    [Senate Report 108-185]
    [From the U.S. Government Publishing Office]

                                                           Calendar No. 362
    108th Congress                                                   Report
                                     SENATE
     1st Session                                                    108-185

    ======================================================================

                  INDIVIDUALS WITH DISABILITIES EDUCATION ACT

                                    _______

                    November 3, 2003.--Ordered to be printed

                                    _______

        Mr. Gregg, from the Committee on Health, Education, Labor, and
                       Pensions, submitted the following

                                  R E P O R T

                             [To accompany S. 1248]

        The Committee on Health, Education, Labor, and Pensions, to
    which was referred the bill (S. 1248) to reauthorize the
    Individuals with Disabilities Education Act, and for other
    purposes, having considered the same, reports favorably thereon
    with an amendment and recommends that the bill (as amended) do
    pass.

                                    CONTENTS

                                                                       Page
      I. Introduction.....................................................1
     II. Purpose and summary..............................................2
    III. Background and need for legislation..............................2
     IV. Legislative history and committee action.........................4
      V. Explanation of bill and committee views..........................5
     VI. Cost estimate...................................................63
    VII. Regulatory impact statement.....................................63
    VIII.Application of law to the legislative branch....................64

     IX. Section-by-section analysis.....................................64
      X. Changes in existing law.........................................85

                                I. Introduction

        S. 1248 is the product of an extensive bipartisan effort
    among Senators on the committee, as well as significant input
    from parents of children with disabilities, children with
    disabilities, educators, the U.S. Department of Education, and
    other individuals interested in improving the quality of
    education for children with disabilities. What makes this
    legislation unique is that it was bipartisan in its inception.

                            II. Purpose and Summary

        In reporting S. 1248, the Individuals with Disabilities
    Education Improvement Act of 2003, the committee improves the
    Individuals with Disabilities Education Act (IDEA) through
    provisions that: (1) encourage informal and speedy resolution
    of problems, prevent misidentification of students, and reduce
    bureaucratic paperwork for teachers; (2) provide local fiscal
    relief through risk pools and allowing localities to use a
    percentage of IDEA funds in a flexible manner; (3) shift IDEA
    from a compliance-driven model to a performance-driven model;
    (4) make schools safer by providing greater clarity and
    flexibility in the law, as well as supporting approaches,
    including behavioral interventions, that prevent dangerous
    discipline problems; (5) provide increased resources to better
    train teachers and parents; (6) facilitate better transitioning
    for students with disabilities from school to post-secondary
    experiences; and (7) strengthen implementation of the law to
    ensure that every child with a disability receives a free
    appropriate public education (FAPE).

                    III. 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.
        In the 105th Congress, the ``Individuals with Disabilities
    Education Act Amendments of 1997,'' P.L. 105-17, was enacted
    into law. Amendments to the legislation were comprehensive in
    nature and addressed a wide range of legal and programmatic
    issues affecting early intervention and special education. The
    1997 law required that the individualized education program of
    each child with a disability relate programming for the child
    to achievement in the general education curriculum. Further,
    States had to establish performance goals and indicators for
    children with disabilities as well as include them in
    assessments. Schools were given specific statutory authority
    regarding discipline of students with disabilities, and new,
    but limited, authority was given to hearing officers to change
    the placement of children with disabilities. The law was
    clarified to ensure that children with disabilities were
    specifically entitled to special educational services, even if
    expelled from school. States were required to ensure that
    parents were offered mediation before going to a formal due
    process hearing over a dispute. The 1997 amendments also
    created new State and substate formulas in the grants to States
    and preschool programs, generally basing grant amounts on
    broader population factors rather than counts of children with
    disabilities served. When federal appropriations for the grants
    to States program exceed $4.1 billion and a school district
    received a larger award, the district would be permitted to
    reduce local spending on special education by a certain amount.
    The 14 discretionary grant programs were consolidated into two
    new special purpose programs. A third new special purpose
    program focuses on statewide special education reform.
        During this reauthorization of the Individuals with
    Disabilities Education Act, the committee believes it is
    crucial to concentrate on improving educational outcomes for
    children by focusing on accountability for results. The
    committee believes this can be accomplished by a number of
    means, including supporting teachers and other staff by
    providing high quality training and reducing paperwork burdens,
    encouraging more efficient and effective conflict resolution
    between parents and schools, providing earlier access to
    services and supports to children to reduce the need for IDEA
    services, and improving funding.
        In the 107th Congress, the Committee on Health, Education,
    Labor, and Pension held four hearings to solicit
    recommendations for the reauthorization of IDEA.
        On March 21, 2002, at a hearing entitled: ``IDEA: What's
    Good for Kids? What Works for Schools?'', the following
    individuals testified: Robert Pasternack, Assistant Secretary,
    Office of Special Education and Rehabilitative Services, U.S.
    Department of Education, Washington, DC; Lilliam Rangel-Diaz,
    Board of Directors, National Council on Disability, Washington,
    DC; Valarie Findley, Parent, Des Moines, Iowa; Bob Runkel,
    Montana State Director of Special Education, Helena, Montana;
    Bob Vaadeland, Superintendent, Minnewaska Area Schools,
    Glenwood, Minnesota; and Kim Ratcliffe, Director of Special
    Education of Columbia Public Schools, Columbia, Missouri.
        On April 25, 2002, at a hearing entitled: ``IDEA:
    Behavioral Supports in Schools,'' the following individuals
    testified: Sarah A. Flanagan, Falls Church,Virginia; Kathleen
    B. Boundy, J.D., Co-Director, Center for Law and Education,
    Boston, Massachusetts; George Sugai, Ph.D., Co-Director, Center
    on Positive Behavioral Interventions and Supports, University
    of Oregon; Marsha Weissman, Executive Director, Center for
    Community Alternatives, Inc., Syracuse, New York; and Dr.
    Ronnie M. Jackson, Superintendent, Dale County School District,
    Dale County, Alabama.
        On June 6, 2002, at a hearing entitled: ``Accountability
    and IDEA: What Happens When the Bus Doesn't Come Anymore?'',
    the following individuals testified: Marisa Brown, Parent,
    Vienna, Virginia; David W. Gordon, Superintendent, Elk Grove
    Unified School District, Elk Grove, California; Stan Shaw,
    Professor and Coordinator, Special Education Program,
    University of Connecticut, Storrs, Connecticut; Arlene
    Mayerson, Directing Attorney, Disability Rights Education
    Defense Fund, Inc., Berkeley, California; and Lawrence C.
    Gloeckler, Deputy Commissioner, Vocational and Educational
    Services for Individuals with Disabilities, New York State
    Education Department, Albany, New York.
        On July 9, 2002, the following individuals testified at a
    hearing on the President's Commission on Excellence in Special
    Education: Terry Branstad, Chairman, President's Commission on
    Excellence in Special Education, Washington, DC; Douglas Gill,
    Chair, Finance Task Force, President's Commission on Excellence
    in Special Education, Washington, DC; and Douglas Huntt, Chair,
    Transition Task Force, President's Commission on Excellence in
    Special Education, Washington, DC.
        In addition, between June 16 and 19, 2003, both majority
    and minority staff for the committee met with 83 groups to hear
    their concerns and recommendations regarding S. 1248.

         THE PRESIDENT'S COMMISSION ON EXCELLENCE IN SPECIAL EDUCATION

        The committee has also taken into consideration
    recommendations made by the President's Commission on
    Excellence in Special Education, released in July 2002. While
    the Commission report was filled with a number of more detailed
    recommendations, its three major recommendations were: (1)
    Focus on results--not on process; (2) Embrace a model of
    prevention, not a model of failure; and (3) Consider children
    with disabilities as general education children first.

              THE PRESIDENT'S PRINCIPLES FOR IDEA REAUTHORIZATION

        February 25, 2003, U.S. Secretary of Education Rod Paige
    released a set of principles to guide the Education Department
    in its work toward seeking reauthorization of the Individuals
    with Disabilities Education Act (IDEA). Those principles were:
    (1) Stronger accountability for results; (2) Simplify paperwork
    for States and communities and increase flexibility for all;
    (3) Focus on doing what works; and (4) Increase choices and
    meaningful involvement for parents.

                  IV. Legislative History and Committee Action

        The committee considered S. 1248 on June 25, 2003. Senator
    Gregg, Chairman of the Committee on Health, Education, Labor,
    and Pensions, and Senator Kennedy, the ranking member of the
    committee, offered one amendment in the nature of a substitute.
    Along with a number of smaller technical changes, there were
    five main differences between the substitute amendment and S.
    1248 as introduced.
        The first change added a new provision clarifying that
    there is no right of action based solely upon the failure of a
    State educational agency or local educational agency staff
    person to be highly qualified.
        The second change amended the discipline provisions of the
    bill. The substitute restored current law language describing
    instances of weapons possession, drug possession or
    solicitation, and definitions of ``illegal drug'' and
    ``controlled substance.'' The revised language also requires
    school districts to notify parents when a disciplinary action
    is contemplated. It states that when a child is removed from
    their current educational placement for disciplinary reasons, a
    school district must conduct a functional behavioral assessment
    if it has not previously done so. Finally, the substitute
    clarifies that a school may request a hearing to change a
    child's placement if it believes maintaining that placement is
    substantially likely to result in injury to the child or to
    others.
        The third major change in the substitute added a new
    provision permitting States to create a seamless system for
    infants, toddlers, and preschoolers with disabilities, giving
    parents the opportunity to choose to have their child continue
    early intervention services until the age of 5.
        Fourth, the substitute amendment established a commission
    to study, evaluate, and make appropriate recommendations to
    Congress and to the Secretary of Education on the issue of
    universal design and accessibility of curriculum and
    instructional materials for use by all children, with a
    particular emphasis on children with disabilities.
        The fifth major change in the substitute amendment added
    new provisions providing for a smooth transition of research
    activities from the Office of Special education to the
    Institute of Education Sciences.
        Final Action: The substitute amendment was adopted and the
    bill as amended was reported favorably by unanimous roll call
    vote of 21-0.

                   V. Explanation of Bill and Committee Views

        The purpose of the Individuals with Disabilities Education
    Improvement Act is to improve educational results for children
    with disabilities by:
              Providing a performance-driven framework for
            accountability to ensure that children with
            disabilities receive a free appropriate public
            education;
              Encouraging early informal resolution of problems,
            reducing misidentification of students, and limiting
            paperwork for teachers and other education personnel;
              Providing fiscal relief to school districts;
              Providing increased resources to better train
            teachers and parents;
              Providing better interagency support for post-
            secondary transition; and
              Strengthening effective enforcement of the law.
        Nearly 30 years ago, the Education for All Handicapped
    Children's Act was enacted to provide keys to the schoolhouse
    door for children with disabilities. Previously, many of these
    children did not have the opportunity to receive a public
    education in America's classrooms. Today the school house door
    is open. The committee's focus during this reauthorization is
    on the quality of education children are receiving under the
    law. The committee has sought to ensure that the framework of
    IDEA helps to produce improved educational results for children
    with disabilities.
        The committee affirms that States and school districts must
    be held accountable for complying with IDEA. However, many
    school representatives, policy analysts, and even some parents
    of children with disabilities believe that the current
    accountability provisions in the IDEA law focus more on
    measuring compliance with legal processes, rather than gauging
    student performance and results. Therefore, the committee has
    worked to make changes to the law which will focus compliance
    and enforcement efforts on student performance.
        The committee is concerned about the paperwork burden
    experienced by special education teachers. According to a
    recent study by the Council for Exceptional Children, a
    majority of special educators estimate that they spend a day or
    more each week on paperwork, and 83 percent report spending
    from half to one and a half days per week in IEP-related
    meetings. The committee has included a number of provisions
    that will reduce unnecessary paperwork and excessive meetings
    for both teachers and parents.
        The committee is discouraged to hear that many parents,
    teachers, and school officials find that some current IDEA
    provisions encourage an adversarial, rather than a cooperative,
    atmosphere, in regards to special education. In response, the
    committee has made changes to promote better cooperation and
    understanding between parents and schools, leading to better
    educational programs and related services for children with
    disabilities.
        The committee has also found that certain aspects of the
    law create an inflexibility which can discourage improved
    services for children, create hardships for parents, and hamper
    the effectiveness of teachers. Therefore, S. 1248 gives both
    parents and school personnel more flexibility to ensure that
    children with disabilities receive the appropriate educational
    and related services in a more expeditious manner.
        The committee is also aware of problems in appropriately
    identifying students for IDEA. S. 1248 targets services and
    teacher training in order to reduce the number of inappropriate
    identifications, as well as making accurate identifications in
    a more timelymanner. The legislation provides new opportunities
    to provide early intervening services for students who do not meet the
    definition of a child with a disability, but who need additional
    academic or behavioral support to succeed in a general education
    environment.
        Finally, the committee wants to emphasize that schools must
    be safe harbors for all children and classrooms must be
    conducive to learning. S. 1248 adds provisions to assist
    teachers and other educational personnel by supporting training
    to address behavioral issues, and clarifying rules for
    implementing disciplinary decisions. These provisions will help
    schools keep classrooms safer, while balancing the child's
    right to receive appropriate educational and related services
    under IDEA.

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

    Amendments to part A of the Individuals with Disabilities Education Act

                Definitions
        In section 602, the committee made a number of small
    revisions and additions to the definitions for the law. The
    definition of a child with a disability aged 3 through 9
    (section 602(3)(B)) is changed to make clear that a State has
    discretion to classify children as disabled due to a
    developmental delay any subset of children within the age range
    of 3 and 9, including ages 3 through 5. This change reflects
    the same policy in regulations (34 C.F.R. 300.313(a)(1)).
        The definition of ``core academic subject'' is added at
    section 602(4), and has the same meaning as that found in the
    Elementary and Secondary Education Act of 1965, which was
    reauthorized by the No Child Left Behind Act of 2001 (NCLB),
    P.L. 107-110. The definition was added in conjunction with the
    new definition of ``highly qualified'' in section 602(10).

                Highly qualified teachers
        S. 1248 includes a definition of ``highly qualified special
    education teacher'' which acknowledges that special education
    teachers' responsibilities vary widely. The committee is aware
    that many special education students may be provided
    instruction by individuals who are either untrained in working
    with children with a particular disability or individuals who
    lack appropriate content knowledge. Therefore, the committee
    intends that special education teachers have both content
    knowledge and training in special education instruction. The
    committee further recognizes that many children with
    disabilities are taught both by regular and special education
    teachers. As a result, the definition of a highly qualified
    special education teacher is designed to work in concert with
    the definition of a ``highly qualified'' regular education
    teacher in NCLB to ensure that the vast majority of special
    education students have access to a teacher who has
    demonstrated competence in the subject areas they are teaching.
    For example, S. 1248 stipulates that special education teachers
    who team-teach in a regular education classroom by adjusting
    the learning environment and modifying instructional methods
    must be licensed to teach special education, but do not have to
    be certified in other subject areas. It is the assumption of
    the committee that in such a classroom, the regular education
    teacher is highly qualified in the requisite subject areas, and
    therefore the child has access to instruction by a teacher who
    has demonstrated content knowledge. It is not the intent of the
    committee that consultation occur outside the classroom,
    thereby shortchanging a mainstreamed child with a disability of
    direct instruction by a teacher who has demonstrated individual
    subject mastery.
        S. 1248 makes it clear that this definition of highly
    qualified special education teacher is what should be applied
    to ``special education teacher'' when the issue of highly
    qualified teachers is mentioned in NCLB. For example, under S.
    1248, in carrying out NCLB's parental right to know language
    regarding teachers (sec. 1111(h)(6) of NCLB), school districts
    would use the definition of highly qualified special education
    teacher in S. 1248. The only exception is that NCLB's deadline
    by which all teachers have to be highly qualified was extended
    by one year for special education teachers, to the 2006-07
    school year. This one-year extension results from recognition
    of the shortage of special education teachers and the
    challenges of applying a new definition of a highly qualified
    teacher.
        S. 1248 adds a new definition for ``limited English
    proficient'' (section 602(17)), which is the same as that found
    under NCLB.
        S. 1248 amends both section 602(1) and section 602(25) to
    clarify that the definitions of ``assistive technology device''
    and ``related services'' do not include a medical device that
    is surgically implanted, or the post-surgical maintenance,
    programming, or replacement of such device, or an external
    device connected with the use of a surgically implanted medical
    device (other than the costs of performing routine maintenance
    and monitoring of such external device at the same time the
    child is receiving other services under the act).
        Recent cases around the country have shown that hearing
    officers and courts alike are unsure as to whether maintenance
    and programming of implanted medical devices are covered under
    IDEA. Many schools have argued that IDEA does not require
    coverage of these items, and that requiring such coverage will
    prove very costly to school districts.
        The committee acknowledges that we have only begun to see
    the future of implanted medical devices and other new
    technology to help children with disabilities. For example,
    some children with seizure disorders have implanted vagus nerve
    stimulators to help control seizures. Implanted electronic
    muscle stimulators can help children walk. However, the
    committee does not believe that surgically implanted medical
    devices and the costs associated with programming and
    maintaining them are items that should be covered under IDEA.
        The committee does believe, however, that schools should
    perform routine maintenance and monitoring of external devices
    connected with the use of a surgically implanted medical
    device. For example, school personnel should cover activities
    such as changing a battery in the external processor used in
    connection with a cochlear implant, ensuring that the processor
    is turned on, or performing other troubleshooting that may
    arise in regard to the proper functioning of the device while
    the child is at school. However, the committee does not intend
    that mapping a cochlear implant, or even costs associated with
    mapping, such as transportation costs and insurance copayments,
    be the responsibility of a school district.
        The committee clarifies the definition of ``related
    services'' (section 602(25)) by adding interpreting services,
    school health services, and travel training instruction to the
    list contained in current law. The committee intends that
    counseling services and other related services may be provided
    by marriage and family therapists, where appropriate, and to
    the extent authorized by State law. Finally, with respect to
    children who are deaf or hard of hearing, the term
    ``interpreting services'' includes, but is not limited to, oral
    transliteration services, cued language transliteration
    services, and sign language interpreting services.
        The definition of ``transition services'' (section 602(33))
    has been amended to emphasize a focus on improving the academic
    and functional achievement of a child with a disability.

                Policy letters and regulations
        Section 607 is revised significantly to reflect the
    committee's intent to implement the enacted law in an efficient
    and effective manner. The changes provide States, local
    educational agencies, and parents with the secure knowledge
    that once the law and implementing regulations are finalized
    there will not be significant changes in the way the law is
    interpreted or implemented without the opportunity to react to
    such changes.
        Section 607(a) consolidates language on regulations with
    section 617 of the current act to create a clear, concise
    section on the Department's authority to regulate under the
    act. This provision clearly expresses the committee's intent
    that the Secretary should regulate only where necessary to
    ensure compliance with the act. Further, section 607(b)
    prohibits the Secretary from issuing regulations that violate
    or contradict the provisions of the act. The committee
    encourages the Secretary to take a careful and deliberate
    approach to developing regulations.
        At the same time, the committee encourages the Secretary to
    expedite the regulatory process so that parents, teachers,
    school officials, and States can have a thorough and complete
    understanding of the law and regulations within one year of the
    date of enactment of the bill. The Department's long delay in
    issuing regulations under the 1997 act increased the challenges
    of implementation of the new law. While it is important to
    solicit public input on the implementing regulations, it is
    also equally important to keep the regulatory process from
    causing undue delay in finalizing regulations so that States
    and local educational agencies can begin to implement the
    reauthorized law in a timely manner. Section 607(c) requires
    the Secretary to allow public input for not more than 90 days
    on any regulations issued under this act.
        The committee feels that the Secretary should be
    particularly thoughtful in issuing policy letters, and
    therefore makes several changes to the requirements regarding
    policy letters. Section 607(d) requires the Secretary to
    subject policy letters that establish a rule of compliance to
    public comment requirements to ensure that there is adequate
    notice regarding the Department's interpretation of the act.
    Additionally, section 607(e) requires the Secretary to state
    that any particular policy letter is written in response to the
    specific facts presented. Finally, section 607(f) maintains the
    requirement that a list of the policy letters be published in
    the Federal Register on a quarterly basis to ensure that there
    is adequate public information about any interpretations of
    policy the Department issues.
        The committee recognizes the need for the Secretary to
    issue correspondence under the act for a variety of reasons;
    however, the committee is concerned that previous policy
    letters have been interpreted by States and local educational
    agencies to be binding upon them, even in unrelated situations
    or circumstances. The Secretary has the ability, through the
    regulatory process, to impose rules for complying with the act,
    and should not attempt to use policy letters to subvert the
    rulemaking process. This section does not prohibit or prevent
    the Secretary from issuing standard letters of communication
    regarding specific language in the bill or implementing
    regulations, but requires the Secretary to carefully delineate
    responses that go beyond a mere recitation of law or regulation
    to offering a policy interpretation. Any letter issued after
    the date of enactment of the Individuals With Disabilities
    Education Improvement Act that purports to offer an
    interpretation of policy is subject to the new requirements of
    the bill.

                State rulemaking
        Section 608 is a new section of the act regarding the
    efforts of States to establish their own rules and regulatory
    systems to ensure compliance with the act. The committee feels
    that there is a tremendous amount of confusion about the level
    of requirements under the act, and that it is often convenient
    to place responsibility for the burden of the requirements on
    the act or regulations. While the committee agrees that the act
    and regulations should be clear and concise, it is also clear
    that State and local educational agencies have added additional
    requirements for compliance with individual State laws
    regarding the education of children with disabilities. Through
    section 608(a), the committee is in no way attempting to reduce
    State input or State practice in this area, but intends to make
    clear what is a Federal obligation and what is a State or local
    educational agency requirement for compliance with the act.
    However, the committee does intend that States not use Federal
    funds to administer State-imposed requirements. Section 608(b)
    encourages States to maintain their focus on improving results
    for children with disabilities, rather than on process
    compliance, and to ensure that all State policies are designed
    to support the improved academic achievement of all students.
    Inaddition to the emphasis on academic achievement, the
    committee recognizes that for some children, functional improvement is
    also crucial.

                GAO Study on Paperwork Reduction
        The committee is very interested in reducing the paperwork
    burden on teachers, schools, local educational agencies, and
    States. To that end, a new section 609 calls for an independent
    review of Federal, State, and local requirements relating to
    the education of children with disabilities to determine which
    requirements are responsible for causing the paperwork burden.
    The bill calls on the Comptroller General to issue a
    comprehensive report regarding the paperwork requirements to
    enable Congress to determine what appropriate steps can be made
    to reduce that burden and enable teachers to spend more time in
    the classroom with children with disabilities.

    Amendments to part B of the Individuals With Disabilities Education Act

                Funding formula
        Section 611 sets out funding for States, outlying areas,
    freely associated States, local educational agencies, and the
    Secretary of the Interior for the education of children with
    disabilities living on reservations or enrolled in elementary
    or secondary schools for Indian children operated or funded by
    the Secretary of the Interior.
        During the last reauthorization of IDEA, Congress took
    important steps to decouple funding from the identification of
    students with disabilities to eliminate incentives for States
    to increase grants by overidentifying students for special
    education services. In establishing the permanent formula,
    Congress determined that States would receive a base amount of
    funding including a student-identification component but
    provided for all future funding after a base year (1999) to be
    calculated using a weighted growth factor based on changes in
    population (85 percent) and poverty (15 percent).
        However, because total funding levels for Part B were below
    the base year trigger and significantly below the cumulative
    maximum grant calculation for all the States during the last
    reauthorization of IDEA, the underlying formula for the maximum
    grant calculation and the issue of its modification to be
    consistent with the newly established permanent formula was not
    addressed. As a result, the maximum grant calculation is still
    based on the number of children with disabilities eligible for
    services. Thus, the incentive for States to overidentify is re-
    established under current law in the years leading up to and
    including the year(s) the maximum grant language is operative.
        The committee has addressed this problem in this
    reauthorization in section 611 by incorporating the population
    and poverty components of the permanent formula to establish
    the amount available to provide States with their maximum
    grants. By doing so, S. 1248 immediately addresses the issue of
    overidentification by locking in place each State's identified
    number of children with disabilities who were eligible in the
    2002-03 school year--a number, and proportion of the total
    school-aged population that cannot be altered. Moving forward,
    S. 1248 calculates the amount needed to fund each State's
    maximum grant based on the number of eligible children
    nationwide in 2002-03 and updates this amount using the
    identical census and poverty factors in the permanent formula
    and the inflation-adjusted average per pupil expenditure. In
    this way, the committee intends to remove any fiscal incentive
    to overidentify in years leading up to and including years in
    which Congress provides the maximum grants.
        Section 611(b) provides for continued support to the
    outlying areas and to provide each freely associated State that
    meets relevant requirements a grant equal to the amount it
    received under this part in FY 2003. As opposed to P.L. 105-17
    that included a sunset provision for the eligibility of the
    freely associated States, the committee intends that freely
    associated States continue to remain eligible for funding--at
    the FY 2003 level--in order to provide continued assistance in
    serving their children with disabilities.
        In 1999, Congress appropriated an amount to trigger the
    permanent formula established under P.L. 105-17 for allocating
    funds among the States. Because the permanent formula is now
    operative and the interim formula is no longer needed, S. 1248
    repeals the language differentiating between an interim and
    permanent formula.

                State level activities
        The committee has restructured the calculation for
    determining the amount that States may use for State
    administration and other activities. State reserves for
    administration are limited to the greater of the amount
    reserved for FY2003 or $800,000 increased by inflation for
    subsequent years. By so doing, the small State minimum has been
    increased from $500,000 to $800,000. State reserves for other
    State-level activities are linked to percentages of the overall
    grant (less amounts reserved for State administration) for
    FY2004 and FY2005, with reserves thereafter through FY2009
    increased by inflation. With the anticipated increases in
    federal funding for IDEA, the committee believes that this
    amount will provide States with sufficient resources to
    administer the program.
        As opposed to P.L. 105-17, which listed a set of required
    activities which States must undertake, S. 1248 creates two
    types of State activities: required and optional. The committee
    retains the establishment of mediation system as a required
    activity, as well as monitoring and complaint investigation,
    but adds enforcement to this list. In addition, States must
    also use a portion of State activity funds to support the State
    protection and advocacy system to advise and assist parents in
    the areas of dispute resolution and due process, voluntary
    mediation, and the opportunity to resolve complaints. The
    committee intends that nothing would prohibit the State
    protection and advocacy system from using the funds it receives
    under this subsection to subcontract with another not-for-
    profit legal organization that has legal expertise in special
    education advocacy and representation.
        States may also direct funds toward a variety of optional
    activities according to the needs in their State, including:
    support and direct services, paperwork reduction,
    positivebehavioral interventions and supports and mental health
    services, technology, transition programs, meeting personnel shortages,
    capacity building, alternate programming for those expelled from
    school, and the development of appropriate accommodations and alternate
    assessments for children with disabilities.

                Risk Pool
        The bill requires States to reserve 2 percent of Part B
    funds (less the amount reserved for State administration) to
    establish a risk pool fund to assist school districts in
    serving high-need children with disabilities or unanticipated
    special education costs. The risk pool fund will be
    particularly beneficial for small school districts, rural
    school districts and charter schools. For example, all States
    will now reserve funds to assist a school district that
    educates a severely disabled child at cost of $100,000, or a
    small school district that unexpectedly enrolls multiple
    children with disabilities.
        The committee recognizes that States currently
    administering risk pool programs share many of the principles
    of the model prescribed and should be allowed to continue these
    successful programs. However, it is important that these
    reimbursement or cost-sharing policies not override educational
    and placement decisions best made by a student's IEP team.
    Accordingly, the term ``placement neutral'' in this section is
    intended to ensure that policies for placement settings of
    high-need students do not favor public, non public or out-of-
    district placements; rather, children should be receiving the
    services to which they are entitled in the setting that is
    consistent with their IEP. To ensure that each public agency is
    meeting its responsibility to children with disabilities, the
    committee added language to clarify that the risk pool funds
    shall not be used to pay costs that otherwise are reimbursable
    as medical assistance for a child with a disability under a
    State Medicaid program.

                Payor of Last Resort
        In order to clarify existing uncertainty regarding public
    agencies' obligations and responsibilities of ensuring
    provision of, and ultimate financial responsibility for,
    services within a State, the committee has made expenditure of
    administrative funds by a State under section 611 contingent
    upon a State's certification that the agreements to establish
    these responsibilities within a State are current.
        The committee further clarifies in section 612 of part B
    and section 640 of part C that if there are instances when a
    public agency initially fails to provide or pay for the special
    education and related services but is required to do so under a
    State's current system of arrangements, the local educational
    agency that did so is authorized to claim reimbursement. The
    committee intends that the public agency which failed to
    provide or pay for such services pursuant to the current
    agreement be required to meet its financial responsibility.

                Subgrants to local educational agencies
        The committee added language to the section on subgrants to
    local educational agencies to clarify that public charter
    schools that operate as local educational agencies (LEAs) are
    entitled to these subgrants, the same as any other LEA. The
    committee has also removed obsolete and outdated language,
    including references to Chapter 1 State agencies.

                State Eligibility
        Section 612 establishes the conditions of State eligibility
    for part B funds. The committee believes strongly that States
    should be held accountable for complying with the federal IDEA
    law, so that students with disabilities receive the education
    and services they need to succeed and become educated and
    productive citizens when they leave high school.
        A recent study by the National Council on Disability found
    that every State and the District of Columbia is out of
    compliance with IDEA requirements. This has raised the question
    of whether the statute and regulations make it impossible for
    any State to be in full compliance. The committee believes that
    States and school districts want to assist children with
    disabilities in achieving high educational outcomes and
    functional performance and recognizes that some of the
    requirements that States must meet focus too much on process
    and not enough on student progress.
        One example of process compliance within the 1997 law is
    the requirement in section 612(a) for States to submit a State
    plan that ``demonstrates to the satisfaction'' of the Secretary
    that the State has in effect policies and procedures to ensure
    that it has met the enumerated conditions of the law. The
    Secretary has interpreted this provision to require States to
    submit thousands of pages of documents pursuant to an 813-point
    procedural checklist furnished by the Department of Education.
    This includes having to send the Department copies of each
    State statute, court order, State Attorney General opinion, and
    other State documents that verify the source of the State's
    policy relating to a free appropriate public education. This
    diverts the focus away from the goal of the law: improved
    educational results for children with disabilities.
        Therefore, the committee has amended section 612(a) to now
    require that States must merely ``provide assurances'' that
    they have the appropriate policies and procedures in place to
    ensure that they have met the law's requirements. The committee
    hopes that this change in the law will encourage both the
    Secretary and the States to spend more time and effort on
    achieving successful outcomes by students. The committee still
    expects States to meet the law's requirements, even though
    States are relieved of the burden of creating a paper trail to
    prove compliance. The committee expects that, if the Secretary
    receives information indicating that a State has provided false
    assurances or is not fulfilling its assurances, the Secretary
    shall disapprove the State plan and take immediate corrective
    action.

                Least Restrictive Environment
        The committee is concerned that some States continue to use
    funding mechanisms that create financial incentives for, and
    disincentives against, certain placements forstudents with
    disabilities. Mechanisms that tie funding to educational settings
    undermine the IEP Team's responsibility to make placement decisions
    based upon the individual needs of a child. To address this issue, new
    provisions in section 612(a)(5)(B) prohibit States from having funding
    mechanisms that distribute funds based upon of the type of setting in
    which a child is served, and requires that States revise such policies
    or procedures that are currently in effect.

                Foreign adopted children
        The committee has heard of a number of instances in which
    parents with adopted foreign born children have felt as if
    school districts have not provided appropriate evaluation
    procedures for children suspected of having a disability. For
    example, these children have been asked to take tests in their
    native language, long after they have begun using English as a
    primary language. In addition, school personnel often require
    foreign born children to wait long periods of time before going
    through the IDEA evaluation process on the mistaken assumption
    that the child is not familiar enough with English to receive
    an appropriate evaluation. The committee encourages States to
    consider the needs of foreign born children as a part of its
    obligation in section 612(a)(6) to ensure that testing and
    evaluation materials and procedures utilized for the purposes
    of evaluation and placement of children with disabilities be
    selected and administered so as not to be culturally
    discriminatory.

                Transition from part C to preschool programs
        No changes were made to section 612(a)(9), which requires
    States to have policies and procedures in place to ensure
    smooth and effective transitions for children with disabilities
    and their families from the Part C infants and toddlers program
    to the preschool program. Although no changes were made to this
    section, the committee would like to highlight a new option
    provided for under Part C of the bill that would authorize
    States to create a seamless system for infants, toddlers and
    preschoolers with disabilities, giving parents the opportunity
    to continue services with the provider of their choice. This
    provision is more fully discussed in the section of the report
    that covers Part C.

                Private school students
        Section 612(a)(10) includes a number of changes with regard
    to provisions that impact parentally-placed private school
    children with disabilities. The intent of these changes is to
    clarify the responsibilities of LEAs to ensure that services to
    these children are provided in a fair and equitable manner.
    Many of the changes reflect current policy enumerated either in
    existing IDEA regulations or the No Child Left Behind Act.
        First, the bill clarifies that the proportional amount of
    money obliged to serve these children must be used to provide
    some direct services. The bill specifically states that to the
    extent practicable, the LEA shall provide direct services to
    children with disabilities in private schools. It is the
    committee's intent that school districts place a greater
    emphasis on services provided directly to such children--like
    specifically designed instructional activities and related
    services--rather than devoting funds solely to indirect
    services such as professional development for private school
    personnel.
        Second, the bill not only stresses the importance of direct
    services for these children, but it also contains several
    provisions designed to ensure that the proportional amount
    dedicated to serving children in private schools is accurate.
    Under the bill, an LEA must provide data on the number of
    students evaluated and found to have a disability and served
    under this part. Such requirements help to ensure that these
    funds are serving their intended purpose. The bill specifies
    that child find, the mechanism used by LEAs to generate funds
    to serve children who are parentally placed in private schools,
    is conducted in a comparable time period as for other students
    attending public schools. The bill clarifies that the cost of
    child find, including individual evaluations, may not be
    considered in meeting the LEA's proportional obligation.
        The bill also requires LEAs to consult with private school
    officials on the child find process, determination of
    proportional share of federal funds, provision of services,
    alternative delivery mechanisms and third party providers. A
    sign-off is required from private school officials to document
    that the consultation process was carried out. If private
    school officials believe the consultation process was not
    followed, they have a right to appeal to the State Education
    Agency. Both the consultative and appeals process are very
    similar to provisions in NCLB; therefore, the committee does
    not believe including these provisions places an undue burden
    on LEAs.
        Finally, in an effort to streamline and simplify the
    provision of services to parentally-placed private school
    children with disabilities, the bill stipulates that the LEA in
    which the private school is located is responsible for ensuring
    equitable services. This stipulation protects LEAs from having
    to work with private schools located in multiple jurisdictions
    when students attend private schools across district lines.

                Children in out-of-State or out-of-district residential
                        treatment or special education schools
        The committee has heard that there is often confusion
    regarding which public agency has the obligation to pay for
    children with disabilities who are placed by public agencies in
    residential treatment or special education schools that are
    out-of-local educational agency or out-of-State. Many of these
    children have multiple and complicated problems, and often are
    victims of severe neglect, sexual and physical abuse, violence,
    and abandonment. These children may be in the foster care
    system or parental rights may have been terminated with the
    State becoming the legal guardian. Under IDEA, when such
    children are placed by public agencies, the State is
    responsible for determining which agency is responsible for
    paying for educational and related services for these children.
    The committee encourages States to clarify agency financial
    obligations and responsibilities in these situations, and to
    make information about those obligations and responsibilities
    available to school districts and parents of children with
    disabilities.

                Obligations related to and methods of ensuring services
        In order to clarify existing uncertainty regarding public
    agencies' obligations and responsibilities of ensuring
    provision of, and ultimate financial responsibility for,
    services within a State, the committee has made expenditure of
    administrative funds by a State under section 611 contingent
    upon a State's certification that the agreements to establish
    these responsibilities within a State are current.
        The committee further clarifies in section 612(a)(12) that
    if there are instances when a public agency initially fails to
    provide or pay for the special education and related services
    but is required to do so under a State's current system of
    arrangements, the local educational agency that did so is
    authorized to claim reimbursement. The committee intends that
    the public agency which failed to provide or pay for such
    services pursuant to the current agreement be required to meet
    its financial responsibility.

                Personnel standards (612(a)(14))
        Given the emphasis on improving the quality of personnel in
    both the No Child Left Behind Act and this Act, the bill
    stipulates that States must adopt a policy that requires local
    educational agencies to take measurable steps to recruit, hire,
    and retain highly qualified personnel. With regard to teachers,
    the bill requires that all special education teachers teaching
    in an elementary, middle or secondary school be highly
    qualified no later than the end of the 2006-07 school year.
        The committee eliminated Section 612(a)(14) of the 1997
    law, which requires States to develop a comprehensive system of
    personnel development. The committee is not convinced that the
    current requirement has provided any added value to State
    efforts to secure an adequate supply of qualified personnel.
    The committee believes the provision in NCLB that requires
    States to develop a plan to ensure that all teachers, including
    special education teachers, be highly qualified by a date
    certain, coupled with the aforementioned requirement for LEAs
    to take measurable steps to both recruit and retain high
    qualified personnel will have a greater impact on increasing
    the number of highly qualified personnel. Finally, the
    committee believes changing the State Improvement Grant program
    to the State Personnel Preparation and Professional Development
    Grant program in Part D will also have a significant impact on
    ensuring that children have access to highly qualified
    personnel. Part D requires not only that the State identify and
    address the State and local needs for the preparation of
    personnel serving children with disabilities, but also that all
    money provided for under this grant program be spent
    exclusively on efforts to recruit, train and retain highly
    qualified personnel, especially teachers.
        While the committee is interested in securing a high
    quality workforce to provide services to children with
    disabilities under IDEA, it recognizes the personnel shortages
    and constraints faced by States and school districts in
    addressing those shortages. The committee urges the U.S.
    Department of Education to work with States to assist school
    districts in implementing strategies to improve the recruitment
    of and retention of fully qualified personnel in fields where
    such shortages exist.
        The bill mandates that standards governing the
    qualifications of related service personnel be consistent with
    any State-approved or State-recognized certification or
    licensing or other comparable requirement that applies to the
    specific professional discipline of related service providers.
    The bill further stipulates that the State must ensure that
    related service personnel serving children with disabilities
    have not had their certification or licensure requirements
    waived on an emergency, temporary or provisional basis.
        Finally, Section 612(a)(14)(E) makes clear that,
    notwithstanding any other individual right of action that a
    parent or student may maintain under this part, nothing in this
    subsection shall be construed to create a right of action on
    behalf of an individual student for the failure of a particular
    SEA or LEA staff person to be highly qualified. Further,
    nothing in the subsection prevents a parent from filing a State
    complaint regarding staff qualifications with the SEA, as
    provided for under the IDEA regulations (34 C.F.R. 300.660-662)
    and under 20 U.S.C. 1221e-3.

                Academic achievement and functional performance of children
                        with disabilities
        S. 1248 makes a series of significant modifications to
    reflect the important changes to accountability that were
    enacted under the No Child Left Behind Act. NCLB established a
    rigorous accountability system for States and local educational
    agencies to ensure that all children, including children with
    disabilities, are held to high academic achievement standards
    and that States and local educational agencies are held
    accountable for the adequate yearly progress of all students.
    Most importantly, NCLB requires schools and local educational
    agencies to disaggregate their data to examine the results of
    children with disabilities and ensure that such subgroup is
    making adequate yearly progress towards reaching proficiency.
    The bill carefully aligns the IDEA with the accountability
    system established under NCLB to ensure that there is one
    unified system of accountability for States, local educational
    agencies, and schools. The committee also recognizes that
    functional performance is critical for many children with
    disabilities in order to improve educational outcomes.

                Performance goals and indicators (section 612(a)(15))
        Section 612(a)(15) maintains the requirement that States
    must establish performance goals and indicators for children
    with disabilities, but revises the language to align with
    provisions of NCLB involving adequate yearly progress. Since
    NCLB already established a system to measure the educational
    results for all children, including children with disabilities,
    the committee believes that any goals for the performance of
    children with disabilities should be the same as the State
    definition of adequately yearly progress, which include the
    State's objectives for progress by children with disabilities
    as provided for under NCLB. The section maintains the current
    law requirement that the performance goals should address
    graduation and drop-out rates, in addition to the goals
    established by the State for children with disabilities under
    section 1111(b) of the Elementary and Secondary Education Act,
    as amended by NCLB.

                Participation in assessments (section 612(a)(16))
        Given the emphasis on accountability and academic
    achievement in NCLB and this Act, appropriately assessing
    students with disabilities is essential. The 1997 amendments to
    this Act required that students with disabilities be included
    in State and districtwide assessment programs and
    accountability systems. Students could take assessments with or
    without accommodations, and alternate assessments were required
    to be provided for students with significant disabilities who
    are unable to be included in assessment programs, even with
    accommodations. The committee considers accountability for the
    progress of students with significant disabilities to be
    extremely important. Consequently, section 612(a)(16) requires
    that alternate assessments be a part of, not separate from,
    State and districtwide assessment programs and accountability
    systems.
        The decision of whether a child should take a regular
    assessment with or without accommodations, or to take an
    alternate assessment is guided by two factors: State or
    district guidelines regarding accommodations and assessments,
    and by the IEP team.
        The committee recognizes that, for some students with
    significant disabilities, measuring achievement, especially
    academic achievement, can be challenging. There are some
    students for whom the curriculum focuses on functional skills
    that cannot be easily translated into core academic content
    such as reading or math. However, adapted curricula can be
    aligned with State standards and the progress of these students
    still can be measured through assessments. To ensure greater
    accountability for these students, the bill contains new
    requirements for the development and administration of
    alternate assessments that are aligned with the State's
    academic content and achievement standards, or for the
    development of alternate standards for those children with
    significant cognitive disabilities.
        The committee believes that accountability for the progress
    of students with disabilities requires the use of assessments
    that are valid, reliable, and accessible for the widest range
    of students and abilities. Therefore, S.1248 requires, to the
    extent feasible, that States and local educational agencies
    develop and use universally designed assessments.

                Instructional materials for blind and print-disabled
                        students
        The committee is concerned that many blind or print-
    disabled students are regularly denied timely access to
    instructional materials. Currently, instructional materials
    needed in specialized formats such as Braille, synthesized
    speech, and digital text, are often not provided to the
    students who require them. The committee feels strongly that
    instructional materials should be provided to blind and print-
    disabled students at the same time their fellow students
    without print disabilities are receiving the same materials.
    The committee convened a hearing on this issue in the 107th
    Congress at which it heard from both students and educators who
    have witnessed firsthand the great difficulties facing those
    who are blind or print-disabled and experiencing delays in
    receiving their instructional materials.
        Presently, many States require instructional materials in
    diverse electronic file formats, making it difficult for
    educational agencies to obtain required textbooks from
    publishers in the form suitable for use in reproducing the
    material in the required specialized format. Frequently
    required file formats (e.g., ASCII) are often ill-suited for
    the needs of those who actually use the publisher-provided
    files (pursuant to a special exemption in the Federal Copyright
    Act) to reproduce and distribute copies of the required
    instructional materials in the needed specialized formats for
    blind and print-disables students.
        In order to ensure the timely provision of instructional
    materials for blind and print-disabled students, the bill
    creates a new section, sec. 675, Accessibility of instructional
    materials, that would require the Secretary, not later than 180
    days after enactment, to promulgate an ``Instructional
    Materials Accessibility Standard'' to be used by publishers in
    the preparation of electronic files for reproducing print
    instructional materials in specialized formats. A National File
    Format Initiative funded by the Office of Special Education
    Programs (OSEP) is now finalizing recommendations about such a
    standard, and the committee anticipates that this effort will
    inform the Secretary's rule making by developing a format
    requirement that will be more convenient for the publishers who
    must produce the electronic files and the people who use them
    to reproduce the content of the print instructional materials
    in needed specialized formats.
        Sections 612(a)(22) and 613(a)(6) of the bill call for
    State and local educational agencies to adopt the Instructional
    Materials Accessibility Standard in a timely manner after it is
    published in the Federal Register, so that not later than two
    years after the date of enactment any purchase agreement for
    print instructional materials (as defined in the provision)
    will require the publisher of the materials to apply that
    standard when providing electronic files to be used in
    reproducing the instructional materials in specialized formats
    for students with print disabilities. The committee has
    provided the two-year transition period for actually applying
    the standard in the production of the required electronic files
    in order to meet the adaptation needs of the publishers who
    must provide the files and the authorized entities who actually
    use the files to convert the printed instructional materials
    into specialized formats.
        The committee feels that a central repository, providing
    for the collection and dissemination of instructional materials
    in the formats required for their suitable translation for use
    by blind and print-disabled students, is essential to ensure
    their timely availability. To serve this need, the bill
    includes a provision in section 675 establishing the National
    Instructional Materials Access Center. The Center would serve
    to facilitate the collection and dissemination of instructional
    materials for blind and print-disabled students by requiring
    publishers ``on or before delivery of the print instructional
    materials,'' to provide a copy to the Center, so whenever the
    file is needed, it is readily available. The Center will
    additionally provide a single point of contact for any entity
    authorized to have access to the electronic file. The committee
    feels, that taken together,these two factors will significantly
    reduce the time required for the procurement and distribution of
    instructional materials in the format suitable for use by blind and
    print-disabled individuals.

                Local educational agency eligibility
        The majority of section 613 relates to local eligibility
    requirements under part B. Similar to section 612(a) for State
    plans, the bill amends section 613(a) to require that local
    educational agencies must ``provide assurances'' rather than
    ``demonstrate to the satisfaction'' of the State that they have
    the appropriate policies and procedures in place to ensure that
    they have met the law's requirements. While the committee has
    expressed its concern that the current federal IDEA law has
    overemphasized paperwork compliance, the committee is also
    concerned that States have engaged in similar practices with
    local educational agencies. The committee wants to encourage
    both the States and local educational agencies to spend more
    time and efforts on successful outcomes by students. The
    committee still expects local educational agencies to meet the
    law's requirements, even though they are relieved of the burden
    of creating a paper trail to prove compliance. The committee
    expects that, if a State receives information indicating that a
    school district has provided false assurances or is not
    fulfilling its assurances, the State shall disapprove the
    district's plan and take corrective action.

                Local flexibility
        The committee recognizes that because the Federal
    Government has not met its commitment to provide 40 percent of
    the estimated additional costs of serving children with
    disabilities, local and State educational agencies have paid
    more than their share of these costs for over 25 years. In
    addition, because the local funds flexibility provision in
    current law is limited to a fraction of new funding and
    available only on a year-to-year basis, few school districts
    have been able to utilize the flexibility option to dampen the
    fiscal effect of covering a portion of the Federal Government's
    share of the costs of Part B.
        To make the local funds flexibility more meaningful to the
    agencies that are covering the direct costs of providing
    services to children with disabilities, the committee amends
    section 613(a)(2)(C) to allow local school districts to use up
    to 8 percent of the federal funds they receive under Part B as
    local funds, and up to 25 percent as local funds once full
    funding is achieved. The committee believes that because this
    flexibility is no longer linked to new funding it provides a
    more tangible opportunity for school districts to utilize the
    flexibility and better align funding among programs based on
    local priorities, including financing strategies to increase
    reimbursement from Medicaid for eligible services.

                Personnel development (section 613(a)(3))
        The bill is amended to state that a local educational
    agency must ensure that personnel development activities
    connected with this expenditure must be consistent with the
    bill's requirements in section 612(a)(14), as well as personnel
    provisions under NCLB.

                Permissive use of funds (613(a)(4))
        S. 1248 revises the list of allowable uses that a local
    educational agency may undertake with its Part B funds: they
    may be used for early intervening educational services
    (described below), as well as for administrative case
    management. The committee recognizes that one area creating
    paperwork for teachers and related services personnel is the
    lack of technology for recordkeeping, data collection, and
    related case management activities. The bill makes clear that
    local educational agencies may use funds for technology to
    assist personnel in this area.

                Charter schools
        The bill makes two key changes to section 613(a)(5)
    regarding the treatment of charter schools that are public
    schools of the local educational agency (LEA). Current law
    includes provisions to ensure that charter schools are treated
    equitably both in the distribution of funds and the provision
    of services. Both changes are consistent with current law and
    are intended to further assist both the charter schools and the
    LEA in better serving children with disabilities that attend
    charter schools.
        First, with regard to the distribution of IDEA funds to
    charter schools, the committee strengthens current law which
    requires that LEAs provide funds to charter schools on the same
    basis as they provide funds to other public schools. Given the
    unique nature, enrollment practices, and size of charter
    schools, the committee recognizes that LEAs should have the
    authority to distribute IDEA funds to charter schools based on
    relative enrollment and proportional distribution.
        Second, on the issue of providing services, the bill
    clarifies that the LEA shall provide supplemental and related
    services on site at the charter school to the same extent the
    LEA has a policy or practice of providing such services on site
    to its other public schools. The intent of this language is to
    ensure that parents who choose to send their child with a
    disability to a charter school are not unduly burdened to go
    off site to receive services for their child. The committee
    believes that to the extent that an LEA provides on site
    services to students with disabilities enrolled in traditional
    public schools they should provide on site services at charter
    schools so as not to unfairly disadvantage and inconvenience
    parents of children with disabilities enrolled in charter
    schools.
        The aforementioned provisions are designed to assist
    charter schools that are public schools of the LEA. Some
    charter schools are independent of the LEA; they are in fact
    recognized by the State and considered their own LEA. As these
    charter schools are significantly smaller than most LEAs they
    are more exposed to varying and unforeseen costs than most
    traditional LEAs.
        Although the committee believes that the risk pool
    described earlier will be beneficial to many LEAs, the
    committee believes the risk pool will be especially helpfulin
    ensuring that charters schools treated as separate LEAs receive
    additional resources to serve children with disabilities.

                Records regarding migratory children with disabilities
                        (613(a)(9))
        S. 1248 adds a new provision, section 613(a)(9), requiring
    local educational agencies to cooperate in the Secretary's
    efforts under NCLB to ensure the linkage of records pertaining
    to migratory children with a disability for the purpose of
    electronically exchanging, among the States, health and
    educational information regarding such children.

                Early intervening services (section 613(f))
        The committee is greatly concerned that too many children
    are being identified as needing special education and related
    services, and has sought approaches to help prevent students
    from being inappropriately identified for services under IDEA.
    Research shows that with appropriate, early regular education
    interventions, many children can learn to perform effectively
    in the regular education environment without the need for
    special education services. These procedures also have the
    promise of reducing the amount or intensity of services needed
    for children who ultimately do get appropriately referred for
    special education. For example, both the President's Commission
    on Excellence in Special Education and the National Research
    Council's report on minority students in special education
    cited with approval to the results of large scale clinical
    trials indicating that early intervention on reading skills in
    conjunction with positive behavior programs resulted in
    improved academic achievement and reduction in behavioral
    difficulties in high-risk, predominantly minority children.
    Research supported by OSEP on addressing behavioral and
    emotional problems in schools also indicates that universal
    screening can greatly assist in early identification of
    children at risk for these problems and that more significant
    behavioral problems and emotional disabilities can be
    significantly reduced through classroom-based approaches
    involving positive behavioral interventions and classroom
    management techniques. Other evidence shows that when schools
    make available services, such as mental health services, not
    normally available in schools, to at-risk children the number
    of special education referrals can be reduced.
        Therefore, the committee believes that it makes sense to
    give school districts flexibility to use up to 15 percent of
    their IDEA funds to develop and implement coordinated, early
    intervening educational services for students who are not
    receiving special education services but who require additional
    academic and behavioral support to succeed in a regular
    education environment, and who may be likely referrals to
    special education programs and services at a later time. These
    activities have the promise of benefiting both the regular
    education environment and the special education program by
    reducing academic and behavioral problems in the regular
    education environment and the number of referrals for special
    education and the intensity of special education services
    required for some students.
        Section 613(f) of the act would be revised to authorize
    such use of IDEA funds, in combination with other non-special
    education funds, to develop and implement coordinated, early
    intervening educational support services that include
    activities such as professional development for teachers and
    other school staff so that they can deliver scientifically-
    based academic and behavioral interventions; providing
    educational and behavioral evaluations, services and supports,
    including scientifically-based literacy instruction; and
    developing and implementing interagency financing strategies
    for the provision of those evaluations, services and supports.
    An example of innovative early intervening services may include
    programs that develop children's cognitive and perceptual
    abilities.
        It has come to the committee's attention that many children
    struggle in school as a result of trauma and the effects of
    traumatic events. The committee encourages local educational
    agencies to respond to the needs of these children through
    early intervening programs established in this section.
        The committee does not intend for early intervening to
    prevent or delay a student from receiving an evaluation to
    determine the presence of a disability and the need for special
    education and related services. The committee encourages local
    educational agencies to develop a systematic process by which
    they determine whether or not a student receiving early
    intervention services should be subsequently referred for an
    evaluation.
        Use of IDEA funds for activities authorized under this
    provision would not violate excess costs, commingling, or
    supplement not supplant requirements of the act. Students who
    participate in receiving these services would not be entitled
    to a free appropriate public education under the act, however,
    unless they were found eligible for services as a ``child with
    a disability'' as defined by section 602(3) of the act.
    Finally, school districts may use funds available under this
    subsection to carry out a coordinated, early intervention
    educational support services that are also funded under NCLB,
    as long as the IDEA funds are used to supplement and not
    supplant NCLB funds for the activities and services assisted
    under the coordinated, comprehensive, educational support
    system.

                Elimination of School-Based Improvement Plan (section
                        613(g))
        S. 1248 eliminates the authority in current section 613(g)
    for a School-Based Improvement Plan, because this provision has
    not been effective. Schools can undertake school improvement
    activities and realize improved educational and transitional
    results for children with disabilities without incurring the
    additional administrative and paperwork burdens required under
    this authority.

                State agency flexibility (section 613(j))
        The committee recognizes that certain State educational
    agencies pay all or a significant portion of the non-Federal
    share of costs of direct services to special education
    students. These State agencies are essentially like other local
    educational agencies that provide direct services; they have
    paid more than their share of these costs for over 25 years
    because the Federal Government has not met its commitment to
    provide 40 percent of the estimated additional costs of serving
    children with disabilities. Accordingly, section 613(j)
    authorizes the small number of States that pay 80 percent or
    more of the non-Federal special education costs to treat
    portions of Federal funds as general funds tosupport
    educational purposes described in NCLB and for other education-related
    purposes.

                Evaluations, eligibility determinations, IEPs, and
                        placements
        The committee has added a new provision (section
    614(a)(1)(B)) clarifying that a parent, a State educational
    agency, other State agency, or local educational agency has a
    right to request an initial evaluation to determine whether a
    child qualifies for IDEA services. While current IDEA law
    already allows parents to request evaluations, the committee
    wants to ensure that parents are aware of this right. The
    committee does not intend to alter the ability of teachers or
    other personnel of LEAs to initiate requests for evaluations of
    their students.
        The committee believes that it is important that children
    are evaluated in a timely manner. Therefore, S. 1248 contains a
    timeline in which a local educational agency must conduct an
    evaluation. Under section 614(a)(1)(C), the eligibility
    determination must be completed within 60 days after parental
    consent is given for the initial evaluation, or, if the State
    has instituted a timeframe for completing evaluations, within
    the time imposed by State law. The committee also feels that
    this provision will discourage a local educational agency from
    unnecessarily delaying an evaluation in cases where a child is
    receiving early intervening services under section 613(f).

                Parental consent
        There are cases in which a parent may refuse to consent to
    their child's receipt of special education and related services
    offered by the local educational agency once it has been
    determined that the child is a child with a disability. In this
    situation, section 614(a)(1)(D)(iii) states that a local
    educational agency does not violate the FAPE requirement by
    failing to provide the special education and related services
    refused by the parent on behalf of the child. However, the
    committee expects that, in such a case, the local educational
    agency must make every reasonable effort to obtain consent from
    the parent. Further, the local educational agency has an
    obligation to provide FAPE to the child if the parent provides
    consent at a future time or under a new circumstance.

                Reevaluations
        In the interest of parents, children, and school districts,
    the committee believes that requiring costly and time-consuming
    reevaluations when both parents and local educational agencies
    deem them to be unnecessary is counterproductive. To this end,
    the committee has amended section 614(a)(2) to state clearly
    that the local educational agency does not have to conduct a
    reevaluation of a child with a disability if both the parent
    and the local educational agency agree that it is unnecessary.

                Evaluations
        In section 614(b)(2), the committee has added ``academic
    information'' to the list of information the local educational
    agency should gather in the evaluation process of a child,
    believing it to be a critical factor to consider in determining
    whether a child is a child with a disability.
        The committee has revised the ``Additional Requirements''
    section in 614(b)(3) to provide local educational agencies more
    clarity in the procedures they should use in selecting and
    administering tests and other evaluations to determine a
    child's eligibility under IDEA. In particular, tests and
    evaluations should be provided and administered, to the extent
    practicable, in the language and form most likely to yield
    accurate information on what the child knows and can do
    academically, developmentally, and functionally. The committee
    hopes that, by striking the phrase ``in the child's native
    language,'' schools will perform more accurate assessments on
    foreign born children who have been adopted by families in the
    United States. The committee has heard of instances in which
    schools have attempted to evaluate these children in a native
    language which they no longer use, yielding inaccurate results.
    In addition, school personnel have often required that foreign
    born children wait long periods of time before going through
    the IDEA evaluation process on the mistaken assumption that the
    child is not familiar enough with English to receive an
    appropriate evaluation. The committee encourages local
    educational agencies to conduct prompt evaluations of these
    children when requested, and believes that other changes made
    in section 614 regarding the parental right to request an
    evaluation, as well as a 60 day timeline for conducting an
    evaluation, will address the current problem many foreign born
    children have in regard to evaluation for IDEA eligibility.
        In addition, it is reported that some foreign born adopted
    children are refused services even after testing shows evidence
    of a disability because of the mistaken assumption that such
    disabilities are simply from a lack of English proficiency. The
    committee encourages schools to recognize the differences
    between language acquisition in ESL students and language
    acquisition for foreign-born adopted children.
        Further, some have reported to the committee that some
    foreign-born adopted children are denied services under section
    614(b)(5), which states that 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'' or under section 602(29)(c),
    which states that a child cannot be determined to have a
    specific learning disability if the disability is ``primarily
    the result of ``environmental, cultural or economic
    disadvantage.'' The committee wishes to clarify that these
    clauses should not be used to deny services to children with
    disabilities simply because they were born in a foreign country
    and were thus not exposed to English instruction, nor because
    they have experienced institutionalization or were born into
    disadvantaged circumstances.
        The committee has also revised the Special Rule for
    Eligibility Determination (section 614(b)(5)) by stating that
    the determinant factor for determining whether the child is a
    child with a disability cannot be a lack of ``scientifically
    based'' reading instruction. The phrase ``scientifically
    based'' was added to align IDEA with the No Child Left Behind
    Act, and its meaning is the same as defined under that act.

                Specific learning disabilities
        The committee believes that the IQ-achievement discrepancy
    formula, which considers whether a child has a severe
    discrepancy between achievement and intellectual ability,
    should not be a requirement for determining eligibility under
    the IDEA. There is no evidence that the IQ-achievement
    discrepancy formula can be applied in a consistent and
    educationally meaningful (i.e., reliable and valid) manner. In
    addition, this approach has been found to be particularly
    problematic for students living in poverty or culturally and
    linguistically different backgrounds, who may be erroneously
    viewed as having intrinsic intellectual limitations when their
    difficulties on such tests really reflect lack of experience or
    educational opportunity.
        The committee has heard from many experts about innovations
    and advances in the methodologies used to determine the
    existence of specific learning disabilities. In response to
    this growing base of knowledge, the bill clarifies that, in
    determining whether or not a student has a specific learning
    disability, a local educational agency is not required to take
    into account a severe discrepancy between IQ and achievement.
    This would not prohibit the use of this model, however, if an
    LEA chooses to base its decisions on the discrepancy formula.
        The bill allows local educational agencies to make an
    eligibility determination through the use of another mechanism,
    such as through a process based upon a child's response to
    scientific, research-based intervention. This provision is
    supported by the findings of the President's Commission on
    Excellence in Special Education. The Commission recommended
    that the identification process for children with high-
    incidence disabilities be simplified and that assessments that
    reflect learning and behavior in the classroom be encouraged,
    with less reliance on the assessments of IQ and achievement
    that are now prominent. The Commission also recommended that a
    student's response to scientifically based instruction become
    part of the criteria for SLD identification. However, the
    Commission noted that the development of these responses to
    instruction models is uneven and that technical assistance from
    OSEP will be critical for implementation. In addition, the
    Commission noted that parents should always have the right to
    request an evaluation, and current placement decisions should
    be respected.
        While the committee believes that allowing this flexibility
    is appropriate, it also acknowledges that the research base
    supporting such changes continues to advance and improve.
    Section 614(b)(3)(A)(iii) will require that all procedures,
    including alternate procedures, be valid and reliable for the
    purpose for which they are used; the committee expects that new
    methodologies adopted for use by local educational agencies
    also will be based on sound research findings. In order to
    prevent radical differences in how local educational agencies
    determine the presence of specific learning disabilities, the
    committee encourages States to develop research-based models
    that can be adopted by local educational agencies. Further, the
    committee emphasizes that nothing in the new statutory language
    would prohibit a State from establishing a consistent statewide
    process for determining whether a child has a specific learning
    disability. States should collaborate with LEAs to identify the
    criteria for determining an SLD and ensuring the consistency
    and integrity of the classification system across the State. In
    addition, the committee strongly encourages the Secretary of
    Education to assist States and LEAs in this effort by
    developing guidance and technical assistance systems for the
    improvement of SLD identification and eligibility.
        The committee also emphasizes that nothing in this new
    provision prevents a parent from requesting a full evaluation
    of a child. Parental input is critical in this area, as parents
    most always know their child better than anyone else does.
        A scientific, research based intervention model of SLD
    identification, such as that allowed in the committee bill,
    recognizes the prelude to any intervention process must be
    effective, research-based instruction in the regular education
    classroom. Gathering data on each student can help teachers and
    others frame concerns about a student's progress. The new law
    supports a continuum of intervention options--regular and
    special educators and related service providers working
    together as part of a coherent system that is accountable for
    educational outcomes for students with SLD.
        Interventions are most effective when they are implemented
    consistently and with fidelity, with a sufficient level of
    intensity, and are relevant to individual student needs. Above
    all, an improved system contemplates the design and timely
    implementation of individualized interventions, monitoring
    progress on specified academic and behavioral skills relative
    to peers in the same educational setting, and full individual
    assessments as needed, to identify strengths and weaknesses in
    relevant skills areas and to rule out other disabilities or
    non-cognitive factors as the primary cause of low achievement.

                Exit evaluations
        The committee has heard that local educational agencies
    feel compelled by current statutory language to conduct a
    reevaluation of a child with a disability when he or she either
    graduates from secondary school or ages out of IDEA
    eligibility. Both parents and schools have complained that a
    reevaluation seems unnecessary, time-consuming, and costly. The
    committee agrees. Therefore, the committee has included
    language in section 614(c)(5)(B), based upon existing Federal
    education regulations (34 C.F.R. 300.534(c)(2)), stating that a
    student does not need to be reevaluated before leaving
    secondary school. The bill also requires local educational
    agencies to provide a summary of the child's performance. The
    committee intends for this summary to provide specific,
    meaningful, and understandable information to the student, the
    student's family, and any agency, including postsecondary
    schools, which may provide services to the student upon
    transition. The committee does not intend that the contents of
    this summary be subject to any determination of whether a free
    appropriate public education has been provided. Further, the
    committee does not expect local educational agencies to conduct
    any new assessments or evaluations in providing the summary;
    rather, it should be based upon information the school has
    already gathered on the child.

                Individualized education programs
        In describing what an individualized education program
    (IEP) should contain, section 614(d)(1)(A)(i)(I) of the bill
    states that an IEP must include a statement of the child's
    present levels of ``academic achievement and functional
    performance,'' rather than simply ``educational performance''
    as required by the 1997 law. The committeebelieves that it is
    important to emphasize academic achievement, consistent with NCLB, and
    recognizes that for some children, functional performance is also a
    critical element that should be measured. The committee intends that
    the statement of measurable annual goals should include academic goals,
    and, where appropriate, functional goals.

