[Federal Register Volume 63, Number 71 (Tuesday, April 14, 1998)]
[Rules and Regulations]
[Pages 18290-18296]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9682]



[[Page 18289]]

_______________________________________________________________________

Part III





Department of Education





_______________________________________________________________________



34 CFR Part 303



Early Intervention Program for Infants and Toddlers With Disabilities; 
Final Rule



Office of Special Education and Rehabilitative Services; Part C of the 
Individuals with Disabilities Education Act (IDEA) Amendments of 1997; 
Proposed Rule

  Federal Register / Vol. 63, No. 71 / Tuesday, April 14, 1998 / Rules 
and Regulations  

[[Page 18290]]



DEPARTMENT OF EDUCATION

34 CFR Part 303

RIN 1820-AA97


Early Intervention Program for Infants and Toddlers With 
Disabilities

AGENCY: Office of Special Education and Rehabilitative Services, 
Department of Education.

ACTION: Final regulations.

-----------------------------------------------------------------------

SUMMARY: The Secretary amends the regulations governing the Early 
Intervention Program for Infants and Toddlers with Disabilities. These 
amendments are needed to conform the existing regulations to changes 
enacted in the Individuals with Disabilities Education Act Amendments 
of 1997.

DATES: These regulations take effect on July 1, 1998. However, affected 
parties do not have to comply with the information collection 
requirements in Secs. 303.100, 303.145, 303.148, 303.167, 303.344, 
303.361, 303.426, 303.601, 303.650, and 303.653 until the Department of 
Education publishes in the Federal Register the control numbers 
assigned by the Office of Management and Budget (OMB) to these 
information collection requirements. Publication of the control numbers 
in a separate final regulation notifies the public that OMB has 
approved these information collection requirements under the Paperwork 
Reduction Act of 1995.

FOR FURTHER INFORMATION CONTACT: JoLeta Reynolds or Thomas Irvin, U.S. 
Department of Education, 600 Independence Avenue, SW., Switzer 
Building, Room 3090, Washington, DC 20202. Telephone: (202) 205-5507. 
Individuals who use a telecommunications device for the deaf (TDD) may 
call (202) 205-5465.
    Individuals with disabilities may obtain this document in an 
alternate format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to Katie Mimcy, Director of the Alternate Formats 
Center. Telephone: (202) 205-8113.

SUPPLEMENTARY INFORMATION:

Background

    These regulations conform existing regulations to the amendments to 
the Early Intervention Program for Infants and Toddlers with 
Disabilities made by the Individuals with Disabilities Education Act 
(IDEA) Amendments of 1997, Public Law 105-17, enacted on June 4, 1997. 
The statutory amendments governing Part H take effect on July 1, 1998. 
One of those amendments transfers the Early Intervention Program from 
Part H of the IDEA to Part C. Because these regulations also take 
effect on July 1, 1998, we refer to the Early Intervention Program in 
these regulations as ``Part C'' of the IDEA.
    The Secretary is publishing in this issue of the Federal Register a 
Notice of request for advice and recommendations on regulatory issues 
regarding Part C of IDEA.
    These final regulations incorporate statutory amendments and remove 
obsolete regulatory provisions. However, on October 22, 1997, the 
Secretary published a notice of proposed rulemaking (NPRM) in the 
Federal Register (62 FR 55025) for Parts 300, 301, and 303, that 
contains proposed regulations of IDEA that were not affected by the 
IDEA Amendments of 1997. (See 62 FR 55053-55054, 55122-55123).

Significant Changes

    Although many of the statutory amendments reflected in these 
regulations make minor changes, several will have a significant impact 
on States. The following is a summary of the major statutory provisions 
incorporated in 34 CFR Part 303, the Department's regulations for the 
Early Intervention Program for Infants and Toddlers with Disabilities.

