum extent 
                appropriate, children with disabilities, 
                including children in public or private 
                institutions or other care facilities, are 
                educated with children who are not disabled, 
                and special classes, separate schooling, or 
                other removal of children with disabilities 
                from the regular educational environment occurs 
                only when the nature or severity of the 
                disability of a child is such that education in 
                regular classes with the use of supplementary 
                aids and services cannot be achieved 
                satisfactorily.
                  (B) Additional requirement.--
                          (i) In general.--If the State uses a 
                        funding mechanism by which the State 
                        distributes State funds on the basis of 
                        the type of setting in which a child is 
                        served, the funding mechanism does not 
                        result in placements that violate the 
                        requirements of subparagraph (A).
                          (ii) Assurance.--If the State does 
                        not have policies and procedures to 
                        ensure compliance with clause (i), the 
                        State shall provide the Secretary an 
                        assurance that it will revise the 
                        funding mechanism as soon as feasible 
                        to ensure that such mechanism does not 
                        result in such placements.
          (6) Procedural safeguards.--
                  (A) In general.--Children with disabilities 
                and their parents are afforded the procedural 
                safeguards required by section 615.
                  (B) Additional procedural safeguards.--
                Procedures to ensure that testing and 
                evaluation materials and procedures utilized 
                for the purposes of evaluation and placement of 
                children with disabilities will be selected and 
                administered so as not to be racially or 
                culturally discriminatory. Such materials or 
                procedures shall be provided and administered 
                in the child's native language or mode of 
                communication, unless it clearly is not 
                feasible to do so, and no single procedure 
                shall be the sole criterion for determining an 
                appropriate educational program for a child.
          (7) Evaluation.--Children with disabilities are 
        evaluated in accordance with subsections (a) through 
        (c) of section 614.
          (8) Confidentiality.--Agencies in the State comply 
        with section 617(c) (relating to the confidentiality of 
        records and information).
          (9) Transition from part c to preschool programs.--
        Children participating in early-intervention programs 
        assisted under part C, and who will participate in 
        preschool programs assisted under this part, experience 
        a smooth and effective transition to those preschool 
        programs in a manner consistent with section 637(a)(8). 
        By the third birthday of such a child, an 
        individualized education program or, if consistent with 
        sections 614(d)(2)(B) and 636(d), an individualized 
        family service plan, has been developed and is being 
        implemented for the child. The local educational agency 
        will participate in transition planning conferences 
        arranged by the designated lead agency under section 
        637(a)(8).
          (10) Children in private schools.--
                  (A) Children enrolled in private schools by 
                their parents.--
                          (i) In general.--To the extent 
                        consistent with the number and location 
                        of children with disabilities in the 
                        State who are enrolled by their parents 
                        in private elementary and secondary 
                        schools, provision is made for the 
                        participation of those children in the 
                        program assisted or carried out under 
                        this part by providing for such 
                        children special education and related 
                        services in accordance with the 
                        following requirements, unless 
theSecretary has arranged for services to those children under 
subsection (f):
                                  (I) Amounts expended for the 
                                provision of those services by 
                                a local educational agency 
                                shall be equal to a 
                                proportionate amount of Federal 
                                funds made available under this 
                                part.
                                  (II) Such services may be 
                                provided to children with 
                                disabilities on the premises of 
                                private, including parochial, 
                                schools, to the extent 
                                consistent with law.
                          (ii) Child-find requirement.--The 
                        requirements of paragraph (3) of this 
                        subsection (relating to child find) 
                        shall apply with respect to children 
                        with disabilities in the State who are 
                        enrolled in private, including 
                        parochial, elementary and secondary 
                        schools.
                  (B) Children placed in, or referred to, 
                private schools by public agencies.--
                          (i) In general.--Children with 
                        disabilities in private schools and 
                        facilities are provided special 
                        education and related services, in 
                        accordance with an individualized 
                        education program, at no cost to their 
                        parents, if such children are placed 
                        in, or referred to, such schools or 
                        facilities by the State or appropriate 
                        local educational agency as the means 
                        of carrying out the requirements of 
                        this part or any other applicable law 
                        requiring the provision of special 
                        education and related services to all 
                        children with disabilities within such 
                        State.
                          (ii) Standards.--In all cases 
                        described in clause (i), the State 
                        educational agency shall determine 
                        whether such schools and facilities 
                        meet standards that apply to State and 
                        local educational agencies and that 
                        children so served have all the rights 
                        they would have if served by such 
                        agencies.
                  (C) Payment for education of children 
                enrolled in private schools without consent of 
                or referral by the public agency.--
                          (i) In general.--Subject to 
                        subparagraph (A), this part does not 
                        require a local educational agency to 
                        pay for the cost of education, 
                        including special education and related 
                        services, of a child with a disability 
                        at a private school or facility if that 
                        agency made a free appropriate public 
                        education available to the child and 
                        the parents elected to place the child 
                        in such private school or facility.
                          (ii) Reimbursement for private school 
                        placement.--If the parents of a child 
                        with a disability, who previously 
                        received special education and related 
                        services under the authority of a 
                        public agency, enroll the child in a 
                        private elementary or secondary school 
                        without the consent of or referral by 
                        the public agency, a court or a hearing 
                        officer may require the agency to 
                        reimburse the parents for the cost of 
                        that enrollment if the court or hearing 
                        officer finds that the agency had not 
                        made a free appropriate public 
                        education available to the child in a 
                        timely manner prior to that enrollment.
                          (iii) Limitation on reimbursement.--
                        The cost of reimbursement described in 
                        clause (ii) may be reduced or denied--
                                  (I) if--
                                          (aa) at the most 
                                        recent IEP meeting that 
                                        the parents attended 
                                        prior to removal of the 
                                        child from the public 
                                        school, the parents did 
                                        not inform the IEP team 
                                        that they were 
                                        rejecting the placement 
                                        proposed by the public 
                                        agency to provide a 
                                        free appropriate public 
                                        education to their 
                                        child, including 
                                        stating their concerns 
                                        and their intent to 
                                        enroll their child in a 
                                        private school at 
                                        public expense; or
                                          (bb) 10 business days 
                                        (including any holidays 
                                        that occur on a 
                                        business day) prior to 
                                        the removal of the 
                                        child from the public 
                                        school, the parents did 
                                        not give written notice 
                                        to the public agency of 
                                        the information 
                                        described in division 
                                        (aa);
                                  (II) if, prior to the 
                                parents' removal of the child 
                                from the public school, the 
                                public agency informed the 
                                parents, through the notice 
                                requirements described in 
                                section 615(b)(7), of its 
                                intent to evaluate the child 
                                (including a statement of the 
                                purpose of the evaluation that 
                                was appropriate and 
                                reasonable), but the parents 
                                did not make the child 
                                available for such evaluation; 
                                or
                                  (III) upon a judicial finding 
                                of unreasonableness with 
                                respect to actions taken by the 
                                parents.
                          (iv) Exception.--Notwithstanding the 
                        notice requirement in clause (iii)(I), 
                        the cost of reimbursement may not be 
                        reduced or denied for failure to 
                        provide such notice if--
                                  (I) the parent is illiterate 
                                and cannot write in English;
                                  (II) compliance with clause 
                                (iii)(I) would likely result in 
                                physical or serious emotional 
                                harm to the child;
                                  (III) the school prevented 
                                the parent from providing such 
                                notice; or
                                  (IV) the parents had not 
                                received notice, pursuant to 
                                section 615, of the notice 
                                requirement in clause (iii)(I).
          (11) State educational agency responsible for general 
        supervision.--
                  (A) In general.--The State educational agency 
                is responsible for ensuring that--
                          (i) the requirements of this part are 
                        met; and
                          (ii) all educational programs for 
                        children with disabilities in the 
                        State, including all such programs 
                        administered by any other State or 
                        local agency--
                                  (I) are under the general 
                                supervision of individuals in 
                                the State who are responsible 
                                for educational programs for 
                                children with disabilities; and
                                  (II) meet the educational 
                                standards of the State 
                                educational agency.
                  (B) Limitation.--Subparagraph (A) shall not 
                limit the responsibility of agencies in the 
                State other than the State educational agency 
                to provide, or pay for some or all of the costs 
                of, a free appropriate public education for any 
                child with a disability in the State.
                  (C) Exception.--Notwithstanding subparagraphs 
                (A) and (B), the Governor (or another 
                individual pursuant to State law), consistent 
                with State law, may assign to any public agency 
                in the State the responsibility of ensuring 
                that the requirements of this part are met with 
                respect to children with disabilities who are 
                convicted as adults under State law and 
                incarcerated in adult prisons.
          (12) Obligations related to and methods of ensuring 
        services.--
                  (A) Establishing responsibility for 
                services.--The Chief Executive Officer or 
                designee of the officer shall ensure that an 
                interagency agreement or other mechanism for 
                interagency coordination is in effect between 
                each public agency described in subparagraph 
                (B) and the State educational agency, in order 
                to ensure that all services described in 
                subparagraph (B)(i) that are needed to ensure a 
                free appropriate public education are provided, 
                including the provision of such services during 
                the pendency of any dispute under clause (iii). 
                Such agreement or mechanism shall include the 
                following:
                          (i) Agency financial 
                        responsibility.--An identification of, 
                        or a method for defining, the financial 
                        responsibility of each agency for 
                        providing services described in 
                        subparagraph (B)(i) to ensure a free 
                        appropriate public education to 
                        children with disabilities, provided 
                        that the financial responsibility of 
                        each public agency described in 
                        subparagraph (B), including the State 
                        Medicaid agency and other public 
                        insurers of children with disabilities, 
                        shall precede the financial 
                        responsibility of the local educational 
                        agency (or the State agency responsible 
                        for developing the child's IEP).
                          (ii) Conditions and terms of 
                        reimbursement.--The conditions, terms, 
                        and procedures under which a local 
                        educational agency shall be reimbursed 
                        by other agencies.
                          (iii) Interagency disputes.--
                        Procedures for resolving interagency 
                        disputes (including procedures under 
                        which local educational agencies may 
                        initiate proceedings) under the 
                        agreement or other mechanism to secure 
                        reimbursement from other agencies or 
                        otherwise implement the provisions of 
                        the agreement or mechanism.
                          (iv) Coordination of services 
                        procedures.--Policies and procedures 
                        for agencies to determine and identify 
                        the interagency coordination 
                        responsibilities of each agency to 
                        promote the coordination and timely and 
                        appropriate delivery of services 
                        described in subparagraph (B)(i).
                  (B) Obligation of public agency.--
                          (i) In general.--If any public agency 
                        other than an educational agency is 
                        otherwise obligated under Federal or 
                        State law, or assigned responsibility 
                        under State policy or pursuant to 
                        subparagraph (A), to provide or pay for 
                        any services that are also considered 
                        special education or related services 
                        (such as, but not limited to, services 
                        described in sections 602(1) relating 
                        to assistive technology devices, 602(2) 
                        relating to assistive technology 
                        services, 602(22) relating to related 
                        services, 602(29) relating to 
                        supplementary aids and services, and 
                        602(30) relating to transition 
                        services) that are necessary for 
                        ensuring a free appropriate public 
                        education to children with disabilities 
                        within the State, such public agency 
                        shall fulfill that obligation or 
                        responsibility, either directly or 
                        through contract or other arrangement.
                          (ii) Reimbursement for services by 
                        public agency.--If a public agency 
                        other than an educational agency fails 
                        to provide or pay for the special 
                        education and related services 
                        described in clause (i), the local 
                        educational agency (or State agency 
                        responsible for developing the child's 
                        IEP) shall provide or pay for such 
                        services to the child. Such local 
                        educational agency or State agency may 
                        then claim reimbursement for the 
                        services from the public agency that 
                        failed to provide or pay for such 
                        services and such public agency shall 
                        reimburse the local educational agency 
                        or State agency pursuant to the terms 
                        of the interagency agreement or other 
                        mechanism described in subparagraph 
                        (A)(i) according to the procedures 
                        established in such agreement pursuant 
                        to subparagraph (A)(ii).
                  (C) Special rule.--The requirements of 
                subparagraph (A) may be met through--
                          (i) State statute or regulation;
                          (ii) signed agreements between 
                        respective agency officials that 
                        clearly identify the responsibilities 
                        of each agency relating to the 
                        provision of services; or
                          (iii) other appropriate written 
                        methods as determined by the Chief 
                        Executive Officer of the State or 
                        designee of the officer.
          (13) Procedural requirements relating to local 
        educational agency eligibility.--The State educational 
        agency will not make a final determination that a local 
        educational agency is not eligible for assistance under 
        this part without firstaffording that agency reasonable 
notice and an opportunity for a hearing.
          (14) Comprehensive system of personnel development.--
        The State has in effect, consistent with the purposes 
        of this Act and with section 635(a)(8), a comprehensive 
        system of personnel development that is designed to 
        ensure an adequate supply of qualified special 
        education, regular education, and related services 
        personnel that meets the requirements for a State 
        improvement plan relating to personnel development in 
        subsections (b)(2)(B) and (c)(3)(D) of section 653.
          (15) Personnel standards.--
                  (A) In general.--The State educational agency 
                has established and maintains standards to 
                ensure that personnel necessary to carry out 
                this part are appropriately and adequately 
                prepared and trained.
                  (B) Standards described.--Such standards 
                shall--
                          (i) be consistent with any State-
                        approved or State-recognized 
                        certification, licensing, registration, 
                        or other comparable requirements that 
                        apply to the professional discipline in 
                        which those personnel are providing 
                        special education or related services;
                          (ii) to the extent the standards 
                        described in subparagraph (A) are not 
                        based on the highest requirements in 
                        the State applicable to a specific 
                        profession or discipline, the State is 
                        taking steps to require retraining or 
                        hiring of personnel that meet 
                        appropriate professional requirements 
                        in the State; and
                          (iii) allow paraprofessionals and 
                        assistants who are appropriately 
                        trained and supervised, in accordance 
                        with State law, regulations, or written 
                        policy, in meeting the requirements of 
                        this part to be used to assist in the 
                        provision of special education and 
                        related services to children with 
                        disabilities under this part.
                  (C) Policy.--In implementing this paragraph, 
                a State may adopt a policy that includes a 
                requirement that local educational agencies in 
                the State make an ongoing good-faith effort to 
                recruit and hire appropriately and adequately 
                trained personnel to provide special education 
                and related services to children with 
                disabilities, including, in a geographic area 
                of the State where there is a shortage of such 
                personnel, the most qualified individuals 
                available who are making satisfactory progress 
                toward completing applicable course work 
                necessary to meet the standards described in 
                subparagraph (B)(i), consistent with State law, 
                and the steps described in subparagraph (B)(ii) 
                within three years.
          (16) Performance goals and indicators.--The State--
                  (A) has established goals for the performance 
                of children with disabilities in the State 
                that--
                          (i) will promote the purposes of this 
                        Act, as stated in section 601(d); and
                          (ii) are consistent, to the maximum 
                        extent appropriate, with other goals 
                        and standards for children established 
                        by the State;
                  (B) has established performance indicators 
                the State will use to assess progress toward 
                achieving those goals that, at a minimum, 
                address the performance of children with 
                disabilities on assessments, drop-out rates, 
                and graduation rates;
                  (C) will, every two years, report to the 
                Secretary and the public on the progress of the 
                State, and of children with disabilities in the 
                State, toward meeting the goals established 
                under subparagraph (A); and
                  (D) based on its assessment of that progress, 
                will revise its State improvement plan under 
                subpart 1 of part D as may be needed to improve 
                its performance, if the State receives 
                assistance under that subpart.
          (17) Participation in assessments.--
                  (A) In general.--Children with disabilities 
                are included in general State and district-wide 
                assessment programs, with appropriate 
                accommodations, where necessary. As 
                appropriate, the State or local educational 
                agency--
                          (i) develops guidelines for the 
                        participation of children with 
                        disabilities in alternate assessments 
                        for those children who cannot 
                        participate in State and district-wide 
                        assessment programs; and
                          (ii) develops and, beginning not 
                        later than July 1, 2000, conducts those 
                        alternate assessments.
                  (B) Reports.--The State educational agency 
                makes available to the public, and reports to 
                the public with the same frequency and in the 
                same detail as it reports on the assessment of 
                nondisabled children, the following:
                          (i) The number of children with 
                        disabilities participating in regular 
                        assessments.
                          (ii) The number of those children 
                        participating in alternate assessments.
                          (iii)(I) The performance of those 
                        children on regular assessments 
                        (beginning not later than July 1, 1998) 
                        and on alternate assessments (not later 
                        than July 1, 2000), if doing so would 
                        be statistically sound and would not 
                        result in the disclosure of performance 
                        results identifiable to individual 
                        children.
                          (II) Data relating to the performance 
                        of children described under subclause 
                        (I) shall be disaggregated--
                                  (aa) for assessments 
                                conducted after July 1, 1998; 
                                and
                                  (bb) for assessments 
                                conducted before July 1, 1998, 
                                if the State is required to 
                                disaggregate such data prior to 
                                July 1, 1998.
          (18) Supplementation of state, local, and other 
        Federal funds.--
                  (A) Expenditures.--Funds paid to a State 
                under this part will be expended in accordance 
                with all the provisions of this part.
                  (B) Prohibition against commingling.--Funds 
                paid to a State under this part will not be 
                commingled with State funds.
                  (C) Prohibition against supplantation and 
                conditions for waiver by Secretary.--Except as 
                provided in section 613, funds paid to a State 
                under this part will be used to supplement the 
                level of Federal, State, and local funds 
                (including funds that are not under the direct 
                control of State or local educational agencies) 
                expended for special education and related 
                services provided to children with disabilities 
                under this part and in no case to supplant such 
                Federal, State, and local funds, except that, 
                where the State provides clear and convincing 
                evidence that all children with disabilities 
                have available to them a free appropriate 
                public education, the Secretary may waive, in 
                whole or in part, the requirements of this 
                subparagraph if the Secretary concurs with the 
                evidence provided by the State.
          (19) Maintenance of state financial support.--
                  (A) In general.--The State does not reduce 
                the amount of State financial support for 
                special education and related services for 
                children with disabilities, or otherwise made 
                available because of the excess costs of 
                educating those children, below the amount of 
                that support for the preceding fiscal year.
                  (B) Reduction of funds for failure to 
                maintain support.--The Secretary shall reduce 
                the allocation of funds under section 611 for 
                any fiscal year following the fiscal year in 
                which the State fails to comply with the 
                requirement of subparagraph (A) by the same 
                amount by which the State fails to meet the 
                requirement.
                  (C) Waivers for exceptional or uncontrollable 
                circumstances.--The Secretary may waive the 
                requirement of subparagraph (A) for a State, 
                for one fiscal year at a time, if the Secretary 
                determines that--
                          (i) granting a waiver would be 
                        equitable due to exceptional or 
                        uncontrollable circumstances such as a 
                        natural disaster or a precipitous and 
                        unforeseen decline in the financial 
                        resources of the State; or
                          (ii) the State meets the standard in 
                        paragraph (18)(C) of this section for a 
                        waiver of the requirement to 
                        supplement, and not to supplant, funds 
                        received under this part.
                  (D) Subsequent years.--If, for any year, a 
                State fails to meet the requirement of 
                subparagraph (A), including any year for which 
                the State is granted a waiver under 
                subparagraph (C), the financial support 
                required of the State in future years under 
                subparagraph (A) shall be the amount that would 
                have been required in the absence of that 
                failure and not the reduced level of the 
                State's support.
                  (E) Regulations.--
                          (i) The Secretary shall, by 
                        regulation, establish procedures 
                        (including objective criteria and 
                        consideration of the results of 
                        compliance reviews of the State 
                        conducted by the Secretary) for 
                        determining whether to grant a waiver 
                        under subparagraph (C)(ii).
                          (ii) The Secretary shall publish 
                        proposed regulations under clause (i) 
                        not later than 6 months after the date 
                        of the enactment of the Individuals 
                        with Disabilities Education Act 
                        Amendments of 1997, and shall issue 
                        final regulations under clause (i) not 
                        later than 1 year after such date of 
                        enactment.
          (20) Public participation.--Prior to the adoption of 
        any policies and procedures needed to comply with this 
        section (including any amendments to such policies and 
        procedures), the State ensures that there are public 
        hearings, adequate notice of the hearings, and an 
        opportunity for comment available to the general 
        public, including individuals with disabilities and 
        parents of children with disabilities.
          (21) State advisory panel.--
                  (A) In general.--The State has established 
                and maintains an advisory panel for the purpose 
                of providing policy guidance with respect to 
                special education and related services for 
                children with disabilities in the State.
                  (B) Membership.--Such advisory panel shall 
                consist of members appointed by the Governor, 
                or any other official authorized under State 
                law to make such appointments, that is 
                representative of the State population and that 
                is composed of individuals involved in, or 
                concerned with, the education of children with 
                disabilities, including--
                          (i) parents of children with 
                        disabilities;
                          (ii) individuals with disabilities;
                          (iii) teachers;
                          (iv) representatives of institutions 
                        of higher education that prepare 
                        special education and related services 
                        personnel;
                          (v) State and local education 
                        officials;
                          (vi) administrators of programs for 
                        children with disabilities;
                          (vii) representatives of other State 
                        agencies involved in the financing or 
                        delivery of related services to 
                        children with disabilities;
                          (viii) representatives of private 
                        schools and public charter schools;
                          (ix) at least one representative of a 
                        vocational, community, or business 
                        organization concerned with the 
                        provision of transition services to 
                        children with disabilities; and
                          (x) representatives from the State 
                        juvenile and adult corrections 
                        agencies.
                  (C) Special rule.--A majority of the members 
                of the panel shall be individuals with 
                disabilities or parents of children with 
                disabilities.
                  (D) Duties.--The advisory panel shall--
                          (i) advise the State educational 
                        agency of unmet needs within the State 
                        in the education of children with 
                        disabilities;
                          (ii) comment publicly on any rules or 
                        regulations proposed by the State 
                        regarding the education of children 
                        with disabilities;
                          (iii) advise the State educational 
                        agency in developing evaluations and 
                        reporting on data to the Secretary 
                        under section 618;
                          (iv) advise the State educational 
                        agency in developing corrective action 
                        plans to address findings identified in 
                        Federal monitoring reports under this 
                        part; and
                          (v) advise the State educational 
                        agency in developing and implementing 
                        policies relating to the coordination 
                        of services for children with 
                        disabilities.
          (22) Suspension and expulsion rates.--
                  (A) In general.--The State educational agency 
                examines data to determine if significant 
                discrepancies are occurring in the rate of 
                long-term suspensions and expulsions of 
                children with disabilities--
                          (i) among local educational agencies 
                        in the State; or
                          (ii) compared to such rates for 
                        nondisabled children within such 
                        agencies.
                  (B) Review and revision of policies.--If such 
                discrepancies are occurring, the State 
                educational agency reviews and, if appropriate, 
                revises (or requires the affected State or 
                local educational agency to revise) its 
                policies, procedures, and practices relating to 
                the development and implementation of IEPs, the 
                use of behavioral interventions, and procedural 
                safeguards, to ensure that such policies, 
                procedures, and practices comply with this Act.
  (b) State Educational Agency as Provider of Free Appropriate 
Public Education or Direct Services.--If the State educational 
agency provides free appropriate public education to children 
with disabilities, or provides direct services to such 
children, such agency--
          (1) shall comply with any additional requirements of 
        section 613(a), as if such agency were a local 
        educational agency; and
          (2) may use amounts that are otherwise available to 
        such agency under this part to serve those children 
        without regard to section 613(a)(2)(A)(i) (relating to 
        excess costs).
  (c) Exception for Prior State Plans.--
          (1) In general.--If a State has on file with the 
        Secretary policies and procedures that demonstrate that 
        such State meets any requirement of subsection (a), 
        including any policies and procedures filed under this 
        part as in effect before the effective date of the 
        Individuals with Disabilities Education Act Amendments 
        of 1997, the Secretary shall consider such State to 
        have met such requirement for purposes of receiving a 
        grant under this part.
          (2) Modifications made by state.--Subject to 
        paragraph (3), an application submitted by a State in 
        accordance with this section shall remain in effect 
        until the State submits to the Secretary such 
        modifications as the State deems necessary. This 
        section shall apply to a modification to an application 
        to the same extent and in the same manner as this 
        section applies to the original plan.
          (3) Modifications required by the secretary.--If, 
        after the effective date of the Individuals with 
        Disabilities Education Act Amendments of 1997, the 
        provisions of this Act are amended (or the regulations 
        developed to carry out this Act are amended), or there 
        is a new interpretation of this Act by a Federal or 
        State Supreme court, or there is an official finding of 
        noncompliance with Federal law or regulations, the 
        Secretary may require a State to modify its application 
        only to the extent necessary to ensure the State's 
        compliance with this part.
  (d) Approval by the Secretary.--
          (1) In general.--If the Secretary determines that a 
        State is eligible to receive a grant under this part, 
        the Secretary shall notify the State of that 
        determination.
          (2) Notice and hearing.--The Secretary shall not make 
        a final determination that a State is not eligible to 
        receive a grant under this part until after providing 
        the State--
                  (A) with reasonable notice; and
                  (B) with an opportunity for a hearing.
  (e) Assistance Under Other Federal Programs.--Nothing in this 
title permits a State to reduce medical and other assistance 
available, or to alter eligibility, under titles V and XIX of 
the Social Security Act with respect to the provision of a free 
appropriate public education for children with disabilities in 
the State.
  (f) By-Pass for Children in Private Schools.--
          (1) In general.--If, on the date of enactment of the 
        Education of the Handicapped Act Amendments of 1983, a 
        State educational agency is prohibited by law from 
        providing for the participation in special programs of 
        children with disabilities enrolled in private 
        elementary and secondary schools as required by 
        subsection (a)(10)(A), the Secretary shall, 
        notwithstanding such provision of law, arrange for the 
        provision of services to such children through 
        arrangements which shall be subject to the requirements 
        of such subsection.
          (2) Payments.--
                  (A) Determination of amounts.--If the 
                Secretary arranges for services pursuant to 
                this subsection, the Secretary, after 
                consultation with the appropriate public and 
                private school officials, shall pay to the 
                provider of such services for a fiscal year an 
                amount per child that does not exceed the 
                amount determined by dividing--
                          (i) the total amount received by the 
                        State under this part for such fiscal 
                        year; by
                          (ii) the number of children with 
                        disabilities served in the prior year, 
                        as reported to the Secretary by the 
                        State under section 618.
                  (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 continueuntil the Secretary determines 
that there will no longer be any failure or inability on the part of 
the State educational agency to meet the requirements of subsection 
(a)(10)(A).
          (3) Notice and hearing.--
                  (A) In general.--The Secretary shall not take 
                any final action under this subsection until 
                the State educational agency affected by such 
                action has had an opportunity, for at least 45 
                days after receiving written notice thereof, to 
                submit written objections and to appear before 
                the Secretary or the Secretary's designee to 
                show cause why such action should not be taken.
                  (B) Review of action.--If a State educational 
                agency is dissatisfied with the Secretary's 
                final action after a proceeding under 
                subparagraph (A), such agency may, not later 
                than 60 days after notice of such action, file 
                with the United States court of appeals for the 
                circuit in which such State is located a 
                petition for review of that action. A copy of 
                the petition shall be forthwith transmitted by 
                the clerk of the court to the Secretary. The 
                Secretary thereupon shall file in the court the 
                record of the proceedings on which the 
                Secretary based the Secretary's action, as 
                provided in section 2112 of title 28, United 
                States Code.
                  (C) Review of findings of fact.--The findings 
                of fact by the Secretary, if supported by 
                substantial evidence, shall be conclusive, but 
                the court, for good cause shown, may remand the 
                case to the Secretary to take further evidence, 
                and the Secretary may thereupon make new or 
                modified findings of fact and may modify the 
                Secretary's previous action, and shall file in 
                the court the record of the further 
                proceedings. Such new or modified findings of 
                fact shall likewise be conclusive if supported 
                by substantial evidence.
                  (D) Jurisdiction of court of appeals; review 
                by united states supreme court.--Upon the 
                filing of a petition under subparagraph (B), 
                the United States court of appeals shall have 
                jurisdiction to affirm the action of the 
                Secretary or to set it aside, in whole or in 
                part. The judgment of the court shall be 
                subject to review by the Supreme Court of the 
                United States upon certiorari or certification 
                as provided in section 1254 of title 28, United 
                States Code.