                Elimination of benchmarks and short-term objectives
        Current IDEA law requires that a child's IEP must contain a
    statement of measurable annual goals for the child, including
    benchmarks or short-term objectives. Additionally, the IEP must
    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 their child's progress toward the
    annual goals and the extent to which that progress is
    sufficient to enable the child to achieve the goals by the end
    of the year.
        While benchmarks and short-term objectives are thought by
    some to help track the child's progress, their inclusion in
    IEPs contributes greatly to the paperwork burden on educators
    and parents, and often bears no relationship to the non-linear
    reality of a child's development. Special education practice
    via short-term objectives too often focuses on achieving only
    small incremental improvements in student performance to the
    detriment of more effective longer range planning. Short-term
    objectives and benchmarks can focus too much on minor details
    and distract from the real purpose of special education, which
    is to ensure that all children and youth with disabilities
    achieve high educational outcomes and are prepared to
    participate fully in the social and economic fabric of their
    communities.
        Both education officials and the President's Commission on
    Excellence in Special Education have found that benchmarks and
    short-term objectives to be unnecessary and time consuming.
    Some teachers have commented that their lesson plans that are
    aligned with the district curriculum frameworks are more useful
    than the benchmarks and short-term objectives required by IDEA.
        During the last reauthorization of IDEA in 1997, the
    continued value of short-term objectives was debated, and
    benchmarks were added. To date, States and LEAs have made
    minimal use of benchmarks; most do use short-term objectives,
    but continue to question their utility.
        With all these factors in mind, the committee has revised
    section 614(d)(1)(A) to eliminate the requirement for
    benchmarks and short-term objectives. The committee does not
    intend for the elimination of these requirements to lessen
    parental input or information, or to eliminate the need to
    break annual goals into instructional objectives.
        In order to measure and report the students' progress
    toward their annual goals, the IEP must instead contain a
    description of how the child's progress toward meeting the
    annual goals will be measured, as well as when periodic reports
    on the child's progress, such as through the use of quarterly
    or other periodic reports, will be provided. The committee
    feels that such progress reports are especially important for
    students whose IEPs contain non-academic goals and whose
    progress may not be measured easily by standardized tests or
    grades. These progress updates must provide parents with
    specific, meaningful, and understandable information on the
    progress children are making.
        The committee expects that eliminating the requirements for
    benchmarks and short-term objectives will reduce unproductive
    paperwork and allow greater attention to be focused on the
    child's annual IEP goals and on the methods of measuring
    progress and reporting that progress to parents in a meaningful
    way.
        Some parents have expressed concern about losing the
    individualization in instruction via short-term objectives.
    However, individualization in practice occurs through the
    accommodations and modifications provisions in the IEP. The
    committee feels that the new language is sufficiently explicit
    and will yield more instructionally relevant information to be
    used by teachers as well as reported to parents regarding a
    student's progress, and provide a clear and more appropriate
    accountability mechanism for monitoring and reporting progress
    than do short-term objectives and benchmarks.
        For most students with disabilities, many of their IEP
    goals would likely conform to State and district wide academic
    content standards and progress indicators consistent with
    standards based reform within education and the new
    requirements of NCLB. IEPs would also include other goals that
    the IEP Team deemed appropriate for the student, such as life
    skills, self-advocacy, social skills, and desired post-school
    activities. Moreover, since parents will receive individual
    student reports on their child with a disability's achievement
    on assessments under NCLB, they will have additional
    information to evaluate how well their children are doing
    against grade-level standards.

                Accommodations and alternate assessments
        The committee expects local educational agencies to test
    their students with disabilities using State or districtwide
    assessments administered to children without disabilities. To
    accurately assess a child's progress, the committee recognizes
    that for some children this framework would include certain
    necessary accommodations, an alternate assessment, or an
    alternate assessment based upon alternative standards for those
    children with significant cognitive disabilities.
        The bill also amends the current law's provision regarding
    districtwide assessments to incorporate proper terminology used
    today by test creators and researchers. Where the 1997 law said
    that IEPs must state the individual modifications to be made
    for a child to participate in a State or districtwide
    assessment, S. 1248 requires a statement of ``appropriate
    accommodations'' to be made for such assessments. In the
    testing field today, a ``modification'' to a test may affect
    the validity of that test, while an ``accommodation'' to a test
    will not affect the test's validity. Since the committee
    desires improved academic achievement for all children with
    disabilities, it is critical that assessment devices for these
    children are accurate and valid. The bill also provides that if
    the IEP team determines that a child shall take an alternate
    assessment, then it must state why the child cannot participate
    in the regular assessment and why the particular alternate
    assessment selected is appropriate for that child.

                Transition services
        Both parents and local educational agencies have complained
    that the current section 614(d) regarding transition services
    in the IEP creates some confusion as to what schools are
    obligated to provide to students at various times. The
    President's Commission on Excellence in Special Education
    recommended that the arbitrary age 14/16 distinctions should be
    replaced with a uniform standard at an appropriate age or
    school point readily understandable by teachers and students.
    The committee has heeded this suggestion and revised the law
    accordingly. Under S. 1248, beginning not later than the first
    IEP to be in effect when the child is 14, and updated annually
    thereafter, the IEP must contain: (1) appropriate measurable
    postsecondary goals based upon age appropriate assessments
    related to training, education, employment, and, where
    appropriate, independent living skills; and (2) the transition
    services the child needs to reach those goals. The committee
    believes that eliminating the arbitrary age 14/16 distinction
    and providing more specifics in the legislation will assist
    local educational agencies in providing improved transition
    services to students.

                Streamlining the IEP
        The committee is greatly concerned about the paperwork
    burdens experienced by teachers and other education personnel
    in connection with writing IEPs. Lengthy and complex IEPs are
    not necessarily beneficial to students if they create confusion
    and take teachers away from instructional time with children.
    The committee has examined a number of actual IEPs, and has
    discovered that many items in those documents are not required
    by federal IDEA law. While it has proven difficult to determine
    the source or sources generating this additional paperwork, the
    committee wants to ensure that the federal law does not
    contribute to this problem. Therefore, section 614(d)(1)(A)(ii)
    provides that nothing in the section shall be construed to
    require that additional information be included in an IEP
    beyond what is explicitly required in the section. The bill
    retains an existing provision ensuring that the IEP team does
    not need to include information under one component of an IEP
    that is already contained in another component of the IEP. The
    committee also recognizes that section 617 requires the
    Department of Education to develop a model IEP, suitable for
    adoption by a State or LEA, which will accommodate the
    committee's desire for a streamlined, straightforward,
    expression of only the requirements mandated by this Act.
    However, the committee does not intend to eliminate the
    requirement to individualize an IEP based upon each child's own
    unique needs.

                The IEP team and IEP meetings
        The committee has made no changes to the members of the IEP
    team (section 614(d)(1)(B)), but wants to reiterate the
    importance of the attendance of certain members. It has come to
    the attention of the committee that, despite the requirement in
    IDEA 1997, many IEP meetings are conducted without a member
    present who is knowledgeable about the availability of
    resources of the local educational agency. Many disagreements
    arising at IEP meetings could be resolved if this person were
    in attendance instead of intervening only after a parent has
    filed a complaint. The committee encourages local educational
    agencies to prevent complaints by ensuring that such a
    representative is in attendance and by providing IEP team
    members with the skills to constructively facilitate IEP
    meetings. Secondly, the committee encourages the participation
    of the child on the team to the greatest extent possible.
        The committee has heard from many individuals that the
    amount of time spent preparing for and attending IEP meetings,
    and the number of individuals required to attend such meetings,
    reduces the amount of time that personnel spend with students.
    Scheduling IEP meetings involves coordinating the schedules of
    a number of individuals, including parents, who are balancing
    work and family demands. At the same time, a certain member of
    the IEP team may not be needed at an IEP meeting if the topics
    of discussion do not involve that member. Or, an IEP meeting
    may be scheduled, but an IEP member later learns that they have
    an unavoidable scheduling conflict, which could force the
    cancellation of the IEP meeting.
        To address these concerns, the bill provides parents and
    schools with greater flexibility regarding the personnel
    attending IEP meetings. Under section 614(d)(1)(C), a member of
    the IEP team can be excused from the meeting if no
    modifications are being made to that member's area of
    curriculum or service; or, when a relevant modification is
    made, if the member provides input prior to the meeting. The
    committee expects this input to be meaningful, understandable,
    and preferably in writing. The IEP team member, the parent, and
    the local educational agency must agree to any such excusal,
    and the committee expects the local educational agency to
    ensure that the parent is making an informed decision. The bill
    also requires that local educational agencies encourage the
    consolidation of IEP meetings and reevaluation meetings
    (section 614(d)(3)(D)) to ease time burdens for parents, school
    personnel, and related service providers.
        Parents and professionals alike feel that parent
    involvement in IEP meetings could be increased if parents could
    participate in meetings through alternative means. Section
    614(f) of the bill clarifies that it is appropriate for parents
    and LEAs agree to participate in IEP Team and placement
    meetings via means such as video conferences and conference
    calls. This does not, however, negate a parent's right to
    request an in-person meeting. Further, the committee
    acknowledges that many meetings, such as meetings related to
    procedural safeguards in section 615, may be more appropriately
    handled through in-person meetings.
        The committee heard testimony that, often, common sense
    changes developed by a teacher and a parent to improve the
    child's educational services cannot be implemented without
    reconvening an IEP meeting, which requires coordinating the
    schedules of a number of people, and often forces a parent to
    take off work to attend. Such a process is so burdensome that
    often changes that could benefit a student are simply not made.
    The committee feels strongly that educators and parents need to
    have the flexibility to make minor changes to IEPs during the
    time span covered by the IEP without sending legal notices of a
    meeting, without convening the full IEP team, or rewriting the
    entire IEP. Therefore, section 614(d)(3)(D) of the bill allows
    the parent of a child with a disability and the local
    educational agency, through the responsible teacher or service
    provider, to amend or modify the child's current IEP without
    having to convene an IEP meeting. Such an amendment is not
    appropriate, however, as a substitute for an annual IEPmeeting,
    and the parent should make an informed decision when agreeing to such
    an amendment.

                Requirement that program be in effect
        As does the 1997 law, S. 1248 requires that each child have
    an IEP in effect at the beginning of each school year (section
    614(d)(2)). The committee understands that many children with
    disabilities who enter and exit local educational agencies
    during the course of the school year, especially migrant
    children, foster children, and homeless children, experience a
    gap in services. The committee believes that, when a child
    enters a new local educational agency, the services identified
    on his or her former IEP should be provided until the receiving
    local educational agency develops a new IEP.

                Development of IEP
        The bill adds a new factor that the IEP team must consider
    in developing a child's IEP: the academic, developmental, and
    functional needs of the child (section 614(d)(3)(A)). The
    committee recognizes that all students may not experience all
    of these needs simultaneously, and that this requirement shall
    apply when necessary.

                Special factors
        The committee has heard a great deal from professionals
    about the behavior of students with disabilities, the danger
    posed by some behavior, and the effect that behavior has on the
    learning environment. The committee believes that, in most
    cases, the behavior of students can be addressed and prevented
    effectively through positive behavioral interventions and
    supports. Therefore, section 614(d)(3)(B)(i) requires IEP teams
    to provide positive behavioral interventions and supports for
    children with disabilities whose behavior impedes their
    learning or the learning of others. The committee believes that
    taking this proactive approach should result in reductions in
    behavior problems and disciplinary referrals, as well as
    improved educational results for students with disabilities.
        Blind or visually impaired students may require specialized
    instruction to acquire skills that sighted students gain from
    visual observation. Section 614(d)(3)(B)(iii) contains a new
    provision requiring an IEP team working with blind or visually
    impaired students to consider, when appropriate, instructional
    services related to functional performance skills, orientation
    and mobility, and skills in the use of assistive technology
    devices, including low vision devices. The committee intends
    the term ``functional performance skills'' to facilitate
    inclusion in the IEP for blind or visually impaired students
    instruction in a variety of skills necessary for independent
    living. These skills are critical in preparing children for
    employment, social integration, and full participation in their
    communities. The committee also emphasizes the importance of
    orientation and mobility training as a part of an IEP for a
    child who is blind.

                Three year IEPs
        A new provision, section 614(d)(5), allows parents and
    local educational agencies to develop a 3-year IEP for students
    aged 18 and older, with an emphasis on interagency coordination
    with adult programs. The committee intends that those local
    educational agencies choosing to offer this option do so with
    the purpose of focusing on the post-secondary transition goals
    of students. A 3-year IEP will provide parents with the ability
    to engage the school district in long term planning for their
    child's post-secondary future. This option serves as a
    mechanism to focus on the long-term goals of the child with a
    disability upon leaving school. The committee expects local
    educational agencies to ensure that parents are making an
    informed decision when exercising this option.

                Children with degenerative diseases
        The committee has heard from many parents and teachers
    regarding the special situations of children with a medical
    condition that is degenerative (i.e., a disease that results in
    negative progression and cannot be corrected or fully
    stabilized). For these children who have been found to be
    eligible under IDEA, services under the IEP can be provided to
    help maintain the child's present level of functioning for as
    long as possible in order for the child to fully benefit from
    special education services. In developing an IEP for these
    children, the IEP Team may consider recommendations from
    professional consultants familiar with the child and the
    medical condition in the development of the IEP. The IEP Team
    can include related services designed to provide therapeutic
    services prior to loss of original abilities to extend current
    skills and throughout the child's enrollment in school. These
    services may include occupational and physical therapy, self-
    help, mobility and communication, as appropriate.

                Procedural safeguards
        Through its revisions to section 615, the committee intends
    to preserve and protect procedural safeguards so that all
    students with disabilities receive a free and appropriate
    public education, while also giving parents and schools the
    opportunity to resolve issues in a constructive manner. The
    committee has also sought to simplify and clarify the law to
    assist schools in serving students and their parents in more
    positive and effective ways.
                The right to present complaints
        The committee has revised section 615 in a number of areas,
    such as subsection (b)(6), to clarify that local educational
    agencies, as well as parents, have the right to present
    complaints.

                Notice of complaint
        In the interest of resolving disputes in the most effective
    and efficient way possible, it is critical that a party has
    timely notice of a complaint filed against them. The committee
    has heard of situations in which a local educational agency
    does not learn of a parent's complaint in a timely manner,
    because the State educational agency has not yet forwarded that
    complaint to the local agency. Therefore, S. 1248 revises
    section 615(b)(7) to require that the party filing the due
    process complaint under section 615(b)(6) must send the
    complaint to the other party, as well as to the State agency.
        The committee put in the 1997 law a very important
    requirement that a parent filing a due process complaint must
    provide the local educational agency with sufficient notice of
    the complaint, including: the child's name, address, and
    school; a description of the nature of the problem, including
    facts related to that problem, and a proposed resolution to the
    problem to the extent known and available at the time to the
    parent. S. 1248 adds a new requirement that, in the case of a
    homeless child or youth, the notice must contain available
    contact information for the child and the name of the school
    they are attending.
        The committee does not intend for a notice of a due process
    complaint to reach the level of specificity and detail of a
    pleading or complaint filed in a court of law. The purpose of
    the sufficiency requirement is to ensure that the other party,
    which is generally the school district, will have an awareness
    and understanding of the issues forming the basis of the
    complaint.
        In the 1997 reauthorization, the committee assumed that
    this notice requirement would give school districts adequate
    notice to be able to defend their actions at due process
    hearings, or even to resolve the dispute without having to go
    to due process. Unfortunately, the Department of Education's
    regulation (34 CFR 300.507(c)(4)) interpreting this provision
    nullified the statutory notice requirement by providing that a
    parent's failure to provide notice required by section
    615(b)(7) will not delay or deny a parent's right to a due
    process hearing. As a result, the committee has heard of
    situations in which a parent or their attorneys have filed a
    notice of complaint stating only that ``Child was denied
    FAPE,'' leaving the school with no idea as to what the real
    issues would be at the due process hearing, and forcing the
    school to prepare for any and every issue that could be
    possibly raised against it. While section 615(i)(3)(F)(iv)
    authorizes a court to reduce attorneys fees when the attorney
    representing the parent did not provide the school district the
    appropriate information in the due process complaint, this
    still does not prevent the loss of time, money, and other
    resources spent by a school district that has to prepare for
    this type of situation, and it would not address the case in
    which a parent, representing himself, fails to provide adequate
    notice.
        Therefore section 615(b)(7)(B) states that a due process
    hearing may not occur unless and until the requesting party has
    filed a complaint that meets the notice requirements of section
    615(b)(7)(A)(ii). The committee believes that this language
    merely restates the intent of the 1997 law, which was to avoid
    the case of a school district having to prepare for and attend
    a due process hearing based upon an insufficient notice. S.
    1248 makes clear that this sufficiency of notice requirement
    applies to local educational agencies filing due process
    complaints as well. While the committee agrees that a party's
    right to a due process hearing should not be delayed or denied
    for no reason, a party's failure to provide notice of their
    complaint to the other party is reasonable grounds for delaying
    a hearing until the other party is reasonably apprised of the
    issues underlying the complaint.
        If the hearing officer determines that the notice of the
    complaint does not meet the sufficiency requirements, then the
    party must amend their complaint. The committee intends that if
    such an amendment is necessary, the appropriate timelines for
    completion of the hearing begin upon the filing of the amended
    complaint. The committee encourages local educational agencies
    to provide parents with a list of local parent training and
    information centers, the State protection and advocacy system,
    and other groups that may assist parents in filing a sufficient
    complaint. In addition, the committee has expanded the existing
    model forms provision, section 615(b)(9), to require that
    States develop a model form to assist parents in not only
    filing complaints, but also in filing due process complaint
    notices.
        A due process complaint notice filed under section
    615(b)(7)(A) is deemed to be sufficient for purposes of going
    to a due process hearing. However, if the party receiving the
    notice believes it to be insufficient, section 615(c)(2)
    requires the receiving party to notify the hearing officer and
    the other party within 20 days of receiving the notice. A
    hearing officer then has five days from receipt of the notice
    of insufficiency to determine whether the due process complaint
    notice meets the statutory requirements. This determination
    shall be made on the face of the complaint. There should be no
    hearing or appeal in regard to the hearing officer's
    determination. The party contesting the sufficiency of the
    notice should also understand that the sufficiency requirement
    may not be used as a mechanism to delay a due process hearing.
    Even though the statute gives a party 20 days to file a notice
    of insufficiency, the applicable time frames for conducting and
    completing a due process hearing begin to run 15 days after the
    local educational agency has received due process complaint
    notice or, in the case of the hearing officer's determination
    that the notice was deficient, the receipt of the revised due
    process complaint notice.
        Normally, when a parent files a due process complaint under
    section 615(b)(7), he or she previously asked the school to
    take some type of action in regard to the education of their
    child with a disability. IDEA requires a school to provide the
    parent with written notice of its response to the parent's
    request, explaining the school's course of action regarding the
    child. However, there may be cases in which a parent has not
    brought a problem to the school's attention until the school
    receives a parent's due process complaint. To address this type
    of situation, the committee has added a new provision, section
    615(b)(8), which requires the school to provide a parent with a
    prior written notice under section 615(c), when learning of a
    parent's dispute for the first time in a parent's due process
    complaint. The contents of this notice should be no different
    in this situation than it is when issued before a due process
    complaint is filed. The committee does not intend for this
    prior written notice to reach the level of specificity and
    detail of an answer filed in a court of law. The committee is
    hopeful that such a written response from the school may, in
    fact, help a parent to resolve a disagreement, and eliminate
    the need to proceed to a due process hearing.

                Procedural safeguards notice
        While the procedural safeguards notice is critical for
    notifying parents and children with disabilities of their
    rights under the law, parents, as well as district personnel,
    have often criticized the frequent distribution of this notice
    within a year. Many view this as an example of either federal
    excess or as contributing to the uncomfortable feeling of an
    adversarial legal process as opposed to an educational
    practice. If a school holds an annual IEP meeting, conducts a
    reevaluation of a child, and then needs a follow-up IEP meeting
    in the course of a school year, the school must provide the
    parent a procedural safeguards notice at least three different
    times during that year. This process can create additional
    expense to print and mail the extensive document, and may even
    create a sense of mistrust on the part of parents. The
    committee believes that it does not make sense to require the
    issuance of a lengthy statement of procedural safeguards
    multiple times during a single school year. Therefore, section
    615(d)(1) has been amended to require that parents receive the
    procedural safeguards generally only once a year. Schools would
    most likely send this notice to parents either at the beginning
    of the school year, or at the annual IEP meeting for the child.
    In addition, the procedural safeguards notice must be given in
    three instances: upon initial referral or parental request for
    an evaluation; upon a parent's registration of a due process
    complaint under section 615(b)(6); or when requested by the
    parent. The committee also encourages States and local
    educational agencies to post their notice of procedural
    safeguards on their websites. In addition, a new subsection (n)
    of section 615 provides that a parent may elect to receive
    notices by e-mail, if the public agency makes such option
    available.
        S. 1248 also revises section 615(d)(2) to require that the
    procedural safeguards notice inform parents regarding the time
    period in which parents can file complaints, the school
    district's opportunity to resolve a complaint before a due
    process hearing, and the time period in which a party can
    appeal a hearing officer's decision to court.

                Mediation
        The committee is encouraged by the success of mediation
    occurring throughout the nation in resolving disputes between
    parties under IDEA. For example, a recent Michigan survey found
    that 82.3 percent of people surveyed said they strongly agreed
    with the statement that they would use mediation again. In
    Texas, 96 percent of parents and school district personnel who
    used mediation would do so again. Between 1992 and 2000, the
    Texas Education Agency received 3,637 referrals for special
    education mediation, and conducted 1,108 mediation settlements.
    Settlements were agreed to in 77 percent of the cases,
    amounting to an estimated savings of $50 million in attorneys'
    fees and related expenses. According to a General Accounting
    Office report released in September 2003, 93 percent of the
    mediation cases in California resulted in agreements between
    families and schools during the 2001-02 fiscal year; the cost
    of a mediator was about one-tenth of that of a hearing officer.
    The committee wants to build upon this success by encouraging
    parties to consider mediation as an option at earlier stages of
    disagreements and disputes. Accordingly, S. 1248 revises
    section 615(e) to clarify that parents can ask for mediation
    before filing a complaint under section 615(b)(6). The
    committee takes note of States such as New Hampshire, which
    encourages mediation by scheduling a mediation session when a
    parent files for a due process hearing, and then allows the
    parent to decline the mediation process.
        Because the committee places such a high value on the
    successful use of mediation, it has added a provision stating
    that a written mediation agreement is enforceable in court. A
    mediation agreement is a written contract entered into between
    two parties, and should be afforded the same legal protection
    as other binding contracts.
        The bill revises section 615(e)(2)(B) to provide that a
    State agency may establish procedures to offer--rather than
    require--parents, as well as to schools who choose not to use
    the mediation process, an opportunity to speak with a
    disinterested party regarding the benefits of mediation. The
    committee, however, also believes that a hearing officer, in
    the same fashion as a Federal or State judge, has the authority
    to mandate that a matter proceed to mediation as part of the
    hearing officer's plenary power once a complaint has been
    filed.

                Qualifications of mediators
        The committee is puzzled by the Department of Education's
    regulation, 34 CFR 300.506(c), which does not allow an unbiased
    person from another local educational agency to mediate a
    dispute. While it makes sense to disallow an LEA employee to
    mediate a dispute involving that individual's own LEA, the
    committee believes that a total ban on the use of any such
    employees is too restrictive, and could lead to a lack of
    qualified mediators. Therefore, the committee expects that the
    Department of Education will revise this regulation.
        S. 1248 revises section 615(f)(1) to clarify that both a
    parent, as well as a local educational agency, has an
    opportunity to have a due process hearing after filing a
    complaint.
        Although it is to be expected that a parent would try to
    resolve a disagreement with the IEP team before filing a due
    process complaint, the committee has heard of instances in
    which a school district learns for the first time that a parent
    has a problem with the district when it receives a notice of
    the parent's complaint. When this occurs, the school district
    has not had the opportunity to resolve the disagreement before
    going to a due process hearing. The committee believes that the
    parties should have a forum to resolve matters in a more
    informal way before moving to a more adversarial process. The
    bill adds a new provision, section (f)(1)(B), to provide this
    forum.
        During this resolution session, the parent will meet with
    the IEP team to discuss his or her complaint and the specific
    issues that form the basis of the complaint, and the local
    educational agency shall have an opportunity to resolve the
    complaint. The committee intends the local educational agency
    to promptly schedule the resolution session and the parent to
    facilitate the occurrence of the resolution session by not
    delaying the meeting or refusing to attend. The committee does
    not intend that either party would have the right to refuse to
    participate in the resolution session. However, the parties may
    agree to waive the resolution session, such as in cases where
    the localeducational agency is aware of the parent's complaint,
    and has already attempted to resolve the matter during an IEP team
    meeting, or when the parties have agreed to take their dispute to
    mediation.
        At the resolution session, a representative who has
    decisionmaking authority on behalf of the local educational
    agency must be in attendance, and the agency may not have an
    attorney present unless the parent is accompanied by an
    attorney or a third party advocate. The committee expects that
    State protection and advocacy agencies, as well as parent
    training and information centers can provide parents support
    they may need to participate in these resolution sessions. The
    committee does not intend that an agreement must be reached
    during the meeting, as parties will often need time to consider
    proposed methods of resolution. Therefore, the local
    educational agency has 15 days from receipt of the complaint to
    resolve the matter. The parties shall memorialize any
    resolution agreement in a written document that is enforceable
    in court, as is any other written settlement agreement.
        If the local educational agency and parent cannot resolve
    their issues within 15 days of receipt of the due process
    complaint, the due process hearing may occur, and all of the
    applicable timelines for a due process hearing under the law
    shall commence. The committee does not intend that the
    resolution session be used simply as a means to delay a due
    process hearing. It simply intends that a school district be
    given 15 days to resolve a disagreement before the timeframe
    for conducting a due process hearing begins.
        A school district's belief that a parent has failed to meet
    the notice requirements of section 615(b)(7)(B) should not
    delay a resolution session between the parties. In fact, the
    parent may be able to more clearly articulate their problem
    during the session, which would give the LEA sufficient
    information to try to resolve the problem. In this case, if
    agreement is still not reached, the LEA should waive the notice
    sufficiency requirement for the due process hearing, as it has
    been apprised of the problem, and has the opportunity to
    prepare its position for the due process hearing. In addition,
    if the parent raises new issues at the resolution session, but
    the school and parent cannot resolve these issues, the school
    can agree to allow these new issues to be discussed at the due
    process hearing. If, after the resolution session, the school
    district still does not understand the nature of the problem in
    the parent's notice of complaint, the LEA may rely on its
    insufficiency of notice claim. The goal of these new provisions
    is fairness: to be sure that a district is aware of a problem
    and has a chance to resolve it in a less formal manner before
    having to spend the time and resources for a due process
    hearing. The purpose is not to make parents go to another IEP
    meeting to explain an issue that has already reached an impasse
    with the district.

                Qualifications of Hearing Officers
        S. 1248 adds statutory requirements regarding
    qualifications of hearing officers. The committee does not
    intend that the phrase ``professional interest that conflicts
    with the person's objectivity'' would exclude members of
    professional associations or exclude special educators from
    other school districts from serving as hearing officers
    provided that they meet the qualifications detailed in section
    615(f)(3)(A). Similarly, these requirements should not exclude
    other individuals who have expertise in the area of special
    education, including parents of children with disabilities,
    from serving as hearing officers, as long as they are unbiased
    and have the appropriate qualifications to serve.
        Under section 615(f)(3)(B), at the due process hearing, the
    party requesting the hearing may not raise issues that were not
    raised in the notice filed under subsection (b)(7), unless the
    other party agrees. It is also expected that the hearing
    officer will also use common sense and principles of fairness
    in determining whether a party is raising a new issue. This
    provision is not intended to preclude a party--particularly a
    parent and their child--from exercising their rights to a due
    process hearing under the law. This is to ensure that both
    parties have a clear understanding of the subject matter of the
    complaint and can adequately prepare to present their position
    to the hearing officer. The committee has heard of instances in
    which a party raises completely new issues at a due process
    hearing that were not in any way contained in a notice of a
    complaint. As a result, the other party is surprised at the due
    process hearing, and has not adequately prepared, which can
    result in a waste of time for both parties and for the hearing
    officer, as well as a significant expenditure of resources on
    both sides. The committee sees no value in keeping a party in
    the dark and forcing it to prepare for every possible complaint
    that could be made.
        There is some concern that these new requirements would
    prevent a parent from being able to come to the due process
    hearing and raise new issues that were not raised in the
    complaint, because the parent did not understand they legally
    had other complaints, or because they did not properly
    articulate those complaints. However, section 615(f)(3)(C)
    makes clear that nothing prevents a parent from filing a new
    complaint with new issues. In addition, S. 1248 allows a parent
    to amend their original complaint in limited circumstances
    before a due process hearing occurs: with the written consent
    of the other party, or with the permission of the hearing
    officer. However, the school district must have the opportunity
    to resolve the amended complaint, and the timelines for holding
    a due process hearing would recommence. The committee wants to
    ensure that both parties have an understanding of the disputed
    issues, so that they can be prepared to have a meaningful due
    process hearing that will bring a fair resolution. The
    committee does not intend that a school district use the
    sufficiency requirement in a strictly technical way to preclude
    a parent from discussing an issue at a due process hearing of
    which the district was fully aware.

                Timeline for requesting hearing
        Section 615(f)(3)(D) creates a new two year timeline for
    requesting a hearing on claims for reimbursed or ongoing
    compensatory education services. If the State has developed an
    explicit timeline for requesting a due process hearing either
    through statute or regulation, that State provision will apply.
    The bill also provides for exceptions to the timeline in
    limited instances. The committee does not intend that common
    law determinations of statutes of limitation override this
    specific directive or the specific State or regulatory
    timeline.
        This new provision is not intended to alter the principle
    under IDEA that children may receive compensatory education
    services, as affirmed in School Comm. of Burlington v.
    Department of Education of Massachusetts, 471 U.S. 359 (1985)
    and Florence County School District Four v. Carter, 510 U.S. 7
    (1993) and otherwise limited under section 612(a)(10)(C).
    First, the statute of limitations will bar consideration of
    claims where: (1) the allegation relates to conduct or services
    that are more than two years prior to the commencement of due
    process on the basis of that conduct or those services, or upon
    the unilateral placement of the child in a private school or
    with a private service provider, and (2) during that two year
    period, either (a) the services are not alleged to have been at
    cost or inappropriate, or (b) the conduct is not alleged to
    have been appropriate. In essence, where the issue giving rise
    to the claim is more than two years old and not ongoing, the
    claim is barred; where the conduct or services at issue are
    ongoing to the previous two years, the claim for compensatory
    education services may be made on the basis of the most recent
    conduct or services and the conduct or services that were more
    than two years old at the time of due process or the private
    placement. Second, the statute of limitations will bar
    consideration of claims for reimbursement of private school
    tuition or services where the child has not attended school
    with the public entity for more than two years. Simply put, if
    a child leaves a public school and the parent chooses to place
    the child in a private school, the parent must claim through
    due process that they are entitled to reimbursement for those
    services prior to the two year anniversary of that student's
    departure.

                Decision of hearing officer
        The committee has been made aware of cases in which a
    hearing officer has found that a school denied FAPE to a child
    with a disability based upon a mere procedural technicality,
    rather than an actual showing that the child's education was
    harmed by the procedural flaw. For example, because a school
    has failed to provide a parent with a notice of procedural
    safeguards for the third or fourth time in a school year, a
    hearing officer may have found a FAPE violation. The
    ramifications of this are great when considering that such a
    finding can subject a school district to the payment of
    attorneys' fees. The committee does not believe that the law
    intends such a result. Hearing officers should generally make
    decisions based upon true substantive grounds, not mere
    technical flaws.
        Section 615(f)(3)(F) directs hearing officers to make
    decisions on due process complaints on substantive grounds
    based upon a determination of whether the child in question
    received a free appropriate public education. This entails
    going beyond whether there was a mere technical flaw, and
    requires an inquiry into whether the alleged action or inaction
    affected the child's receipt of FAPE. The committee does not
    intend for this provision to be an invitation to local
    educational agencies to become lax in following the procedures
    under the law. The committee also acknowledges that there are
    procedural violations which can deny a child a free appropriate
    public education. For example, a school's failure to give a
    parent access to initial evaluation information to make an
    informed and timely decision about their child's education can
    amount to a FAPE violation. In these cases, the hearing officer
    may find a FAPE violation only if the procedural inadequacies
    compromised the child's right to an appropriate public
    education; seriously hampered the parents' opportunity to
    participate in the process; or caused a substantial deprivation
    of educational benefits.
        The committee also believes that requiring that hearing
    officers possess a number of qualifications, such as having the
    knowledge and ability to render and write decisions in
    accordance with appropriate, standard legal practice, will help
    ensure that due process complaints are correctly decided under
    the law.
        S. 1248 also contains a provision (section 615(f)(3)(G))
    making it clear that nothing in section 615 shall be construed
    to affect a parent's right to file a complaint with the State
    educational agency, including complaints of procedural
    violations.

                Parents representing their children in civil actions
        The statutory language of IDEA makes clear that a parent
    has a right to file a due process complaint and to have the
    opportunity for a due process hearing. It is unquestioned that
    parents have the right to bring a complaint and participate in
    a due process hearing without an attorney.
        However, there has been disagreement as to whether a parent
    may, in effect, ``represent'' their child in a civil action
    that results from an appeal of a due process hearing. The
    committee is aware of the current conflict between a number of
    federal circuit courts regarding this issue, and understands
    that some courts have decided this issue based upon a
    distinction between procedural and substantive claims brought
    by a parent.
        Both Federal and State laws generally prevent a non-
    attorney parent from representing his or her child in a court
    proceeding, as these laws provide that a person can only
    represent himself or herself, and not proceed on behalf of
    their minor child. Moreover, it is well-settled law that a
    minor is disqualified from representing himself or herself in a
    civil action.
        A parent who does not have the financial resources to hire
    an attorney, but yet does not meet the financial need criteria
    for court-appointed counsel, or who cannot find an attorney to
    take their case on a contingency basis, has no ability to
    protect their child's interests if they are disallowed from
    going to court. This seems particularly unfair if a school
    district, rather than the parent, appeals a due process hearing
    decision to State or Federal court.
        It makes little sense if the parents who are explicitly
    permitted to invoke administrative remedies and to exhaust them
    could not be parties for purposes of bringing suit. IDEA relies
    upon the central role played by parents in assuring that their
    child with a disability receives a free appropriate public
    education.
        Based on current statutory language and on the rich
    legislative history emphasizing the importance of parental
    involvement, the committee believes that parents have a right
    to represent their child in court, without a lawyer, for
    purposes of IDEA law,regardless of whether their claims involve
    procedural or substantive issues. Therefore, the committee has amended
    section 615(i)(2) to clarify that a parent of a child with a disability
    may represent the child in any action under this part in State or
    Federal court, without the assistance of an attorney. The committee
    makes clear that this provision applies only to civil actions brought
    under IDEA as a result of an appeal from a due process hearing
    decision. Further, the committee does not intend that this provision
    alter State laws or court determinations regarding parental rights or
    child custody issues.

                Timeline for appeals
        S. 1248 contains a new provision, section 615(i)(2)(B),
    which gives a party 90 days from the date of the decision of
    the hearing officer for appealing a due process hearing
    decision to State or federal district court, or if there is an
    explicit State time limitation set out by State statute or
    regulation, in such time as the State law allows. Again, the
    committee does not intend for common law to override the
    particularity of this provision.

                Provisions for administrative and judicial review
        Under section 615, the committee intends that parties to
    disputes exhaust available administrative remedies before
    proceeding to a judicial forum. For this reason the bill's
    provisions regarding the review of such disputes, including the
    timelines for filing complaints and procedural and substantive
    grounds, are applicable initially in the administrative forum
    provided section 615, as well as in a judicial forum that may
    be sought.

                Attorneys' fees
        The 1997 law does not allow the awarding of attorneys' fees
    relating to any IEP Team meeting, unless the meeting is
    convened as the result of an administrative proceeding or
    judicial action, or, at the State's discretion, for a
    mediation. S. 1248 makes clear (section 615(i)(3)(D)(iii)) that
    attorneys' fees cannot be awarded in connection with a
    resolution session between the parties pursuant to section
    615(f)(1)(B). In addition, section 615(i)(3)(F) clarifies that
    a parent's attorney, as well as the parent, may be the one
    responsible for unreasonably protracting the final resolution
    of a controversy between the parties, and could therefore
    trigger the court's reduction of attorneys' fees to the parent.

                Discipline
        In response to concerns expressed by school administrators,
    teachers, and even parents, the committee has revised section
    615(k) to make it simpler, easier to administer, and more fair
    to all students.
        S. 1248 distinguishes three categories of disciplinary
    actions that a school district can take. The first is paragraph
    (1)(A), the 10-day rule, which the bill retains from current
    law. Under this category, a school may order a change of
    placement for a child who violates a code of student conduct to
    an appropriate interim educational setting, another setting, or
    suspension, for 10 consecutive school days or less, to the same
    extent that it would apply such a discipline measure to a child
    without a disability. No manifestation determination is
    necessary in order to take action in this first category.
        Some have expressed concern about the language ``violation
    of school code'' or ``violation of a code of student conduct''
    contained in section 615. However, the committee notes that the
    1997 law uses a similar phrase, and does not intend for the
    language in S. 1248 to have a different meaning.
        In the second category, if a school chooses to discipline a
    child for a violation of the school code for a period beyond 10
    consecutive school days, then the school can apply the same
    disciplinary procedures that it would apply to a child without
    a disability, as long as the school has determined that the
    violation in question was not a manifestation of the child's
    disability. However, if the child's disability did cause the
    violation of the school code, the ``stay put'' rule applies.
    However, the school, working through the IEP team, could obtain
    the parent's consent to remove the child for more than 10
    consecutive school days for disciplinary reasons.
        The third category, similar to the 1997 law, covers cases
    involving weapons or drugs, and also adds a new situation to
    this category: when a child has committed serious bodily injury
    upon another person. The definition of ``serious bodily
    injury'' is taken from 18 U.S.C. 1365(3)(h), and means bodily
    injury which involves a substantial risk of death; extreme
    physical pain; protracted and obvious disfigurement; or
    protracted loss or impairment of the function of a bodily
    member, organ, or mental faculty. If a child commits acts
    involving any of these three instances, a school can remove the
    child from the regular classroom setting for up to 45 school
    days, regardless of whether the child's behavior was a
    manifestation of his or her disability. Because of the inherent
    and immediate dangers connected with this category of cases,
    school personnel need to retain the ability to take swift
    action to address these situations, to ensure the safety of all
    students, teachers, and other such personnel. Indeed, Congress
    recognized this when it passed the Gun Free Schools Act, which
    provides that a State wishing to receive federal education
    dollars must have in place a State law requiring the one year
    expulsion of a student found with a firearm at school. If the
    child's behavior is determined not to be a manifestation of the
    disability, regular disciplinary consequences can be applied in
    addition to the 45 day removal, subject to section 612(a)(1).
    Even if the child's behavior is later determined to be a
    manifestation of his disability, the committee believes it is
    critical that schools have the flexibility to keep the child
    out of his regular setting for up to 45 days.
        When a disability has been determined to result in the
    child's behavior, a school will not be able to apply the same
    long term disciplinary procedures applicable to all children,
    but it does have the opportunity to work with the parent and
    the IEP team to determine what appropriate actions should be
    taken to address the child's behavior. The committee encourages
    parents to work with school personnel and the IEP team in a
    cooperative and common sense way in determining the best course
    of action for the child that results in the child's continued
    right to receive a free appropriate public education, and a
    safe and secure classroom for all children. The committee
    believes that a child'sright to receive a free appropriate
    public education does not have to conflict with a safe and secure
    classroom for all.
        For other cases involving a less immediate threat to
    safety, but which would result in a disciplinary removal
    lasting beyond 10 consecutive school days, the committee
    believes that a school must conclude that a child's behavior
    was not a manifestation of their disability before being able
    to remove the child from their regular classroom setting for
    more than 10 consecutive school days. This is, in fact, what
    the 1997 law requires. The committee has simply restructured
    the language to clarify the law.
        The committee has also clarified and revised the law
    regarding manifestation determinations. First, the bill makes
    clear that a school does not have to conduct a manifestation
    determination prior to taking a disciplinary action of 10
    consecutive school days or less, or prior to a 45 day removal
    for cases involving weapons, drugs, or serious bodily injury.
    Second, the bill uses a more simplified, common sense procedure
    for schools to use in making the actual manifestation
    determination. Under the 1997 law, schools were forced to prove
    a negative: that a child's behavior was not a manifestation of
    his or her disability based upon a complicated set of factors.
    Many schools found this test to be confusing and unfair. S.
    1248 directs a school to determine whether the child's behavior
    was a manifestation of his or her disability based upon two
    questions: (1) Was the conduct in question the result of the
    child's disability; and (2) did the conduct result from the
    failure to implement the IEP or to implement behavioral
    interventions as required under section 614(d)(3)(B)(i)? If the
    answer to either of these questions is yes, then the school
    must conclude that the child's conduct was indeed a
    manifestation of his or her disability.
        S. 1248 retains the 1997 law's requirement that a local
    educational agency must promptly notify parents of a
    disciplinary action in regard to their child, but puts this
    notification requirement in a separate provision to highlight
    its importance.
        The bill also clarifies what services must be provided to a
    child who is removed from his or her current placement for more
    than 10 consecutive school days. The child must continue to
    receive educational services pursuant to the FAPE requirement
    of section 612(a)(1), so that he or she can continue to
    participate in the general curriculum (although in another
    setting), and progress toward meeting the goals in the child's
    IEP. Further, the school must take other actions designed to
    address the behavior violation so that it does not recur. The
    child must receive behavioral intervention services under
    section 614(d)(3)(B)(i), which applies to children whose
    behavior impedes their learning or that of others. The child
    should also receive a functional behavioral assessment, but
    only if they did not receive such assessment before the
    violation occurred. The committee believes that this modified
    language better tracks the language in section 614. The bill
    also states that the IEP team shall determine the child's
    alternative educational setting.
        S. 1248 lists the situations in which a party may request a
    hearing regarding disciplinary decisions or proposed
    disciplinary actions. A parent who disagrees with any decision
    of the school district regarding a disciplinary action,
    placement, or a manifestation determination, may request a
    hearing, as can a local educational agency that believes that
    maintaining the child's current placement is substantially
    likely to result in injury to the child or others. At the
    hearing requested by the parent, the hearing officer will
    determine whether the local educational agency's decision was
    appropriate. In a hearing held at the local educational
    agency's request, the hearing officer may order a change in
    placement of a child with a disability to an interim
    alternative educational setting for not more than 45 days upon
    a determination that maintaining the current placement is
    substantially likely to result in injury to the child or
    others. This is to address situations such as when a school
    cannot make a unilateral change in the child's placement
    because his behavior was a manifestation of his disability: the
    school deems the child to be too dangerous to stay in a regular
    classroom, but has been unable to reach agreement with the
    parent as to an appropriate alternative placement for the
    child.
        The bill also changes the stay put rule in the 1997 law.
    The bill requires that, during a parent's appeal under section
    615(k)(1)(B), the child shall remain in the interim alternative
    educational setting chosen by the IEP team pending the hearing
    officer's decision or until the time period for the
    disciplinary action expires, whichever occurs first, unless the
    parent and public agency agree otherwise. However, the hearing
    must occur within 20 days of the hearing request. Under
    paragraph (4), the child stays in an interim setting as well in
    all other cases. The committee does not intend that a parent
    can get a child removed early from the 45 day placement for
    weapons, drugs, or serious bodily injury if the manifestation
    determination is reversed. However, if a parent contests facts
    surrounding the claim the child actually carried a weapon,
    brought drugs to school, or committed a serious bodily injury,
    then the child may be returned to his or her original placement
    if a hearing officer overturns the school district's decision.
    Similarly, if a parent successfully contests the provision of
    FAPE in the interim alternative educational setting chosen by
    the IEP team, the child's placement could be changed before the
    45 day period expires.
        The committee maintains its intent that children who have
    not yet been identified for IDEA should be afforded certain
    protections under the law. However, the committee has heard
    many concerns regarding the abuses resulting from the provision
    in the 1997 law affording these protections. For example, under
    current law, a school is deemed to have knowledge that a child
    has a disability based on a claim that the child's ``behavior
    or performance demonstrates the need'' for special education
    and related services, or because a teacher made a stray,
    isolated comment expressing ``concern about the behavior or
    performance of the child'' to another teacher. The committee
    believes that these provisions as written have had the
    unintended consequence of providing a shield against the
    ability of a school district to be able to appropriately
    discipline a student. Therefore, S. 1248 revises this provision
    to ensure that schools can appropriately discipline students,
    while maintaining protections for students whom the school had
    valid reason to know had a disability. Under two revised
    provisions, a school will be deemed to know about a child's
    disability if the child has engaged in a pattern of behavior
    that should have alerted school personnel that the child may
    need special education and related services; and when a teacher
    or other school personnel has expressed concern about a pattern
    ofbehavior to either the special education director, or to
    other administrative personnel. The committee also makes clear that a
    school will not be deemed to know that the child has a disability if
    the child's parent has refused to allow an evaluation requested by the
    school under section 614.

                Transfer of parental rights at age of majority
        The committee encourages States exercising their option to
    allow the transfer of parental rights at the age of majority to
    notify parents and students a year in advance to help them get
    prepared for assuming exercise of procedural safeguards rights
    under this Act (see section 614(d)(1)(A)(i)(VIII)(cc)).

                Monitoring, technical assistance, and enforcement
        Since its predecessor's passage in 1975, Federal monitoring
    and enforcement of IDEA has primarily focused on State and
    local process implementation of special education. This was
    consistent with the general legislative purpose of the original
    act, in that schools were failing to deliver adequate education
    services to children with disabilities.
        The underlying premise of the law was to educate children
    in a manner equal to their nondisabled peers. Particularly
    since the 1997 reauthorization and the enactment of the No
    Child Left Behind Act in 2002, a policy consensus among
    advocates and policy makers has formed that the next IDEA
    reauthorization must shift from process accountability to
    student performance accountability.
        The revision of section 616 represents a significant
    departure from past practice of Federal monitoring and
    enforcement of IDEA. For the first time, the statute provides
    the Secretary with clear authority to take action against a
    State when there has been a persistent lack of progress in the
    area of student achievement. The new focus on substantive
    performance indicators under section 616 contrasts with
    previous statutory obligations to collect data, that primarily
    addressed demographic issues. The purpose of these provisions
    is to shift the Federal monitoring and enforcement activities
    away from SEA and LEA administrative process issues that have
    historically driven compliance monitoring, to a system that
    primarily focuses on substantive performance of students with
    disabilities.
        Section 616(a) requires the Secretary to monitor
    implementation of the Act through oversight and a system of
    indicators and to enforce the Act. It also requires States to
    monitor implementation of the act by LEAs and enforce the act.
    The subsection requires that the primary focus of Federal and
    State monitoring activities shall be on improving educational
    results and functional outcomes for all children with
    disabilities, while ensuring compliance with program
    requirements, with a particular emphasis on requirements
    relating to improving educational results for children with
    disabilities. The bill provides a list of priority areas which
    the Secretary must monitor: the provision of a free appropriate
    public education in the least restrictive environment,
    transition services, State exercise of general supervisory
    authority, and overrepresentation of racial and ethnic groups
    in special education and related services, to the extent the
    overrepresentation is the result of inappropriate policies,
    procedures, and practices.
        Using the performance indicators that States must establish
    under section 612(a)(15), the Secretary will assess the
    performance of States in the areas of assessments, drop-out
    rates, and graduation rates.
        The bill also requires that, within one year after
    enactment, States must develop a State Compliance plan in
    collaboration with the Secretary. This plan must include
    benchmarks to measure continuous progress on the priority areas
    listed above, as well as a description of strategies the State
    will use to achieve the benchmarks. The committee believes that
    it is appropriate for States, rather than the Secretary alone,
    to develop benchmarks, since demographic and other factors can
    vary widely among States. States are encouraged to solicit the
    comments of parents of children with disabilities in the
    development of benchmarks.
        Section 616(c) provides the Secretary with new authority to
    take a number of actions when there has been a lack of
    satisfactory progress in regard to a State's indicators and
    benchmarks, or noncompliance with the Act. If a State has
    failed to make satisfactory progress in meeting its indicators
    or has failed to meet its benchmarks for two consecutive years,
    the Secretary may direct the use of State level funds for
    technical assistance and/or withholding not less than 20
    percent but not more than 50 percent of the State's funds for
    State administration and activities. If, after 5 years, the
    State has failed to meet its benchmarks or make satisfactory
    progress in improving educational results for children with
    disabilities pursuant to the State indicators, the Secretary
    must take one or more of the following actions: seek to recover
    funds under section 452 of the General Education Provisions Act
    (GEPA); withhold (after notice and an opportunity for a
    hearing) payments to the State; referral for appropriate
    enforcement action, including referral to the Department of
    Justice; suspend payments to a recipient, or suspend the
    authority of the recipient to obligate Federal funds.
        In addition, the subsection provides that if, at any time,
    the Secretary determines that a State is not in substantial
    compliance, or there is a substantial failure to comply with
    any conditions of the LEA's or SEA's eligibility, the Secretary
    shall take one or more of the following actions: request that
    the State prepare a corrective action plan; impose special
    conditions on the State's grant; require the State to enter
    into a compliance agreement under section 457 of GEPA; recovery
    of funds under section 452 of GEPA; withholding (after notice
    and an opportunity for a hearing) any further payments to the
    State; referral for appropriate enforcement action, including
    referral to the Department of Justice; suspending payments to a
    recipient; or suspending the authority of the recipient to
    obligate Federal funds.
        Finally, if at any time a State is in egregious
    noncompliance or is willfully disregarding the provisions of
    this Act, the Secretary may take any of the above-described
    actions, and in addition, may either institute a cease and
    desist action under GEPA, or refer the case to the Office of
    the Inspector General.
        The committee has also added a new provision, Section
    616(e), dealing with State and local monitoring. State
    educational agencies are required to monitor and enforce
    implementation of the act and to implement a system for
    monitoring the benchmarks in the State's compliance plan, and
    States must also require LEAs to monitor and enforce
    implementation. The subsection also requires the SEA to
    prohibit the LEA from treating funds under the act as local
    funds under section 613(a)(2)(C) for any fiscal year if the SEA
    determines that a LEA is not meeting the requirements of the
    act.

                Model paperwork forms
        The committee understands that the paperwork forms
    associated with the Act are greatly varied from State to State
    and district to district. A standard IEP in one State could be
    seven pages while in a neighboring State that same child's IEP
    would be eighteen pages. While some of this variance is related
    to State or local policy, most of the differences relate to
    confusion regarding what the act requires. Section 617(d) of
    the bill requires the Secretary to develop model forms for the
    IEP, IFSP, prior written notice, and procedural safeguards
    notice. Each of these model forms will help inform local
    educational agency efforts as they develop their own forms and
    will result in decreased paperwork burdens while still ensuring
    that all of the requirements of the act are met.

                Program information
        S. 1248 retains the important data collection requirements
    under Section 618, while making some minor revisions. First,
    States will be required to make this data available to the
    public, as well as the Secretary. Second, States will be
    required to provide the number and percentage of children in
    various categories. Third, States must collect information on
    the categories of gender, and, where appropriate, limited
    English proficiency status. Fourth, section 618 expands the
    information that must be collected in relation to certain
    disciplinary actions, due process complaints and hearings, and
    mediations. Finally, the bill contains a new provision ensuring
    that the data which is collected by States must be reported in
    a manner that does not result in the disclosure of data
    identifiable to individual children.

                Preschool grants
        The bill makes minor technical and conforming changes to
    the section 619 Preschool Grants program. Throughout S. 1248,
    the committee stresses the importance of intervening early with
    children to reduce the future impact of disabilities and
    improve academic and functional outcomes for children. The
    services provided for under section 619 can be an integral
    component to a State's system of early intervention services to
    children with disabilities. Such services should include a
    strong educational component that promotes schools readiness.
    The committee encourages preschool special education programs
    to place more emphasis on pre-academic skills for young
    children with disabilities, especially pre-literacy, pre-
    numeracy, and language skills.

    Amendments to Part C of the Individuals with Disabilities Education Act

        The early years of a child's development lay the groundwork
    for future years. The services that infants and toddlers with
    disabilities and their families receive, in many cases, may
    help prevent the need for more costly services once a child
    reaches school age. Recognizing the importance of early
    identification and intervention, the committee continues to
    believe that the Part C program plays a vital role in assisting
    children with disabilities and their families. New provisions
    affecting the Part C program are designed to: (1) Ensure that a
    greater number of children who are in need of early
    intervention services receive them, (2) provide for a more
    seamless transition of services from birth through school age,
    and (3) ensure that programs appropriately prepare children for
    preschool and school.

                Services and personnel
        S. 1248 revises section 632(4)(E) to clarify that sign
    language and cued language services are included in the
    definition of early intervention services. In addition, section
    632(4)(F) provides that teachers of the deaf and vision
    specialists, including ophthalmologists and optometrists, are
    qualified personnel who may provide early intervention
    services.

                Program eligibility and child find
        To ensure that disabled and developmentally delayed
    children receive early intervention services, section 635(a)
    includes a new definition of the term ``developmental delay.''
    At a minimum, a State's definition of developmental delay must
    now cover all infants and toddlers with a 35 percent or more
    delay in any single developmental area, or a 25 percent or more
    delay in two developmental areas. The committee believes for
    the few States requiring even greater levels of delay, as a
    requisite to receiving early intervention services, are short-
    changing many infants and toddlers and their families who would
    benefit from such services. The new definition of developmental
    delay ensures that more children in need of early intervention
    services will qualify for them.
        Research on early childhood development demonstrates that
    infants and toddlers who have been abused or neglected are at
    increased risk of significant delays in language, cognition,
    and behavior. In fact, these children have rates of
    developmental delay approximately four to five times that found
    among children in the general population. One study found that
    more than half of over 200 children in foster care under the
    age of 31 months had language delays. Too many infants and
    toddlers who have been abused or neglected are falling through
    the cracks and are not receiving the early intervention
    services for which they may be eligible.
        As there is a strong need for improving collaboration
    between the child welfare and Part C systems in order to
    provide early intervention services to abused and neglected
    children, the bill requires States to develop policies to
    require referrals of all children under age 3 in a
    substantiated case of abuse or neglect for evaluation, and if
    appropriate, early intervention services. The bill also
    requires States to require referrals for all children who are
    born and identified as affected by illegal substance abuse, or
    withdrawal symptoms resulting from prenatal drug exposure.
    These changes provide an importantenhancement of the State
    child find system and will help States identify infants and toddlers
    who are in need of Part C services.

                Transition from early intervention to preschool
        Throughout Part C, the committee emphasizes the importance
    of planning for and providing a smooth transition from Part C
    services to Part B services. To this end, the bill requires
    that Individualized Family Services Plans (IFSP) include a
    description of transition services for the child, and specifies
    that transition services are a part of the responsibilities of
    a service coordinator. Many children who receive effective
    early intervention may not need to receive special education
    services later, so the bill also recognizes exiting from early
    intervention and special education services as a goal and a
    part of transition planning. When applicable, steps for exiting
    from early intervention must be included in transition plans,
    and State policies and procedures must include exiting as a
    part of ensuring a smooth transition from the program.

                State flexibility for seamless zero to five program
        As another effort to ensure the smooth transition from the
    Part C program to the section 619 program, Part C includes a
    new provision, specifically section 635(b), that would give
    States the option to create a comprehensive and fluid system of
    services for special needs children birth to school age. States
    choosing to participate would have the option to commingle Part
    C and Part B funds in order to better serve families with
    children with special needs.
        The committee feels that parents and families should have a
    choice about the type of program and services their young
    children receive. The committee has heard from parents of
    children with disabilities who would prefer to keep the same
    provider and services for their child, until school age, as
    transition between the Part C program (infants and toddlers)
    and the section 619 program (preschool) can be difficult or
    undesirable for some parents. To address this concern, the
    committee included a provision that would authorize States to
    create a seamless system for infants, toddlers and preschoolers
    with disabilities, giving parents the opportunity to continue
    services with the provider of their choice.
        Under this provision, if a State participates in this
    flexibility option, the Governor will select which agency
    administers the birth to school age special needs program. When
    a family with a special needs child receiving services under
    Part C reaches the age of exit, parents have the option to
    waive a free appropriate public education (FAPE) and remain in
    the Part C program, provided the Part C program includes an
    educational component that promotes school readiness and
    incorporates pre-literacy, pre-numeracy and language skills.
    Although parents will have waived FAPE to continue services
    under the Part C program, parents will continue to have all of
    the procedural safeguards and due process rights that are
    provided under the Part C program.
        As a result of a parent's decision to forgo participating
    in the Part B program before their child reaches school age,
    parents are choosing to continue receiving services under Part
    C including, continuing to pay any fees associated with
    services for their child through the Part C program. Instead of
    developing an individualized education plan (IEP), the family's
    individualized family service plan (IFSP) plan will continue to
    be followed and educational goals will be added.
        States that choose to offer this seamless program shall
    ensure that parents of children who are eligible under Part B
    for preschool services are made fully aware of the differences
    between the Part C program and the Part B program. Any
    explanation of these differences must include a description of
    the types of services, procedural safeguards and potential
    costs to parents associated with the two programs. The
    committee believes that in addition to being notified annually
    of these differences, as is required under the bill; parents
    should also be made aware of these differences at the
    conference between the lead agency and family that is convened
    at least 90 days prior to a child being eligible to receive
    preschool services.
        States participating in the seamless 0-5 program shall also
    ensure that the Statewide system include referrals for
    evaluations for early intervention services of a child below
    the age of three who experience exposure to trauma or violence
    or both.
        As this is a new initiative, the bill includes a
    requirement (section 665(f)) that the Secretary conduct a study
    on the effects of this seamless system.

                Nature of early intervention services
        In 1997, the last time IDEA was reauthorized, a provision
    was added to require that early intervention services be
    provided in natural environments, and that such services be
    provided in another setting only when early intervention could
    not be achieved satisfactorily in a natural environment. S.
    1248 requires that early intervention be provided in a natural
    environment, unless a specific outcome cannot be met
    satisfactorily in a natural environment. The committee
    continues to believe that infants and toddlers with
    disabilities should be served in natural environments with
    their non-disabled peers to the maximum extent appropriate, but
    this change gives parents and service providers more
    flexibility in determining when it is or is not appropriate to
    serve children in settings other than natural environments.
        Consistent with the bill's overall focus on achievement and
    accountability, new provisions have been added to Part C to
    make the IFSPs more specific and outcome-oriented. In order to
    increase accountability for the progress of infants and
    toddlers, IFSPs must now include measurable outcomes, as
    opposed to major outcomes. These measurable outcomes should
    include, as appropriate, pre-literacy and language skills.
    Including these skills on an IFSP recognizes the role that
    early intervention plays in building the foundations for
    academic success. In addition to existing IFSP requirements the
    bill requires that IFSPs now include information on the
    anticipated length and frequency of services. The committee
    also specifies that, when a parent does not provide written
    consent for all services on an IFSP, that only those services
    for which consent was obtained will be provided.

                Interagency coordination
        Many agencies and programs are involved in the delivery of
    Part C services, and the service system functions best and
    serves children better when strong linkages and collaborations
    between agencies and programs are formed. To encourage these
    linkages, S. 1248 adds a representative from the State Medicaid
    Agency as a required member of the State Interagency
    Coordinating Council. Because Medicaid plays such an important
    role in funding Part C programs, the committee believes the
    participation of this agency is essential to improving services
    for infants and toddlers with disabilities. The bill removes
    the requirement that the Department of Education establish a
    Federal Interagency Coordinating Committee (FICC) because the
    committee does not believe that it has been effective in
    coordinating policy at the Federal level.

                Payor of last resort
        In order to clarify existing uncertainty regarding public
    agencies' obligations and responsibilities of ensuring
    provision of, and ultimate financial responsibility for,
    services within a State, the committee has made expenditure of
    administrative funds by a State under section 611 and part C
    contingent upon a State's certification that the agreements to
    establish these responsibilities within a State are current.
        The committee further clarifies in section 612 and section
    640 that if there are instances when a public agency initially
    fails to provide or pay for the special education and related
    services but is required to do so under a State's current
    system of arrangements, the local educational agency that did
    so is authorized to claim reimbursement from the public agency
    that failed to provide or pay for such services pursuant to the
    current agreement, and the public agency that initially failed
    to provide or pay for such services is required to meet its
    financial responsibilities.

    Amendments to part D of the Individuals with Disabilities Education Act

        S. 1248 significantly restructures and reorganizes the
    various programs and activities under part D in order to
    enhance their impact on States, school districts, principals,
    teachers, related services providers and parents' efforts to
    improve the academic and functional outcomes of children with
    disabilities.

    Subpart 1, ``state personnel preparation and professional development
            grants''

        The committee is aware that the most significant variable
    within the school related to student achievement is highly
    qualified teachers. The committee is also aware that the
    shortage of highly qualified special education teachers has
    persisted for over two decades and is predicted to continue to
    increase as the demand for special educators continues to grow.
    Many special education students are often provided instruction
    by individuals who are either untrained in working with
    students with their particular disability or do not have
    sufficient content knowledge in the subject they are teaching.
    For example, a student with autism might be taught by a teacher
    who has never been trained in how to provide instruction for
    students with autism, while another child with a disability may
    be receiving direct instruction in mathematics from a special
    education teacher who lacks competency in that subject.
    Ensuring that children with disabilities have access to
    teachers who possess the knowledge (of core content areas) and
    skills (to teach children with varying levels of aptitude) is
    particularly important in light of the fact that the
    accountability requirements in the No Child Left Behind Act
    include children with disabilities.
        As noted earlier in this report, S. 1248 includes a
    definition of highly qualified as applied to special education
    teachers, which acknowledges that special education teachers'
    responsibilities vary widely. Given the shortage of special
    education teachers and the new definition of ``highly
    qualified'' special education teacher, the deadline to ensure
    that all special education teachers employed by public schools
    are highly qualified was extended by one year, specifically the
    end of the 2006-07 school year.
        The committee is aware that, given the expectation to meet
    the 2006-07 deadline, States will need to strengthen their
    personnel preparation and personnel development activities and
    programs. As a result, the committee significantly changed the
    emphasis of the State Improvement Grant Program, by: re-
    designating it as the State Personnel Preparation and
    Professional Development Program (SPPPDP), targeting all
    funding exclusively to personnel preparation and professional
    development, and placing a strong emphasis on supporting
    States' efforts to recruit, train and retain highly qualified
    special education teachers. The committee encourages States to
    coordinate their efforts under this subpart with their efforts
    under NCLB to ensure that both special and regular education
    teachers are highly qualified and possess the knowledge and
    skills to successfully educate children with disabilities.
        In tandem with the emphasis on teachers and personnel
    preparation, under the SPPPDP States are required to partner
    with institutions of higher education in the State. The
    committee intends for States to utilize the expertise of
    institutions of higher education throughout the State to ensure
    the provision of special education pre-service support and
    professional development. Furthermore, it is the intention of
    the committee that, as feasible, several institutions of higher
    education throughout the State participate in the grants,
    reflecting the geographic diversity of the State and ensuring
    the inclusion of the range of expertise in the various
    institutions of higher education.
        Currently, the State Improvement Grant Program is a
    competitive grant program. Under S. 1248, priority in awarding
    SPPPDP grants is to be given to those States with the greatest
    personnel shortages or those States that demonstrate the
    greatest difficulty in meeting the personnel standards outlined
    in section 612(a)(14) and the 2006-07 highly qualified special
    education teacher deadline.
        In their applications, States must provide an assurance
    that they will carry out each of the personnel preparation and
    professional development activities outlined in their
    professional development plan (a plan that is based on an
    assessment of the State and local needs related to preparation,
    ongoing training and professional development of personnel
    serving children with disabilities). This requirement is
    designed to ensure thatthe plan crafted by the State is
    directly tied to the activities the State will actually implement.
        Although the SPPPDP program remains a competitive program
    at current funding levels, S. 1248 includes a provision that
    would trigger the program into a formula grant program once the
    appropriation reaches $100 million, so that every State may
    benefit from the program.
        The committee does not intend to terminate the State
    Improvement Grants that are currently in effect. Therefore, the
    bill includes language that ensures that current grant
    recipients under the SIG program are permitted to finish out
    their grant cycle. However, nothing in this section would
    prohibit these recipients from submitting a revised plan to
    continue out their grant cycle in accordance with S. 1248.

    Subpart 2, scientifically based research, technical assistance, model
            demonstration projects and dissemination of information

                Comprehensive plan
        The bill includes minor modifications to the requirement
    that the Department of Education develop a comprehensive plan
    for the various activities under Subpart 2. One of those
    modifications was the elimination of the requirement that
    Secretary, in developing a plan, consult with a laundry list of
    individuals. Rather, S. 1248 directs the Secretary to develop
    and implement the plan after receiving input from interested
    individuals with relevant experience. The committee intends
    that at the very least, these individuals include individuals
    with disabilities and experts in the education of students with
    disabilities.

                Technical assistance and demonstration projects
        The bill includes a number of changes to the technical
    assistance section of Part D. Notably, unlike current law, the
    Secretary is now required to support activities that include:
    positively addressing and changing the inappropriate behavior
    of students; improving the alignment and development of valid
    and reliable assessment methods, including alternative
    assessments, for assessing adequate yearly progress as defined
    under NCLB; providing information to both regular and special
    education teachers to address the different learning styles of
    children with disabilities; and providing information on
    effective transition from school to post-school settings. The
    bill also includes a heavy emphasis that technical assistance
    and demonstration projects be rooted in scientifically based
    research.
        In light of the fact that the vast majority of children
    with disabilities are served in a school environment and that
    changes to instructional practice yield the greatest likelihood
    in improving academic and functional outcomes of students with
    disabilities, S. 1248 stipulates that as appropriate, priority
    should be given to those applications that propose to serve
    teachers and school personnel directly in the school
    environment or that strengthen the capacity of States and
    schools districts to improve instruction practices of personnel
    serving children with disabilities.