1. Policies and Procedures on Natural Environments

    The IDEA Amendments of 1997 added two provisions relating to the 
provision of early intervention services in natural environments. The 
first requires, as a component of each statewide system, policies and 
procedures to ensure that, to the maximum extent appropriate, early 
intervention services are provided in natural environments, and occur 
elsewhere only if early intervention cannot be achieved in a natural 
environment. This provision is reflected in Sec. 303.167(c) of these 
regulations. Because the components of the statewide system must be 
addressed in each State's application for funds under Part C, States 
must develop written policies and procedures for submission to the 
Department as part of each State's application for funds, and must 
implement those policies beginning on July 1, 1998. The second 
provision, found in Sec. 303.344(d)(1)(ii) of these regulations, 
requires that each individualized family service plan (IFSP) contain a 
statement of the natural environments in which services are to be 
provided and a justification of the extent, if any, to which the 
services will not be provided in a natural environment. In addition, 
the Secretary moves the definition of ``natural environments'' from 
Sec. 303.12(b) to a new Sec. 303.18 to make it easier to find.

2. Personnel Standards

    Section 303.361 is amended to implement two new statutory 
provisions that mirror changes regarding personnel made to the Part B 
program (Assistance to States for the Education of Children with 
Disabilities). The first provision, in section 635(a)(9) of the IDEA 
and added to these regulations as Sec. 303.361(f), allows 
paraprofessionals and assistants who are appropriately trained and 
supervised, under State law, regulations or policy, to be used to 
assist in the provision of early intervention services under this part. 
Also added, as Sec. 303.361(g), is the new provision from section 
635(b) of the IDEA that 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, 
including, in a geographic area where there is a shortage of those 
personnel, the most qualified individuals available who are making 
satisfactory progress toward completing applicable course work 
necessary to meeting State standards within three years.
    A State may exercise the option in Sec. 303.361(g) even though the 
State has reached its established date, under Sec. 303.361(c), for 
training or hiring all personnel in a specific profession or discipline 
to meet appropriate professional requirements in the State. As a 
practical matter, it is essential that a State have a mechanism for 
serving eligible children if service needs exceed available personnel 
who meet appropriate professional requirements in the State for a 
specific profession or discipline. A State that continues to have 
shortages of personnel meeting appropriate professional requirements in 
the State must address those shortages in its comprehensive system of 
personnel development under Sec. 303.360.
    If a State has established only one entry-level academic degree for 
employment of personnel in a specific profession, modification of that 
standard as necessary to ensure the provision of early intervention 
services to all eligible infants and toddlers in the State would not 
violate the provisions of Sec. 303.361(b) and (c).

3. Mediation

    Section 303.419 is added to these regulations to reflect the new 
statutory provisions of section 615(e) of the Act concerning mediation, 
made applicable

[[Page 18291]]

to Part C by section 639(a)(8) of the Act. These provisions include the 
general responsibility to establish and implement mediation procedures, 
specific requirements regarding the mediation process, and the 
statutory provision that requires parents who elect not to use 
mediation to meet with a disinterested party who would explain the 
benefits of mediation and encourage its use.
    With respect to Sec. 303.419(b)(2), regarding the list of qualified 
mediators, the House Committee Report on Public Law 105-17 includes the 
following statement:

    * * * the bill provides that the State shall maintain a list of 
individuals who are qualified mediators. The Committee intends that 
whenever such a mediator is not selected on a random basis from that 
list, both the parents and the agency are involved in selecting the 
mediator, and are in agreement with the individual who is selected * 
* *. Individuals who serve as mediators under part C of this bill 
are expected to be selected in the same manner described in this 
paragraph and to meet the same criteria of impartiality with respect 
to employment in the lead agency [which is prohibited] and not 
having a personal and professional conflict of interest. (H. Rep. 
No. 105-95, pp. 106-107 (1997)).