SEC. 613. LOCAL EDUCATIONAL AGENCY ELIGIBILITY.

  (a) In General.--A local educational agency is eligible for 
assistance under this part for a fiscal year if such agency 
demonstrates to the satisfaction of the State educational 
agency that it meets each of the following conditions:
          (1) Consistency with state policies.--The local 
        educational agency, in providing for the education of 
        children with disabilities within its jurisdiction, has 
        in effect policies, procedures, and programs that are 
        consistent with the State policies and procedures 
        established under section 612.
          (2) Use of amounts.--
                  (A) In general.--Amounts provided to the 
                local educational agency under this part shall 
                be expended in accordance with the applicable 
                provisions of this part and--
                          (i) shall be used only to pay the 
                        excess costs of providing special 
                        education and related services to 
                        children with disabilities;
                          (ii) shall be used to supplement 
                        State, local, and other Federal funds 
                        and not to supplant such funds; and
                          (iii) shall not be used, except as 
                        provided in subparagraphs (B) and (C), 
                        to reduce the level of expenditures for 
                        the education of children with 
                        disabilities made by the local 
                        educational agency from local funds 
                        below the level of those expenditures 
                        for the preceding fiscal year.
                  (B) Exception.--Notwithstanding the 
                restriction in subparagraph (A)(iii), a local 
                educational agency may reduce the level of 
                expenditures where such reduction is 
                attributable to--
                          (i) the voluntary departure, by 
                        retirement or otherwise, or departure 
                        for just cause, of special education 
                        personnel;
                          (ii) a decrease in the enrollment of 
                        children with disabilities;
                          (iii) the termination of the 
                        obligation of the agency, consistent 
                        with this part, to provide a program of 
                        special education to a particular child 
                        with a disability that is an 
                        exceptionally costly program, as 
                        determined by the State educational 
                        agency, because the child--
                                  (I) has left the jurisdiction 
                                of the agency;
                                  (II) has reached the age at 
                                which the obligation of the 
                                agency to provide a free 
                                appropriate public education to 
                                the child has terminated; or
                                  (III) no longer needs such 
                                program of special education; 
                                or
                          (iv) the termination of costly 
                        expenditures for long-term purchases, 
                        such as the acquisition of equipment or 
                        the construction of school facilities.
                  (C) Treatment of federal funds in certain 
                fiscal years.--
                          (i) Notwithstanding clauses (ii) and 
                        (iii) of subparagraph (A), for any 
                        fiscal year for which amounts 
                        appropriated to carry out section 611 
                        exceeds $4,100,000,000, a local 
                        educational agency may treat as local 
                        funds, for the purpose of such clauses, 
                        up to 20 percent of the amount of funds 
                        it receives under this part that 
                        exceeds the amount it received under 
                        this part for the previous fiscal year.
                          (ii) Notwithstanding clause (i), if a 
                        State educational agency determines 
                        that a local educational agency is not 
                        meeting the requirements of this part, 
                        the State educational agency may 
                        prohibit the local educational agency 
                        from treating funds received under this 
                        part as local funds under clause (i) 
                        for any fiscal year, only if it is 
                        authorized to so by the State 
                        constitution or a State statute.
                  (D) Schoolwide programs under title i of the 
                esea.--Notwithstanding subparagraph (A) or any 
                other provision of this part, a local 
                educational agency may use funds received under 
                this part for any fiscal year to carry out a 
                schoolwide program under section 1114 of the 
                Elementary and Secondary Education Act of 1965, 
                except that the amount so used in any such 
                program shall not exceed--
                          (i) the number of children with 
                        disabilities participating in the 
                        schoolwide program; multiplied by
                          (ii)(I) the amount received by the 
                        local educational agency under this 
                        part for that fiscal year; divided by
                          (II) the number of children with 
                        disabilities in the jurisdiction of 
                        that agency.
          (3) Personnel development.--The local educational 
        agency--
                  (A) shall ensure that all personnel necessary 
                to carry out this part are appropriately and 
                adequately prepared, consistent with the 
                requirements of section 653(c)(3)(D); and
                  (B) to the extent such agency determines 
                appropriate, shall contribute to and use the 
                comprehensive system of personnel development 
                of the State established under section 
                612(a)(14).
          (4) Permissive use of funds.--Notwithstanding 
        paragraph (2)(A) or section 612(a)(18)(B) (relating to 
        commingled funds), funds provided to the local 
        educational agency under this part may be used for the 
        following activities:
                  (A) Services and aids that also benefit 
                nondisabled children.--For the costs of special 
                education and related services and 
                supplementary aids and services provided in a 
                regular class or other education-related 
                setting to a child with a disability in 
                accordance with the individualized education 
                program of the child, even if one or more 
                nondisabled children benefit from such 
                services.
                  (B) Integrated and coordinated services 
                system.--To develop and implement a fully 
                integrated and coordinated services system in 
                accordance with subsection (f).
          (5) Treatment of charter schools and their 
        students.--In carrying out this part with respect to 
        charter schools that are public schools of the local 
        educational agency, the local educational agency--
                  (A) serves children with disabilities 
                attending those schools in the same manner as 
                it serves children with disabilities in its 
                other schools; and
                  (B) provides funds under this part to those 
                schools in the same manner as it provides those 
                funds to its other schools.
          (6) Information for state educational agency.--The 
        local educational agency shall provide the State 
        educational agency with information necessary to enable 
        the State educational agency to carry out its duties 
        under this part, including, with respect to paragraphs 
        (16) and (17) of section 612(a), information relating 
        to the performance of children with disabilities 
        participating in programs carried out under this part.
          (7) Public information.--The local educational agency 
        shall make available to parents of children with 
        disabilities and to the general public all documents 
        relating to the eligibility of such agency under this 
        part.
  (b) Exception for Prior Local Plans.--
          (1) In general.--If a local educational agency or 
        State agency has on file with the State educational 
        agency policies and procedures that demonstrate that 
        such local educational agency, or such State agency, as 
        the case may be, meets any requirement of subsection 
        (a), including any policies and procedures filed under 
        this part as in effect before the effective date of the 
        Individuals with Disabilities Education Act Amendments 
        of 1997, the State educational agency shall consider 
        such local educational agency or State agency, as the 
        case may be, to have met such requirement for purposes 
        of receiving assistance under this part.
          (2) Modification made by local educational agency.--
        Subject to paragraph (3), an application submitted by a 
        local educational agency in accordance with this 
        section shall remain in effect until it submits to the 
        State educational agency such modifications as the 
        local educational agency deems necessary.
          (3) Modifications required by state educational 
        agency.--If, after the effective date of the 
        Individuals with Disabilities Education Act Amendments 
        of 1997, the provisions of this Act are amended (or the 
        regulations developed to carry out this Act are 
        amended), or there is a new interpretation of this Act 
        by Federal or State courts, or there is an official 
        finding of noncompliance with Federal or State law or 
        regulations, the State educational agency may require a 
        local educational agency to modify its application only 
        to the extent necessary to ensure the local educational 
        agency's compliance with this part or State law.
  (c) Notification of Local Educational Agency or State Agency 
in Case of Ineligibility.--If the State educational agency 
determines that a local educational agency or State agency is 
not eligible under this section, the State educational agency 
shall notify the local educational agency or State agency, as 
the case may be, of that determination and shall provide such 
local educational agency or State agency with reasonable notice 
and an opportunity for a hearing.
  (d) Local Educational Agency Compliance.--
          (1) In general.--If the State educational agency, 
        after reasonable notice and an opportunity for a 
        hearing, finds that a local educational agency or State 
        agency that has been determined to be eligible under 
        this section is failing to comply with any requirement 
        described in subsection (a), the State educational 
        agency shall reduce or shall not provide any further 
        payments to the local educational agency or State 
        agency until the State educational agency is satisfied 
        that the local educational agency or State agency, as 
        the case may be, is complying with that requirement.
          (2) Additional requirement.--Any State agency or 
        local educational agency in receipt of a notice 
        described in paragraph (1) shall, by means of public 
        notice, take such measures as may benecessary to bring 
the pendency of an action pursuant to this subsection to the attention 
of the public within the jurisdiction of such agency.
          (3) Consideration.--In carrying out its 
        responsibilities under paragraph (1), the State 
        educational agency shall consider any decision made in 
        a hearing held under section 615 that is adverse to the 
        local educational agency or State agency involved in 
        that decision.
      (e) Joint Establishment of Eligibility.--
          (1) Joint establishment.--
                  (A) In general.--A State educational agency 
                may require a local educational agency to 
                establish its eligibility jointly with another 
                local educational agency if the State 
                educational agency determines that the local 
                educational agency would be ineligible under 
                this section because the local educational 
                agency would not be able to establish and 
                maintain programs of sufficient size and scope 
                to effectively meet the needs of children with 
                disabilities.
                  (B) Charter school exception.--A State 
                educational agency may not require a charter 
                school that is a local educational agency to 
                jointly establish its eligibility under 
                subparagraph (A) unless it is explicitly 
                permitted to do so under the State's charter 
                school statute.
          (2) Amount of payments.--If a State educational 
        agency requires the joint establishment of eligibility 
        under paragraph (1), the total amount of funds made 
        available to the affected local educational agencies 
        shall be equal to the sum of the payments that each 
        such local educational agency would have received under 
        section 611(g) if such agencies were eligible for such 
        payments.
          (3) Requirements.--Local educational agencies that 
        establish joint eligibility under this subsection 
        shall--
                  (A) adopt policies and procedures that are 
                consistent with the State's policies and 
                procedures under section 612(a); and
                  (B) be jointly responsible for implementing 
                programs that receive assistance under this 
                part.
          (4) Requirements for educational service agencies.--
                  (A) In general.--If an educational service 
                agency is required by State law to carry out 
                programs under this part, the joint 
                responsibilities given to local educational 
                agencies under this subsection shall--
                          (i) not apply to the administration 
                        and disbursement of any payments 
                        received by that educational service 
                        agency; and
                          (ii) be carried out only by that 
                        educational service agency.
                  (B) Additional requirement.--Notwithstanding 
                any other provision of this subsection, an 
                educational service agency shall provide for 
                the education of children with disabilities in 
                the least restrictive environment, as required 
                by section 612(a)(5).
  (f) Coordinated Services System.--
          (1) In general.--A local educational agency may not 
        use more than 5 percent of the amount such agency 
        receives under this part for any fiscal year, in 
        combination with other amounts (which shall include 
        amounts other than education funds), to develop and 
        implement a coordinated services system designed to 
        improve results for children and families, including 
        children with disabilities and their families.
          (2) Activities.--In implementing a coordinated 
        services system under this subsection, a local 
        educational agency may carry out activities that 
        include--
                  (A) improving the effectiveness and 
                efficiency of service delivery, including 
                developing strategies that promote 
                accountability for results;
                  (B) service coordination and case management 
                that facilitates the linkage of individualized 
                education programs under this part and 
                individualized family service plans under part 
                C with individualized service plans under 
                multiple Federal and State programs, such as 
                title I of the Rehabilitation Act of 1973 
                (vocational rehabilitation), title XIX of the 
                Social Security Act (Medicaid), and title XVI 
                of the Social Security Act (supplemental 
                security income);
                  (C) developing and implementing interagency 
                financing strategies for the provision of 
                education, health, mental health, and social 
                services, including transition services and 
                related services under this Act; and
                  (D) interagency personnel development for 
                individuals working on coordinated services.
          (3) Coordination with certain projects under 
        elementary and secondary education act of 1965.--If a 
        local educational agency is carrying out a coordinated 
        services project under title XI of the Elementary and 
        Secondary Education Act of 1965 and a coordinated 
        services project under this part in the same schools, 
        such agency shall use amounts under this subsection in 
        accordance with the requirements of that title.
  (g) School-Based Improvement Plan.--
          (1) In general.--Each local educational agency may, 
        in accordance with paragraph (2), use funds made 
        available under this part to permit a public school 
        within the jurisdiction of the local educational agency 
        to design, implement, and evaluate a school-based 
        improvement plan that is consistent with the purposes 
        described in section 651(b) and that is designed to 
        improve educational and transitional results for all 
        children with disabilities and, as appropriate, for 
        other children consistent with subparagraphs (A) and 
        (B) of subsection (a)(4) in that public school.
          (2) Authority.--
                  (A) In general.--A State educational agency 
                may grant authority to a local educational 
                agency to permit a public school described in 
                paragraph (1) (through a school-based standing 
                panel established under paragraph (4)(B)) to 
                design, implement, and evaluate a school-based 
                improvement plan described in paragraph (1) for 
                a period not to exceed 3 years.
                  (B) Responsibility of local educational 
                agency.--If a State educational agency grants 
                the authority described in subparagraph (A), a 
                local educational agency that is granted such 
                authority shall have the sole responsibility of 
                oversight of all activities relating to the 
                design, implementation, and evaluation of any 
                school-based improvement plan that a public 
                school is permitted to design under this 
                subsection.
          (3) Plan requirements.--A school-based improvement 
        plan described in paragraph (1) shall--
                  (A) be designed to be consistent with the 
                purposes described in section 651(b) and to 
                improve educational and transitional results 
                for all children with disabilities and, as 
                appropriate, for other children consistent with 
                subparagraphs (A) and (B) of subsection (a)(4), 
                who attend the school for which the plan is 
                designed and implemented;
                  (B) be designed, evaluated, and, as 
                appropriate, implemented by a school-based 
                standing panel established in accordance with 
                paragraph (4)(B);
                  (C) include goals and measurable indicators 
                to assess the progress of the public school in 
                meeting such goals; and
                  (D) ensure that all children with 
                disabilities receive the services described in 
                the individualized education programs of such 
                children.
          (4) Responsibilities of the local educational 
        agency.--A local educational agency that is granted 
        authority under paragraph (2) to permit a public school 
        to design, implement, and evaluate a school-based 
        improvement plan shall--
                  (A) select each school under the jurisdiction 
                of such agency that is eligible to design, 
                implement, and evaluate such a plan;
                  (B) require each school selected under 
                subparagraph (A), in accordance with criteria 
                established by such local educational agency 
                under subparagraph (C), to establish a school-
                based standing panel to carry out the duties 
                described in paragraph (3)(B);
                  (C) establish--
                          (i) criteria that shall be used by 
                        such local educational agency in the 
                        selection of an eligible school under 
                        subparagraph (A);
                          (ii) criteria that shall be used by a 
                        public school selected under 
                        subparagraph (A) in the establishment 
                        of a school-based standing panel to 
                        carry out the duties described in 
                        paragraph (3)(B) and that shall ensure 
                        that the membership of such panel 
                        reflects the diversity of the community 
                        in which the public school is located 
                        and includes, at a minimum--
                                  (I) parents of children with 
                                disabilities who attend such 
                                public school, including 
                                parents of children with 
                                disabilities from unserved and 
                                underserved populations, as 
                                appropriate;
                                  (II) special education and 
                                general education teachers of 
                                such public school;
                                  (III) special education and 
                                general education 
                                administrators, or the designee 
                                of such administrators, of such 
                                public school; and
                                  (IV) related services 
                                providers who are responsible 
                                for providing services to the 
                                children with disabilities who 
                                attend such public school; and
                          (iii) criteria that shall be used by 
                        such local educational agency with 
                        respect to the distribution of funds 
                        under this part to carry out this 
                        subsection;
                  (D) disseminate the criteria established 
                under subparagraph (C) to local school district 
                personnel and local parent organizations within 
                the jurisdiction of such local educational 
                agency;
                  (E) require a public school that desires to 
                design, implement, and evaluate a school-based 
                improvement plan to submit an application at 
                such time, in such manner, and accompanied by 
                such information as such local educational 
                agency shall reasonably require; and
                  (F) establish procedures for approval by such 
                local educational agency of a school-based 
                improvement plan designed under this 
                subsection.
          (5) Limitation.--A school-based improvement plan 
        described in paragraph (1) may be submitted to a local 
        educational agency for approval only if a consensus 
        with respect to any matter relating to the design, 
        implementation, or evaluation of the goals of such plan 
        is reached by the school-based standing panel that 
        designed such plan.
          (6) Additional requirements.--
                  (A) Parental involvement.--In carrying out 
                the requirements of this subsection, a local 
                educational agency shall ensure that the 
                parents of children with disabilities are 
                involved in the design, evaluation, and, where 
                appropriate, implementation of school-based 
                improvement plans in accordance with this 
                subsection.
                  (B) Plan approval.--A local educational 
                agency may approve a school-based improvement 
                plan of a public school within the jurisdiction 
                of such agency for a period of 3 years, if--
                          (i) the approval is consistent with 
                        the policies, procedures, and practices 
                        established by such local educational 
                        agency and in accordance with this 
                        subsection; and
                          (ii) a majority of parents of 
                        children who are members of the school-
                        based standing panel, and a majority of 
                        other members of the school-based 
                        standing panel, that designed such plan 
                        agree in writing to such plan.
          (7) Extension of plan.--If a public school within the 
        jurisdiction of a local educational agency meets the 
        applicable requirements and criteria described in 
        paragraphs (3) and (4) at the expiration of the 3-year 
        approval period described in paragraph (6)(B), such 
        agency may approve a school-based improvement plan of 
        such school for an additional 3-year period.
  (h) Direct Services by the State Educational Agency.--
          (1) In general.--A State educational agency shall use 
        the payments that would otherwise have been available 
        to a local educational agency or to a State agency to 
        provide special education and related services directly 
        to children with disabilities residing in the area 
        served by that local agency, or for whom that State 
        agency is responsible, if the State educational agency 
        determines that the local education agency or State 
        agency, as the case may be--
                  (A) has not provided the information needed 
                to establish the eligibility of such agency 
                under this section;
                  (B) is unable to establish and maintain 
                programs of free appropriate public education 
                that meet the requirements of subsection (a);
                  (C) is unable or unwilling to be consolidated 
                with one or more local educational agencies in 
                order to establish and maintain such programs; 
                or
                  (D) has one or more children with 
                disabilities who can best be served by a 
                regional or State program or service-delivery 
                system designed to meet the needs of such 
                children.
          (2) Manner and location of education and services.--
        The State educational agency may provide special 
        education and related services under paragraph (1) in 
        such manner and at such locations (including regional 
        or State centers) as the State agency considers 
        appropriate. Such education and services shall be 
        provided in accordance with this part.
  (i) State Agency Eligibility.--Any State agency that desires 
to receive a subgrant for any fiscal year under section 611(g) 
shall demonstrate to the satisfaction of the State educational 
agency that--
          (1) all children with disabilities who are 
        participating in programs and projects funded under 
        this part receive a free appropriate public education, 
        and that those children and their parents are provided 
        all the rights and procedural safeguards described in 
        this part; and
          (2) the agency meets such other conditions of this 
        section as the Secretary determines to be appropriate.
  (j) Disciplinary Information.--The State may require that a 
local educational agency include in the records of a child with 
a disability a statement of any current or previous 
disciplinary action that has been taken against the child and 
transmit such statement to the same extent that such 
disciplinary information is included in, and transmitted with, 
the student records of nondisabled children. The statement may 
include a description of any behavior engaged in by the child 
that required disciplinary action, a description of the 
disciplinary action taken, and any other information that is 
relevant to the safety of the child and other individuals 
involved with the child. If the State adopts such a policy, and 
the child transfers from one school to another, the 
transmission of any of the child's records must include both 
the child's current individualized education program and any 
such statement of current or previous disciplinary action that 
has been taken against the child.