                Personnel development
        Under S. 1248, Personnel Development to Improve Services
    and Results for Children with Disabilities (section 664) has
    been expanded. S. 1248 contains two new program authorities,
    specifically a program for beginning special education teachers
    and a program to assist general educators in meeting the needs
    of children with disabilities. These improvements in the law
    are made in acknowledgement of the pressing personnel needs
    that States face in ensuring an adequate supply of highly
    qualified special education teachers, as well as general
    educators who are skilled in working with students with
    disabilities and related services personnel.
        The committee intends that the activities of grant
    recipients under section 664 address the State and local
    personnel needs identified in the State plan under Subpart 1.
        The committee recognizes that one of the personnel
    challenges faced by States is the retention of special
    educators who are new to the profession. The turnover rate of
    special education teachers in the first 3 years is
    exceptionally high--much higher than for beginning general
    education teachers. Annual attrition rates for special
    education teachers are 6 percent for those who leave the field
    entirely and an additional 7.4 percent who transfer to general
    education, according to the National Clearinghouse for
    Professions in Special Education. High turnover is costly both
    for school districts, which must repeatedly fill the same
    positions, and for students, who lose the advantage of being
    taught by experienced special education teachers.
        As a result of the recognition of the attrition problem
    that challenges the special education profession, S. 1248
    establishes the Beginning Special Educators Program in section
    664(e) of the bill. The program supports adding a 5th year
    clinical learning opportunity to existing programs and
    professional development schools that provide high quality and
    on-going mentoring to new special education teachers so that
    they will remain in the field.
        The second new program authority is designed to help ensure
    that general educators (including principals and
    administrators) have the skills, knowledge, and leadership
    training to improve results for children with disabilities in
    their schools and classrooms. Funding under the State Personnel
    Preparation and Professional Development Grants as well as this
    new program authority in section 664(f) will support general
    educators in developing needed skills to work with students
    with disabilities. However, the committee notes that funds
    available under NCLB should be the primary source of support
    for general educators in receiving training in working with
    students with disabilities.
        Another aspect of the shortage of special education
    teachers is the shortage of special education faculty. The
    number of special education doctorates produced annually has
    decreased by 30 percent in the last 20 years. One third of
    special education faculty openings remain unfilled every year.
    Twenty percent of those positions have been eliminated, thus
    diminishing the nation's training and research infrastructure
    in specialeducation. As a result of this steady decline in
    special education faculty, the bill retains the Leadership Preparation
    program under section 664(d).

                Studies and evaluations
        With the passage of the Education Sciences Reform Act of
    2002 (ESRA), Congress noted the importance of separating
    research and evaluation functions from program implementation.
    As a result, the Institute of Education Sciences was created.
    All research and evaluations of federal education programs are
    to be conducted by the Institute. Requiring that evaluations
    and studies of federal programs are conducted by an entity
    other than the program office helps to ensure the non-biased,
    balanced evaluation of the effects of federal education
    programs.
        In keeping with this emphasis on moving all research
    functions to the Institute, S. 1248 stipulates that the
    Director of the Institute of Education Sciences is responsible
    for carrying out the various studies and evaluations (including
    the national assessment) on the various activities carried out
    under IDEA. Although the bill grants authority over studies and
    evaluations to the Director of the Institute for Education
    Sciences, the committee expects the Director to engage in
    ongoing and substantive collaboration with the Assistant
    Secretary for Special Education and Rehabilitative Services in
    proposing priorities for all studies and evaluations authorized
    and conducted under this section.

                Study on ensuring accountability for students with
                        significant disabilities
        The 1997 law required States to develop and implement
    alternate assessments for students unable to participate in
    regular assessments. Since 1997, many States have developed
    exemplary alternate assessment programs, while others continue
    to struggle with assessing children with significant
    disabilities. The committee believes the successful alignment
    of alternate assessments with State academic content and
    achievement standards (including as appropriate alternate
    achievement standards) is a necessary component to ensuring
    accountability for the performance of all children with
    disabilities, including those with significant disabilities.
    Therefore, S. 1248 includes a new comprehensive study, in
    section 665(c), on the issue of alternate assessments. The
    study should be designed to provide data on the types and
    effectiveness of existing alternate assessment and to improve
    the technical quality of these assessments. The committee
    intends that the findings of the study serve as a resource to
    States and local educational agencies in developing valid and
    reliable alternate assessment instruments and procedures in
    order to accurately measure student progress and outcomes
    specific to individualized instructional needs and to ensure
    accountability for such students.

                Activities to address different learning styles
        The committee is interested in professional development
    programs that prepare school personnel to use a
    neurodevelopment framework to recognize, understand, and manage
    students who struggle to find school success because of
    differences in learning. The committee is also interested in
    educational evaluations that provide a more in-depth profile of
    a student's neurodevelopmental strengths and weaknesses.
    Finally, the committee supports research that could determine
    the impact of such professional development and educational
    evaluation programs on student outcomes; on economic benefits
    to special education service delivery through more effective
    pre-referral services, and finally, on teacher recruitment and
    retention.

    Subpart 3, supports to improve results for children with disabilities

                Parent training and information centers
        The committee recognizes the critical role that parent
    training and information centers (PTIs) play in helping parents
    and schools work together to ensure that children with
    disabilities receive the educational and related services
    necessary to improve educational performance. The committee has
    made minor revisions to emphasize that PTIs should encourage
    parents and schools to work in the most cooperative and
    effective manner possible, to help children with disabilities
    meet developmental and functional goals, as well as challenging
    academic achievement goals that have been established for all
    children. In particular, the committee hopes that PTIs will
    encourage parents to explore and take advantage of alternative
    methods of dispute resolution, as well as inform parents of
    their rights and responsibilities under IDEA. The committee
    also envisions the involvement of PTIs in helping parents
    prepare for resolution sessions as now required under section
    615(f)(1)(B) of the bill, in the hope that more disputes can be
    resolved before the parties must resort to a due process
    hearing.
        Section 671(e) changes the 1997 law to ensure that the
    Secretary makes an award to at least one PTI in each State. If
    the Secretary makes multiple awards in a large State, those
    awardees must demonstrate that they will coordinate services
    and supports among themselves. In addition, the committee has
    limited the definition of PTI to only groups whose mission is
    to serve families of children and youth with a full range of
    disabilities. The use of other organizations with a narrower
    focus, operating with special governing committees, has proven
    to be unworkable and ineffective.
        The committee heard extensively from Community Parent
    Resources Centers (CPRCs) that the Department of Education's
    awards to CPRCs are for a considerably shorter length of time
    than with PTIs. This has created an undue hardship for CPRCs,
    as they are forced to spend more of their time reapplying for
    grants, which takes time and resources away from their mission
    of serving underserved parents of children with disabilities.
    The committee encourages the Department to reexamine its
    contract practices with CPRCs, and consider increasing the
    length of its grants with these entities.
        Section 673 limits technical assistance awards to parent
    organizations, as the existing system has proven itself to be
    an effective model for over 15 years. The national technical
    assistance system in place has the capacity to identify new
    research, best practices, and policies, and disseminate them to
    the entire network of parent centers. Parent-led technical
    assistant providers have credibility with PTIs, as they can
    understand the challenges of providing parent-to-parent support
    and have the personal expertise to address the needs and
    problems of PTIs.
        The bill also requires the national technical assistance
    grantee to establish no fewer than 4 regional centers from PTIs
    and CPRCs receiving assistance under IDEA.These regional
    centers shall be selected on the basis of the center's willingness to
    be a regional parent center; demonstrated expertise in delivering the
    required services; demonstrated capacity to deliver the activities; and
    a history of collaboration with other parent organizations. In
    addition, the national grantee must also develop collaborative
    agreements with geographically appropriate Regional Resource Centers.

    Section 674. Technology development, demonstration, and utilization;
            and media services

        The committee believes that the internet can be an
    important educational tool for students with cognitive
    disabilities and that developing internet literacy can assist
    students with cognitive disabilities in developing effective
    communication skills and increasing academic and functional
    skills.
        The committee intends that the Secretary primarily support
    educational media activities that are appropriate for use in
    the classroom. It is critical that children with disabilities
    have full access to the various educational media that are used
    in school settings. Therefore, funds are available under this
    section for grants to caption and/or video describe television
    programs, videos, news, or other materials, as well as emerging
    technologies such as CDs, DVDs, video streaming and other forms
    of multimedia.
        Congress has already addressed the broader need to expand
    media access for deaf or hard of hearing and blind or visually
    disabled persons in non-classroom settings. The Television
    Decoder Circuitry Act of 1990, requires all new television sets
    to contain a decoder chip that is capable of displaying closed
    captioned television transmissions. The Telecommunications Act
    of 1996 (along with a 1997 FCC rulemaking) also contains
    extensive requirements for the provision of closed captioning,
    mandating that most television programming be closed captioned
    by 2006, and requiring captioning of gradually increasing
    percentages of programming before that date. All program
    distributors, providers, and owners must comply with this
    Telecommunications Act closed captioning mandate. Under the
    terms of this mandate, 100 percent of new programming must be
    captioned by January 1, 2006, while 75 percent of non-exempt
    programming produced or aired before January 1, 1998 must be
    closed captioned by 2008. The FCC's limited exemptions under
    this rule include advertisements under 5 minutes in length,
    promotional and interstitial programming, limited late-night
    programming, and programming by networks that have not existed
    for at least 4 years. In addition, since 2000, 47 CFR section
    79.2 has required all video programming distributors (including
    broadcasters, cable operators, and satellite television
    services) to make ``emergency information'' accessible to
    persons with hearing and vision disabilities. Under this rule,
    ``emergency information'' is considered information that helps
    to protect life, health, safety, or property--and can include
    information about immediate weather situations or other
    emergencies. In light of such steps that have already been
    taken to expand media access generally, the committee believes
    that the Department of Education should focus its resources
    under the Educational Media Services program on the goal of
    promoting full access for children with disabilities to
    educational materials used in the classroom. The bill will
    ensure that the Department focuses resources in this way by
    requiring the Secretary to support video description, open
    captioning, and closed captioning of television programs,
    videos, or other materials that are appropriate for use in the
    classroom setting, and by only allowing support for news until
    September 30, 2006, when such services are not provided by the
    producer or distributor of such materials, or when those
    services have been fully funded by other sources.
        Although open and closed captioning were developed
    specifically for the use of individuals who are deaf or hard of
    hearing, researchers studying means by which to increase
    literacy are exploring the possibility that captioning can also
    be used as an effective tool to assist children without
    disabilities who are not proficient readers. Research being
    conducted includes an examination of children for whom English
    is a second language, as well as children who are learning
    disabled. Various studies have indicated that captioning
    assists in the development of reading vocabulary and
    comprehension. These studies support a finding that captioning
    instructional materials also assists students who are not deaf
    and hard of hearing. The committee believes that captioning is
    an effective tool that can be used to promote acquisition of
    vocabulary and enhanced reading comprehension for all students
    in the classroom.

                Interim alternative educational settings, behavioral
                        supports, and whole school interventions
        S. 1248 creates a new subpart (sections 681-85) which
    authorizes the Secretary to award competitive grants to
    establish or expand behavioral supports and whole school
    behavioral interventions activities. The program is aimed at
    improving services and ultimately, academic, social, and where
    appropriate, functional outcomes for children with behavioral
    and emotional disabilities, who represent 11 percent of
    America's youth.
        Children with disabilities who also have significant
    social, emotional, and/or behavioral needs face the greatest
    challenges for our educators. Without effective interventions,
    these students are more likely to experience long-term negative
    outcomes, including vocational and mental health problems,
    throughout their lives. School personnel have identified a need
    for ongoing training to recognize and/or address the problems
    of these children.
        According to the U.S. Department of Education, students
    with emotional disabilities have the lowest grade point
    average, fail more courses, are retained more, have the highest
    rate of absenteeism, and are more likely to drop out of school
    than any other group of students with disabilities.
    Approximately two-thirds of these children also have Attention
    Deficit/Hyperactivity Disorder. These students--and all others
    with behavioral challenges--need and deserve effective,
    research-based interventions to succeed in school and in life.
        According to the Study of Personnel Needs in Special
    Education, over half of beginning teachers who serve primarily
    students with emotional disturbance are not fully certified for
    their positions, and the vast majority of regular education
    teachers receivelittle to no training in how to help special
    needs students with behavioral and emotional problems.
        This program authorizes $50 million to address the pressing
    need for well-trained teachers, administrators and support
    staff to help behaviorally-challenged students with
    disabilities to succeed in school. These funds will go directly
    to local educational agencies, who may partner with other LEAs,
    community-based organizations with a proven record of helping
    children with disabilities with behavioral problems, and/or
    other mental health providers. The funds may be used for
    providing effective, research-based training for teachers,
    administrators, and support staff in positive behavioral
    interventions and classroom and student management techniques;
    providing early screening efforts for students at-risk for
    emotional and behavioral difficulties; attracting and
    retraining high-quality staff in interim alternative
    educational settings; promoting better coordination between
    schools, parents, juvenile courts, child welfare,
    organizations, primary care providers and mental health
    providers; reducing the staff-child ratio in interim
    alternative educational settings; providing counseling service
    in interim alternative educational settings; and allowing for
    behavioral transition services to help students reintegrate
    into their regular school settings; and more.
        This provision also requires the Department of Education to
    maintain a website that is accessible to parents, teachers, and
    administrators that contains information on the best practices
    and supports available to help address the needs of these
    children. The committee hopes that this website will be user
    friendly and contain valuable, practical information about
    proven methods for helping children with disabilities who also
    have behavior problems succeed in school and in life.
        Each organization or consortium of organizations receiving
    a grant under this subpart is required to submit an evaluation
    of the effectiveness of the activities supported by the grant.
    It is the committee's hope that the lessons learned from these
    evaluations will be analyzed and posted on the website so that
    all interested people can benefit from the reports.

             TITLE II--AMENDMENTS TO THE REHABILITATION ACT OF 1973

        With unemployment rates of adults with disabilities
    approaching 70 percent, the need to improve the transition of
    youth with disabilities from school to postsecondary education
    and employment is significant. With an increased focus on
    improved results in education, providing a successful
    transition to post-school employment or education is an
    essential measure of accountability for students with
    disabilities.
        A 2003 General Accounting Office report states that poor
    linkages between schools and youth service providers and a lack
    of community work experience impedes the successful transition
    of youth. Without the involvement of agencies that support
    youth with disabilities, the responsibility for transition is
    left to special education teachers who may not have the
    capacity or training to access the necessary community
    resources.
        The major Federal program that can assist youth with their
    postsecondary transition is the Vocational Rehabilitation (VR)
    program under the Rehabilitation Act of 1973, as administered
    by the Department of Education. The involvement of the VR
    program in transition provides students with disabilities and
    special education teachers with assistance, training, and
    access to community resources that can be critical to success.
    However, many youth with disabilities who are eligible for VR
    services while in high school do not access them because they
    lack knowledge of the program or the program does not have the
    capacity to serve all those who are eligible.
        To improve and expand the provision of vocational
    rehabilitation service to students with disabilities during
    their transition years, Title II of S. 1248 makes certain
    amendments to the Rehabilitation Act. The committee adds
    definitions of the terms ``student with a disability'' and
    ``students with disabilities'' to clarify the meaning of the
    terms in the Rehabilitation Act. For the purposes of that Act,
    a student with a disability is an individual with a disability
    attending an elementary or secondary school who is not younger
    than 14 and not older than 21; who has been determined to be
    eligible for assistance under section 102(a) of the
    Rehabilitation Act; is eligible for, and is receiving, special
    education under part B of the Individuals with Disabilities
    Education Act or is an individual with a disability, for
    purposes of section 504 of the Rehabilitation Act.
        To improve planning and coordination, the section 203(a) of
    the bill amends section 101(a)(15) of the Rehabilitation Act to
    require States to address the needs of students with
    disabilities as a part of the State's comprehensive Statewide
    assessment of vocational rehabilitation needs and to describe
    the methods to be used to expand and improve services to
    students with disabilities, including the coordination of
    services designed to facilitate the transition of such students
    to post-secondary education or employment.
        Section 203(b) of the bill adds a new paragraph to section
    101(a) of the Rehabilitation Act to require each State to
    assure that it has implemented the strategies developed as part
    of its assessment and planning process for expanded transition
    services. The bill establishes a trigger to target $50 million
    for the expanded transition services beginning in the first
    year that the appropriation under section 100(b) exceeds the
    FY2004 appropriation by $100 million. States would be required
    to use these targeted funds to carry out programs or activities
    to improve and expand services that facilitate student
    transition, improve the achievement of post-school goals,
    support training and technical assistance to personnel, support
    outreach activities, and to provide vocational guidance, career
    exploration services, and job search skills to students with
    disabilities.
        The committee intends that students with disabilities
    served with targeted funds provided under new section 110A of
    the Rehabilitation Act be subject to the ``order of selection''
    requirement in section 101(a)(5) as are other eligible
    individuals served with funds under section 100(b). However,
    the committee expects that States would implement a separate
    order of selection based on the State agency's ability to serve
    all eligible students with disabilities with the targeted funds
    available under section 110A.
        Under current law State VR agencies may provide
    consultative and technical assistance services to assist
    educational agencies in planning for the transition of students
    with disabilities from school to post-school activities. In a
    transition services expansion year, Section 204 would expand
    the authorized activities under the services to groups
    authority to also include the provision of training and
    technical assistance of local educational agency personnel and
    VR State agency personnel responsible for the planning and
    provision of services to students with disabilities.
        Section 204 also authorizes State VR agencies to provide
    services to groups of IDEA and ``504 students'' to assist them
    in their transition from school to post-school activities.
    Although the committee believes that most of these students
    would be eligible for VR services, the new provision would
    allow the State agency to provide group services for these
    students without having to determine their eligibility under
    section 102(a). For example, the State agency could use its
    Title I funds to provide a career exploration or job seeking
    skills workshop for a group of IDEA and 504 students without
    the burden of requiring that an eligibility determination be
    made for each of the students who wishes to participate in the
    group.
        Section 205 of the bill amends the program's evaluation
    standards and performance indicators in section 106 of the
    Rehabilitation Act to require that they include measures of the
    program's performance with respect to the transition of to the
    post-school activities, and the achievement of the post-school
    goal, of students with disabilities served under the program.

           TITLE III--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

        As previously mentioned, with the passage of the Education
    Sciences Reform Act of 2002, Congress noted the importance of
    separating research and evaluation functions from program
    implementation. As a result, S. 1248 moves research authority
    on special education issues from the Office of Special
    Education Programs to the Institute of Education Sciences
    (IES). As all other education research is to be conducted by
    IES, the committee believes it is important that special
    education research be conducted by IES as well.
        The committee wishes to note that unlike most other
    education research, which is conducted by the National Center
    for Education Research, S. 1248 establishes a specific center
    just for special education research, specifically the National
    Center for Special Education Research. The bill further
    stipulates that the Special Education Research Center be headed
    by a Commissioner who has a high level of experience in the
    fields of research, and the education of children with
    disabilities. The bill also requires the Commissioner to
    collaborate with the Assistant Secretary for Special Education
    and Rehabilitative Services in developing a research plan. This
    requirement is consistent with the committee's expectation that
    special education and early intervention research will continue
    to be closely linked with the functions of the Office of
    Special Education and Rehabilitative Services. The committee
    intends for the Secretary to ensure continued and substantive
    collaboration between the Center and the Office of Special
    Education and Rehabilitative Services.
        The committee expects the Center's research plan to support
    research that addresses the early intervention, special
    education, and transition needs of children with disabilities
    and their families so that State and local agencies may be
    better equipped to serve these children and their families.
        One of the reasons research is moved from the OSEP to IES
    is to improve the overall quality and rigor of special
    education research and to ensure that such research be held to
    the same high standards of validity and reliability that govern
    all other research at the Department of Education.
        The committee intends that the Commissioner conduct
    research regarding children with significant disabilities.
    However, the committee acknowledges that conducting research on
    the needs of students with significant disabilities often
    requires the use of a broad range of research designs and
    methodologies, including single subject designs and rigorous
    qualitative research. The Commissioner is expected to examine
    and take into account the methodological challenges of research
    on students with significant disabilities in carrying out the
    research responsibilities of the Center.
        On the issue of disseminating research conduced by IES, the
    committee expects the Department to disseminate the research
    findings of the Center for Special Education Research through
    the programs of technical assistance administered by the
    Department, including through the systems of technical
    assistance and dissemination, model demonstrations, parent
    training and information centers, and community parent resource
    centers established under Part D of the Act. The committee also
    encourages linkages between the Center and other programs
    conducting disability research, such as the National Institute
    on Disability and Rehabilitation Research, and the University
    Centers for Excellence in Developmental Disabilities Education,
    Research, and Service established by P.L. 106-402, the
    Developmental Disabilities Assistance and Bill of Rights Act of
    2000.
        Finally, the committee wishes to highlight that S. 1248
    requires the Secretary of Education to take the appropriate
    steps necessary to ensure an orderly transition of special
    education research from OSEP to IES. Furthermore, the bill
    stipulates that the Secretary continue research awards that
    were made under OSEP, prior to the new law going into effect,
    in order to ensure that existing research grants are not
    adversely impacted by the transition. The committee expects the
    Secretary to provide information to the committee regarding the
    progress of the transition of research activities from OSEP to
    IES.

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

        Title IV of S. 1248 establishes a Commission to study,
    evaluate, and make appropriate recommendations to the Congress
    and the Secretary on universal design and accessibility of
    curriculum and instructional materials and outlines the purpose
    of the Commission.

                               VI. Cost Estimate

        Due to time constraints the Congressional Budget Office
    estimate was not included in the report. When received by the
    committee, it will appear in the Congressional Record at a
    later time.

                        VII. Regulatory Impact Statement

        The committee has determined that there will be no increase
    in the regulatory burden imposed by this bill.

               VIII. Application of Law to the Legislative Branch

        S. 1248 improves State grant programs and reauthorizes
    related support programs that assist in providing a free
    appropriate public education to children with disabilities;
    amends the Rehabilitation Act of 1973 to improve and expand the
    provision of vocational rehabilitation services to students
    with disabilities during their transition years; moves research
    authority on special education programs from the Office of
    Special Education Programs to the Institute of Education
    Sciences; and establishes a Commission to study, evaluate, and
    make recommendations regarding universal design and the
    accessibility of curriculum and instructional materials. As
    such, S. 1248 has no application to the legislative branch.

                        IX. Section-by-Section Analysis

        Section 1 of the bill provides that the title of the Act is
    the ``Individuals with Disabilities Education Improvement Act
    of 2003.''
        Section 2 provides that the legislation is organized into
    four titles: title I, Amendments to the Individuals with
    Disabilities Education Act; title II, Amendments to the
    Rehabilitation Act of 1973; title III the National Center for
    Special Education Research; and title IV, the Commission on
    Universal Design and the Accessibility of Curriculum and
    Instructional Materials.
        Section 101 of the bill amends the current provisions of
    the Individuals with Disabilities Education Act 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 key terms used in this title,
    including: Assistive Technology Device, Assistive Technology
    Service, Child with a Disability, Core Academic Subject,
    Educational Service Agency, Elementary School, Equipment,
    Excess Costs, Free Appropriate Public Education, Highly
    Qualified Special Education Teacher, Consultative Services,
    Indian, Indian Tribe, Individualized Education Program,
    Individualized Family Service Plan, Infant or Toddler with a
    Disability, Institution of Higher Education, Limited English
    Proficiency, Local Educational Agency, Native Language,
    Nonprofit, Outlying Area, Parent, Parent Organization, Parent
    Training and Information 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
    a 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, issuing policy letters by the Department of
    Education, and the publication of correspondence from the
    Department of Education describing interpretations of this Act.
        Section 608 requires States receiving funds under this Act
    to ensure that any State rules, regulations and policies
    relating to this Act conform to the purposes of this Act and to
    identify in writing to its local educational agencies and the
    Secretary any rule, regulation, or policy as a State-imposed
    requirement that is not required by this Act and Federal
    regulations. State rules, regulations and policies under this
    Act shall support reform designed to enable children with
    disabilities to meet State student academic achievement
    standards.
        Section 609 requires the Comptroller General to conduct a
    review of the Federal, State, and local requirements relating
    to the education of children with disabilities to determine
    which requirements result in excessive paperwork and to make
    strategic proposals for reducing paperwork burdens on teachers.

    Part B

        Section 611(a) authorizes the Secretary to provide grants
    to the States and outlying areas and funds to the Secretary of
    the Interior to provide special education and related services
    to children with disabilities and specifies the maximum amount
    available for awarding grants.
        Section 611(b) requires a reserve from funds appropriated
    under subsection (i) to provide assistance to the outlying
    areas and to provide each freely associated State that meets
    relevant requirements a grant equal to the amount it received
    under this part in FY2003.
        Section 611(c) specifies the proportion of funds to be
    provided to the Secretary of the Interior.
        Section 611(d) includes the allotment formula for making
    part B grants to States based on an initial allotment of the
    State's FY1999 grant with 85 percent of remaining funds
    distributed on population, 15 percent of remaining funds
    distributed on poverty and certain limitations on how much
    States' grants can increase from one year to the next.
        Section 611(e) specifies the States' use of part B funds,
    including the use of funds for State administration and other
    State-level activities. State reserves for administration are
    limited to the greater of the amount reserved for FY2003 or
    $800,000 increased by inflation for subsequent years. State
    reserves for other State-level activities are linked to
    percentages of the overall grant for FY2004 and FY2005, with
    reserves thereafter through FY2009 increased by inflation.
    States must also reserve 2 percent of their State grant (less
    the amount reserved for State administration) to establish a
    risk pool, or fund an existing risk pool, to provide funds to
    LEAs serving high-need children with disabilities.
        Section 611(f) specifies the allotment formula for
    subgrants to LEAs, which is similar to the State grants
    formula.
        Section 611(g) contains definitions of ``average per-pupil
    expenditure'' and ``State'' applicable to this section.
        Section 611(h) addresses the use of funds provided to the
    Secretary of the Interior for the education of children with
    disabilities living on reservations or enrolled in elementary
    or secondary schools for Indian children operated or funded by
    the Secretary of the Interior.
        Section 611(i) authorizes the appropriation of such sums as
    may be necessary for the purpose of carrying out part B, except
    for section 619, which authorizes services for preschool
    children with disabilities ages 3 to 5.
        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; Obligations Relating to and Methods
    for Ensuring Services, including designation of financial
    responsibility; Procedural Requirement Relating to LEA
    Eligibility; Personnel Standards; Performance Goals and
    Indicators (including provisions to align IDEAwith the No Child
    Left Behind Act (NCLBA)); Participation in Assessments (including
    provisions to align IDEA with the NCLBA); Supplementation of State,
    Local and other Federal Funds; Maintenance of State Financial Support;
    Public Participation; State Advisory Panel; Supervision and Expulsion
    Rates; and Accessibility Standards for Instructional Materials.
        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 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 treat as local funds a portion of
    their part B grant for the purposes of meeting non-supplanting
    and maintenance of effort requirements. The section also
    permits LEAs to use the part B funds for various specified
    purposes, such as early intervention services and case
    management and administration. The section addresses the
    treatment of charter schools and the disabled children that
    they serve under part B, including equitable provision of on-
    site services and funding to such schools.
        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 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 15 percent of
    its annual part B allotment for early intervening services for
    children who have not been identified as needing special
    education but who need additional academic and behavioral
    support to succeed in school.
        Section 613(g) 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(h) 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(i) permits States to require LEAs to include in
    a disabled child's records information about disciplinary
    action taken against the child to the same extent that such
    information is included in the records of other children.
        Section 613(j) permits States that pay at least 80 percent
    of non-Federal special education costs to treat portions of
    Federal funds as general funds to support educational purposes
    described in the Elementary and Secondary Education Act of 1965
    and for other education-related purposes.
        Section 614(a) sets out requirements relating to initial
    evaluations (as requested by the child's parents, the LEA, the
    SEA, or another State agency), parental consent and refusal or
    failure to consent (in which case the LEA is not considered in
    violation of the requirement to provide FAPE), and
    reevaluations (which shall occur not more frequently than once
    a year but at least every 3 years, unless the parent and the
    LEA agree that more frequent or less frequent reevaluations are
    needed).
        Section 614(b) includes requirements for procedures
    relating to providing notice to parents about evaluations, and
    conducting evaluations, including that an LEA shall not be
    required to consider a severe discrepancy between achievement
    and intellectual ability in determining whether a child has a
    specific learning disability.
        Section 614(c) includes additional requirements relating to
    evaluating and reevaluating a child's eligibility under part B;
    reviewing existing evaluation data, obtaining parental consent
    for reevaluations, actions to take if additional data are not
    needed, and evaluations before changing eligibility (except
    that such evaluation is not required if eligibility is to be
    changed because of graduation or the age of eligibility for
    FAPE has been exceeded).
        Section 614(d) includes definitions of ``individual
    education program'' (IEP), which includes the child's current
    levels of performance, measurable annual goals, the measurement
    of progress on these goals, the special education and related
    services to be provided, an explanation if the child is not to
    be educated with nondisabled children, accommodations that will
    be provided for assessments, and post-IDEA goals and transition
    services when the child reaches the age of 14. The section
    defines the ``IEP Team''; which develops and re-evaluates the
    IEP and which includes the child's parent, at least one special
    education teacher and one regular education teacher (if the
    child participates in the regular classroom environment), LEA
    representative, other individuals with special expertise, and
    the child (if appropriate). Not all team members need to attend
    all IEP meetings if there is agreement among the parent, the
    LEA, and the team member in question. The section requires that
    an IEP be in effect at the beginning of each school year for
    each child with a disability 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
    permits the LEA to offer the option of a 3-year IEP when a
    child with a disability reaches the age of 18. Finally, the
    section includes provisions relating to children with
    disabilities in adult prisons.
        Section 614(e) 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 614(f) permits alternative means of holding IEP
    meetings, such as video conferencing and conference calls, if
    the parent and the LEA agree.
        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
    parents 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 records on their child, to
    participate in meetings, and to obtain an independent
    educational evaluation of the child; procedures to protect the
    rights of the child whenever the parents are not known, cannot
    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, whenever
    the LEA proposes to initiate or change or 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; an opportunity for mediation and
    to present complaints; procedures that require either party, or
    the attorney representing a party, to provide due process
    complaint notice, including information about the child,
    contact information in the case of homeless child, the problem,
    and a proposed resolution known and available at the time; a
    requirement that a party may not have a due process hearing
    until the party or the attorney representing the party files
    the required notice; a requirement that the LEA send a prior
    written notice in response to a parent's due process complaint
    notice if the LEA has not sent such a prior written notice to
    the parent regarding the subject matter of the complaint; and
    procedures that require the SEA to develop a model form to
    assist parents in filing a complaint and due process complaint
    notice.
        Section 615(c) describes the content of the prior written
    notice provided by the LEA and requirements regarding the due
    process complaint notice.
        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 parties to a dispute, but provides that it is
    voluntary for both parties, is not used to deny or delay a
    parent's right to a due process hearing under section 615(f),
    or to deny any other rights afforded under part B, and is
    conducted by a qualified and impartial mediator who is trained
    in effective mediation techniques. The section allows LEAs to
    establish procedures to offer to parents and schools who choose
    not to use the mediation process, an opportunity to meet with a
    disinterested party under contract with a parent training and
    information center, community parent resource center, or other
    alternative dispute resolution entity to explain the benefits
    of mediation and encourage its use. The subsection also
    requires the State to maintain a list of qualified mediators,
    requires the State to bear the cost of the mediation process,
    requires that each session in the mediation process shall be
    scheduled in a timely manner and shall be held in a convenient
    location, requires that an agreement reached by the parties
    shall be set forth in a written mediation agreement that is
    enforceable in court, and requires that mediation discussions
    shall be confidential and may not be used as evidence in any
    subsequent due process hearing or civil proceeding. The parties
    to a mediation may be required to sign a confidentiality
    pledge.
        Section 615(f) requires that whenever a complaint has been
    received, the parents or LEA involved in the complaint must
    have an opportunity for an impartial due process hearing
    conducted by the SEA or LEA. The subsection requires that prior
    to the opportunity for a due process hearing, the LEA shall
    convene a meeting with the parents and the IEP team where the
    parents shall discuss their complaint and the LEA is provided
    the opportunity to resolve the complaint. The subsection
    requires the disclosure of evaluations and recommendations
    prior to a due process hearing. The subsection also requires
    that the hearing officer conducting the hearing meet certain
    requirements; the party requesting the due process hearing
    shall not be allowed to raise issues at the hearing that were
    not raised in the notice required by section 615(b)(7) unless
    the other party agrees; nothing shall be construed to preclude
    a parent from filing a separate due process complaint on an
    issue separate from a due process complaint already filed; and
    that the decision of the hearing officer be made on substantive
    grounds based on a determination of whether the child received
    a free appropriate public education, except that in certain
    cases involving procedural violations, a hearing officer may
    find that a child did not receive a free appropriate public
    education. Nothing is to be construed to preclude a hearing
    officer from ordering an LEA to comply with the procedural
    requirements of section 615. The subsection contains a two-year
    time limit on the request for a due process hearing with
    certain exceptions.
        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 a hearing under section 615(f) or (k)
    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. The party bringing the action
    shall have 90 days from the date of the decision of the hearing
    officer to bring the action or, if there is an explicit State
    time limitation, such time as the State law allows. This
    subsection permits the award of attorneys' fees with certain
    exceptions, lists the considerations for reducing attorneys'
    fees, and also provides that a parent of a child with a
    disability may represent their own child in court.
        Section 615(j) provides that, except as provided in
    615(k)(4), the child must remain in the current educational
    setting while any proceedings conducted under this section are
    pending. However, if the child is applying for initial
    admission to a public school, the child shall, with the consent
    of the parents be placed in the public school program until
    completion of the proceedings.
        Section 615(k) provides for the authority of school
    personnel to order a change in placement for a child with a
    disability who violates a code of student conduct for ten
    school days. If a change in placement exceeding ten school days
    is sought and the behavior is not a manifestation of the
    child's disability, the relevant disciplinary procedures
    applicable to children without disabilities may be applied.
    With certain exceptions, within ten school days of a decision
    to change the placement of a child with a disability, the IEP
    team shall determine if the behavior in question was a
    manifestation of the child's disability. The subsection
    provides that where a child with a disability carries or
    possesses a weapon to or at a school, school premises, 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, or has committed serious
    bodily injury upon another person while at school or at a
    school function, school personnel may remove the student to an
    interim alternative educational setting for not more than 45
    school days, regardless of whether the behavior is determined
    to be a manifestation of the child's disability. The subsection
    provides for notification of the parents, and the continuation
    of services. The subsection provides that the alternative
    educational setting shall be determined by the IEP team.
    Appeals of decisions regarding disciplinary action, placement
    or the manifestation determination are provided for the parent,
    or LEA where the LEA believes that maintaining the current
    placementof the child is substantially likely to result in
    injury to the child or others. In addition, the hearing officer has the
    authority to determine whether an action was appropriate and to order a
    change in placement to an appropriate interim alternative educational
    setting for not more than 45 school days if the hearing officer
    determines that maintaining the child's current placement is
    substantially likely to result in injury to the child or to others. The
    subsection also includes provisions on the placement of a child with a
    disability during appeals, protections for children not yet eligible
    for special education and related services, referral to and action by
    law enforcement and judicial authorities, and definitions. The terms
    for which definitions are provided are ``controlled substance,''
    ``illegal drug,'' ``weapon,'' and ``serious bodily injury.''
        Section 615(l) maintains the rights available under the
    Constitution, the Americans with Disabilities Act, title V of
    the Rehabilitation Act and other Federal laws protecting the
    rights of children with disabilities and includes an exhaustion
    provision.
        Section 615(m) allows the State to provide for the transfer
    of rights from the parent to the child with a disability when
    the child reaches the age of majority under State law, unless
    the child has been found to be incompetent under State law.
    This subsection also contains a special rule allowing the State
    to establish procedures for appointing the parents of a child
    to represent the educational interests of the child when the
    child is determined not to have the ability to provide informed
    consent with respect to his or her educational program.
        Section 615(n) allows the parent of a child with a
    disability to elect to receive the notices required under
    section 615 by electronic mail if the public agency makes the
    option available.
        Section 616(a) requires the Secretary to monitor
    implementation of the Act through oversight and a system of
    indicators, to enforce the Act, and to require States to
    monitor implementation of the Act by LEAs and enforce the Act.
    The subsection requires that the primary focus of Federal and
    State monitoring activities shall be on improving educational
    results and functional outcomes for all children with
    disabilities, while ensuring compliance with program
    requirements, with a particular emphasis on requirements
    relating to improving educational results for children with
    disabilities. In addition, monitoring priorities are provided
    as well as permissive areas of review.
        Section 616(b) requires the Secretary to implement and
    administer a system of required indicators that measure the
    progress of the States in improving their performance. This
    system includes a review, using the performance indicators
    established under section 612(a)(15), of the performance of
    children with disabilities on assessments, dropout rates, and
    graduation rates, and comparing their performance with the
    performance and rates for all children. Based on this review
    and a review of the State's compliance plan, the Secretary is
    required to assess the State's progress in improving
    educational results for children with disabilities. Not later
    than one year after enactment, each State must have a
    compliance plan in place that is developed in collaboration
    with, and approved by, the Secretary and includes benchmarks to
    measure progress, and strategies to achieve the benchmarks. In
    addition, the subsection requires the Secretary to review the
    data collection and analysis capacity of States and provide
    technical assistance to improve the capacity of the State to
    meet the data collection requirements.
        Section 616(c) requires the Secretary to examine relevant
    State information and data annually to determine whether the
    State is making satisfactory progress toward improving
    educational results and is in compliance with the Act. If the
    Secretary determines that a State failed to make satisfactory
    progress or failed to meet the benchmarks for two consecutive
    years, the Secretary must notify the State and take action by
    directing the use of State level funds for technical assistance
    and/or withholding not less than 20 percent but not more than
    50 percent of the State's funds for State administration and
    activities. The Secretary is required by this subsection to
    take additional action if at the end of the fifth year after
    approval of the compliance plan the Secretary determined that a
    State failed to meet the benchmarks in the State compliance
    plan and make satisfactory progress in improving educational
    results of children with disabilities in keeping with the
    described indicators. This action shall be one or more of the
    following: seeking to recover funds under section 452 of the
    General Education Provisions Act (GEPA); withholding (after
    notice and an opportunity for a hearing) payments to the State;
    referral for appropriate enforcement action, including referral
    to the Department of Justice; suspending payments to a
    recipient, or suspending the authority of the recipient to
    obligate Federal funds. In addition, the subsection provides
    that if, at any time, the Secretary determines that a State is
    not in substantial compliance, or there is a substantial
    failure to comply with any conditions of the LEA's or SEA's
    eligibility, the Secretary shall take one or more of the
    following actions: request that the State prepare a corrective
    action plan; impose special conditions on the State's grant;
    require the State to enter into a compliance agreement under
    section 457 of GEPA; recovery of funds under section 452 of
    GEPA; withholding (after notice and an opportunity for a
    hearing) any further payments to the State; referral for
    appropriate enforcement action, including referral to the
    Department of Justice; suspending payments to a recipient; or
    suspending the authority of the recipient to obligate Federal
    funds. If the Secretary determines that a State is in egregious
    noncompliance or is willfully disregarding the provisions of
    the Act, the Secretary may take one or more of the actions
    described regarding substantial noncompliance and, in addition,
    may institute a cease and desist action under section 456 of
    GEPA and/or refer the case to the Office of the Inspector
    General. The subsection requires the Secretary to report to
    Congress within 30 days of taking enforcement action regarding
    egregious noncompliance or substantial noncompliance. If the
    Secretary withholds payments as an enforcement action, the
    subsection provides that the Secretary may determine that the
    withholding be limited to programs or projects affected by the
    failure or that the SEA shall not make further payments to
    certain LEAs or State agencies. The subsection provides for
    judicial review with the appropriate U.S. court of appeals if a
    State is dissatisfied with the Secretary's final action
    regarding State eligibility and for review by the U.S. Supreme
    Court. Finally, the subsection provides that the findings of
    fact by the Secretary, if supported by substantial evidence,
    shall be conclusive but the court may remand to the Secretary
    for further evidence.
        Section 616(d) provides rules regarding situations
    involving children with disabilities who are incarcerated in
    adult prisons where there is divided State agency
    responsibility and the Secretary finds failure to substantially
    comply with the Act.
        Section 616(e) requires the SEA to monitor and enforce
    implementation of the Act and implement a system of monitoring
    the benchmarks in the State's compliance plan and requires LEAs
    to monitor and enforce implementation. The subsection also
    requires the SEA to prohibit the LEA from treating funds under
    the Act as local funds under section 613(a)(2)(C) for any
    fiscal year if the SEA determines that a LEA is not meeting the
    requirements of the Act.
        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; the hiring of personnel to conduct
    data collection and evaluation activities; and the publishing
    and wide distribution of a model IEP form, a model IFSP form, a
    model form of notice of procedural safeguards, and a model of
    prior written notice.
        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, including the number
    and percentages of children by gender, limited English
    proficiency receiving FAPE, the number of disciplinary actions,
    the number of due process complaints, the number of hearings
    requested,and the number of mediations held. The section
    permits the Secretary to provide technical assistance to States to
    ensure compliance with data collection and reporting requirements. 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 3
    through 5, residing in its jurisdiction.
        Section 619(c) includes the allotment formula for the
    Preschool Grants program, which first provides States with
    grant amounts received for FY1997 and then distributes 85
    percent of remaining funds based on total population ages 3 to
    5 and 15 percent of remaining funds based on children ages 3 to
    5 living in poverty, with certain limitations on minimum and
    maximum grants.
        Section 619(d) describes the general amount of Preschool
    Grant funds that may be retained by the State, which is 25
    percent of a State's grant for FY1997, annually adjusted by the
    rate of inflation or the rate of increase in the State's grant
    (whichever is less).
        Section 619(e) specifies the use of Preschool Grant funds
    for State administration, including use of funds for
    administering part C services for infants and toddlers with
    disabilities, if the SEA is the lead agency for part C.
        Section 619(f) specifies the use of Preschool Grant funds
    for other State-level activities, including early intervention
    services for children eligible under this section who
    previously received services under part C.
        Section 619(g) provides for subgrants to LEAs, which
    involves initial grants based on 1997 amounts, with 85 percent
    of remaining funds distributed based on public and private
    school enrollment and 15 percent based on numbers of children
    living in poverty.
        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 such sums as may be necessary for
    carrying out section 619.

    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'', ``developmental
    delay,'' ``early intervention services,'' and ``infant or
    toddler with a disability'' (including, at State discretion,
    children with disabilities eligible for services under section
    619 who had previously received services under part C).
        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 (with specified minimum
    percentage delays); a timely, comprehensive, multidisciplinary
    evaluation of each infant or toddler; an Individualized Family
    Service Plan (IFSP) in accordance with section 636; a
    comprehensive child find system consistent with part B; a
    public awareness program; a central director; 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 unless a specific
    outcome for the infant or toddler cannot be satisfactorily met
    in such an environment.
        Section 635(b) permits the State to establish a policy
    whereby parents of children with disabilities eligible under
    section 619 may choose to continue early intervention services
    through the Part C program. The policy is jointly developed and
    implemented by the SEA and the part C lead agency (if other
    than the SEA). The services must include an educational
    component-provided in accordance with the IFSP-that promotes
    school readiness and incorporates pre-literacy, language, and
    numeracy skills. Parents must provide written consent for their
    child to continue to receive services through the Part C
    program. The policy must not affect the right of any child to
    receive FAPE under part B of IDEA.
        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 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 to 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,
    including the infant's or toddler's current state of
    development, available family resources, measurable outcomes,
    early interventions needed to meet the child's and the family's
    needs, the environment in which services will be delivered,
    frequency and duration of services, and transition to preschool
    or other appropriate services.
        Section 636(e) requires that parents receive a full
    explanation of the IFSP and that informed written consent be
    obtained from the parents 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) provides that the Secretary may only require
    a State to modify its application based on an amendment to the
    Act, issuance of Federal regulations under the Act, new Federal
    or the State's highest court interpretation of the Act, or an
    official finding of State noncompliance with Federal law or
    regulations.
        Section 638 lists the allowable uses of funds under part C,
    including providing direct services for infants and toddlers
    with disabilities and the families of those 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) details obligations related to and methods
    of ensuring services, including establishing financial
    responsibility for services and requires consistency with the
    designations of financial responsibility made under Part B.
        Section 640(c) 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 under 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 that would give the appearance of a
    conflict of interest.
        Section 642 provides that sections 616, 617, and 618 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 remaining
    part C funds will be distributed to the States; namely, each
    State shall receive a grant in proportion to the number of all
    infants and toddlers in the State, except (if funds are
    sufficient) no State shall receive a grant that is less than
    the greater of \1/2\ percent of funds available for part C
    State grants or $500,000.
        Section 643(d) allows the Secretary to reallocate any funds
    refused by a State to the remaining States.
        Section 643(e) provides for State bonus grants.
        Section 644 authorizes an appropriation of such sums as may
    be necessary to carry out part C for each of the fiscal years
    2004 through 2009.

    Part D

        Section 650 sets out congressional findings in support of
    national activities to improve the education of children with
    disabilities.

    Part D--Subpart 1

        Section 651(a) sets out the purpose of this subpart, which
    is to assist SEAs to reform and improve their systems of
    personnel preparation and professional development for staff
    serving children with disabilities.
        Section 651(b) provides a definition of ``personnel'' for
    this subpart.
        Section 651(c) requires that the Secretary make competitive
    grants to SEAs to carry out activities described in the State
    plan (as specified in section 653) when appropriations for this
    subpart are less than $100 million. The Secretary may give
    priority to States with the greatestpersonnel needs. Grants are
    to be no greater than $4 million or less than $500,000 (or $80,000 for
    outlying areas).
        Section 651(d) requires the Secretary (if the appropriation
    for this subpart is at least $100 million) to distribute funds
    by formula to all States that qualify based on each State's
    proportion of the total amount for States under the part B
    grants-to-States program, except that no State grant shall be
    less than the greater of \1/2\ percent of the total amount
    available under this subsection or $500,000.
        Section 651(e) requires the Secretary to make continuation
    awards to any State that received a multi-year award under this
    part, prior to the enactment of the Individuals with
    Disabilities Education Improvement Act.
        Section 652(a) limits an SEA's grant period to not less
    than 1 year or more than 5 years.
        Section 652(b) requires the SEA to form partnerships with
    LEAs and other relevant State agencies or entity and lists
    other permitted grant partners.
        Section 653(a) requires SEAs seeking a grant under this
    subpart to submit an application to the Secretary according to
    the Secretary's requirements. The application is to include a
    plan for assessing and addressing State and local personnel
    preparation and development needs.
        Section 653(b) contains required elements of the State
    plan, including descriptions of partnership agreements,
    coordination with other resources, alignment with State
    applications and plans under sections 1111 and 2112 of the
    Elementary and Secondary Education Act of 1965, strategies to
    address professional development and personnel needs, and how
    highly qualified personnel will be recruited and retained, and
    how strategies will be assessed.
        Section 653(c) requires the Secretary to use a panel of
    experts to evaluate grant applications under this subpart.
        Section 653(d) requires State grantees to submit annual
    performance reports to the Secretary.
        Section 654(a) requires SEAs receiving grants under this
    subpart to support activities related to the State plan. These
    activities must include one or more of the following: support
    related to mentoring, team teaching, reduced class schedule and
    case loads, intensive professional development; integration of
    technology to improve special education and related services;
    training to improve teacher knowledge about instructional
    practices to meet the academic and developmental needs of
    children with disabilities; training to improve working with
    parents of children with disabilities; training related to
    development and implementation of better IEPs; developing and
    implementing strategies to recruit and retain highly qualified
    teachers; strategies to provide innovative professional
    development programs; and training to improve quality of early
    intervention personnel.
        Section 654(b) lists other permitted activities that grants
    can support, such as reforming teacher certification, creating
    alternative State certification, promoting professional growth,
    reforming tenure systems, promoting cross-State certification
    reciprocity, developing and delivering intensive professional
    development programs, developing merit based performance
    systems, supporting the use of challenging State academic
    content standards, and coordinating with teacher recruitment,
    placement, and retention centers established under section
    2113(c)(18) of the Elementary and Secondary Education Act of
    1965.
        Section 654(c) requires SEAs to award contracts or
    subcontracts for carrying out the State plan to LEAs,
    institutions of higher education, parent training and
    information centers, or community parent resource centers, as
    appropriate. In addition, SEAs may award contracts and
    subcontracts to other appropriate public and private entities,
    such as the lead State agency for part C.
        Section 654(d) requires SEAs to use at least 75 percent of
    grant funds under this subpart for activities listed in section
    654(a) and not more than 25 percent of grant funds for section
    654(b) activities.
        Section 654(e) determines that P.L. 95-134, permitting
    grant consolidation to the outlying areas, shall not apply to
    funds received under this subpart.
        Section 655 authorizes to be appropriated such sums as may
    be necessary to carry out this subpart for fiscal years 2004
    through 2009.

    Part D--Subpart 2

        Section 660 states the purpose of this subpart regarding
    the funding of scientifically based research, technical
    assistance, model demonstration projects, and information
    dissemination.
        Section 661(a) requires the Secretary to develop and
    implement a comprehensive plan of research carried out under
    this subpart (except for research undertaken by the National
    Center for Special Education Research--created by title III of
    the bill).
        Section 661(b) lists entities eligible to apply for grants,
    contracts, or cooperative agreements under this subpart,
    including SEAs, LEAs, and institutions of higher education.
        Section 661(c) requires the Secretary to reserve at least 1
    percent of funds made available for this subpart, subpart 3 and
    under subpart 4 for outreach to Historically Black Colleges and
    Universities and to institutions with minority enrollments of
    25 percent or more.
        Section 661(d) enumerates priorities for grants, contracts,
    and cooperative agreements under this subpart, under subpart 3,
    and under subpart 4.
        Section 661(e) lists responsibilities for applicants for
    and recipients of grants, contracts, and cooperative agreements
    under this subpart, subpart 3 and under subpart 4.
        Section 661(f) details requirements that the Secretary must
    abide by when managing applications under this subpart,
    including the use of a standing panel of experts to evaluate
    applications for funding over $75,000.
        Section 661(g) permits the Secretary to use funds made
    available for this subpart, for subpart 3, and for subpart 4 to
    evaluate activities carried out under this subpart.
        Section 661(h) specifies minimal amounts that the Secretary
    must provide each fiscal year to address the needs of children
    with deaf-blindness ($12,832,000), to address post-high school
    educational needs of individuals with deafness ($4 million),
    and to address the needs of children with or at risk of
    developing emotional disturbance ($4 million). These amount may
    be ratably reduced if overall appropriations for sections, this
    subpart, subpart 3, and Part E of the Education Sciences Reform
    Act are less than $130 million.
        Section 661(i) prohibits an SEA or LEA from receiving
    support for research limited solely to children ages 3 to 5 if
    the SEA or LEA is not eligible for a grant under section
    619(b).
        Section 662 requires the Secretary to coordinate research
    supported under this subsection with research carried out by
    the National Center for Special Education Research (created
    under title III of the bill).
        Section 663(a) requires the Secretary to award grants or
    enter into contracts or cooperative agreements to provide
    technical assistance, carry out model demonstration projects,
    disseminate information, and implement scientifically based
    research.
        Section 663(b) lists required activities that the Secretary
    must support, including those addressing inappropriate behavior
    of children with disabilities, improving assessments and
    evaluation methods, providing information on differing learning
    styles, disseminating innovations, and applying scientifically
    based research to facilitate systemic changes in services for
    children with disabilities.
        Section 663(c) lists additional activities that may be
    carried out under this section.
        Section 663(d) requires that the Secretary balance efforts
    supported under this section across ages and disabilities.
        Section 663(e) permits the Secretary to support projects
    linking States to technical assistance resources.
        Section 663(f) requires eligible entities to submit an
    application according to the Secretary's specifications to
    receive funding under this section.
        Section 664(a) enumerates various purposes and objectives
    for grants, contracts, and cooperative agreements related to
    improving services and results for children with disabilities
    through personnel development, such as ensuring that all
    special education teachers are highly qualified and encouraging
    increased focus on academic content in programs that prepare
    special education teachers.
        Section 664(b) requires the Secretary to support activities
    for improving the preparation of personnel serving children
    with high-incidence and low-incidence disabilities and lists
    activities that may be carried out under this subsection, such
    as support for collaborative personnel preparation; for
    innovative programs for recruiting, retaining, and evaluating
    highly qualified teachers; and for promoting transferability of
    teacher and administrator licensure and certification across
    jurisdictions.
        Section 664(c) authorizes the Secretary to support
    activities that benefit children with low-incidence
    disabilities. ``Low-incidence disability'' is defined as
    hearing or visual impairment, simultaneous hearing and visual
    impairment, significant cognitive impairment, and other
    impairments requiring a small number of highly specialized
    personnel to ensure early intervention or FAPE.
        Section 664(d) authorizes the Secretary to support
    activities to improve special education leadership.
        Section 664(e) authorizes the Secretary to support
    activities to enhance the training of beginning special
    education teachers.
        Section 664(f) authorizes the Secretary to support
    personnel preparation for general educators who work with
    special education teachers in providing services for children
    with disabilities.
        Section 664(g) requires eligible entities seeking support
    under this section to submit an application according to the
    Secretary's specifications.
        Section 664(h) requires the Secretary, in selecting
    applicants under this section, to consider proposed projects'
    impacts on personnel needs identified by the States; and to
    give preference to institutions of higher education that are,
    for example, educating general education personnel to meet the
    needs of children with disabilities in integrated settings.
        Section 664(i) requires that applicants must ensure that
    individuals receiving assistance under proposed projects must
    either serve children with disabilities for one year for every
    year of assistance or repay some portion of that assistance.
        Section 664(j) permits the Secretary to include
    scholarships as part of projects supported under this section.
        Section 664(k) authorizes to be appropriated such sums as
    may be necessary to carry out this section for fiscal years
    2004 through 2009.
        Section 665(a) requires the Secretary to delegate the
    responsibility for carrying out this section, except for
    subsections (d) and (f), to the Director of the Institute for
    Education Sciences. In addition, the Secretary is directed to
    assess the implementation of this Act.
        Section 665(b) requires the Secretary to carry out a
    national assessment of activities carried out with Federal
    funds under this Act and to provide an interim report 3 years
    after the date of enactment of the bill and a final report 5
    years after the date of enactment.
        Section 665(c) requires the Secretary to conduct a national
    study or studies of alternative assessments for children with
    significant disabilities.
        Section 665(d) requires the Secretary to provide an annual
    report to Congress.
        Section 665(e) outlines authorized topics for objective
    studies, evaluations, and assessments under this section.
        Section 665(f) requires the Secretary to study and report
    to Congress on the extent to which States adopt seamless ``zero
    to five'' option described in Sec. 635(c).
        Section 665(g) authorizes the Secretary to reserve \1/2\
    percent of amounts appropriated for parts B and C of the Act
    (up to a maximum of $40 million--annually adjusted for
    inflation) to carry out this section and stipulates that not
    more than $3 million shall be available for the national study
    of alternative assessments under subsection (c).

    Part D--Subpart 3

        Section 670 provides purposes for this subpart with respect
    to improving results for children with disabilities through
    parent training and technology and media research, development,
    and demonstration.
        Section 671(a) permits the Secretary to award grants and
    enter into contracts and cooperative agreements with parent
    organizations to support parent training and information
    centers.
        Section 671(b) lists required activities that centers must
    carry out, such as providing training and information needed by
    parents of children with disabilities, assisting parents to
    better understand the nature of their children's disabilities
    and their children's needs, assisting parents to resolve
    disputes, and helping parents and children with disabilities
    understand their rights and responsibilities under the Act.
        Section 671(c) permits centers to provide information to
    teachers and other professionals to improve results for
    children with disabilities.
        Section 671(d) lists application requirements for
    assistance under this section.
        Section 671(e) requires the Secretary to make at least 1
    grant in each State for a statewide center and requires
    multiple awards in large States, but only if centers coordinate
    services.
        Section 671(f) requires boards of directors of each center
    to meet at least quarterly to review the center's activities
    and requires a written review by the board of prior fiscal year
    activities for any center requesting a continuation award.
        Section 671(g) defines ``parental organization'' as used
    under this section.
        Section 672(a) permits the Secretary to award grants and
    enter into contracts and cooperative agreements with local
    parent organizations to support parent training and information
    centers to provide training and information to under-served
    parents, such as low-income parents, parents with limited
    English proficiency, and parents with disabilities.
        Section 672(b) lists required activities to be provided by
    each community parent resource center.
        Section 672(c) defines ``local parent organization'' as
    used in this section.
        Section 673(a) permits the Secretary to make an award to 1
    parent organization receiving assistance under section 671 to
    provide technical assistance for other parent training and
    information centers receiving assistance under sections 671 and
    672.
        Section 673(b) authorizes technical assistance activities
    that the Secretary may provide to the center receiving support
    under this section, including effective national coordination
    of training efforts, promoting the use of technology,
    strategies for reaching under-served populations, and promoting
    alternative dispute resolution methods.
        Section 673(c) requires the award recipient to establish at
    least 4 regional centers from among centers receiving
    assistance under sections 671 and 672 for carrying out
    activities authorized under subsection (b).
        Section 673(d) requires collaboration with the regional
    centers.
        Section 674(a) requires the Secretary to award grants and
    enter into contracts and cooperative agreements with eligible
    entities to support technology development, demonstration,
    utilization, and media services.
        Section 674(b) authorizes technology development and
    dissemination and utilization activities supported under this
    section, including research on and promotion of innovative
    technologies and research, development, and demonstration of
    technology using universal design features.
        Section 674(c) requires the Secretary to support
    educational media activities designed to be of educational
    value to children with disabilities and for classroom use; to
    provide video description, open captioning, or news (only until
    September 30, 2006); distribution of media-related materials;
    and free educational materials for visually impaired and print
    disabled elementary and secondary school students.
        Section 674(d) requires eligible entities interested in
    assistance under this section to submit an application based on
    the Secretary's specifications.
        Section 674(e) authorizes appropriations of such sums as
    may be necessary to carry out this section for fiscal years
    2004 through 2009.
        Section 675(a) requires the Secretary, through the
    rulemaking process, to promulgate an Instructional Materials
    Accessibility Standard (no later than 180 days after enactment)
    for publishers and for State adoption under section 612(a)(22)
    related to instructional materials for blind persons and others
    with print disabilities.
        Section 675(b) requires the Secretary to establish (within
    2 years of the date of enactment) a National Instructional
    Materials Access Center to coordinate the acquisition and
    distribution of instructional material prepared according to
    the standard described in subsection (a). The section
    authorizes the appropriation of such sums as may be necessary
    to carry out the provisions of this subsection.
        Section 676 authorizes the appropriation of such sums as
    may be necessary to carry out sections 671, 672, 673, and 663
    for fiscal years 2004 through 2009.

    Part D--Subpart 4

        Section 681 outlines the purpose of this subpart to improve
    interim alternative settings, in-school behavioral supports,
    and whole school interventions to foster safe learning
    environments for all students.
        Section 682 defines ``eligible entity'' in this subsection
    to be an LEA or a consortium of an LEA with another LEA, a
    community-based organization, an institution of higher
    education, a mental health provider, or an educational service
    agency.
        Section 683 authorizes the Secretary to make competitive
    grants to eligible entities to establish or expand behavioral
    supports and whole school behavioral interventions based on
    effective, research-based practices or improve interim
    alternative educational settings.
        Section 684 requires entities receiving assistance under
    this subpart to submit annual outcome evaluations to the
    Secretary and requires the Secretary to make available
    information on best practices derived from these activities on
    the Department's website.
        Section 685 authorizes to be appropriated to carry out this
    subpart $50 million for fiscal year 2004 and such sums as may
    be necessary for the next 5 fiscal years.

             TITLE II--AMENDMENTS TO THE REHABILITATION ACT OF 1973

        Title II of the bill amends the Rehabilitation Act of 1973
    as follows:
        Section 201 amends section 2(a) of the Rehabilitation Act
    of 1973 by adding a finding.
        Section 202 amends section 7 of the Rehabilitation Act of
    1973 by adding definitions of ``student with a disability,''
    ``students with disabilities,'' and the term ``transition
    services expansion year.''
        Section 203(a) modifies assessment requirements under State
    plan provisions for annual goals and reports of progress by
    adding students with disabilities to the groups for which needs
    must be assessed and by adding a requirement that States
    describe strategies to improve and expand vocational
    rehabilitation services for students with disabilities.
        Section 203(b) adds a requirement that the State plan
    include an assurance that the strategies to meet the vocational
    rehabilitation needs of students with disabilities are
    developed and implemented and that designated funds will be
    used to carry out programs or activities to improve and expand
    these services. The section also describes the transition
    services to be provided to students with disabilities.
        Section 204 modifies the provisions for transition services
    for students with disabilities and for consultation and
    technical assistance to SEAs and LEAs regarding planning for
    the transition of students with disabilities from school to
    post-school activities.
        Section 205 adds to requirements for standards and
    indicators measures of performance regarding the transition to
    post-school activities and achievement of post-school goals of
    students with disabilities.
        Section 206 requires each State, in a transition services
    expansion year, to reserve from its allotment an amount
    calculated by the Commissioner for expanded transition services
    defined by the provisions added by section 203 and section 204
    of this Act, specifies the formula for the Commissioner to
    calculate each State's required reservation and provides the
    total amount to be reserved by the States to be $50 million.
        Section 207 makes a conforming amendment to the title of
    the Rehabilitation Act.

           TITLE III--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

        Section 301(a) of Title III of the bill amends the
    Education Sciences Reform Act of 2002 by redesignating part E
    as part F and inserting as follows after part D:

    Part E

        Section 175(a) establishes the National Center for Special
    Education Research.
        Section 175(b) outlines the mission of the Center,
    including to sponsor research to expand knowledge of the needs
    of children with disabilities, to improve services supported by
    IDEA, and to evaluate the implementation of IDEA.
        Section 176 requires that the Center is to be headed by a
    Commissioner for Special Education Research.
        Section 177(a) enumerates research activities that the
    Center may carry out.
        Section 177(b) requires the Commissioner to ensure
    activities conducted by the Center meet high standards.
        Section 177(c) requires the Commissioner to propose to the
    Director of the Institute of Education Sciences a research plan
    developed in collaboration with the Assistant Secretary for
    Special Education and Rehabilitative Services.
        Section 177(d) permits the Director to award grants or
    enter into contracts or cooperative agreements with eligible
    entities.
        Section 177(e) requires an eligible entity desiring to
    receive support under this part to submit an application
    according to the Director's specifications.
        Section 177(f) requires the Center to synthesize and
    disseminate findings and results from research it conducts or
    supports and to assist the Director in preparing the
    Institute's biennial report.
        Section 177(f) authorizes appropriation of such sums as may
    be necessary to carry out this part for fiscal years 2004
    through 2009.
        Section 301(b) of title III of the bill provides conforming
    amendments to other statutes.
        Section 301(c) of title III of the bill provides transition
    provisions for the orderly transition and implementation of
    this part and requires the Secretary to continue awards made
    under section 672 of IDEA as were in effect the day before the
    date of enactment.
        Section 301(d) of title III of the bill provides an
    effective date for subsections (a) and (b) of October 1, 2004
    and provides that section 672 (as it was in effect on the day
    prior to the day of enactment of the bill) shall remain in
    effect until September 30, 2004.

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

        Section 401(a) establishes a Commission to study, evaluate,
    and make appropriate recommendations to the Congress and the
    Secretary on universal design and accessibility of curriculum
    and instructional materials and outlines the purpose of the
    Commission.
        Section 401(b) determines the number of members of the
    Commission appointed by the Majority Leader and the Minority
    Leader of the Senate, the Speaker of the House and the Minority
    Leader of the House, the Secretary, and the Registrar of
    Copyrights. The section requires that all members be appointed
    based on their technical qualifications, expertise, and
    knowledge and requires that members represent certain groups,
    such as publishers of instructional materials, elementary and
    secondary teachers, and advocates for children with
    disabilities. Finally the section specifies certain
    requirements for the Commission, such as when members are to be
    appointed, period of service, when the initial meeting is to
    occur, and the selection of a chairperson and vice chairperson.
        Section 401(c) enumerates the duties of the Commission.
        Section 401(d) requires the Commission to hold public
    hearings.
        Section 401(e) requires the Commission to provide the
    Secretary and the Congress an interim and final report.
        Section 401(f) enumerates the powers of the Commission.
        Section 401(g) provides that the Commission is terminated
    90 days after submitting its final report.
        Section 401(h) authorizes to be appropriated $750,000 for
    fiscal year 2004 and such sums as may be necessary for fiscal
    year 2005 to carry out the provisions of this section. Any
    funds appropriated under this authorization are to remain
    available until expended without fiscal year limitation.