    High standards of impartiality will encourage the use of mediation 
by ensuring parties to a dispute the availability of an objective third 
party to mediate disputes.
    Section 615(e)(2)(A)(ii) of the Act provides that the mediation 
process shall not be used to deny or delay a parent's right to due 
process. In accordance with that provision, a public agency should not 
deny or delay a parent's right to a due process hearing based on a 
parent's failure to participate in the meeting described in 
Sec. 303.419(c)(1) of these regulations.
    With regard to the provision in Sec. 303.419(b)(6) that mediation 
discussions must be confidential and may not be used in any subsequent 
due process hearings or civil proceedings, the House Committee Report 
on Public Law 105-17 notes that ``nothing in this bill shall supersede 
any parental access rights under the Family Educational Rights and 
Privacy Act of 1974 or foreclose access to information otherwise 
available to the parties.'' (H. Rep. No. 105-95, p. 107 (1997)). The 
Report also includes an example of a confidentiality pledge, which 
makes clear that the intent of this provision is to protect discussions 
that occur in the mediation process from use in subsequent due process 
hearings and civil proceedings under the Act, and not to exempt from 
discovery, because it was disclosed during mediation, information that 
otherwise would be subject to discovery.

4. Payor of Last Resort

    Language is added to Sec. 303.527 to reflect the amendment to 
section 640 of the Act regarding the prohibition against using Part C 
funds to pay for services that would have been paid for from another 
source in the absence of Part C. The amendment specifically includes 
the CHAMPUS program as such a source of funds. As stated by the House 
Report accompanying the bill, ``[t]he bill clarifies that part C is 
truly the payor of last resort even for military families who are 
eligible for medical programs administered by the Department of 
Defense.'' (H. Rep. No.105-95, p.116 (1997)).

5. SICCs

    Section 641 of the Act made several changes regarding State 
Interagency Coordination Councils (SICCs). First, as reflected in 
Sec. 303.600, State discretion as to the number of members on SICCs has 
been increased, as Congress deleted the previous membership range. 
Second, Sec. 303.601 is amended to include additional required members 
of SICCs: At least one representative from a State Head Start agency or 
program, and at least one from a State agency responsible for child 
care. Third, two new provisions reflect statutory changes that expand 
the scope of SICCs' functions. New Sec. 303.650(c) authorizes SICCs to 
advise agencies regarding 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 services in that State. Finally, in Sec. 303.653, 
regarding the transition of toddlers with disabilities, SICCs are now 
required to give advice and assistance regarding transition not just of 
toddlers with disabilities who are eligible for Part B preschool 
services, but also transitions of all other toddlers, to any 
appropriate services.

Goals 2000: Educate America Act

    The Goals 2000: Educate America Act (Goals 2000) focuses the 
Nation's education reform efforts on the eight National Education Goals 
and provides a framework for meeting them. Goals 2000 promotes new 
partnerships to strengthen schools and expands the Department's 
capacities for helping communities to exchange ideas and obtain 
information needed to achieve the goals.
    These regulations address the National Education Goal that all 
children in America will start school ready to learn. The regulations 
further the objective of this goal by implementing a program that gives 
infants and toddlers with disabilities the services and support needed 
to prepare them to participate in school with their peers.

Waiver of Proposed Rulemaking

    In accordance with section 437 of the General Education Provisions 
Act (20 U.S.C. 1232) and the Administrative Procedure Act (5 U.S.C. 
553), it is the practice of the Secretary to offer interested parties 
the opportunity to comment on proposed regulations. However, these 
regulations merely reflect statutory changes and remove obsolete 
regulatory provisions. Removal of the regulations does not establish or 
affect substantive policy. Therefore, the Secretary has determined, 
under 5 U.S.C. 553(b)(B), that public comment is unnecessary and 
contrary to the public interest.

Regulatory Flexibility Act Certification

    The Secretary certifies that these regulations would not have a 
significant economic impact on a substantial number of small entities.
    Because these regulations would affect only States and State 
agencies, the regulations would not have an impact on small entities. 
States and State agencies are not defined as ``small entities'' in the 
Regulatory Flexibility Act.

Intergovernmental Review

    This program is subject to the requirements of Executive Order 
12372 and the regulations in 34 CFR Part 79. The objective of the 
Executive order is to foster an intergovernmental partnership and a 
strengthened federalism by relying on processes developed by State and 
local governments for coordination and review of proposed Federal 
financial assistance.
    In accordance with the order, this document is intended to provide 
early notification of the Department's specific plans and actions for 
this program.