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

  (a) Evaluations and Reevaluations.--
          (1) Initial evaluations.--
                  (A) In general.--A State educational agency, 
                other State agency, or local educational agency 
                shall conduct a full and individual initial 
                evaluation, in accordance with this paragraph 
                and subsection (b), before the initial 
                provision of special education and related 
                services to a child with a disability under 
                this part.
                  (B) Procedures.--Such initial evaluation 
                shall consist of procedures--
                          (i) to determine whether a child is a 
                        child with a disability (as defined in 
                        section 602(3)); and
                          (ii) to determine the educational 
                        needs of such child.
                  (C) Parental consent.--
                          (i) In general.--The agency proposing 
                        to conduct an initial evaluation to 
                        determine if the child qualifies as a 
                        child with a disability as defined in 
                        section 602(3)(A) or 602(3)(B) shall 
                        obtain an informed consent from the 
                        parent of such child before the 
                        evaluation is conducted. Parental 
                        consent for evaluation shall not be 
                        construed as consent for placement for 
                        receipt of special education and 
                        related services.
                          (ii) Refusal.--If the parents of such 
                        child refuse consent for the 
                        evaluation, the agency may continue to 
                        pursue an evaluation by utilizing the 
                        mediation and due process procedures 
                        under section 615, except to the extent 
                        inconsistent with State law relating to 
                        parental consent.
          (2) Reevaluations.--A local educational agency shall 
        ensure that a reevaluation of each child with a 
        disability is conducted--
                  (A) if conditions warrant a reevaluation or 
                if the child's parent or teacher requests a 
                reevaluation, but at least once every 3 years; 
                and
                  (B) in accordance with subsections (b) and 
                (c).
  (b) Evaluation Procedures.--
          (1) Notice.--The local educational agency shall 
        provide notice to the parents of a child with a 
        disability, in accordance with subsections (b)(3), 
        (b)(4), and (c) of section 615, that describes any 
        evaluation procedures such agency proposes to conduct.
          (2) Conduct of evaluation.--In conducting the 
        evaluation, the local educational agency shall--
                  (A) use a variety of assessment tools and 
                strategies to gather relevant functional and 
                developmental information, including 
                information provided by the parent, that may 
                assist in determining whether the child is a 
                child with a disability and the content of the 
                child's individualized education program, 
                including information related to enabling the 
                child to be involved in and progress in the 
                general curriculum or, for preschool children, 
                to participate in appropriate activities;
                  (B) not use any single procedure as the sole 
                criterion for determining whether a child is a 
                child with a disability or determining an 
                appropriate educational program for the child; 
                and
                  (C) use technically sound instruments that 
                may assess the relative contribution of 
                cognitive and behavioral factors, in addition 
                to physical or developmental factors.
          (3) Additional requirements.--Each local educational 
        agency shall ensure that--
                  (A) tests and other evaluation materials used 
                to assess a child under this section--
                          (i) are selected and administered so 
                        as not to be discriminatory on a racial 
                        or cultural basis; and
                          (ii) are provided and administered in 
                        the child's native language or other 
                        mode of communication, unless it is 
                        clearly not feasible to do so; and
                  (B) any standardized tests that are given to 
                the child--
                          (i) have been validated for the 
                        specific purpose for which they are 
                        used;
                          (ii) are administered by trained and 
                        knowledgeable personnel; and
                          (iii) are administered in accordance 
                        with any instructions provided by the 
                        producer of such tests;
                  (C) the child is assessed in all areas of 
                suspected disability; and
                  (D) assessment tools and strategies that 
                provide relevant information that directly 
                assists persons in determining the educational 
                needs of the child are provided.
          (4) Determination of eligibility.--Upon completion of 
        administration of tests and other evaluation 
        materials--
                  (A) the determination of whether the child is 
                a child with a disability as defined in section 
                602(3) shall be made by a team of qualified 
                professionals and the parent of the child in 
                accordance with paragraph (5); and
                  (B) a copy of the evaluation report and the 
                documentation of determination of eligibility 
                will be given to the parent.
          (5) Special rule for eligibility determination.--In 
        making a determination of eligibility under paragraph 
        (4)(A), a child shall not be determined to be a child 
        with a disability if the determinant factor for such 
        determination is lack of instruction in reading or math 
        or limited English proficiency.
  (c) Additional Requirements for Evaluation and 
Reevaluations.--
          (1) Review of existing evaluation data.--As part of 
        an initial evaluation (if appropriate) and as part of 
        any reevaluation under this section, the IEP Team 
        described in subsection (d)(1)(B) and other qualified 
        professionals, as appropriate, shall--
                  (A) review existing evaluation data on the 
                child, including evaluations and information 
                provided by the parents of the child, current 
                classroom-based assessments andobservations, 
and teacher and related services providers observation; and
                  (B) on the basis of that review, and input 
                from the child's parents, identify what 
                additional data, if any, are needed to 
                determine--
                          (i) whether the child has a 
                        particular category of disability, as 
                        described in section 602(3), or, in 
                        case of a reevaluation of a child, 
                        whether the child continues to have 
                        such a disability;
                          (ii) the present levels of 
                        performance and educational needs of 
                        the child;
                          (iii) whether the child needs special 
                        education and related services, or in 
                        the case of a reevaluation of a child, 
                        whether the child continues to need 
                        special education and related services; 
                        and
                          (iv) whether any additions or 
                        modifications to the special education 
                        and related services are needed to 
                        enable the child to meet the measurable 
                        annual goals set out in the 
                        individualized education program of the 
                        child and to participate, as 
                        appropriate, in the general curriculum.
          (2) Source of data.--The local educational agency 
        shall administer such tests and other evaluation 
        materials as may be needed to produce the data 
        identified by the IEP Team under paragraph (1)(B).
          (3) Parental consent.--Each local educational agency 
        shall obtain informed parental consent, in accordance 
        with subsection (a)(1)(C), prior to conducting any 
        reevaluation of a child with a disability, except that 
        such informed parent consent need not be obtained if 
        the local educational agency can demonstrate that it 
        had taken reasonable measures to obtain such consent 
        and the child's parent has failed to respond.
          (4) Requirements if additional data are not needed.--
        If the IEP Team and other qualified professionals, as 
        appropriate, determine that no additional data are 
        needed to determine whether the child continues to be a 
        child with a disability, the local educational agency--
                  (A) shall notify the child's parents of--
                          (i) that determination and the 
                        reasons for it; and
                          (ii) the right of such parents to 
                        request an assessment to determine 
                        whether the child continues to be a 
                        child with a disability; and
                  (B) shall not be required to conduct such an 
                assessment unless requested to by the child's 
                parents.
          (5) Evaluations before change in eligibility.--A 
        local educational agency shall evaluate a child with a 
        disability in accordance with this section before 
        determining that the child is no longer a child with a 
        disability.
  (d) Individualized Education Programs.--
          (1) Definitions.--As used in this title:
                  (A) Individualized education program.--The 
                term ``individualized education program'' or 
                ``IEP'' means a written statement for each 
                child with a disability that is developed, 
                reviewed, and revised in accordance with this 
                section and that includes--
                          (i) a statement of the child's 
                        present levels of educational 
                        performance, including--
                                  (I) how the child's 
                                disability affects the child's 
                                involvement and progress in the 
                                general curriculum; or
                                  (II) for preschool children, 
                                as appropriate, how the 
                                disability affects the child's 
                                participation in appropriate 
                                activities;
                          (ii) a statement of measurable annual 
                        goals, including benchmarks or short-
                        term objectives, related to--
                                  (I) meeting the child's needs 
                                that result from the child's 
                                disability to enable the child 
                                to be involved in and progress 
                                in the general curriculum; and
                                  (II) meeting each of the 
                                child's other educational needs 
                                that result from the child's 
                                disability;
                          (iii) a statement of the special 
                        education and related services and 
                        supplementary aids and services to be 
                        provided to the child, or on behalf of 
                        the child, and a statement of the 
                        program modifications or supports for 
                        school personnel that will be provided 
                        for the child--
                                  (I) to advance appropriately 
                                toward attaining the annual 
                                goals;
                                  (II) to be involved and 
                                progress in the general 
                                curriculum in accordance with 
                                clause (i) and to participate 
                                in extracurricular and other 
                                nonacademic activities; and
                                  (III) to be educated and 
                                participate with other children 
                                with disabilities and 
                                nondisabled children in the 
                                activities described in this 
                                paragraph;
                          (iv) an explanation of the extent, if 
                        any, to which the child will not 
                        participate with nondisabled children 
                        in the regular class and in the 
                        activities described in clause (iii);
                          (v)(I) a statement of any individual 
                        modifications in the administration of 
                        State or districtwide assessments of 
                        student achievement that are needed in 
                        order for the child to participate in 
                        such assessment; and
                          (II) if the IEP Team determines that 
                        the child will not participate in a 
                        particular State or districtwide 
                        assessment of student achievement (or 
                        part of such an assessment), a 
                        statement of--
                                  (aa) why that assessment is 
                                not appropriate for the child; 
                                and
                                  (bb) how the child will be 
                                assessed;
                          (vi) the projected date for the 
                        beginning of the services and 
                        modifications described in clause 
                        (iii), and the anticipated frequency, 
                        location, and duration of those 
                        services and modifications;
                          (vii)(I) beginning at age 14, and 
                        updated annually, a statement of the 
                        transition service needs of the child 
                        under the applicable components of the 
                        child's IEP that focuses on the child's 
                        courses of study (such as participation 
                        in advanced-placement courses or a 
                        vocational education program);
                          (II) beginning at age 16 (or younger, 
                        if determined appropriate by the IEP 
                        Team), a statement of needed transition 
                        services for the child, including, when 
                        appropriate, a statement of the 
                        interagency responsibilities or any 
                        needed linkages; and
                          (III) beginning at least one year 
                        before the child reaches the age of 
                        majority under State law, a statement 
                        that the child has been informed of his 
                        or her rights under this title, if any, 
                        that will transfer to the child on 
                        reaching the age of majority under 
                        section 615(m); and
                          (viii) a statement of--
                                  (I) how the child's progress 
                                toward the annual goals 
                                described in clause (ii) will 
                                be measured; and
                                  (II) how the child's parents 
                                will be regularly informed (by 
                                such means as periodic report 
                                cards), at least as often as 
                                parents are informed of their 
                                nondisabled children's 
                                progress, of--
                                          (aa) their child's 
                                        progress toward the 
                                        annual goals described 
                                        in clause (ii); and
                                          (bb) the extent to 
                                        which that progress is 
                                        sufficient to enable 
                                        the child to achieve 
                                        the goals by the end of 
                                        the year.
                  (B) Individualized education program team.--
                The term ``individualized education program 
                team'' or ``IEP Team'' means a group of 
                individuals composed of--
                          (i) the parents of a child with a 
                        disability;
                          (ii) at least one regular education 
                        teacher of such child (if the child is, 
                        or may be, participating in the regular 
                        education environment);
                          (iii) at least one special education 
                        teacher, or where appropriate, at least 
                        one special education provider of such 
                        child;
                          (iv) a representative of the local 
                        educational agency who--
                                  (I) is qualified to provide, 
                                or supervise the provision of, 
                                specially designed instruction 
                                to meet the unique needs of 
                                children with disabilities;
                                  (II) is knowledgeable about 
                                the general curriculum; and
                                  (III) is knowledgeable about 
                                the availability of resources 
                                of the local educational 
                                agency;
                          (v) an individual who can interpret 
                        the instructional implications of 
                        evaluation results, who may be a member 
                        of the team described in clauses (ii) 
                        through (vi);
                          (vi) at the discretion of the parent 
                        or the agency, other individuals who 
                        have knowledge or special expertise 
                        regarding the child, including related 
                        services personnel as appropriate; and
                          (vii) whenever appropriate, the child 
                        with a disability.
          (2) Requirement that program be in effect.--
                  (A) In general.--At the beginning of each 
                school year, each local educational agency, 
                State educational agency, or other State 
                agency, as the case may be, shall have in 
                effect, for each child with a disability in its 
                jurisdiction, an individualized education 
                program, as defined in paragraph (1)(A).
                  (B) Program for child aged 3 through 5.--In 
                the case of a child with a disability aged 3 
                through 5 (or, at the discretion of the State 
                educational agency, a 2 year-old child with a 
                disability who will turn age 3 during the 
                school year), an individualized family service 
                plan that contains the material described in 
                section 636, and that is developed in 
                accordance with this section, may serve as the 
                IEP of the child if using that plan as the IEP 
                is--
                          (i) consistent with State policy; and
                          (ii) agreed to by the agency and the 
                        child's parents.
          (3) Development of iep.--
                  (A) In general.--In developing each child's 
                IEP, the IEP Team, subject to subparagraph (C), 
                shall consider--
                          (i) the strengths of the child and 
                        the concerns of the parents for 
                        enhancing the education of their child; 
                        and
                          (ii) the results of the initial 
                        evaluation or most recent evaluation of 
                        the child.
                  (B) Consideration of special factors.--The 
                IEP Team shall--
                          (i) in the case of a child whose 
                        behavior impedes his or her learning or 
                        that of others, consider, when 
                        appropriate, strategies, including 
                        positive behavioral interventions, 
                        strategies, and supports to address 
                        that behavior;
                          (ii) in the case of a child with 
                        limited English proficiency, consider 
                        the language needs of the child as such 
                        needs relate to the child's IEP;
                          (iii) in the case of a child who is 
                        blind or visually impaired, provide for 
                        instruction in Braille and the use of 
                        Braille unless the IEP Team determines, 
                        after an evaluation of the child's 
                        reading and writing skills, needs, and 
                        appropriate reading and writing media 
                        (including an evaluation of the child's 
                        future needs for instruction in Braille 
                        or the use of Braille), that 
                        instruction in Braille or the use of 
                        Braille is not appropriate for the 
                        child;
                          (iv) consider the communication needs 
                        of the child, and in the case of a 
                        child who is deaf or hard of hearing, 
                        consider the child's language and 
                        communication needs, opportunities for 
                        direct communications with peers and 
                        professional personnel in the child's 
                        language and communication mode, 
                        academic level, andfull range of needs, 
including opportunities for direct instruction in the child's language 
and communication mode; and
                          (v) consider whether the child 
                        requires assistive technology devices 
                        and services.
                  (C) Requirement with respect to regular 
                education teacher.--The regular education 
                teacher of the child, as a member of the IEP 
                Team, shall, to the extent appropriate, 
                participate in the development of the IEP of 
                the child, including the determination of 
                appropriate positive behavioral interventions 
                and strategies and the determination of 
                supplementary aids and services, program 
                modifications, and support for school personnel 
                consistent with paragraph (1)(A)(iii).
          (4) Review and revision of iep.--
                  (A) In general.--The local educational agency 
                shall ensure that, subject to subparagraph (B), 
                the IEP Team--
                          (i) reviews the child's IEP 
                        periodically, but not less than 
                        annually to determine whether the 
                        annual goals for the child are being 
                        achieved; and
                          (ii) revises the IEP as appropriate 
                        to address--
                                  (I) any lack of expected 
                                progress toward the annual 
                                goals and in the general 
                                curriculum, where appropriate;
                                  (II) the results of any 
                                reevaluation conducted under 
                                this section;
                                  (III) information about the 
                                child provided to, or by, the 
                                parents, as described in 
                                subsection (c)(1)(B);
                                  (IV) the child's anticipated 
                                needs; or
                                  (V) other matters.
                  (B) Requirement with respect to regular 
                education teacher.--The regular education 
                teacher of the child, as a member of the IEP 
                Team, shall, to the extent appropriate, 
                participate in the review and revision of the 
                IEP of the child.
          (5) Failure to meet transition objectives.--If a 
        participating agency, other than the local educational 
        agency, fails to provide the transition services 
        described in the IEP in accordance with paragraph 
        (1)(A)(vii), the local educational agency shall 
        reconvene the IEP Team to identify alternative 
        strategies to meet the transition objectives for the 
        child set out in that program.
          (6) Children with disabilities in adult prisons.--
                  (A) In general.--The following requirements 
                do not apply to children with disabilities who 
                are convicted as adults under State law and 
                incarcerated in adult prisons:
                          (i) The requirements contained in 
                        section 612(a)(17) and paragraph 
                        (1)(A)(v) of this subsection (relating 
                        to participation of children with 
                        disabilities in general assessments).
                          (ii) The requirements of subclauses 
                        (I) and (II) of paragraph (1)(A)(vii) 
                        of this subsection (relating to 
                        transition planning and transition 
                        services), do not apply with respect to 
                        such children whose eligibility under 
                        this part will end, because of their 
                        age, before they will be released from 
                        prison.
                  (B) Additional requirement.--If a child with 
                a disability is convicted as an adult under 
                State law and incarcerated in an adult prison, 
                the child's IEP team may modify the child's IEP 
                or placement notwithstanding the requirements 
                of sections 612(a)(5)(A) and 614(d)(1)(A) if 
                the State has demonstrated a bona fide security 
                or compelling penological interest that cannot 
                otherwise be accommodated.
  (e) Construction.--Nothing in this section shall be construed 
to require the IEP team to include information under one 
component of a child's IEP that is already contained under 
another component of such IEP.
  (f) Educational Placements.--Each local educational agency or 
State educational agency shall ensure that the parents of each 
child with a disability are members of any group that makes 
decisions on the educational placement of their child.

SEC. 615. PROCEDURAL SAFEGUARDS.