                           X. Changes in Existing Law

        In compliance with rule XXVI paragraph 12 of the Standing
    Rules of the Senate, the following provides a print of the
    statute or the part or section thereof to be amended or
    replaced (existing law proposed to be omitted is enclosed in
    black brackets, new matter is printed in italic, existing law
    in which no change is proposed is shown in roman):

    Individuals with Disabilities Education Act

               *       *       *       *       *       *       *

    [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 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 30 years of research and experience has
            demonstrated that the education of children with
            disabilities can be made more effective by--
                     [(A) having high expectations for such
                    children and ensuring their access 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 educationfor 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 proficient
            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 and
            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 under-represented 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 purpose 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 education 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-studentexpenditure in a local educational agency
    during the preceding school year for an elementary or secondary school
    student, as may be appropriate, and which shall be computed after
    deducting--
                      [(A) amounts received--
                              [(i) under part B of this title;
                              [(ii) under part A of title I of the
                            Elementary and Secondary Education Act
                            of 1965; or
                              [(iii) under part A of title VII of
                            that Act; and
                      [(B) any State or local funds expended for
                    programs that would qualify for assistance
                    under any of those parts.
              [(8) Free appropriate public education.--The term
            ``free appropriate public education'' means special
            education and related services that--
                      [(A) have been provided at public expense,
                    under public supervision and direction, and
                    without charge;
                      [(B) meet the standards of the State
                    educational agency;
                      [(C) include an appropriate preschool,
                    elementary, or secondary school education in
                    the State involved; and
                      [(D) are provided in conformity with the
                    individualized education program required under
                    section 614(d).
              [(9) Indian.--The term ``Indian'' means an individual
            who is a member of an Indian tribe.
              [(10) Indian tribe.--The term ``Indian tribe'' means
            any Federal or State Indian tribe, band, rancheria,
            pueblo, colony, or community, including any Alaska
            Native village or regional village corporation (as
            defined in or established under the Alaska Native
            Claims Settlement Act).
              [(11) Individualized education program.--The term
            ``individualized education program'' or ``IEP'' means a
            written statement for each child with a disability that
            is developed, reviewed, and revised in accordance with
            section 614(d).
              [(12) Individualized family service plan.--The term
            ``individualized family service plan'' has the meaning
            given such term in section 636.
              [(13) Infant or toddler with a disability.--The term
            ``infant or toddler with a disability'' has the meaning
            given such term in section 632.
              [(14) Institution of higher education.--The item
            ``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 arerecognized 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) is designed within an outcome-oriented
                    process, which promotes movement from school to
                    post-school activities, including post-
                    secondary education, vocational training,
                    integrated employment (including
    supportedemployment), continuing and adult education, adult services,
    independent living, or community participation;
                      [(B) is based upon the individual student's
                    needs, taking into account the student's
                    preferences and interests; and
                      [(C) includes instruction, related services,
                    community experiences, the development of
                    employment and other post-school adult living
                    objectives, and, when appropriate, acquisition
                    of daily living skills and functional
                    vocational evaluation.

    [SEC. 603. OFFICE OF SPECIAL EDUCATION PROGRAMS.

        [(a) Establishment.--There shall be, within the Office of
    Special Education and Rehabilitative Services in the Department
    of Education, an Office of Special Education Programs, which
    shall be the principal agency in such Department of
    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, lease 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 A--GENERAL PROVISIONS

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

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

        PART A--GENERAL PROVISIONS
    Sec. 601. Short title; table of contents; findings; purposes.
    Sec. 602. Definitions.
    Sec. 603. Office of Special Education Programs.
    Sec. 604. Abrogation of State sovereign immunity.
    Sec. 605. Acquisition of equipment; construction or alteration of
              facilities.
    Sec. 606. Employment of individuals with disabilities.
    Sec. 607. Requirements for prescribing regulations.
    Sec. 608. State administration.
    Sec. 609. Report to Congress.
        PART B--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES
    Sec. 611. Authorization; allotment; use of funds; authorization of
              appropriations.
    Sec. 612. State eligibility.
    Sec. 613. Local educational agency eligibility.
    Sec. 614. Evaluations, eligibility determinations, individualized
              education programs, and educational placements.
    Sec. 615. Procedural safeguards.
    Sec. 616. Monitoring, technical assistance, and enforcement.
    Sec. 617. Administration.
    Sec. 618. Program information.
    Sec. 619. Preschool grants.
        PART C--INFANTS AND TODDLERS WITH DISABILITIES
    Sec. 631. Findings and policy.
    Sec. 632. Definitions.
    Sec. 633. General authority.
    Sec. 634. Eligibility.
    Sec. 635. Requirements for statewide system.
    Sec. 636. Individualized family service plan.
    Sec. 637. State application and assurances.
    Sec. 638. Uses of funds.
    Sec. 639. Procedural safeguards.
    Sec. 640. Payor of last resort.
    Sec. 641. State Interagency Coordinating Council.
    Sec. 642. Federal administration.
    Sec. 643. Allocation of funds.
    Sec. 644. Authorization of appropriations.
        PART D--NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH
                  DISABILITIES
    Sec. 650. Findings.
        Subpart 1--State Personnel Preparation and Professional Development
                  Grants
    Sec. 651. Purpose; definition; program authority.
    Sec. 652. Eligibility and collaborative process.
    Sec. 653. Applications.
    Sec. 654. Use of funds.
    Sec. 655. Authorization of appropriations.
        Subpart 2--Scientifically Based Research, Technical Assistance,
                  Model Demonstration Projects, and Dissemination of
                  Information
    Sec. 660. Purpose.
    Sec. 661. Administrative provisions.
    Sec. 662. Research to improve results for children with disabilities.
    Sec. 663. Technical assistance, demonstration projects, dissemination of
              information, and implementation of scientifically based
              research.
    Sec. 664. Personnel development to improve services and results for
              children with disabilities.
    Sec. 665. Studies and evaluations.
        Subpart 3--Supports To Improve Results for Children With
                  Disabilities
    Sec. 670. Purposes.
    Sec. 671. Parent training and information centers.
    Sec. 672. Community parent resource centers.
    Sec. 673. Technical assistance for parent training and information
              centers.
    Sec. 674. Technology development, demonstration, and utilization; and
              media services.
    Sec. 675. Accessibility of instructional materials.
    Sec. 676. Authorization of appropriations.
        Subpart 4--Interim Alternative Educational Settings, Behavioral
                  Supports, and Whole School Interventions
    Sec. 681. Purpose.
    Sec. 682. Definition of eligible entity.
    Sec. 683. Program authorized.
    Sec. 684. Program evaluations.
    Sec. 685. Authorization of appropriations.

      (c) Findings.--Congress finds the following:
              (1) Disability is a natural part of the human
            experience and in no way diminishes the right of
            individuals to participate in or contribute to society.
            Improving educational results for children with
            disabilities is an essential element of our national
            policy of ensuring equality of opportunity, full
            participation, independent living, and economic self-
            sufficiency for individuals with disabilities.
              (2) Before the date of the enactment of the Education
            for All Handicapped Children Act of 1975 (Public Law
            94-142), the educational needs of millions of children
            with disabilities were not being fully met because--
                      (A) the children did not receive appropriate
                    educational services;
                      (B) the children were excluded entirely from
                    the public school system and from being
                    educated with their peers;
                      (C) undiagnosed disabilities prevented the
                    children from having a successful educational
                    experience; or
                      (D) a lack of adequate resources within the
                    public school system forced families to find
                    services outside the public school system.
              (3) Since the enactment and implementation of the
            Education for All Handicapped Children Act of 1975,
            this Act has been successful in ensuring children with
            disabilities and the families of such children access
            to a free appropriate public education and in improving
            educational results for children with disabilities.
              (4) However, the implementation of this Act has been
            impeded by low expectations, and an insufficient focus
            on applying replicable research on proven methods of
            teaching and learning for children with disabilities.
              (5) Over 25 years of research and experience has
            demonstrated that the education of children with
            disabilities can be made more effective by--
                      (A) having high expectations for such
                    children and ensuring their access to the
                    general education curriculum in the regular
                    classroom to the maximum extent possible in
                    order to--
                              (i) meet developmental goals and, to
                            the maximum extent possible, the
                            challenging expectations that have been
                            established for all children; and
                              (ii) be prepared to lead productive
                            and independent adult lives, to the
                            maximum extent possible;
                      (B) strengthening the role and responsibility
                    of parents and ensuring that families of such
                    children have meaningful opportunities to
                    participate in the education of their children
                    at school and at home;
                      (C) coordinating this Act with other local,
                    educational service agency, State, and Federal
                    school improvement efforts, including
                    improvement efforts under the Elementary and
                    Secondary Education Act of 1965, in order to
                    ensure that such children benefit from such
                    efforts and that special education can become a
                    service for such children rather than a place
                    where they are sent;
                      (D) providing appropriate special education
                    and related services, and aids and supports in
                    the regular classroom, to such children,
                    whenever appropriate;
                      (E) supporting high-quality, intensive
                    preservice preparation and professional
                    development for all personnel who work with
                    children with disabilities in order to ensure
                    that such personnel have the skills and
                    knowledge necessary to improve the academic
                    achievement and functional performance of
                    children with disabilities, including the use
                    of scientifically based instructional
                    practices, to the maximum extent possible;
                      (F) providing incentives for whole-school
                    approaches, scientifically based early reading
                    programs, positive behavioral interventions and
                    supports, and prereferral interventions to
                    reduce the need to label children as disabled
                    in order to address their learning and
                    behavioral needs;
                      (G) focusing resources on teaching and
                    learning while reducing paperwork and
                    requirements that do not assist in improving
                    educational results; and
                      (H) supporting the development and use of
                    technology, including assistive technology
                    devices and assistive technology services, to
                    maximize accessibility for children with
                    disabilities.
              (6) While States, local educational agencies, and
            educational service agencies are primarily responsible
            for providing an education for all children with
            disabilities, it is in the national interest that the
            Federal Government have a supporting role in assisting
            State and local efforts to educate children with
            disabilities in order to improve results for such
            children and to ensure equal protection of the law.
              (7) A more equitable allocation of resources is
            essential for the Federal Government to meet its
            responsibility to provide an equal educational
            opportunity for all individuals.
              (8) Parents and schools should be given expanded
            opportunities to resolve their disagreements in
            positive and constructive ways.
              (9) Teachers, schools, local educational agencies,
            and States should be relieved of irrelevant and
            unnecessary paperwork burdens that do not lead to
            improved educational outcomes.
              (10)(A) The Federal Government must be responsive to
            the growing needs of an increasingly more diverse
            society.
              (B) America's ethnic profile is rapidly changing. In
            the year 2000, 1 of every 3 persons in the United
            States was a member of a minority group or was limited
            English proficient.
              (C) Minority children comprise an increasing
            percentage of public school students.
              (D) With such changing demographics, recruitment
            efforts for special education personnel should focus on
            increasing the participation of minorities in the
            teaching profession.
              (11)(A) The limited English proficient population is
            the fastest growing in our Nation, and the growth is
            occurring in many parts of our Nation.
              (B) Studies have documented apparent discrepancies in
            the levels of referral and placement of limited English
            proficient children in special education.
              (C) This poses a special challenge for special
            education in the referral of, assessment of, and
            services for, our Nation's students from non-English
            language backgrounds.
              (12)(A) Greater efforts are needed to prevent the
            intensification of problems connected with mislabeling
            and high dropout rates among minority children with
            disabilities.
              (B) More minority children continue to be served in
            special education than would be expected from the
            percentage of minority students in the general school
            population.
              (C) African-American children are identified as
            having mental retardation and emotional disturbance at
            rates greater than their white counterparts.
              (D) In the 1998-1999 school year, African-American
            children represented just 14.8 percent of the
            population aged 6 through 21, but comprised 20.2
            percent of all children with disabilities.
              (E) Studies have found that schools with
            predominately Caucasian students and teachers have
            placed disproportionately high numbers of their
            minority students into special education.
              (13)(A) As the number of minority students in special
            education increases, the number of minority teachers
            and related services personnel produced in colleges and
            universities continues to decrease.
              (B) The opportunity for minority individuals,
            organizations, and Historically Black Colleges and
            Universities to participate fully in awards for grants
            and contracts, boards of organizations receiving funds
            under this Act, and peer review panels, and in the
            training of professionals in the area of special
            education is essential if we are to obtain greater
            success in the education of minority children with
            disabilities.
              (14) As the graduation rates for children with
            disabilities continue to climb, providing effective
            transition services to promote successful post-school
            employment or education is an important measure of
            accountability for children with disabilities.
      (d) Purposes.--The purposes of this title are--
              (1)(A) to ensure that all children with disabilities
            have available to them a free appropriate public
            education that emphasizes special education and related
            services designed to meet their unique needs and
            prepare them for employment, further education, and
            independent living;
              (B) to ensure that the rights of children with
            disabilities and parents of such children are
            protected; and
              (C) to assist States, localities, educational service
            agencies, and Federal agencies to provide for the
            education of all children with disabilities;
              (2) to assist States in the implementation of a
            Statewide, coordinated, multidisciplinary, interagency
            system of early intervention services for infants and
            toddlers with disabilities and their families;
              (3) to ensure that educators and parents have the
            necessary tools to improve educational results for
            children with disabilities by supporting systemic-
            change activities; coordinated research and personnel
            preparation; coordinated technical assistance,
            dissemination, and support; and technology development
            and media services; and
              (4) to assess, and ensure the effectiveness of,
            efforts to educate children with disabilities.

    SEC. 602. DEFINITIONS.

      Except as otherwise provided, as used in this Act:
              (1) Assistive technology device.--The term
            ``assistive technology device'' means any item, piece
            of equipment, or product system, whether acquired
            commercially off the shelf, modified, or customized,
            that is used to increase, maintain, or improve
            functional capabilities of a child with a disability.
            The term does not include a medical device that is
            surgically implanted, or the post-surgical maintenance,
            programming, or replacement of such device, or an
            external device connected with the use of a surgically
            implanted medical device (other than the costs of
            performing routine maintenance and monitoring of such
            external device at the same time the child is receiving
            other services under this Act).
              (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 (or any subset of that age range, including
                    ages 3 through 5), may, at the discretion of
                    the State and the local educational agency,
                    include a child--
                              (i) experiencing developmental
                            delays, as defined by the State and as
                            measured by appropriate diagnostic
                            instruments and procedures, in 1 or
                            more of the following areas: physical
                            development, cognitive development,
                            communication development, social or
                            emotional development, or adaptive
                            development; and
                              (ii) who, by reason thereof, needs
                            special education and related services.
              (4) Core academic subject.--The term ``core academic
            subject'' has the meaning given the term in section
            9101(11) of the Elementary and Secondary Education Act
            of 1965.
              (5) Educational service agency.--The term
            ``educational service agency''--
                      (A) means a regional public multiservice
                    agency--
                              (i) authorized by State law to
                            develop, manage, and provide services
                            or programs to local educational
                            agencies; and
                              (ii) recognized as an administrative
                            agency for purposes of the provision of
                            special education and related services
                            provided within public elementary
                            schools and secondary schools of the
                            State; and
                      (B) includes any other public institution or
                    agency having administrative control and
                    direction over a public elementary school or
                    secondary school.
              (6) Elementary school.--The term ``elementary
            school'' means a nonprofit institutional day or
            residential school that provides elementary education,
            as determined under State law.
              (7) Equipment.--The term ``equipment'' includes--
                      (A) machinery, utilities, and built-in
                    equipment, and any necessary enclosures or
                    structures to house such machinery, utilities,
                    or equipment; and
                      (B) all other items necessary for the
                    functioning of a particular facility as a
                    facility for the provision of educational
                    services, including items such as instructional
                    equipment and necessary furniture; printed,
                    published, and audio-visual instructional
                    materials; telecommunications, sensory, and
                    other technological aids and devices; and
                    books, periodicals, documents, and other
                    related materials.
              (8) Excess costs.--The term ``excess costs'' means
            those costs that are in excess of the average annual
            per-student expenditure in a local educational agency
            during the preceding school year for an elementary
            school or secondary school student, as may be
            appropriate, and which shall be computed after
            deducting--
                      (A) amounts received--
                              (i) under part B of this title;
                              (ii) under part A of title I of the
                            Elementary and Secondary Education Act
                            of 1965; and
                              (iii) under parts A and B of title
                            III of that Act; and
                      (B) any State or local funds expended for
                    programs that would qualify for assistance
                    under any of those parts.
              (9) Free appropriate public education.--The term
            ``free appropriate public education'' means special
            education and related services that--
                      (A) have been provided at public expense,
                    under public supervision and direction, and
                    without charge;
                      (B) meet the standards of the State
                    educational agency;
                      (C) include an appropriate preschool,
                    elementary school, or secondary school
                    education in the State involved; and
                      (D) are provided in conformity with the
                    individualized education program required under
                    section 614(d).
              (10) Highly qualified.--The term ``highly qualified''
            means the following:
                      (A) All special education teachers.--When
                    used with respect to any public elementary
                    school or secondary school special education
                    teacher teaching in a State, means that the
                    teacher holds at least a bachelor's degree and
                    that--
                              (i) the teacher has obtained full
                            State certification as a special
                            education teacher through a State-
                            approved special education teacher
                            preparation program (including
                            certification obtained through
                            alternative routes to certification) or
                            other comparably rigorous methods, or
                            passed the State teacher special
                            education licensing examination, and
                            holds a license to teach in the State
                            as a special education teacher, except
                            that when used with respect to any
                            teacher teaching in a public charter
                            school, the term means that the teacher
                            meets the requirements set forth in the
                            State's public charter school law;
                              (ii) the teacher has not had
                            certification or licensure requirements
                            waived on an emergency, temporary, or
                            provisional basis; and
                              (iii) the teacher demonstrates
                            knowledge of special education and the
                            teaching skills necessary to teach
                            children with disabilities.
                      (B) New elementary school special education
                    teachers.--When used with respect to a special
                    education elementary school teacher who is new
                    to the profession, means that the teacher
                    demonstrated, by passing a rigorous State test,
                    subject knowledge and teaching skills in
                    reading, writing, mathematics, and other areas
                    of the basic elementary school curriculum
                    (which may consist of passing a State-required
                    certification or licensing test or tests in
                    reading, writing, mathematics, and other areas
                    of the basic elementary school curriculum).
                      (C) New middle school and secondary school
                    special education teachers.--When used with
                    respect to a special education middle school or
                    secondary school teacher who is new to the
                    profession, means that the teacher has
                    demonstrated a high level of competency in each
                    of the academic subjects in which the teacher
                    teaches by--
                              (i) passing a rigorous State academic
                            subject test in each of the academic
                            subjects in which the teacher teaches
                            (which may consist of a passing level
                            of performance on a State-required
                            certification or licensing test or
                            tests in each of the academic subjects
                            in which the teacher teaches); or
                              (ii) successful completion, in each
                            of the academic subjects in which the
                            teacher teaches, of an academic major,
                            graduate degree, coursework equivalent
                            to an undergraduate academic major, or
                            advanced certification or
                            credentialing.
                      (D) Veteran special education teachers.--When
                    used with respect to an elementary school,
                    middle school, or secondary school special
                    education teacher who is not new to the
                    profession, means that the teacher has--
                              (i) met the applicable standard in
                            subparagraph (B) or (C), which includes
                            an option for a test; or
                              (ii) has demonstrated competence in
                            all the academic subjects in which the
                            teacher teaches based on a high
                            objective uniform State standard of
                            evaluation for special education
                            teachers that--
                                      (I) is set by the State for
                                    both grade-appropriate academic
                                    subject matter knowledge and
                                    special education teaching
                                    skills;
                                      (II) is aligned with
                                    challenging State academic
                                    content and student academic
                                    achievement standards and
                                    developed in consultation with
                                    special education teachers,
                                    core content specialists,
                                    teachers, principals, and
                                    school administrators;
                                      (III) provides objective,
                                    coherent information about the
                                    teachers' attainment of
                                    knowledge of core content
                                    knowledge in the academic
                                    subjects in which a teacher
                                    teaches;
                                      (IV) is applied uniformly to
                                    all special education teachers
                                    who teach in the same academic
                                    subject and the same grade
                                    level throughout the State;
                                      (V) takes into consideration,
                                    but is not based primarily on,
                                    the time the teacher has been
                                    teaching in the academic
                                    subject;
                                      (VI) is made available to the
                                    public on request; and
                                      (VII) may involve multiple
                                    objective measures of teacher
                                    competency.
                      (E) Teachers providing consultative
                    services.--
                              (i) In general.--Notwithstanding
                            subparagraphs (B) through (D), when
                            used with respect to a special
                            education teacher who provides only
                            consultative services to a highly
                            qualified regular education teacher (as
                            the term highly qualified is defined in
                            section 9101(23) of the Elementary and
                            Secondary Education Act of 1965), means
                            that the teacher meets the requirements
                            of subparagraph (A).
                              (ii) Consultative services.--As used
                            in clause (i), the term ``consultative
                            services'' means services that adjust
                            the learning environment, modify
                            instructional methods, adapt curricula,
                            use positive behavior supports and
                            interventions, and select and implement
                            appropriate accommodations to meet the
                            needs of individual children.
                      (F) Exception.--Notwithstanding subparagraphs
                    (B) through (D), when used with respect to a
                    special education teacher who teaches more than
                    1 subject, primarily to middle school and
                    secondary school-aged children with significant
                    cognitive disabilities, means that the teacher
                    has demonstrated subject knowledge and teaching
                    skills in reading, mathematics, and other areas
                    of the basic elementary school curriculum by--
                              (i) passing a rigorous State test
                            (which may consist of passing a State-
                            required certification or licensing
                            test or tests in those areas); or
                              (ii) demonstrating competency in all
                            the academic subjects in which the
                            teacher teaches, based on a high
                            objective uniform State standard as
                            described in subparagraph (D)(ii).
              (11) Indian.--The term ``Indian'' means an individual
            who is a member of an Indian tribe.
              (12) Indian tribe.--The term ``Indian tribe'' means
            any Federal or State Indian tribe, band, rancheria,
            pueblo, colony, or community, including any Alaska
            Native village or regional village corporation (as
            defined in or established under the Alaska Native
            Claims Settlement Act).
              (13) Individualized education program.--The term
            ``individualized education program'' or ``IEP'' means a
            written statement for each child with a disability that
            is developed, reviewed, and revised in accordance with
            section 614(d).
              (14) Individualized family service plan.--The term
            ``individualized family service plan'' has the meaning
            given such term in section 636.
              (15) Infant or toddler with a disability.--The term
            ``infant or toddler with a disability'' has the meaning
            given such term in section 632.
              (16) Institution of higher education.--The term
            ``institution of higher education''--
                      (A) has the meaning given such term in
                    section 101 (a) and (b) of the Higher Education
                    Act of 1965; and
                      (B) also includes any community college
                    receiving funding from the Secretary of the
                    Interior under the Tribally Controlled College
                    or University Assistance Act of 1978.
              (17) Limited english proficient.--The term ``limited
            English proficient'' has the meaning given the term in
            section 9101(25) of the Elementary and Secondary
            Education Act of 1965.
              (18) Local educational agency.--
                      (A) The term ``local educational agency''
                    means a public board of education or other
                    public authority legally constituted within a
                    State for either administrative control or
                    direction of, or to perform a service function
                    for, public elementary schools or secondary
                    schools in a city, county, township, school
                    district, or other political subdivision of a
                    State, or for such combination of school
                    districts or counties as are recognized in a
                    State as an administrative agency for its
                    public elementary schools or secondary schools.
                      (B) The term includes--
                              (i) an educational service agency, as
                            defined in paragraph (5); and
                              (ii) any other public institution or
                            agency having administrative control
                            and direction of a public elementary
                            school or secondary school.
                      (C) The term includes an elementary school or
                    secondary school funded by the Bureau of Indian
                    Affairs, but only to the extent that such
                    inclusion makes the school eligible for
                    programs for which specific eligibility is not
                    provided to the school in another provision of
                    law and the school does not have a student
                    population that is smaller than the student
                    population of the local educational agency
                    receiving assistance under this Act with the
                    smallest student population, except that the
                    school shall not be subject to the jurisdiction
                    of any State educational agency other than the
                    Bureau of Indian Affairs.
              (19) Native language.--The term ``native language'',
            when used with respect to an individual of limited
            English proficiency, means the language normally used
            by the individual, or in the case of a child, the
            language normally used by the parents of the child.
              (20) Nonprofit.--The term ``nonprofit'', as applied
            to a school, agency, organization, or institution,
            means a school, agency, organization, or institution
            owned and operated by 1 or more nonprofit corporations
            or associations no part of the net earnings of which
            inures, or may lawfully inure, to the benefit of any
            private shareholder or individual.
              (21) Outlying area.--The term ``outlying area'' means
            the United States Virgin Islands, Guam, American Samoa,
            and the Commonwealth of the Northern Mariana Islands.
              (22) Parent.--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.
              (23) Parent organization.--The term ``parent
            organization'' has the meaning given such term in
            section 671(g).
              (24) Parent training and information center.--The
            term ``parent training and information center'' means a
            center assisted under section 671 or 672.
              (25) Related services.--The term ``related services''
            means transportation, and such developmental,
            corrective, and other supportive services (including
            speech-language pathology and audiology services,
            interpreting services, psychological services, physical
            and occupational therapy, recreation, including
            therapeutic recreation, social work services, school
            health services, counseling services, including
            rehabilitation counseling, orientation and mobility
            services, travel training instruction, and medical
            services, except that such medical services shall be
            for diagnostic and evaluation purposes only) as may be
            required to assist a child with a disability to benefit
            from special education, and includes the early
            identification and assessment of disabling conditions
            in children. The term does not include a medical device
            that is surgically implanted, or the post-surgical
            maintenance, programming, or replacement of such
            device, or an external device connected with the use of
            a surgically implanted medical device (other than the
            costs of performing routine maintenance and monitoring
            of such external device at the same time the child is
            receiving other services under this Act).
              (26) Secondary school.--The term ``secondary school''
            means a nonprofit institutional day or residential
            school that provides secondary education, as determined
            under State law, except that it does not include any
            education beyond grade 12.
              (27) Secretary.--The term ``Secretary'' means the
            Secretary of Education.
              (28) Special education.--The term ``special
            education'' means specially designed instruction, at no
            cost to parents, to meet the unique needs of a child
            with a disability, including--
                      (A) instruction conducted in the classroom,
                    in the home, in hospitals and institutions, and
                    in other settings; and
                      (B) instruction in physical education.
              (29) Specific learning disability.--
                      (A) In general.--The term ``specific learning
                    disability'' means a disorder in 1 or more of
                    the basic psychological processes involved in
                    understanding or in using language, spoken or
                    written, which disorder may manifest itself in
                    the imperfect ability to listen, think, speak,
                    read, write, spell, or do mathematical
                    calculations.
                      (B) Disorders included.--Such term includes
                    such conditions as perceptual disabilities,
                    brain injury, minimal brain dysfunction,
                    dyslexia, and developmental aphasia.
                      (C) Disorders not included.--Such term does
                    not include a learning problem that is
                    primarily the result of visual, hearing, or
                    motor disabilities, of mental retardation, of
                    emotional disturbance, or of environmental,
                    cultural, or economic disadvantage.
              (30) State.--The term ``State'' means each of the 50
            States, the District of Columbia, the Commonwealth of
            Puerto Rico, and each of the outlying areas.
              (31) State educational agency.--The term ```State
            educational agency'' means the State board of education
            or other agency or officer primarily responsible for
            the State supervision of public elementary schools and
            secondary schools, or, if there is no such officer or
            agency, an officer or agency designated by the Governor
            or by State law.
              (32) Supplementary aids and services.--The term
            ``supplementary aids and services'' means aids,
            services, and other supports that are provided in
            regular education classes or other education-related
            settings to enable children with disabilities to be
            educated with nondisabled children to the maximum
            extent appropriate in accordance with section
            612(a)(5).
              (33) Transition services.--The term ``transition
            services'' means a coordinated set of activities for a
            child with a disability (as defined in paragraph
            (3)(A)) that--
                      (A) is designed to be within a results-
                    oriented process, that is focused on improving
                    the academic and functional achievement of the
                    child with a disability to facilitate the
                    child's movement from school to post-school
                    activities, including post-secondary education,
                    vocational training, integrated employment
                    (including supported employment), continuing
                    and adult education, adult services,
                    independent living, or community participation;
                      (B) is based on the individual child's needs,
                    taking into account the child's strengths,
                    preferences, and interests; and
                      (C) includes instruction, related services,
                    community experiences, the development of
                    employment and other post-school adult living
                    objectives, and, when appropriate, acquisition
                    of daily living skills and functional
                    vocational evaluation.

    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 11th
    amendment to the Constitution of the United States from suit in
    Federal court for a violation of this Act.
      (b) Remedies.--In a suit against a State for a violation of
    this Act, remedies (including remedies both at law and in
    equity) are available for such a violation to the same extent
    as those remedies are available for such a violation in the
    suit against any public entity other than a State.
      (c) Effective Date.--Subsections (a) and (b) apply with
    respect to violations that occur in whole or part after the
    date of enactment of the Education of the Handicapped Act
    Amendments of 1990.

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

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

    SEC. 606. EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.

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

    SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

      (a) In General.--In carrying out the provisions of this Act,
    the Secretary shall issue regulations under this Act only to
    the extent that such regulations are necessary to ensure that
    there is compliance with the specific requirements of this Act.
      (b) Protections Provided to Children.--The Secretary may not
    implement, or publish in final form, any regulation prescribed
    pursuant to this Act that--
              (1) violates or contradicts any provision of this
            Act; and
              (2) procedurally or substantively lessens the
            protections provided to children with disabilities
            under this Act, as embodied in regulations in effect on
            July 20, 1983 (particularly as such protections related
            to parental consent to initial evaluation or initial
            placement in special education, least restrictive
            environment, related services, timelines, attendance of
            evaluation personnel at individualized education
            program meetings, or qualifications of personnel),
            except to the extent that such regulation reflects the
            clear and unequivocal intent of the Congress in
            legislation.
      (c) Public Comment Period.--The Secretary shall provide a
    public comment period of not more than 90 days on any
    regulation proposed under part B or part C of this Act on which
    an opportunity for public comment is otherwise required by law.
      (d) Policy Letters and Statements.--The Secretary may not
    issue policy letters or other statements (including letters or
    statements regarding issues of national significance) that--
              (1) violate or contradict any provision of this Act;
            or
              (2) establish a rule that is required for compliance
            with, and eligibility under, this Act without following
            the requirements of section 553 of title 5, United
            States Code.
      (e) Explanation and Assurances.--Any written response by the
    Secretary under subsection (d) regarding a policy, question, or
    interpretation under part B of this Act shall include an
    explanation in the written response that--
              (1) such response is provided as informal guidance
            and is not legally binding;
              (2) when required, such response is issued in
            compliance with the requirements of section 553 of
            title 5, United States Code; and
              (3) such response represents the interpretation by
            the Department of Education of the applicable statutory
            or regulatory requirements in the context of the
            specific facts presented.
      (f) Correspondence From Department of Education Describing
    Interpretations of This Act.--
              (1) In general.--The Secretary shall, on a quarterly
            basis, publish in the Federal Register, and widely
            disseminate to interested entities through various
            additional forms of communication, a list of
            correspondence from the Department of Education
            received by individuals during the previous quarter
            that describes the interpretations of the Department of
            Education of this Act or the regulations implemented
            pursuant to this Act.
              (2) Additional information.--For each item of
            correspondence published in a list under paragraph (1),
            the Secretary shall--
                      (A) identify the topic addressed by the
                    correspondence and shall include such other
                    summary information as the Secretary determines
                    to be appropriate; and
                      (B) ensure that all such correspondence is
                    issued, where applicable, in compliance with
                    the requirements of section 553 of title 5,
                    United States Code.

    SEC. 608. STATE ADMINISTRATION.

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

    SEC. 609. REPORT TO CONGRESS.

      The Comptroller General shall conduct a review of Federal,
    State, and local requirements relating to the education of
    children with disabilities to determine which requirements
    result in excessive paperwork completion burdens for teachers,
    related services providers, and school administrators, and
    shall report to Congress not later than 18 months after the
    date of enactment of the Individuals with Disabilities
    Education Improvement Act of 2003 regarding such review along
    with strategic proposals for reducing the paperwork burdens on
    teachers.

      [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 3 through 5 if the State is
                            eligible for a grant under section 619;
                            and
                              [(ii) aged 6 through 21; multiplied
                            by
                      [(B) 40 percent of the average per-pupil
                    expenditure in public elementary 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 3 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
                    thecompetition 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) the identity of the source and
                            amount of funds, in addition to funds
                            under this part, that it will make
                            available to ensure that a free
                            appropriate public education is
                            available to all children with
                            disabilities within its jurisdiction;
                            and
                              [(iv) such other information and
                            assurances as the Secretary may
                            require.
                      [(D) Termination of eligibility.--
                    Notwithstanding any other provision of law, the
                    freely associated States shall not receive any
                    funds under this part for any program year that
                    begins after September 30, 2001.
                      [(E) Administrative costs.--The Secretary may
                    provide not more than five percent of the
                    amount reserved for grants under this paragraph
                    to pay the administrative costs of the Pacific
                    Region Educational Laboratory under
                    subparagraph (B).
              [(3) Limitation.--An outlying area is not eligible
            for a competitive award under paragraph (2) unless it
            receives assistance under paragraph (1)(A).
              [(4) Special rule.--The provisions of Public Law 95-
            134, permitting the consolidation of grants by the
            outlying areas, shall not apply to funds provided to
            those areas or to the freely associated States under
            this section.
              [(5) Eligibility for discretionary programs.--The
            freely associated States shall be eligible to receive
            assistance under subpart 2 of part D of this Act until
            September 30, 2001.
              [(6) Definition.--As used in this subsection, the
            term ``freely associated States'' means the Republic of
            the MarshallIslands, 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 3 through 5, but does not make a
                    free appropriate public education available to
                    all children with disabilities aged 3 through 5
                    in the State in any subsequent fiscal year, the
                    Secretary shall compute the State's 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 sub-
                    paragraph (B)(i).
              [(4) Decrease in funds.--If the amount available for
            allocations to States under paragraph (1) is less than
            the amountallocated 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
                    subparagrph (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
                    apropriate, 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 servicesand 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.--East 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 3through 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 aged 3 to 5,
                    inclusive, who are enrolled in programs
                    affiliated with the Bureau of Indian
    Affairs(hereafter in this subsection referred to as ``BIA'') schools
    and that are required by the States in which such schools are located
    to attain or maintain State accreditation, and which schools have such
    accreditation prior to the date of enactment of the Individuals with
    Disabilities Education Act Amendments of 1991, the school shall be
    allowed to count those children for the purpose of distribution of the
    funds provided under this paragraph to the Secretary of the Interior.
    The Secretary of the Interior shall be responsible for meeting all of
    the requirements of this part for these children, in accordance with
    paragraph (2).
                      [(C) Additional requirement.--With respect to
                    all other children aged 3 to 21, inclusive, on
                    reservations, the State educational agency
                    shall be responsible for ensuring that all of
                    the requirements of this part are implemented.
              [(2) Submission of Information.--The Secretary of
            Education may provide the Secretary of the Interior
            amounts under paragraph (1) for a fiscal year only if
            the Secretary of the Interior submits to the Secretary
            of Education information that--
                      [(A) demonstrates that the Department of the
                    Interior meets the appropriate requirements, as
                    determined by the Secretary of Education, of
                    sections 612 (including monitoring and
                    evaluation activities) and 613;
                      [(B) includes a description of how the
                    Secretary of the Interior will coordinate the
                    provision of services under this part with
                    local educational agencies, tribes and tribal
                    organizations, and other private and Federal
                    service providers;
                      [(C) includes an assurance that there are
                    public hearings, adequate notice of such
                    hearings, and an opportunity for comment
                    afforded to members of tribes, tribal governing
                    bodies, and affected local school boards before
                    the adoption of the policies, programs, and
                    procedures described in subparagraph (A);
                      [(D) includes an assurance that the Secretary
                    of the Interior will provide such information
                    as the Secretary of Education may require to
                    comply with section 618;
                      [(E) includes an assurance that the Secretary
                    of the Interior and the Secretary of Health and
                    Human Services have entered into a memorandum
                    of agreement, to be provided to the Secretary
                    of Education, for the coordination of services,
                    resources, and personnel between their
                    respective Federal, State, and local offices
                    and with State and local educational agencies
                    and other entities to facilitate the provision
                    of services to Indian children with
                    disabilities residing on or near reservations
                    (such agreement shall provide for the
                    apportionment of responsibilities and costs
                    including, but not limited to, child find,
                    evaluation, diagnosis, remediation, or
                    therapeutic measures, and (where appropriate)
                    equipment and medical or personal supplies as
                    needed for a child to remain in school or a
                    program); and
                      [(F) includes an assurance that the
                    Department of the Interior will cooperate with
                    the Department of Educationin 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 teh 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 requried 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 estimatednumber
    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 education
            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 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 andadministered in
    the child's native language or mode of communications, 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 671(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
                            reimbuse 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
                            other-wise 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
                            withinthe 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 re-training 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
                            forthose 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
                    educatingthose 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 requirements 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 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 officialauthorized under State law
    to make such appointments, that is representative of the State
    population and that is composed of individuals involved in, or
    concerned with, the education of children with disabilities,
    including--
                              [(i) parents of children with
                            disabilities;
                              [(ii) individuals with disabilities;
                              [(iii) teachers;
                              [(iv) representatives of institutions
                            of higher education that prepare
                            special education and related services
                            personnel;
                              [(v) State and local education
                            officials;
                              [(vi) administrators of programs for
                            children with disabilities;
                              [(vii) representatives of other State
                            agencies involved in the financing or
                            delivery of related services to
                            children with disabilities;
                              [(viii) representatives of private
                            schools and public charter schools;
                              [(ix) at least one representative of
                            a vocational, community or business
                            organization concerned with the
                            provision of transition services to
                            children with disabilities; and
                              [(x) representatives from the State
                            juvenile and adult corrections
                            agencies.
                      [(C) Special rule.--A majority of the members
                    of the panel shall be individuals with
                    disabilities or parents of children with
                    disabilities.
                      [(D) Duties.--The advisory panel shall--
                              [(i) advise the State educational
                            agency of unmet needs within the State
                            in the education of children with
                            disabilities;
                              [(ii) comment publicly on any rules
                            or regulations proposed by the State
                            regarding the education of children
                            with disabilities;
                              [(iii) advise the State educational
                            agency in developing evaluations and
                            reporting on data to the Secretary
                            under section 618;
                              [(iv) advise the State educational
                            agency in developing corrective action
                            plans to address findings identified in
                            Federal monitoring reports under this
                            part; and
                              [(v) advise the State educational
                            agency in developing and implementing
                            policies relating to the coordination
                            of services for children with
                            disabilities.
              [(22) Suspension and expulsion rates.--
                      [(A) In general.--The State educational
                    agency examines data to determine if
                    significant discrepancies are occurring in the
                    rate of long-term suspensions and expulsions of
                    children with disabilities--
                              [(i) among local educational agencies
                            in the State; or
                              [(ii) compared to such rates for
                            nondisabled children within such
                            agencies.
                      [(B) Review and revision of policies.--If
                    such discrepancies are occurring, the State
                    educational agency reviews and, if appropriate,
                    revises (or requires the affected State or
                    local educational agency to revise) its
                    policies, procedures, and practices relating to
                    the development and implementation of IEPs, the
                    use of behavioral interventions, and procedural
                    safeguards, to ensure that such policies,
                    procedures, and practices comply with this Act.
          [(b) State Educational Agency as provider of Free
    Appropriate Public Education or Direct Services.--If the State
    educational agency provides free appropriate public education
    to children with disabilities, or provides direct services to
    such children, such agency--
              [(1) shall comply with any additional requirements of
            section 613(a), as if such agency were a local
            educational agency; and
              [(2) may use amounts that are otherwise available to
            such agency under this part to serve those children
            without regard to section 613(a)(2)(A)(i) (relating to
            excess costs).
          [(c) Exception for Prior State Plans.--
              [(1) In general.--If a State has on file with the
            Secretary policies and procedures that demonstrate that
            such State meets any requirement of subsection (a),
            including any policies and procedures filed under this
            part as in effect before the effective date of the
            Individuals with Disabilities Education Act Amendments
            of 1997, the Secretary shall consider such State to
            have met such requirement for purposes of receiving a
            grant under this part.
              [(2) Modifications made by state.--Subject to
            paragraph (3), an application submitted by a State in
            accordance with this section shall remain in effect
            until the State submits to the Secretary such
            modifications as the State deems necessary. This
            section shall apply to a modification to an application
            to the same extent and in the same manner as this
            section applies to the original plan.
              [(3) Modifications required by the secretary.--If,
            after the effective date of the Individuals with
            Disabilities Education Act Amendments of 1997, the
            provisions of this Act are amended (or the regulations
            developed to carry out this Act are amended), or there
            is a new interpretation of this Act by a Federal court
            or a State's highest court, or there is an official
            finding of noncompliance with Federal law or
            regulations, the Secretary may requrie 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 eligiblity, 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 chlid 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 clerkof the court to the Secretary. The
    Secretary thereupon shall file in the court the record of the
    proceedings on which the Secretary based the Secretary's action, as
    provided in section 2112 of title 28, United States Code.
                      [(C) Review of findings of fact.--The
                    findings of fact by the Secretary, if supported
                    by substantial evidence shall be conclusive,
                    but the court, for good cause shown, may remand
                    the case to the Secretary to take further
                    evidence, and the Secretary may thereupon make
                    new or modified findings of fact and may modify
                    the Secretary's previous action, and shall file
                    in the court the record of the further
                    proceedings. Such new or modified findings of
                    fact shall likewise be conclusive if supported
                    by substantial evidence.
                      [(D) Jurisdiction of court of appeals; review
                    by united states supreme court.--Upon the
                    filing of a petition under subparagraph (B),
                    the United States court of appeals shall have
                    jurisdiction to affirm the action of the
                    Secretary or to set it aside, in whole or in
                    part. The judgment of the court shall be
                    subject to review by the Supreme Court of the
                    United States upon certiorari or certification
                    as provided in section 1254 of title 28, United
                    States Code.

    [SEC. 613. LOCAL EDUCATIONAL AGENCY ELIGIBILITY.

          [(a) In General.--A local educational agency is eligible
    for assistance under this part for a fiscal year if such agency
    demonstrates to the satisfaction of the State educational
    agency that it meets each of the following conditions:
              [(1) Consistency with state policies.--The local
            educational agency, in providing for the education of
            children with disabilities within its jurisdiction, has
            in effect policies, procedures, and programs that are
            consistent with the State policies and procedures
            established under section 612.
              [(2) Use of amounts.--
                      [(A) In general.--Amounts provided to the
                    local educational agency under this part shall
                    be expended in accordance with the applicable
                    provisions of this part and--
                              [(i) shall be used only to pay the
                            excess costs of providing special
                            education and related services to
                            children with disabilities;
                              [(ii) shall be used to supplement
                            State, local, and other Federal funds
                            and not to supplant such funds; and
                              [(iii) shall not be used, except as
                            provided in subparagraphs (B) and (C),
                            to reduce the level of expenditures for
                            the education of children with
                            disabilities made by the local
                            educational agency from local funds
                            below the level of those expenditures
                            for the preceding fiscal year.
                      [(B) Exception.--Notwithstanding the
                    restriction in subparagraph (A)(iii), a local
                    educational agency may reduce the level of
                    expenditures where such reduction is
                    attributable to--
                              [(i) the voluntary departure, by
                            retirement or otherwise, or departure
                            for just cause, of special education
                            personnel;
                              [(ii) a decrease in the enrollment of
                            children with disabilities;
                              [(iii) the termination of the
                            obligation of the agency, consistent
                            with this part, to provide a program of
                            special education to a particular child
                            with a disability that is an
                            exceptionally costly program, as
                            determined by the State educational
                            agency, because the child--
                                      [(I) has left the
                                    jurisdiction of the agency;
                                      [(II) has reached the age at
                                    which the obligation of the
                                    agency to provide a free
                                    appropriate public education to
                                    the child has terminated; or
                                      [(III) no longer needs such
                                    program of special education;
                                    or
                              [(iv) the termination of costly
                            expenditures for long-term purchases,
                            such as the acquisition of equipment or
                            the construction of school facilities.
                      [(C) Treatment of federal funds in certain
                    fiscal years.--
                              [(i) Notwithstanding clauses (ii) and
                            (iii) of subparagraph (A), for any
                            fiscal year for which amounts
                            appropriated to carry out section 611
                            exceeds $4,100,000,000, a local
                            educational agency may treat as local
                            funds, for the purpose of such clauses,
                            up to 20 percent of the amount of funds
                            it receives under this part that
                            exceeds the amount it received under
                            this part for the previous fiscal year.
                              [(ii) Notwithstanding clause (i), if
                            a State educational agency determines
                            that a local educational agency is not
                            meeting the requirements of this part
                            the State educational agency may
                            prohibit the local educational agency
                            from treating funds received under this
                            part as local funds under clause (i)
                            for any fiscal year, only if it is
                            authorized to do so by the State
                            constitution or a State statute.
                      [(D) Schoolwide programs under title i of the
                    esea.--Notwithstanding subparagraph (A) or any
                    other provision of this part a local
                    educational agency may use funds received under
                    this part for any fiscal year to carry out a
                    schoolwide program, under section 1114 of the
                    Elementary and Secondary Education Act of 1965,
                    except that the amount so used in any such
                    program shall not exceed--
                              [(i) the number of children with
                            disabilities participating in the
                            school wide 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 non-
                    disabled 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, tohave 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 non-compliance with Federal or State law or
            regulations, the State education 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
    Stateeducational 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 personal development for
                    individuals working on coordinated services.
        [(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 sub-
                            section; 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
            provide 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
    toenable 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 education 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 thechild on
    reaching the age of majority under section 615(m); and
                              [(viii) a statement of--
                                      [(1) 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 2year-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 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 determinationof
    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 education 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 expenses;
                      [(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
                    meeting 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 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 or 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 decisionsshall 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
    proceedingunder this section for services performed subsequent to the
    time of a written offer of settlement to a parent if--
                                      [(I) the offer is made within
                                    the time prescribed by Rule 68
                                    of the Federal Rules of Civil
                                    Procedure or, in the case of an
                                    administrative proceeding, at
                                    any time more than 10 days
                                    before the proceeding begins;
                                      [(II) the offer is not
                                    accepted within 10 days; and
                                      [(III) the court or
                                    administrative hearing officer
                                    finds that the relief finally
                                    obtained by the parents is not
                                    more favorable to the parents
                                    than the offer of settlement.
                              [(ii) 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.
        [(i) Maintenance of Current Educational Placement.--Except
    as provided in subsection (k)(7), during the pendency of
    anyproceedings 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 or
                                    possesses a weapon to or at
                                    school, on school premises, or
                                    to or at a school function
                                    under the jurisdiction of a
                                    State or 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'scurrent 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
                            licensedhealth-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 title shall be
    construed to restrict or limit the rights, procedures, and
    remedies available under the Constitution, the Americans with
    Disabilities Act of 1990, title V of the Rehabilitation Act of
    1973, or other Federal laws protecting the rights of children
    with disabilities, except that before the filing of a civil
    action under such laws seeking relief that is also available
    under this part, the procedures under subsections (f) and (g)
    shall be exhausted to the same extent as would be required had
    the action been brought under this part.
        [(m) Transfer of Parental Rights at Age of Majority.--
              [(1) In general.--A State that receives amounts from
            a grant under this part may provide that, when a child
            with a disability reaches the age of majority under
            State law (except for a child with a disability who has
            been determined to be incompetent under State law)--
                      [(A) the 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 eligibilityunder 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 forth-with 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 modifiedfindings 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 2, 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 through 5,
            inclusive; and
              [(2) at the State's discretion, to 2-year-old
            children with disabilities who will turn 3 during the
            school year.
        [(b) Eligibility.--A State shall be eligible for a grant
    under this section if such State--
              [(1) is eligible under section 612 to receive a grant
            under this part; and
              [(2) makes a free appropriate public education
            available to all children with disabilities, aged 3
            through 5, residing in the State.
        [(c) Allocations to States.--
              [(1) In general.--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 State 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' 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 if 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.
              [(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 withdisabilities 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 proverty, 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 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 3
            through 5 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 B--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES

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

      (a) Grants to States.--
              (1) Purpose of grants.--The Secretary shall make
            grants to States and the outlying areas, and provide
            funds to the Secretary of the Interior, to assist them
            to provide special education and related services to
            children with disabilities in accordance with this
            part.
              (2) Maximum amount.--The maximum amount available for
            awarding grants under this section for any fiscal year
            is--
                      (A) the total number of children with
                    disabilities in the 2002-2003 school year in
                    the States who received special education and
                    related services and who were--
                              (i) aged 3 through 5, if the State
                            was eligible for a grant under section
                            619; and
                              (ii) aged 6 through 21; multiplied by
                      (B) 40 percent of the average per-pupil
                    expenditure in public elementary schools and
                    secondary schools in the United States;
                    adjusted by;
                      (C) the rate of change in the sum of--
                              (i) 85 percent of the change in the
                            nationwide total of the population
                            described in subsection
                            (d)(3)(A)(i)(II); and
                              (ii) 15 percent of the change in the
                            nationwide total of the population
                            described in subsection
                            (d)(3)(A)(i)(III).
      (b) Outlying Areas and Freely Associated States.--
              (1) Funds reserved.--From the amount appropriated for
            any fiscal year under subsection (i), the Secretary
            shall reserve not more than 1 percent, which shall be
            used--
                      (A) to provide assistance to the outlying
                    areas in accordance with their respective
                    populations of individuals aged 3 through 21;
                    and
                      (B) to provide each freely associated State a
                    grant in the amount that such freely associated
                    State received for fiscal year 2003 under this
                    part, but only if the freely associated State
                    meets the applicable requirements of this part,
                    as well as the requirements of section
                    611(b)(2)(C) as such section was in effect on
                    the day before the date of enactment of the
                    Individuals with Disabilities Education
                    Improvement Act of 2003.
              (2) Special rule.--The provisions of Public Law 95-
            134, permitting the consolidation of grants by the
            outlying areas, shall not apply to funds provided to
            the outlying areas or the freely associated States
            under this section.
              (3) Definition.--As used in this subsection, the term
            ``freely associated States'' means the Republic of the
            Marshall Islands, the Federated States of Micronesia,
            and the Republic of Palau.
      (c) Secretary of the Interior.--From the amount appropriated
    for any fiscal year under subsection (i), the Secretary shall
    reserve 1.226 percent to provide assistance to the Secretary of
    the Interior in accordance with subsection (i).
      (d) Allocations to States.--
              (1) In general.--After reserving funds for studies
            and evaluations under section 665, and for payments to
            the outlying areas, the freely associated States, and
            the Secretary of the Interior under subsections (b) and
            (c) for a fiscal year, the Secretary shall allocate the
            remaining amount among the States in accordance with
            this subsection.
              (2) Special rule for use of fiscal year 1999
            amount.--If a State received any funds under this
            section for fiscal year 1999 on the basis of children
            aged 3 through 5, but does not make a free appropriate
            public education available to all children with
            disabilities aged 3 through 5 in the State in any
            subsequent fiscal year, the Secretary shall compute the
            State's amount for fiscal year 1999, solely for the
            purpose of calculating the State's allocation in that
            subsequent year under paragraph (3) or (4), by
            subtracting the amount allocated to the State for
            fiscal year 1999 on the basis of those children.
              (3) Increase in funds.--If the amount available for
            allocations to States under paragraph (1) for a fiscal
            year is equal to or greater than the amount allocated
            to the States under this paragraph for the preceding
            fiscal year, those allocations shall be calculated as
            follows:
                      (A) Allocation of increase.--
                              (i) In general.--Except as provided
                            in subparagraph (B), the Secretary
                            shall allocate for the fiscal year--
                                      (I) to each State the amount
                                    the State received under this
                                    section for fiscal year 1999;
                                      (II) 85 percent of any
                                    remaining funds to States on
                                    the basis of the States'
                                    relative populations of
                                    children aged 3 through 21 who
                                    are of the same age as children
                                    with disabilities for whom the
                                    State ensures the availability
                                    of a free appropriate public
                                    education under this part; and
                                      (III) 15 percent of those
                                    remaining funds to States on
                                    the basis of the States'
                                    relative populations of
                                    children described in subclause
                                    (II) who are living in poverty.
                              (ii) Data.--For the purpose of making
                            grants under this paragraph, the
                            Secretary shall use the most recent
                            population data, including data on
                            children living in poverty, that are
                            available and satisfactory to the
                            Secretary.
                      (B) Limitations.--Notwithstanding
                    subparagraph (A), allocations under this
                    paragraph shall be subject to the following:
                              (i) Preceding year allocation.--No
                            State's allocation shall be less than
                            its allocation under this section for
                            the preceding fiscal year.
                              (ii) Minimum.--No State's allocation
                            shall be less than the greatest of--
                                      (I) the sum of--
                                              (aa) the amount the
                                            State received under
                                            this section for fiscal
                                            year 1999; and
                                              (bb) \1/3\ of 1
                                            percent of the amount
                                            by which the amount
                                            appropriated under
                                            subsection (i) for the
                                            fiscal year exceeds the
                                            amount appropriated for
                                            this section for fiscal
                                            year 1999;
                                      (II) the sum of--
                                              (aa) the amount the
                                            State received under
                                            this section for the
                                            preceding fiscal year;
                                            and
                                              (bb) that amount
                                            multiplied by the
                                            percentage by which the
                                            increase in the funds
                                            appropriated for this
                                            section from the
                                            preceding fiscal year
                                            exceeds 1.5 percent; or
                                      (III) the sum of--
                                              (aa) the amount the
                                            State received under
                                            this section for the
                                            preceding fiscal year;
                                            and
                                              (bb) that amount
                                            multiplied by 90
                                            percent of the
                                            percentage increase in
                                            the amount appropriated
                                            for this section from
                                            the preceding fiscal
                                            year.
                              (iii) Maximum.--Notwithstanding
                            clause (ii), no State's allocation
                            under this paragraph shall exceed the
                            sum of--
                                      (I) the amount the State
                                    received under this section for
                                    the preceding fiscal year; and
                                      (II) that amount multiplied
                                    by the sum of 1.5 percent and
                                    the percentage increase in the
                                    amount appropriated under this
                                    section from the preceding
                                    fiscal year.
                      (C) Ratable reduction.--If the amount
                    available for allocations under this paragraph
                    is insufficient to pay those allocations in
                    full, those allocations shall be ratably
                    reduced, subject to subparagraph (B)(i).
              (4) Decrease in funds.--If the amount available for
            allocations to States under paragraph (1) for a fiscal
            year is less than the amount allocated to the States
            under this section for the preceding fiscal year, those
            allocations shall be calculated as follows:
                      (A) Amounts greater than fiscal year 1999
                    allocations.--If the amount available for
                    allocations is greater than the amount
                    allocated to the States for fiscal year 1999,
                    each State shall be allocated the sum of--
                              (i) the amount the State received
                            under this section for fiscal year
                            1999; and
                              (ii) an amount that bears the same
                            relation to any remaining funds as the
                            increase the State received under this
                            section for the preceding fiscal year
                            over fiscal year 1999 bears to the
                            total of all such increases for all
                            States.
                      (B) Amounts equal to or less than fiscal year
                    1999 allocations.--
                              (i) In general.--If the amount
                            available for allocations under this
                            paragraph is equal to or less than the
                            amount allocated to the States for
                            fiscal year 1999, each State shall be
                            allocated the amount the State received
                            for fiscal year 1999.
                              (ii) Ratable reduction.--If the
                            amount available for allocations under
                            this paragraph is insufficient to make
                            the allocations described in clause
                            (i), those allocations shall be ratably
                            reduced.
      (e) State-Level Activities.--
              (1) State administration.--
                      (A) In general.--For the purpose of
                    administering this part, including paragraph
                    (3), section 619, and the coordination of
                    activities under this part with, and providing
                    technical assistance to, other programs that
                    provide services to children with
                    disabilities--
                              (i) each State may reserve not more
                            than the maximum amount the State was
                            eligible to reserve for State
                            administration for fiscal year 2003 or
                            $800,000 (adjusted by the cumulative
                            rate of inflation since fiscal year
                            2003 as measured by the percentage
                            increase, if any, in the Consumer Price
                            Index for All Urban Consumers,
                            published by the Bureau of Labor
                            Statistics of the Department of Labor),
                            whichever is greater; and
                              (ii) each outlying area may reserve
                            not more than 5 percent of the amount
                            the outlying area receives under
                            subsection (b) for any fiscal year or
                            $35,000, whichever is greater.
                      (B) Part c.--Funds reserved under
                    subparagraph (A) may be used for the
                    administration of part C, if the State
                    educational agency is the lead agency for the
                    State under that part.
                      (C) Certification.--Prior to expenditure of
                    funds under this paragraph, the State shall
                    certify to the Secretary that the arrangements
                    to establish responsibility for services
                    pursuant to section 612(a)(12)(A) are current
                    as of the date of submission of the
                    certification.
              (2) Other state-level activities.--
                      (A) State-level activities.--
                              (i) In general.--For the purpose of
                            carrying out State-level activities,
                            each State may reserve for each of the
                            fiscal years 2004 and 2005, not more
                            than 10 percent of the amount that
                            remains after subtracting the amount
                            reserved under paragraph (1) from the
                            amount of the State's allocation under
                            subsection (d) for fiscal years 2004
                            and 2005, respectively. For fiscal
                            years 2006, 2007, 2008, and 2009, the
                            State may reserve the maximum amount
                            the State was eligible to reserve under
                            the preceding sentence for fiscal year
                            2005 (adjusted by the cumulative rate
                            of inflation since fiscal year 2005 as
                            measured by the percentage increase, if
                            any, in the Consumer Price Index for
                            All Urban Consumers, published by the
                            Bureau of Labor Statistics of the
                            Department of Labor).
                              (ii) Small State adjustment.--
                            Notwithstanding clause (i), in the case
                            of a State for which the maximum amount
                            reserved for State administration under
                            paragraph (1) is not greater than
                            $800,000 (as adjusted pursuant to
                            paragraph (1)(A)(i)), the State may
                            reserve for the purpose of carrying out
                            State-level activities for each of the
                            fiscal years 2004 and 2005, not more
                            than 12 percent of the amount that
                            remains after subtracting the amount
                            reserved under paragraph (1) from the
                            amount of the State's allocation under
                            subsection (d) for fiscal years 2004
                            and 2005, respectively. For each of the
                            fiscal years 2006, 2007, 2008, and
                            2009, each such State may reserve for
                            such purpose the maximum amount the
                            State was eligible to reserve under the
                            preceding sentence for fiscal year 2005
                            (adjusted by the cumulative rate of
                            inflation since fiscal year 2005 as
                            measured by the percentage increase, if
                            any, in the Consumer Price Index for
                            All Urban Consumers, published by the
                            Bureau of Labor Statistics of the
                            Department of Labor).
                      (B) Required activities.--Funds reserved
                    under subparagraph (A) shall be used to carry
                    out the following activities:
                              (i) For monitoring, enforcement and
                            complaint investigation.
                              (ii) To establish and implement the
                            mediation, processes required by
                            section 615(e)(1), including providing
                            for the costs of mediators and support
                            personnel;
                              (iii) To support the State protection
                            and advocacy system to advise and
                            assist parents in the areas of--
                                      (I) dispute resolution and
                                    due process;
                                      (II) voluntary mediation; and
                                      (III) the opportunity to
                                    resolve complaints.
                      (C) Authorized activities.--Funds reserved
                    under subparagraph (A) may be used to carry out
                    the following activities:
                              (i) For support and direct services,
                            including technical assistance,
                            personnel preparation, and professional
                            development and training.
                              (ii) To support paperwork reduction
                            activities, including expanding the use
                            of technology in the IEP process.
                              (iii) To assist local educational
                            agencies in providing positive
                            behavioral interventions and supports
                            and mental health services for children
                            with disabilities.
                              (iv) To improve the use of technology
                            in the classroom by children with
                            disabilities to enhance learning.
                              (v) To support the development and
                            use of technology, including
                            universally designed technologies and
                            assistive technology devices, to
                            maximize accessibility to the general
                            curriculum for children with
                            disabilities.
                              (vi) Development and implementation
                            of transition programs, including
                            coordination of services with agencies
                            involved in supporting the transition
                            of students with disabilities to post-
                            secondary activities.
                              (vii) To assist local educational
                            agencies in meeting personnel
                            shortages.
                              (viii) To support capacity-building
                            activities and improve the delivery of
                            services by local educational agencies
                            to improve results for children with
                            disabilities.
                              (ix) Alternative programming for
                            children who have been expelled from
                            school, and services for children in
                            correctional facilities, children
                            enrolled in State-operated or State-
                            supported schools, and children in
                            charter schools.
                              (x) To support the development and
                            provision of appropriate accommodations
                            for children with disabilities, or the
                            development and provision of alternate
                            assessments that are valid and reliable
                            for assessing the performance of
                            children with disabilities, in
                            accordance with sections 1111(b) and
                            6111 of the Elementary and Secondary
                            Education Act of 1965.
              (3) Local educational agency risk pool.--
                      (A) In general.--For the purpose of assisting
                    local educational agencies (and charter schools
                    that are local educational agencies) in
                    addressing the needs of high-need children and
                    the unanticipated enrollment of other children
                    eligible for services under this part, each
                    State shall reserve for each of the fiscal
                    years 2004 through 2009, 2 percent of the
                    amount that remains after subtracting the
                    amount reserved under paragraph (1) from the
                    amount of the State's allocation under
                    subsection (d) for each of the fiscal years
                    2004 through 2009, respectively, to--
                              (i) establish a high-cost fund; and
                              (ii) make disbursements from the
                            high-cost fund to local educational
                            agencies in accordance with this
                            paragraph.
                      (B) Required disbursements from the fund.--
                              (i) In general.--Each State
                            educational agency shall make
                            disbursements from the fund established
                            under subparagraph (A) to local
                            educational agencies to pay the
                            percentage, described in subparagraph
                            (D), of the costs of providing a free
                            appropriate public education to high-
                            need children.
                              (ii) Special rule.--If funds reserved
                            for a fiscal year under subparagraph
                            (A) are insufficient to pay the
                            percentage described in subparagraph
                            (D) to assist all the local educational
                            agencies having applications approved
                            under subparagraph (C), then the State
                            educational agency shall ratably reduce
                            the amount paid to each local
                            educational agency that receives a
                            disbursement for that fiscal year.
                      (C) Application.--A local educational agency
                    that desires a disbursement under this
                    subsection shall submit an application to the
                    State educational agency at such time, in such
                    manner, and containing such information as the
                    State educational agency may require. Such
                    application shall include assurances that funds
                    provided under this paragraph shall not be used
                    to pay costs that otherwise would be
                    reimbursable as medical assistance for a child
                    with a disability under the State medicaid
                    program under title XIX of the Social Security
                    Act.
                      (D) Disbursements.--
                              (i) In general.--A State educational
                            agency shall make a disbursement to a
                            local educational agency that submits
                            an application under subparagraph (C)
                            in an amount that is equal to 75
                            percent of the costs that are in excess
                            of 4 times the average per-pupil
                            expenditure in the United States or in
                            the State where the child resides
                            (whichever average per-pupil
                            expenditure is lower) associated with
                            educating each high need child served
                            by such local educational agency in a
                            fiscal year for whom such agency
                            desires a disbursement.
                              (ii) Appropriate costs.--The costs
                            associated with educating a high need
                            child under clause (i) are only those
                            costs associated with providing direct
                            special education and related services
                            to such child that are identified in
                            such child's appropriately developed
                            IEP.
                      (E) Legal fees.--The disbursements under
                    subparagraph (D) shall not support legal fees,
                    court costs, or other costs associated with a
                    cause of action brought on behalf of such child
                    to ensure a free appropriate public education
                    for such child.
                      (F) Permissible disbursements from remaining
                    funds.--A State educational agency may make
                    disbursements to local educational agencies
                    from any funds that are remaining in the high
                    cost fund after making the required
                    disbursements under subparagraph (D) for a
                    fiscal year for the following purposes:
                              (i) To pay the costs associated with
                            serving children with disabilities who
                            moved into the areas served by such
                            local agencies after the budget for the
                            following school year had been
                            finalized to assist the local
                            educational agencies in providing a
                            free appropriate public education for
                            such children in such year.
                              (ii) To compensate local educational
                            agencies for extraordinary costs, as
                            determined by the State, of any
                            children eligible for services under
                            this part due to--
                                      (I) unexpected enrollment or
                                    placement of children eligible
                                    for services under this part;
                                    or
                                      (II) a significant
                                    underestimate of the average
                                    cost of providing services to
                                    children eligible for services
                                    under this part.
                      (G) Remaining funds.--Funds reserved under
                    subparagraph (A) in any fiscal year but not
                    expended in that fiscal year pursuant to
                    subparagraph (D) or subparagraph (F) shall--
                              (i) be allocated to local educational
                            agencies pursuant to subparagraphs (D)
                            or (F) for the next fiscal year; or
                              (ii) be allocated to local
                            educational agencies in the same manner
                            as funds are allocated to local
                            educational agencies under subsection
                            (f).
                      (H) Assurance of a free appropriate public
                    education.--Nothing in this section shall be
                    construed--
                              (i) to limit or condition the right
                            of a child with a disability who is
                            assisted under this part to receive a
                            free appropriate public education
                            pursuant to section 612(a)(1) in a
                            least restrictive environment pursuant
                            to section 612(a)(5); or
                              (ii) to authorize a State educational
                            agency or local educational agency to
                            indicate a limit on what is expected to
                            be spent on the education of a child
                            with a disability.
                      (I) Medicaid services not affected.--
                    Disbursements provided under this subsection
                    shall not be used to pay costs that otherwise
                    would be reimbursable as medical assistance for
                    a child with a disability under the State
                    medicaid program under title XIX of the Social
                    Security Act.
                      (J) Definitions.--In this paragraph:
                              (i) Average per-pupil expenditure.--
                            The term ``average per-pupil
                            expenditure'' has the meaning given the
                            term in section 9101 of the Elementary
                            and Secondary Education Act of 1965.
                              (ii) High-need child.--The term
                            ``high-need'', when used with respect
                            to a child with a disability, means a
                            child with a disability for whom a free
                            appropriate public education in a
                            fiscal year costs more than 4 times the
                            average per-pupil expenditure for such
                            fiscal year.
                      (K) Special rule for risk pool and high-need
                    assistance programs in effect as of january 1,
                    2003.--Notwithstanding the provisions of
                    subparagraphs (A) through (J), a State may use
                    funds reserved pursuant to this paragraph for
                    administering and implementing a placement-
                    neutral cost-sharing and reimbursement program
                    of high-need, low-incidence, emergency,
                    catastrophic, or extraordinary aid to local
                    educational agencies that provides services to
                    students eligible under this part based on
                    eligibility criteria for such programs that
                    were operative on January 1, 2003.
              (4) Inapplicability of certain prohibitions.--A State
            may use funds the State reserves under paragraphs (1),
            (2), and (3) without regard to--
                      (A) the prohibition on commingling of funds
                    in section 612(a)(17)(B); and
                      (B) the prohibition on supplanting other
                    funds in section 612(a)(17)(C).
              (5) Report on use of funds.--As part of the
            information required to be submitted to the Secretary
            under section 612, each State shall annually describe
            how amounts under this section--
                      (A) will be used to meet the requirements of
                    this Act; and
                      (B) will be allocated among the activities
                    described in this section to meet State
                    priorities based on input from local
                    educational agencies.
              (6) Flexibility in using funds for part c.--Any State
            eligible to receive a grant under section 619 may use
            funds made available under paragraph (1)(A), subsection
            (f)(3), or section 619(f)(5) to develop and implement a
            State policy jointly with the lead agency under part C
            and the State educational agency to provide early
            intervention services (which shall include an
            educational component that promotes school readiness
            and incorporates pre-literacy, language, and numeracy
            skills) in accordance with part C to children with
            disabilities who are eligible for services under
            section 619 and who previously received services under
            part C until such children enter, or are eligible under
            State law to enter, kindergarten.
      (f) Subgrants to Local Educational Agencies.--
              (1) Subgrants required.--Each State that receives a
            grant under this section for any fiscal year shall
            distribute any funds the State does not reserve under
            subsection (e) to local educational agencies (including
            public charter schools that operate as local
            educational agencies) in the State that have
            established their eligibility under section 613 for use
            in accordance with this part.
              (2) Procedure for allocations to local educational
            agencies.--
                      (A) Procedure.--For each fiscal year for
                    which funds are allocated to States under
                    subsection (d), each State shall allocate funds
                    under paragraph (1) as follows:
                              (i) Base payments.--The State shall
                            first award each local educational
                            agency described in paragraph (1) the
                            amount the local educational agency
                            would have received under this section
                            for fiscal year 1999, if the State had
                            distributed 75 percent of its grant for
                            that year under section 611(d) as
                            section 611(d) was then in effect.
                              (ii) Allocation of remaining funds.--
                            After making allocations under clause
                            (i), the State shall--
                                      (I) allocate 85 percent of
                                    any remaining funds to those
                                    local educational agencies on
                                    the basis of the relative
                                    numbers of children enrolled in
                                    public and private elementary
                                    schools and secondary schools
                                    within the local educational
                                    agency's jurisdiction; and
                                      (II) allocate 15 percent of
                                    those remaining funds to those
                                    local educational agencies in
                                    accordance with their relative
                                    numbers of children living in
                                    poverty, as determined by the
                                    State educational agency.
              (3) Reallocation of funds.--If a State educational
            agency determines that a local educational agency is
            adequately providing a free appropriate public
            education to all children with disabilities residing in
            the area served by that local educational agency with
            State and local funds, the State educational agency may
            reallocate any portion of the funds under this part
            that are not needed by that local educational agency to
            provide a free appropriate public education to other
            local educational agencies in the State that are not
            adequately providing special education and related
            services to all children with disabilities residing in
            the areas served by those other local educational
            agencies.
      (g) Definitions.--For the purpose of this section--
              (1) the term ``average per-pupil expenditure in
            public elementary schools and secondary schools in the
            United States'' means--
                      (A) without regard to the source of funds--
                              (i) the aggregate current
                            expenditures, during the second fiscal
                            year preceding the fiscal year for
                            which the determination is made (or, if
                            satisfactory data for that year are not
                            available, during the most recent
                            preceding fiscal year for which
                            satisfactory data are available) of all
                            local educational agencies in the 50
                            States and the District of Columbia;
                            plus
                              (ii) any direct expenditures by the
                            State for the operation of those local
                            educational agencies; divided by
                      (B) the aggregate number of children in
                    average daily attendance to whom those local
                    educational agencies provided free public
                    education during that preceding year; and
              (2) the term ``State'' means each of the 50 States,
            the District of Columbia, and the Commonwealth of
            Puerto Rico.
      (h) Use of Amounts by Secretary of the Interior.--
              (1) Provision of amounts for assistance.--
                      (A) In general.--The Secretary of Education
                    shall provide amounts to the Secretary of the
                    Interior to meet the need for assistance for
                    the education of children with disabilities on
                    reservations aged 5 through 21 who are enrolled
                    in elementary schools and secondary schools for
                    Indian children operated or funded by the
                    Secretary of the Interior. The amount of such
                    payment for any fiscal year shall be equal to
                    80 percent of the amount allotted under
                    subsection (c) for that fiscal year.
                      (B) Calculation of number of children.--In
                    the case of Indian students aged 3 through 5
                    who are enrolled in programs affiliated with
                    the Bureau of Indian Affairs (hereafter in this
                    subsection referred to as ``BIA'') schools, and
                    that are required by the States in which such
                    schools are located to attain or maintain State
                    accreditation, and which schools had such
                    accreditation prior to the date of enactment of
                    the Individuals with Disabilities Education Act
                    Amendments of 1991, the school shall be allowed
                    to count those children for the purpose of
                    distribution of the funds provided under this
                    paragraph to the Secretary of the Interior. The
                    Secretary of the Interior shall be responsible
                    for meeting all of the requirements of this
                    part for these children, in accordance with
                    paragraph (2).
                      (C) Additional requirement.--With respect to
                    all other children aged 3 through 21 on
                    reservations, the State educational agency
                    shall be responsible for ensuring that all of
                    the requirements of this part are implemented.
              (2) Submission of information.--The Secretary of
            Education may provide the Secretary of the Interior
            amounts under paragraph (1) for a fiscal year only if
            the Secretary of the Interior submits to the Secretary
            of Education information that--
                      (A) demonstrates that the Department of the
                    Interior meets the appropriate requirements, as
                    determined by the Secretary of Education, of
                    sections 612 (including monitoring and
                    evaluation activities) and 613;
                      (B) includes a description of how the
                    Secretary of the Interior will coordinate the
                    provision of services under this part with
                    local educational agencies, tribes and tribal
                    organizations, and other private and Federal
                    service providers;
                      (C) includes an assurance that there are
                    public hearings, adequate notice of such
                    hearings, and an opportunity for comment
                    afforded to members of tribes, tribal governing
                    bodies, and affected local school boards before
                    the adoption of the policies, programs, and
                    procedures described in subparagraph (A);
                      (D) includes an assurance that the Secretary
                    of the Interior will provide such information
                    as the Secretary of Education may require to
                    comply with section 618;
                      (E) includes an assurance that the Secretary
                    of the Interior and the Secretary of Health and
                    Human Services have entered into a memorandum
                    of agreement, to be provided to the Secretary
                    of Education, for the coordination of services,
                    resources, and personnel between their
                    respective Federal, State, and local offices
                    and with State and local educational agencies
                    and other entities to facilitate the provision
                    of services to Indian children with
                    disabilities residing on or near reservations
                    (such agreement shall provide for the
                    apportionment of responsibilities and costs
                    including, but not limited to, child find,
                    evaluation, diagnosis, remediation or
                    therapeutic measures, and (where appropriate)
                    equipment and medical or personal supplies as
                    needed for a child to remain in school or a
                    program); and
                      (F) includes an assurance that the Department
                    of the Interior will cooperate with the
                    Department of Education in its exercise of
                    monitoring and oversight of this application,
                    and any agreements entered into between the
                    Secretary of the Interior and other entities
                    under this part, and will fulfill its duties
                    under this part.
              (3) Applicability.--Section 616(a) shall apply to the
            information described in this paragraph.
              (4) Payments for education and services for indian
            children with disabilities aged 3 through 5.--
                      (A) In general.--With funds appropriated
                    under subsection (i), the Secretary of
                    Education shall make payments to the Secretary
                    of the Interior to be distributed to tribes or
                    tribal organizations (as defined under section
                    4 of theIndian Self-Determination and Education
    Assistance Act) or consortia of the above to provide for the
    coordination of assistance for special education and related services
    for children with disabilities aged 3 through 5 on reservations served
    by elementary schools and secondary schools for Indian children
    operated or funded by the Department of the Interior. The amount of
    such payments under subparagraph (B) for any fiscal year shall be equal
    to 20 percent of the amount allotted under subsection (c).
                      (B) Distribution of funds.--The Secretary of
                    the Interior shall distribute the total amount
                    of the payment under subparagraph (A) by
                    allocating to each tribe or tribal organization
                    an amount based on the number of children with
                    disabilities ages 3 through 5 residing on
                    reservations as reported annually, divided by
                    the total of those children served by all
                    tribes or tribal organizations.
                      (C) Submission of information.--To receive a
                    payment under this paragraph, the tribe or
                    tribal organization shall submit such figures
                    to the Secretary of the Interior as required to
                    determine the amounts to be allocated under
                    subparagraph (B). This information shall be
                    compiled and submitted to the Secretary of
                    Education.
                      (D) Use of funds.--The funds received by a
                    tribe or tribal organization shall be used to
                    assist in child find, screening, and other
                    procedures for the early identification of
                    children aged 3 through 5, parent training, and
                    the provision of direct services. These
                    activities may be carried out directly or
                    through contracts or cooperative agreements
                    with the BIA, local educational agencies, and
                    other public or private nonprofit
                    organizations. The tribe or tribal organization
                    is encouraged to involve Indian parents in the
                    development and implementation of these
                    activities. The above entities shall, as
                    appropriate, make referrals to local, State, or
                    Federal entities for the provision of services
                    or further diagnosis.
                      (E) Biennial report.--To be eligible to
                    receive a grant pursuant to subparagraph (A),
                    the tribe or tribal organization shall provide
                    to the Secretary of the Interior a biennial
                    report of activities undertaken under this
                    paragraph, including the number of contracts
                    and cooperative agreements entered into, the
                    number of children contacted and receiving
                    services for each year, and the estimated
                    number of children needing services during the
                    2 years following the year in which the report
                    is made. The Secretary of the Interior shall
                    include a summary of this information on a
                    biennial basis in the report to the Secretary
                    of Education required under this subsection.
                    The Secretary of Education may require any
                    additional information from the Secretary of
                    the Interior.
                      (F) Prohibitions.--None of the funds
                    allocated under this paragraph may be used by
                    the Secretary of the Interior for
                    administrative purposes, including child count
                    and the provision of technical assistance.
              (5) Plan for coordination of services.--The Secretary
            of the Interior shall develop and implement a plan for
            the coordination of services for all Indian children
            with disabilities residing on reservations covered
            under this Act. Such plan shall provide for the
            coordination of services benefiting these children from
            whatever source, including tribes, the Indian Health
            Service, other BIA divisions, and other Federal
            agencies. In developing the plan, the Secretary of the
            Interior shall consult with all interested and involved
            parties. The plan shall be based on the needs of the
            children and the system best suited for meeting those
            needs, and may involve the establishment of cooperative
            agreements between the BIA, other Federal agencies, and
            other entities. The plan shall also be distributed upon
            request to States, State and local educational
            agencies, and other agencies providing services to
            infants, toddlers, and children with disabilities, to
            tribes, and to other interested parties.
              (6) Establishment of advisory board.--To meet the
            requirements of section 612(a)(20), the Secretary of
            the Interior shall establish, under the BIA, an
            advisory board composed of individuals involved in or
            concerned with the education and provision of services
            to Indian infants, toddlers, children, and youth with
            disabilities, including Indians with disabilities,
            Indian parents or guardians of such children, teachers,
            service providers, State and local educational
            officials, representatives of tribes or tribal
            organizations, representatives from State Interagency
            Coordinating Councils under section 641 in States
            having reservations, and other members representing the
            various divisions and entities of the BIA. The
            chairperson shall be selected by the Secretary of the
            Interior. The advisory board shall--
                      (A) assist in the coordination of services
                    within the BIA and with other local, State, and
                    Federal agencies in the provision of education
                    for infants, toddlers, and children with
                    disabilities;
                      (B) advise and assist the Secretary of the
                    Interior in the performance of the Secretary's
                    responsibilities described in this subsection;
                      (C) develop and recommend policies concerning
                    effective inter- and intra-agency
                    collaboration, including modifications to
                    regulations, and the elimination of barriers to
                    inter- and intra-agency programs and
                    activities;
                      (D) provide assistance and disseminate
                    information on best practices, effective
                    program coordination strategies, and
                    recommendations for improved educational
                    programming for Indian infants, toddlers, and
                    children with disabilities; and
                      (E) provide assistance in the preparation of
                    information required under paragraph (2)(D).
              (7) Annual reports.--
                      (A) In general.--The advisory board
                    established under paragraph (6) shall prepare
                    and submit to the Secretary of the Interior and
                    to Congress an annual report containing a
                    description of the activities of the advisory
                    board for the preceding year.
                      (B) Availability.--The Secretary of the
                    Interior shall make available to the Secretary
                    of Education the report described in
                    subparagraph (A).
      (i) Authorization of Appropriations.--For the purpose of
    carrying out this part, other than section 619, there are
    authorized to be appropriated 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 submits a plan that
    provides assurances to the Secretary that the State has in
    effect policies and procedures to ensure that the State meets
    each of the following conditions:
              (1) Free appropriate public education.--
                      (A) In general.--A free appropriate public
                    education is available to all children with
                    disabilities residing in the State between the
                    ages of 3 and 21, inclusive, including children
                    with disabilities who have been suspended or
                    expelled from school.
                      (B) Limitation.--The obligation to make a
                    free appropriate public education available to
                    all children with disabilities does not apply
                    with respect to children--
                              (i) aged 3 through 5 and 18 through
                            21 in a State to the extent that its
                            application to those children would be
                            inconsistent with State law or
                            practice, or the order of any court,
                            respecting the provision of public
                            education to children in those age
                            ranges; and
                              (ii) aged 18 through 21 to the extent
                            that State law does not require that
                            special education and related services
                            under this part be provided to children
                            with disabilities who, in the
                            educational placement prior to their
                            incarceration in an adult correctional
                            facility--
                                      (I) were not actually
                                    identified as being a child
                                    with a disability under section
                                    602(3); or
                                      (II) did not have an
                                    individualized education
                                    program under this part.
                      (C) State flexibility.--A State that provides
                    early intervention services in accordance with
                    part C to a child who is eligible for services
                    under section 619, is not required to provide
                    such child with a free appropriate public
                    education.
              (2) Full educational opportunity goal.--The State has
            established a goal of providing full educational
            opportunity to all children with disabilities and a
            detailed timetable for accomplishing that goal.
              (3) Child find.--
                      (A) In general.--All children with
                    disabilities residing in the State, including
                    children with disabilities attending private
                    schools, regardless of the severity of their
                    disabilities, and who are in need of special
                    education and related services, are identified,
                    located, and evaluated and a practical method
                    is developed and implemented to determine which
                    children with disabilities are currently
                    receiving needed special education and related
                    services.
                      (B) Construction.--Nothing in this Act
                    requires that children be classified by their
                    disability so long as each child who has a
                    disability listed in section 602 and who, by
                    reason of that disability, needs special
                    education and related services is regarded as a
                    child with a disability under this part.
              (4) Individualized education program.--An
            individualized education program, or an individualized
            family service plan that meets the requirements of
            section 636(d), is developed, reviewed, and revised for
            each child with a disability in accordance with section
            614(d).
              (5) Least restrictive environment.--
                      (A) In general.--To the maximum extent
                    appropriate, children with disabilities,
                    including children in public or private
                    institutions or other care facilities, are
                    educated with children who are not disabled,
                    and special classes, separate schooling, or
                    other removal of children with disabilities
                    from the regular educational environment occurs
                    only when the nature or severity of the
                    disability of a child is such that education in
                    regular classes with the use of supplementary
                    aids and services cannot be achieved
                    satisfactorily.
                      (B) Additional requirement.--
                              (i) In general.--A State funding
                            mechanism shall not result in
                            placements that violate the
                            requirements of subparagraph (A), and a
                            State shall not use a funding mechanism
                            by which the State distributes funds on
                            the basis of the type of setting in
                            which a child is served that will
                            result in the failure to provide a
                            child with a disability a free
                            appropriate public education according
                            to the unique needs of the child as
                            described in the child's IEP.
                              (ii) Assurance.--If the State does
                            not have policies and procedures to
                            ensure compliance with clause (i), the
                            State shall provide the Secretary an
                            assurance that the State will revise
                            the funding mechanism as soon as
                            feasible to ensure that such mechanism
                            does not result in such placements.
              (6) Procedural safeguards.--
                      (A) In general.--Children with disabilities
                    and their parents are afforded the procedural
                    safeguards required by section 615.
                      (B) Additional procedural safeguards.--
                    Procedures to ensure that testing and
                    evaluation materials and procedures utilized
                    for the purposes of evaluation and placement of
                    children with disabilities will be selected and
                    administered so as not to be racially or
                    culturally discriminatory. Such materials or
                    procedures shall be provided and administered
                    in the child's native language or mode of
                    communication, unless it clearly is not
                    feasible to do so, and no single procedure
                    shall be the sole criterion for determining an
                    appropriate educational program for a child.
              (7) Evaluation.--Children with disabilities are
            evaluated in accordance with subsections (a) and (b) of
            section 614.
              (8) Confidentiality.--Agencies in the State comply
            with section 617(c) (relating to the confidentiality of
            records and information).
              (9) Transition from part c to preschool programs.--
            Children participating in early-intervention programs
            assisted under part C, and who will participate in
            preschool programs assisted under this part, experience
            a smooth and effective transition to those preschool
            programs in a manner consistent with section 637(a)(8).
            By the third birthday of such a child, an
            individualized education program or, if consistent with
            sections 614(d)(2)(B) and 636(d), an individualized
            family service plan, has been developed and is being
            implemented for the child. The local educational agency
            will participate in transition planning conferences
            arranged by the designated lead agency under section
            635(a)(10).
              (10) Children in private schools.--
                      (A) Children enrolled in private schools by
                    their parents.--
                              (i) In general.--To the extent
                            consistent with the number and location
                            of children with disabilities in the
                            State who are enrolled by their parents
                            in private elementary schools and
                            secondary schools in the school
                            district served by a local educational
                            agency, provision is made for the
                            participation of those children in the
                            program assisted or carried out under
                            this part by providing for such
                            children special education and related
                            services in accordance with the
                            following requirements, unless the
                            Secretary has arranged for services to
                            those children under subsection (f):
                                      (I) Amounts to be expended
                                    for the provision of those
                                    services (including direct
                                    services to parentally placed
                                    children) by the local
                                    educational agency shall be
                                    equal to a proportionate amount
                                    of Federal funds made available
                                    under this part.
                                      (II) Such services may be
                                    provided to children with
                                    disabilities on the premises of
                                    private, including religious,
                                    schools, to the extent
                                    consistent with law.
                                      (III) Each local educational
                                    agency shall maintain in its
                                    records and provide to the
                                    State educational agency the
                                    number of children evaluated
                                    under this paragraph, the
                                    number of children determined
                                    to be children with
                                    disabilities, and the number of
                                    children served under this
                                    subsection.
                              (ii) Child-find requirement.--
                                      (I) In general.--The
                                    requirements of paragraph (3)
                                    of this subsection (relating to
                                    child find) shall apply with
                                    respect to children with
                                    disabilities in the State who
                                    are enrolled in private,
                                    including religious, elementary
                                    schools and secondary schools.
                                    Such child find process shall
                                    be conducted in a comparable
                                    time period as for other
                                    students attending public
                                    schools in the local
                                    educational agency.
                                      (II) Equitable
                                    participation.--The child find
                                    process shall be designed to
                                    ensure the equitable
                                    participation of parentally
                                    placed private school children
                                    and an accurate count of such
                                    children.
                                      (III) Activities.--In
                                    carrying out this clause, the
                                    local educational agency, or
                                    where applicable, the State
                                    educational agency, shall
                                    undertake activities similar to
                                    those activities undertaken for
                                    its public school children.
                                      (IV) Cost.--The cost of
                                    carrying out this clause,
                                    including individual
                                    evaluations, may not be
                                    considered in determining
                                    whether a local education
                                    agency has met its obligations
                                    under clause (i).
                              (iii) Consultation.--To ensure timely
                            and meaningful consultation, a local
                            educational agency, or where
                            appropriate, a State educational
                            agency, shall consult, with
                            representatives of children with
                            disabilities who are parentally placed
                            in private schools, during the design
                            and development of special education
                            and related services for these
                            children, including consultation
                            regarding--
                                      (I) the child find process
                                    and how parentally placed
                                    private school children
                                    suspected of having a
                                    disability can participate
                                    equitably, including how
                                    parents, teachers, and private
                                    school officials will be
                                    informed of the process;
                                      (II) the determination of the
                                    proportionate share of Federal
                                    funds available to serve
                                    parentally placed private
                                    school children with
                                    disabilities under this
                                    paragraph, including the
                                    determination of how the
                                    proportionate share of those
                                    funds were calculated;
                                      (III) the consultation
                                    process among the school
                                    district, private school
                                    officials, and parents of
                                    parentally placed private
                                    school children with
                                    disabilities, including how
                                    such process will operate
                                    throughout the school year to
                                    ensure that parentally placed
                                    children with disabilities
                                    identified through the child
                                    find process can meaningfully
                                    participate in special
                                    education and related services;
                                      (IV) how, where, and by whom
                                    special education and related
                                    services will be provided for
                                    parentally placed private
                                    school children, including a
                                    discussion of alternate service
                                    delivery mechanisms, how such
                                    services will be apportioned if
                                    funds are insufficient to serve
                                    all children, and how and when
                                    these decisions will be made;
                                    and
                                      (V) how, if the local
                                    educational agency disagrees
                                    with the views of the private
                                    school officials on the
                                    provision of services through a
                                    contract, the local educational
                                    agency shall provide to the
                                    private school officials a
                                    written explanation of the
                                    reasons why the local
                                    educational agency chose not to
                                    provide services through a
                                    contract.
                              (iv) Written affirmation.--When
                            timely and meaningful consultation as
                            required by this section has occurred,
                            the local educational agency shall
                            obtain a written affirmation signed by
                            the representatives of participating
                            private schools, and if such officials
                            do not provide such affirmations within
                            a reasonable period of time, the local
                            educational agency shall forward the
                            documentation of the consultation
                            process to the State educational
                            agency.
                              (v) Compliance.--
                                      (I) In general.--A private
                                    school official shall have the
                                    right to complain to the State
                                    educational agency that the
                                    local educational agency did
                                    not engage in consultation that
                                    was meaningful and timely, or
                                    did not give due consideration
                                    to the views of the private
                                    school official.
                                      (II) Procedure.--If the
                                    private school official wishes
                                    to complain, the official shall
                                    provide the basis of the
                                    noncompliance with this section
                                    by the local educational agency
                                    to the State educational
                                    agency, and the local
                                    educational agency shall
                                    forward the appropriate
                                    documentation to the State
                                    educational agency. If the
                                    private school official is
                                    dissatisfied with the decision
                                    of the State educational
                                    agency, such official may
                                    complain to the Secretary by
                                    providing the basis of the
                                    noncompliance with this section
                                    by the local educational agency
                                    to the Secretary, and the State
                                    educational agency shall
                                    forward the appropriate
                                    documentation to the Secretary.
                              (vi) Provision of equitable
                            services.--
                                      (I) Direct services.--To the
                                    extent practicable, the local
                                    educational agency shall
                                    provide direct services to
                                    children with disabilities
                                    parentally placed in private
                                    schools.
                                      (II) Directly or through
                                    contracts.--A public agency may
                                    provide special education and
                                    related services directly or
                                    through contracts with public
                                    and private agencies,
                                    organizations, and
                                    institutions.
                                      (III) Secular, neutral,
                                    nonideological.--Special
                                    education and related services
                                    provided to children with
                                    disabilities attending private
                                    schools, including materials
                                    and equipment, shall be
                                    secular, neutral, and
                                    nonideological.
                              (vii) Public control of funds.--The
                            control of funds used to provide
                            special education and related services
                            under this section, and title to
                            materials, equipment, and property
                            purchased with those funds, shall be in
                            a public agency for the uses and
                            purposes provided in this Act, and a
                            public agency shall administer the
                            funds and property.
                      (B) Children placed in, or referred to,
                    private schools by public agencies.--
                              (i) In general.--Children with
                            disabilities in private schools and
                            facilities are provided special
                            education and related services, in
                            accordance with an individualized
                            education program, at no cost to their
                            parents, if such children are placed
                            in, or referred to, such schools or
                            facilities by the State or appropriate
                            local educational agency as the means
                            of carrying out the requirements of
                            this part or any other applicable law
                            requiring the provision of special
                            education and related services to all
                            children with disabilities within such
                            State.
                              (ii) Standards.--In all cases
                            described in clause (i), the State
                            educational agency shall determine
                            whether such schools and facilities
                            meet standards that apply to State and
                            local educational agencies and that
                            children so served have all the rights
                            the children would have if served by
                            such agencies.
                      (C) Payment for education of children
                    enrolled in private schools without consent of
                    or referral by the public agency.--
                              (i) In general.--Subject to
                            subparagraph (A), this part does not
                            require a local educational agency to
                            pay for the cost of education,
                            including special education and related
                            services, of a child with a disability
                            at a private school or facility if that
                            agency made a free appropriate public
                            education available to the child and
                            the parents elected to place the child
                            in such private school or facility.
                              (ii) Reimbursement for private school
                            placement.--If the parents of a child
                            with a disability, who previously
                            received special education and related
                            services under the authority of a
                            public agency, enroll the child in a
                            private elementary school or secondary
                            school without the consent of or
                            referral by the public agency, a court
                            or a hearing officer may require the
                            agency to reimburse the parents for the
                            cost of that enrollment if the court or
                            hearing officer finds that the agency
                            had not made a free appropriate public
                            education available to the child in a
                            timely manner prior to that enrollment.
                              (iii) Limitation on reimbursement.--
                            The cost of reimbursement described in
                            clause (ii) may be reduced or denied--
                                      (I) if--
                                              (aa) at the most
                                            recent IEP meeting that
                                            the parents attended
                                            prior to removal of the
                                            child from the public
                                            school, the parents did
                                            not inform the IEP Team
                                            that they were
                                            rejecting the placement
                                            proposed by the public
                                            agency to provide a
                                            free appropriate public
                                            education to their
                                            child, including
                                            stating their concerns
                                            and their intent to
                                            enroll their child in a
                                            private school at
                                            public expense; or
                                              (bb) 10 business days
                                            (including any holidays
                                            that occur on a
                                            business day) prior to
                                            the removal of the
                                            child from the public
                                            school, the parents did
                                            not give written notice
                                            to the public agency of
                                            the information
                                            described in division
                                            (aa);
                                      (II) if, prior to the
                                    parents' removal of the child
                                    from the public school, the
                                    public agency informed the
                                    parents, through the notice
                                    requirements described in
                                    section 615(b)(3), of its
                                    intent to evaluate the child
                                    (including a statement of the
                                    purpose of the evaluation that
                                    was appropriate and
                                    reasonable), but the parents
                                    did not make the child
                                    available for such evaluation;
                                    or
                                      (III) upon a judicial finding
                                    of unreasonableness with
                                    respect to actions taken by the
                                    parents.
                              (iv) Exception.--Notwithstanding the
                            notice requirement in clause (iii)(I),
                            the cost of reimbursement--
                                      (I) shall not be reduced or
                                    denied for failure to provide
                                    such notice if--
                                              (aa) the school
                                            prevented the parent
                                            from providing such
                                            notice; or
                                              (bb) the parents had
                                            not received notice,
                                            pursuant to section
                                            615, of the notice
                                            requirement in clause
                                            (iii)(I); and
                                      (II) may, in the discretion
                                    of a court or a hearing
                                    officer, not be reduced or
                                    denied for failure to provide
                                    such notice if--
                                              (aa) the parent is
                                            illiterate and cannot
                                            write in English; or
                                              (bb) compliance with
                                            clause (iii)(I) would
                                            likely have resulted in
                                            physical or serious
                                            emotional harm to the
                                            child.
              (11) State educational agency responsible for general
            supervision.--
                      (A) In general.--The State educational agency
                    is responsible for ensuring that--
                              (i) the requirements of this part are
                            met; and
                              (ii) all educational programs for
                            children with disabilities in the
                            State, including all such programs
                            administered by any other State or
                            local agency--
                                      (I) are under the general
                                    supervision of individuals in
                                    the State who are responsible
                                    for educational programs for
                                    children with disabilities; and
                                      (II) meet the educational
                                    standards of the State
                                    educational agency.
                      (B) Limitation.--Subparagraph (A) shall not
                    limit the responsibility of agencies in the
                    State other than the State educational agency
                    to provide, or pay for some or all of the costs
                    of, a free appropriate public education for any
                    child with a disability in the State.
                      (C) Exception.--Notwithstanding subparagraphs
                    (A) and (B), the Governor (or another
                    individual pursuant to State law), consistent
                    with State law, may assign to any public agency
                    in the State the responsibility of ensuring
                    that the requirements of this part are met with
                    respect to children with disabilities who are
                    convicted as adults under State law and
                    incarcerated in adult prisons.
              (12) Obligations related to and methods of ensuring
            services.--
                      (A) Establishing responsibility for
                    services.--The Chief Executive Officer of a
                    State or designee of the officer shall ensure
                    that an interagency agreement or other
                    mechanism for interagency coordination is in
                    effect between each public agency described in
                    subparagraph (B) and the State educational
                    agency, in order to ensure that all services
                    described in subparagraph (B)(i) that are
                    needed to ensure a free appropriate public
                    education are provided, including the provision
                    of such services during the pendency of any
                    dispute under clause (iii). Such agreement or
                    mechanism shall include the following:
                              (i) Agency financial
                            responsibility.--An identification of,
                            or a method for defining, the financial
                            responsibility of each agency for
                            providing services described in
                            subparagraph (B)(i) to ensure a free
                            appropriate public education to
                            children with disabilities, provided
                            that the financial responsibility of
                            each public agency described in
                            subparagraph (B), including the State
                            Medicaid agency and other public
                            insurers of children with disabilities,
                            shall precede the financial
                            responsibility of the local educational
                            agency (or the State agency responsible
                            for developing the child's IEP).
                              (ii) Conditions and terms of
                            reimbursement.--The conditions, terms,
                            and procedures under which a local
                            educational agency shall be reimbursed
                            by other agencies.
                              (iii) Interagency disputes.--
                            Procedures for resolving interagency
                            disputes (including procedures under
                            which local educational agencies may
                            initiate proceedings) under the
                            agreement or other mechanism to secure
                            reimbursement from other agencies or
                            otherwise implement the provisions of
                            the agreement or mechanism.
                              (iv) Coordination of services
                            procedures.--Policies and procedures
                            for agencies to determine and identify
                            the interagency coordination
                            responsibilities of each agency to
                            promote the coordination and timely and
                            appropriate delivery of services
                            described in subparagraph (B)(i).
                      (B) Obligation of public agency.--
                              (i) In general.--If any public agency
                            other than an educational agency is
                            otherwise obligated under Federal or
                            State law, or assigned responsibility
                            under State policy pursuant to
                            subparagraph (A), to provide or pay for
                            any services that are also considered
                            special education or related services
                            (such as, but not limited to, services
                            described in section 602(1) relating to
                            assistive technology devices, 602(2)
                            relating to assistive technology
                            services, 602(25) relating to related
                            services, 602(32) relating to
                            supplementary aids and services, and
                            602(33) relating to transition
                            services) that are necessary for
                            ensuring a free appropriate public
                            education to children with disabilities
                            within the State, such public agency
                            shall fulfill that obligation or
                            responsibility, either directly or
                            through contract or other arrangement
                            pursuant to subparagraph (A) or an
                            agreement pursuant to subparagraph (C).
                              (ii) Reimbursement for services by
                            public agency.--If a public agency
                            other than an educational agency fails
                            to provide or pay for the special
                            education and related services
                            described in clause (i), the local
                            educational agency (or State agency
                            responsible for developing the child's
                            IEP) shall provide or pay for such
                            services to the child. Such local
                            educational agency or State agency is
                            authorized to claim reimbursement for
                            the services from the public agency
                            that failed to provide or pay for such
                            services and such public agency shall
                            reimburse the local educational agency
                            or State agency pursuant to the terms
                            of the interagency agreement or other
                            mechanism described in subparagraph
                            (A)(i) according to the procedures
                            established in such agreement pursuant
                            to subparagraph (A)(ii).
                      (C) Special rule.--The requirements of
                    subparagraph (A) may be met through--
                              (i) State statute or regulation;
                              (ii) signed agreements between
                            respective agency officials that
                            clearly identify the responsibilities
                            of each agency relating to the
                            provision of services; or
                              (iii) other appropriate written
                            methods as determined by the Chief
                            Executive Officer of the State or
                            designee of the officer and approved by
                            the Secretary.
              (13) Procedural requirements relating to local
            educational agency eligibility.--The State educational
            agency will not make a final determination that a local
            educational agency is not eligible for assistance under
            this part without first affording that agency
            reasonable notice and an opportunity for a hearing.
              (14) Personnel standards.--
                      (A) In general.--The State educational agency
                    has established and maintains standards to
                    ensure that personnel necessary to carry out
                    this part are appropriately and adequately
                    prepared and trained, including that those
                    personnel have the content knowledge and skills
                    to serve children with disabilities.
                      (B) Related services personnel and
                    paraprofessionals.--The standards under
                    subparagraph (A) include standards for related
                    services personnel and paraprofessionals that--
                              (i) are consistent with any State-
                            approved or State-recognized
                            certification, licensing, registration,
                            or other comparable requirements that
                            apply to the professional discipline in
                            which those personnel are providing
                            special education or related services;
                              (ii) ensure that related services
                            personnel who deliver services in their
                            discipline or profession meet the
                            requirements of clause (i) and have not
                            had certification or licensure
                            requirements waived on an emergency,
                            temporary, or provisional basis; and
                              (iii) allow paraprofessionals and
                            assistants who are appropriately
                            trained and supervised, in accordance
                            with State law, regulation, or written
                            policy, in meeting the requirements of
                            this part to be used to assist in the
                            provision of special education and
                            related services under this part to
                            children with disabilities.
                      (C) Standards for special education
                    teachers.--
                              (i) In general.--The standards
                            described in subparagraph (A) shall
                            ensure that each person employed as a
                            special education teacher in the State
                            who teaches in an elementary, middle,
                            or secondary school is highly qualified
                            not later than the end of the 2006-2007
                            school year.
                              (ii) Compliance.--Notwithstanding
                            paragraphs (2) and (3) of section
                            1119(a) of the Elementary and Secondary
                            Education Act of 1965, for purposes of
                            determining compliance with such
                            paragraphs--
                                      (I) the Secretary, the State
                                    educational agency, and local
                                    educational agencies shall
                                    apply the definition of highly
                                    qualified in section 602(10) to
                                    special education teachers; and
                                      (II) the State shall ensure
                                    that all special education
                                    teachers teaching in core
                                    academic subjects within the
                                    State are highly qualified (as
                                    defined in section 602(10)) not
                                    later than the end of the 2006-
                                    2007 school year.
                              (iii) Parents' right to know.--In
                            carrying out section 1111(h)(6) of the
                            Elementary and Secondary Education Act
                            of 1965 with respect to special
                            education teachers, a local educational
                            agency shall--
                                      (I) include in a response to
                                    a request under such section
                                    any additional information
                                    needed to demonstrate that the
                                    teacher meets the applicable
                                    requirements of section 602(10)
                                    relating to certification or
                                    licensure as a special
                                    education teacher; and
                                      (II) apply the definition of
                                    highly qualified in section
                                    602(10) in carrying out section
                                    1111(h)(6)(B)(ii).
                      (D) Policy.--In implementing this section, a
                    State shall adopt a policy that includes a
                    requirement that local educational agencies in
                    the State take measurable steps to recruit,
                    hire, train, and retain highly qualified
                    personnel to provide special education and
                    related services under this part to children
                    with disabilities.
                      (E) Rule of construction.--Notwithstanding
                    any other individual right of action that a
                    parent or student may maintain under this part,
                    nothing in this subsection shall be construed
                    to create a right of action on behalf of an
                    individual student for the failure of a
                    particular State educational agency or local
                    educational agency staff person to be highly
                    qualified, or to prevent a parent from filing a
                    complaint about staff qualifications with the
                    State educational agency as provided for under
                    this part.
              (15) Performance goals and indicators.--The State--
                      (A) has established goals for the performance
                    of children with disabilities in the State
                    that--
                              (i) promote the purposes of this Act,
                            as stated in section 601(d);
                              (ii) are the same as the State's
                            definition of adequate yearly progress,
                            including the State's objectives for
                            progress by children with disabilities,
                            under section 1111(b)(2)(C) of the
                            Elementary and Secondary Education Act
                            of 1965;
                              (iii) address graduation rates and
                            drop out rates, as well as such other
                            factors as the State may determine; and
                              (iv) are consistent, to the extent
                            appropriate, with any other goals and
                            standards for children established by
                            the State;
                      (B) has established performance indicators
                    the State will use to assess progress toward
                    achieving the goals described in subparagraph
                    (A), including measurable annual objectives for
                    progress by children with disabilities under
                    section 1111(b)(2)(C)(v)(II)(cc) of the
                    Elementary and Secondary Education Act of 1965;
                    and
                      (C) will annually report to the Secretary and
                    the public on the progress of the State, and of
                    children with disabilities in the State, toward
                    meeting the goals established under
                    subparagraph (A).
              (16) Participation in assessments.--
                      (A) In general.--All children with
                    disabilities are included in all general State
                    and districtwide assessment programs and
                    accountability systems, including assessments
                    and accountability systems described under
                    section 1111 of the Elementary and Secondary
                    Education Act of 1965, with appropriate
                    accommodations, alternate assessments where
                    necessary, and as indicated in their respective
                    individualized education programs.
                      (B) Accommodation guidelines.--The State (or,
                    in the case of a districtwide assessment, the
                    local educational agency) has developed
                    guidelines for the provision of appropriate
                    accommodations.
                      (C) Alternate assessments.--
                              (i) In general.--The State (or, in
                            the case of a districtwide assessment,
                            the local educational agency) has
                            developed and implemented guidelines
                            for the participation of children with
                            disabilities in alternate assessments
                            for those children who cannot
                            participate in regular assessments
                            under subparagraph (B) as indicated in
                            their respective individualized
                            education programs.
                              (ii) Requirements for alternate
                            assessments.--The guidelines under
                            clause (i) shall provide for alternate
                            assessments that--
                                      (I) are aligned with the
                                    State's challenging academic
                                    content and academic
                                    achievement standards; and
                                      (II) if the State has adopted
                                    alternate academic achievement
                                    standards permitted under
                                    section 1111(b)(1) of the
                                    Elementary and Secondary
                                    Education Act of 1965, measure
                                    the achievement of children
                                    with disabilities against those
                                    standards.
                              (iii) Conduct of alternative
                            assessments.--The State conducts the
                            alternate assessments described in this
                            subparagraph.
                      (D) Reports.--The State educational agency
                    (or, in the case of a districtwide assessment,
                    the local educational agency) makes available
                    to the public, and reports to the public with
                    the same frequency and in the same detail as it
                    reports on the assessment of nondisabled
                    children, the following:
                              (i) The number of children with
                            disabilities participating in regular
                            assessments, and the number of those
                            children who were provided
                            accommodations in order to participate
                            in those assessments.
                              (ii) The number of children with
                            disabilities participating in alternate
                            assessments described in subparagraph
                            (C)(ii)(I).
                              (iii) The number of children with
                            disabilities participating in alternate
                            assessments described in subparagraph
                            (C)(ii)(II).
                              (iv) The performance of children with
                            disabilities on regular assessments and
                            on alternate assessments (if the number
                            of children with disabilities
                            participating in those assessments is
                            sufficient to yield statistically
                            reliable information and reporting that
                            information will not reveal personally
                            identifiable information about an
                            individual student), compared with the
                            achievement of all children, including
                            children with disabilities, on those
                            assessments.
                      (E) Universal design.--The State educational
                    agency (or, in the case of a districtwide
                    assessment, the local educational agency)
                    shall, to the extent feasible, use universal
                    design principles in developing and
                    administering any assessments under this
                    paragraph.
              (17) Supplementation of state, local, and other
            federal funds.--
                      (A) Expenditures.--Funds paid to a State
                    under this part will be expended in accordance
                    with all the provisions of this part.
                      (B) Prohibition against commingling.--Funds
                    paid to a State under this part will not be
                    commingled with State funds.
                      (C) Prohibition against supplantation and
                    conditions for waiver by secretary.--Except as
                    provided in section 613, funds paid to a State
                    under this part will be used to supplement the
                    level of Federal, State, and local funds
                    (including funds that are not under the direct
                    control of State or local educational agencies)
                    expended for special education and related
                    services provided to children with disabilities
                    under this part and in no case to supplant such
                    Federal, State, and local funds, except that,
                    where the State provides clear and convincing
                    evidence that all children with disabilities
                    have available to them a free appropriate
                    public education, the Secretary may waive, in
                    whole or in part, the requirements of this
                    subparagraph if the Secretary concurs with the
                    evidence provided by the State.
              (18) Maintenance of state financial support.--
                      (A) In general.--The State does not reduce
                    the amount of State financial support for
                    special education and related services for
                    children with disabilities, or otherwise made
                    available because of the excess costs of
                    educating those children, below the amount of
                    that support for the preceding fiscal year.
                      (B) Reduction of funds for failure to
                    maintain support.--The Secretary shall reduce
                    the allocation of funds under section 611 for
                    any fiscal year following the fiscal year in
                    whichthe State fails to comply with the
    requirement of subparagraph (A) by the same amount by which the State
    fails to meet the requirement.
                      (C) Waivers for exceptional or uncontrollable
                    circumstances.--The Secretary may waive the
                    requirement of subparagraph (A) for a State,
                    for 1 fiscal year at a time, if the Secretary
                    determines that--
                              (i) granting a waiver would be
                            equitable due to exceptional or
                            uncontrollable circumstances such as a
                            natural disaster or a precipitous and
                            unforeseen decline in the financial
                            resources of the State; or
                              (ii) the State meets the standard in
                            paragraph (17)(C) for a waiver of the
                            requirement to supplement, and not to
                            supplant, funds received under this
                            part.
                      (D) Subsequent years.--If, for any year, a
                    State fails to meet the requirement of
                    subparagraph (A), including any year for which
                    the State is granted a waiver under
                    subparagraph (C), the financial support
                    required of the State in future years under
                    subparagraph (A) shall be the amount that would
                    have been required in the absence of that
                    failure and not the reduced level of the
                    State's support.
              (19) Public participation.--Prior to the adoption of
            any policies and procedures needed to comply with this
            section (including any amendments to such policies and
            procedures), the State ensures that there are public
            hearings, adequate notice of the hearings, and an
            opportunity for comment available to the general
            public, including individuals with disabilities and
            parents of children with disabilities.
              (20) State advisory panel.--
                      (A) In general.--The State has established
                    and maintains an advisory panel for the purpose
                    of providing policy guidance with respect to
                    special education and related services for
                    children with disabilities in the State.
                      (B) Membership.--Such advisory panel shall
                    consist of members appointed by the Governor,
                    or any other official authorized under State
                    law to make such appointments, that is
                    representative of the State population and that
                    is composed of individuals involved in, or
                    concerned with, the education of children with
                    disabilities, including--
                              (i) parents of children with
                            disabilities ages birth through 26;
                              (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 1 representative of a
                            vocational, community, or business
                            organization concerned with the
                            provision of transition services to
                            children with disabilities; and
                              (x) representatives from the State
                            juvenile and adult corrections
                            agencies.
                      (C) Special rule.--A majority of the members
                    of the panel shall be individuals with
                    disabilities ages birth through 26 or parents
                    of such individuals.
                      (D) Duties.--The advisory panel shall--
                              (i) advise the State educational
                            agency of unmet needs within the State
                            in the education of children with
                            disabilities;
                              (ii) comment publicly on any rules or
                            regulations proposed by the State
                            regarding the education of children
                            with disabilities;
                              (iii) advise the State educational
                            agency in developing evaluations and
                            reporting on data to the Secretary
                            under section 618;
                              (iv) advise the State educational
                            agency in developing corrective action
                            plans to address findings identified in
                            Federal monitoring reports under this
                            part; and
                              (v) advise the State educational
                            agency in developing and implementing
                            policies relating to the coordination
                            of services for children with
                            disabilities.
              (21) Suspension and expulsion rates.--
                      (A) In general.--The State educational agency
                    examines data to determine if significant
                    discrepancies are occurring in the rate of
                    long-term suspensions and expulsions of
                    children with disabilities--
                              (i) among local educational agencies
                            in the State; or
                              (ii) compared to such rates for
                            nondisabled children within such
                            agencies.
                      (B) Review and revision of policies.--If such
                    discrepancies are occurring, the State
                    educational agency reviews and, if appropriate,
                    revises (or requires the affected State or
                    local educational agency to revise) its
                    policies, procedures, and practices relating to
                    the development and implementation of IEPs, the
                    use of behavioral interventions, and procedural
                    safeguards, to ensure that such policies,
                    procedures, and practices comply with this Act.
              (22) Access to instructional materials.--
                      (A) In general.--The State adopts the
                    national Instructional Materials Accessibility
                    Standard described in section 675(a) for the
                    purposes of providing instructional materials
                    to blind persons or other persons with print
                    disabilities in a timely manner after the
                    publication of the standard in the Federal
                    Register.
                      (B) Preparation and delivery of files.--Not
                    later than 2 years after the date of enactment
                    of the Individuals with Disabilities Education
                    Improvement Act of 2003, a State educational
                    agency, as part of any print instructional
                    materials adoption process, procurement
                    contract, or other practice or instrument used
                    for purchase of print instructional materials,
                    enters into a written contract with the
                    publisher of the print instructional materials
                    to--
                              (i) prepare, and on or before
                            delivery of the print instructional
                            materials, provide to the National
                            Instructional Materials Access Center,
                            established pursuant to section 675(b),
                            electronic files containing the
                            contents of the print instructional
                            materials using the Instructional
                            Materials Accessibility Standard; or
                              (ii) purchase instructional materials
                            from a publisher that are produced in
                            or may be rendered in the specialized
                            formats described in section
                            675(a)(4)(C).
                      (C) Assistive technology.--In carrying out
                    subparagraph (B), the State educational agency,
                    to the maximum extent possible, shall work
                    collaboratively with the State agency
                    responsible for assistive technology programs.
      (b) State Educational Agency as Provider of Free Appropriate
    Public Education or Direct Services.--If the State educational
    agency provides free appropriate public education to children
    with disabilities, or provides direct services to such
    children, such agency--
              (1) shall comply with any additional requirements of
            section 613(a), as if such agency were a local
            educational agency; and
              (2) may use amounts that are otherwise available to
            such agency under this part to serve those children
            without regard to section 613(a)(2)(A)(i) (relating to
            excess costs).
      (c) Exception for Prior State Plans.--
              (1) In general.--If a State has on file with the
            Secretary policies and procedures that demonstrate that
            such State meets any requirement of subsection (a),
            including any policies and procedures filed under this
            part as in effect before the effective date of the
            Individuals with Disabilities Education Improvement Act
            of 2003, the Secretary shall consider such State to
            have met such requirement for purposes of receiving a
            grant under this part.
              (2) Modifications made by state.--Subject to
            paragraph (3), an application submitted by a State in
            accordance with this section shall remain in effect
            until the State submits to the Secretary such
            modifications as the State determines necessary. This
            section shall apply to a modification to an application
            to the same extent and in the same manner as this
            section applies to the original plan.
              (3) Modifications required by the secretary.--If,
            after the effective date of the Individuals with
            Disabilities Education Improvement Act of 2003, the
            provisions of this Act are amended (or the regulations
            developed to carry out this Act are amended), there is
            a new interpretation of this Act by a Federal court or
            a State's highest court, or there is an official
            finding of noncompliance with Federal law or
            regulations, then the Secretary may require a State to
            modify its application only to the extent necessary to
            ensure the State's compliance with this part.
      (d) Approval by the Secretary.--
              (1) In general.--If the Secretary determines that a
            State is eligible to receive a grant under this part,
            the Secretary shall notify the State of that
            determination.
              (2) Notice and hearing.--The Secretary shall not make
            a final determination that a State is not eligible to
            receive a grant under this part until after providing
            the State--
                      (A) with reasonable notice; and
                      (B) with an opportunity for a hearing.
      (e) Assistance Under Other Federal Programs.--Nothing in this
    title permits a State to reduce medical and other assistance
    available, or to alter eligibility, under titles V and XIX of
    the Social Security Act with respect to the provision of a free
    appropriate public education for children with disabilities in
    the State.
      (f) By-Pass for Children in Private Schools.--
              (1) In general.--If, on the date of enactment of the
            Education of the Handicapped Act Amendments of 1983, a
            State educational agency was prohibited by law from
            providing for the equitable participation in special
            programs of children with disabilities enrolled in
            private elementary schools and secondary schools as
            required by subsection (a)(10)(A), or if the Secretary
            determines that a State educational agency, local
            educational agency, or other entity has substantially
            failed or is unwilling to provide for such equitable
            participation, then the Secretary shall,
            notwithstanding such provision of law, arrange for the
            provision of services to such children through
            arrangements which shall be subject to the requirements
            of such subsection.
              (2) Payments.--
                      (A) Determination of amounts.--If the
                    Secretary arranges for services pursuant to
                    this subsection, the Secretary, after
                    consultation with the appropriate public and
                    private school officials, shall pay to the
                    provider of such services for a fiscal year an
                    amount per child that does not exceed the
                    amount determined by dividing--
                              (i) the total amount received by the
                            State under this part for such fiscal
                            year; by
                              (ii) the number of children with
                            disabilities served in the prior year,
                            as reported to the Secretary by the
                            State under section 618.
                      (B) Withholding of certain amounts.--Pending
                    final resolution of any investigation or
                    complaint that may result in a determination
                    under this subsection, the Secretary may
                    withhold from the allocation of the affected
                    State educational agency the amount the
                    Secretary estimates will be necessary to pay
                    the cost of services described in subparagraph
                    (A).
                      (C) Period of payments.--The period under
                    which payments are made under subparagraph (A)
                    shall continue until the Secretary determines
                    that there will no longer be any failure or
                    inability on the part of the State educational
                    agency to meet the requirements of subsection
                    (a)(10)(A).
              (3) Notice and hearing.--
                      (A) In general.--The Secretary shall not take
                    any final action under this subsection until
                    the State educational agency affected by such
                    action has had an opportunity, for at least 45
                    days after receiving written notice thereof, to
                    submit written objections and to appear before
                    the Secretary or the Secretary's designee to
                    show cause why such action should not be taken.
                      (B) Review of action.--If a State educational
                    agency is dissatisfied with the Secretary's
                    final action after a proceeding under
                    subparagraph (A), such agency may, not later
                    than 60 days after notice of such action, file
                    with the United States court of appeals for the
                    circuit in which such State is located a
                    petition for review of that action. A copy of
                    the petition shall be forthwith transmitted by
                    the clerk of the court to the Secretary. The
                    Secretary thereupon shall file in the court the
                    record of the proceedings on which the
                    Secretary based the Secretary's action, as
                    provided in section 2112 of title 28, United
                    States Code.
                      (C) Review of findings of fact.--The findings
                    of fact by the Secretary, if supported by
                    substantial evidence, shall be conclusive, but
                    the court, for good cause shown, may remand the
                    case to the Secretary to take further evidence,
                    and the Secretary may thereupon make new or
                    modified findings of fact and may modify the
                    Secretary's previous action, and shall file in
                    the court the record of the further
                    proceedings. Such new or modified findings of
                    fact shall likewise be conclusive if supported
                    by substantial evidence.
                      (D) Jurisdiction of court of appeals; review
                    by united states supreme court.--Upon the
                    filing of a petition under subparagraph (B),
                    the United States court of appeals shall have
                    jurisdiction to affirm the action of the
                    Secretary or to set it aside, in whole or in
                    part. The judgment of the court shall be
                    subject to review by the Supreme Court of the
                    United States upon certiorari or certification
                    as provided in section 1254 of title 28, United
                    States Code.

    SEC. 613. LOCAL EDUCATIONAL AGENCY ELIGIBILITY.

      (a) In General.--A local educational agency is eligible for
    assistance under this part for a fiscal year if such agency
    submits a plan that provides assurances to the State
    educational agency that the local educational agency meets each
    of the following conditions:
              (1) Consistency with state policies.--The local
            educational agency, in providing for the education of
            children with disabilities within its jurisdiction, has
            in effect policies, procedures, and programs that are
            consistent with the State policies and procedures
            established under section 612.
              (2) Use of amounts.--
                      (A) In general.--Amounts provided to the
                    local educational agency under this part shall
                    be expended in accordance with the applicable
                    provisions of this part and--
                              (i) shall be used only to pay the
                            excess costs of providing special
                            education and related services to
                            children with disabilities;
                              (ii) shall be used to supplement
                            State, local, and other Federal funds
                            and not to supplant such funds; and
                              (iii) shall not be used, except as
                            provided in subparagraphs (B) and (C),
                            to reduce the level of expenditures for
                            the education of children with
                            disabilities made by the local
                            educational agency from local funds
                            below the level of those expenditures
                            for the preceding fiscal year.
                      (B) Exception.--Notwithstanding the
                    restriction in subparagraph (A)(iii), a local
                    educational agency may reduce the level of
                    expenditures where such reduction is
                    attributable to--
                              (i) the voluntary departure, by
                            retirement or otherwise, or departure
                            for just cause, of special education
                            personnel;
                              (ii) a decrease in the enrollment of
                            children with disabilities;
                              (iii) the termination of the
                            obligation of the agency, consistent
                            with this part, to provide a program of
                            special education to a particular child
                            with a disability that is an
                            exceptionally costly program, as
                            determined by the State educational
                            agency, because the child--
                                      (I) has left the jurisdiction
                                    of the agency;
                                      (II) has reached the age at
                                    which the obligation of the
                                    agency to provide a free
                                    appropriate public education to
                                    the child has terminated; or
                                      (III) no longer needs such
                                    program of special education;
                                    or
                              (iv) the termination of costly
                            expenditures for long-term purchases,
                            such as the acquisition of equipment or
                            the construction of school facilities.
                      (C) Treatment of federal funds in certain
                    fiscal years.--
                              (i) 8 percent rule.--Notwithstanding
                            clauses (ii) and (iii) of subparagraph
                            (A), a local educational agency may
                            treat as local funds, for the purposes
                            of such clauses, not more than 8
                            percent of the amount of funds the
                            local educational agency receives under
                            this part.
                              (ii) 40 percent rule.--
                            Notwithstanding clauses (ii) and (iii)
                            of subparagraph (A), for any fiscal
                            year for which States are allocated the
                            maximum amount of grants pursuant to
                            section 611(a)(2), a local educational
                            agency may treat as local funds, for
                            the purposes of such clauses, not more
                            than 40 percent of the amount of funds
                            the local educational agency receives
                            under this part, subject to clause
                            (iv).
                              (iii) Early intervening services.--
                                      (I) 8 percent rule.--If a
                                    local educational agency
                                    exercises authority pursuant to
                                    clause (i), the 8 percent funds
                                    shall be counted toward the
                                    percentage and amount of funds
                                    that may be used to provide
                                    early intervening educational
                                    services pursuant to subsection
                                    (f).
                                      (II) 40 percent rule.--If a
                                    local educational agency
                                    exercises authority pursuant to
                                    clause (ii), the local
                                    educational agency shall use an
                                    amount of the 40 percent funds
                                    from clause (ii) that
                                    represents 15 percent of the
                                    total amount of funds the local
                                    educational agency receives
                                    under this part, to provide
                                    early intervening educational
                                    services pursuant to subsection
                                    (f).
                              (iv) Special rule.--Funds treated as
                            local funds pursuant to clause (i) or
                            (ii) may be considered non-Federal or
                            local funds for the purposes of--
                                      (I) clauses (ii) and (iii) of
                                    subparagraph (A); and
                                      (II) the provision of the
                                    local share of costs for title
                                    XIX of the Social Security Act.
                              (v) Report.--For each fiscal year in
                            which a local educational agency
                            exercises its authority pursuant to
                            this subparagraph and treats Federal
                            funds as local funds, the local
                            educational agency shall report to the
                            State educational agency the amount of
                            funds so treated and the activities
                            that were funded with such funds.
                      (D) Schoolwide programs under title i of the
                    esea.--Notwithstanding subparagraph (A) or any
                    other provision of this part, a local
                    educational agency may use funds received under
                    this part for any fiscal year to carry out a
                    schoolwide program under section 1114 of the
                    Elementary and Secondary Education Act of 1965,
                    except that the amount so used in any such
                    program shall not exceed--
                              (i) the number of children with
                            disabilities participating in the
                            schoolwide program; multiplied by
                              (ii)(I) the amount received by the
                            local educational agency under this
                            part for that fiscal year; divided by
                              (II) the number of children with
                            disabilities in the jurisdiction of
                            that agency.
              (3) Personnel development.--The local educational
            agency shall ensure that all personnel necessary to
            carry out this part are appropriately and adequately
            prepared, consistent with the requirements of section
            612(a)(14) of this Act and section 2122 of the
            Elementary and Secondary Education Act of 1965.
              (4) Permissive use of funds.--
                      (A) Uses.--Notwithstanding paragraph (2)(A)
                    or section 612(a)(17)(B) (relating to
                    commingled funds), funds provided to the local
                    educational agency under this part may be used
                    for the following activities:
                              (i) Services and aids that also
                            benefit nondisabled children.--For the
                            costs of special education and related
                            services, and supplementary aids and
                            services, provided in a regular class
                            or other education-related setting to a
                            child with a disability in accordance
                            with the individualized education
                            program of the child, even if 1 or more
                            nondisabled children benefit from such
                            services.
                              (ii) Early intervening services.--To
                            develop and implement coordinated,
                            early intervening educational services
                            in accordance with subsection (f).
                      (B) Administrative case management.--A local
                    educational agency may use funds received under
                    this part to purchase appropriate technology
                    for recordkeeping, data collection, and related
                    case management activities of teachers and
                    related services personnel providing services
                    described in the individualized education
                    program of children with disabilities, that is
                    needed for the implementation of such case
                    management activities.
              (5) Treatment of charter schools and their
            students.--In carrying out this part with respect to
            charter schools that are public schools of the local
            educational agency, the local educational agency--
                      (A) serves children with disabilities
                    attending those charter schools in the same
                    manner as the local educational agency serves
                    children with disabilities in its other
                    schools, including providing supplementary and
                    related services on site at the charter school
                    to the same extent to which the local
                    educational agency has a policy or practice of
                    providing such services on the site to its
                    other public schools; and
                      (B) provides funds under this part to those
                    charter schools on the same basis, including
                    proportional distribution based on relative
                    enrollment of children with disabilities, and
                    at the same time, as the local educational
                    agency distributes State, local, or a
                    combination of State and local, funds to those
                    charter schools under the State's charter
                    school law.
              (6) Purchase of instructional materials.--Not later
            than 2 years after the date of enactment of the
            Individuals with Disabilities Education Improvement Act
            of 2003, a local educational agency, when purchasing
            print instructional materials, acquires these
            instructional materials in the same manner as a State
            educational agency described in section 612(a)(22).
              (7) Information for state educational agency.--The
            local educational agency shall provide the State
            educational agency with information necessary to enable
            the State educational agency to carry out its duties
            under this part, including, with respect to paragraphs
            (15) and (16) of section 612(a), information relating
            to the performance of children with disabilities
            participating in programs carried out under this part.
              (8) Public information.--The local educational agency
            shall make available to parents of children with
            disabilities and to the general public all documents
            relating to the eligibility of such agency under this
            part.
              (9) Records regarding migratory children with
            disabilities.--The local educational agency shall
            cooperate in the Secretary's efforts under section 1308
            of the Elementary and Secondary Education Act of 1965
            (20 U.S.C. 6398) to ensure the linkage of records
            pertaining to migratory children with a disability for
            the purpose of electronically exchanging, among the
            States, health and educational information regarding
            such children.
      (b) Exception for Prior Local Plans.--
              (1) In general.--If a local educational agency or
            State agency has on file with the State educational
            agency policies and procedures that demonstrate that
            such local educational agency, or such State agency, as
            the case may be, meets any requirement of subsection
            (a), including any policies and procedures filed under
            this part as in effect before the effective date of the
            Individuals with Disabilities Education Improvement Act
            of 2003, the State educational agency shall consider
            such local educational agency or State agency, as the
            case may be, to have met such requirement for purposes
            of receiving assistance under this part.
              (2) Modification made by local educational agency.--
            Subject to paragraph (3), an application submitted by a
            local educational agency in accordance with this
            section shall remain in effect until the local
            educational agency submits to the State educational
            agency such modifications as the local educational
            agency determines necessary.
              (3) Modifications required by state educational
            agency.--If, after the effective date of the
            Individuals with Disabilities Education Improvement Act
            of 2003, the provisions of this Act are amended (or the
            regulations developed to carry out this Act are
            amended), there is a new interpretation of this Act by
            Federal or State courts, or there is an official
            finding of noncompliance with Federal or State law or
            regulations, then the State educational agency may
            require a local educational agency to modify its
            application only to the extent necessary to ensure the
            local educational agency's compliance with this part or
            State law.
      (c) Notification of Local Educational Agency or State Agency
    in Case of Ineligibility.--If the State educational agency
    determines that a local educational agency or State agency is
    not eligible under this section, then the State educational
    agency shall notify the local educational agency or State
    agency, as the case may be, of that determination and shall
    provide such local educational agency or State agency with
    reasonable notice and an opportunity for a hearing.
      (d) Local Educational Agency Compliance.--
              (1) In general.--If the State educational agency,
            after reasonable notice and an opportunity for a
            hearing, finds that a local educational agency or State
            agency that has been determined to be eligible under
            this section is failing to comply with any requirement
            described in subsection (a), the State educational
            agency shall reduce or shall not provide any further
            payments to the local educational agency or State
            agency until the State educational agency is satisfied
            that the local educational agency or State agency, as
            the case may be, is complying with that requirement.
              (2) Additional requirement.--Any State agency or
            local educational agency in receipt of a notice
            described in paragraph (1) shall, by means of public
            notice, take such measures as may be necessary to bring
            the pendency of an action pursuant to this subsection
            to the attention of the public within the jurisdiction
            of such agency.
              (3) Consideration.--In carrying out its
            responsibilities under paragraph (1), the State
            educational agency shall consider any decision made in
            a hearing held under section 615 that is adverse to the
            local educational agency or State agency involved in
            that decision.
      (e) Joint Establishment of Eligibility.--
              (1) Joint establishment.--
                      (A) In general.--A State educational agency
                    may require a local educational agency to
                    establish its eligibility jointly with another
                    local educational agency if the State
                    educational agency determines that the local
                    educational agency will be ineligible under
                    this section because the local educational
                    agency will not be able to establish and
                    maintain programs of sufficient size and scope
                    to effectively meet the needs of children with
                    disabilities.
                      (B) Charter school exception.--A State
                    educational agency may not require a charter
                    school that is a local educational agency to
                    jointly establish its eligibility under
                    subparagraph (A) unless the charter school is
                    explicitly permitted to do so under the State's
                    charter school law.
              (2) Amount of payments.--If a State educational
            agency requires the joint establishment of eligibility
            under paragraph (1), the total amount of funds made
            available to the affected local educational agencies
            shall be equal to the sum of the payments that each
            such local educational agency would havereceived under
    section 611(f) if such agencies were eligible for such payments.
              (3) Requirements.--Local educational agencies that
            establish joint eligibility under this subsection
            shall--
                      (A) adopt policies and procedures that are
                    consistent with the State's policies and
                    procedures under section 612(a); and
                      (B) be jointly responsible for implementing
                    programs that receive assistance under this
                    part.
              (4) Requirements for educational service agencies.--
                      (A) In general.--If an educational service
                    agency is required by State law to carry out
                    programs under this part, the joint
                    responsibilities given to local educational
                    agencies under this subsection shall--
                              (i) not apply to the administration
                            and disbursement of any payments
                            received by that educational service
                            agency; and
                              (ii) be carried out only by that
                            educational service agency.
                      (B) Additional requirement.--Notwithstanding
                    any other provision of this subsection, an
                    educational service agency shall provide for
                    the education of children with disabilities in
                    the least restrictive environment, as required
                    by section 612(a)(5).
      (f) Early Intervening Services.--
              (1) In general.--A local educational agency may not
            use more than 15 percent of the amount such agency
            receives under this part for any fiscal year, less any
            amount treated as local funds pursuant to subsection
            (a)(2)(C), if any, in combination with other amounts
            (which may include amounts other than education funds),
            to develop and implement coordinated, early intervening
            educational services, which may include interagency
            financing structures, for students in kindergarten
            through grade 12 (with a particular emphasis on
            students in kindergarten through grade 3) who do not
            meet the definition of a child with a disability under
            section 602(3) but who need additional academic and
            behavioral support to succeed in a general education
            environment.
              (2) Activities.--In implementing coordinated, early
            intervening educational services under this subsection,
            a local educational agency may carry out activities
            that include--
                      (A) professional development (which may be
                    provided by entities other than local
                    educational agencies) for teachers and other
                    school staff to enable such personnel to
                    deliver scientifically based academic and
                    behavioral interventions, including
                    scientifically based literacy instruction, and,
                    where appropriate, instruction on the use of
                    adaptive and instructional software;
                      (B) providing educational and behavioral
                    evaluations, services, and supports, including
                    scientifically based literacy instruction; and
                      (C) developing and implementing interagency
                    financing structures for the provision of such
                    services and supports.
              (3) Construction.--Nothing in this subsection shall
            be construed to either limit or create a right to a
            free appropriate public education under this part.
              (4) Reporting.--Each local educational agency that
            develops and maintains coordinated, early intervening
            educational services with funds made available for this
            subsection, shall annually report to the State
            educational agency on--
                      (A) the number of children served under this
                    subsection; and
                      (B) the number of children served under this
                    subsection who are subsequently referred to
                    special education.
              (5) Coordination with certain projects under
            elementary and secondary education act of 1965.--Funds
            made available to carry out this subsection may be used
            to carry out coordinated, early intervening educational
            services aligned with activities funded by, and carried
            out under, the Elementary and Secondary Education Act
            of 1965 if such funds are used to supplement, and not
            supplant, funds made available under the Elementary and
            Secondary Education Act of 1965 for the activities and
            services assisted under this subsection.
              (6) Report to congress.--Not later than 1 year after
            the date of enactment of the Individuals with
            Disabilities Education Improvement Act of 2003, the
            Comptroller General shall conduct a study on the types
            of services provided to children served under this
            subsection, and shall submit a report to Congress
            regarding the study.
      (g) Direct Services by the State Educational Agency.--
              (1) In general.--A State educational agency shall use
            the payments that would otherwise have been available
            to a local educational agency or to a State agency to
            provide special education and related services directly
            to children with disabilities residing in the area
            served by that local educational agency, or for whom
            that State agency is responsible, if the State
            educational agency determines that the local
            educational agency or State agency, as the case may
            be--
                      (A) has not provided the information needed
                    to establish the eligibility of such agency
                    under this section;
                      (B) is unable to establish and maintain
                    programs of free appropriate public education
                    that meet the requirements of subsection (a);
                      (C) is unable or unwilling to be consolidated
                    with 1 or more local educational agencies in
                    order to establish and maintain such programs;
                    or
                      (D) has 1 or more children with disabilities
                    who can best be served by a regional or State
                    program or service delivery system designed to
                    meet the needs of such children.
              (2) Manner and location of education and services.--
            The State educational agency may provide special
            education and related services under paragraph (1) in
            such manner and at such locations (including regional
            or State centers) as the State agency considers
            appropriate. Such education and services shall be
            provided in accordance with this part.
      (h) State Agency Eligibility.--Any State agency that desires
    to receive a subgrant for any fiscal year under section 611(f)
    shall demonstrate to the satisfaction of the State educational
    agency that--
              (1) all children with disabilities who are
            participating in programs and projects funded under
            this part receive a free appropriate public education,
            and that those children and their parents are provided
            all the rights and procedural safeguards described in
            this part; and
              (2) the agency meets such other conditions of this
            section as the Secretary determines to be appropriate.
      (i) Disciplinary Information.--The State may require that a
    local educational agency include in the records of a child with
    a disability a statement of any current or previous
    disciplinary action that has been taken against the child and
    transmit such statement to the same extent that such
    disciplinary information is included in, and transmitted with,
    the student records of nondisabled children. The statement may
    include a description of any behavior engaged in by the child
    that required disciplinary action, a description of the
    disciplinary action taken, and any other information that is
    relevant to the safety of the child and other individuals
    involved with the child. If the State adopts such a policy, and
    the child transfers from 1 school to another, the transmission
    of any of the child's records shall include both the child's
    current individualized education program and any such statement
    of current or previous disciplinary action that has been taken
    against the child.
      (j) State Agency Flexibility.--
              (1) Treatment of federal funds in certain fiscal
            years.--If a State educational agency pays or
            reimburses local educational agencies within the State
            for not less than 80 percent of the non-Federal share
            of the costs of special education and related services,
            or the State is the sole provider of free appropriate
            public education or direct services pursuant to section
            612(b), then the State educational agency,
            notwithstanding sections 612(a) (17) and (18) and
            612(b), may treat funds allocated pursuant to section
            611 as general funds available to support the
            educational purposes described in paragraph (2) (A) and
            (B).
              (2) Conditions.--A State educational agency may use
            funds in accordance with paragraph (1) subject to the
            following conditions:
                      (A) 8 percent rule.--A State educational
                    agency may treat not more than 8 percent of the
                    funds the State educational agency receives
                    under this part as general funds to support any
                    educational purpose described in the Elementary
                    and Secondary Education Act of 1965, needs-
                    based student or teacher higher education
                    programs, or the non-Federal share of costs of
                    title XIX of the Social Security Act.
                      (B) 40 percent rule.--For any fiscal year for
                    which States are allocated the maximum amount
                    of grants pursuant to section 611(a)(2), a
                    State educational agency may treat not more
                    than 40 percent of the amount of funds the
                    State educational agency receives under this
                    part as general funds to support any
                    educational purpose described in the Elementary
                    and Secondary Education Act of 1965, needs-
                    based student or teacher higher education
                    programs, or the non-Federal share of costs of
                    title XIX of the Social Security Act, subject
                    to subparagraph (C).
                      (C) Requirement.--A State educational agency
                    may exercise its authority pursuant to
                    subparagraph (B) only if the State educational
                    agency uses an amount of the 40 percent funds
                    from subparagraph (B) that represents 15
                    percent of the total amount of funds the State
                    educational agency receives under this part, to
                    provide, or to pay or reimburse local
                    educational agencies for providing, early
                    intervening prereferral services pursuant to
                    subsection (f).
              (2) Prohibition.--Notwithstanding subsection (a), if
            the Secretary determines that a State educational
            agency is unable to establish, maintain, or oversee
            programs of free appropriate public education that meet
            the requirements of this part, then the Secretary shall
            prohibit the State educational agency from treating
            funds allocated under this part as general funds
            pursuant to paragraph (1).
              (3) Report.--For each fiscal year for which a State
            educational agency exercises its authority pursuant to
            paragraph (1) and treats Federal funds as general
            funds, the State educational agency shall report to the
            Secretary the amount of funds so treated and the
            activities that were funded with such funds.