  (a) Establishment of Procedures.--Any State educational 
agency, State agency, or local educational agency that receives 
assistance under this part shall establish and maintain 
procedures in accordance with this section to ensure that 
children with disabilities and their parents are guaranteed 
procedural safeguards with respect to the provision of free 
appropriate public education by such agencies.
  (b) Types of Procedures.--The procedures required by this 
section shall include--
          (1) an opportunity for the parents of a child with a 
        disability to examine all records relating to such 
        child and to participate in meetings with respect to 
        the identification, evaluation, and educational 
        placement of the child, and the provision of a free 
        appropriate public education to such child, and to 
        obtain an independent educational evaluation of the 
        child;
          (2) procedures to protect the rights of the child 
        whenever the parents of the child are not known, the 
        agency cannot, after reasonable efforts, locate the 
        parents, or the child is a ward of the State, including 
        the assignment of an individual (who shall not be an 
        employee of the State educational agency, the local 
        educational agency, or any other agency that is 
        involved in the education or care of the child) to act 
        as a surrogate for the parents;
          (3) written prior notice to the parents of the child 
        whenever such agency--
                  (A) proposes to initiate or change; or
                  (B) refuses to initiate or change;
        the identification, evaluation, or educational 
        placement of the child, in accordance with subsection 
        (c), or the provision of a free appropriate public 
        education to the child;
          (4) procedures designed to ensure that the notice 
        required by paragraph (3) is in the native language of 
        the parents, unless it clearly is not feasible to do 
        so;
          (5) an opportunity for mediation in accordance with 
        subsection (e);
          (6) an opportunity to present complaints with respect 
        to any matter relating to the identification, 
        evaluation, or educational placement of the child, or 
        the provision of a free appropriate public education to 
        such child;
          (7) procedures that require the parent of a child 
        with a disability, or the attorney representing the 
        child, to provide notice (which shall remain 
        confidential)--
                  (A) to the State educational agency or local 
                educational agency, as the case may be, in the 
                complaint filed under paragraph (6); and
                  (B) that shall include--
                          (i) the name of the child, the 
                        address of the residence of the child, 
                        and the name of the school the child is 
                        attending;
                          (ii) a description of the nature of 
                        the problem of the child relating to 
                        such proposed initiation or change, 
                        including facts relating to such 
                        problem; and
                          (iii) a proposed resolution of the 
                        problem to the extent known and 
                        available to the parents at the time; 
                        and
          (8) procedures that require the State educational 
        agency to develop a model form to assist parents in 
        filing a complaint in accordance with paragraph (7).
  (c) Content of Prior Written Notice.--The notice required by 
subsection (b)(3) shall include--
          (1) a description of the action proposed or refused 
        by the agency;
          (2) an explanation of why the agency proposes or 
        refuses to take the action;
          (3) a description of any other options that the 
        agency considered and the reasons why those options 
        were rejected;
          (4) a description of each evaluation procedure, test, 
        record, or report the agency used as a basis for the 
        proposed or refused action;
          (5) a description of any other factors that are 
        relevant to the agency's proposal or refusal;
          (6) a statement that the parents of a child with a 
        disability have protection under the procedural 
        safeguards of this part and, if this notice is not an 
        initial referral for evaluation, the means by which a 
        copy of a description of the procedural safeguards can 
        be obtained; and
          (7) sources for parents to contact to obtain 
        assistance in understanding the provisions of this 
        part.
  (d) Procedural Safeguards Notice.--
          (1) In general.--A copy of the procedural safeguards 
        available to the parents of a child with a disability 
        shall be given to the parents, at a minimum--
                  (A) upon initial referral for evaluation;
                  (B) upon each notification of an 
                individualized education program meeting and 
                upon reevaluation of the child; and
                  (C) upon registration of a complaint under 
                subsection (b)(6).
          (2) Contents.--The procedural safeguards notice shall 
        include a full explanation of the procedural 
        safeguards, written in the native language of the 
        parents, unless it clearly is not feasible to do so, 
        and written in an easily understandable manner, 
        available under this section and under regulations 
        promulgated by the Secretary relating to--
                  (A) independent educational evaluation;
                  (B) prior written notice;
                  (C) parental consent;
                  (D) access to educational records;
                  (E) opportunity to present complaints;
                  (F) the child's placement during pendency of 
                due process proceedings;
                  (G) procedures for students who are subject 
                to placement in an interim alternative 
                educational setting;
                  (H) requirements for unilateral placement by 
                parents of children in private schools at 
                public expense;
                  (I) mediation;
                  (J) due process hearings, including 
                requirements for disclosure of evaluation 
                results and recommendations;
                  (K) State-level appeals (if applicable in 
                that State);
                  (L) civil actions; and
                  (M) attorneys' fees.
  (e) Mediation.--
          (1) In general.--Any State educational agency or 
        local educational agency that receives assistance under 
        this part shall ensure that procedures are established 
        and implemented to allow parties to disputes involving 
        any matter described in subsection (b)(6) to resolve 
        such disputes through a mediation process which, at a 
        minimum, shall be available whenever a hearing is 
        requested under subsection (f) or (k).
          (2) Requirements.--Such procedures shall meet the 
        following requirements:
                  (A) The procedures shall ensure that the 
                mediation process--
                          (i) is voluntary on the part of the 
                        parties;
                          (ii) is not used to deny or delay a 
                        parent's right to a due process hearing 
                        under subsection (f), or to deny any 
                        other rights afforded under this part; 
                        and
                          (iii) is conducted by a qualified and 
                        impartial mediator who is trained in 
                        effective mediation techniques.
                  (B) A local educational agency or a State 
                agency may establish procedures to require 
                parents who choose not to use the mediation 
                process to meet, at a time and location 
                convenient to the parents, with a disinterested 
                party who is under contract with--
                          (i) a parent training and information 
                        center or community parent resource 
                        center in the State established under 
                        section 682 or 683; or
                          (ii) an appropriate alternative 
                        dispute resolution entity;
                to encourage the use, and explain the benefits, 
                of the mediation process to the parents.
                  (C) The State shall maintain a list of 
                individuals who are qualified mediators and 
                knowledgeable in laws and regulations relating 
                to the provision of special education and 
                related services.
                  (D) The State shall bear the cost of the 
                mediation process, including the costs of 
                meetings described in subparagraph (B).
                  (E) Each session in the mediation process 
                shall be scheduled in a timely manner and shall 
                be held in a location that is convenient to the 
                parties to the dispute.
                  (F) An agreement reached by the parties to 
                the dispute in the mediation process shall be 
                set forth in a written mediation agreement.
                  (G) Discussions that occur during the 
                mediation process shall be confidential and may 
                not be used as evidence in any subsequent due 
                process hearings or civil proceedings and the 
                parties to the mediation process may be 
                required to sign a confidentiality pledge prior 
                to the commencement of such process.
  (f) Impartial Due Process Hearing.--
          (1) In general.--Whenever a complaint has been 
        received under subsection (b)(6) or (k) of this 
        section, the parents involved in such complaint shall 
        have an opportunity for an impartial due process 
        hearing, which shall be conducted by the State 
        educational agency or by the local educational agency, 
        as determined by State law or by the State educational 
        agency.
          (2) Disclosure of evaluations and recommendations.--
                  (A) In general.--At least 5 business days 
                prior to a hearing conducted pursuant to 
                paragraph (1), each party shall disclose to all 
                other parties all evaluations completed by that 
                date and recommendations based on the offering 
                party's evaluations that the party intends to 
                use at the hearing.
                  (B) Failure to disclose.--A hearing officer 
                may bar any party that fails to comply with 
                subparagraph (A) from introducing the relevant 
                evaluation or recommendation at the hearing 
                without the consent of the other party.
          (3) Limitation on conduct of hearing.--A hearing 
        conducted pursuant to paragraph (1) may not be 
        conducted by an employee of the State educational 
        agency or the local educational agency involved in the 
        education or care of the child.
  (g) Appeal.--If the hearing required by subsection (f) is 
conducted by a local educational agency, any party aggrieved by 
the findings and decision rendered in such a hearing may appeal 
such findings and decision to the State educational agency. 
Such agency shall conduct an impartial review of such decision. 
The officer conducting such review shall make an independent 
decision upon completion of such review.
  (h) Safeguards.--Any party to a hearing conducted pursuant to 
subsection (f) or (k), or an appeal conducted pursuant to 
subsection (g), shall be accorded--
          (1) the right to be accompanied and advised by 
        counsel and by individuals with special knowledge or 
        training with respect to the problems of children with 
        disabilities;
          (2) the right to present evidence and confront, 
        cross-examine, and compel the attendance of witnesses;
          (3) the right to a written, or, at the option of the 
        parents, electronic verbatim record of such hearing; 
        and
          (4) the right to written, or, at the option of the 
        parents, electronic findings of fact and decisions 
        (which findings and decisions shall be made available 
        to the public consistent with the requirements of 
        section 617(c) (relating to the confidentiality of 
        data, information, and records) and shall also be 
        transmitted to the advisory panel established pursuant 
        to section 612(a)(21)).
  (i) Administrative Procedures.--
          (1) In general.--
                  (A) Decision made in hearing.--A decision 
                made in a hearing conducted pursuant to 
                subsection (f) or (k) shall be final, except 
                that any party involved in such hearing may 
                appeal such decision under the provisions of 
                subsection (g) and paragraph (2) of this 
                subsection.
                  (B) Decision made at appeal.--A decision made 
                under subsection (g) shall be final, except 
                that any party may bring an action under 
                paragraph (2) of this subsection.
          (2) Right to bring civil action.--
                  (A) In general.--Any party aggrieved by the 
                findings and decision made under subsection (f) 
                or (k) who does not have the right to an appeal 
                under subsection (g), and any party aggrieved 
                by the findings and decision under this 
                subsection, shall have the right to bring a 
                civil action with respect to the complaint 
                presented pursuant to this section, which 
                action may be brought in any State court of 
                competent jurisdiction or in a district court 
                of the United States without regard to the 
                amount in controversy.
                  (B) Additional requirements.--In any action 
                brought under this paragraph, the court--
                          (i) shall receive the records of the 
                        administrative proceedings;
                          (ii) shall hear additional evidence 
                        at the request of a party; and
                          (iii) basing its decision on the 
                        preponderance of the evidence, shall 
                        grant such relief as the court 
                        determines is appropriate.
          (3) Jurisdiction of district courts; attorneys' 
        fees.--
                  (A) In general.--The district courts of the 
                United States shall have jurisdiction of 
                actions brought under this section without 
                regard to the amount in controversy.
                  (B) Award of attorneys' fees.--In any action 
                or proceeding brought under this section, the 
                court, in its discretion, may award reasonable 
                attorneys' fees as part of the costs to the 
                parents of a child with a disability who is the 
                prevailing party.
                  (C) Determination of amount of attorneys' 
                fees.--Fees awarded under this paragraph shall 
                be based on rates prevailing in the community 
                in which the action or proceeding arose for the 
                kind and quality of services furnished. No 
                bonus or multiplier may be used in calculating 
                the fees awarded under this subsection.
                  (D) Prohibition of attorneys' fees and 
                related costs for certain services.--
                          (i) Attorneys' fees may not be 
                        awarded and related costs may not be 
                        reimbursed in any action or proceeding 
                        under this section for services 
                        performed subsequent to the time of a 
                        written offer of settlement to a parent 
                        if--
                                  (I) the offer is made within 
                                the time prescribed by Rule 68 
                                of the Federal Rules of Civil 
                                Procedure or, in the case of an 
                                administrative proceeding, at 
                                any time more than ten days 
                                before the proceeding begins;
                                  (II) the offer is not 
                                accepted within 10 days; and
                                  (III) the court or 
                                administrative hearing officer 
                                finds that the relief finally 
                                obtained by the parents is not 
                                more favorable to the parents 
                                than the offer of settlement.
                          (ii) Attorneys' fees may not be 
                        awarded relating to any meeting of the 
                        IEP Team unless such meeting is 
                        convened as a result of an 
                        administrative proceeding or judicial 
                        action, or, at the discretion of the 
                        State, for a mediation described in 
                        subsection (e) that is conducted prior 
                        to the filing of a complaint under 
                        subsection (b)(6) or (k) of this 
                        section.
                  (E) Exception to prohibition on attorneys' 
                fees and related costs.--Notwithstanding 
                subparagraph (D), an award of attorneys' fees 
                and related costs may be made to a parent who 
                is the prevailing party and who was 
                substantially justified in rejecting the 
                settlement offer.
                  (F) Reduction in amount of attorneys' fees.--
                Except as provided in subparagraph (G), 
                whenever the court finds that--
                          (i) the parent, during the course of 
                        the action or proceeding, unreasonably 
                        protracted the final resolution of the 
                        controversy;
                          (ii) the amount of the attorneys' 
                        fees otherwise authorized to be awarded 
                        unreasonably exceeds the hourly rate 
                        prevailing in the community for similar 
                        services by attorneys of reasonably 
                        comparable skill, reputation, and 
                        experience;
                          (iii) the time spent and legal 
                        services furnished were excessive 
                        considering the nature of the action or 
                        proceeding; or
                          (iv) the attorney representing the 
                        parent did not provide to the school 
                        district the appropriate information in 
                        the due process complaint in accordance 
                        with subsection (b)(7);
                the court shall reduce, accordingly, the amount 
                of the attorneys' fees awarded under this 
                section.
                  (G) Exception to reduction in amount of 
                attorneys' fees.--The provisions of 
                subparagraph (F) shall not apply in any action 
                or proceeding if the court finds that the State 
                or local educational agency unreasonably 
                protracted the final resolution of the action 
                or proceeding or there was a violation of this 
                section.
  (j) Maintenance of Current Educational Placement.--Except as 
provided in subsection (k)(7), during the pendency of any 
proceedings conducted pursuant to this section, unless the 
State or local educational agency and the parents otherwise 
agree, the child shall remain in the then-current educational 
placement of such child, or, if applying for initial admission 
to a public school, shall, with the consent of the parents, be 
placed in the public school program until all such proceedings 
have been completed.
  (k) Placement in Alternative Educational Setting.--
          (1) Authority of school personnel.--
                  (A) School personnel under this section may 
                order a change in the placement of a child with 
                a disability--
                          (i) to an appropriate interim 
                        alternative educational setting, 
                        another setting, or suspension, for not 
                        more than 10 school days (to the extent 
                        such alternatives would be applied to 
                        children without disabilities); and
                          (ii) to an appropriate interim 
                        alternative educational setting for the 
                        same amount of time that a child 
                        without a disability would be subject 
                        to discipline, but for not more than 45 
                        days if--
                                  (I) the child carries a 
                                weapon to school or to a school 
                                function under the jurisdiction 
                                of a State or a local 
                                educational agency; or
                                  (II) the child knowingly 
                                possesses or uses illegal drugs 
                                or sells or solicits the sale 
                                of a controlled substance while 
                                at school or a school function 
                                under the jurisdiction of a 
                                State or local educational 
                                agency.
                  (B) Either before or not later than 10 days 
                after taking a disciplinary action described in 
                subparagraph (A)--
                          (i) if the local educational agency 
                        did not conduct a functional behavioral 
                        assessment and implement a behavioral 
                        intervention plan for such child before 
                        the behavior that resulted in the 
                        suspension described in subparagraph 
                        (A), the agency shall convene an IEP 
                        meeting to develop an assessment plan 
                        to address that behavior; or
                          (ii) if the child already has a 
                        behavioral intervention plan, the IEP 
                        Team shall review the plan and modify 
                        it, as necessary, to address the 
                        behavior.
          (2) Authority of hearing officer.--A hearing officer 
        under this section may order a change in the placement 
        of a child with a disability to an appropriate interim 
        alternative educational setting for not more than 45 
        days if the hearing officer--
                  (A) determines that the public agency has 
                demonstrated by substantial evidence that 
                maintaining the current placement of such child 
                is substantially likely to result in injury to 
                the child or to others;
                  (B) considers the appropriateness of the 
                child's current placement;
                  (C) considers whether the public agency has 
                made reasonable efforts to minimize the risk of 
                harm in the child's current placement, 
                including the use of supplementary aids and 
                services; and
                  (D) determines that the interim alternative 
                educational setting meets the requirements of 
                paragraph (3)(B).
          (3) Determination of setting.--
                  (A) In general.--The alternative educational 
                setting described in paragraph (1)(A)(ii) shall 
                be determined by the IEP Team.
                  (B) Additional requirements.--Any interim 
                alternative educational setting in which a 
                child is placed under paragraph (1) or (2) 
                shall--
                          (i) be selected so as to enable the 
                        child to continue to participate in the 
                        general curriculum, although in another 
                        setting, and to continue to receive 
                        those services and modifications, 
                        including those described in the 
                        child's current IEP, that will enable 
                        the child to meet the goals set out in 
                        that IEP; and
                          (ii) include services and 
                        modifications designed to address the 
                        behavior described in paragraph (1) or 
                        paragraph (2) so that it does not 
                        recur.
          (4) Manifestation determination review.--
                  (A) In general.--If a disciplinary action is 
                contemplated as described in paragraph (1) or 
                paragraph (2) for a behavior of a child with a 
                disability described in either of those 
                paragraphs, or if a disciplinary action 
                involving a change of placement for more than 
                10 days is contemplated for a child with a 
                disability who has engaged in other behavior 
                that violated any rule or code of conduct of 
                the local educational agency that applies to 
                all children--
                          (i) not later than the date on which 
                        the decision to take that action is 
                        made, the parents shall be notified of 
                        that decision and of all procedural 
                        safeguards accorded under this section; 
                        and
                          (ii) immediately, if possible, but in 
                        no case later than 10 school days after 
                        the date on which the decision to take 
                        that action is made, a review shall be 
                        conducted of the relationship between 
                        the child's disability and the behavior 
                        subject to the disciplinary action.
                  (B) Individuals to carry out review.--A 
                review described in subparagraph (A) shall be 
                conducted by the IEP Team and other qualified 
                personnel.
                  (C) Conduct of review.--In carrying out a 
                review described in subparagraph (A), the IEP 
                Team may determine that the behavior of the 
                child was not a manifestation of such child's 
                disability only if the IEP Team--
                          (i) first considers, in terms of the 
                        behavior subject to disciplinary 
                        action, all relevant information, 
                        including--
                                  (I) evaluation and diagnostic 
                                results, including such results 
                                or other relevant information 
                                supplied by the parents of the 
                                child;
                                  (II) observations of the 
                                child; and
                                  (III) the child's IEP and 
                                placement; and
                          (ii) then determines that--
                                  (I) in relationship to the 
                                behavior subject to 
                                disciplinary action, the 
                                child's IEP and placement were 
                                appropriate and the special 
                                education services, 
                                supplementary aids and 
                                services, and behavior 
                                intervention strategies were 
                                provided consistent with the 
                                child's IEP and placement;
                                  (II) the child's disability 
                                did not impair the ability of 
                                the child to understand the 
                                impact and consequences of the 
                                behavior subject to 
                                disciplinary action; and
                                  (III) the child's disability 
                                did not impair the ability of 
                                the child to control the 
                                behavior subject to 
                                disciplinary action.
          (5) Determination that behavior was not manifestation 
        of disability.--
                  (A) In general.--If the result of the review 
                described in paragraph (4) is a determination, 
                consistent with paragraph (4)(C), that the 
                behavior of the child with a disability was not 
                a manifestation of the child's disability, the 
                relevant disciplinary procedures applicable to 
                children without disabilities may be applied to 
                the child in the same manner in which they 
                would be applied to children without 
                disabilities, except as provided in section 
                612(a)(1).
                  (B) Additional requirement.--If the public 
                agency initiates disciplinary procedures 
                applicable to all children, the agency shall 
                ensure that the special education and 
                disciplinary records of the child with a 
                disability are transmitted for consideration by 
                the person or persons making the final 
                determination regarding the disciplinary 
                action.
          (6) Parent appeal.--
                  (A) In general.--
                          (i) If the child's parent disagrees 
                        with a determination that the child's 
                        behavior was not a manifestation of the 
                        child's disability or with any decision 
                        regarding placement, the parent may 
                        request a hearing.
                          (ii) The State or local educational 
                        agency shall arrange for an expedited 
                        hearing in any case described in this 
                        subsection when requested by a parent.
                  (B) Review of decision.--
                          (i) In reviewing a decision with 
                        respect to the manifestation 
                        determination, the hearing officer 
                        shall determine whether the public 
                        agency has demonstrated that the 
                        child's behavior was not a 
                        manifestation of such child's 
                        disability consistent with the 
                        requirements of paragraph (4)(C).
                          (ii) In reviewing a decision under 
                        paragraph (1)(A)(ii) to place the child 
                        in an interim alternative educational 
                        setting, the hearing officer shall 
                        apply the standards set out in 
                        paragraph (2).
          (7) Placement during appeals.--
                  (A) In general.--When a parent requests a 
                hearing regarding a disciplinary action 
                described in paragraph (1)(A)(ii) or paragraph 
                (2) to challenge the interim alternative 
                educational setting or the manifestation 
                determination, the child shall remain in the 
                interim alternative educational setting pending 
                the decision of the hearing officer or until 
                the expiration of the time period provided for 
                in paragraph (1)(A)(ii) or paragraph (2), 
                whichever occurs first, unless the parent and 
                the State or local educational agency agree 
                otherwise.
                  (B) Current placement.--If a child is placed 
                in an interim alternative educational setting 
                pursuant to paragraph (1)(A)(ii) or paragraph 
                (2) and school personnel propose to change the 
                child's placement after expiration of the 
                interim alternative placement, during the 
                pendency of any proceeding to challenge the 
                proposed change in placement, the child shall 
                remain in the current placement (the child's 
                placement prior to the interim alternative 
                educational setting), except as provided in 
                subparagraph (C).
                  (C) Expedited hearing.--
                          (i) If school personnel maintain that 
                        it is dangerous for the child to be in 
                        the current placement (placement prior 
                        to removal to the interim alternative 
                        education setting) during the pendency 
                        of the due process proceedings, the 
                        local educational agency may request an 
                        expedited hearing.
                          (ii) In determining whether the child 
                        may be placed in the alternative 
                        educational setting or in another 
                        appropriate placement ordered by the 
                        hearing officer, the hearing officer 
                        shall apply the standards set out in 
                        paragraph (2).
          (8) Protections for children not yet eligible for 
        special education and related services.--
                  (A) In general.--A child who has not been 
                determined to be eligible for special education 
                and related services under this part and who 
                has engaged in behavior that violated any rule 
                or code of conduct of the local educational 
                agency, including any behavior described in 
                paragraph (1), may assert any of the 
                protections provided for in this part if the 
                local educational agency had knowledge (as 
                determined in accordance with this paragraph) 
                that the child was a child with a disability 
                before the behavior that precipitated the 
                disciplinary action occurred.
                  (B) Basis of knowledge.--A local educational 
                agency shall be deemed to have knowledge that a 
                child is a child with a disability if--
                          (i) the parent of the child has 
                        expressed concern in writing (unless 
                        the parent is illiterate or has a 
                        disability that prevents compliance 
                        with the requirements contained in this 
                        clause) to personnel of the appropriate 
                        educational agency that the child is in 
                        need of special education and related 
                        services;
                          (ii) the behavior or performance of 
                        the child demonstrates the need for 
                        such services;
                          (iii) the parent of the child has 
                        requested an evaluation of the child 
                        pursuant to section 614; or
                          (iv) the teacher of the child, or 
                        other personnel of the local 
                        educational agency, has expressed 
                        concern about the behavior or 
                        performance of the child to the 
                        director of special education of such 
                        agency or to other personnel of the 
                        agency.
                  (C) Conditions that apply if no basis of 
                knowledge.--
                          (i) In general.--If a local 
                        educational agency does not have 
                        knowledge that a child is a child with 
                        a disability (in accordance with 
                        subparagraph (B)) prior to taking 
                        disciplinary measures against the 
                        child, the child may be subjected to 
                        the same disciplinary measures as 
                        measures applied to children without 
                        disabilities who engaged in comparable 
                        behaviors consistent with clause (ii).
                          (ii) Limitations.--If a request is 
                        made for an evaluation of a child 
                        during the time period in which the 
                        child is subjected to disciplinary 
                        measures under paragraph (1) or (2), 
                        the evaluation shall be conducted in an 
                        expedited manner. If the child is 
                        determined to be a child with a 
                        disability, taking into consideration 
                        information from the evaluation 
                        conducted by the agency and information 
                        provided by the parents, the agency 
                        shall provide special education and 
                        related services in accordance with the 
                        provisions of this part, except that, 
                        pending the results of the evaluation, 
                        the child shall remain in the 
                        educational placement determined by 
                        school authorities.
          (9) Referral to and action by law enforcement and 
        judicial authorities.--
                  (A) Nothing in this part shall be construed 
                to prohibit an agency from reporting a crime 
                committed by a child with a disability to 
                appropriate authorities or to prevent State law 
                enforcement and judicial authorities from 
                exercising their responsibilities with regard 
                to the application of Federal and State law to 
                crimes committed by a child with a disability.
                  (B) An agency reporting a crime committed by 
                a child with a disability shall ensure that 
                copies of the special education and 
                disciplinary records of the child are 
                transmitted for consideration by the 
                appropriate authorities to whom it reports the 
                crime.
          (10) Definitions.--For purposes of this subsection, 
        the following definitions apply:
                  (A) Controlled substance.--The term 
                ``controlled substance'' means a drug or other 
                substance identifiedunder schedules I, II, III, 
IV, or V in section 202(c) of the Controlled Substances Act (21 U.S.C. 
812(c)).
                  (B) Illegal drug.--The term ``illegal 
                drug''--
                          (i) means a controlled substance; but
                          (ii) does not include such a 
                        substance that is legally possessed or 
                        used under the supervision of a 
                        licensed health-care professional or 
                        that is legally possessed or used under 
                        any other authority under that Act or 
                        under any other provision of Federal 
                        law.
                  (C) Substantial evidence.--The term 
                ``substantial evidence'' means beyond a 
                preponderance of the evidence.
                  (D) Weapon.--The term ``weapon'' has the 
                meaning given the term ``dangerous weapon'' 
                under paragraph (2) of the first subsection (g) 
                of section 930 of title 18, United States Code.
  (l) Rule of Construction.--Nothing in this part shall be 
construed to restrict or limit the rights, procedures, and 
remedies available under the Constitution, the Americans with 
Disabilities Act of 1990, title V of the Rehabilitation Act of 
1973, or other Federal laws protecting the rights of children 
with disabilities, except that before the filing of a civil 
action under such laws seeking relief that is also available 
under this part, the procedures under subsections (f) and (g) 
shall be exhausted to the same extent as would be required had 
the action been brought under this part.
  (m) Transfer of Parental Rights at Age of Majority.--
          (1) In general.--A State that receives amounts from a 
        grant under this part may provide that, when a child 
        with a disability reaches the age of majority under 
        State law (except for a child with a disability who has 
        been determined to be incompetent under State law)--
                  (A) the public agency shall provide any 
                notice required by this section to both the 
                individual and the parents;
                  (B) all other rights accorded to parents 
                under this part transfer to the child;
                  (C) the agency shall notify the individual 
                and the parents of the transfer of rights; and
                  (D) all rights accorded to parents under this 
                part transfer to children who are incarcerated 
                in an adult or juvenile Federal, State, or 
                local correctional institution.
          (2) Special rule.--If, under State law, a child with 
        a disability who has reached the age of majority under 
        State law, who has not been determined to be 
        incompetent, but who is determined not to have the 
        ability to provide informed consent with respect to the 
        educational program of the child, the State shall 
        establish procedures for appointing the parent of the 
        child, or if the parent is not available, another 
        appropriate individual, to represent the educational 
        interests of the child throughout the period of 
        eligibility of the child under this part.