               *       *       *       *       *       *       *

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

      (a) Evaluations and Reevaluations.--
              (1) Initial evaluations.--
                      (A) In general.--A State educational agency,
                    other State agency, or local educational agency
                    shall conduct a full and individual initial
                    evaluation in accordance with this paragraph
                    and subsection (b), before the initial
                    provision of special education and related
                    services to a child with a disability under
                    this part.
                      (B) Request for initial evaluation.--
                    Consistent with subparagraph (D), either a
                    parent of a child, or a State educational
                    agency, other State agency, or local
                    educational agency may initiate a request for
                    an initial evaluation to determine if the child
                    is a child with a disability.
                      (C) Procedures.--Such initial evaluation
                    shall consist of procedures--
                              (i) to determine whether a child is a
                            child with a disability (as defined in
                            section 602(3)) within 60 days of
                            receiving parental consent for the
                            evaluation, or, if the State has
                            established a timeframe within which
                            the evaluation must be conducted,
                            within such timeframe; and
                              (ii) to determine the educational
                            needs of such child.
                      (D) Parental consent.--
                              (i) In general.--The agency proposing
                            to conduct an initial evaluation to
                            determine if the child qualifies as a
                            child with a disability as defined in
                            section 602(3) (A) or (B) shall obtain
                            an informed consent from the parent of
                            such child before the evaluation is
                            conducted. Parental consent for
                            evaluation shall not be construed as
                            consent for placement for receipt of
                            special education and related services.
                              (ii) Refusal.--If the parents of such
                            child refuse consent for the
                            evaluation, the agency may continue to
                            pursue an evaluation by utilizing the
                            mediation and due process procedures
                            under section 615, except to the extent
                            inconsistent with State law relating to
                            parental consent.
                              (iii) Refusal or failure to
                            consent.--If the parent of a child does
                            not provide informed consent to the
                            receipt of special education and
                            related services, or the parent fails
                            to respond to a request to provide the
                            consent, the local educational agency
                            shall not be considered to be in
                            violation of the requirement to make
                            available a free appropriate public
                            education to the child for the failure
                            to provide the special education and
                            related services for which the local
                            educational agency requests such
                            informed consent.
              (2) Reevaluations.--
                      (A) In general.--A local educational agency
                    shall ensure that a reevaluation of each child
                    with a disability is conducted in accordance
                    with subsections (b) and (c)--
                              (i) if the local educational agency
                            determines that the educational or
                            related services needs, including
                            improved academic achievement and
                            functional performance, of the child
                            warrant a reevaluation; or
                              (ii) if the child's parents or
                            teacher requests a reevaluation.
                      (B) Limitation.--A reevaluation conducted
                    under subparagraph (A) shall occur--
                              (i) not more than once a year, unless
                            the parent and the local educational
                            agency agree otherwise; and
                              (ii) at least once every 3 years,
                            unless the parent and the local
                            educational agency agree that a
                            reevaluation is unnecessary.
      (b) Evaluation Procedures.--
              (1) Notice.--The local educational agency shall
            provide notice to the parents of a child with a
            disability, in accordance with subsections (b)(3),
            (b)(4), and (c) of section 615, that describes any
            evaluation procedures such agency proposes to conduct.
              (2) Conduct of evaluation.--In conducting the
            evaluation, the local educational agency shall--
                      (A) use a variety of assessment tools and
                    strategies to gather relevant functional,
                    developmental, and academic information,
                    including information provided by the parent,
                    that may assist in determining--
                              (i) whether the child is a child with
                            a disability; and
                              (ii) the content of the child's
                            individualized education program,
                            including information related to
                            enabling the child to be involved in
                            and progress in the general curriculum,
                            or for preschool children, to
                            participate in appropriate activities;
                      (B) not use any single procedure, measure, or
                    assessment as the sole criterion for
                    determining whether a child is a child with a
                    disability or determining an appropriate
                    educational program for the child; and
                      (C) use technically sound instruments that
                    may assess the relative contribution of
                    cognitive and behavioral factors, in addition
                    to physical or developmental factors.
              (3) Additional requirements.--Each local educational
            agency shall ensure that--
                      (A) tests and other evaluation materials used
                    to assess a child under this section--
                              (i) are selected and administered so
                            as not to be discriminatory on a racial
                            or cultural basis;
                              (ii) are provided and administered,
                            to the extent practicable, in the
                            language and form most likely to yield
                            accurate information on what the child
                            knows and can do academically,
                            developmentally, and functionally;
                              (iii) are used for purposes for which
                            the assessments or measures are valid
                            and reliable;
                              (iv) are administered by trained and
                            knowledgeable personnel; and
                              (v) are administered in accordance
                            with any instructions provided by the
                            producer of such tests;
                      (B) the child is assessed in all areas of
                    suspected disability; and
                      (C) assessment tools and strategies that
                    provide relevant information that directly
                    assists persons in determining the educational
                    needs of the child are provided.
              (4) Determination of eligibility.--Upon completion of
            administration of tests and other evaluation
            materials--
                      (A) the determination of whether the child is
                    a child with a disability as defined in section
                    602(3) shall be made by a team of qualified
                    professionals and the parent of the child in
                    accordance with paragraph (5); and
                      (B) a copy of the evaluation report and the
                    documentation of determination of eligibility
                    shall be given to the parent.
              (5) Special rule for eligibility determination.--In
            making a determination of eligibility under paragraph
            (4)(A), a child shall not be determined to be a child
            with a disability if the determinant factor for such
            determination is--
                      (A) lack of scientifically based instruction
                    in reading;
                      (B) lack of instruction in mathematics; or
                      (C) limited English proficiency.
              (6) Specific learning disabilities.--
                      (A) In general.--Notwithstanding section
                    607(b), when determining whether a child has a
                    specific learning disability as defined in
                    section 602(29), a local educational agency
                    shall not be required to take into
                    consideration whether a child has a severe
                    discrepancy between achievement and
                    intellectual ability in oral expression,
                    listening comprehension, written expression,
                    basic reading skill, reading comprehension,
                    mathematical calculation, or mathematical
                    reasoning.
                      (B) Additional authority.--In determining
                    whether a child has a specific learning
                    disability, a local educational agency may use
                    a process that determines if the child responds
                    to scientific, research-based intervention as a
                    part of the evaluation procedures described in
                    paragraphs (2) and (3).
      (c) Additional Requirements for Evaluation and
    Reevaluations.--
              (1) Review of existing evaluation data.--As part of
            an initial evaluation (if appropriate) and as part of
            any reevaluation under this section, the IEP Team
            described in subsection (d)(1)(B) and other qualified
            professionals, as appropriate, shall--
                      (A) review existing evaluation data on the
                    child, including evaluations and information
                    provided by the parents of the child, current
                    classroom-based assessments, and observations,
                    and teacher and related services providers
                    observations; and
                      (B) on the basis of that review, and input
                    from the child's parents, identify what
                    additional data, if any, are needed to
                    determine--
                              (i) whether the child has a
                            particular category of disability, as
                            described in section 602(3), or, in
                            case of a reevaluation of a child,
                            whether the child continues to have
                            such a disability;
                              (ii) the present levels of
                            performance and educational needs of
                            the child;
                              (iii) whether the child needs special
                            education and related services, or in
                            the case of a reevaluation of a child,
                            whether the child continues to need
                            special education and related services;
                            and
                              (iv) whether any additions or
                            modifications to the special education
                            and related services are needed to
                            enable the child to meet the measurable
                            annual goals set out in the
                            individualized education program of the
                            child and to participate, as
                            appropriate, in the general curriculum.
              (2) Source of data.--The local educational agency
            shall administer such tests and other evaluation
            materials and procedures as may be needed to produce
            the data identified by the IEP Team under paragraph
            (1)(B).
              (3) Parental consent.--Each local educational agency
            shall obtain informed parental consent, in accordance
            with subsection (a)(1)(D), prior to conducting any
            reevaluation of a child with a disability, except that
            such informed parental consent need not be obtained if
            the local educational agency can demonstrate that the
            local educational agency had taken reasonable measures
            to obtain such consent and the child's parent has
            failed to respond.
              (4) Requirements if additional data are not needed.--
            If the IEP Team and other qualified professionals, as
            appropriate, determine that no additional data are
            needed to determine whether the child is or continues
            to be a child with a disability, the local educational
            agency--
                      (A) shall notify the child's parents of--
                              (i) that determination and the
                            reasons for the determination; and
                              (ii) the right of such parents to
                            request an assessment to determine
                            whether the child is or continues to be
                            a child with a disability; and
                      (B) shall not be required to conduct such an
                    assessment unless requested by the child's
                    parents.
              (5) Evaluations before change in eligibility.--
                      (A) In general.--Except as provided in
                    subparagraph (B), a local educational agency
                    shall evaluate a child with a disability in
                    accordance with this section before determining
                    that the child is no longer a child with a
                    disability.
                      (B) Exception.--
                              (i) In general.--The evaluation
                            described in subparagraph (A) shall not
                            be required before the termination of a
                            child's eligibility under this part due
                            to graduation from secondary school
                            with a regular diploma, or to exceeding
                            the age eligibility for a free
                            appropriate public education under
                            State law.
                              (ii) Summary of performance.--For a
                            child whose eligibility under this part
                            terminates under circumstances
                            described in clause (i), a local
                            educational agency shall provide the
                            child with a summary of the child's
                            academic achievement and functional
                            performance, which shall include
                            recommendations on how to assist the
                            child in meeting the child's
                            postsecondary goals.
      (d) Individualized Education Programs.--
              (1) Definitions.--As used in this title:
                      (A) Individualized education program.--
                              (i) In general.--The term
                            ``individualized education program'' or
                            ``IEP'' means a written statement for
                            each child with a disability that is
                            developed, reviewed, and revised in
                            accordance with this section and that
                            includes--
                                      (I) a statement of the
                                    child's present levels of
                                    academic achievement and
                                    functional performance,
                                    including--
                                              (aa) how the child's
                                            disability affects the
                                            child's involvement and
                                            progress in the general
                                            curriculum; or
                                              (bb) for preschool
                                            children, as
                                            appropriate, how the
                                            disability affects the
                                            child's participation
                                            in appropriate
                                            activities;
                                      (II) a statement of
                                    measurable annual goals,
                                    including academic and
                                    functional goals, designed to--
                                              (aa) meet the child's
                                            needs that result from
                                            the child's disability
                                            to enable the child to
                                            be involved in and make
                                            progress in the general
                                            curriculum; and
                                              (bb) meet each of the
                                            child's other
                                            educational needs that
                                            result from the child's
                                            disability;
                                      (III) a description of how
                                    the child's progress toward
                                    meeting the annual goals
                                    described in subclause (II)
                                    will be measured and when
                                    periodic reports on the
                                    progress the child is making
                                    toward meeting the annual goals
                                    (such as through the use of
                                    quarterly or other periodic
                                    reports, concurrent with the
                                    issuance of report cards) will
                                    be provided;
                                      (IV) a statement of the
                                    special education and related
                                    services, and supplementary
                                    aids and services, to be
                                    provided to the child, or on
                                    behalf of the child, and a
                                    statement of the program
                                    modifications or supports for
                                    school personnel that will be
                                    provided for the child--
                                              (aa) to advance
                                            appropriately toward
                                            attaining the annual
                                            goals;
                                              (bb) to be involved
                                            in and make progress in
                                            the general curriculum
                                            in accordance with
                                            subclause (I) and to
                                            participate in
                                            extracurricular and
                                            other nonacademic
                                            activities; and
                                              (cc) to be educated
                                            and participate with
                                            other children with
                                            disabilities and
                                            nondisabled children in
                                            the activities
                                            described in this
                                            paragraph;
                                      (V) an explanation of the
                                    extent, if any, to which the
                                    child will not participate with
                                    nondisabled children in the
                                    regular class and in the
                                    activities described in
                                    subclause (IV)(cc);
                                      (VI)(aa) a statement of any
                                    individual appropriate
                                    accommodations that are
                                    necessary to measure the
                                    academic achievement and
                                    functional performance of the
                                    child on State and districtwide
                                    assessments consistent with
                                    section 612(a)(16)(A); and
                                      (bb) if the IEP Team
                                    determines that the child shall
                                    take an alternate assessment on
                                    a particular State or
                                    districtwide assessment of
                                    student achievement, a
                                    statement of why--
                                              (AA) the child cannot
                                            participate in the
                                            regular assessment; and
                                              (BB) the particular
                                            alternate assessment
                                            selected is appropriate
                                            for the child;
                                      (VII) the projected date for
                                    the beginning of the services
                                    and modifications described in
                                    subclause (IV), and the
                                    anticipated frequency,
                                    location, and duration of those
                                    services and modifications; and
                                      (VIII) beginning not later
                                    than the first IEP to be in
                                    effect when the child is 14,
                                    and updated annually
                                    thereafter--
                                              (aa) appropriate
                                            measurable
                                            postsecondary goals
                                            based upon age
                                            appropriate transition
                                            assessments related to
                                            training, education,
                                            employment, and, where
                                            appropriate,
                                            independent living
                                            skills;
                                              (bb) the transition
                                            services (including
                                            courses of study)
                                            needed by the child to
                                            reach those goals,
                                            including services to
                                            be provided by other
                                            agencies when needed;
                                            and
                                              (cc) beginning at
                                            least 1 year before the
                                            child reaches the age
                                            of majority under State
                                            law, a statement that
                                            the child has been
                                            informed of the child's
                                            rights under this
                                            title, if any, that
                                            will transfer to the
                                            child on reaching the
                                            age of majority under
                                            section 615(m).
                              (ii) Rule of construction.--Nothing
                            in this section shall be construed to
                            require--
                                      (I) that additional
                                    information be included in a
                                    child's IEP beyond what is
                                    explicitly required in this
                                    section; and
                                      (II) the IEP Team to include
                                    information under 1 component
                                    of a child's IEP that is
                                    already contained under another
                                    component of such IEP.
                      (B) Individualized education program team.--
                    The term ``individualized education program
                    team'' or ``IEP Team'' means a group of
                    individuals composed of--
                              (i) the parents of a child with a
                            disability;
                              (ii) at least 1 regular education
                            teacher of such child (if the child is,
                            or may be, participating in the regular
                            education environment);
                              (iii) at least 1 special education
                            teacher, or where appropriate, at least
                            1 special education provider of such
                            child;
                              (iv) a representative of the local
                            educational agency who--
                                      (I) is qualified to provide,
                                    or supervise the provision of,
                                    specially designed instruction
                                    to meet the unique needs of
                                    children with disabilities;
                                      (II) is knowledgeable about
                                    the general curriculum; and
                                      (III) is knowledgeable about
                                    the availability of resources
                                    of the local educational
                                    agency;
                              (v) an individual who can interpret
                            the instructional implications of
                            evaluation results, who may be a member
                            of the team described in clauses (ii)
                            through (vi);
                              (vi) at the discretion of the parent
                            or the agency, other individuals who
                            have knowledge or special expertise
                            regarding the child, including related
                            services personnel as appropriate; and
                              (vii) whenever appropriate, the child
                            with a disability.
                      (C) IEP team attendance.--
                              (i) Attendance not necessary.--A
                            member of the IEP Team shall not be
                            required to attend an IEP meeting, in
                            whole or in part, if that member, the
                            parent of a child with a disability,
                            and the local educational agency agree
                            that the attendance of such member is
                            not necessary because no modification
                            to the member's area of the curriculum
                            or related services is being modified
                            or discussed in the meeting.
                              (ii) Excusal.--A member of the IEP
                            Team may be excused from attending an
                            IEP meeting, in whole or in part, when
                            the meeting involves a modification to
                            or discussion of the member's area of
                            the curriculum or related services,
                            if--
                                      (I) that member, the parent,
                                    and the local educational
                                    agency consent to the excusal;
                                    and
                                      (II) the member submits input
                                    into the development of the IEP
                                    prior to the meeting.
                              (iii) Written agreement and consent
                            required.--A parent's agreement under
                            clause (i) and consent under clause
                            (ii) shall be in writing.
              (2) Requirement that program be in effect.--
                      (A) In general.--At the beginning of each
                    school year, each local educational agency,
                    State educational agency, or other State
                    agency, as the case may be, shall have in
                    effect, for each child with a disability in its
                    jurisdiction, an individualized education
                    program, as defined in paragraph (1)(A).
                      (B) Program for child aged 3 through 5.--In
                    the case of a child with a disability aged 3
                    through 5 (or, at the discretion of the State
                    educational agency, a 2-year-old child with a
                    disability who will turn age 3 during the
                    school year), an individualized family service
                    plan that contains the material described in
                    section 636, and that is developed in
                    accordance with this section, may serve as the
                    IEP of the child if using that plan as the IEP
                    is--
                              (i) consistent with State policy; and
                              (ii) agreed to by the agency and the
                            child's parents.
              (3) Development of iep.--
                      (A) In general.--In developing each child's
                    IEP, the IEP Team, subject to subparagraph (C),
                    shall consider--
                              (i) the strengths of the child;
                              (ii) the concerns of the parents for
                            enhancing the education of their child;
                              (iii) the results of the initial
                            evaluation or most recent evaluation of
                            the child; and
                              (iv) the academic, developmental, and
                            functional needs of the child.
                      (B) Consideration of special factors.--The
                    IEP Team shall--
                              (i) in the case of a child whose
                            behavior impedes the child's learning
                            or that of others, provide for positive
                            behavioral interventions and supports,
                            and other strategies to address that
                            behavior;
                              (ii) in the case of a child with
                            limited English proficiency, consider
                            the language needs of the child as such
                            needs relate to the child's IEP;
                              (iii) in the case of a child who is
                            blind or visually impaired--
                                      (I) provide for instruction
                                    in Braille and the use of
                                    Braille unless the IEP Team
                                    determines, after an evaluation
                                    of the child's reading and
                                    writing skills, needs, and
                                    appropriate reading and writing
                                    media (including an evaluation
                                    of the child's future needs for
                                    instruction in Braille or the
                                    use of Braille), that
                                    instruction in Braille or the
                                    use of Braille is not
                                    appropriate for the child; and
                                      (II) consider, when
                                    appropriate, instructional
                                    services related to functional
                                    performance skills, orientation
                                    and mobility, and skills in the
                                    use of assistive technology
                                    devices, including low vision
                                    devices;
                              (iv) consider the communication needs
                            of the child, and in the case of a
                            child who is deaf or hard of hearing,
                            consider the child's language and
                            communication needs, opportunities for
                            direct communications with peers and
                            professional personnel in the child's
                            language and communication mode,
                            academic level, and full range of
                            needs, including opportunities for
                            direct instruction in the child's
                            language and communication mode; and
                              (v) consider whether the child
                            requires assistive technology devices
                            and services.
                      (C) Requirement with respect to regular
                    education teacher.--A regular education teacher
                    of the child, as a member of the IEP Team
                    shall, to the extent appropriate, participate
                    in the development of the IEP of the child,
                    including the determination of appropriate
                    positive behavioral interventions and supports,
                    and other strategies, and the determination of
                    supplementary aids and services, program
                    modifications, and support for school personnel
                    consistent with paragraph (1)(A)(i)(IV).
                      (D) Agreement.--In making changes to a
                    child's IEP after the annual IEP meeting for a
                    school year, the parent of a child with a
                    disability and the local educational agency may
                    agree not to convene an IEP meeting for the
                    purposes of making such changes, and instead
                    may develop a written document to amend or
                    modify the child's current IEP.
                      (E) Consolidation of iep team meetings.--To
                    the extent possible, the local educational
                    agency shall encourage the consolidation of
                    reevaluations of a child with IEP Team meetings
                    for the child.
              (4) Review and revision of iep.--
                      (A) In general.--The local educational agency
                    shall ensure that, subject to subparagraph (B),
                    the IEP Team--
                              (i) reviews the child's IEP
                            periodically, but not less than
                            annually, to determine whether the
                            annual goals for the child are being
                            achieved; and
                              (ii) revise the IEP as appropriate to
                            address--
                                      (I) any lack of expected
                                    progress toward the annual
                                    goals and in the general
                                    curriculum, where appropriate;
                                      (II) the results of any
                                    reevaluation conducted under
                                    this section;
                                      (III) information about the
                                    child provided to, or by, the
                                    parents, as described in
                                    subsection (c)(1)(B);
                                      (IV) the child's anticipated
                                    needs; or
                                      (V) other matters.
                      (B) Requirement with respect to regular
                    education teacher.--A regular education teacher
                    of the child, as a member of the IEP Team,
                    shall, consistent with paragraph (1)(C),
                    participate in the review and revision of the
                    IEP of the child.
              (5) Three-year iep.--
                      (A) Development of 3-year iep.--The local
                    educational agency may offer a child with a
                    disability who has reached the age of 18, the
                    option of developing a comprehensive 3-year
                    IEP. With the consent of the parent, when
                    appropriate, the IEP Team shall develop an IEP,
                    as described in paragraphs (1) and (3), that is
                    designed to serve the child for the final 3-
                    year transition period, which includes a
                    statement of--
                              (i) measurable goals that will enable
                            the child to be involved in and make
                            progress in the general education
                            curriculum and that will meet the
                            child's transitional and postsecondary
                            needs that result from the child's
                            disability; and
                              (ii) measurable annual goals for
                            measuring progress toward meeting the
                            postsecondary goals described in clause
                            (i).
                      (B) Review and revision of 3-year iep.--
                              (i) Requirement.--Each year the local
                            educational agency shall ensure that
                            the IEP Team--
                                      (I) provides an annual review
                                    of the child's IEP to determine
                                    the child's current levels of
                                    progress and determine whether
                                    the annual goals for the child
                                    are being achieved; and
                                      (II) revises the IEP, as
                                    appropriate, to enable the
                                    child to continue to meet the
                                    measurable transition goals set
                                    out in the IEP.
                              (ii) Comprehensive review.--If the
                            review under clause (i) determines that
                            the child is not making sufficient
                            progress toward the goals described in
                            subparagraph (A), the local educational
                            agency shall ensure that the IEP Team
                            provides a review, within 30 calendar
                            days, of the IEP under paragraph (4).
                              (iii) Preference.--At the request of
                            the child, or when appropriate, the
                            parent, the IEP Team shall conduct a
                            review of the child's 3-year IEP under
                            paragraph (4) rather than an annual
                            review under subparagraph (B)(i).
              (6) Failure to meet transition objectives.--If a
            participating agency, other than the local educational
            agency, fails to provide the transition services
            described in the IEP in accordance with paragraph
            (1)(A)(i)(VIII), the local educational agency shall
            reconvene the IEP Team to identify alternative
            strategies to meet the transition objectives for the
            child set out in that program.
              (7) Children with disabilities in adult prisons.--
                      (A) In general.--The following requirements
                    shall not apply to children with disabilities
                    who are convicted as adults under State law and
                    incarcerated in adult prisons:
                              (i) The requirements contained in
                            section 612(a)(16) and paragraph
                            (1)(A)(i)(V) (relating to participation
                            of children with disabilities in
                            general assessments).
                              (ii) The requirements of items (aa)
                            and (bb) of paragraph (1)(A)(i)(VIII)
                            (relating to transition planning and
                            transition services), do not apply with
                            respect to such children whose
                            eligibility under this part will end,
                            because of their age, before they will
                            be released from prison.
                      (B) Additional requirement.--If a child with
                    a disability is convicted as an adult under
                    State law and incarcerated in an adult prison,
                    the child's IEP Team may modify the child's IEP
                    or placement notwithstanding the requirements
                    of sections 612(a)(5)(A) and 614(d)(1)(A) if
                    the State has demonstrated a bona fide security
                    or compelling penological interest that cannot
                    otherwise be accommodated.
      (e) Educational Placements.--Each local educational agency or
    State educational agency shall ensure that the parents of each
    child with a disability are members of any group that makes
    decisions on the educational placement of their child.
      (f) Alternative Means of Meeting Participation.--When
    conducting IEP Team meetings and placement meetings pursuant to
    this section, the parent of a child with a disability and a
    local educational agency may agree to use alternative means of
    meeting participation, such as video conferences and conference
    calls.

    SEC. 615. PROCEDURAL SAFEGUARDS.

      (a) Establishment of Procedures.--Any State educational
    agency, State agency, or local educational agency that receives
    assistance under this part shall establish and maintain
    procedures in accordance with this section to ensure that
    children with disabilities 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,
            in accordance with subsection (c)(1), whenever the
            local educational agency--
                      (A) proposes to initiate or change; or
                      (B) refuses to initiate or change,
            the identification, evaluation, or educational
            placement of the child, or the provision of a free
            appropriate public education to the child;
              (4) procedures designed to ensure that the notice
            required by paragraph (3) is in the native language of
            the parents, unless it clearly is not feasible to do
            so;
              (5) an opportunity for mediation in accordance with
            subsection (e);
              (6) an opportunity for either party to present
            complaints with respect to any matter relating to the
            identification, evaluation, or educational placement of
            the child, or the provision of a free appropriate
            public education to such child;
              (7)(A) procedures that require either party, or the
            attorney representing a party, to provide due process
            complaint notice in accordance with subsection (c)(2)
            (which shall remain confidential)--
                      (i) to the other party, in the complaint
                    filed under paragraph (6), and forward a copy
                    of such notice to the State educational agency;
                    and
                      (ii) that shall include--
                              (I) the name of the child, the
                            address of the residence of the child,
                            and the name of the school the child is
                            attending;
                              (II) in the case of a homeless child
                            or youth (within the meaning of section
                            725(2) of the McKinney-Vento Homeless
                            Assistance Act (42 U.S.C. 11434a(2)),
                            available contact information for the
                            child and the name of the school the
                            child is attending;
                              (III) a description of the nature of
                            the problem of the child relating to
                            such proposed initiation or change,
                            including facts relating to such
                            problem; and
                              (IV) a proposed resolution of the
                            problem to the extent known and
                            available to the party at the time; and
              (B) a requirement that a party may not have a due
            process hearing until the party, or the attorney
            representing the party, files a notice that meets the
            requirements of subparagraph (A)(ii);
              (8) a requirement that the local educational agency
            shall send a prior written notice pursuant to
            subsection (c)(1) in response to a parent's due process
            complaint notice under paragraph (7) if the local
            educational agency has not sent such a prior written
            notice to the parent regarding the subject matter
            contained in the parent's due process complaint notice;
            and
              (9) procedures that require the State educational
            agency to develop a model form to assist parents in
            filing a complaint and due process complaint notice in
            accordance with paragraphs (6) and (7), respectively.
      (c) Notification Requirements.--
              (1) Content of prior written notice.--The prior
            written notice of the local educational agency required
            by subsection (b)(3) shall include--
                      (A) a description of the action proposed or
                    refused by the agency;
                      (B) an explanation of why the agency proposes
                    or refuses to take the action;
                      (C) a description of any other options that
                    the agency considered and the reasons why those
                    options were rejected;
                      (D) a description of each evaluation
                    procedure, test, record, or report the agency
                    used as a basis for the proposed or refused
                    action;
                      (E) a description of any other factors that
                    are relevant to the agency's proposal or
                    refusal;
                      (F) a statement that the parents of a child
                    with a disability have protection under the
                    procedural safeguards of this part and, if this
                    notice is not an initial referral for
                    evaluation, the means by which a copy of a
                    description of the procedural safeguards can be
                    obtained; and
                      (G) sources for parents to contact to obtain
                    assistance in understanding the provisions of
                    this part.
              (2) Due process complaint notice.--
                      (A) In general.--The due process complaint
                    notice required under subsection (b)(7)(A)
                    shall be deemed to be sufficient unless the
                    party receiving the notice notifies the hearing
                    officer and the other party in writing that the
                    receiving party believes the notice has not met
                    the requirements of that subsection.
                      (B) Timing.--The party sending a hearing
                    officer notification under subparagraph (A)
                    shall send the notification within 20 days of
                    receiving the complaint.
                      (C) Determination.--Within 5 days of receipt
                    of the notification provided under subparagraph
                    (B), the hearing officer shall make a
                    determination on the face of the notice of
                    whether the notification meets the requirements
                    of subsection (b)(7)(A), and shall immediately
                    notify both parties in writing of such
                    determination.
                      (D) Parent's amended notice of complaint.--
                              (i) In general.--A parent may amend
                            the parent's due process complaint
                            notice only if--
                                      (I) the public agency
                                    consents in writing to such
                                    amendment and is given the
                                    opportunity to resolve the
                                    complaint through a meeting
                                    held pursuant to subsection
                                    (f)(1)(B); or
                                      (II) the hearing officer
                                    grants permission, but may do
                                    so only before a due process
                                    hearing occurs.
                              (ii) Applicable timeline.--The
                            applicable timeline for a due process
                            hearing under this part shall
                            recommence at the time the party files
                            an amended notice.
      (d) Procedural Safeguards Notice.--
              (1) In general.--A copy of the procedural safeguards
            available to the parents of a child with a disability
            shall be given to the parents only 1 time a year,
            except that a copy also shall be given to the parents--
                      (A) upon initial referral or parental request
                    for evaluation;
                      (B) upon registration of a complaint under
                    subsection (b)(6); and
                      (C) upon request by a parent.
              (2) Contents.--The procedural safeguards notice shall
            include a full explanation of the procedural
            safeguards, written in the native language of the
            parents, unless it clearly is not feasible to do so,
            and written in an easily understandable manner,
            available under this section and under regulations
            promulgated by the Secretary relating to--
                      (A) independent educational evaluation;
                      (B) prior written notice;
                      (C) parental consent;
                      (D) access to educational records;
                      (E) the opportunity to present and resolve
                    complaints, including--
                              (i) the time period in which to make
                            a complaint;
                              (ii) the opportunity for the agency
                            to resolve the complaint; and
                              (iii) the availability of mediation;
                      (F) the child's placement during pendency of
                    due process proceedings;
                      (G) procedures for students who are subject
                    to placement in an interim alternative
                    educational setting;
                      (H) requirements for unilateral placement by
                    parents of children in private schools at
                    public expense;
                      (I) due process hearings, including
                    requirements for disclosure of evaluation
                    results and recommendations;
                      (J) State-level appeals (if applicable in
                    that State);
                      (K) civil actions, including the time period
                    in which to file such actions; and
                      (L) attorney's fees.
      (e) Mediation.--
              (1) In general.--Any State educational agency or
            local educational agency that receives assistance under
            this part shall ensure that procedures are established
            and implemented to allow parties to disputes involving
            any matter, including matters arising prior to the
            filing of a complaint pursuant to subsection (b)(6), to
            resolve such disputes through a mediation process.
              (2) Requirements.--Such procedures shall meet the
            following requirements:
                      (A) The procedures shall ensure that the
                    mediation process--
                              (i) is voluntary on the part of the
                            parties;
                              (ii) is not used to deny or delay a
                            parent's right to a due process hearing
                            under subsection (f), or to deny any
                            other rights afforded under this part;
                            and
                              (iii) is conducted by a qualified and
                            impartial mediator who is trained in
                            effective mediation techniques.
                      (B) Opportunity to meet with a disinterested
                    party.--A local educational agency or a State
                    agency may establish procedures to offer to
                    parents and schools who choose not to use the
                    mediation process, an opportunity to meet, at a
                    time and location convenient to the parents,
                    with a disinterested party who is under
                    contract with--
                              (i) a parent training and information
                            center or community parent resource
                            center in the State established under
                            section 671 or 672; or
                              (ii) an appropriate alternative
                            dispute resolution entity,
                    to encourage the use, and explain the benefits,
                    of the mediation process to the parents.
                      (C) List of qualified mediators.--The State
                    shall maintain a list of individuals who are
                    qualified mediators and knowledgeable in laws
                    and regulations relating to the provision of
                    special education and related services.
                      (D) Costs.--The State shall bear the cost of
                    the mediation process, including the costs of
                    meetings described in subparagraph (B).
                      (E) Scheduling and location.--Each session in
                    the mediation process shall be scheduled in a
                    timely manner and shall be held in a location
                    that is convenient to the parties to the
                    dispute.
                      (F) Written mediation agreement.--An
                    agreement reached by the parties to the dispute
                    in the mediation process shall be set forth in
                    a written mediation agreement that is
                    enforceable in any State court of competent
                    jurisdiction or in a district court of the
                    United States.
                      (G) Mediation discussions.--Discussions that
                    occur during the mediation process shall be
                    confidential and may not be used as evidence in
                    any subsequent due process hearings or civil
                    proceedings, and the parties to the mediation
                    process may be required to sign a
                    confidentiality pledge prior to the
                    commencement of such process.
      (f) Impartial Due Process Hearing.--
              (1) In general.--
                      (A) Hearing.--Whenever a complaint has been
                    received under subsection (b)(6) or (k), the
                    parents or the local educational agency
                    involved in such complaint shall have an
                    opportunity for an impartial due process
                    hearing, which shall be conducted by the State
                    educational agency or by the local educational
                    agency, as determined by State law or by the
                    State educational agency.
                      (B) Opportunity to resolve complaint.--
                              (i) Preliminary meeting.--Prior to
                            the opportunity for an impartial due
                            process hearing under subparagraph (A),
                            the local educational agency shall
                            convene a meeting with the parents and
                            the IEP Team--
                                      (I) within 15 days of
                                    receiving notice of the
                                    parents' complaint;
                                      (II) which shall include a
                                    representative of the public
                                    agency who has decisionmaking
                                    authority on behalf of such
                                    agency;
                                      (III) which may not include
                                    an attorney of the local
                                    educational agency unless the
                                    parent is accompanied by an
                                    attorney; and
                                      (IV) where the parents of the
                                    child discuss their complaint,
                                    and the specific issues that
                                    form the basis of the
                                    complaint, and the local
                                    educational agency is provided
                                    the opportunity to resolve the
                                    complaint,
                            unless the parents and the local
                            educational agency agree in writing to
                            waive such meeting, or agree to use the
                            mediation process described in
                            subsection (e).
                              (ii) Hearing.--If the local
                            educational agency has not resolved the
                            complaint to the satisfaction of the
                            parents within 15 days of the receipt
                            of the complaint, the due process
                            hearing may occur, and all of the
                            applicable timelines for a due process
                            hearing under this part shall commence.
                              (iii) Written settlement agreement.--
                            In the case that an agreement is
                            reached to resolve the complaint at
                            such meeting, the agreement shall be
                            set forth in a written settlement
                            agreement that is--
                                      (I) signed by both the parent
                                    and a representative of the
                                    public agency who has
                                    decisionmaking authority on
                                    behalf of such agency; and
                                      (II) enforceable in any State
                                    court of competent jurisdiction
                                    or in a district court of the
                                    United States.
              (2) Disclosure of evaluations and recommendations.--
                      (A) In general.--Not less than 5 business
                    days prior to a hearing conducted pursuant to
                    paragraph (1), each party shall disclose to all
                    other parties all evaluations completed by that
                    date, and recommendations based on the offering
                    party's evaluations, that the party intends to
                    use at the hearing.
                      (B) Failure to disclose.--A hearing officer
                    may bar any party that fails to comply with
                    subparagraph (A) from introducing the relevant
                    evaluation or recommendation at the hearing
                    without the consent of the other party.
              (3) Limitations on hearing.--
                      (A) Person conducting hearing.--A hearing
                    officer conducting a hearing pursuant to
                    paragraph (1)(A) shall, at a minimum--
                              (i) not be--
                                      (I) an employee of the State
                                    educational agency or the local
                                    educational agency involved in
                                    the education or care of the
                                    child; or
                                      (II) a person having a
                                    personal or professional
                                    interest that conflicts with
                                    the person's objectivity in the
                                    hearing;
                              (ii) possess a fundamental
                            understanding of this Act, Federal and
                            State regulations pertaining to this
                            Act, and interpretations of this Act by
                            State and Federal courts;
                              (iii) possess the knowledge and
                            ability to conduct hearings in
                            accordance with appropriate, standard
                            legal practice; and
                              (iv) possess the knowledge and
                            ability to render and write decisions
                            in accordance with appropriate,
                            standard legal practice.
                      (B) Subject matter of hearing.--The party
                    requesting the due process hearing shall not be
                    allowed to raise issues at the due process
                    hearing that were not raised in the notice
                    filed under subsection (b)(7), unless the other
                    party agrees otherwise.
                      (C) Rule of construction.--Nothing in this
                    section shall be construed to preclude a parent
                    from filing a separate due process complaint on
                    an issue separate from a due process complaint
                    already filed.
                      (D) Timeline for requesting hearing.--A
                    parent or public agency shall request an
                    impartial due process hearing within 2 years of
                    the date the parent or public agency knew or
                    should have known about the alleged action that
                    forms the basis of the complaint, or, if the
                    State has an explicit time limitation for
                    requesting such a hearing under this part, in
                    such time as the State law allows.
                      (E) Exception to the statute of
                    limitations.--The statute of limitations
                    described in subparagraph (D) shall not apply
                    if the parent was prevented from requesting the
                    hearing due to--
                              (i) failure of the local educational
                            agency to provide prior written or
                            procedural safeguards notices;
                              (ii) false representations that the
                            local educational agency was attempting
                            to resolve the problem forming the
                            basis of the complaint; or
                              (iii) the local educational agency's
                            withholding of information from
                            parents.
                      (F) Decision of hearing officer.--
                              (i) In general.--Subject to clause
                            (ii), a decision made by a hearing
                            officer shall be made on substantive
                            grounds based on a determination of
                            whether the child received a free
                            appropriate public education.
                              (ii) Procedural issues.--In matters
                            alleging a procedural violation, a
                            hearing officer may find that a child
                            did not receive a free appropriate
                            public education only if the procedural
                            inadequacies--
                                      (I) compromised the child's
                                    right to an appropriate public
                                    education;
                                      (II) seriously hampered the
                                    parents' opportunity to
                                    participate in the process; or
                                      (III) caused a deprivation of
                                    educational benefits.
                              (iii) Rule of construction.--Nothing
                            in this paragraph shall be construed to
                            preclude a hearing officer from
                            ordering a local educational agency to
                            comply with procedural requirements
                            under this section.
                      (G) Rule of construction.--Nothing in this
                    section shall be construed to affect the right
                    of a parent to file a complaint with the State
                    educational agency.
      (g) Appeal.--If the hearing required by subsection (f) is
    conducted by a local educational agency, any party aggrieved by
    the findings and decision rendered in such a hearing may appeal
    such findings and decision to the State educational agency.
    Such State educational agency shall conduct an impartial review
    of such decision. The officer conducting such review shall make
    an independent decision upon completion of such review.
      (h) Safeguards.--Any party to a hearing conducted pursuant to
    subsection (f) or (k), or an appeal conducted pursuant to
    subsection (g), shall be accorded--
              (1) the right to be accompanied and advised by
            counsel and by individuals with special knowledge or
            training with respect to the problems of children with
            disabilities;
              (2) the right to present evidence and confront,
            cross-examine, and compel the attendance of witnesses;
              (3) the right to a written, or, at the option of the
            parents, electronic verbatim record of such hearing;
            and
              (4) the right to a written, or, at the option of the
            parents, electronic findings of fact and decisions,
            which findings and decisions--
                      (A) shall be made available to the public
                    consistent with the requirements of section
                    617(b) (relating to the confidentiality of
                    data, information, and records); and
                      (B) shall be transmitted to the advisory
                    panel established pursuant to section
                    612(a)(20).
      (i) Administrative Procedures.--
              (1) In general.--
                      (A) Decision made in hearing.--A decision
                    made in a hearing conducted pursuant to
                    subsection (f) or (k) shall be final, except
                    that any party involved in such hearing may
                    appeal such decision under the provisions of
                    subsection (g) and paragraph (2).
                      (B) Decision made at appeal.--A decision made
                    under subsection (g) shall be final, except
                    that any party may bring an action under
                    paragraph (2).
              (2) Right to bring civil action.--
                      (A) In general.--Any party aggrieved by the
                    findings and decision made under subsection (f)
                    or (k) who does not have the right to an appeal
                    under subsection (g), and any party aggrieved
                    by the findings and decision under this
                    subsection, shall have the right to bring a
                    civil action with respect to the complaint
                    presented pursuant to this section, which
                    action may be brought in any State court of
                    competent jurisdiction or in a district court
                    of the United States, without regard to the
                    amount in controversy.
                      (B) Limitation.--The party bringing the
                    action shall have 90 days from the date of the
                    decision of the hearing officer to bring such
                    an action, or, if the State has an explicit
                    time limitation for bringing such action under
                    this part, in such time as the State law
                    allows.
                      (C) Additional requirements.--In any action
                    brought under this paragraph, the court--
                              (i) shall receive the records of the
                            administrative proceedings;
                              (ii) shall hear additional evidence
                            at the request of a party; and
                              (iii) basing its decision on the
                            preponderance of the evidence, shall
                            grant such relief as the court
                            determines is appropriate.
              (3) Jurisdiction of district courts; attorneys'
            fees.--
                      (A) In general.--The district courts of the
                    United States shall have jurisdiction of
                    actions brought under this section without
                    regard to the amount in controversy.
                      (B) Award of attorneys' fees.--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) In general.--Attorneys' fees may
                            not be awarded and related costs may
                            not be reimbursed in any action or
                            proceeding under this section for
                            services performed subsequent to the
                            time of a written offer of settlement
                            to a parent if--
                                      (I) the offer is made within
                                    the time prescribed by Rule 68
                                    of the Federal Rules of Civil
                                    Procedure or, in the case of an
                                    administrative proceeding, at
                                    any time more than 10 days
                                    before the proceeding begins;
                                      (II) the offer is not
                                    accepted within 10 days; and
                                      (III) the court or
                                    administrative hearing officer
                                    finds that the relief finally
                                    obtained by the parents is not
                                    more favorable to the parents
                                    than the offer of settlement.
                              (ii) IEP team meetings.--Attorneys'
                            fees may not be awarded relating to any
                            meeting of the IEP Team unless such
                            meeting is convened as a result of an
                            administrative proceeding or judicial
                            action, or, at the discretion of the
                            State, for a mediation described in
                            subsection (e).
                              (iii) Opportunity to resolve
                            complaints.--A meeting conducted
                            pursuant to subsection (f)(1)(B)(i)
                            shall not be considered--
                                      (I) a meeting convened as a
                                    result of an administrative
                                    hearing or judicial action; or
                                      (II) an administrative
                                    hearing or judicial action for
                                    purposes of this paragraph.
                      (E) Exception to prohibition on attorneys'
                    fees and related costs.--Notwithstanding
                    subparagraph (D), an award of attorneys' fees
                    and related costs may be made to a parent who
                    is the prevailing party and who was
                    substantially justified in rejecting the
                    settlement offer.
                      (F) Reduction in amount of attorneys' fees.--
                    Except as provided in subparagraph (G),
                    whenever the court finds that--
                              (i) the parent, or the parent's
                            attorney, during the course of the
                            action or proceeding, unreasonably
                            protracted the final resolution of the
                            controversy;
                              (ii) the amount of the attorneys'
                            fees otherwise authorized to be awarded
                            unreasonably exceeds the hourly rate
                            prevailing in the community for similar
                            services by attorneys of reasonably
                            comparable skill, reputation, and
                            experience;
                              (iii) the time spent and legal
                            services furnished were excessive
                            considering the nature of the action or
                            proceeding; or
                              (iv) the attorney representing the
                            parent did not provide to the local
                            educational agency the appropriate
                            information in the notice of the
                            complaint described in subsection
                            (b)(7)(A),
                    the court shall reduce, accordingly, the amount
                    of the attorneys' fees awarded under this
                    section.
                      (G) Exception to reduction in amount of
                    attorneys' fees.--The provisions of
                    subparagraph (F) shall not apply in any action
                    or proceeding if the court finds that the State
                    or local educational agency unreasonably
                    protracted the final resolution of the action
                    or proceeding or there was a violation of this
                    section.
              (4) Parents representing their children in court.--
            Subject to subsection (m), and notwithstanding any
            other provision of Federal law regarding attorney
            representation (including the Federal Rules of Civil
            Procedure), a parent of a child with a disability may
            represent the child in any action under this part in
            Federal or State court, without the assistance of an
            attorney.
      (j) Maintenance of Current Educational Placement.--Except as
    provided in subsection (k)(4), during the pendency of any
    proceedings conducted pursuant to this section, unless the
    State or local educational agency and the parents otherwise
    agree, the child shall remain in the then-current educational
    placement of such child, or, if applying for initial admission
    to a public school, shall, with the consent of the parents, be
    placed in the public school program until all such proceedings
    have been completed.
      (k) Placement in Alternative Educational Setting.--
              (1) Authority of school personnel.--
                      (A) In general.--School personnel under this
                    section may order a change in the placement of
                    a child with a disability who violates a code
                    of student conduct to an appropriate interim
                    alternative educational setting, another
                    setting, or suspension, for not more than 10
                    school days (to the extent such alternatives
                    are applied to children without disabilities).
                      (B) Additional authority.--If school
                    personnel seek to order a change in placement
                    that would exceed 10 school days and the
                    behavior that gave rise to the violation of the
                    school code is determined not to be a
                    manifestation of the child's disability
                    pursuant to subparagraph (C), the relevant
                    disciplinary procedures applicable to children
                    without disabilities may be applied to the
                    child in the same manner in which the
                    procedures would be applied to children without
                    disabilities, except as provided in section
                    612(a)(1).
                      (C) Manifestation determination.--
                              (i) In general.--Except as provided
                            in subparagraphs (A) and (D), within 10
                            school days of any decision to change
                            the placement of a child with a
                            disability because of a violation of a
                            code of student conduct, the IEP Team
                            shall review all relevant information
                            in the student's file, any information
                            provided by the parents, and teacher
                            observations, to determine--
                                      (I) if the conduct in
                                    question was the result of the
                                    child's disability; or
                                      (II) if the conduct in
                                    question resulted from the
                                    failure to implement the IEP or
                                    to implement behavioral
                                    interventions as required by
                                    section 614(d)(3)(B)(i).
                              (ii) Manifestation.--If the IEP Team
                            determines that either subclause (I) or
                            (II) of clause (i) is applicable for
                            the child, the conduct shall be
                            determined to be a manifestation of the
                            child's disability.
                      (D) Special circumstances.--In cases where a
                    child--
                              (i) carries or possesses a weapon to
                            or at school, on school premises, or to
                            or at a school function under the
                            jurisdiction of a State or local
                            educational agency; or
                              (ii) knowingly possesses or uses
                            illegal drugs, or sells or solicits the
                            sale of a controlled substance, while
                            at school or a school function under
                            the jurisdiction of a State or local
                            educational agency; or
                              (iii) has committed serious bodily
                            injury upon another person while at
                            school or at a school function under
                            the jurisdiction of a State or local
                            educational agency,
                    school personnel may remove a student to an
                    interim alternative educational setting for not
                    more than 45 school days, without regard to
                    whether the behavior is determined to be a
                    manifestation of the child's disability.
                      (E) Notification.--Not later than the date on
                    which the decision to take disciplinary action
                    is made, the local educational agency shall
                    notify the parents of that decision, and of all
                    procedural safeguards accorded under this
                    section.
                      (F) Services.--A child with a disability who
                    is removed from the child's current placement
                    under subparagraph (B) or (D) shall--
                              (i) continue to receive educational
                            services pursuant to section 612(a)(1),
                            so as to enable the child to continue
                            to participate in the general education
                            curriculum, although in another
                            setting, and to progress toward meeting
                            the goals set out in the child's IEP;
                            and
                              (ii) receive behavioral intervention
                            services as described in section
                            614(d)(3)(B)(i), and a functional
                            behavioral assessment (but only if the
                            local educational agency did not
                            conduct such an assessment before the
                            violation occurred), designed to
                            address the behavior violation so that
                            the violation does not recur.
              (2) Determination of setting.--The alternative
            educational setting shall be determined by the IEP
            Team.
              (3) Appeal.--
                      (A) In general.--The parent of a child with a
                    disability who disagrees with any decision
                    regarding disciplinary action, placement, or
                    the manifestation determination under this
                    subsection, or a local educational agency that
                    believes that maintaining the current placement
                    of the child is substantially likely to result
                    in injury to the child or to others, may
                    request a hearing.
                      (B) Authority of hearing officer.--
                              (i) In general.--If a parent of a
                            child with a disability disagrees with
                            a decision as described in subparagraph
                            (A), the hearing officer may determine
                            whether the decision regarding such
                            action was appropriate.
                              (ii) Change of placement order.--A
                            hearing officer under this section may
                            order a change in placement of a child
                            with a disability to an appropriate
                            interim alternative educational setting
                            for not more than 45 school days if the
                            hearing officer determines that
                            maintaining the current placement of
                            such child is substantially likely to
                            result in injury to the child or to
                            others.
              (4) Placement during appeals.--When a parent requests
            a hearing regarding a disciplinary procedure described
            in paragraph (1)(B) or challenges the interim
            alternative educational setting or manifestation
            determination--
                      (A) the child shall remain in the interim
                    alternative educational setting pending the
                    decision of the hearing officer or until the
                    expiration of the time period provided for in
                    paragraph (1)(B), whichever occurs first,
                    unless the parent and the State or local
                    educational agency agree otherwise; and
                      (B) the State or local educational agency
                    shall arrange for an expedited hearing, which
                    shall occur within 20 school days of the date
                    the hearing is requested.
              (5) Protections for children not yet eligible for
            special education and related services.--
                      (A) In general.--A child who has not been
                    determined to be eligible for special education
                    and related services under this part and who
                    has engaged in behavior that violates a code of
                    student conduct, may assert any of the
                    protections provided for in this part if the
                    local educational agency had knowledge (as
                    determined in accordance with this paragraph)
                    that the child was a child with a disability
                    before the behavior that precipitated the
                    disciplinary action occurred.
                      (B) Basis of knowledge.--A local educational
                    agency shall be deemed to have knowledge that a
                    child is a child with a disability if, before
                    the behavior that precipitated the disciplinary
                    action occurred--
                              (i) the parent of the child has
                            expressed concern in writing (unless
                            the parent is illiterate or has a
                            disability that prevents compliance
                            with the requirements contained in this
                            clause) to personnel of the appropriate
                            educational agency that the child is in
                            need of special education and related
                            services;
                              (ii) the parent of the child has
                            requested an evaluation of the child
                            pursuant to section 614;
                              (iii) the teacher of the child, or
                            other personnel of the local
                            educational agency, has expressed
                            concern about a pattern of behavior
                            demonstrated by the child, to the
                            director of special education of such
                            agency or to other administrative
                            personnel of the agency; or
                              (iv) the child has engaged in a
                            pattern of behavior that should have
                            alerted personnel of the local
                            educational agency that the child may
                            be in need of special education and
                            related services.
                      (C) Exception.--A local educational agency
                    shall not be deemed to have knowledge that the
                    child has a disability if the parent of the
                    child has not agreed to allow an evaluation of
                    the child pursuant to section 614.
                      (D) Conditions that apply if no basis of
                    knowledge.--
                              (i) In general.--If a local
                            educational agency does not have
                            knowledge that a child is a child with
                            a disability (in accordance with
                            subparagraph (B) or (C)) prior to
                            taking disciplinary measures against
                            the child, the child may be subjected
                            to disciplinary measures applied to
                            children without disabilities who
                            engaged in comparable behaviors
                            consistent with clause (ii).
                              (ii) Limitations.--If a request is
                            made for an evaluation of a child
                            during the time period in which the
                            child is subjected to disciplinary
                            measures under paragraph (1), the
                            evaluation shall be conducted in an
                            expedited manner. If the child is
                            determined to be a child with a
                            disability, taking into consideration
                            information from the evaluation
                            conducted by the agency and information
                            provided by the parents, the agency
                            shall provide special education and
                            related services in accordance with
                            this part, except that, pending the
                            results of the evaluation, the child
                            shall remain in the educational
                            placement determined by school
                            authorities.
              (6) Referral to and action by law enforcement and
            judicial authorities.--
                      (A) Construction.--Nothing in this part shall
                    be construed to prohibit an agency from
                    reporting a crime committed by a child with a
                    disability to appropriate authorities or to
                    prevent State law enforcement and judicial
                    authorities from exercising their
                    responsibilities with regard to the application
                    of Federal and State law to crimes committed by
                    a child with a disability.
                      (B) Transmittal of records.--An agency
                    reporting a crime committed by a child with a
                    disability shall ensure that copies of the
                    special education and disciplinary records of
                    the child are transmitted for consideration by
                    the appropriate authorities to whom the agency
                    reports the crime.
              (7) Definitions.--For purposes of this subsection,
            the following definitions apply:
                      (A) Controlled substance.--The term
                    ``controlled substance'' means a drug or other
                    substance identified under schedule I, II, III,
                    IV, or V in section 202(c) of the Controlled
                    Substances Act (21 U.S.C. 812(c)).
                      (B) Illegal drug.--The term ``illegal drug''
                    means a controlled substance but does not
                    include a controlled substance that is legally
                    possessed or used under the supervision of a
                    licensed health-care professional or that is
                    legally possessed or used under any other
                    authority under that Act or under any other
                    provision of Federal law.
                      (C) Weapon.--The term ``weapon'' has the
                    meaning given the term ``dangerous weapon''
                    under section 930(g)(2) of title 18, United
                    States Code.
                      (D) Serious bodily injury.--The term
                    ``serious bodily injury'' has the meaning given
                    the term ``serious bodily injury'' under
                    paragraph (3) of subsection (h) of section 1365
                    of title 18, United States Code.
      (l) Rule of Construction.--Nothing in this title shall be
    construed to restrict or limit the rights, procedures, and
    remedies available under the Constitution, the Americans with
    Disabilities Act of 1990, title V of the Rehabilitation Act of
    1973, or other Federal laws protecting the rights of children
    with disabilities, 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.
      (n) E-Mail.--A parent of a child with a disability may elect
    to receive notices required under this section by e-mail
    communication, if the public agency makes such option
    available.