SEC. 616. WITHHOLDING AND JUDICIAL REVIEW.

  (a) Withholding of Payments.--
          (1) In general.--Whenever the Secretary, after 
        reasonable notice and opportunity for hearing to the 
        State educational agency involved (and to any local 
        educational agency or State agency affected by any 
        failure described in subparagraph (B)), finds--
                  (A) that there has been a failure by the 
                State to comply substantially with any 
                provision of this part; or
                  (B) that there is a failure to comply with 
                any condition of a local educational agency's 
                or State agency's eligibility under this part, 
                including the terms of any agreement to achieve 
                compliance with this part within the timelines 
                specified in the agreement;
        the Secretary shall, after notifying the State 
        educational agency, withhold, in whole or in part, any 
        further payments to the State under this part, or refer 
        the matter for appropriate enforcement action, which 
        may include referral to the Department of Justice.
          (2) Nature of withholding.--If the Secretary 
        withholds further payments under paragraph (1), the 
        Secretary may determine that such withholding will be 
        limited to programs or projects, or portions thereof, 
        affected by the failure, or that the State educational 
        agency shall not make further payments under this part 
        to specified local educational agencies or State 
        agencies affected by the failure. Until the Secretary 
        is satisfied that there is no longer any failure to 
        comply with the provisions of this part, as specified 
        in subparagraph (A) or (B) of paragraph (1), payments 
        to the State under this part shall be withheld in whole 
        or in part, or payments by the State educational agency 
        under this part shall be limited to local educational 
        agencies and State agencies whose actions did not cause 
        or were not involved in the failure, as the case may 
        be. Any State educational agency, State agency, or 
        local educational agency that has received notice under 
        paragraph (1) shall, by means of a public notice, take 
        such measures as may be necessary to bring the pendency 
        of an action pursuant to this subsection to the 
        attention of the public within the jurisdiction of such 
        agency.
  (b) Judicial Review.--
          (1) In general.--If any State is dissatisfied with 
        the Secretary's final action with respect to the 
        eligibility of the State under section 612, such State 
        may, not later than 60 days after notice of such 
        action, file with the United States court of appeals 
        for the circuit in which such State is located a 
        petition for review of that action. A copy of the 
        petition shall be forthwith transmitted by the clerk of 
        the court to the Secretary. The Secretary thereupon 
        shall file in the court the record of the proceedings 
        upon which the Secretary's action was based, as 
        provided in section 2112 of title 28, United States 
        Code.
          (2) Jurisdiction; review by united states supreme 
        court.--Upon the filing of such petition, the court 
        shall have jurisdiction to affirm the action of the 
        Secretary or to set it aside, in whole or in part. The 
        judgment of the court shall be subject to review by the 
        Supreme Court of the United States upon certiorari or 
        certification as provided in section 1254 of title 28, 
        United States Code.
          (3) Standard of review.--The findings of fact by the 
        Secretary, if supported by substantial evidence, shall 
        be conclusive, but the court, for good cause shown, may 
        remand the case to the Secretary to take further 
        evidence, and the Secretary maythereupon make new or 
modified findings of fact and may modify the Secretary's previous 
action, and shall file in the court the record of the further 
proceedings. Such new or modified findings of fact shall likewise be 
conclusive if supported by substantial evidence.
  (c) Divided State Agency Responsibility.--For purposes of 
this section, where responsibility for ensuring that the 
requirements of this part are met with respect to children with 
disabilities who are convicted as adults under State law and 
incarcerated in adult prisons is assigned to a public agency 
other than the State educational agency pursuant to section 
612(a)(11)(C), the Secretary, in instances where the Secretary 
finds that the failure to comply substantially with the 
provisions of this part are related to a failure by the public 
agency, shall take appropriate corrective action to ensure 
compliance with this part, except--
          (1) any reduction or withholding of payments to the 
        State is proportionate to the total funds allotted 
        under section 611 to the State as the number of 
        eligible children with disabilities in adult prisons 
        under the supervision of the other public agency is 
        proportionate to the number of eligible individuals 
        with disabilities in the State under the supervision of 
        the State educational agency; and
          (2) any withholding of funds under paragraph (1) 
        shall be limited to the specific agency responsible for 
        the failure to comply with this part.

SEC. 617. ADMINISTRATION.

  (a) Responsibilities of Secretary.--In carrying out this 
part, the Secretary shall--
          (1) cooperate with, and (directly or by grant or 
        contract) furnish technical assistance necessary to, 
        the State in matters relating to--
                  (A) the education of children with 
                disabilities; and
                  (B) carrying out this part; and
          (2) provide short-term training programs and 
        institutes.
  (b) Rules and Regulations.--In carrying out the provisions of 
this part, the Secretary shall issue regulations under this Act 
only to the extent that such regulations are necessary to 
ensure that there is compliance with the specific requirements 
of this Act.
  (c) Confidentiality.--The Secretary shall take appropriate 
action, in accordance with the provisions of section 444 of the 
General Education Provisions Act (20 U.S.C. 1232g), to assure 
the protection of the confidentiality of any personally 
identifiable data, information, and records collected or 
maintained by the Secretary and by State and local educational 
agencies pursuant to the provisions of this part.
  (d) Personnel.--The Secretary is authorized to hire qualified 
personnel necessary to carry out the Secretary's duties under 
subsection (a) and under sections 618, 661 and 673 (or their 
predecessor authorities through October 1, 1997) without regard 
to the provisions of title 5, United States Code, relating to 
appointments in the competitive service and without regard to 
chapter 51 and subchapter III of chapter 53 of such title 
relating to classification and general schedule pay rates, 
except that no more than twenty such personnel shall be 
employed at any time.

SEC. 618. PROGRAM INFORMATION.

  (a) In General.--Each State that receives assistance under 
this part, and the Secretary of the Interior, shall provide 
data each year to the Secretary--
          (1)(A) on--
                  (i) the number of children with disabilities, 
                by race, ethnicity, and disability category, 
                who are receiving a free appropriate public 
                education;
                  (ii) the number of children with 
                disabilities, by race and ethnicity, who are 
                receiving early intervention services;
                  (iii) the number of children with 
                disabilities, by race, ethnicity, and 
                disability category, who are participating in 
                regular education;
                  (iv) the number of children with 
                disabilities, by race, ethnicity, and 
                disability category, who are in separate 
                classes, separate schools or facilities, or 
                public or private residential facilities;
                  (v) the number of children with disabilities, 
                by race, ethnicity, and disability category, 
                who, for each year of age from age 14 to 21, 
                stopped receiving special education and related 
                services because of program completion or other 
                reasons and the reasons why those children 
                stopped receiving special education and related 
                services;
                  (vi) the number of children with 
                disabilities, by race and ethnicity, who, from 
                birth through age two, stopped receiving early 
                intervention services because of program 
                completion or for other reasons; and
                  (vii)(I) the number of children with 
                disabilities, by race, ethnicity, and 
                disability category, who under subparagraphs 
                (A)(ii) and (B) of section 615(k)(1), are 
                removed to an interim alternative educational 
                setting;
                  (II) the acts or items precipitating those 
                removals; and
                  (III) the number of children with 
                disabilities who are subject to long-term 
                suspensions or expulsions; and
          (B) on the number of infants and toddlers, by race 
        and ethnicity, who are at risk of having substantial 
        developmental delays (as described in section 632), and 
        who are receiving early intervention services under 
        part C; and
          (2) on any other information that may be required by 
        the Secretary.
  (b) Sampling.--The Secretary may permit States and the 
Secretary of the Interior to obtain the data described in 
subsection (a) through sampling.
  (c) Disproportionality.--
          (1) In general.--Each State that receives assistance 
        under this part, and the Secretary of the Interior, 
        shall provide for the collection and examination of 
        data to determine if significant disproportionality 
        based on race is occurring in the State with respect 
        to--
                  (A) the identification of children as 
                children with disabilities, including the 
                identification of children as childrenwith 
disabilities in accordance with a particular impairment described in 
section 602(3); and
                  (B) the placement in particular educational 
                settings of such children.
          (2) Review and revision of policies, practices, and 
        procedures.--In the case of a determination of 
        significant disproportionality with respect to the 
        identification of children as children with 
        disabilities, or the placement in particular 
        educational settings of such children, in accordance 
        with paragraph (1), the State or the Secretary of the 
        Interior, as the case may be, shall provide for the 
        review and, if appropriate, revision of the policies, 
        procedures, and practices used in such identification 
        or placement to ensure that such policies, procedures, 
        and practices comply with the requirements of this Act.

SEC. 619. PRESCHOOL GRANTS.

  (a) In General.--The Secretary shall provide grants under 
this section to assist States to provide special education and 
related services, in accordance with this part--
          (1) to children with disabilities aged 3 to 5, 
        inclusive; and
          (2) at the State's discretion, to 2-year-old children 
        with disabilities who will turn 3 during the school 
        year.
  (b) Eligibility.--A State shall be eligible for a grant under 
this section if such State--
          (1) is eligible under section 612 to receive a grant 
        under this part; and
          (2) makes a free appropriate public education 
        available to all children with disabilities, aged 3 
        through 5, residing in the State.
  (c) Allocations to States.--
          (1) In general.--After reserving funds for studies 
        and evaluations under section 674(e), the Secretary 
        shall allocate the remaining amount among the States in 
        accordance with paragraph (2) or (3), as the case may 
        be.
          (2) Increase in funds.--If the amount available for 
        allocations to States under paragraph (1) is equal to 
        or greater than the amount allocated to the States 
        under this section for the preceding fiscal year, those 
        allocations shall be calculated as follows:
                  (A)(i) Except as provided in subparagraph 
                (B), the Secretary shall--
                          (I) allocate to each State the amount 
                        it received for fiscal year 1997;
                          (II) allocate 85 percent of any 
                        remaining funds to States on the basis 
                        of their relative populations of 
                        children aged 3 through 5; and
                          (III) allocate 15 percent of those 
                        remaining funds to States on the basis 
                        of their relative populations of all 
                        children aged 3 through 5 who are 
                        living in poverty.
                  (ii) For the purpose of making grants under 
                this paragraph, the Secretary shall use the 
                most recent population data, including data on 
                children living in poverty, that are available 
                and satisfactory to the Secretary.
                  (B) Notwithstanding subparagraph (A), 
                allocations under this paragraph shall be 
                subject to the following:
                          (i) No State's allocation shall be 
                        less than its allocation for the 
                        preceding fiscal year.
                          (ii) No State's allocation shall be 
                        less than the greatest of--
                                  (I) the sum of--
                                          (aa) the amount it 
                                        received for fiscal 
                                        year 1997; and
                                          (bb) one third of one 
                                        percent of the amount 
                                        by which the amount 
                                        appropriated under 
                                        subsection (j) exceeds 
                                        the amount appropriated 
                                        under this section for 
                                        fiscal year 1997;
                                  (II) the sum of--
                                          (aa) the amount it 
                                        received for the 
                                        preceding fiscal year; 
                                        and
                                          (bb) that amount 
                                        multiplied by the 
                                        percentage by which the 
                                        increase in the funds 
                                        appropriated from the 
                                        preceding fiscal year 
                                        exceeds 1.5 percent; or
                                  (III) the sum of--
                                          (aa) the amount it 
                                        received for the 
                                        preceding fiscal year; 
                                        and
                                          (bb) that amount 
                                        multiplied by 90 
                                        percent of the 
                                        percentage increase in 
                                        the amount appropriated 
                                        from the preceding 
                                        fiscal year.
                          (iii) Notwithstanding clause (ii), no 
                        State's allocation under this paragraph 
                        shall exceed the sum of--
                                  (I) the amount it received 
                                for the preceding fiscal year; 
                                and
                                  (II) that amount multiplied 
                                by the sum of 1.5 percent and 
                                the percentage increase in the 
                                amount appropriated.
                  (C) If the amount available for allocations 
                under this paragraph is insufficient to pay 
                those allocations in full, those allocations 
                shall be ratably reduced, subject to 
                subparagraph (B)(i).
          (3) Decrease in funds.--If the amount available for 
        allocations to States under paragraph (1) is less than 
        the amount allocated to the States under this section 
        for the preceding fiscal year, those allocations shall 
        be calculated as follows:
                  (A) If the amount available for allocations 
                is greater than the amount allocated to the 
                States for fiscal year 1997, each State shall 
                be allocated the sum of--
                          (i) the amount it received for fiscal 
                        year 1997; and
                          (ii) an amount that bears the same 
                        relation to any remaining funds as the 
                        increase the State received for the 
                        preceding fiscal year over fiscal year 
                        1997 bears to the total of all such 
                        increases for all States.
                  (B) If the amount available for allocations 
                is equal to or less than the amount allocated 
                to the States for fiscal year 1997, each State 
                shall be allocated the amount it received for 
                that year, ratably reduced, if necessary.
          (4) Outlying areas.--The Secretary shall increase the 
        fiscal year 1998 allotment of each outlying area under 
        section 611by at least the amount that that area 
received under this section for fiscal year 1997.
  (d) Reservation for State Activities.--
          (1) In general.--Each State may retain not more than 
        the amount described in paragraph (2) for 
        administration and other State-level activities in 
        accordance with subsections (e) and (f).
          (2) Amount described.--For each fiscal year, the 
        Secretary shall determine and report to the State 
        educational agency an amount that is 25 percent of the 
        amount the State received under this section for fiscal 
        year 1997, cumulatively adjusted by the Secretary for 
        each succeeding fiscal year by the lesser of--
                  (A) the percentage increase, if any, from the 
                preceding fiscal year in the State's allocation 
                under this section; or
                  (B) the percentage increase, if any, from the 
                preceding fiscal year in the Consumer Price 
                Index For All Urban Consumers published by the 
                Bureau of Labor Statistics of the Department of 
                Labor.
  (e) State Administration.--
          (1) In general.--For the purpose of administering 
        this section (including the coordination of activities 
        under this part with, and providing technical 
        assistance to, other programs that provide services to 
        children with disabilities) a State may use not more 
        than 20 percent of the maximum amount it may retain 
        under subsection (d) for any fiscal year.
          (2) Administration of part c.--Funds described in 
        paragraph (1) may also be used for the administration 
        of part C of this Act, if the State educational agency 
        is the lead agency for the State under that part.
  (f) Other State-Level Activities.--Each State shall use any 
funds it retains under subsection (d) and does not use for 
administration under subsection (e)--
          (1) for support services (including establishing and 
        implementing the mediation process required by section 
        615(e)), which may benefit children with disabilities 
        younger than 3 or older than 5 as long as those 
        services also benefit children with disabilities aged 3 
        through 5;
          (2) for direct services for children eligible for 
        services under this section;
          (3) to develop a State improvement plan under subpart 
        1 of part D;
          (4) for activities at the State and local levels to 
        meet the performance goals established by the State 
        under section 612(a)(16) and to support implementation 
        of the State improvement plan under subpart 1 of part D 
        if the State receives funds under that subpart; or
          (5) to supplement other funds used to develop and 
        implement a Statewide coordinated services system 
        designed to improve results for children and families, 
        including children with disabilities and their 
        families, but not to exceed one percent of the amount 
        received by the State under this section for a fiscal 
        year.
  (g) Subgrants to Local Educational Agencies.--
          (1) Subgrants required.--Each State that receives a 
        grant under this section for any fiscal year shall 
        distribute any of the grant funds that it does not 
        reserve under subsection (d) to local educational 
        agencies in the State that have established their 
        eligibility under section 613, as follows:
                  (A) Base payments.--The State shall first 
                award each agency described in paragraph (1) 
                the amount that agency would have received 
                under this section for fiscal year 1997 if the 
                State had distributed 75 percent of its grant 
                for that year under section 619(c)(3), as then 
                in effect.
                  (B) Allocation of remaining funds.--After 
                making allocations under subparagraph (A), the 
                State shall--
                          (i) allocate 85 percent of any 
                        remaining funds to those agencies on 
                        the basis of the relative numbers of 
                        children enrolled in public and private 
                        elementary and secondary schools within 
                        the agency's jurisdiction; and
                          (ii) allocate 15 percent of those 
                        remaining funds to those agencies in 
                        accordance with their relative numbers 
                        of children living in poverty, as 
                        determined by the State educational 
                        agency.
          (2) Reallocation of funds.--If a State educational 
        agency determines that a local educational agency is 
        adequately providing a free appropriate public 
        education to all children with disabilities aged three 
        through five residing in the area served by that agency 
        with State and local funds, the State educational 
        agency may reallocate any portion of the funds under 
        this section that are not needed by that local agency 
        to provide a free appropriate public education to other 
        local educational agencies in the State that are not 
        adequately providing special education and related 
        services to all children with disabilities aged three 
        through five residing in the areas they serve.
  (h) Part C Inapplicable.--Part C of this Act does not apply 
to any child with a disability receiving a free appropriate 
public education, in accordance with this part, with funds 
received under this section.
  (i) Definition.--For the purpose of this section, the term 
``State'' means each of the 50 States, the District of 
Columbia, and the Commonwealth of Puerto Rico.
  (j) Authorization of Appropriations.--For the purpose of 
carrying out this section, there are authorized to be 
appropriated to the Secretary $500,000,000 for fiscal year 1998 
and such sums as may be necessary for each subsequent fiscal 
year.

             PART C--INFANTS AND TODDLERS WITH DISABILITIES

SEC. 631. FINDINGS AND POLICY.

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

SEC. 632. DEFINITIONS.

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

SEC. 633. GENERAL AUTHORITY.