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

      (a) Federal and State Monitoring.--
              (1) In general.--The Secretary shall--
                      (A) monitor implementation of this Act
                    through--
                              (i) oversight of the States' exercise
                            of general supervision, as required in
                            section 612(a)(11); and
                              (ii) the system of indicators,
                            described in subsection (b)(2); and
                      (B) enforce this Act in accordance with
                    subsection (c); and
                      (C) require States to monitor implementation
                    of this Act by local educational agencies and
                    enforce this Act in accordance with paragraph
                    (3) of this subsection and subsection (c).
              (2) Focused monitoring.--The primary focus of Federal
            and State monitoring activities described in paragraph
            (1) shall be on improving educational results and
            functional outcomes for all children with disabilities,
            while ensuring compliance with program requirements,
            with a particular emphasis on those requirements that
            are most closely related to improving educational
            results for children with disabilities.
              (3) Monitoring priorities.--The Secretary shall
            monitor, and shall require States to monitor, the
            following priority areas:
                      (A) Provision of a free appropriate public
                    education in the least restrictive environment.
                      (B) Provision of transition services, as
                    defined in section 602(33).
                      (C) State exercise of general supervisory
                    authority, including the effective use of
                    complaint resolution and mediation.
                      (D) Overrepresentation of racial and ethnic
                    groups in special education and related
                    services, to the extent the overrepresentation
                    is the result of inappropriate policies,
                    procedures, and practices.
              (4) Permissive areas of review.--The Secretary may
            examine other relevant information and data, including
            data provided by States under section 618, and data
            from the State's compliance plan under subsection
            (b)(2)(C).
      (b) Indicators.--
              (1) System.--The Secretary shall implement and
            administer a system of required indicators as described
            in paragraph (2) that measures the progress of States
            in improving their performance under this Act.
              (2) Indicators.--
                      (A) In general.--Using the performance
                    indicators established by States under section
                    612(a)(15), the Secretary shall review--
                              (i) the performance of children with
                            disabilities in the State on
                            assessments, including alternate
                            assessments, dropout rates, and
                            graduation rates, which for purposes of
                            this paragraph means the number and
                            percentage of students with
                            disabilities who graduate with a
                            regular diploma within the number of
                            years specified in a student's IEP; and
                              (ii) the performance of children with
                            disabilities in the State on
                            assessments, including alternate
                            assessments, dropout rates, and
                            graduation rates, as compared to the
                            performance and rates for all children.
                      (B) Secretary's assessment.--Based on that
                    review and a review of the State's compliance
                    plan under subparagraph (C), the Secretary
                    shall assess the State's progress in improving
                    educational results for children with
                    disabilities.
                      (C) State compliance plan.--Not later than 1
                    year after the date of the enactment of the
                    Individuals with Disabilities Education
                    Improvement Act of 2003, each State shall have
                    in place a compliance plan developed in
                    collaboration with the Secretary. Each State's
                    compliance plan shall--
                              (i) include benchmarks to measure
                            continuous progress on the priority
                            areas described in subsection (a)(3);
                              (ii) describe strategies the State
                            will use to achieve the benchmarks; and
                              (iii) be approved by the Secretary.
                      (D) Public reporting and privacy.--
                              (i) In general.--After the Secretary
                            approves a State's compliance plan
                            under subparagraph (C), the State shall
                            use the benchmarks in the plan and the
                            indicators described in this subsection
                            to analyze the progress of each local
                            educational agency in the State on
                            those benchmarks and indicators.
                              (ii) Report.--The State shall report
                            annually to the public on each local
                            educational agency's progress under
                            clause (i), except where doing so would
                            result in the disclosure of personally
                            identifiable information about
                            individual children or where the
                            available data is insufficient to yield
                            statistically reliable information.
              (3) Data collection and analysis.--The Secretary
            shall--
                      (A) review the data collection and analysis
                    capacity of States to ensure that data and
                    information determined necessary for
                    implementation of this subsection is collected,
                    analyzed, and accurately reported to the
                    Secretary; and
                      (B) provide technical assistance to improve
                    the capacity of States to meet these data
                    collection requirements.
      (c) Compliance and Enforcement.--
              (1) In general.--The Secretary shall examine relevant
            State information and data annually, to determine
            whether the State is making satisfactory progress
            toward improving educational results for children with
            disabilities using the indicators described in
            subsection (b)(2)(A) and the benchmarks established in
            the State compliance plan under subsection (b)(2)(C),
            and is in compliance with the provisions of this Act.
              (2) Lack of satisfactory progress by a state.--
                      (A) In general.--If after examining data, as
                    provided in subsection (b)(2) (A) and (C), the
                    Secretary determines that a State failed to
                    make satisfactory progress in meeting the
                    indicators described in subsection (b)(2)(A) or
                    has failed to meet the benchmarks described in
                    subsection (b)(2)(C) for 2 consecutive years
                    after the State has developed its compliance
                    plan, the Secretary shall notify the State that
                    the State has failed to make satisfactory
                    progress, and shall take 1 or more of the
                    following actions:
                              (i) Direct the use of State level
                            funds for technical assistance,
                            services, or other expenditures to
                            ensure that the State resolves the area
                            or areas of unsatisfactory progress.
                              (ii) Withhold not less than 20, but
                            not more than 50, percent of the
                            State's funds for State administration
                            and activities for the fiscal year
                            under section 611(e), after providing
                            the State the opportunity to show cause
                            why the withholding should not occur,
                            until the Secretary determines that
                            sufficient progress has been made in
                            improving educational results for
                            children with disabilities.
                      (B) Additional secretarial action.--If, at
                    the end of the 5th year after the Secretary has
                    approved the compliance plan that the State has
                    developed under subsection (b)(2)(C), the
                    Secretary determines that a State failed to
                    meet the benchmarks in the State compliance
                    plan and make satisfactory progress in
                    improving educational results for children with
                    disabilities pursuant to the indicators
                    described in subsection (b)(2)(A), the
                    Secretary shall take 1 or more of the following
                    actions:
                              (i) Seek to recover funds under
                            section 452 of the General Education
                            Provisions Act.
                              (ii) After providing reasonable
                            notice and an opportunity for a hearing
                            to the State educational agency
                            involved, withhold, in whole or in
                            part, any further payments to the State
                            under this part pursuant to subsection
                            (c)(5).
                              (iii) After providing reasonable
                            notice and an opportunity for a hearing
                            to the State educational agency
                            involved, refer the matter for
                            appropriate enforcement action, which
                            may include referral to the Department
                            of Justice.
                              (iv) Pending the outcome of any
                            hearing to withhold payments under
                            clause (ii), the Secretary may suspend
                            payments to a recipient, suspend the
                            authority of the recipient to obligate
                            Federal funds, or both, after such
                            recipient has been given reasonable
                            notice and an opportunity to show cause
                            why future payments or authority to
                            obligate Federal funds should not be
                            suspended.
                      (C) Substantial noncompliance.--
                    Notwithstanding subparagraph (B), at any time
                    that the Secretary determines that a State is
                    not in substantial compliance with any
                    provision of this part or that there is a
                    substantial failure to comply with any
                    condition of a local agency's or State agency's
                    eligibility under this part, the Secretary
                    shall take 1 or more of the following actions:
                              (i) Request that the State prepare a
                            corrective action plan or improvement
                            plan if the Secretary determines that
                            the State should be able to correct the
                            problem within 1 year.
                              (ii) Identify the State as a high-
                            risk grantee and impose special
                            conditions on the State's grant under
                            this part.
                              (iii) Require the State to enter into
                            a compliance agreement under section
                            457 of the General Education Provisions
                            Act, if the Secretary has reason to
                            believe that the State cannot correct
                            the problem within 1 year.
                              (iv) Recovery of funds under section
                            452 of the General Education Provisions
                            Act.
                              (v) After providing reasonable notice
                            and an opportunity for a hearing to the
                            State educational agency involved,
                            withhold, in whole or in part, any
                            further payments to the State under
                            this part.
                              (vi) After providing reasonable
                            notice and an opportunity for a hearing
                            to the State educational agency
                            involved, refer the matter for
                            appropriate enforcement action, which
                            may include referral to the Department
                            of Justice.
                              (vii) Pending the outcome of any
                            hearing to withhold payments under
                            clause (v), the Secretary may suspend
                            payments to a recipient, suspend the
                            authority of the recipient to obligate
                            Federal funds, or both, after such
                            recipient has been given reasonable
                            notice and an opportunity to show cause
                            why future payments or authority to
                            obligate Federal funds should not be
                            suspended.
              (3) Egregious noncompliance.--At any time that the
            Secretary determines that a State is in egregious
            noncompliance or is willfully disregarding the
            provisions of this Act, the Secretary shall take such
            additional enforcement actions as the Secretary
            determines to be appropriate from among those actions
            specified in paragraph (2)(C), and, additionally, may
            impose 1 or more of the following sanctions upon that
            State:
                      (A) Institute a cease and desist action under
                    section 456 of the General Education Provisions
                    Act.
                      (B) Refer the case to the Office of the
                    Inspector General.
              (4) Report to congress.--The Secretary shall report
            to Congress within 30 days of taking enforcement action
            pursuant to paragraph (2) (B) or (C), or (3), on the
            specific action taken and the reasons why enforcement
            action was taken.
              (5) Nature of withholding.--If the Secretary
            withholds further payments under paragraphs (2)(B)(ii)
            and (2)(C)(v), the Secretary may determine that such
            withholding will be limited to programs or projects, or
            portions thereof, affected by the failure, or that the
            State educational agency shall not make further
            payments under this part to specified local educational
            agencies or State agencies affected by the failure.
            Until the Secretary is satisfied that there is no
            longer any failure to make satisfactory progress as
            specified in paragraph (2)(B), or to comply with the
            provisions of this part, as specified in paragraph
            (2)(C), payments to the State under this part shall be
            withheld in whole or in part, or payments by the State
            educational agency under this part shall be limited to
            local educational agencies and State agencies whose
            actions did not cause or were not involved in the
            failure, as the case may be. Any State educational
            agency, State agency, or local educational agency that
            has received notice under paragraph (2)(B) or (2)(C)
            shall, by means of a public notice, take such measures
            as may be necessary to bring the pendency of an action
            pursuant to this subsection to the attention of the
            public within the jurisdiction of such agency.
              (6) Judicial review.--
                      (A) In general.--If any State is dissatisfied
                    with the Secretary's final action with respect
                    to the eligibility of the State under section
                    612, such State may, not later than 60 days
                    after notice of such action, file with the
                    United States court of appeals for the circuit
                    in which such State is located a petition for
                    review of that action. A copy of the petition
                    shall be forthwith transmitted by the clerk of
                    the court to the Secretary. The Secretary
                    thereupon shall file in the court the record of
                    the proceedings upon which the Secretary's
                    action was based, as provided in section 2112
                    of title 28, United States Code.
                      (B) Jurisdiction; review by united states
                    supreme court.--Upon the filing of such
                    petition, the court shall have jurisdiction to
                    affirm the action of the Secretary or to set it
                    aside, in whole or in part. The judgment of the
                    court shall be subject to review by the Supreme
                    Court of the United States upon certiorari or
                    certification as provided in section 1254 of
                    title 28, United States Code.
                      (C) Standard of review.--The findings of fact
                    by the Secretary, if supported by substantial
                    evidence, shall be conclusive, but the court,
                    for good cause shown, may remand the case to
                    the Secretary to take further evidence, and the
                    Secretary may thereupon make new or modified
                    findings of fact and may modify the Secretary's
                    previous action, and shall file in the court
                    the record of the further proceedings. Such new
                    or modified findings of fact shall likewise be
                    conclusive if supported by substantial
                    evidence.
      (d) Divided State Agency Responsibility.--For purposes of
    this section, where responsibility for ensuring that the
    requirements of this part are met with respect to children with
    disabilities who are convicted as adults under State law and
    incarcerated in adult prisons is assigned to a public agency
    other than the State educational agency pursuant to section
    612(a)(11)(C), the Secretary, in instances where the Secretary
    finds that the failure to comply substantially with the
    provisions of this part are related to a failure by the public
    agency, shall take appropriate corrective action to ensure
    compliance with this part, except that--
              (1) any reduction or withholding of payments to the
            State shall be proportionate to the total funds
            allotted under section 611 to the State as the number
            of eligible children with disabilities in adult prisons
            under the supervision of the other public agency is
            proportionate to the number of eligible individuals
            with disabilities in the State under the supervision of
            the State educational agency; and
              (2) any withholding of funds under paragraph (1)
            shall be limited to the specific agency responsible for
            the failure to comply with this part.
      (e) State and Local Monitoring.--
              (1) In general.--The State educational agency shall
            monitor and enforce implementation of this Act,
            implement a system of monitoring the benchmarks in the
            State's compliance plan under subsection (b)(2)(C), and
            require local educational agencies to monitor and
            enforce implementation of this Act.
              (2) Additional enforcement options.--If a State
            educational agency determines that a local educational
            agency is not meeting the requirements of this part,
            including the benchmarks in the State's compliance
            plan, the State educational agency shall prohibit the
            local educational agency from treating funds received
            under this part as local funds under section
            613(a)(2)(C) for any fiscal year.

    SEC. 617. ADMINISTRATION.

      (a) Responsibilities of Secretary.--The Secretary shall--
              (1) cooperate with, and (directly or by grant or
            contract) furnish technical assistance necessary to, a
            State in matters relating to--
                      (A) the education of children with
                    disabilities; and
                      (B) carrying out this part; and
              (2) provide short-term training programs and
            institutes.
      (b) Confidentiality.--The Secretary shall take appropriate
    action, in accordance with section 444 of the General Education
    Provisions Act (20 U.S.C. 1232g), to assure the protection of
    the confidentiality of any personally identifiable data,
    information, and records collected or maintained by the
    Secretary and by State and local educational agencies pursuant
    to this part.
      (c) Personnel.--The Secretary is authorized to hire qualified
    personnel necessary to carry out the Secretary's duties under
    subsection (a) and under sections 618, 661, and 664, without
    regard to the provisions of title 5, United States Code,
    relating to appointments in the competitive service and without
    regard to chapter 51 and subchapter III of chapter 53 of such
    title relating to classification and general schedule pay
    rates, except that not more than 20 such personnel shall be
    employed at any 1 time.
      (d) Model Forms.--Not later than the date that the Secretary
    publishes final regulations under this Act, to implement
    amendments made by the Individuals with Disabilities Education
    Improvement Act of 2003, the Secretary shall publish and
    disseminate widely to States, local educational agencies, and
    parent and community training and information centers--
              (1) a model IEP form;
              (2) a model individualized family service plan (IFSP)
            form;
              (3) a model form of the notice of procedural
            safeguards described in section 615(d); and
              (4) a model form of the prior written notice
            described in section 615 (b)(3) and (c)(1) that is
            consistent with the requirements of this part and is
            sufficient to meet such requirements.

    SEC. 618. PROGRAM INFORMATION.

      (a) In General.--Each State that receives assistance under
    this part, and the Secretary of the Interior, shall provide
    data each year to the Secretary of Education and the public
    on--
              (1)(A) the number and percentage of children with
            disabilities, by race, ethnicity, limited English
            proficiency status, gender, and disability category,
            who are receiving a free appropriate public education;
              (B) the number and percentage of children with
            disabilities, by race, gender, and ethnicity, who are
            receiving early intervention services;
              (C) the number and percentage of children with
            disabilities, by race, ethnicity, limited English
            proficiency status, gender, and disability category,
            who are participating in regular education;
              (D) the number and percentage of children with
            disabilities, by race, ethnicity, limited English
            proficiency status, gender, and disability category,
            who are in separate classes, separate schools or
            facilities, or public or private residential
            facilities;
              (E) the number and percentage of children with
            disabilities, by race, ethnicity, limited English
            proficiency status, gender, and disability category,
            who, for each year of age from age 14 through 21,
            stopped receiving special education and related
            services because of program completion (including
            graduation with a regular secondary school diploma), or
            other reasons, and the reasons why those children
            stopped receiving special education and related
            services;
              (F) the number and percentage of children with
            disabilities, by race, gender, and ethnicity, who, from
            birth through age 2, stopped receiving early
            intervention services because of program completion or
            for other reasons;
              (G)(i) the number and percentage of children with
            disabilities, by race, ethnicity, limited English
            proficiency status, gender, and disability category,
            who are removed to an interim alternative educational
            setting under section 615(k)(1);
              (ii) the acts or items precipitating those removals;
            and
              (iii) the number of children with disabilities who
            are subject to long-term suspensions or expulsions;
              (H) the incidence and duration of disciplinary
            actions by race, ethnicity, limited English proficiency
            status, gender, and disability category, of children
            with disabilities, including suspensions of 1 day or
            more;
              (I) the number and percentage of children with
            disabilities who are removed to alternative educational
            settings or expelled as compared to children without
            disabilities who are removed to alternative educational
            settings or expelled;
              (J) the number of due process complaints filed under
            section 615 and the number of hearings conducted;
              (K) the number of hearings requested under section
            615(k) and the number of changes in placements ordered
            as a result of those hearings;
              (L) the number of hearings requested under section
            615(k)(3)(B)(ii) and the number of changes in
            placements ordered as a result of those hearings; and
              (M) the number of mediations held and the number of
            settlement agreements reached through such mediations;
              (2) the number and percentage of infants and
            toddlers, by race, and ethnicity, who are at risk of
            having substantial developmental delays (as defined in
            section 632), and who are receiving early intervention
            services under part C; and
              (3) any other information that may be required by the
            Secretary.
      (b) Data Reporting.--The data described in subsection (a)
    shall be reported by each State at the school district and
    State level in a manner that does not result in the disclosure
    of data identifiable to individual children.
      (c) Technical Assistance.--The Secretary may provide
    technical assistance to States to ensure compliance with the
    data collection and reporting requirements under this Act.
      (d) Disproportionality.--
              (1) In general.--Each State that receives assistance
            under this part, and the Secretary of the Interior,
            shall provide for the collection and examination of
            data to determine if significant disproportionality
            based on race is occurring in the State with respect
            to--
                      (A) the identification of children as
                    children with disabilities, including the
                    identification of children as children with
                    disabilities in accordance with a particular
                    impairment described in section 602(3);
                      (B) the placement in particular educational
                    settings of such children; and
                      (C) the incidence, duration, and type of
                    disciplinary actions, including suspensions and
                    expulsions.
              (2) Review and revision of policies, practices, and
            procedures.--In the case of a determination of
            significant disproportionality with respect to the
            identification of children as children with
            disabilities, or the placement in particular
            educational settings of such children, in accordance
            with paragraph (1), the State or the Secretary of the
            Interior, as the case may be, shall provide for the
            review and, if appropriate, revision of the policies,
            procedures, and practices used in such identification
            or placement to ensure that such policies, procedures,
            and practices comply with the requirements of this Act.

    SEC. 619. PRESCHOOL GRANTS.

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

               *       *       *       *       *       *       *

                [PART C--INFANTS AND TODDLERS WITH DISABILITIES

    [SEC. 631. FINDINGS AND POLICY.

        [(a) Findings.--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 communitysettings in which children
    without disabilities participate; and
                      [(H) are provided in conformity with an
                    individualized family service plan adopted in
                    accordance with section 636.
              [(5) Infant or toddler with a disability.--The term
            ``infant or toddler with a disability''--
                      [(A) means an individual under 3 years of age
                    who needs early intervention services because
                    the individual--
                              [(i) is experiencing developmental
                            delays, as measured by appropriate
                            diagnostic instruments and procedures
                            in one or more of the areas of
                            cognitive development, physical
                            development, communication development,
                            social or emotional development, and
                            adaptive development; or
                              [(ii) has a diagnosed physical or
                            mental condition which has a high
                            probability of resulting in
                            developmental delay; and
                      [(B) may also include, at a State's
                    discretion, at-risk infants and toddlers.

    [SEC. 633. GENERAL AUTHORITY.

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

    [SEC. 634. ELIGIBILITY.

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

    [SEC. 635. REQUIREMENTS FOR STATEWIDE SYSTEM.

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

    [SEC 636. INDIVIDUALIZED FAMILY SERVICE PLAN.

        [(a) Assessment and Program Development.--A statewide
    system described in section 633 shall provide, at a minimum,
    for each infant or toddler with a disability, and the infant's
    or toddler's family, to receive--
              [(1) a multidisciplinary assessment of the unique
            strengths and needs of the infant or toddler and the
            identification of services appropriate to meet such
            needs;
              [(2) a family-directed assessment of the resources,
            priorities, and concerns of the family and the
            identification of the supports and services necessary
            to enhance the family's capacity to meet the
            developmental needs of the infant or toddler; and
              [(3) a written individualized family service plan
            developed by a multidisciplinary team, including the
            parents, as required by subsection (e).
        [(b) Periodic Review.--The individualized family service
    plan shall be evaluated once a year and the family shall be
    provided a review of the plan at 6-month intervals (or more
    often where appropriate based on infant or toddler and family
    needs).
        [(c) Promptness After Assessment.--The individualized
    family service plan shall be developed within a reasonable time
    after the assessment required by subsection (a)(1) is
    completed. With the parents' consent, early intervention
    services may commerce 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 andthe 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 no 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 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 635(a)(10)
                            will--
                                      [(I) notify the local
                                    educational agency for the area
                                    in which such a child resides
                                    that the child will shortly
                                    reach the age of eligibility
                                    for preschool services under
                                    part B, as determined in
                                    accordance with State law;
                                      [(II) in the case of a child
                                    who may be eligible for such
                                    preschool services, with the
                                    approval of the family of the
                                    child, convene a conference
                                    among the lead agency, the
                                    family, and the local
                                    educational agency at least 90
                                    days (and at the discretion of
                                    all such parties, up to 6
                                    months) before the child is
                                    eligible for the preschool
                                    services, to discuss any such
                                    services that the child may
                                    receive; and
                                      [(III) in the case of a child
                                    who may not be eligible for
                                    such preschool services, with
                                    the approval of the family,
                                    make reasonable efforts to
                                    convene a conference among the
                                    lead agency, the family, and
                                    providers of other appropriate
                                    services for children who are
                                    not eligible for preschool
                                    services under part B, to
                                    discuss the appropriate
                                    services that the child may
                                    receive;
                      [(B) to review the child's program options
                    for the period from the child's third birthday
                    through the remainder of the school year; and
                      [(C) to establish a transition plan; and
              [(9) such other information and assurances as the
            Secretary may reasonably require.
        [(b) Assurances.--The application described in subsection
    (a)--
              [(1) shall provide satisfactory assurance that
            Federal funds made available under section 643 to the
            State will be expanded 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 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 that
    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 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 service under this part.

    SEC. 639. PROCEDURAL SAFEGUARDS.

        [(a) Minimum Procedures.--The procedural safeguards
    required to be included in a statewide system under section
    635(a)(13) shall provide, at a minimum, the following:
              [(1) The timely administrative resolution of
            complaints by parents. Any party aggrieved by the
            findings and decision regarding an administrative
            complaint shall have the right to bring a civil action
            with respect to the complaint in any State court of
            competent jurisdiction or in a district court of the
            United States without regard to the amount in
            controversy. In any action brought under this
            paragraph, the court shall receive the records of the
            administrative proceedings, shall hear additional
            evidence at the request of a party, and, basing its
            decision on the preponderance of the evidence, shall
            grant such relief as the court determines is
            appropriate.
              [(2) The right to confidentiality of personally
            identifiable information, including the right of
            parents to written notice of and written consent to the
            exchange of such information among agencies consistent
            with Federal and State law.
              [(3) The right of the parents to determine whether
            they, their infant or toddler, or other family members
            will accept or decline any early intervention service
            under this part in accordance with State law without
            jeopardizing other early intervention services under
            this part.
              [(4) The opportunity for parents to examine records
            relating to assessment, screening, eligibility
            determinations, and the development and implementation
            of the individualized family service plan.
              [(5) Procedures to protect the rights of the infant
            or toddler whenever the parents of the infant or
            toddler are not known or cannot be found or the infant
            or toddler is a ward of the State, including the
            assignment of an individual (who shall not be an
            employee of the State lead agency, or other State
            agency, and who shall not be any person, or any
            employee of a person, providing early intervention
            services to the infant or toddler or any family member
            of the infant or toddler) to act as a surrogate for the
            parents.
              [(6) Written prior notice to the parents of the
            infant or toddler with a disability whenever the State
            agency or service provider proposed 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 toddler 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 service 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 atimely 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.
        [ Reduction of Other Benefits.--Nothing in this part shall
    be construed to permit the State to reduce medical or other
    assistance available or to alter eligibility under title V of
    the Social Security Act (relating to maternal and child health)
    or title XIX of the Social Security Act (relating to Medicaid
    for infants or toddlers with disabilities) within the State.

    [SEC. 641. STATE INTERAGENCY COORDINATING COUNCIL.

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

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

    [SEC. 644. FEDERAL INTERAGENCY COORDINATING COUNCIL.

        [(a) Establishment and Purpose.--
              [(1) In general.--The Secretary shall establish a
            Federal Interagency Coordinating Council in order to--
                      [(A) minimize duplication of programs and
                    activities across Federal, State, and local
                    agencies, relating to--
                              [(i) early intervention services for
                            infants and toddlers with disabilities
                            (including at-risk infants and
                            toddlers) and their families; and
                              [(ii) preschool or other appropriate
                            services for children with
                            disabilities;
                      [(B) ensure the effective coordination of
                    Federal early intervention and preschool
                    programs and policies across Federal agencies;
                      [(C) coordinate the provision of Federal
                    technical assistance and support activities to
                    States;
                      [(D) identify gaps in Federal agency programs
                    and services; and
                      [(E) identify barriers to Federal interagency
                    cooperation.
              [(2) Appointments.--The council established under
            paragraph (1) (hereafter in this section referred to as
            the ``Council'') and the chairperson of the Council
            shall be appointed by the Secretary in consultation
            with other appropriate Federal agencies. In making the
            appointments, the Secretary shall ensure that each
            member has sufficient authority to engage in policy
            planning and implementation on behalf of the
            department, agency, or program that the member
            represents.
        [(b) Composition.--The Council shall be composed of--
              [(1) a representative of the Office of Special
            Education Programs;
              [(2) a representative of the National Institute on
            Disability and Rehabilitation Research and a
            representative of the Office of Educational Research
            and Improvement;
              [(3) a representative of the Maternal and Child
            Health Services Block Grant Program;
              [(4) a representative of programs administered under
            the Developmental Disabilities Assistance and Bill of
            Rights Act of 2000;
              [(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 two 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
            representatives 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 in 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.]

                 PART C--INFANTS AND TODDLERS WITH DISABILITIES

    SEC. 631. FINDINGS AND POLICY.

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

    SEC. 632. DEFINITIONS.

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

    SEC. 633. GENERAL AUTHORITY.

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

    SEC. 634. ELIGIBILITY.

      In order to be eligible for a grant under section 633, a
    State shall demonstrate to the Secretary that the State--
              (1) has adopted a policy that appropriate early
            intervention services are available to all infants and
            toddlers with disabilities in the State and their
            families, including Indian infants and toddlers with
            disabilities and their families residing on a
            reservation geographically located in the State; 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--
                      (A) will be used by the State in carrying out
                    programs under this part; and
                      (B) covers, at a minimum, all infants and
                    toddlers with--
                              (i) a developmental delay of 35
                            percent or more in 1 of the
                            developmental areas described in
                            section 632(5)(A)(i); or
                              (ii) a developmental delay of 25
                            percent or more in 2 or more of the
                            developmental areas described in
                            section 632(5)(A)(i).
              (2) A State policy that is in effect and that ensures
            that appropriate early intervention services are
            available to all infants and toddlers with disabilities
            and their families, including Indian infants and
            toddlers and their families residing on a reservation
            geographically located in the State.
              (3) A timely, comprehensive, multidisciplinary
            evaluation of the functioning of each infant or toddler
            with a disability in the State, and a family-directed
            identification of the needs of each family of such an
            infant or toddler, to appropriately assist in the
            development of the infant or toddler.
              (4) For each infant or toddler with a disability in
            the State, an individualized family service plan in
            accordance with section 636, including service
            coordination services in accordance with such service
            plan.
              (5) A comprehensive child find system, consistent
            with part B, including a system for making referrals to
            service providers that includes timelines and provides
            for participation by primary referral sources.
              (6) A public awareness program focusing on early
            identification of infants and toddlers with
            disabilities, including the preparation and
            dissemination by the lead agency designated or
            established under paragraph (10) to all primary
            referral sources, especially hospitals 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 that includes information on
            early intervention services, resources, and experts
            available in the State and research and demonstration
            projects being conducted in the State.
              (8) A comprehensive system of personnel development,
            including the training of paraprofessionals and the
            training of primary referral sources with respect to
            the basic components of early intervention services
            available in the State, which comprehensive system may
            include--
                      (A) implementing innovative strategies and
                    activities for the recruitment and retention of
                    early education service providers;
                      (B) promoting the preparation of early
                    intervention providers who are fully and
                    appropriately qualified to provide early
                    intervention services under this part;
                      (C) training personnel to work in rural and
                    inner-city areas; and
                      (D) training personnel to coordinate
                    transition services for infants and toddlers
                    served under this part from an early
                    intervention program under this part to
                    preschool or other appropriate services.
              (9) Policies and procedures relating to the
            establishment and maintenance of standards to ensure
            that personnel necessary to carry out this part are
            appropriately and adequately prepared and trained,
            including the establishment and maintenance of
            standards which are consistent with any State-approved
            or recognized certification, licensing, registration,
            or other comparable requirements which apply to the
            area in which such personnel are providing early
            intervention services, except that nothing in this part
            (including this paragraph) shall be construed to
            prohibit the use of paraprofessionals and assistants
            who are appropriately trained in accordance with State
            law, regulation, or written policy, to assist in the
            provision of early intervention services under this
            part to infants and toddlers with disabilities.
              (10) A single line of responsibility in a lead agency
            designated or established by the Governor for carrying
            out--
                      (A) the general administration and
                    supervision of programs and activities
                    receiving assistance under section 633, and the
                    monitoring of programs and activities used by
                    the State to carry out this part, whether or
                    not such programs or activities are receiving
                    assistance made available under section 633, to
                    ensure that the State complies with this part;
                      (B) the identification and coordination of
                    all available resources within the State from
                    Federal, State, local, and private sources;
                      (C) the assignment of financial
                    responsibility in accordance with section
                    637(a)(2) to the appropriate agencies;
                      (D) the development of procedures to ensure
                    that services are provided to infants and
                    toddlers with disabilities and their families
                    under this part in a timely manner pending the
                    resolution of any disputes among public
                    agencies or service providers;
                      (E) the resolution of intra- and interagency
                    disputes; and
                      (F) the entry into formal interagency
                    agreements that define the financial
                    responsibility of each agency for paying for
                    early intervention services (consistent with
                    State law) and procedures for resolving
                    disputes and that include all additional
                    components necessary to ensure meaningful
                    cooperation and coordination.
              (11) A policy pertaining to the contracting or making
            of other arrangements with service providers to provide
            early intervention services in the State, consistent
            with the provisions of this part, including the
            contents of the application used and the conditions of
            the contract or other arrangements.
              (12) A procedure for securing timely reimbursements
            of funds used under this part in accordance with
            section 640(a).
              (13) Procedural safeguards with respect to programs
            under this part, as required by section 639.
              (14) A system for compiling data requested by the
            Secretary under section 618 that relates to this part.
              (15) A State interagency coordinating council that
            meets the requirements of section 641.
              (16) Policies and procedures to ensure that,
            consistent with section 636(d)(5) to the maximum extent
            appropriate, early intervention services are provided
            in natural environments unless a specific outcome
            cannot be met satisfactorily for the infant or toddler
            in a natural environment.
      (b) Flexibility To Serve Children 3 Years of Age to Under 6
    Years of Age.--
              (1) In general.--A statewide system described in
            section 633 may include a State policy, developed and
            implemented jointly by the lead agency and the State
            educational agency, under which parents of children
            with disabilities who are eligible for services under
            section 619 and previously received services under this
            part, may choose the continuation of early intervention
            services (which shall include an educational component
            that promotes school readiness and incorporates
            preliteracy, language, and numeracy skills) for such
            children under this part until such children enter, or
            are eligible under State law to enter, kindergarten.
              (2) Requirements.--If a statewide system includes a
            State policy described in paragraph (1), the statewide
            system shall ensure--
                      (A) that parents of infants or toddlers with
                    disabilities (as defined in section 632(5)(A))
                    provide informed written consent to the State,
                    before such infants and toddlers reach 3 years
                    of age, as to whether such parents intend to
                    choose the continuation of early intervention
                    services pursuant to this subsection for such
                    infants or toddlers;
                      (B) that the State policy will not affect the
                    right of any child served pursuant to this
                    subsection to instead receive a free
                    appropriate public education under part B;
                      (C) that parents of children served pursuant
                    to this subsection are provided with annual
                    notice--
                              (i) of such parents' right to elect
                            services pursuant to this subsection or
                            under part B; and
                              (ii) fully explaining the differences
                            between receiving services pursuant to
                            this subsection and receiving services
                            under part B, including--
                                      (I) the types of services
                                    available under both
                                    provisions;
                                      (II) applicable procedural
                                    safeguards under both
                                    provisions, including due-
                                    process protections and
                                    mediation or other dispute
                                    resolution options; and
                                      (III) the possible costs, if
                                    any (including any fees to be
                                    charged to families as
                                    described in section 632(4)(B))
                                    to parents under both
                                    provisions;
                      (D) that the conference under section
                    637(a)(9)(A)(ii)(II), the review under section
                    637(a)(9)(B), and the establishment of a
                    transition plan under section 637(a)(9)(C)
                    occur not less than 90 days (and at the
                    discretion of the parties to the conference,
                    not more than 9 months) before each of the
                    following:
                              (i) the time the child will first be
                            eligible for services under part B,
                            including under section 619; and
                              (ii) if the child is receiving
                            services in accordance with this
                            subsection, the time the child will no
                            longer receive those services;
                      (E) the continuance of all early intervention
                    services outlined in the child's individualized
                    family service plan under section 636 while any
                    eligibility determination is being made for
                    services under this subsection;
                      (F) that services provided pursuant to this
                    subsection include an educational component
                    that promotes school readiness and incorporates
                    preliteracy, language, and numeracy skills and
                    are provided in accordance with an
                    individualized family service plan under
                    section 636; and
                      (G) the referral for evaluation for early
                    intervention services of a child below the age
                    of 3 who experiences a substantiated case of
                    exposure to violence or trauma.
              (3) Reporting requirement.--If a statewide system
            includes a State policy described in paragraph (1), the
            State shall submit to the Secretary, in the State's
            report under section 637(b)(4)(A), a report on--
                      (A) the percentage of children with
                    disabilities who are eligible for services
                    under section 619 but whose parents choose for
                    such children to continue to receive early
                    intervention services under this part; and
                      (B) the number of children who are eligible
                    for services under section 619 who instead
                    continue to receive early intervention services
                    under this part.
              (4) Rule of construction.--Nothing in this subsection
            shall be construed to require a provider of services
            under this part to provide a child served under this
            part with a free appropriate public education.
              (5) Available funds.--If a statewide system includes
            a State policy described in paragraph (1), the policy
            shall describe the funds (including an identification
            as Federal, State, or local funds) that will be used to
            ensure that the option described in paragraph (1) is
            available to eligible children and families who provide
            the consent described in paragraph (2)(A), including
            fees to be charged to families as described in section
            632(4)(B).

    SEC. 636. INDIVIDUALIZED FAMILY SERVICE PLAN.

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

    SEC. 637. STATE APPLICATION AND ASSURANCES.

      (a) Application.--A State desiring to receive a grant under
    section 633 shall submit an application to the Secretary at
    such time and in such manner as the Secretary may reasonably
    require. The application shall contain--
              (1) a designation of the lead agency in the State
            that will be responsible for the administration of
            funds provided under section 633;
              (2) a certification to the Secretary that the
            arrangements to establish financial responsibility for
            services provided under this part pursuant to section
            640(b) are current as of the date of submission of the
            certification;
              (3) information demonstrating eligibility of the
            State under section 634, including--
                      (A) information demonstrating to the
                    Secretary's satisfaction that the State has in
                    effect the statewide system required by section
                    633; and
                      (B) a description of services to be provided
                    to infants and toddlers with disabilities and
                    their families through the system;
              (4) if the State provides services to at-risk infants
            and toddlers through the system, a description of such
            services;
              (5) a description of the uses for which funds will be
            expended in accordance with this part;
              (6) a description of the State policies and
            procedures that require the referral for evaluation for
            early intervention services of a child under the age of
            3 who--
                      (A) is involved in a substantiated case of
                    child abuse or neglect; or
                      (B) is identified as affected by illegal
                    substance abuse, or withdrawal symptoms
                    resulting from prenatal drug exposure;
              (7) a description of the procedure used to ensure
            that resources are made available under this part for
            all geographic areas within the State;
              (8) a description of State policies and procedures
            that ensure that, prior to the adoption by the State of
            any other policy or procedure necessary to meet the
            requirements of this part, there are public hearings,
            adequate notice of the hearings, and an opportunity for
            comment available to the general public, including
            individuals with disabilities and parents of infants
            and toddlers with disabilities;
              (9) a description of the policies and procedures to
            be used--
                      (A) to ensure a smooth transition for
                    toddlers receiving early intervention services
                    under this part (and children receiving those
                    services under section 635(b)) to preschool,
                    other appropriate services, or exiting the
                    program, including a description of how--
                              (i) the families of such toddlers and
                            children will be included in the
                            transition plans required by
                            subparagraph (C); and
                              (ii) the lead agency designated or
                            established under section 635(a)(10)
                            will--
                                      (I) notify the local
                                    educational agency for the area
                                    in which such a child resides
                                    that the child will shortly
                                    reach the age of eligibility
                                    for preschool services under
                                    part B, as determined in
                                    accordance with State law;
                                      (II) in the case of a child
                                    who may be eligible for such
                                    preschool services, with the
                                    approval of the family of the
                                    child, convene a conference
                                    among the lead agency, the
                                    family, and the local
                                    educational agency at least 90
                                    days (and at the discretion of
                                    all such parties, not more than
                                    9 months) before the child is
                                    eligible for the preschool
                                    services, to discuss any such
                                    services that the child may
                                    receive; and
                                      (III) in the case of a child
                                    who may not be eligible for
                                    such preschool services, with
                                    the approval of the family,
                                    make reasonable efforts to
                                    convene a conference among the
                                    lead agency, the family, and
                                    providers of other appropriate
                                    services for children who are
                                    not eligible for preschool
                                    services under part B, to
                                    discuss the appropriate
                                    services that the child may
                                    receive;
                      (B) to review the child's program options for
                    the period from the child's third birthday
                    through the remainder of the school year; and
                      (C) to establish a transition plan,
                    including, as appropriate, steps to exit from
                    the program; and
              (10) such other information and assurances as the
            Secretary may reasonably require.
      (b) Assurances.--The application described in subsection
    (a)--
              (1) shall provide satisfactory assurance that Federal
            funds made available under section 643 to the State
            will be expended in accordance with this part;
              (2) shall contain an assurance that the State will
            comply with the requirements of section 640;
              (3) shall provide satisfactory assurance that the
            control of funds provided under section 643, and title
            to property derived from those funds, will be in a
            public agency for the uses and purposes provided in
            this part and that a public agency will administer such
            funds and property;
              (4) shall provide for--
                      (A) making such reports in such form and
                    containing such information as the Secretary
                    may require to carry out the Secretary's
                    functions under this part; and
                      (B) keeping such reports and affording such
                    access to the reports as the Secretary may find
                    necessary to ensure the correctness and
                    verification of the reports and proper
                    disbursement of Federal funds under this part;
              (5) provide satisfactory assurance that Federal funds
            made available under section 643 to the State--
                      (A) will not be commingled with State funds;
                    and
                      (B) will be used so as to supplement the
                    level of State and local funds expended for
                    infants and toddlers with disabilities and
                    their families and in no case to supplant those
                    State and local funds;
              (6) shall provide satisfactory assurance that such
            fiscal control and fund accounting procedures will be
            adopted as may be necessary to ensure proper
            disbursement of, and accounting 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 C,
    as in effect before the date of enactment of the Individuals
    with Disabilities Education Improvement Act of 2003, the
    Secretary shall consider the State to have met the requirement
    for purposes of receiving a grant under this part.
      (e) Modification of Application.--An application submitted by
    a State in accordance with this section shall remain in effect
    until the State submits to the Secretary such modifications as
    the State determines necessary. This section shall apply to a
    modification of an application to the same extent and in the
    same manner as this section applies to the original
    application.
      (f) Modifications Required by the Secretary.--The Secretary
    may require a State to modify its application under this
    section, but only to the extent necessary to ensure the State's
    compliance with this part, if--
              (1) an amendment is made to this Act, or a Federal
            regulation issued under this Act;
              (2) a new interpretation of this Act is made by a
            Federal court or the State's highest court; or
              (3) an official finding of noncompliance with Federal
            law or regulations is made with respect to the State.

    SEC. 638. USES OF FUNDS.

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

    SEC. 639. PROCEDURAL SAFEGUARDS.

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

    SEC. 640. PAYOR OF LAST RESORT.

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

    SEC. 641. STATE INTERAGENCY COORDINATING COUNCIL.

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

    SEC. 642. FEDERAL ADMINISTRATION.

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

    SEC. 643. ALLOCATION OF FUNDS.

      (a) Reservation of Funds for Outlying Areas.--
              (1) In general.--From the sums appropriated to carry
            out this part for any fiscal year, the Secretary may
            reserve not more than 1 percent for payments to Guam,
            American Samoa, the United States Virgin Islands, and
            the Commonwealth of the Northern Mariana Islands in
            accordance with their respective needs.
              (2) Consolidation of funds.--The provisions of Public
            Law 95-134, permitting the consolidation of grants to
            the outlying areas, shall not apply to funds those
            areas receive under this part.
      (b) Payments to Indians.--
              (1) In general.--The Secretary shall, subject to this
            subsection, make payments to the Secretary of the
            Interior to be distributed to tribes, tribal
            organizations (as defined under section 4 of the Indian
            Self-Determination and Education Assistance Act), or
            consortia of the above entities for the coordination of
            assistance in the provision of early intervention
            services by the States to infants and toddlers with
            disabilities and their families on reservations served
            by elementary schools and secondary schools for Indian
            children operated or funded by the Department of the
            Interior. The amount of such payment for any fiscal
            year shall be 1.25 percent of the aggregate of the
            amount available to all States under this part for such
            fiscal year.
              (2) Allocation.--For each fiscal year, the Secretary
            of the Interior shall distribute the entire payment
            received under paragraph (1) by providing to each
            tribe, tribal organization, or consortium an amount
            based on the number of infants and toddlers residing on
            the reservation, as determined annually, divided by the
            total of such children served by all tribes, tribal
            organizations, or consortia.
              (3) Information.--To receive a payment under this
            subsection, the tribe, tribal organization, or
            consortium shall submit such information to the
            Secretary of the Interior as is needed to determine the
            amounts to be distributed under paragraph (2).
              (4) Use of funds.--The funds received by a tribe,
            tribal organization, or consortium shall be used to
            assist States in child find, screening, and other
            procedures for the early identification of Indian
            children under 3 years of age and for parent training.
            Such funds may also be used to provide early
            intervention services in accordance with this part.
            Such activities may be carried out directly or through
            contracts or cooperative agreements with the BIA, local
            educational agencies, and other public or private
            nonprofit organizations. The tribe, tribal
            organization, or consortium is encouraged to involve
            Indian parents in the development and implementation of
            these activities. The above entities shall, as
            appropriate, make referrals to local, State, or Federal
            entities for the provision of services or further
            diagnosis.
              (5) Reports.--To be eligible to receive a grant under
            paragraph (2), a tribe, tribal organization, or
            consortium shall make a biennial report to the
            Secretary of the Interior of activities undertaken
            under this subsection, including the number of
            contracts and cooperative agreements entered into, the
            number of children contacted and receiving services for
            each year, and the estimated number of children needing
            services during the 2 years following the year in which
            the report is made. The Secretary of the Interior shall
            include a summary of this information on a biennial
            basis to the Secretary of Education along with such
            other information as required under section
            611(h)(3)(E). The Secretary of Education may require
            any additional information from the Secretary of the
            Interior.
              (6) Prohibited uses of funds.--None of the funds
            under this subsection may be used by the Secretary of
            the Interior for administrative purposes, including
            child count, and the provision of technical assistance.
      (c) State Allotments.--
              (1) In general.--Except as provided in paragraphs (2)
            and (3), from the funds remaining for each fiscal year
            after the reservation and payments under subsections
            (a), (b), and (e), the Secretary shall first allot to
            each State an amount that bears the same ratio to the
            amount of such remainder as the number of infants and
            toddlers in the State bears to the number of infants
            and toddlers in all States.
              (2) Minimum allotments.--Except as provided in
            paragraph (3), no State shall receive an amount under
            this section for any fiscal year that is less than the
            greater of--
                      (A) \1/2\ of 1 percent of the remaining
                    amount described in paragraph (1); or
                      (B) $500,000.
              (3) Ratable reduction.--
                      (A) In general.--If the sums made available
                    under this part for any fiscal year are
                    insufficient to pay the full amounts that all
                    States are eligible to receive under this
                    subsection for such year, the Secretary shall
                    ratably reduce the allotments to such States
                    for such year.
                      (B) Additional funds.--If additional funds
                    become available for making payments under this
                    subsection for a fiscal year, allotments that
                    were reduced under subparagraph (A) shall be
                    increased on the same basis the allotments were
                    reduced.
              (4) Definitions.--For the purpose of this
            subsection--
                      (A) the terms ``infants'' and ``toddlers''
                    mean children under 3 years of age; and
                      (B) the term ``State'' means each of the 50
                    States, the District of Columbia, and the
                    Commonwealth of Puerto Rico.
      (d) Reallotment of Funds.--If a State elects not to receive
    its allotment under subsection (c), the Secretary shall
    reallot, among the remaining States, amounts from such State in
    accordance with such subsection.
      (e) Reservation for State Bonus Grants.--The Secretary shall
    reserve 10 percent of the amount by which the amount
    appropriated under section 644 for any fiscal year exceeds
    $434,159,000 to make allotments to States that are carrying out
    the policy described in section 635(b), in accordance with the
    formula described in subsection (c)(1) without regard to
    subsections (c) (2) and (3).

    SEC. 644. AUTHORIZATION OF APPROPRIATIONS.

      For the purpose of carrying out this part, there are
    authorized to be appropriated such sums as may be necessary for
    each of the fiscal years 2004 through 2009.

               *       *       *       *       *       *       *

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

        [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
                    675(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) Eligibile 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) Reportng 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, andidentify 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 Education 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--
              [(1) is consistent with the purposes of chapter 1,
            chapter 2, or both; and
              [(2) involves--
                      [(A) research;
                      [(B) personnel preparation;
                      [(C) parent training and information;
                      [(D) technical assistance and dissemination;
                      [(E) technology development, demonstration,
                    and utilization; or
                      [(F) 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 requirements of subparagraph
                    (A).
        [(e) Priorities.--
              [(1) In general.--Except as otherwise explicitly
            authorized in this subpart, the Secretary shall ensure
            that a grant, contract, or cooperative agreement under
            chapter 1 or 2 is awarded only--
                      [(A) for activities that are designed to
                    benefit children with disabilities, their
                    families, or the personnel employed to work
                    with such children or their families; or
                      [(B) to benefit other individuals with
                    disabilities that such chapter is intended to
                    benefit.
              [(2) Priority for particular activities.--Subject to
            paragraph (1), the Secretary, in making an award of a
            grant, contract, or cooperative agreement under this
            subpart, may, without regard to the rule making \1\
            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 appropriated 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 cary 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 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 and non-federal panel
                    members.--The Secretary may use funds available
                    under this subpart to pay the expenses and fees
                    of the panel members who are not officers or
                    employees of the Federal Government.
                      [(B) Administrative support.--The Secretary
                    may use not more than 1 percent of the funds
                    appropriated to carry out this subpart to pay
                    non-Federal entities for administrative support
                    related to management of applications submitted
                    under this subpart.
                      [(C) Monitoring.--The Secretary may use funds
                    available under this subpart to pay the
                    expenses of Federal employees to conduct on-
                    site monitoring of projects receiving $500,000
                    or more for any fiscal year under this subpart.
        [(h) Program Evaluation.--The Secretary may use funds
    appropriated to carry out this subpart to evaluate activities
    carried out under the subpart.
        [(i) Minimum Funding Required.--
              [(1) In general.--Subject to paragraph (2), the
            Secretary shall ensure that, for each fiscal year, at
            least the following amounts are provided under this
            subpart to address the following needs:
                      [(A) $12,832,000 to address the educational,
                    related services, transitional, and early
                    intervention needs of children with deaf-
                    blindness.
                      [(B) $4,000,000 to address the postsecondary,
                    vocational, technical, continuing, and adult
                    education needs of individuals with deafness.
                      [(C) $4,000,000 to address the educational,
                    related services, and transitional needs of
                    children with an emotional disturbance and
                    those who are at risk of developing an
                    emotional disturbance.
              [(2) Ratable reduction.--If the total amount
            appropriated to carry out sections 672, 673, and 685
            for any fiscal year is less than $130,000,000, the
            amounts listed in paragraph (1) shall be ratably
            reduced.
        [(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 3 through 5, 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
                    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, out-reach, and personnel-preparation activities
    that--
              [(1) are described in sections 672 through 675;
              [(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 infantsand 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) Intergration 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 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 pesonnel 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 ot 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 subject 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
                                      [(III) 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 incollaboration 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
            section (d), shall include an assurance that the
            applicant will ensure that individuals who receive a
            scholarship under the proposed project will
            subsequently provide a 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
                                    secoindary 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 behavior 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 to--
              [(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, contacts, 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.
        [(d) 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 appropriatedunder 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 interventions,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 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 decision making 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 the area served by the center,
            particularly undeserved 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 decision making 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 early
                    intervention services to, children with
                    disabilities; and
                      [(F) participate in school reform activities;
              [(5) in State 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 in 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 education
                    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 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 2003.

    [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
            text-books, 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.]

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

    SEC. 650. FINDINGS.

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

      Subpart 1--State Personnel Preparation and Professional Development
                                     Grants

    SEC. 651. PURPOSE; DEFINITION; PROGRAM AUTHORITY.

      (a) Purpose.--The purpose of this subpart is to assist State
    educational agencies in reforming and improving their systems
    for personnel preparation and professional development in early
    intervention, educational, and transition services in order to
    improve results for children with disabilities.
      (b) Definition.--In this subpart, the term ``personnel''
    means special education teachers, regular education teachers,
    principals, administrators, related services personnel,
    paraprofessionals, and early intervention personnel serving
    infants, toddlers, preschoolers, or children with disabilities,
    except where a particular category of personnel, such as
    related services personnel, is identified.
      (c) Competitive Grants.--
              (1) In general.--Except as provided in subsection
            (d), for any fiscal year for which the amount
            appropriated under section 655, that remains after the
            Secretary reserves funds under subsection (e) for the
            fiscal year, is less than $100,000,000, the Secretary
            shall award grants, on a competitive basis, to State
            educational agencies to carry out the activities
            described in the State plan submitted under section
            653.
              (2) Priority.--In awarding grants under paragraph
            (1), the Secretary may give priority to State
            educational agencies that--
                      (A) are in States with the greatest personnel
                    shortages; or
                      (B) demonstrate the greatest difficulty
                    meeting the requirements of section 612(a)(14).
              (3) Minimum.--The Secretary shall make a grant to
            each State educational agency selected under paragraph
            (1) in an amount for each fiscal year that is--
                      (A) not less than $500,000, nor more than
                    $4,000,000, in the case of the 50 States, the
                    District of Columbia, and the Commonwealth of
                    Puerto Rico; and
                      (B) not less than $80,000 in the case of an
                    outlying area.
              (4) Increases.--The Secretary may increase the
            amounts under in paragraph (3) to account for
            inflation.
              (5) Factors.--The Secretary shall set the amount of
            each grant under paragraph (1) after considering--
                      (A) the amount of funds available for making
                    the grants;
                      (B) the relative population of the State or
                    outlying area;
                      (C) the types of activities proposed by the
                    State or outlying area;
                      (D) the alignment of proposed activities with
                    section 612(a)(14);
                      (E) the alignment of proposed activities with
                    the State plans and applications submitted
                    under sections 1111 and 2112, respectively, of
                    the Elementary and Secondary Education Act of
                    1965; and
                      (F) the use, as appropriate, of
                    scientifically based activities.
      (d) Formula Grants.--
              (1) In general.--Except as provided in paragraphs (2)
            and (3), for the first fiscal year for which the amount
            appropriated under section 655, that remains after the
            Secretary reserves funds under subsection (e) for the
            fiscal year, is equal to or greater than $100,000,000,
            and for each fiscal year thereafter, the Secretary
            shall allot to each State educational agency, whose
            application meets the requirements of this subpart, an
            amount that bears the same relation to the amount
            appropriated as the amount the State received under
            section 611(d) for that fiscal year bears to the amount
            of funds received by all States (whose applications
            meet the requirements of this subpart) under section
            611(d) for that fiscal year.
              (2) Minimum allotments for states that received
            competitive grants.--
                      (A) In general.--The amount allotted under
                    this subsection to any State that received a
                    competitive multi-year grant under subsection
                    (c) for which the grant period has not expired
                    shall be at least the amount specified for that
                    fiscal year in the State's grant award document
                    under that subsection.
                      (B) Special rule.--Each such State shall use
                    the minimum amount described in subparagraph
                    (A) for the activities described in its
                    competitive grant award document for that year,
                    unless the Secretary approves a request from
                    the State to spend the funds on other
                    activities.
              (3) Minimum allotment.--The amount of any State
            educational agency's allotment under this subsection
            for any fiscal year shall not be less than--
                      (A) the greater of $500,000 or \1/2\ of 1
                    percent of the total amount available under
                    this subsection for that year, in the case of
                    each of the 50 States, the District of
                    Columbia, and the Commonwealth of Puerto Rico;
                    and
                      (B) $80,000, in the case of an outlying area.
      (e) Continuation Awards.--
              (1) In general.--Notwithstanding any other provision
            of this subpart, from funds appropriated under section
            655 for each fiscal year, the Secretary shall reserve
            the amount that is necessary to make a continuation
            award to any State (at the request of the State) that
            received a multi-year award under this part (as this
            part was in effect on the day before the date of
            enactment of the Individuals with Disabilities
            Education Improvement Act of 2003), to enable the State
            to carry out activities in accordance with the terms of
            the multi-year award.
              (2) Prohibition.--A State that receives a
            continuation award under paragraph (1) for any fiscal
            year may not receive any other award under this subpart
            for that fiscal year.

    SEC. 652. ELIGIBILITY AND COLLABORATIVE PROCESS.

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

    SEC. 653. APPLICATIONS.

      (a) In General.--
              (1) Submission.--A State educational agency that
            desires to receive a grant under this subpart shall
            submit to the Secretary an application at such time, in
            such manner, and including such information as the
            Secretary may require.
              (2) State plan.--The application shall include a plan
            that identifies and addresses the State and local needs
            for the personnel preparation and professional
            development of administrators, principals, and
            teachers, as well as individuals who provide direct
            supplementary aids and services to children with
            disabilities, and that--
                      (A) is designed to enable the State to meet
                    the requirements of section 612(a)(14) and
                    section 635(a) (8) and (9);
                      (B) is based on an assessment of State and
                    local needs that identifies critical aspects
                    and areas in need of improvement related to the
                    preparation, ongoing training, and professional
                    development of personnel that serve infants,
                    toddlers, preschoolers, and children with
                    disabilities within the State, including--
                              (i) current and anticipated personnel
                            vacancies and shortages; and
                              (ii) the number of preservice
                            programs; and
                      (C) is integrated and aligned, to the maximum
                    extent possible, with State plans and
                    activities under the Elementary and Secondary
                    Education Act of 1965, the Rehabilitation Act
                    of 1973, and the Higher Education Act of 1965.
              (3) Requirement.--The State application shall contain
            an assurance that the State educational agency will
            carry out each of the strategies described in
            subsection (b)(4).
      (b) Elements of State Personnel Preparation and Professional
    Development Plan.--Each professional development plan under
    subsection (a)(2) shall--
              (1) describe a partnership agreement that is in
            effect for the period of the grant, which agreement
            shall specify--
                      (A) the nature and extent of the partnership
                    described in section 652(b) and the respective
                    roles of each member of the partnership,
                    including the partner described in section
                    652(b)(3) if applicable; and
                      (B) how the State will work with other
                    persons and organizations involved in, and
                    concerned with, the education of children with
                    disabilities, including the respective roles of
                    each of the persons and organizations;
              (2) describe how the strategies and activities
            described in paragraph (4) will be coordinated with
            other public resources (including part B and part C
            funds retained for use at the State level for personnel
            and professional development purposes) and private
            resources;
              (3) describe how the State will align its
            professional development plan under this subpart with
            the plan and application submitted under sections 1111
            and 2112, respectively, of the Elementary and Secondary
            Education Act of 1965;
              (4) describe what strategies the State will use to
            address the professional development and personnel
            needs identified under subsection (a)(2) and how those
            strategies will be implemented, including--
                      (A) a description of the preservice and
                    inservice programs and activities to be
                    supported under this subpart that will provide
                    personnel with the knowledge and skills to meet
                    the needs of, and improve the performance and
                    achievement of, infants, toddlers,
                    preschoolers, and children with disabilities;
                    and
                      (B) how such strategies shall be integrated,
                    to the maximum extent possible, with other
                    activities supported by grants funded under
                    this part, including those under section 664;
              (5) provide an assurance that the State will provide
            technical assistance to local educational agencies to
            improve the quality of professional development
            available to meet the needs of personnel who serve
            children with disabilities;
              (6) provide an assurance that the State will provide
            technical assistance to entities that provide services
            to infants and toddlers with disabilities to improve
            the quality of professional development available to
            meet the needs of personnel serving such children;
              (7) describe how the State will recruit and retain
            highly qualified teachers and other qualified personnel
            in geographic areas of greatest need;
              (8) describe the steps the State will take to ensure
            that poor and minority children are not taught at
            higher rates by teachers who are not highly qualified;
            and
              (9) describe how the State will assess, on a regular
            basis, the extent to which the strategies implemented
            under this subpart have been effective in meeting the
            performance goals described in section 612(a)(15).
      (c) Peer Review.--
              (1) In general.--The Secretary shall use a panel of
            experts who are competent, by virtue of their training,
            expertise, or experience, to evaluate applications for
            grants under section 651(c)(1).
              (2) Composition of panel.--A majority of a panel
            described in paragraph (1) shall be composed of
            individuals who are not employees of the Federal
            Government.
              (3) Payment of fees and expenses of certain
            members.--The Secretary may use available funds
            appropriated to carry out this subpart to pay the
            expenses and fees of panel members who are not
            employees of the Federal Government.
      (d) Reporting Procedures.--Each State educational agency that
    receives a grant under this subpart shall submit annual
    performance reports to the Secretary. The reports shall
    describe the progress of the State in implementing its plan and
    analyze the effectiveness of the State's activities under this
    subpart.

    SEC. 654. USE OF FUNDS.

      (a) Professional Development Activities.--A State educational
    agency that receives a grant under this subpart shall use the
    grant funds to support activities in accordance with the
    State's plan described in section 653, including 1 or more of
    the following:
              (1) Carrying out programs that provide support to
            both special education and regular education teachers
            of children with disabilities and principals, such as
            programs that--
                      (A) provide teacher mentoring, team teaching,
                    reduced class schedules and case loads, and
                    intensive professional development; and
                      (B) use standards or assessments for guiding
                    beginning teachers that are consistent with
                    challenging State student academic achievement
                    and functional standards and with the
                    requirements for professional development as
                    defined in section 9101(34) of the Elementary
                    and Secondary Education Act of 1965.
              (2) Encouraging and supporting the training of
            special education and regular education teachers and
            administrators to effectively use and integrate
            technology--
                      (A) into curricula and instruction, including
                    training to improve the ability to collect,
                    manage, and analyze data to improve teaching,
                    decisionmaking, school improvement efforts, and
                    accountability;
                      (B) to enhance learning by children with
                    disabilities; and
                      (C) to effectively communicate with parents.
              (3) Providing professional development activities
            that--
                      (A) improve the knowledge of special
                    education and regular education teachers
                    concerning--
                              (i) the academic and developmental or
                            functional needs of students with
                            disabilities; or
                              (ii) effective instructional
                            strategies, methods, and skills, and
                            the use of State academic content
                            standards and student academic
                            achievement and functional standards,
                            and State assessments, to improve
                            teaching practices and student academic
                            achievement;
                      (B) improve the knowledge of special
                    education and regular education teachers and
                    principals and, in appropriate cases,
                    paraprofessionals, concerning effective
                    instructional practices and that--
                              (i) provide training in how to teach
                            and address the needs of children with
                            different learning styles and children
                            with limited English proficiency;
                              (ii) involve collaborative groups of
                            teachers and administrators;
                              (iii) provide training in methods
                            of--
                                      (I) positive behavioral
                                    interventions and supports to
                                    improve student behavior in the
                                    classroom;
                                      (II) scientifically based
                                    reading instruction, including
                                    early literacy instruction;
                                      (III) early and appropriate
                                    interventions to identify and
                                    help children with
                                    disabilities;
                                      (IV) effective instruction
                                    for children with low incidence
                                    disabilities;
                                      (V) successful transitioning
                                    to postsecondary opportunities;
                                    and
                                      (VI) using classroom-based
                                    techniques to assist children
                                    prior to referral for special
                                    education;
                              (iv) provide training to enable
                            personnel to work with and involve
                            parents in their child's education,
                            including parents of low income and
                            limited English proficient children
                            with disabilities;
                              (v) provide training for special
                            education personnel and regular
                            education personnel in planning,
                            developing, and implementing effective
                            and appropriate IEPs; and
                              (vi) providing training to meet the
                            needs of students with significant
                            health, mobility, or behavioral needs
                            prior to serving such students; and
                      (C) train administrators, principals, and
                    other relevant school personnel in conducting
                    effective IEP meetings.
              (4) Developing and implementing initiatives to
            promote the recruitment and retention of highly
            qualified special education teachers, particularly
            initiatives that have been proven effective in
            recruitment and retaining highly qualified teachers,
            including programs that provide--
                      (A) teacher mentoring from exemplary special
                    education teachers, principals, or
                    superintendents;
                      (B) induction and support for special
                    education teachers during their first 3 years
                    of employment as teachers; or
                      (C) incentives, including financial
                    incentives, to retain special education
                    teachers who have a record of success in
                    helping students with disabilities.
              (5) Carrying out programs and activities that are
            designed to improve the quality of personnel who serve
            children with disabilities, such as--
                      (A) innovative professional development
                    programs (which may be provided through
                    partnerships that include institutions of
                    higher education), including programs that
                    train teachers and principals to integrate
                    technology into curricula and instruction to
                    improve teaching, learning, and technology
                    literacy, which professional development shall
                    be consistent with the definition of
                    professional development in section 9101(34) of
                    the Elementary and Secondary Education Act of
                    1965; and
                      (B) the development and use of proven, cost
                    effective strategies for the implementation of
                    professional development activities, such as
                    through the use of technology and distance
                    learning.
              (6) Carrying out programs and activities that are
            designed to improve the quality of early intervention
            personnel, including paraprofessionals and primary
            referral sources, such as--
                      (A) professional development programs to
                    improve the delivery of early intervention
                    services;
                      (B) initiatives to promote the recruitment
                    and retention of early intervention personnel;
                    and
                      (C) interagency activities to ensure that
                    personnel are adequately prepared and trained.
      (b) Other Activities.--A State educational agency that
    receives a grant under this subpart shall use the grant funds
    to support activities in accordance with the State's plan
    described in section 653, including 1 or more of the following:
              (1) Reforming special education and regular education
            teacher certification (including recertification) or
            licensing requirements to ensure that--
                      (A) special education and regular education
                    teachers have--
                              (i) the training and information
                            necessary to address the full range of
                            needs of children with disabilities
                            across disability categories; and
                              (ii) the necessary subject matter
                            knowledge and teaching skills in the
                            academic subjects that they teach;
                      (B) special education and regular education
                    teacher certification (including
                    recertification) or licensing requirements are
                    aligned with challenging State academic content
                    standards; and
                      (C) special education and regular education
                    teachers have the subject matter knowledge and
                    teaching skills, including technology literacy,
                    necessary to help students with disabilities
                    meet challenging State student academic
                    achievement and functional standards.
              (2) Programs that establish, expand, or improve
            alternative routes for State certification of special
            education teachers for highly qualified individuals
            with a baccalaureate or master's degree, including mid-
            career professionals from other occupations,
            paraprofessionals, and recent college or university
            graduates with records of academic distinction who
            demonstrate the potential to become highly effective
            special education teachers.
              (3) Teacher advancement initiatives for special
            education teachers that promote professional growth and
            emphasize multiple career paths (such as paths to
            becoming a career teacher, mentor teacher, or exemplary
            teacher) and pay differentiation.
              (4) Developing and implementing mechanisms to assist
            local educational agencies and schools in effectively
            recruiting and retaining highly qualified special
            education teachers.
              (5) Reforming tenure systems, implementing teacher
            testing for subject matter knowledge, and implementing
            teacher testing for State certification or licensing,
            consistent with title II of the Higher Education Act of
            1965.
              (6) Funding projects to promote reciprocity of
            teacher certification or licensing between or among
            States for special education teachers, except that no
            reciprocity agreement developed under this paragraph or
            developed using funds provided under this subpart may
            lead to the weakening of any State teaching
            certification or licensing requirement.
              (7) Developing or assisting local educational
            agencies to serve children with disabilities through
            the development and use of proven, innovative
            strategies to deliver intensive professional
            development programs that are both cost effective and
            easily accessible, such as strategies that involve
            delivery through the use of technology, peer networks,
            and distance learning.
              (8) Developing, or assisting local educational
            agencies in developing, merit based performance
            systems, and strategies that provide differential and
            bonus pay for special education teachers.
              (9) Supporting activities that ensure that teachers
            are able to use challenging State academic content
            standards and student academic and functional
            achievement standards, and State assessments for all
            children with disabilities, to improve instructional
            practices and improve the academic achievement of
            children with disabilities.
              (10) When applicable, coordinating with, and
            expanding centers established under, section
            2113(c)(18) of the Elementary and Secondary Education
            Act of 1965 to benefit special education teachers.
      (c) Contracts and Subgrants.--Each such State educational
    agency--
              (1) shall award contracts or subgrants to local
            educational agencies, institutions of higher education,
            parent training and information centers, or community
            parent resource centers, as appropriate, to carry out
            its State plan under this subpart; and
              (2) may award contracts and subgrants to other public
            and private entities, including the lead agency under
            part C, to carry out such plan.
      (d) Use of Funds for Professional Development.--A State
    educational agency that receives a grant under this subpart
    shall use--
              (1) not less than 75 percent of the funds the State
            educational agency receives under the grant for any
            fiscal year for activities under subsection (a); and
              (2) not more than 25 percent of the funds the State
            educational agency receives under the grant for any
            fiscal year for activities under subsection (b).
      (e) Grants to Outlying Areas.--Public Law 95-134, permitting
    the consolidation of grants to the outlying areas, shall not
    apply to funds received under this subpart.

    SEC. 655. AUTHORIZATION OF APPROPRIATIONS.

      There are authorized to be appropriated to carry out this
    subpart such sums as may be necessary for each of the fiscal
    years 2004 through 2009.

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

    SEC. 660. PURPOSE.

      The purpose of this subpart is--
              (1) to provide Federal funding for scientifically
            based research, technical assistance, model
            demonstration projects, and information dissemination
            to improve early intervention, educational, and
            transitional results for children with disabilities;
            and
              (2) to assist State educational agencies and local
            educational agencies in improving their education
            systems.

    SEC. 661. ADMINISTRATIVE PROVISIONS.