  The Secretary shall, in accordance with this part, make 
grants to States (from their 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 State policy that is in effect and that ensures 
        that appropriate early intervention services are 
        available to all infants and toddlers with disabilities 
        and their families, including Indian infants and 
        toddlers and their families residing on a reservation 
        geographically located in the State.
          (3) A timely, comprehensive, multidisciplinary 
        evaluation of the functioning of each infant or toddler 
        with a disability in the State, and a family-directed 
        identification of the needs of each family of such an 
        infant or toddler, to appropriately assist in the 
        development of the infant or toddler.
          (4) For each infant or toddler with a disability in 
        the State, an individualized family service plan in 
        accordance with section 636, including service 
        coordination services in accordance with such service 
        plan.
          (5) A comprehensive child find system, consistent 
        with part B, including a system for making referrals to 
        service providers that includes timelines and provides 
        for participation by primary referral sources.
          (6) A public awareness program focusing on early 
        identification of infants and toddlers with 
        disabilities, including the preparation and 
        dissemination by the lead agency designated or 
        established under paragraph (10) to all primary 
        referral sources, especially hospitals and physicians, 
        of information forparents on the availability of early 
intervention services, and procedures for determining the extent to 
which such sources disseminate such information to parents of infants 
and toddlers.
          (7) A central directory which includes information on 
        early intervention services, resources, and experts 
        available in the State and research and demonstration 
        projects being conducted in the State.
          (8) A comprehensive system of personnel development, 
        including the training of paraprofessionals and the 
        training of primary referral sources respecting the 
        basic components of early intervention services 
        available in the State, that is consistent with the 
        comprehensive system of personnel development described 
        in section 612(a)(14) and may include--
                  (A) implementing innovative strategies and 
                activities for the recruitment and retention of 
                early education service providers;
                  (B) promoting the preparation of early 
                intervention providers who are fully and 
                appropriately qualified to provide early 
                intervention services under this part;
                  (C) training personnel to work in rural and 
                inner-city areas; and
                  (D) training personnel to coordinate 
                transition services for infants and toddlers 
                served under this part from an early 
                intervention program under this part to 
                preschool or other appropriate services.
          (9) Subject to subsection (b), policies and 
        procedures relating to the establishment and 
        maintenance of standards to ensure that personnel 
        necessary to carry out this part are appropriately and 
        adequately prepared and trained, including--
                  (A) the establishment and maintenance of 
                standards which are consistent with any State-
                approved or recognized certification, 
                licensing, registration, or other comparable 
                requirements which apply to the area in which 
                such personnel are providing early intervention 
                services; and
                  (B) to the extent such standards are not 
                based on the highest requirements in the State 
                applicable to a specific profession or 
                discipline, the steps the State is taking to 
                require the retraining or hiring of personnel 
                that meet appropriate professional requirements 
                in the State;
        except that nothing in this part, including this 
        paragraph, prohibits the use of paraprofessionals and 
        assistants who are appropriately trained and 
        supervised, in accordance with State law, regulations, 
        or written policy, to assist in the provision of early 
        intervention services to infants and toddlers with 
        disabilities under this part.
          (10) A single line of responsibility in a lead agency 
        designated or established by the Governor for carrying 
        out--
                  (A) the general administration and 
                supervision of programs and activities 
                receiving assistance under section 633, and the 
                monitoring of programs and activities used by 
                the State to carry out this part, whether or 
                not such programs or activities are receiving 
                assistance made available under section 633, to 
                ensure that the State complies with this part;
                  (B) the identification and coordination of 
                all available resources within the State from 
                Federal, State, local, and private sources;
                  (C) the assignment of financial 
                responsibility in accordance with section 
                637(a)(2) to the appropriate agencies;
                  (D) the development of procedures to ensure 
                that services are provided to infants and 
                toddlers and their families under this part in 
                a timely manner pending the resolution of any 
                disputes among public agencies or service 
                providers;
                  (E) the resolution of intra- and interagency 
                disputes; and
                  (F) the entry into formal interagency 
                agreements that define the financial 
                responsibility of each agency for paying for 
                early intervention services (consistent with 
                State law) and procedures for resolving 
                disputes and that include all additional 
                components necessary to ensure meaningful 
                cooperation and coordination.
          (11) A policy pertaining to the contracting or making 
        of other arrangements with service providers to provide 
        early intervention services in the State, consistent 
        with the provisions of this part, including the 
        contents of the application used and the conditions of 
        the contract or other arrangements.
          (12) A procedure for securing timely reimbursements 
        of funds used under this part in accordance with 
        section 640(a).
          (13) Procedural safeguards with respect to programs 
        under this part, as required by section 639.
          (14) A system for compiling data requested by the 
        Secretary under section 618 that relates to this part.
          (15) A State interagency coordinating council that 
        meets the requirements of section 641.
          (16) Policies and procedures to ensure that, 
        consistent with section 636(d)(5)--
                  (A) to the maximum extent appropriate, early 
                intervention services are provided in natural 
                environments; and
                  (B) the provision of early intervention 
                services for any infant or toddler occurs in a 
                setting other than a natural environment only 
                when early intervention cannot be achieved 
                satisfactorily for the infant or toddler in a 
                natural environment.
  (b) Policy.--In implementing subsection (a)(9), a State may 
adopt a policy that includes making ongoing good-faith efforts 
to recruit and hire appropriately and adequately trained 
personnel to provide early intervention services to infants and 
toddlers with disabilities, including, in a geographic area of 
the State where there is a shortage of such personnel, the most 
qualified individuals available who are making satisfactory 
progress toward completing applicable course work necessary to 
meet the standards described in subsection (a)(9) within 3 
years.

SEC. 636. INDIVIDUALIZED FAMILY SERVICE PLAN.

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

SEC. 637. STATE APPLICATION AND ASSURANCES.

  (a) Application.--A State desiring to receive a grant under 
section 633 shall submit an application to the Secretary at 
such time and in such manner as the Secretary may reasonably 
require. The application shall contain--
          (1) a designation of the lead agency in the State 
        that will be responsible for the administration of 
        funds provided under section 633;
          (2) a designation of an individual or entity 
        responsible for assigning financial responsibility 
        among appropriate agencies;
          (3) information demonstrating eligibility of the 
        State under section 634, including--
                  (A) information demonstrating to the 
                Secretary's satisfaction that the State has in 
                effect the statewide system required by section 
                633; and
                  (B) a description of services to be provided 
                to infants and toddlers with disabilities and 
                their families through the system;
          (4) if the State provides services to at-risk infants 
        and toddlers through the system, a description of such 
        services;
          (5) a description of the uses for which funds will be 
        expended in accordance with this part;
          (6) a description of the procedure used to ensure 
        that resources are made available under this part for 
        all geographic areas within the State;
          (7) a description of State policies and procedures 
        that ensure that, prior to the adoption by the State of 
        any other policy or procedure necessary to meet the 
        requirements of this part, there are public hearings, 
        adequate notice of the hearings, and an opportunity for 
        comment available to the general public, including 
        individuals with disabilities and parents of infants 
        and toddlers with disabilities;
          (8) a description of the policies and procedures to 
        be used--
                  (A) to ensure a smooth transition for 
                toddlers receiving early intervention services 
                under this part to preschool or other 
                appropriate services, including a description 
                of how--
                          (i) the families of such toddlers 
                        will be included in the transition 
                        plans required by subparagraph (C); and
                          (ii) the lead agency designated or 
                        established under section 636(a)(10) 
                        will--
                                  (I) notify the local 
                                educational agency for the area 
                                in which such a child resides 
                                that the child will shortly 
                                reach the age of eligibility 
                                for preschool services under 
                                part B, as determined in 
                                accordance with State law;
                                  (II) in the case of a child 
                                who may be eligible for such 
                                preschool services, with the 
                                approval of the family of the 
                                child, convene a 
conferenceamong the lead agency, the family, and the local educational 
agency at least 90 days (and at the discretion of all such parties, up 
to 6 months) before the child is eligible for the preschool services, 
to discuss any such services that the child may receive; and
                                  (III) in the case of a child 
                                who may not be eligible for 
                                such preschool services, with 
                                the approval of the family, 
                                make reasonable efforts to 
                                convene a conference among the 
                                lead agency, the family, and 
                                providers of other appropriate 
                                services for children who are 
                                not eligible for preschool 
                                services under part B, to 
                                discuss the appropriate 
                                services that the child may 
                                receive;
                  (B) to review the child's program options for 
                the period from the child's third birthday 
                through the remainder of the school year; and
                  (C) to establish a transition plan; and
          (9) such other information and assurances as the 
        Secretary may reasonably require.
  (b) Assurances.--The application described in subsection 
(a)--
          (1) shall provide satisfactory assurance that Federal 
        funds made available under section 643 to the State 
        will be expended in accordance with this part;
          (2) shall contain an assurance that the State will 
        comply with the requirements of section 640;
          (3) shall provide satisfactory assurance that the 
        control of funds provided under section 643, and title 
        to property derived from those funds, will be in a 
        public agency for the uses and purposes provided in 
        this part and that a public agency will administer such 
        funds and property;
          (4) shall provide for--
                  (A) making such reports in such form and 
                containing such information as the Secretary 
                may require to carry out the Secretary's 
                functions under this part; and
                  (B) keeping such records and affording such 
                access to them as the Secretary may find 
                necessary to ensure the correctness and 
                verification of those reports and proper 
                disbursement of Federal funds under this part;
          (5) provide satisfactory assurance that Federal funds 
        made available under section 643 to the State--
                  (A) will not be commingled with State funds; 
                and
                  (B) will be used so as to supplement the 
                level of State and local funds expended for 
                infants and toddlers with disabilities and 
                their families and in no case to supplant those 
                State and local funds;
          (6) shall provide satisfactory assurance that such 
        fiscal control and fund accounting procedures will be 
        adopted as may be necessary to ensure proper 
        disbursement of, and accounting for, Federal funds paid 
        under section 643 to the State;
          (7) shall provide satisfactory assurance that 
        policies and procedures have been adopted to ensure 
        meaningful involvement of underserved groups, including 
        minority, low-income, and rural families, in the 
        planning and implementation of all the requirements of 
        this part; and
          (8) shall contain such other information and 
        assurances as the Secretary may reasonably require by 
        regulation.
  (c) Standard for Disapproval of Application.--The Secretary 
may not disapprove such an application unless the Secretary 
determines, after notice and opportunity for a hearing, that 
the application fails to comply with the requirements of this 
section.
  (d) Subsequent State Application.--If a State has on file 
with the Secretary a policy, procedure, or assurance that 
demonstrates that the State meets a requirement of this 
section, including any policy or procedure filed under part H 
(as in effect before July 1, 1998), the Secretary shall 
consider the State to have met the requirement for purposes of 
receiving a grant under this part.
  (e) Modification of Application.--An application submitted by 
a State in accordance with this section shall remain in effect 
until the State submits to the Secretary such modifications as 
the State determines necessary. This section shall apply to a 
modification of an application to the same extent and in the 
same manner as this section applies to the original 
application.
  (f) Modifications Required by the Secretary.--The Secretary 
may require a State to modify its application under this 
section, but only to the extent necessary to ensure the State's 
compliance with this part, if--
          (1) an amendment is made to this Act, or a Federal 
        regulation issued under this Act;
          (2) a new interpretation of this Act is made by a 
        Federal court or the State's highest court; or
          (3) an official finding of noncompliance with Federal 
        law or regulations is made with respect to the State.

SEC. 638. USES OF FUNDS.

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

SEC. 639. PROCEDURAL SAFEGUARDS.

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

SEC. 640. PAYOR OF LAST RESORT.

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

SEC. 641. STATE INTERAGENCY COORDINATING COUNCIL.

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

SEC. 642. FEDERAL ADMINISTRATION.

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

SEC. 643. ALLOCATION OF FUNDS.

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

SEC. 644. FEDERAL INTERAGENCY COORDINATING COUNCIL.

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

SEC. 645. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

SEC. 651. FINDINGS AND PURPOSE.

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

SEC. 652. ELIGIBILITY AND COLLABORATIVE PROCESS.

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

SEC. 653. APPLICATIONS.

  (a) In General.--
          (1) Submission.--A State educational agency that 
        desires to receive a grant under this subpart shall 
        submit to the Secretary an application at such time, in 
        such manner, and including such information as the 
        Secretary may require.
          (2) State improvement plan.--The application shall 
        include a State improvement plan that--
                  (A) is integrated, to the maximum extent 
                possible, with State plans under the Elementary 
                and Secondary Education Act of 1965 and the 
                Rehabilitation Act of 1973, as appropriate; and
                  (B) meets the requirements of this section.
  (b) Determining Child and Program Needs.--
          (1) In general.--Each State improvement plan shall 
        identify those critical aspects of early intervention, 
        general education, and special education programs 
        (including professional development, based on an 
        assessment of State and local needs) that must be 
        improved to enable children with disabilities to meet 
        the goals established by the State under section 
        612(a)(16).
          (2) Required analyses.--To meet the requirement of 
        paragraph (1), the State improvement plan shall include 
        at least--
                  (A) an analysis of all information, 
                reasonably available to the State educational 
                agency, on the performance of children with 
                disabilities in the State, including--
                          (i) their performance on State 
                        assessments and other performance 
                        indicators established for all 
                        children, including drop-out rates and 
                        graduation rates;
                          (ii) their participation in 
                        postsecondary education and employment; 
                        and
                          (iii) how their performance on the 
                        assessments and indicators described in 
                        clause (i) compares to that of non-
                        disabled children;
                  (B) an analysis of State and local needs for 
                professional development for personnel to serve 
                children with disabilities that includes, at a 
                minimum--
                          (i) the number of personnel providing 
                        special education and related services; 
                        and
                          (ii) relevant information on current 
                        and anticipated personnel vacancies and 
                        shortages (including the number of 
                        individuals described in clause (i) 
                        with temporary certification), and on 
                        the extent of certification or 
                        retraining necessary to eliminate such 
                        shortages, that is based, to the 
                        maximum extent possible, on existing 
                        assessments of personnel needs;
                  (C) an analysis of the major findings of the 
                Secretary's most recent reviews of State 
                compliance, as they relate to improving results 
                for children with disabilities; and
                  (D) an analysis of other information, 
                reasonably available to the State, on the 
                effectiveness of the State's systems of early 
                intervention, special education, and general 
                education in meeting the needs of children with 
                disabilities.
  (c) Improvement Strategies.--Each State improvement plan 
shall--
          (1) describe a partnership agreement that--
                  (A) specifies--
                          (i) the nature and extent of the 
                        partnership among the State educational 
                        agency, local educational agencies, and 
                        other State agencies involved in, or 
                        concerned with, the education of 
                        children with disabilities, and the 
                        respective roles of each member of the 
                        partnership; and
                          (ii) how such agencies will work in 
                        partnership with other persons and 
                        organizations involved in, and 
                        concerned with, the education of 
                        children with disabilities, including 
                        the respective roles of each of these 
                        persons and organizations; and
                  (B) is in effect for the period of the grant;
          (2) describe how grant funds will be used in 
        undertaking the systemic-change activities, and the 
        amount and nature of funds from any other sources, 
        including part B funds retained for use at the State 
        level under sections 611(f) and 619(d), that will be 
        committed to the systemic-change activities;
          (3) describe the strategies the State will use to 
        address the needs identified under subsection (b), 
        including--
                  (A) how the State will change State policies 
                and procedures to address systemic barriers to 
                improving results for children with 
                disabilities;
                  (B) how the State will hold local educational 
                agencies and schools accountable for 
                educational progress of children with 
                disabilities;
                  (C) how the State will provide technical 
                assistance to local educational agencies and 
                schools to improve results for children with 
                disabilities;
                  (D) how the State will address the identified 
                needs for in-service and pre-service 
                preparation to ensure that all personnel who 
                work with children with disabilities (including 
                both professional and paraprofessional 
                personnel who provide special education, 
                general education, related services, or early 
                intervention services) have the skills and 
                knowledge necessary to meet the needs of 
                children with disabilities, including a 
                description of how--
                          (i) the State will prepare general 
                        and special education personnel with 
                        the content knowledge and collaborative 
                        skills needed to meet the needs of 
                        children with disabilities, including 
                        how the State will work with other 
                        States on common certification 
                        criteria;
                          (ii) the State will prepare 
                        professionals and paraprofessionals in 
                        the area of early intervention with the 
                        content knowledge and collaborative 
                        skills needed to meet the needs of 
                        infants and toddlers with disabilities;
                          (iii) the State will work with 
                        institutions of higher education and 
                        other entities that (on both a pre-
                        service and an in-service basis) 
                        prepare personnel who work with 
                        children with disabilities to ensure 
                        that those institutions and entities 
                        develop the capacity to support quality 
                        professional development programs that 
                        meet State and local needs;
                          (iv) the State will work to develop 
                        collaborative agreements with other 
                        States for the joint support and 
                        development of programs to prepare 
                        personnel for which there is not 
                        sufficient demand within a single State 
                        to justify support or development of 
                        such a program of preparation;
                          (v) the State will work in 
                        collaboration with other States, 
                        particularly neighboring States, to 
                        address thelack of uniformity and 
reciprocity in the credentialing of teachers and other personnel;
                          (vi) the State will enhance the 
                        ability of teachers and others to use 
                        strategies, such as behavioral 
                        interventions, to address the conduct 
                        of children with disabilities that 
                        impedes the learning of children with 
                        disabilities and others;
                          (vii) the State will acquire and 
                        disseminate, to teachers, 
                        administrators, school board members, 
                        and related services personnel, 
                        significant knowledge derived from 
                        educational research and other sources, 
                        and how the State will, when 
                        appropriate, adopt promising practices, 
                        materials, and technology;
                          (viii) the State will recruit, 
                        prepare, and retain qualified 
                        personnel, including personnel with 
                        disabilities and personnel from groups 
                        that are underrepresented in the fields 
                        of regular education, special 
                        education, and related services;
                          (ix) the plan is integrated, to the 
                        maximum extent possible, with other 
                        professional development plans and 
                        activities, including plans and 
                        activities developed and carried out 
                        under other Federal and State laws that 
                        address personnel recruitment and 
                        training; and
                          (x) the State will provide for the 
                        joint training of parents and special 
                        education, related services, and 
                        general education personnel;
                  (E) strategies that will address systemic 
                problems identified in Federal compliance 
                reviews, including shortages of qualified 
                personnel;
                  (F) how the State will disseminate results of 
                the local capacity-building and improvement 
                projects funded under section 611(f)(4);
                  (G) how the State will address improving 
                results for children with disabilities in the 
                geographic areas of greatest need; and
                  (H) how the State will assess, on a regular 
                basis, the extent to which the strategies 
                implemented under this subpart have been 
                effective; and
          (4) describe how the improvement strategies described 
        in paragraph (3) will be coordinated with public and 
        private sector resources.
  (d) Competitive Awards.--
          (1) In general.--The Secretary shall make grants 
        under this subpart on a competitive basis.
          (2) Priority.--The Secretary may give priority to 
        applications on the basis of need, as indicated by such 
        information as the findings of Federal compliance 
        reviews.
  (e) Peer Review.--
          (1) In general.--The Secretary shall use a panel of 
        experts who are competent, by virtue of their training, 
        expertise, or experience, to evaluate applications 
        under this subpart.
          (2) Composition of panel.--A majority of a panel 
        described in paragraph (1) shall be composed of 
        individuals who are not employees of the Federal 
        Government.
          (3) Payment of fees and expenses of certain 
        members.--The Secretary may use available funds 
        appropriated to carry out this subpart to pay the 
        expenses and fees of panel members who are not 
        employees of the Federal Government.
  (f) Reporting Procedures.--Each State educational agency that 
receives a grant under this subpart shall submit performance 
reports to the Secretary pursuant to a schedule to be 
determined by the Secretary, but not more frequently than 
annually. The reports shall describe the progress of the State 
in meeting the performance goals established under section 
612(a)(16), analyze the effectiveness of the State's strategies 
in meeting those goals, and identify any changes in the 
strategies needed to improve its performance.

SEC. 654. USE OF FUNDS.

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

SEC. 655. MINIMUM STATE GRANT AMOUNTS.

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

SEC. 656. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
subpart such sums as may be necessary for each of the fiscal 
years 1998 through 2002.

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

SEC. 661. ADMINISTRATIVE PROVISIONS.

  (a) Comprehensive Plan.--
          (1) In general.--The Secretary shall develop and 
        implement a comprehensive plan for activities carried 
        out under this subpart in order to enhance the 
        provision of educational, related, transitional, and 
        early intervention services to children with 
        disabilities under parts B and C. The plan shall 
        include mechanisms to address educational, related 
        services, transitional, and early intervention needs 
        identified by State educational agencies in 
        applications submitted for State program improvement 
        grants under subpart 1.
          (2) Participants in plan development.--In developing 
        the plan described in paragraph (1), the Secretary 
        shall consult with--
                  (A) individuals with disabilities;
                  (B) parents of children with disabilities;
                  (C) appropriate professionals; and
                  (D) representatives of State and local 
                educational agencies, private schools, 
                institutions of higher education, other Federal 
                agencies, the National Council on Disability, 
                and national organizations with an interest in, 
                and expertise in, providing services to 
                children with disabilities and their families.
          (3) Public comment.--The Secretary shall take public 
        comment on the plan.
          (4) Distribution of funds.--In implementing the plan, 
        the Secretary shall, to the extent appropriate, ensure 
        that funds are awarded to recipients under this subpart 
        to carry out activities that benefit, directly or 
        indirectly, children with disabilities of all ages.
          (5) Reports to congress.--The Secretary shall 
        periodically report to the Congress on the Secretary's 
        activities under this subsection, including an initial 
        report not later than the date that is 18 months after 
        the date of the enactment of the Individuals with 
        Disabilities Act Amendments of 1997.
  (b) Eligible Applicants.--
          (1) In general.--Except as otherwise provided in this 
        subpart, the following entities are eligible to apply 
        for a grant, contract, or cooperative agreement under 
        this subpart:
                  (A) A State educational agency.
                  (B) A local educational agency.
                  (C) An institution of higher education.
                  (D) Any other public agency.
                  (E) A private nonprofit organization.
                  (F) An outlying area.
                  (G) An Indian tribe or a tribal organization 
                (as defined under section 4 of the Indian Self-
                Determination and Education Assistance Act).
                  (H) A for-profit organization, if the 
                Secretary finds it appropriate in light of the 
                purposes of a particular competition for a 
                grant, contract, or cooperative agreement under 
                this subpart.
          (2) Special rule.--The Secretary may limit the 
        entities eligible for an award of a grant, contract, or 
        cooperative agreement to one or more categories of 
        eligible entities described in paragraph (1).
  (c) Use of Funds by Secretary.--Notwithstanding any other 
provision of law, and in addition to any authority granted the 
Secretary under chapter 1 or chapter 2, the Secretary may use 
up to 20 percent of the funds available under either chapter 1 
or chapter 2 for any fiscal year to carry out any activity, or 
combination of activities, subject to such conditions as the 
Secretary determines are appropriate effectively to carry out 
the purposes of such chapters, that--
                  (A) is consistent with the purposes of 
                chapter 1, chapter 2, or both; and
                  (B) involves--
                          (i) research;
                          (ii) personnel preparation;
                          (iii) parent training and 
                        information;
                          (iv) technical assistance and 
                        dissemination;
                          (v) technology development, 
                        demonstration, and utilization; or
                          (vi) media services.
  (d) Special Populations.--
          (1) Application requirement.--In making an award of a 
        grant, contract, or cooperative agreement under this 
        subpart, the Secretary shall, as appropriate, require 
        an applicant to demonstrate how the applicant will 
        address the needs of children with disabilities from 
        minority backgrounds.
          (2) Outreach and technical assistance.--
                  (A) Requirement.--Notwithstanding any other 
                provision of this Act, the Secretary shall 
                ensure that at least one percent of the total 
                amount of funds appropriated to carryout this 
subpart is used for either or both of the following activities:
                          (i) To provide outreach and technical 
                        assistance to Historically Black 
                        Colleges and Universities, and to 
                        institutions of higher education with 
                        minority enrollments of at least 25 
                        percent, to promote the participation 
                        of such colleges, universities, and 
                        institutions in activities under this 
                        subpart.
                          (ii) To enable Historically Black 
                        Colleges and Universities, and the 
                        institutions described in clause (i), 
                        to assist other colleges, universities, 
                        institutions, and agencies in improving 
                        educational and transitional results 
                        for children with disabilities.
                  (B) Reservation of funds.--The Secretary may 
                reserve funds appropriated under this subpart 
                to satisfy the requirement of subparagraph (A).
  (e) Priorities.--
          (1) In general.--Except as otherwise explicitly 
        authorized in this subpart, the Secretary shall ensure 
        that a grant, contract, or cooperative agreement under 
        chapter 1 or 2 is awarded only--
                  (A) for activities that are designed to 
                benefit children with disabilities, their 
                families, or the personnel employed to work 
                with such children or their families; or
                  (B) to benefit other individuals with 
                disabilities who such chapter is intended to 
                benefit.
          (2) Priority for particular activities.--Subject to 
        paragraph (1), the Secretary, in making an award of a 
        grant, contract, or cooperative agreement under this 
        subpart, may, without regard to the rule making 
        procedures under section 553 of title 5, United States 
        Code, limit competitions to, or otherwise give priority 
        to--
                  (A) projects that address one or more--
                          (i) age ranges;
                          (ii) disabilities;
                          (iii) school grades;
                          (iv) types of educational placements 
                        or early intervention environments;
                          (v) types of services;
                          (vi) content areas, such as reading; 
                        or
                          (vii) effective strategies for 
                        helping children with disabilities 
                        learn appropriate behavior in the 
                        school and other community-based 
                        educational settings;
                  (B) projects that address the needs of 
                children based on the severity of their 
                disability;
                  (C) projects that address the needs of--
                          (i) low-achieving students;
                          (ii) underserved populations;
                          (iii) children from low-income 
                        families;
                          (iv) children with limited English 
                        proficiency;
                          (v) unserved and underserved areas;
                          (vi) particular types of geographic 
                        areas; or
                          (vii) children whose behavior 
                        interferes with their learning and 
                        socialization;
                  (D) projects to reduce inappropriate 
                identification of children as children with 
                disabilities, particularly among minority 
                children;
                  (E) projects that are carried out in 
                particular areas of the country, to ensure 
                broad geographic coverage; and
                  (F) any activity that is expressly authorized 
                in chapter 1 or 2.
  (f) Applicant and Recipient Responsibilities.--
          (1) Development and assessment of projects.--The 
        Secretary shall require that an applicant for, and a 
        recipient of, a grant, contract, or cooperative 
        agreement for a project under this subpart--
                  (A) involve individuals with disabilities or 
                parents of individuals with disabilities in 
                planning, implementing, and evaluating the 
                project; and
                  (B) where appropriate, determine whether the 
                project has any potential for replication and 
                adoption by other entities.
          (2) Additional responsibilities.--The Secretary may 
        require a recipient of a grant, contract, or 
        cooperative agreement for a project under this 
        subpart--
                  (A) to share in the cost of the project;
                  (B) to prepare the research and evaluation 
                findings and products from the project in 
                formats that are useful for specific audiences, 
                including parents, administrators, teachers, 
                early intervention personnel, related services 
                personnel, and individuals with disabilities;
                  (C) to disseminate such findings and 
                products; and
                  (D) to collaborate with other such recipients 
                in carrying out subparagraphs (B) and (C).
  (g) Application Management.--
          (1) Standing panel.--
                  (A) In general.--The Secretary shall 
                establish and use a standing panel of experts 
                who are competent, by virtue of their training, 
                expertise, or experience, to evaluate 
                applications under this subpart that, 
                individually, request more than $75,000 per 
                year in Federal financial assistance.
                  (B) Membership.--The standing panel shall 
                include, at a minimum--
                          (i) individuals who are 
                        representatives of institutions of 
                        higher education that plan, develop, 
                        and carry out programs of personnel 
                        preparation;
                          (ii) individuals who design and carry 
                        out programs of research targeted to 
                        the improvement of special education 
                        programs and services;
                          (iii) individuals who have recognized 
                        experience and knowledge necessary to 
                        integrate and apply research findings 
                        to improve educational and transitional 
                        results for children with disabilities;
                          (iv) individuals who administer 
                        programs at the State or local level in 
                        which children with disabilities 
                        participate;
                          (v) individuals who prepare parents 
                        of children with disabilities to 
                        participate in making decisions about 
                        the education of their children;
                          (vi) individuals who establish 
                        policies that affect the delivery of 
                        services to children with disabilities;
                          (vii) individuals who are parents of 
                        children with disabilities who are 
                        benefiting, or have benefited, from 
                        coordinated research, personnel 
                        preparation, and technical assistance; 
                        and
                          (viii) individuals with disabilities.
                  (C) Training.--The Secretary shall provide 
                training to the individuals who are selected as 
                members of the standing panel under this 
                paragraph.
                  (D) Term.--No individual shall serve on the 
                standing panel for more than 3 consecutive 
                years, unless the Secretary determines that the 
                individual's continued participation is 
                necessary for the sound administration of this 
                subpart.
          (2) Peer-review panels for particular competitions.--
                  (A) Composition.--The Secretary shall ensure 
                that each sub-panel selected from the standing 
                panel that reviews applications under this 
                subpart includes--
                          (i) individuals with knowledge and 
                        expertise on the issues addressed by 
                        the activities authorized by the 
                        subpart; and
                          (ii) to the extent practicable, 
                        parents of children with disabilities, 
                        individuals with disabilities, and 
                        persons from diverse backgrounds.
                  (B) Federal employment limitation.--A 
                majority of the individuals on each sub-panel 
                that reviews an application under this subpart 
                shall be individuals who are not employees of 
                the Federal Government.
          (3) Use of discretionary funds for administrative 
        purposes.--
                  (A) Expenses and fees of non-federal panel 
                members.--The Secretary may use funds available 
                under this subpart to pay the expenses and fees 
                of the panel members who are not officers or 
                employees of the Federal Government.
                  (B) Administrative support.--The Secretary 
                may use not more than 1 percent of the funds 
                appropriated to carry out this subpart to pay 
                non-Federal entities for administrative support 
                related to management of applications submitted 
                under this subpart.
                  (C) Monitoring.--The Secretary may use funds 
                available under this subpart to pay the 
                expenses of Federal employees to conduct on-
                site monitoring of projects receiving $500,000 
                or more for any fiscal year under this subpart.
  (h) Program Evaluation.--The Secretary may use funds 
appropriated to carry out this subpart to evaluate activities 
carried out under the subpart.
  (i) Minimum Funding Required.--
          (1) In general.--Subject to paragraph (2), the 
        Secretary shall ensure that, for each fiscal year, at 
        least the following amounts are provided under this 
        subpart to address the following needs:
                  (A) $12,832,000 to address the educational, 
                related services, transitional, and early 
                intervention needs of children with deaf-
                blindness.
                  (B) $4,000,000 to address the postsecondary, 
                vocational, technical, continuing, and adult 
                education needs of individuals with deafness.
                  (C) $4,000,000 to address the educational, 
                related services, and transitional needs of 
                children with an emotional disturbance and 
                those who are at risk of developing an 
                emotional disturbance.
          (2) Ratable reduction.--If the total amount 
        appropriated to carry out sections 672, 673, and 685 
        for any fiscal year is less than $130,000,000, the 
        amounts listed in (1) shall be ratably reduced.
  (j) Eligibility for Financial Assistance.--Effective for 
fiscal years for which the Secretary may make grants under 
section 619(b), no State or local educational agency or 
educational service agency or other public institution or 
agency may receive a grant under this subpart which relates 
exclusively to programs, projects, and activities pertaining to 
children aged three to five, inclusive, unless the State is 
eligible to receive a grant under section 619(b).

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

SEC. 671. FINDINGS AND PURPOSE.

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

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

  (a) In General.--The Secretary shall make competitive grants 
to, or enter into contracts or cooperative agreements with, 
eligible entities to produce, and advance the use of, 
knowledge--
          (1) to improve--
                  (A) services provided under this Act, 
                including the practices of professionals and 
                others involved in providing such services to 
                children with disabilities; and
                  (B) educational results for children with 
                disabilities;
          (2) to address the special needs of preschool-aged 
        children and infants and toddlers with disabilities, 
        including infants and toddlers who would be at risk of 
        having substantial developmental delays if early 
        intervention services were not provided to them;
          (3) to address the specific problems of over-
        identification and under-identification of children 
        with disabilities;
          (4) to develop and implement effective strategies for 
        addressing inappropriate behavior of students with 
        disabilities in schools, including strategies to 
        prevent children with emotional and behavioral problems 
        from developing emotional disturbances that require the 
        provision of special education and related services;
          (5) to improve secondary and postsecondary education 
        and transitional services for children with 
        disabilities; and
          (6) to address the range of special education, 
        related services, and early intervention needs of 
        children with disabilities who need significant levels 
        of support to maximize their participation and learning 
        in school and in the community.
  (b) New Knowledge Production; Authorized Activities.--
          (1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives described in subsection (a), that lead to 
        the production of new knowledge.
          (2) Authorized activities.--Activities that may be 
        carried out under this subsection include activities 
        such as the following:
                  (A) Expanding understanding of the 
                relationships between learning characteristics 
                of children with disabilities and the diverse 
                ethnic, cultural, linguistic, social, and 
                economic backgrounds of children with 
                disabilities and their families.
                  (B) Developing or identifying innovative, 
                effective, and efficient curricula designs, 
                instructional approaches, and strategies, and 
                developing or identifying positive academic and 
                social learning opportunities, that--
                          (i) enable children with disabilities 
                        to make effective transitions described 
                        in section 674(b)(3)(C) or transitions 
                        between educational settings; and
                          (ii) improve educational and 
                        transitional results for children with 
                        disabilities at all levels of the 
                        educational system in which the 
                        activities are carried out and, in 
                        particular, that improve the progress 
                        of the children, as measured by 
                        assessments within the general 
                        education curriculum involved.
                  (C) Advancing the design of assessment tools 
                and procedures that will accurately and 
                efficiently determine the special 
                instructional, learning, and behavioral needs 
                of children with disabilities, especially 
                within the context of general education.
                  (D) Studying and promoting improved alignment 
                and compatibility of general and special 
                education reforms concerned with curricular and 
                instructional reform, evaluation and 
                accountability of such reforms, and 
                administrative procedures.
                  (E) Advancing the design, development, and 
                integration of technology, assistive technology 
                devices, media, and materials, to improve early 
                intervention, educational, and transitional 
                services and results for children with 
                disabilities.
                  (F) Improving designs, processes, and results 
                of personnel preparation for personnel who 
                provide services to children with disabilities 
                through the acquisition of information on, and 
                implementation of, research-based practices.
                  (G) Advancing knowledge about the 
                coordination of education with health and 
                social services.
                  (H) Producing information on the long-term 
                impact of early intervention and education on 
                results for individuals with disabilities 
                through large-scale longitudinal studies.
  (c) Integration of Research and Practice; Authorized 
Activities.--
          (1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives described in subsection (a), that integrate 
        research and practice, including activities that 
        support State systemic-change and local capacity-
        building and improvement efforts.
          (2) Authorized activities.--Activities that may be 
        carried out under this subsection include activities 
        such as the following:
                  (A) Model demonstration projects to apply and 
                test research findings in typical service 
                settings to determine the usability, 
                effectiveness, and general applicability of 
                such research findings in such areas as 
                improving instructional methods, curricula, and 
                tools, such as textbooks and media.
                  (B) Demonstrating and applying research-based 
                findings to facilitate systemic changes, 
                related to the provision of services to 
                children with disabilities, in policy, 
                procedure, practice, and the training and use 
                of personnel.
                  (C) Promoting and demonstrating the 
                coordination of early intervention and 
                educational services for children with 
                disabilities with services provided by health, 
                rehabilitation, and social service agencies.
                  (D) Identifying and disseminating solutions 
                that overcome systemic barriers to the 
                effective and efficient delivery of early 
                intervention, educational, and transitional 
                services to children with disabilities.
  (d) Improving the Use of Professional Knowledge; Authorized 
Activities.--
          (1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives described in subsection (a), that improve 
        the use of professional knowledge, including activities 
        that support State systemic-change and local capacity-
        building and improvement efforts.
          (2) Authorized activities.--Activities that may be 
        carried out under this subsection include activities 
        such as the following:
                  (A) Synthesizing useful research and other 
                information relating to the provision of 
                services to children with disabilities, 
                including effective practices.
                  (B) Analyzing professional knowledge bases to 
                advance an understanding of the relationships, 
                and the effectiveness of practices, relating to 
                the provision of services to children with 
                disabilities.
                  (C) Ensuring that research and related 
                products are in appropriate formats for 
                distribution to teachers, parents, and 
                individuals with disabilities.
                  (D) Enabling professionals, parents of 
                children with disabilities, and other persons, 
                to learn about, and implement, the findings of 
                research, and successful practices developed in 
                model demonstration projects, relating to the 
                provision of services to children with 
                disabilities.
                  (E) Conducting outreach, and disseminating 
                information relating to successful approaches 
                to overcoming systemic barriers to the 
                effective and efficient delivery of early 
                intervention, educational, and transitional 
                services, to personnel who provide services to 
                children with disabilities.
  (e) Balance Among Activities and Age Ranges.--In carrying out 
this section, the Secretary shall ensure that there is an 
appropriate balance--
          (1) among knowledge production, integration of 
        research and practice, and use of professional 
        knowledge; and
          (2) across all age ranges of children with 
        disabilities.
  (f) Applications.--An eligible entity that wishes to receive 
a grant, or enter into a contract or cooperative agreement, 
under this section shall submit an application to the Secretary 
at such time, in such manner, and containing such information 
as the Secretary may require.
  (g) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section such sums as may be 
necessary for each of the fiscal years 1998 through 2002.

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

  (a) In General.--The Secretary shall, on a competitive basis, 
make grants to, or enter into contracts or cooperative 
agreements with, eligible entities--
          (1) to help address State-identified needs for 
        qualified personnel in special education, related 
        services, early intervention, and regular education, to 
        work with children with disabilities; and
          (2) to ensure that those personnel have the skills 
        and knowledge, derived from practices that have been 
        determined, through research and experience, to be 
        successful, that are needed to serve those children.
  (b) Low-Incidence Disabilities; Authorized Activities.--
          (1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives describedin subsection (a), that benefit 
children with low-incidence disabilities.
          (2) Authorized activities.--Activities that may be 
        carried out under this subsection include activities 
        such as the following:
                  (A) Preparing persons who--
                          (i) have prior training in 
                        educational and other related service 
                        fields; and
                          (ii) are studying to obtain degrees, 
                        certificates, or licensure that will 
                        enable them to assist children with 
                        disabilities to achieve the objectives 
                        set out in their individualized 
                        education programs described in section 
                        614(d), or to assist infants and 
                        toddlers with disabilities to achieve 
                        the outcomes described in their 
                        individualized family service plans 
                        described in section 636.
                  (B) Providing personnel from various 
                disciplines with interdisciplinary training 
                that will contribute to improvement in early 
                intervention, educational, and transitional 
                results for children with disabilities.
                  (C) Preparing personnel in the innovative 
                uses and application of technology to enhance 
                learning by children with disabilities through 
                early intervention, educational, and 
                transitional services.
                  (D) Preparing personnel who provide services 
                to visually impaired or blind children to teach 
                and use Braille in the provision of services to 
                such children.
                  (E) Preparing personnel to be qualified 
                educational interpreters, to assist children 
                with disabilities, particularly deaf and hard-
                of-hearing children in school and school-
                related activities and deaf and hard-of-hearing 
                infants and toddlers and preschool children in 
                early intervention and preschool programs.
                  (F) Preparing personnel who provide services 
                to children with significant cognitive 
                disabilities and children with multiple 
                disabilities.
          (3) Definition.--As used in this section, the term 
        ``low-incidence disability'' means--
                  (A) a visual or hearing impairment, or 
                simultaneous visual and hearing impairments;
                  (B) a significant cognitive impairment; or
                  (C) any impairment for which a small number 
                of personnel with highly specialized skills and 
                knowledge are needed in order for children with 
                that impairment to receive early intervention 
                services or a free appropriate public 
                education.
          (4) Selection of recipients.--In selecting recipients 
        under this subsection, the Secretary may give 
        preference to applications that propose to prepare 
        personnel in more than one low-incidence disability, 
        such as deafness and blindness.
          (5) Preparation in use of braille.--The Secretary 
        shall ensure that all recipients of assistance under 
        this subsection who will use that assistance to prepare 
        personnel to provide services to visually impaired or 
        blind children that can appropriately be provided in 
        Braille will prepare those individuals to provide those 
        services in Braille.
  (c) Leadership Preparation; Authorized Activities.--
          (1) In general.--In carrying out this section, the 
        Secretary shall support leadership preparation 
        activities that are consistent with the objectives 
        described in subsection (a).
          (2) Authorized activities.--Activities that may be 
        carried out under this subsection include activities 
        such as the following:
                  (A) Preparing personnel at the advanced 
                graduate, doctoral, and postdoctoral levels of 
                training to administer, enhance, or provide 
                services for children with disabilities.
                  (B) Providing interdisciplinary training for 
                various types of leadership personnel, 
                including teacher preparation faculty, 
                administrators, researchers, supervisors, 
                principals, and other persons whose work 
                affects early intervention, educational, and 
                transitional services for children with 
                disabilities.
  (d) Projects of National Significance; Authorized 
Activities.--
          (1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives described in subsection (a), that are of 
        national significance and have broad applicability.
          (2) Authorized activities.--Activities that may be 
        carried out under this subsection include activities 
        such as the following:
                  (A) Developing and demonstrating effective 
                and efficient practices for preparing personnel 
                to provide services to children with 
                disabilities, including practices that address 
                any needs identified in the State's improvement 
                plan under part C;
                  (B) Demonstrating the application of 
                significant knowledge derived from research and 
                other sources in the development of programs to 
                prepare personnel to provide services to 
                children with disabilities.
                  (C) Demonstrating models for the preparation 
                of, and interdisciplinary training of, early 
                intervention, special education, and general 
                education personnel, to enable the personnel--
                          (i) to acquire the collaboration 
                        skills necessary to work within teams 
                        to assist children with disabilities; 
                        and
                          (ii) to achieve results that meet 
                        challenging standards, particularly 
                        within the general education 
                        curriculum.
                  (D) Demonstrating models that reduce 
                shortages of teachers, and personnel from other 
                relevant disciplines, who serve children with 
                disabilities, through reciprocity arrangements 
                between States that are related to licensure 
                and certification.
                  (E) Developing, evaluating, and disseminating 
                model teaching standards for persons working 
                with children with disabilities.
                  (F) Promoting the transferability, across 
                State and local jurisdictions, of licensure and 
                certification of teachers and administrators 
                working with such children.
                  (G) Developing and disseminating models that 
                prepare teachers with strategies, including 
                behavioral interventions, for addressing the 
                conduct of children with disabilities that 
                impedes their learning and that of others in 
                the classroom.
                  (H) Institutes that provide professional 
                development that addresses the needs of 
                children with disabilities to teachers or teams 
                of teachers, and where appropriate, to school 
                board members, administrators, principals, 
                pupil-service personnel, and other staff from 
                individual schools.
                  (I) Projects to improve the ability of 
                general education teachers, principals, and 
                other administrators to meet the needs of 
                children with disabilities.
                  (J) Developing, evaluating, and disseminating 
                innovative models for the recruitment, 
                induction, retention, and assessment of new, 
                qualified teachers, especially from groups that 
                are underrepresented in the teaching 
                profession, including individuals with 
                disabilities.
                  (K) Supporting institutions of higher 
                education with minority enrollments of at least 
                25 percent for the purpose of preparing 
                personnel to work with children with 
                disabilities.
  (e) High-Incidence Disabilities; Authorized Activities.--
          (1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives described in subsection (a), to benefit 
        children with high-incidence disabilities, such as 
        children with specific learning disabilities, speech or 
        language impairment, or mental retardation.
          (2) Authorized activities.--Activities that may be 
        carried out under this subsection include the 
        following:
                  (A) Activities undertaken by institutions of 
                higher education, local educational agencies, 
                and other local entities--
                          (i) to improve and reform their 
                        existing programs to prepare teachers 
                        and related services personnel--
                                  (I) to meet the diverse needs 
                                of children with disabilities 
                                for early intervention, 
                                educational, and transitional 
                                services; and
                                  (II) to work collaboratively 
                                in regular classroom settings; 
                                and
                          (ii) to incorporate best practices 
                        and research-based knowledge about 
                        preparing personnel so they will have 
                        the knowledge and skills to improve 
                        educational results for children with 
                        disabilities.
                  (B) Activities incorporating innovative 
                strategies to recruit and prepare teachers and 
                other personnel to meet the needs of areas in 
                which there are acute and persistent shortages 
                of personnel.
                  (C) Developing career opportunities for 
                paraprofessionals to receive training as 
                special education teachers, related services 
                personnel, and early intervention personnel, 
                including interdisciplinary training to enable 
                them to improve early intervention, 
                educational, and transitional results for 
                children with disabilities.
  (f) Applications.--
          (1) In general.--Any eligible entity that wishes to 
        receive a grant, or enter into a contract or 
        cooperative agreement, under this section shall submit 
        an application to the Secretary at such time, in such 
        manner, and containing such information as the 
        Secretary may require.
          (2) Identified state needs.--
                  (A) Requirement to address identified 
                needs.--Any application under subsection (b), 
                (c), or (e) shall include information 
                demonstrating to the satisfaction of the 
                Secretary that the activities described in the 
                application will address needs identified by 
                the State or States the applicant proposes to 
                serve.
                  (B) Cooperation with state educational 
                agencies.--Any applicant that is not a local 
                educational agency or a State educational 
                agency shall include information demonstrating 
                to the satisfaction of the Secretary that the 
                applicant and one or more State educational 
                agencies have engaged in a cooperative effort 
                to plan the project to which the application 
                pertains, and will cooperate in carrying out 
                and monitoring the project.
          (3) Acceptance by states of personnel preparation 
        requirements.--The Secretary may require applicants to 
        provide letters from one or more States stating that 
        the States--
                  (A) intend to accept successful completion of 
                the proposed personnel preparation program as 
                meeting State personnel standards for serving 
                children with disabilities or serving infants 
                and toddlers with disabilities; and
                  (B) need personnel in the area or areas in 
                which the applicant proposes to provide 
                preparation, as identified in the States' 
                comprehensive systems of personnel development 
                under parts B and C.
  (g) Selection of Recipients.--
          (1) Impact of project.--In selecting recipients under 
        this section, the Secretary may consider the impact of 
        the project proposed in the application in meeting the 
        need for personnel identified by the States.
          (2) Requirement on applicants to meet state and 
        professional standards.--The Secretary shall make 
        grants under this section only to eligible applicants 
        that meet State and professionally-recognized standards 
        for the preparation of special education and related 
        services personnel, if the purpose of the project is to 
        assist personnel in obtaining degrees.
          (3) Preferences.--In selecting recipients under this 
        section, the Secretary may--
                  (A) give preference to institutions of higher 
                education that are educating regular education 
                personnel to meet the needs of children with 
                disabilities in integrated settings and 
                educating special education personnel to work 
                in collaboration with regular educators in 
                integrated settings; and
                  (B) give preference to institutions of higher 
                education that are successfully recruiting and 
                preparing individuals with disabilities and 
                individuals from groups that are 
                underrepresented in the profession for which 
                they are preparing individuals.
  (h) Service Obligation.--
          (1) In general.--Each application for funds under 
        subsections (b) and (e), and to the extent appropriate 
        subsection (d), shall include an assurance that the 
        applicant will ensure that individuals who receive a 
        scholarship under the proposed project will 
        subsequently provide special education and related 
        services to children with disabilities for a period of 
        2 years for every year for which assistance was 
        received or repay all or part of the cost of that 
        assistance, in accordance with regulations issued by 
        the Secretary.
          (2) Leadership preparation.--Each application for 
        funds under subsection (c) shall include an assurance 
        that the applicant will ensure that individuals who 
        receive a scholarship under the proposed project will 
        subsequently perform work related to their preparation 
        for a period of 2 years for every year for which 
        assistance was received or repay all or part of such 
        costs, in accordance with regulations issued by the 
        Secretary.
  (i) Scholarships.--The Secretary may include funds for 
scholarships, with necessary stipends and allowances, in awards 
under subsections (b), (c), (d), and (e).
  (j) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section such sums as may be 
necessary for each of the fiscal years 1998 through 2002.