      (a) Comprehensive Plan.--
              (1) In general.--After receiving input from
            interested individuals with relevant expertise, the
            Secretary shall develop and implement a comprehensive
            plan for activities carried out under this subpart
            (other than activities assisted under section 665 and
            subpart 3) in order to enhance the provision of early
            intervention, educational, related and transitional
            services to children with disabilities under parts B
            and C. The plan shall be coordinated with the plan
            developed pursuant to section 177(c) of the Education
            Sciences Reform Act of 2002 and shall include
            mechanisms to address early intervention, educational,
            related service and transitional needs identified by
            State educational agencies in applications submitted
            for State Personnel and Professional Development grants
            under subpart 1 and for grants under this subpart.
              (2) Public comment.--The Secretary shall provide a
            public comment period of at least 60 days on the plan.
              (3) Distribution of funds.--In implementing the plan,
            the Secretary shall, to the extent appropriate, ensure
            that funds are awarded to recipients under this
            subpart, subpart 3, and subpart 4 to carry out
            activities that benefit, directly or indirectly,
            children with the full range of disabilities and of all
            ages.
              (4) Reports to congress.--The Secretary shall
            annually report to Congress on the Secretary's
            activities under this subpart, subpart 3, and subpart
            4, including an initial report not later than 12 months
            after the date of enactment of the Individuals with
            Disabilities Education Improvement Act of 2003.
      (b) Eligible Applicants.--
              (1) In general.--Except as otherwise provided in this
            subpart, the following entities are eligible to apply
            for a grant, contract, or cooperative agreement under
            this subpart:
                      (A) A State educational agency.
                      (B) A local educational agency.
                      (C) A public charter school that is a local
                    educational agency under State law.
                      (D) An institution of higher education.
                      (E) Any other public agency.
                      (F) A private nonprofit organization.
                      (G) An outlying area.
                      (H) An Indian tribe or a tribal organization
                    (as defined under section 4 of the Indian Self-
                    Determination and Education Assistance Act).
                      (I) A for-profit organization.
              (2) Special rule.--The Secretary may limit the
            entities eligible for an award of a grant, contract, or
            cooperative agreement to 1 or more categories of
            eligible entities described in paragraph (1).
      (c) Special Populations.--
              (1) Application requirement.--In making an award of a
            grant, contract, or cooperative agreement under this
            subpart, subpart 3, and subpart 4, the Secretary shall,
            as appropriate, require an applicant to meet the
            criteria set forth by the Secretary under this subpart
            and demonstrate how the applicant will address the
            needs of children with disabilities from minority
            backgrounds.
              (2) Outreach and technical assistance.--
            Notwithstanding any other provision of this Act, the
            Secretary shall reserve at least 1 percent of the total
            amount of funds made available to carry out this
            subpart, subpart 3, or subpart 4 for 1 or both of the
            following activities:
                      (A) To provide outreach and technical
                    assistance to Historically Black Colleges and
                    Universities, and to institutions of higher
                    education with minority enrollments of at least
                    25 percent, to promote the participation of
                    such colleges, universities, and institutions
                    in activities under this subpart.
                      (B) To enable Historically Black Colleges and
                    Universities, and the institutions described in
                    subparagraph (A), to assist other colleges,
                    universities, institutions, and agencies in
                    improving educational and transitional results
                    for children with disabilities.
      (d) Priorities.--The Secretary, in making an award of a
    grant, contract, or cooperative agreement under this subpart,
    subpart 3, or subpart 4, may, without regard to the rulemaking
    procedures under section 553(a) of title 5, United States Code,
    limit competitions to, or otherwise give priority to--
              (1) projects that address 1 or more--
                      (A) age ranges;
                      (B) disabilities;
                      (C) school grades;
                      (D) types of educational placements or early
                    intervention environments;
                      (E) types of services;
                      (F) content areas, such as reading; or
                      (G) effective strategies for helping children
                    with disabilities learn appropriate behavior in
                    the school and other community based
                    educational settings;
              (2) projects that address the needs of children based
            on the severity or incidence of their disability;
              (3) projects that address the needs of--
                      (A) low achieving students;
                      (B) underserved populations;
                      (C) children from low income families;
                      (D) limited English proficient children;
                      (E) unserved and underserved areas;
                      (F) rural or urban areas;
                      (G) children whose behavior interferes with
                    their learning and socialization;
                      (H) children with reading difficulties;
                      (I) children in charter schools; or
                      (J) children who are gifted and talented;
              (4) projects to reduce inappropriate identification
            of children as children with disabilities, particularly
            among minority children;
              (5) projects that are carried out in particular areas
            of the country, to ensure broad geographic coverage;
              (6) projects that promote the development and use of
            universally designed technologies, assistive technology
            devices, and assistive technology services to maximize
            children with disabilities' access to and participation
            in the general education curriculum; and
              (7) any activity that is authorized in this subpart
            or subpart 3.
      (e) Applicant and Recipient Responsibilities.--
              (1) Development and assessment of projects.--The
            Secretary shall require that an applicant for, and a
            recipient of, a grant, contract, or cooperative
            agreement for a project under this subpart, subpart 3,
            or subpart 4--
                      (A) involve individuals with disabilities or
                    parents of individuals with disabilities ages
                    birth through 26 in planning, implementing, and
                    evaluating the project; and
                      (B) where appropriate, determine whether the
                    project has any potential for replication and
                    adoption by other entities.
              (2) Additional responsibilities.--The Secretary may
            require a recipient of a grant, contract, or
            cooperative agreement under this subpart, subpart 3, or
            subpart 4 to--
                      (A) share in the cost of the project;
                      (B) prepare any findings and products from
                    the project in formats that are useful for
                    specific audiences, including parents,
                    administrators, teachers, early intervention
                    personnel, related services personnel, and
                    individuals with disabilities;
                      (C) disseminate such findings and products;
                    and
                      (D) collaborate with other such recipients in
                    carrying out subparagraphs (B) and (C).
      (f) Application Management.--
              (1) Standing panel.--
                      (A) In general.--The Secretary shall
                    establish and use a standing panel of experts
                    who are competent, by virtue of their training,
                    expertise, or experience, to evaluate
                    applications under this subpart (other than
                    applications for assistance under section 665),
                    subpart 3, and subpart 4 that, individually,
                    request more than $75,000 per year in Federal
                    financial assistance.
                      (B) Membership.--The standing panel shall
                    include, at a minimum--
                              (i) individuals who are
                            representatives of institutions of
                            higher education that plan, develop,
                            and carry out high quality programs of
                            personnel preparation;
                              (ii) individuals who design and carry
                            out scientifically based research
                            targeted to the improvement of special
                            education programs and services;
                              (iii) individuals who have recognized
                            experience and knowledge necessary to
                            integrate and apply scientifically
                            based research findings to improve
                            educational and transitional results
                            for children with disabilities;
                              (iv) individuals who administer
                            programs at the State or local level in
                            which children with disabilities
                            participate;
                              (v) individuals who prepare parents
                            of children with disabilities to
                            participate in making decisions about
                            the education of their children;
                              (vi) individuals who establish
                            policies that affect the delivery of
                            services to children with disabilities;
                              (vii) parents of children with
                            disabilities ages birth through 26 who
                            are benefiting, or have benefited, from
                            coordinated research, personnel
                            preparation, and technical assistance;
                            and
                              (viii) individuals with disabilities.
                      (C) Term.--Unless approved by the Secretary
                    due to extenuating circumstances related to
                    shortages of experts in a particular area of
                    expertise or for a specific competition, no
                    individual shall serve on the standing panel
                    for more than 3 consecutive years.
              (2) Peer review panels for particular competitions.--
                      (A) Composition.--The Secretary shall ensure
                    that each sub panel selected from the standing
                    panel that reviews applications under this
                    subpart (other than section 665), subpart 3,
                    and subpart 4 includes--
                              (i) individuals with knowledge and
                            expertise on the issues addressed by
                            the activities authorized by the
                            relevant subpart; and
                              (ii) to the extent practicable,
                            parents of children with disabilities
                            ages birth through 26, individuals with
                            disabilities, and persons from diverse
                            backgrounds.
                      (B) Federal employment limitation.--A
                    majority of the individuals on each sub panel
                    that reviews an application under this subpart
                    (other than an application under section 665),
                    subpart 3, and subpart 4 shall be individuals
                    who are not employees of the Federal
                    Government.
              (3) Use of discretionary funds for administrative
            purposes.--
                      (A) Expenses and fees of non-federal panel
                    members.--The Secretary may use funds made
                    available under this subpart, subpart 3, and
                    subpart 4 to pay the expenses and fees of the
                    panel members who are not officers or employees
                    of the Federal Government.
                      (B) Administrative support.--The Secretary
                    may use not more than 1 percent of the funds
                    made available to carry out this subpart,
                    subpart 3, or subpart 4 to pay non-Federal
                    entities for administrative support related to
                    management of applications submitted under this
                    subpart.
              (4) Availability of certain products.--The Secretary
            shall ensure that recipients of grants, cooperative
            agreements, or contracts under this subpart, subpart 3,
            and subpart 4 make available in formats that are
            accessible to individuals with disabilities any
            products developed under such grants, cooperative
            agreements, or contracts that the recipient is making
            available to the public.
      (g) Program Evaluation.--The Secretary may use funds made
    available to carry out this subpart, subpart 3, and subpart 4
    to evaluate activities carried out under this subpart.
      (h) Minimum Funding Required.--
              (1) In general.--Subject to paragraph (2), the
            Secretary shall ensure that, for each fiscal year, at
            least the following amounts are provided under this
            subpart and subpart 3 to address the following needs:
                      (A) $12,832,000 to address the educational,
                    related services, transitional, and early
                    intervention needs of children with deaf-
                    blindness.
                      (B) $4,000,000 to address the postsecondary,
                    vocational, technical, continuing, and adult
                    education needs of individuals with deafness.
                      (C) $4,000,000 to address the educational,
                    related services, and transitional needs of
                    children with an emotional disturbance and
                    those who are at risk of developing an
                    emotional disturbance.
              (2) Ratable reduction.--If the total amount
            appropriated to carry out this subpart, subpart 3, and
            part E of the Education Sciences Reform Act of 2002 for
            any fiscal year is less than $130,000,000, the amounts
            listed in paragraph (1) shall be ratably reduced.
      (i) Eligibility for Financial Assistance.--No State or local
    educational agency, or other public institution or agency, may
    receive a grant or enter into a contract or cooperative
    agreement under this subpart that relates exclusively to
    programs, projects, and activities pertaining to children aged
    3 through 5, inclusive, unless the State is eligible to receive
    a grant under section 619(b).

    SEC. 662. RESEARCH COORDINATION TO IMPROVE RESULTS FOR CHILDREN WITH
                        DISABILITIES.

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

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

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

    SEC. 664. PERSONNEL DEVELOPMENT TO IMPROVE SERVICES AND RESULTS FOR
                        CHILDREN WITH DISABILITIES.

      (a) In General.--The Secretary, on a competitive basis, shall
    award grants to, or enter into contracts or cooperative
    agreements with, eligible entities for 1 or more of the
    following:
              (1) To help address the needs identified in the State
            plan described in section 653(a)(2) for highly
            qualified personnel, as defined in section 651(b), to
            work with infants, toddlers, or children with
            disabilities, consistent with the standards described
            in section 612(a)(14).
              (2) To ensure that those personnel have the necessary
            skills and knowledge, derived from practices that have
            been determined, through scientifically based research,
            to be successful in serving those children.
              (3) To encourage increased focus on academics and
            core content areas in special education personnel
            preparation programs.
              (4) To ensure that regular education teachers have
            the necessary skills and knowledge to provide
            instruction to students with disabilities in the
            regular education classroom.
              (5) To ensure that all special education teachers are
            highly qualified.
              (6) To ensure that preservice and in-service
            personnel preparation programs include training in--
                      (A) the use of new technologies;
                      (B) the area of early intervention,
                    educational, and transition services;
                      (C) effectively involving parents; and
                      (D) positive behavioral supports.
              (7) To provide high-quality professional development
            for principals, superintendents, and other
            administrators, including training in--
                      (A) instructional leadership;
                      (B) behavioral supports in the school and
                    classroom;
                      (C) paperwork reduction;
                      (D) promoting improved collaboration between
                    special education and general education
                    teachers;
                      (E) assessment and accountability;
                      (F) ensuring effective learning environments;
                    and
                      (G) fostering positive relationships with
                    parents.
      (b) Personnel Development; Authorized Activities.--
              (1) In general.--In carrying out this section, the
            Secretary shall support activities to prepare
            personnel, including activities for the preparation of
            personnel who will serve children with high-incidence
            and low-incidence disabilities, consistent with the
            objectives described in subsection (a).
              (2) Authorized activities.--Activities that may be
            carried out under this subsection include the
            following:
                      (A) Supporting collaborative personnel
                    preparation activities undertaken by
                    institutions of higher education, local
                    educational agencies, and other local
                    entities--
                              (i) to improve and reform their
                            existing programs, to support effective
                            existing programs, to support the
                            development of new programs, and to
                            prepare teachers, principals,
                            administrators, and related services
                            personnel--
                                      (I) to meet the diverse needs
                                    of children with disabilities
                                    for early intervention,
                                    educational, and transitional
                                    services; and
                                      (II) to work collaboratively
                                    in regular classroom settings;
                                    and
                              (ii) to incorporate best practices
                            and scientifically based research about
                            preparing personnel--
                                      (I) so the personnel will
                                    have the knowledge and skills
                                    to improve educational results
                                    for children with disabilities;
                                    and
                                      (II) to implement effective
                                    teaching strategies and
                                    interventions to prevent the
                                    misidentification,
                                    overidentification, or
                                    underidentification of children
                                    as having a disability,
                                    especially minority and limited
                                    English proficient children.
                      (B) Developing, evaluating, and disseminating
                    innovative models for the recruitment,
                    induction, retention, and assessment of highly
                    qualified teachers to reduce teachers
                    shortages.
                      (C) Providing continuous personnel
                    preparation, training, and professional
                    development designed to provide support and
                    ensure retention of teachers and personnel who
                    teach and provide related services to children
                    with disabilities.
                      (D) Developing and improving programs for
                    paraprofessionals to become special education
                    teachers, related services personnel, and early
                    intervention personnel, including
                    interdisciplinary training to enable the
                    paraprofessionals to improve early
                    intervention, educational, and transitional
                    results for children with disabilities.
                      (E) Demonstrating models for the preparation
                    of, and interdisciplinary training of, early
                    intervention, special education, and general
                    education personnel, to enable the personnel to
                    acquire the collaboration skills necessary to
                    work within teams and to improve results for
                    children with disabilities, particularly within
                    the general education curriculum.
                      (F) Promoting effective parental involvement
                    practices to enable the personnel to work with
                    parents and involve parents in the education of
                    such parents' children.
                      (G) Promoting the transferability, across
                    State and local jurisdictions, of licensure and
                    certification of teachers, principals, and
                    administrators working with such children.
                      (H) Developing and disseminating models that
                    prepare teachers with strategies, including
                    positive behavioral interventions, for
                    addressing the conduct of children with
                    disabilities that impedes their learning and
                    that of others in the classroom.
                      (I) Developing and improving programs to
                    enhance the ability of general education
                    teachers, principals, school administrators,
                    and school board members to improve results for
                    children with disabilities.
                      (J) Supporting institutions of higher
                    education with minority enrollments of at least
                    25 percent for the purpose of preparing
                    personnel to work with children with
                    disabilities.
                      (K) Preparing personnel to work in high need
                    elementary schools and secondary schools,
                    including urban schools, rural schools, and
                    schools operated by an entity described in
                    section 7113(d)(1)(A)(ii) of the Elementary and
                    Secondary Education Act of 1965, and schools
                    that serve high numbers or percentages of
                    limited English proficient children.
                      (L) Developing, evaluating, and disseminating
                    innovative models for the recruitment,
                    induction, retention, and assessment of new,
                    highly qualified teachers, especially from
                    groups that are underrepresented in the
                    teaching profession, including individuals with
                    disabilities.
                      (M) Developing and improving programs to
                    train special education teachers to develop an
                    expertise in autism spectrum disorders.
      (c) Low Incidence Disabilities; Authorized Activities.--
              (1) In general.--In carrying out this section, the
            Secretary shall support activities, consistent with the
            objectives described in subsection (a), that benefit
            children with low incidence disabilities.
              (2) Authorized activities.--Activities that may be
            carried out under this subsection include activities
            such as the following:
                      (A) Preparing persons who--
                              (i) have prior training in
                            educational and other related service
                            fields; and
                              (ii) are studying to obtain degrees,
                            certificates, or licensure that will
                            enable the persons to assist children
                            with low incidence disabilities to
                            achieve the objectives set out in their
                            individualized education programs
                            described in section 614(d), or to
                            assist infants and toddlers with low
                            incidence disabilities to achieve the
                            outcomes described in their
                            individualized family service plans
                            described in section 636.
                      (B) Providing personnel from various
                    disciplines with interdisciplinary training
                    that will contribute to improvement in early
                    intervention, educational, and transitional
                    results for children with low incidence
                    disabilities.
                      (C) Preparing personnel in the innovative
                    uses and application of technology, including
                    universally designed technologies, assistive
                    technology devices, and assistive technology
                    services--
                              (i) to enhance learning by children
                            with low incidence disabilities through
                            early intervention, educational, and
                            transitional services; and
                              (ii) to improve communication with
                            parents.
                      (D) Preparing personnel who provide services
                    to visually impaired or blind children to teach
                    and use Braille in the provision of services to
                    such children.
                      (E) Preparing personnel to be qualified
                    educational interpreters, to assist children
                    with low incidence disabilities, particularly
                    deaf and hard of hearing children in school and
                    school related activities, and deaf and hard of
                    hearing infants and toddlers and preschool
                    children in early intervention and preschool
                    programs.
                      (F) Preparing personnel who provide services
                    to children with significant cognitive
                    disabilities and children with multiple
                    disabilities.
              (3) Definition.--As used in this section, the term
            ``low incidence disability'' means--
                      (A) a visual or hearing impairment, or
                    simultaneous visual and hearing impairments;
                      (B) a significant cognitive impairment; or
                      (C) any impairment for which a small number
                    of personnel with highly specialized skills and
                    knowledge are needed in order for children with
                    that impairment to receive early intervention
                    services or a free appropriate public
                    education.
              (4) Selection of recipients.--In selecting recipients
            under this subsection, the Secretary may give
            preference to eligible entities submitting applications
            that include 1 or more of the following:
                      (A) A proposal to prepare personnel in more
                    than 1 low incidence disability, such as
                    deafness and blindness.
                      (B) A demonstration of an effective
                    collaboration with an eligible entity and a
                    local educational agency that promotes
                    recruitment and subsequent retention of highly
                    qualified personnel to serve children with
                    disabilities.
              (5) Preparation in use of braille.--The Secretary
            shall ensure that all recipients of assistance under
            this subsection who will use that assistance to prepare
            personnel to provide services to visually impaired or
            blind children that can appropriately be provided in
            Braille will prepare those individuals to provide those
            services in Braille.
      (d) Leadership Preparation; Authorized Activities.--
              (1) In general.--In carrying out this section, the
            Secretary shall support leadership preparation
            activities that are consistent with the objectives
            described in subsection (a).
              (2) Authorized activities.--Activities that may be
            carried out under this subsection include activities
            such as the following:
                      (A) Preparing personnel at the graduate,
                    doctoral, and postdoctoral levels of training
                    to administer, enhance, or provide services to
                    improve results for children with disabilities.
                      (B) Providing interdisciplinary training for
                    various types of leadership personnel,
                    including teacher preparation faculty,
                    administrators, researchers, supervisors,
                    principals, related services personnel, and
                    other persons whose work affects early
                    intervention, educational, and transitional
                    services for children with disabilities.
      (e) Enhanced Support and Training for Beginning Special
    Educators; Authorized Activities.--
              (1) In general.--In carrying out this section, the
            Secretary shall support personnel preparation
            activities that are consistent with the objectives
            described in subsection (a).
              (2) Authorized activities.--Activities that may be
            carried out under this subsection include--
                      (A) enhancing and restructuring an existing
                    program or developing a preservice teacher
                    education program, to prepare special education
                    teachers, at colleges or departments of
                    education within the institution of higher
                    education, by incorporating an additional 5th
                    year clinical learning opportunity, field
                    experience, or supervised practicum into a
                    program of preparation and coursework for
                    special education teachers; or
                      (B) Creating or supporting professional
                    development schools that provide--
                              (i) high quality mentoring and
                            induction opportunities with ongoing
                            support for beginning special education
                            teachers; or
                              (ii) inservice professional
                            development to veteran special
                            education teachers through the ongoing
                            exchange of information and
                            instructional strategies.
              (3) Eligible partnerships.--Eligible recipients of
            assistance under this subsection are partnerships--
                      (A) that shall consist of--
                              (i) 1 or more institutions of higher
                            education with special education
                            personnel preparation programs; and
                              (ii) 1 or more local educational
                            agencies; and
                              (iii) in the case of activities
                            assisted under paragraph (2)(B), an
                            elementary school or secondary school;
                            and
                      (B) that may include other entities eligible
                    for assistance under this part, such as a State
                    educational agency.
              (4) Priority.--In awarding grants or entering into
            contracts or cooperative agreements under this
            subsection, the Secretary shall give priority to
            partnerships that include local educational agencies
            that serve--
                      (A) high numbers or percentages of low-income
                    students; or
                      (B) schools that have failed to make adequate
                    yearly progress toward enabling children with
                    disabilities to meet academic achievement
                    standards.
      (f) Training To Support General Educators; Authorized
    Activities.--
              (1) In general.--In carrying out this section, the
            Secretary shall support personnel preparation
            activities that are consistent with the objectives
            described in subsection (a).
              (2) Authorized activities.--Activities that may be
            carried out under this subsection include--
                      (A) high quality professional development for
                    general educators that develops the knowledge
                    and skills, and enhances the ability, of
                    general educators to--
                              (i) use classroom-based techniques to
                            identify students who may be eligible
                            for special education services, and
                            deliver instruction in a way that meets
                            the individualized needs of children
                            with disabilities through appropriate
                            supports, accommodations, and
                            curriculum modifications;
                              (ii) use classroom-based techniques,
                            such as scientifically based reading
                            instruction;
                              (iii) work collaboratively with
                            special education teachers and related
                            services personnel;
                              (iv) implement strategies, such as
                            positive behavioral interventions--
                                      (I) to address the behavior
                                    of children with disabilities
                                    that impedes the learning of
                                    such children and others; or
                                      (II) to prevent children from
                                    being misidentified as children
                                    with disabilities;
                              (v) prepare children with
                            disabilities to participate in
                            statewide assessments (with or without
                            accommodations) and alternate
                            assessments, as appropriate;
                              (vi) develop effective practices for
                            ensuring that all children with
                            disabilities are a part of all
                            accountability systems under the
                            Elementary and Secondary Education Act
                            of 1965;
                              (vii) work with and involve parents
                            of children with disabilities in their
                            child's education;
                              (viii) understand how to effectively
                            construct IEPs, participate in IEP
                            meetings, and implement IEPs; and
                              (ix) in the case of principals and
                            superintendents, be instructional
                            leaders and promote improved
                            collaboration between general
                            educators, special education teachers,
                            and related services personnel; and
                      (B) release and planning time for the
                    activities described in this subsection.
              (3) Eligible partnerships.--Eligible recipients of
            assistance under this subsection are partnerships--
                      (A) that consist of--
                              (i) 1 or more institutions of higher
                            education with special education
                            personnel preparation programs; and
                              (ii) 1 or more local educational
                            agencies; and
                      (B) that may include other entities eligible
                    for assistance under this part, such as a State
                    educational agency.
      (g) Applications.--
              (1) In general.--Any eligible entity that desires to
            receive a grant, or enter into a contract or
            cooperative agreement, under this section shall submit
            an application to the Secretary at such time, in such
            manner, and containing such information as the
            Secretary may require.
              (2) Identified state needs.--
                      (A) Requirement to address identified
                    needs.--Any application under subsection (b),
                    (c), (d), (e), or (f) shall include information
                    demonstrating to the satisfaction of the
                    Secretary that the activities described in the
                    application will address needs identified by
                    the State or States the applicant proposes to
                    serve, consistent with the needs identified in
                    the State plan described in section 653(a)(2).
                      (B) Cooperation with state educational
                    agencies.--Any applicant that is not a local
                    educational agency or a State educational
                    agency shall include in the application
                    information demonstrating to the satisfaction
                    of the Secretary that the applicant and 1 or
                    more State educational agencies or local
                    educational agencies have engaged in a
                    cooperative effort to carry out and monitor the
                    project to be assisted.
              (3) Acceptance by states of personnel preparation
            requirements.--The Secretary may require applicants to
            provide assurances from 1 or more States that such
            States intend to accept successful completion of the
            proposed personnel preparation program as meeting State
            personnel standards for serving children with
            disabilities or serving infants and toddlers with
            disabilities.
      (h) Selection of Recipients.--
              (1) Impact of project.--In selecting award recipients
            under this section, the Secretary shall consider the
            impact of the proposed project described in the
            application in meeting the need for personnel
            identified by the States.
              (2) Requirement for applicants to meet state and
            professional standards.--The Secretary shall make
            grants and enter into contracts and cooperative
            agreements under this section only to eligible
            applicants that meet State and professionally
            recognized standards for the preparation of special
            education and related services personnel, if the
            purpose of the project is to assist personnel in
            obtaining degrees.
              (3) Preferences.--In selecting recipients under this
            section, the Secretary may give preference to
            institutions of higher education that are--
                      (A) educating regular education personnel to
                    meet the needs of children with disabilities in
                    integrated settings;
                      (B) educating special education personnel to
                    work in collaboration with regular educators in
                    integrated settings; and
                      (C) successfully recruiting and preparing
                    individuals with disabilities and individuals
                    from groups that are underrepresented in the
                    profession for which the institution of higher
                    education is preparing individuals.
      (i) Service Obligation.--Each application for funds under
    subsections (b), (c), (d), and (e) shall include an assurance
    that the applicant will ensure that individuals who receive
    assistance under the proposed project will subsequently provide
    special education and related services to children with
    disabilities for a period of 1 year for every year for which
    assistance was received, or repay all or part of the cost of
    that assistance, in accordance with regulations issued by the
    Secretary.
      (j) Scholarships.--The Secretary may include funds for
    scholarships, with necessary stipends and allowances, in awards
    under subsections (b), (c), (d), and (e).
      (k) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section such sums as may be
    necessary for each of the fiscal years 2004 through 2009.

    SEC. 665. STUDIES AND EVALUATIONS.

      (a) Studies and Evaluations.--
              (1) Delegation.--The Secretary shall delegate to the
            Director of the Institute for Education Sciences
            responsibility to carry out this section, other than
            subsections (d) and (f).
              (2) Assessment.--The Secretary shall, directly or
            through grants, contracts, or cooperative agreements
            awarded on a competitive basis, assess the progress in
            the implementation of this Act, including the
            effectiveness of State and local efforts to provide--
                      (A) a free appropriate public education to
                    children with disabilities; and
                      (B) early intervention services to infants
                    and toddlers with disabilities, and infants and
                    toddlers who would be at risk of having
                    substantial developmental delays if early
                    intervention services were not provided to
                    them.
      (b) National Assessment.--
              (1) In general.--The Secretary shall carry out a
            national assessment of activities carried out with
            Federal funds under this Act in order--
                      (A) to determine the effectiveness of this
                    Act in achieving its purposes;
                      (B) to provide timely information to the
                    President, Congress, the States, local
                    educational agencies, and the public on how to
                    implement this Act more effectively; and
                      (C) to provide the President and Congress
                    with information that will be useful in
                    developing legislation to achieve the purposes
                    of this Act more effectively.
              (2) Consultation.--The Secretary shall plan, review,
            and conduct the national assessment under this
            subsection in consultation with researchers, State
            practitioners, local practitioners, parents of children
            with disabilities, and other appropriate individuals.
              (3) Scope of assessment.--The national assessment
            shall assess the--
                      (A) implementation of programs assisted under
                    this Act and the impact of those programs on
                    addressing the developmental, educational, and
                    transitional needs of, and improving the
                    academic achievement and functional outcomes
                    of, children with disabilities to enable the
                    children to reach challenging developmental
                    goals and challenging State academic content
                    standards based on State academic assessments,
                    including alternate assessments;
                      (B) types of programs and services that have
                    demonstrated the greatest likelihood of helping
                    students reach the challenging State academic
                    content standards and developmental goals;
                      (C) implementation of the personnel
                    preparation and professional development
                    activities assisted under this Act and the
                    impact on instruction, student academic
                    achievement, and teacher qualifications to
                    enhance the ability of special education
                    teachers and regular education teachers to
                    improve results for children with disabilities;
                    and
                      (D) effectiveness of schools, local
                    educational agencies, States, and other
                    recipients of assistance under this Act, in
                    achieving the purposes of this Act in--
                              (i) improving the academic
                            achievement of children with
                            disabilities and their performance on
                            regular statewide assessments, and the
                            performance of children with
                            disabilities on alternate assessments;
                              (ii) improving the participation rate
                            of children with disabilities in the
                            general education curriculum;
                              (iii) improving the transitions of
                            children with disabilities at natural
                            transition points;
                              (iv) placing and serving children
                            with disabilities, including minority
                            children, in the least restrictive
                            environment appropriate;
                              (v) preventing children with
                            disabilities, especially children with
                            emotional disturbances and specific
                            learning disabilities, from dropping
                            out of school;
                              (vi) addressing the reading and
                            literacy needs of children with
                            disabilities;
                              (vii) coordinating services provided
                            under this Act with each other, with
                            other educational and pupil services
                            (including preschool services), and
                            with health and social services funded
                            from other sources;
                              (viii) improving the participation of
                            parents of children with disabilities
                            in the education of their children;
                              (ix) resolving disagreements between
                            education personnel and parents through
                            alternate dispute resolution activities
                            including mediation; and
                              (x) reducing the misidentification of
                            children, especially minority and
                            limited English proficient children.
              (4) Interim and final reports.--The Secretary shall
            submit to the President and Congress--
                      (A) an interim report that summarizes the
                    preliminary findings of the national assessment
                    not later than 3 years after the date of
                    enactment of the Individuals with Disabilities
                    Education Improvement Act of 2003; and
                      (B) a final report of the findings of the
                    assessment not later than 5 years after the
                    date of enactment of the Individuals with
                    Disabilities Education Improvement Act of 2003.
      (c) Study on Ensuring Accountability for Students With
    Significant Disabilities.--The Secretary shall carry out a
    national study or studies to examine--
              (1) the criteria that States use to determine
            eligibility for alternate assessments and the number
            and type of children who take those assessments;
              (2) the validity and reliability of alternate
            assessment instruments and procedures;
              (3) the alignment of alternate assessments with State
            academic content and achievement standards or with
            alternate academic achievement standards; and
              (4) the use and effectiveness of alternate
            assessments in appropriately measuring student progress
            and outcomes specific to individualized instructional
            need.
      (d) Annual Report.--The Secretary shall provide an annual
    report to Congress that--
              (1) summarizes the research conducted under section
            662;
              (2) analyzes and summarizes the data reported by the
            States and the Secretary of the Interior under section
            618;
              (3) summarizes the studies and evaluations conducted
            under this section and the timeline for their
            completion;
              (4) describes the extent and progress of the national
            assessment; and
              (5) describes the findings and determinations
            resulting from reviews of State implementation of this
            Act.
      (e) Authorized Activities.--In carrying out this section, the
    Secretary may support objective studies, evaluations, and
    assessments, including studies that--
              (1) analyze measurable impact, outcomes, and results
            achieved by State educational agencies and local
            educational agencies through their activities to reform
            policies, procedures, and practices designed to improve
            educational and transitional services and results for
            children with disabilities;
              (2) analyze State and local needs for professional
            development, parent training, and other appropriate
            activities that can reduce the need for disciplinary
            actions involving children with disabilities;
              (3) assess educational and transitional services and
            results for children with disabilities from minority
            backgrounds, including--
                      (A) data on--
                              (i) the number of minority children
                            who are referred for special education
                            evaluation;
                              (ii) the number of minority children
                            who are receiving special education and
                            related services and their educational
                            or other service placement;
                              (iii) the number of minority children
                            who graduated from secondary programs
                            with a regular diploma in the standard
                            number of years; and
                              (iv) the number of minority children
                            who drop out of the educational system;
                            and
                      (B) the performance of children with
                    disabilities from minority backgrounds on State
                    assessments and other performance indicators
                    established for all students;
              (4) measure educational and transitional services and
            results of children with disabilities served under this
            Act, including longitudinal studies that--
                      (A) examine educational and transitional
                    services and results for children with
                    disabilities who are 3 through 17 years of age
                    and are receiving special education and related
                    services under this Act, using a national,
                    representative sample of distinct age cohorts
                    and disability categories; and
                      (B) examine educational results, transition
                    services, postsecondary placement, and
                    employment status of individuals with
                    disabilities, 18 through 21 years of age, who
                    are receiving or have received special
                    education and related services under this Act;
                    and
              (5) identify and report on the placement of children
            with disabilities by disability category.
      (f) Study.--The Secretary shall study, and report to Congress
    regarding, the extent to which States adopt policies described
    in section 635(b)(1) and on the effects of those policies.
      (g) Reservation for Studies and Evaluations.--
              (1) In general.--Except as provided in paragraph (2)
            and notwithstanding any other provision of this Act,
            the Secretary may reserve not more than \1/2\ of 1
            percent of the amount appropriated under parts B and C
            for each fiscal year to carry out this section, of
            which not more than $3,000,000 shall be available to
            carry out subsection (c).
              (2) Maximum amount.--The maximum amount the Secretary
            may reserve under paragraph (1) for any fiscal year is
            $40,000,000, increased by the cumulative rate of
            inflation since fiscal year 2003.

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

    SEC. 670. PURPOSES.

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

    SEC. 671. PARENT TRAINING AND INFORMATION CENTERS.

      (a) Program Authorized.--The Secretary may award grants to,
    and enter into contracts and cooperative agreements with,
    parent organizations to support parent training and information
    centers to carry out activities under this section.
      (b) Required Activities.--Each parent training and
    information center that receives assistance under this section
    shall--
              (1) provide training and information that meets the
            needs of parents of children with disabilities living
            in the area served by the center, particularly
            underserved parents and parents of children who may be
            inappropriately identified, to enable their children
            with disabilities to--
                      (A) meet developmental and functional goals,
                    and challenging academic achievement goals that
                    have been established for all children; and
                      (B) be prepared to lead productive
                    independent adult lives, to the maximum extent
                    possible;
              (2) serve the parents of infants, toddlers, and
            children with the full range of disabilities described
            in section 602(3);
              (3) assist parents to--
                      (A) better understand the nature of their
                    children's disabilities and their educational,
                    developmental, and transitional needs;
                      (B) communicate effectively and work
                    collaboratively with personnel responsible for
                    providing special education, early intervention
                    services, transition services, and related
                    services;
                      (C) participate in decisionmaking processes
                    and the development of individualized education
                    programs under part B and individualized family
                    service plans under part C;
                      (D) obtain appropriate information about the
                    range, type, and quality of options, programs,
                    services, technologies, and research based
                    practices and interventions, and resources
                    available to assist children with disabilities
                    and their families in school and at home;
                      (E) understand the provisions of this Act for
                    the education of, and the provision of early
                    intervention services to, children with
                    disabilities; and
                      (F) participate in school reform activities;
              (4) in States where the State elects to contract with
            the parent training and information center, contract
            with State educational agencies to provide, consistent
            with subparagraphs (B) and (D) of section 615(e)(2),
            individuals who meet with parents to explain the
            mediation process to the parents;
              (5) assist parents in resolving disputes in the most
            expeditious and effective way possible, including
            encouraging the use, and explaining the benefits, of
            alternative methods of dispute resolution, such as the
            mediation process described in section 615(e);
              (6) assist parents and students with disabilities to
            understand their rights and responsibilities under this
            Act, including those under section 615(m) on the
            student's reaching the age of majority;
              (7) assist parents to understand the availability of,
            and how to effectively use, procedural safeguards under
            this Act;
              (8) assist parents in understanding, preparing for,
            and participating in, the process described in section
            615(f)(1)(B);
              (9) establish cooperative partnerships with community
            parent resource centers funded under section 672;
              (10) network with appropriate clearinghouses,
            including organizations conducting national
            dissemination activities under section 663, and with
            other national, State, and local organizations and
            agencies, such as protection and advocacy agencies,
            that serve parents and families of children with the
            full range of disabilities described in section 602(3);
            and
              (11) annually report to the Secretary on--
                      (A) the number and demographics of parents to
                    whom the center provided information and
                    training in the most recently concluded fiscal
                    year;
                      (B) the effectiveness of strategies used to
                    reach and serve parents, including underserved
                    parents of children with disabilities; and
                      (C) the number of parents served who have
                    resolved disputes through alternative methods
                    of dispute resolution.
      (c) Optional Activities.--A parent training and information
    center that receives assistance under this section may provide
    information to teachers and other professionals to assist the
    teachers and professionals in improving results for children
    with disabilities.
      (d) Application Requirements.--Each application for
    assistance under this section shall identify with specificity
    the special efforts that the parent organization will
    undertake--
              (1) to ensure that the needs for training and
            information of underserved parents of children with
            disabilities in the area to be served are effectively
            met; and
              (2) to work with community based organizations.
      (e) Distribution of Funds.--
              (1) In general.--The Secretary shall--
                      (A) make at least 1 award to a parent
                    organization in each State for a parent
                    training and information center which is
                    designated as the statewide parent training and
                    information center; or
                      (B) in the case of a large State, make awards
                    to multiple parent training and information
                    centers, but only if the centers demonstrate
                    that coordinated services and supports will
                    occur among the multiple centers.
              (2) Selection requirement.--The Secretary shall
            select among applications submitted by parent
            organizations in a State in a manner that ensures the
            most effective assistance to parents, including parents
            in urban and rural areas, in the State.
      (f) Quarterly Review.--
              (1) Meetings.--The board of directors of each parent
            organization that receives an award under this section
            shall meet at least once in each calendar quarter to
            review the activities for which the award was made.
              (2) Continuation award.--When an organization
            requests a continuation award under this section, the
            board of directors shall submit to the Secretary a
            written review of the parent training and information
            program conducted by the organization during the
            preceding fiscal year.
      (g) Definition of Parent Organization.--As used in this
    section, the term ``parent organization'' means a private
    nonprofit organization (other than an institution of higher
    education) that--
              (1) has a board of directors--
                      (A) the majority of whom are parents of
                    children with disabilities ages birth through
                    26;
                      (B) that includes--
                              (i) individuals working in the fields
                            of special education, related services,
                            and early intervention; and
                              (ii) individuals with disabilities;
                      (C) the parent and professional members of
                    which are broadly representative of the
                    population to be served; and
              (2) has as its mission serving families of children
            and youth with disabilities who--
                      (A) are ages birth through 26; and
                      (B) have the full range of disabilities
                    described in section 602(3).

    SEC. 672. COMMUNITY PARENT RESOURCE CENTERS.

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

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

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

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

      (a) In General.--The Secretary, on a competitive basis, shall
    award grants to, and enter into contracts and cooperative
    agreements with, eligible entities to support activities
    described in subsections (b) and (c).
      (b) Technology Development, Demonstration, and Use.--
              (1) In general.--In carrying out this section, the
            Secretary shall support activities to promote the
            development, demonstration, and use of technology.
              (2) Authorized activities.--The following activities
            may be carried out under this subsection:
                      (A) Conducting research on and promoting the
                    demonstration and use of innovative, emerging,
                    and universally designed technologies for
                    children with disabilities, by improving the
                    transfer of technology from research and
                    development to practice.
                      (B) Supporting research, development, and
                    dissemination of technology with universal
                    design features, so that the technology is
                    accessible to the broadest range of individuals
                    with disabilities without further modification
                    or adaptation.
                      (C) Demonstrating the use of systems to
                    provide parents and teachers with information
                    and training concerning early diagnosis of,
                    intervention for, and effective teaching
                    strategies for, young children with reading
                    disabilities.
                      (D) Supporting the use of Internet-based
                    communications for students with cognitive
                    disabilities in order to maximize their
                    academic and functional skills.
      (c) Educational Media Services; Optional Activities.--
              (1) In general.--In carrying out this section, the
            Secretary shall support--
                      (A) educational media activities that are
                    designed to be of educational value in the
                    classroom setting to children with
                    disabilities;
                      (B) providing video description, open
                    captioning, or closed captioning, that is
                    appropriate for use in the classroom setting,
                    of--
                              (i) television programs;
                              (ii) videos;
                              (iii) other materials, including
                            programs and materials associated with
                            new and emerging technologies, such as
                            CDs, DVDs, video streaming, and other
                            forms of multimedia; or
                              (iv) news (but only until September
                            30, 2006);
                      (C) distributing materials described in
                    subparagraphs (A) and (B) through such
                    mechanisms as a loan service; and
                      (D) providing free educational materials,
                    including textbooks, in accessible media for
                    visually impaired and print disabled students
                    in elementary schools and secondary schools.
              (2) Limitation.--The video description, open
            captioning, or closed captioning described in paragraph
            (1)(B) shall only be provided when the description or
            captioning has not been previously provided by the
            producer or distributor, or has not been fully funded
            by other sources.
      (d) Applications.--Any eligible entity that wishes to receive
    a grant, or enter into a contract or cooperative agreement,
    under this section shall submit an application to the Secretary
    at such time, in such manner, and containing such information
    as the Secretary may require.
      (e) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this section such sums as may be
    necessary for each of the fiscal years 2004 through 2009.

    SEC. 675. ACCESSIBILITY OF INSTRUCTIONAL MATERIALS.

      (a) Instructional Materials Accessibility Standard.--
              (1) Accessibility standard.--Not later than 180 days
            after the date of enactment of the Individuals with
            Disabilities Education Improvement Act of 2003, the
            Secretary shall, by rulemaking, promulgate an
            Instructional Materials Accessibility Standard which
            shall constitute the technical standards to be used by
            publishers for the preparation of electronic files for
            States under section 612(a)(22).
              (2) Relationship to other laws.--For purposes of this
            section:
                      (A) Authorized entity.--Notwithstanding the
                    provisions of section 106 of title 17, United
                    States Code, it is not an infringement of
                    copyright for an authorized entity to reproduce
                    or to distribute copies of the electronic files
                    described in section 612(a)(22)(B), containing
                    the contents of the print instructional
                    materials using the Instructional Materials
                    Accessibility Standard, if such copies are used
                    solely for reproduction or distribution of the
                    contents of such print instructional materials
                    in specialized formats designed exclusively for
                    use by the blind or other persons with print
                    disabilities.
                      (B) Publisher.--Notwithstanding the
                    provisions of section of 106 of title 17,
                    United States Code, it is not an infringement
                    of copyright for a publisher to create and
                    distribute copies of the electronic files
                    described in section 612(a)(22)(B), containing
                    the contents of the print instructional
                    materials using the Instructional Material
                    Accessibility Standard, if such copies are used
                    solely for reproduction or distribution of the
                    contents of such print instructional materials
                    in specialized formats designed exclusively for
                    use by the blind or other persons with print
                    disabilities.
                      (C) Copies.--Copies of the electronic files
                    containing the contents of the print
                    instructional materials using the Instructional
                    Materials Accessibility Standard shall be made
                    in compliance with the provisions of section
                    121(b) of title 17, United States Code,
                    regarding the reproduction and distribution of
                    copyrighted print instructional materials in
                    specialized formats.
              (3) Definitions.--In this section:
                      (A) Instructional materials accessibility
                    standard.--The term ``Instructional Materials
                    Accessibility Standard'' means the technical
                    standards described in paragraph (2), to be
                    used in the preparation of electronic files
                    suitable and used solely for efficient
                    conversion into specialized formats.
                      (B) Blind or other persons with print
                    disabilities.--The term ``blind or other
                    persons with print disabilities'' means
                    children served under this Act and who may
                    qualify in accordance with the Act entitled
                    ``An Act to provide books for the adult
                    blind'', approved March 3, 1931 (2 U.S.C. 135a;
                    46 Stat. 1487) to receive books and other
                    publications produced in specialized formats.
                      (C) Specialized formats.--The term
                    ``specialized formats'' has the meaning given
                    the term in section 121(c)(3) of title 17,
                    United States Code, and for the purposes of
                    this section, includes synthesized speech,
                    digital audio, and large print.
                      (D) Print instructional materials.--The term
                    ``print instructional materials'' means printed
                    textbooks and related printed core materials
                    that are written and published primarily for
                    use in elementary school and secondary school
                    instruction and are required by a State
                    educational agency or local educational agency
                    for use by pupils in the classroom.
                      (E) Authorized entity.--The term ``authorized
                    entity'' has the meaning given the term in
                    section 121(c)(1) of title 17, United States
                    Code.
              (4) Applicability.--This section shall apply to print
            instructional materials published and copyrighted after
            the date on which the final rule establishing the
            Instructional Materials Accessibility Standard is
            published in the Federal Register.
      (b) National Instructional Materials Access Center.--
              (1) Establishment.--Not later than 2 years after the
            date of enactment of the Individuals with Disabilities
            Education Improvement Act of 2003, the Secretary shall
            establish a center, to be known as the National
            Instructional Materials Access Center, which shall
            coordinate the acquisition and distribution of print
            instructional materials prepared in the Instructional
            Materials Accessibility Standard described in
            subsection (a)(2).
              (2) Responsibilities.--The duties of the National
            Instructional Materials Access Center are the
            following:
                      (A) To receive and maintain a catalog of
                    print instructional materials made available
                    under section 612(a)(22) and section 613(a)(6).
                      (B) To provide authorized entities with
                    access to such print instructional materials,
                    free of charge, in accordance with such terms
                    and procedures as the National Instructional
                    Materials Access Center may prescribe.
                      (C) To develop, adopt, and publish procedures
                    to protect against copyright infringement and
                    otherwise to administratively assure compliance
                    with title 17, United States Code, with respect
                    to the print instructional materials provided
                    under section 612(a)(22) and section 613(a)(6).
              (3) Contract authorized.--To assist in carrying out
            paragraph (1), the Secretary shall award, on a
            competitive basis, a contract renewable on a biennial
            basis with a nonprofit organization, or with a
            consortium of such organizations, determined by the
            Secretary to be best qualified to carry out the
            responsibilities described in paragraph (2). The
            contractor shall report directly to the Assistant
            Secretary for Special Education and Rehabilitative
            Services.
              (4) Authorization of appropriations.--There are
            authorized to be appropriated to carry out this
            subsection such sums as may be necessary.

    SEC. 676. AUTHORIZATION OF APPROPRIATIONS.

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

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

    SEC. 681. PURPOSE.

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

    SEC. 682. DEFINITION OF ELIGIBLE ENTITY.

      In this subpart, the term ``eligible entity'' means--
              (1) a local educational agency; or
              (2) a consortium consisting of a local educational
            agency and 1 or more of the following entities:
                      (A) another local educational agency;
                      (B) a community-based organization with a
                    demonstrated record of effectiveness in helping
                    children with disabilities who have behavioral
                    challenges succeed;
                      (C) an institution of higher education;
                      (D) a mental health provider; or
                      (E) an educational service agency.

    SEC. 683. PROGRAM AUTHORIZED.

      The Secretary is authorized to award grants, on a competitive
    basis, to eligible entities to enable the eligible entities--
              (1) to establish or expand behavioral supports and
            whole school behavioral interventions by providing for
            effective, research-based practices, including--
                      (A) comprehensive, early screening efforts
                    for students at risk for emotional and
                    behavioral difficulties;
                      (B) training for school staff on early
                    identification, prereferral, and referral
                    procedures;
                      (C) training for administrators, teachers,
                    related services personnel, behavioral
                    specialists, and other school staff in whole
                    school positive behavioral interventions and
                    supports, behavioral intervention planning, and
                    classroom and student management techniques;
                      (D) joint training for administrators,
                    parents, teachers, related services personnel,
                    behavioral specialists, and other school staff
                    on effective strategies for positive behavioral
                    interventions and behavior management
                    strategies that focus on the prevention of
                    behavior problems;
                      (E) developing or implementing specific
                    curricula, programs, or interventions aimed at
                    addressing behavioral problems;
                      (F) stronger linkages between school-based
                    services and community-based resources, such as
                    community mental health and primary care
                    providers; or
                      (G) using behavioral specialists, related
                    services personnel, and other staff necessary
                    to implement behavioral supports; or
              (2) to improve interim alternative educational
            settings by--
                      (A) improving the training of administrators,
                    teachers, related services personnel,
                    behavioral specialists, and other school staff
                    (including ongoing mentoring of new teachers);
                      (B) attracting and retaining a high quality,
                    diverse staff;
                      (C) providing for on-site counseling
                    services;
                      (D) using research-based interventions,
                    curriculum, and practices;
                      (E) allowing students to use instructional
                    technology that provides individualized
                    instruction;
                      (F) ensuring that the services are fully
                    consistent with the goals of the individual
                    student's IEP;
                      (G) promoting effective case management and
                    collaboration among parents, teachers,
                    physicians, related services personnel,
                    behavioral specialists, principals,
                    administrators, and other school staff;
                      (H) promoting interagency coordination and
                    coordinated service delivery among schools,
                    juvenile courts, child welfare agencies,
                    community mental health providers, primary care
                    providers, public recreation agencies, and
                    community-based organizations; or
                      (I) providing for behavioral specialists to
                    help students transitioning from interim
                    alternative educational settings reintegrate
                    into their regular classrooms.

    SEC. 684. PROGRAM EVALUATIONS.

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

    SEC. 685. AUTHORIZATION OF APPROPRIATIONS.

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

    Education Sciences Reform Act of 2002

               *       *       *       *       *       *       *

    PART II--EDUCATION SCIENCES REFORM

               *       *       *       *       *       *       *

    TITLE I--EDUCATION SCIENCES REFORM

               *       *       *       *       *       *       *

                  PART A--THE INSTITUTE OF EDUCATION SCIENCES

    SEC. 111. ESTABLISHMENT.

        (a) Establishment.--* * *
        (b) Mission.--
              (1) In general.--* * *
                      (A) the condition and progress of education
                    in the United States, including early childhood
                    education early childhood education;

               *       *       *       *       *       *       *

        (c) * * *

               *       *       *       *       *       *       *

              (3) * * *
                      (A) * * *
                      (B) the National Center for Education
                    Statistics (as described in part C); [and]
                      (C) the National Center for Education
                    Evaluation and Regional Assistance (as
                    described in part D)[.]; and
                      (D) the National Center for Special Education
                    Research (as described in part E).

               *       *       *       *       *       *       *

    SEC. 115. PRIORITIES.

        (a) Proposal.--The Director shall propose to the Board
    priorities for the Institute (taking into consideration long-
    term research and development on core issues conducted through
    the national research and development centers). The Director
    shall identify topics that may require long-term research and
    topics that are focused on understanding and solving particular
    education problems and issues, [including those associated with
    the goals and requirements established in the Elementary and
    Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) and
    the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), such
    as--] including those associated with the goals and
    requirements of the Elementary and Secondary Education Act of
    1965 (20 U.S.C. 6301 et seq.), the Individuals with
    Disabilities Education Act (20 U.S.C. 1400 et seq.), and the
    Higher Education Act of 1965 (20 U.S.C 1001 et seq.) such as--

               *       *       *       *       *       *       *

    SEC. 116. NATIONAL BOARD FOR EDUCATION SCIENCES.

        (a) Establishment.--* * *

               *       *       *       *       *       *       *

        (c) * * *

               *       *       *       *       *       *       *

              (4) * * *
                      (A) * * *

               *       *       *       *       *       *       *

                              (i) * * *
                              (ii) Individuals who are
                            knowledgeable about the educational
                            needs of the United States, who may
                            include school-based professional
                            educators, parents (including parents
                            with experience in promoting parental
                            involvement in education), Chief State
                            School Officers, State postsecondary
                            education executives, presidents of
                            institutions of higher education, local
                            educational agency superintendents,
                            early childhood experts, special
                            education experts, principals, members
                            of State or local boards of education
                            or Bureau-funded school boards, and
                            individuals from business and industry
                            with experience in promoting private
                            sector involvement in education.

               *       *       *       *       *       *       *

             PART E--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

    SEC. 175. ESTABLISHMENT.

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

    SEC. 176. COMMISSIONER FOR SPECIAL EDUCATION RESEARCH.

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

    SEC. 177. DUTIES.

      (a) General Duties.--The Special Education Research Center
    shall carry out research activities under this part consistent
    with the mission described in section 175(b), such as
    activities that--
              (1) improve services provided under the Individuals
            with Disabilities Education Act in order to improve--
                      (A) academic achievement, functional
                    outcomes, and educational results for children
                    with disabilities; and
                      (B) developmental outcomes for infants and
                    toddlers;
              (2) identify scientifically based educational
            practices that support learning and improve academic
            achievement, functional outcomes, and educational
            results for all students with disabilities;
              (3) examine the special needs of preschool aged
            children, infants, and toddlers with disabilities,
            including factors that may result in developmental
            delays;
              (4) identify scientifically based related services
            and interventions that promote participation and
            progress in the general education curriculum and
            general education settings;
              (5) improve the alignment, compatibility, and
            development of valid and reliable assessments,
            including alternate assessments, as required by section
            1111(b) of the Elementary and Secondary Education Act
            of 1965;
              (6) examine State content standards and alternate
            assessments for students with significant cognitive
            impairment in terms of academic achievement,
            individualized instructional need, appropriate
            education settings, and improved post-school results;
              (7) examine the educational, developmental, and
            transitional needs of children with high incidence and
            low incidence disabilities;
              (8) examine the extent to which overidentification
            and underidentification of children with disabilities
            occurs, and the causes thereof;
              (9) improve reading and literacy skills of children
            with disabilities;
              (10) examine and improve secondary and postsecondary
            education and transitional outcomes and results for
            children with disabilities;
              (11) examine methods of early intervention for
            children with disabilities, including children with
            multiple or complex developmental delays;
              (12) examine and incorporate universal design
            concepts in the development of standards, assessments,
            curricula, and instructional methods as a method to
            improve educational and transitional results for
            children with disabilities;
              (13) improve the preparation of personnel, including
            early intervention personnel, who provide educational
            and related services to children with disabilities to
            increase the academic achievement and functional
            performance of students with disabilities;
              (14) examine the excess costs of educating a child
            with a disability and expenses associated with high
            cost special education and related services;
              (15) help parents improve educational results for
            their children, particularly related to transition
            issues; and
              (16) address the unique needs of children with
            significant cognitive disabilities.
      (b) Standards.--The Commissioner of Special Education
    Research shall ensure that activities assisted under this
    section--
              (1) conform to high standards of quality, integrity,
            accuracy, validity, and reliability;
              (2) are carried out in conjunction with the standards
            for the conduct and evaluation of all research and
            development established by the National Center for
            Education Research; and
              (3) are objective, secular, neutral, and
            nonideological, and are free of partisan political
            influence, and racial, cultural, gender, regional, or
            disability bias.
      (c) Plan.--The Commissioner of Special Education Research
    shall propose to the Director a research plan, developed in
    collaboration with the Assistant Secretary for Special
    Education and Rehabilitative Services, that--
              (1) is consistent with the priorities and mission of
            the Institute and the mission of the Special Education
            Research Center;
              (2) is carried out, updated, and modified, as
            appropriate;
              (3) is consistent with the purpose of the Individuals
            with Disabilities Education Act;
              (4) contains an appropriate balance across all age
            ranges and types of children with disabilities;
              (5) provides for research that is objective and uses
            measurable indicators to assess its progress and
            results;
              (6) is coordinated with the comprehensive plan
            developed under section 661 of the Individuals with
            Disabilities Education Act; and
              (7) provides that the research conducted under part D
            of the Individuals with Disabilities Education Act is
            relevant to special education practice and policy.
      (d) Grants, Contracts, and Cooperative Agreements.--In
    carrying out the duties under this section, the Director may
    award grants to, or enter into contracts or cooperative
    agreements with, eligible entities.
      (e) Applications.--An eligible entity that wishes to receive
    a grant, or enter into a contract or cooperative agreement,
    under this part shall submit an application to the Director at
    such time, in such manner, and containing such information as
    the Director may require.
      (f) Dissemination.--The Special Education Research Center
    shall--
              (1) synthesize and disseminate, through the National
            Center for Education Evaluation and Regional
            Assistance, the findings and results of special
            education research conducted or supported by the
            Special Education Research Center; and
              (2) assist the Director in the preparation of a
            biennial report, as described in section 119.
      (g) Authorization of Appropriations.--There are authorized to
    be appropriated to carry out this part such sums as may be
    necessary for each of fiscal years 2004 through 2009.

    PART [E]F--GENERAL PROVISIONS

               *       *       *       *       *       *       *

    Elementary and Secondary Education Act of 1965

               *       *       *       *       *       *       *

    TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

               *       *       *       *       *       *       *

    PART A--IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES

    Subpart 1--Basic Program Requirements

               *       *       *       *       *       *       *

              (3) Regional centers.--Such a statewide system shall,
            to the extent practicable, work with and receive
            support and assistance from regional educational
            laboratories established under [part E] part D of the
            Education Sciences Reform Act of 2002 and comprehensive
            centers established under the Educational Technical
            Assistance Act of 2002 and the comprehensive regional
            technical assistance centers and the regional
            educational laboratories under section 941(h) of the
            Educational Research, Development, Dissemination, and
            Improvement Act of 1994 (as such section existed on the
            day before the date of enactment of the Education
            Sciences Reform Act of 2002), or other providers of
            technical assistance.

               *       *       *       *       *       *       *

    Rehabilitation Act of 1973

               *       *       *       *       *       *       *

    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

        (a) Short Title.--This Act may be cited as the
    ``Rehabilitation Act of 1973''.
        (b) Table of Contents.--The table of contents for this Act
    is as follows:

    Sec. 1. Short title; table of contents.
         * * * * * * *

                Part B--Basic Vocational Rehabilitation Services

    Sec. 110. State allotments.
    Sec. 110A. Reservation for expanded transition services.
         * * * * * * *

    SEC. 2. FINDINGS; PURPOSE; POLICY.

                (a) Findings.--Congress finds that--
              (1) * * *

               *       *       *       *       *       *       *

              (5) individuals with disabilities continually
            encounter various forms of discrimination in such
            critical areas as employment, housing, public
            accommodations, education, transportation,
            communication, recreation, institutionalization, health
            services, voting, and public services; [and]
              (6) the goals of the Nation properly include the goal
            of providing individuals with disabilities with the
            tools necessary to--
                      (A) make informed choices and decisions; and
                      (B) achieve equality of opportunity, full
                    inclusion and integration in society,
                    employment, independent living, and economic
                    and social self-sufficiency, for such
                    individuals[.]; and
              (7) there is a substantial need to improve and expand
            services for students with disabilities under this Act.

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    SEC. 7. DEFINITIONS.

        For the purposes of this Act:
              (1) Administrative costs.--* * *

               *       *       *       *       *       *       *

              (35)(A) The term ``student with a disability'' means
            an individual with a disability who--
                      (i) is not younger than 14 and not older than
                    21;
                      (ii) has been determined to be eligible under
                    section 102(a) for assistance under this title;
                    and
                      (iii)(I) is eligible for, and is receiving,
                    special education under part B of the
                    Individuals with Disabilities Education Act (20
                    U.S.C. 1411 et seq.); or
                      (II) is an individual with a disability, for
                    purposes of section 504.
              (B) the term ``students with disabilities'' means
            more than 1 student with a disability.
              [(35) (36) Supported employment.--
                      (A) In general.--The term ``supported
                    employment'' means competitive work in
                    integrated work settings, or employment in
                    integrated work settings in which individuals
                    are working toward competitive work, consistent
                    with the strengths, resources, priorities,
                    concerns, abilities, capabilities, interests,
                    and informed choice of the individuals, for
                    individuals with the most significant
                    disabilities--
                              (i)(I) for whom competitive
                            employment has not traditionally
                            occurred; or
                              (II) for whom competitive employment
                            has been interrupted or intermittent as
                            a result of a significant disability;
                            and
                              (ii) who, because of the nature and
                            severity of their disability, need
                            intensive supported employment services
                            for the period, and any extension,
                            described in [paragaph (36)(C)]
                            paragraph (37)(C) and extended services
                            after the transition described in
                            paragraph (13)(C) in order to perform
                            such work.
                      (B) Certain transitional employment.--Such
                    term includes transitional employment for
                    persons who are individuals with the most
                    significant disabilities due to mental illness.
              [(36)] (37) Supported employment services.--The term
            ``supported employment services'' means ongoing support
            services and other appropriate services needed to
            support and maintain an individual with a most
            significant disability in supported employment, that--
                      (A) are provided singly or in combination and
                    are organized and made available in such a way
                    as to assist an eligible individual to achieve
                    competitive employment;
                      (B) are based on a determination of the needs
                    of an eligible individual, as specified in an
                    individualized plan for employment; and
                      (C) are provided by the designated State unit
                    for a period of time not to extend beyond 18
                    months, unless under special circumstances the
                    eligible individual and the rehabilitation
                    counselor or coordinator involved jointly agree
                    to extend the time in order to achieve the
                    employment outcome identified in the
                    individualized plan for employment.
              [(37)] (38) Transition services.--The term
            ``transition services'' means a coordinated set of
            activities for a student, designed within an outcome-
            oriented process, that promotes movement from school to
            post school activities, including postsecondary
            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
            experience, the development of employment and other
            post school adult living objectives, and, when
            appropriate, acquisition of daily living skills and
            functional vocational evaluation.
              (39) The term ``transition services expansion year''
            means--
                      (A) the first fiscal year for which the
                    amount appropriated under section 100(b)
                    exceeds the amount appropriated under section
                    100(b) for fiscal year 2004 by not less than
                    $100,000,000; and
                      (B) each fiscal year subsequent to that first
                    fiscal year.
              [(38)] (40) Vocational Rehabilitation Services.--The
            term ``vocational rehabilitation services'' means those
            services identified in section 103 which are provided
            to individuals with disabilities under this Act.
              [(39)] (41) Workforce investment activities.--The
            term ``workforce investment activities'' means
            workforce investment activities, as defined in section
            101 of the Workforce Investment Act of 1998, that are
            carried out under that Act.

               *       *       *       *       *       *       *

    SEC. 101. STATE PLANS.

        (a) Plan Requirements.--
              (1) In general.--

               *       *       *       *       *       *       *

              (15) Annual state goals and reports of progress.--
                      (A) Assessments and Estimates.--The State
                    plan shall--

               *       *       *       *       *       *       *

                                      (II) individuals with
                                    disabilities who are minorities
                                    and individuals with
                                    disabilities who have been
                                    unserved or underserved by the
                                    vocational rehabilitation
                                    program carried out under this
                                    title; [and]
                                      (III) individuals with
                                    disabilities served through
                                    other components of the
                                    statewide workforce investment
                                    system (other than the
                                    vocational rehabilitation
                                    program), as identified by such
                                    individuals and personnel
                                    assisting such individuals
                                    through the components; and
                              (IV) in a transition services
                            expansion year; students with
                            disabilities, including their need for
                            transition services;

               *       *       *       *       *       *       *

                      (D) Strategies.--The State plan shall contain
                    a description of the strategies the State will
                    use to address the needs identified in the
                    assessment conducted under subparagraph (A) and
                    achieve the goals and priorities identified in
                    subparagraph (C), including--
                              (i) * * *

               *       *       *       *       *       *       *

                              (iii) in a transition services
                            expansion year, the methods to be used
                            to improve and expand vocational
                            rehabilitation services for students
                            with disabilities, including the
                            coordination of services designed to
                            facilitate the transition of such
                            students from the receipt of
                            educational services in school to the
                            receipt of vocational rehabilitation
                            services under this title or to
                            postsecondary education or employment;
                              [(iii)] (iv) where necessary, the
                            plan of the State for establishing,
                            developing, or improving community
                            rehabilitation programs;
                              [(iv)] (v) strategies to improve the
                            performance of the State with respect
                            to the evaluation standards and
                            performance indicators established
                            pursuant to section 106; and
                              [(v)] (vi) strategies for assisting
                            entities carrying out other components
                            of the statewide workforce investment
                            system (other than the vocational
                            rehabilitation program) in assisting
                            individuals with disabilities.

               *       *       *       *       *       *       *

              (25) Services for students with disabilities.--The
            State plan for a transition services expansion year
            shall provide an assurance satisfactory to the
            Secretary that the State--
                      (A) has developed and implemented strategies
                    to address the needs identified in the
                    assessment described in paragraph (15), and
                    achieve the goals and priorities identified by
                    the State, to improve and expand vocational
                    rehabilitation services for students with
                    disabilities on a statewide basis in accordance
                    with paragraph (15); and
                      (B) from funds reserved under section 110A
                    shall carry out programs or activities designed
                    to improve and expand vocational rehabilitation
                    services for students with disabilities that--
                              (i) facilitate the transition of the
                            students with disabilities from the
                            receipt of educational services in
                            school, to the receipt of vocational
                            rehabilitation services under this
                            title, including, at a minimum, those
                            services specified in the interagency
                            agreement required in paragraph
                            (11)(D);
                              (ii) improve the achievement of post-
                            school goals of students with
                            disabilities, including improving the
                            achievement through participation in
                            meetings regarding individualized
                            education programs developed under
                            section 614 of the Individuals with
                            Disabilities Education Act (20 U.S.C.
                            1414);
                              (iii) provide vocational guidance,
                            career exploration services, and job
                            search skills and strategies and
                            technical assistance to students with
                            disabilities;
                              (iv) support the provision of
                            training and technical assistance to
                            State and local educational agency and
                            designated State agency personnel
                            responsible for the planning and
                            provision of services to students with
                            disabilities; and
                              (v) support outreach activities to
                            students with disabilities who are
                            eligible for, and need, services under
                            this title.

               *       *       *       *       *       *       *

    SEC. 103. VOCATIONAL REHABILITATION SERVICES.

        (a) Vocational Rehabilitation Services for Individuals.--

               *       *       *       *       *       *       *

              (1) * * *
              [(15) transition services for students with
            disabilities, that facilitate the achievement of the
            employment outcome identified in the individualized
            plan for employment;]
              (15) transition services for students with
            disabilities, that facilitate the achievement of the
            employment outcome identified in the individualized
            plan for employment, including, in a transition
            services expansion year, services described in clauses
            (i) through (iii) of section 101(a)(25)(B);

               *       *       *       *       *       *       *

        (b) Vocational Rehabilitation Services for Groups of
    Individuals.--Vocational rehabilitation services provided for
    the benefit of groups of individuals with disabilities may also
    include the following:
              (1) * * *

               *       *       *       *       *       *       *

              [(6) Consultative and technical assistance services
            to assist educational agencies in planning for the
            transition of students with disabilities from school to
            post-school activities, including employment.]
              (6)(A)(i) Consultation and technical assistance
            services to assist State and local educational agencies
            in planning for the transition of students with
            disabilities from school to post-school activities,
            including employment.
              (ii) In a transition services expansion year,
            training and technical assistance described in section
            101(a)(25)(B)(iv).
              (B) In a transition services expansion year, services
            for groups of individuals with disabilities who meet
            the requirements of clauses (i) and (iii) of section
            7(35)(A), including services described in clauses (i),
            (ii), (iii), and (v) of section 101(a)(25)(B), to
            assist in the transition from school to post-school
            activities.

               *       *       *       *       *       *       *

    SEC. 106. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

        (A) Establishment.--
              (1) In General.--
                      (A) Establishment of standards and
                    indicators.--

               *       *       *       *       *       *       *

                      [(C) Bases.--Effective July 1, 1999, to the
                    maximum extent practicable, the standards and
                    indicators shall be consistent with the core
                    indicators of performance established under
                    section 136(b) of the Workforce Investment Act
                    of 1998.
              [(2) Measures.--The standards and indicators shall
            include outcome and related measures of program
            performance that facilitate the accomplishment of the
            purpose and policy of this title.]
              (2) Measures.--The standards and indicators shall
            include outcome and related measures of program
            performance that--
                      (A) facilitate the accomplishment of the
                    purpose and policy of this title;
                      (B) to the maximum extent practicable, are
                    consistent with the core indicators of
                    performance, and corresponding State adjusted
                    levels of performance, established under
                    section 136(b) of the Workforce Investment Act
                    of 1998 (29 U.S.C. 2871(b)); and
                      (C) include measures of the program's
                    performance with respect to the transition to
                    post-school activities, and achievement of the
                    postschool goals, of students with disabilities
                    served under the program.

               *       *       *       *       *       *       *

                PART B--BASIC VOCATIONAL REHABILITATION SERVICES

                                STATE ALLOTMENTS

        Sec. 110. (a)(1) * * *

               *       *       *       *       *       *       *

    SEC. 110A. RESERVATION FOR EXPANDED TRANSITION SERVICES.

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

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