SEC. 674. STUDIES AND EVALUATIONS.

  (a) Studies and Evaluations.--
          (1) In general.--The Secretary shall, directly or 
        through grants, contracts, or cooperative agreements, 
        assess the progress in the implementation of this Act, 
        including the effectiveness of State and local efforts 
        to provide--
                  (A) a free appropriate public education to 
                children with disabilities; and
                  (B) early intervention services to infants 
                and toddlers with disabilities and infants and 
                toddlers who would be at risk of having 
                substantial developmental delays if early 
                intervention services were not provided to 
                them.
          (2) Authorized activities.--In carrying out this 
        subsection, the Secretary may support studies, 
        evaluations, and assessments, including studies that--
                  (A) analyze measurable impact, outcomes, and 
                results achieved by State educational agencies 
                and local educational agencies through their 
                activities to reform policies, procedures, and 
                practices designed to improve educational and 
                transitional services and results for children 
                with disabilities;
                  (B) analyze State and local needs for 
                professional development, parent training, and 
                other appropriate activities that can reduce 
                the need for disciplinary actions involving 
                children with disabilities;
                  (C) assess educational and transitional 
                services and results for children with 
                disabilities from minority backgrounds, 
                including--
                          (i) data on--
                                  (I) the number of minority 
                                children who are referred for 
                                special education evaluation;
                                  (II) the number of minority 
                                children who are receiving 
                                special education and related 
                                services and their educational 
                                or other service placement; and
                                  (III) the number of minority 
                                children who graduated from 
                                secondary and postsecondary 
                                education programs; and
                          (ii) the performance of children with 
                        disabilities from minority backgrounds 
                        on State assessments and other 
                        performance indicators established for 
                        all students;
                  (D) measure educational and transitional 
                services and results of children with 
                disabilities under this Act, including 
                longitudinal studies that--
                          (i) examine educational and 
                        transitional services and results for 
                        children with disabilities who are 3 
                        through 17 years of age and are 
                        receiving special education and related 
                        services under this Act, using a 
                        national, representative sample of 
                        distinct age cohorts and disability 
                        categories; and
                          (ii) examine educational results, 
                        postsecondary placement, and employment 
                        status of individuals with 
                        disabilities, 18 through 21 years of 
                        age, who are receiving or have received 
                        special education and related services 
                        under this Act; and
                  (E) identify and report on the placement of 
                children with disabilities by disability 
                category.
  (b) National Assessment.--
          (1) In general.--The Secretary shall carry out a 
        national assessment of activities carried out with 
        Federal funds under this Act in order--
                  (A) to determine the effectiveness of this 
                Act in achieving its purposes;
                  (B) to provide information to the President, 
                the Congress, the States, local educational 
                agencies, and the public on how to implement 
                the Act more effectively; and
                  (C) to provide the President and the Congress 
                with information that will be useful in 
                developing legislation to achieve the purposes 
                of this Act more effectively.
          (2) Consultation.--The Secretary shall plan, review, 
        and conduct the national assessment under this 
        subsection in consultation with researchers, State 
        practitioners, local practitioners, parents of children 
        with disabilities, individuals with disabilities, and 
        other appropriate individuals.
          (3) Scope of assessment.--The national assessment 
        shall examine how well schools, local educational 
        agencies, States, other recipients of assistance under 
        this Act, and the Secretary are achieving the purposes 
        of this Act, including--
                  (A) improving the performance of children 
                with disabilities in general scholastic 
                activities and assessments as compared to 
                nondisabled children;
                  (B) providing for the participation of 
                children with disabilities in the general 
                curriculum;
                  (C) helping children with disabilities make 
                successful transitions from--
                          (i) early intervention services to 
                        preschool education;
                          (ii) preschool education to 
                        elementary school; and
                          (iii) secondary school to adult life;
                  (D) placing and serving children with 
                disabilities, including minority children, in 
                the least restrictive environment appropriate;
                  (E) preventing children with disabilities, 
                especially children with emotional disturbances 
                and specific learning disabilities, from 
                dropping out of school;
                  (F) addressing behavioral problems of 
                children with disabilities as compared to 
                nondisabled children;
                  (G) coordinating services provided under this 
                Act with each other, with other educational and 
                pupil services (including preschool services), 
                and with health and social services funded from 
                other sources;
                  (H) providing for the participation of 
                parents of children with disabilities in the 
                education of their children; and
                  (I) resolving disagreements between education 
                personnel and parents through activities such 
                as mediation.
          (4) Interim and final reports.--The Secretary shall 
        submit to the President and the Congress--
                  (A) an interim report that summarizes the 
                preliminary findings of the assessment not 
                later than October 1, 1999; and
                  (B) a final report of the findings of the 
                assessment not later than October 1, 2001.
  (c) Annual Report.--The Secretary shall report annually to 
the Congress on--
          (1) an analysis and summary of the data reported by 
        the States and the Secretary of the Interior under 
        section 618;
          (2) the results of activities conducted under 
        subsection (a);
          (3) the findings and determinations resulting from 
        reviews of State implementation of this Act.
  (d) Technical Assistance to LEAS.--The Secretary shall 
provide directly, or through grants, contracts, or cooperative 
agreements, technical assistance to local educational agencies 
to assist them in carrying out local capacity-building and 
improvement projects under section 611(f)(4) and other LEA 
systemic improvement activities under this Act.
  (e) Reservation for Studies and Technical Assistance.--
          (1) In general.--Except as provided in paragraph (2) 
        and notwithstanding any other provision of this Act, 
        the Secretary may reserve up to one-half of one percent 
        of the amount appropriated under parts B and C for each 
        fiscal year to carry out this section.
          (2) Maximum amount.--For the first fiscal year in 
        which the amount described in paragraph (1) is at least 
        $20,000,000, the maximum amount the Secretary may 
        reserve under paragraph (1) is $20,000,000. For each 
        subsequent fiscal year, the maximum amount the 
        Secretary may reserve under paragraph (1) is 
        $20,000,000, increased by the cumulative rate of 
        inflation since the fiscal year described in the 
        previous sentence.
          (3) Use of maximum amount.--In any fiscal year 
        described in paragraph (2) for which the Secretary 
        reserves the maximum amount described in that 
        paragraph, the Secretary shall use at least half of the 
        reserved amount for activities under subsection (d).

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

SEC. 681. FINDINGS AND PURPOSES.

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

SEC. 682. PARENT TRAINING AND INFORMATION CENTERS.

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

SEC. 683. COMMUNITY PARENT RESOURCE CENTERS.

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

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

  (a) In General.--The Secretary may, directly or through 
awards to eligible entities, provide technical assistance for 
developing, assisting, and coordinating parent training and 
information programs carried out by parent training and 
information centers receiving assistance under sections 682 and 
683.
  (b) Authorized Activities.--The Secretary may provide 
technical assistance to a parent training and information 
center under this section in areas such as--
          (1) effective coordination of parent training 
        efforts;
          (2) dissemination of information;
          (3) evaluation by the center of itself;
          (4) promotion of the use of technology, including 
        assistive technology devices and assistive technology 
        services;
          (5) reaching underserved populations;
          (6) including children with disabilities in general 
        education programs;
          (7) facilitation of transitions from--
                  (A) early intervention services to preschool;
                  (B) preschool to school; and
                  (C) secondary school to postsecondary 
                environments; and
          (8) promotion of alternative methods of dispute 
        resolution.

SEC. 685. COORDINATED TECHNICAL ASSISTANCE AND DISSEMINATION.

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

SEC. 686. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

    The Individuals with Disabilities Education Act (IDEA) 
provides millions of children with disabilities with the right 
to a free appropriate public education (FAPE). During 
consideration of the IDEA in the 104th Congress, emphasis was 
shifted away from improving the educational opportunities for 
these needy children. Instead, Majority Members of the 
Committee on Economic and Educational Opportunities sought to 
create a discipline model that would actually deny certain 
children their civil right to an education. This attempt was 
correctly attacked by nearly every education group in the 
country. Their opposition to this provision stopped the 
reauthorization of the IDEA in its tracks.
    On January 7, 1997, the Committee on Education and the 
Workforce, introduced a ``warmed over'' IDEA reauthorization 
bill (H.R. 5) containing the same ill conceived provision. 
Seeking to avoid attacks from the education community, and to 
ensure that this important legislation survives the 
reauthorization process, a few Members of the House and Senate 
agreed to create a bipartisan, bicameral working group which 
would draft a consensus IDEA bill. The result is a bill that is 
significantly better than the ill-fated legislation created in 
the 104th Congress and reintroduced in the 105th. However, this 
unique process served to usurp the authority of the 
Subcommittee on Early Childhood, Youth and Families and 
discouraged participation by many of its Members. Additionally, 
there continue to be outstanding important educational issues 
that were not considered by the ``working group.''

                   community parent resource centers

    We strongly support the expansion of the highly successful 
Community Parent Resource Centers program. 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.
    The 1990 amendment to IDEA established a remedy in the form 
of ``experimental centers,'' now called Community Parent 
Resource Centers. These Centers are grassroots, community-based 
programs serving chronically underrepresented parents of 
children with disabilities residing in urban and rural areas. 
There are currently twenty-six parent Centers around the 
country. However, only five of these Centers are funded through 
the IDEA. Many are struggling to survive, jeopardizing the 
chances parents in those traditionally underserved areas have 
of participating in their children's education. These Centers 
provide a variety of services which enable parents to work with 
their children's schools to ensure that their children receive 
a free appropriate public education.
    During Full Committee consideration of H.R. 5, an amendment 
was offered that would have doubled the number of centers 
receiving funding through IDEA to ensure that more parents can 
participate fully in their children's education and avoid 
costly litigation that results from a misunderstanding of the 
IDEA.

                  transition of declassified students

    We support the extension of FAPE to students who are 
removed from special education. A report by the National 
Council on Disability confirmed that ``children from minority 
groups are identified as mildly disabled in numbers 
disproportionate to their representation in the general 
population.'' Although only 21.4% of the total school 
population is African American, African Americans represent 
41.6% of special education students. The report goes on to 
state that these students' classroom behavior may contribute to 
their over identification and that their behavior may be linked 
to learning difficulties. If these children were returned to 
regular education classes without support services, the 
behavior and learning problems would still need to be 
addressed.
    An amendment was offered during Full Committee 
consideration of H.R. 5 that would help children who have been 
mistakenly placed in special education and then declassified 
and shipped back into regular education. My amendment would 
create a mechanism to ensure a smooth transition from special 
education into regular education by providing these children 
with services which insure a greater opportunity for academic 
success in regular education classes. By providing these 
children with IDEA services for one year after they are 
declassified, we will decrease the chances that they will be 
returned to special education. Keeping these wrongly classified 
children in regular education where they belong would 
ultimately result in lower costs for school districts.

                 making the idea work for all children

    When considering education legislation, it is vital that we 
fight the impulse to choose expediency over reasonable debate. 
The IDEA impacts on children and families in all parts of the 
country, rural, urban and suburban. The process we use to 
reauthorize critically important legislation must therefore 
remain open to the public, as well as all Members of the 
Committee on Education and the Workforce. In the current spirit 
of bipartisanship we must work harder to create legislation 
that puts the needs of children and families ahead of political 
expediency.

                                                    Major R. Owens.
                            DISSENTING VIEWS

                              introduction

    Congress today continues our unconstitutional interference 
with the education of the disabled by moving forward with HR 5, 
the Individuals With Disabilities Education Act of 1997 (IDEA). 
Parents of disabled children should have the exact same rights 
to make education decisions for their children as the parents 
of all children. A huge federal bureaucracy is not the best way 
to insure that. In fact, logic dictates that it is this very 
federal bureaucracy which most negatively impacts the goals of 
parents to get the best education for their children. Parents 
and local communities know so much better than do the 
bureaucrats in Washington the special needs of children. This 
is why we need decentralization. Parents and local educators 
will always know better what is best for their children. 
Obviously, no Washington bureaucrat can know or love a child 
the way their parents do.
    In fact, we in Congress are at least as culpable as the 
bureaucrats because we pass many of the laws which the 
bureaucrats enforce. The notion is no way that the unique needs 
of my grandchildren, and some young boy or girl in Los Angeles, 
California or New York City can all be put into some 
nationalized ``cookie cutter'' approach.
    Furthermore, the federal Department of Education is a huge 
bureaucracy which hires hordes of bureaucrats and political 
employees with some 30 billion dollars which the good people of 
the United States are forced to send to Washington each and 
every year after year. Only a percentage of this money goes 
back to actually educating children.
    But money is not the exclusive, nor even the primary 
problem with this bill. Rather, it is the faulty educational 
philosophy which needs to be addressed.

                             bill analysis

    There are four significant problems with the IDEA bill. 
First, education professionals have testified that it promotes 
a faulty educational ideology of inappropriate ``main 
streaming.'' Next, state officials have expressed concerns that 
the bill limits their rightful authority. Third, the bill would 
expand the power of federal education bureaucrats. Finally, 
this legislation paves the way for huge increases in federal 
outlays which have, to date, only proven detrimental to 
students. The following facts are given as supporting 
documentation to the issues just raised:
          (1) Disabled educational professionals oppose the 
        bill.--Albert Shanker, founder of the American 
        Federation of Teachers was a strong opponent of what 
        has for many years been known as ``main streaming.'' 
        Moreover, on May 10, 1994 the committee heard testimony 
        from Dr. Mary Wagner which pointed to the failure of 
        this approach. In fact, Dr. Wagner stated that the 
        approach amounted to ``sacrificing children to 
        ideology.''
          While Dr. Wagner's is the most damaging observation 
        which any education advocate has made about the 
        provisions of this bill, it is not the only one. 
        Although it has been reported that disabled advocates 
        support the legislation, an informal survey conducted 
        by my office, shows mixed results and only tepid 
        support among groups which say they favor the bill. 
        Other groups including the Down's Syndrome Congress and 
        the National Association of Private Schools for 
        Exceptional Children have expressed opposition.
          We have also received unsolicited phone calls and 
        mail from parents of disabled children and associations 
        representing the same. Many of these contacts have been 
        to express opposition to IDEA. A May 1 letter from 
        Carol Madison of the Illinois Center for Autism states, 
        ``The Federal Government should not indicate what 
        method each state should use to fund their special 
        education programs.'' That letter concludes, ``Please 
        do not let this happen to our children.''
          (2) State officials express concern about the erosion 
        of their authority.--Congress Daily has reported that 
        ``representatives of the National Governors Association 
        and state special education directors said * * * they 
        are concerned about some of the bill's provisions 
        limiting state expenditures.'' Later in that story it 
        is reported that ``states MUST maintain their current 
        level of funding'' (emphasis added). It also notes 
        significant concerns expressed by Myrna Mandlawitz of 
        the National Association of State Directors of Special 
        Education.
          (3) More power to the federal bureaucracy.--Again, 
        Congress Daily reports that the IDEA bill ``gives the 
        U.S. education secretary more authority to revoke 
        funding to states that do not reach the standards and 
        goals of the reformed IDEA.'' And, that it sets ``more 
        prescriptive national standards.'' Perhaps this is the 
        reason that the strongest advocate of nationalized 
        education, the National Education Association, is on 
        record in support of this bill.
          (4) Spending increases.--To hold out a ``carrot'' as 
        well as the ``stick'' of more strict federal standards, 
        this bill provides a huge increase of funding, from 
        three billion spent on the program this year to four 
        billion next year, a 33% increase. Over an eight-year 
        period this program portends to increase funding by 
        eight billion dollars per year.
    Examining the dismal record of federal education programs, 
we should cringe at the notion of this heightened federal role 
in disabilities education. As the federal government has spent 
more and more money on education, we have seen a continual 
decline in the results of students who take standardized tests 
such as the Scholastic Aptitude Test (SAT). This bill takes the 
same prescription for failure applied to other programs and 
imposes it upon disabled children. Is it because of callousness 
to their plight, ignorance of the facts, or fear of the special 
interests; that we are now willing to ``sacrifice (these) 
children to ideology?''

                         summary and conclusion

    First, this bill is opposed by a number of scholars, 
educational professionals and parents who work for disabilities 
education because its forced ``main stream'' would ``sacrifice 
children to ideology.'' These same people have pointed out that 
``The Federal Government should not dictate what method each 
state should use to fund their special education programs.'' We 
should heed these concerns.
    Next, this bill has raised concerns amongst the National 
Governors' Association and state special education directors 
because the bill would; ``limit (types) of state expenditures'' 
and force ``states (to) maintain their current level of funding 
for special education programs.'' We must listen to the input 
of state executives and education leaders rather than imposing 
mandates upon them.
    Further, those of us who are concerned about federal 
intrusion into the powers of state and local governments, are 
unhappy that the legislation gives ``the U.S. education 
secretary more authority to revoke funding to states that do 
not reach the standards and goals of the reformed IDEA.''
    Finally, this bill increases federal spending by eight 
billion dollars per year over the next eight years. This is a 
266% increase (33% per annum average). For those interested in 
placing proper limits on the federal education bureaucracy, 
this bill will have exactly the opposite effect.
    When I was first elected to Congress in 1976, this 
Department did not even exist. Now, my goal is to eliminate 
this department, release the bureaucrats and political 
appointees and thus guarantee that all these taxpayer dollars 
will never have to be sent to Washington. This will allow 
parents and communities to address the needs of the children in 
our states and our local communities. This is my vision of 
restoration to parents of the tools needed to raise and educate 
their children.
    My opposition to IDEA is not routed in disdain for its 
goals, or any reluctance to support parental efforts to educate 
their children. In fact, we should stop this failed experiment 
of federalizing our education system thus ensuring that more 
resources will be available to help disabled children, thus 
making results far superior to our current situation.
    Each child is a unique person. We must consider if it may 
be correct to assert that they will receive a better education 
without Washington's interference. Disabled children have 
special needs and our local communities are best equipped to 
accomplish these goals. If Congress gets Washington off their 
backs and out of the pocket books of parents, all our children 
will be better off.

                                                          Ron Paul.

                                
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