Electronic Access to This Document

    Anyone may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or 
portable document format (pdf) on the World Wide Web at either of the 
following sites:

http://gcs.ed.gov/fedreg.htm
http://www.ed.gov/news.html

To use the pdf you must have the Adobe Acrobat Reader Program with 
Search, which is available free at either of the

[[Page 18292]]

previous sites. If you have questions about using the pdf, call the 
U.S. Government Printing Office toll free at 1-888-293-6498.
    Anyone may also view these documents in text copy only on an 
electronic bulletin board of the Department. Telephone: (202) 219-1511 
or, toll free, 1-800-222-4922. The documents are located under Option 
G--Files/Announcements, Bulletins and Press Releases.

    Note: The official version of this document is the document 
published in the Federal Register.

List of Subjects in 34 CFR Part 303

    Education of individuals with disabilities, Grant programs--
education, Infants and toddlers, Reporting and recordkeeping 
requirements.

(Catalog of Federal Domestic Assistance Number: 84.181 Early 
Intervention Program for Infants and Toddlers with Disabilities)

    Dated: April 7, 1998.
Judith E. Heumann,
Assistant Secretary for Special Education and Rehabilitative Services.

    The Secretary amends part 303 of title 34 of the Code of Federal 
Regulations as follows:

PART 303--EARLY INTERVENTION PROGRAM FOR INFANTS AND TODDLERS WITH 
DISABILITIES

    1. The authority citation for part 303 is revised to read as 
follows:

    Authority: 20 U.S.C. 1431-1445, unless otherwise noted.

    2. In the table below, for each section listed in the left column, 
remove the authority citation following the section listed in the 
middle column, and add the authority citation listed in the right 
column:

----------------------------------------------------------------------------------------------------------------
            Section                    Remove                                     Add                           
----------------------------------------------------------------------------------------------------------------
303.1.........................  20 U.S.C. 1471......  20 U.S.C. 1431.                                           
303.2.........................  20 U.S.C.             20 U.S.C. 1401(27), 1443.                                 
                                 1401(a)(6), 1484.                                                              
303.7.........................  20 U.S.C. 1472(1)...  20 U.S.C. 1432(5).                                        
303.8.........................  20 U.S.C. 1472(4)...  20 U.S.C. 1432(2).                                        
303.9.........................  20 U.S.C. 1471-1485.  20 U.S.C. 1431-1445.                                      
303.10........................  20 U.S.C. 1472(3)...  20 U.S.C. 1432(3).                                        
303.11........................  20 U.S.C. 1471-1485.  20 U.S.C. 1431-1445.                                      
303.12........................  20 U.S.C.             20 U.S.C. 1401(1) and (2); 1432(4).                       
                                 1401(a)(25) and                                                                
                                 (a)(26), 1472(2);                                                              
                                 H.R.Rep.No.198,                                                                
                                 102d Cong., 1st                                                                
                                 Sess. 14 (1991);                                                               
                                 S.Rep. No.84, 102d                                                             
                                 Cong., 1st Sess. 21-                                                           
                                 22 (1991)..                                                                    
303.13........................  20 U.S.C. 1472(2)...  20 U.S.C. 1432(4).                                        
303.14........................  20 U.S.C. 1477......  20 U.S.C. 1436.                                           
303.15........................  20 U.S.C. 1471-1485.  20 U.S.C. 1431-1445.                                      
303.16........................  20 U.S.C. 1472(1)...  20 U.S.C. 1432(5).                                        
303.17........................  20 U.S.C.             20 U.S.C. 1435(a)(3), 1436(a).                            
                                 1476(b)(3), 1477(a).                                                           
303.18........................  20 U.S.C. 1477......  20 U.S.C. 1436.                                           
303.19........................  20 U.S.C. 1471-1485.  20 U.S.C. 1431-1445.                                      
303.20........................  20 U.S.C. 1471-1485.  20 U.S.C. 1431-1445.                                      
303.21........................  20 U.S.C. 1472(2)...  20 U.S.C. 1432(4).                                        
303.22........................  20 U.S.C. 1472(2)...  20 U.S.C. 1432(4).                                        
303.23........................  20 U.S.C. 1401(a)(6)  20 U.S.C. 1401(27).                                       
303.24........................  20 U.S.C. 1471-1485.  20 U.S.C. 1431-1445.                                      
303.101.......................  20 U.S.C. 1478......  20 U.S.C. 1437.                                           
303.110.......................  20 U.S.C. 1478(a)(4)  20 U.S.C. 1437(a)(3).                                     
303.111.......................  20 U.S.C.             20 U.S.C. 1437(a)(7).                                     
                                 1478(a)(4)(A).                                                                 
303.112.......................  20 U.S.C. 1478(a)(4)  20 U.S.C. 1437(a)(7).                                     
303.120.......................  20 U.S.C. 1478(b)...  20 U.S.C. 1437(b).                                        
303.121.......................  20 U.S.C. 1478(b)(4)  20 U.S.C. 1437(b)(4).                                     
303.122.......................  20 U.S.C. 1478(b)(3)  20 U.S.C. 1437(b)(3).                                     
303.123.......................  20 U.S.C.             20 U.S.C. 1437(b)(5)(A).                                  
                                 1478(b)(5)(A).                                                                 
303.124.......................  20 U.S.C.             20 U.S.C. 1437(b)(5)(B).                                  
                                 1478(b)(5)(B).                                                                 
303.125.......................  20 U.S.C. 1478(b)(6)  20 U.S.C. 1437(b)(6).                                     
303.126.......................  20 U.S.C. 1478(b)(2)  20 U.S.C. 1437(b)(2).                                     
303.127.......................  20 U.S.C. 1478(b)(1)  20 U.S.C. 1437(b)(1).                                     
303.128.......................  20 U.S.C. 1478(b)(7)  20 U.S.C. 1437(b)(7).                                     
303.141.......................  20 U.S.C. 1478(a)(3)  20 U.S.C. 1437(a)(3).                                     
303.142.......................  20 U.S.C. 1478(a)(1)  20 U.S.C. 1437(a)(1).                                     
303.143.......................  20 U.S.C. 1478(a)(2)  20 U.S.C. 1437(a)(2).                                     
303.144.......................  20 U.S.C. 1478(a)(4)  20 U.S.C. 1437(a)(3).                                     
303.145.......................  20 U.S.C. 1478(a)(4)  20 U.S.C. 1437(a)(3) and (a)(5).                          
                                 and (a)(6).                                                                    
303.146.......................  20 U.S.C. 1478(a)(5)  20 U.S.C. 1437(a)(7).                                     
303.148.......................  20 U.S.C. 1478(a)(8)  20 U.S.C. 1437(a)(8).                                     
303.160.......................  20 U.S.C. 1476(a),    20 U.S.C. 1435(a), 1437(a)(9).                            
                                 1478(a)(9).                                                                    
303.161.......................  20 U.S.C. 1476(b)(1)  20 U.S.C. 1435(a)(1).                                     
303.162.......................  20 U.S.C. 1476(b)(7)  20 U.S.C. 1435(a)(7).                                     
303.164.......................  20 U.S.C. 1476(b)(6)  20 U.S.C. 1435(a)(6).                                     
303.165.......................  20 U.S.C. 1476(b)(5)  20 U.S.C. 1435(a)(5).                                     
303.166.......................  20 U.S.C.             20 U.S.C. 1435(a)(3); 1436(a)(1), (d)(2), and (d)(3).     
                                 1476(b)(3);                                                                    
                                 1477(a)(1), (d)(2),                                                            
                                 and (d)(3).                                                                    
303.167.......................  20 U.S.C.             20 U.S.C. 1435(a)(4), 1436(d).                            
                                 1476(b)(4), 1477(d).                                                           
303.168.......................  20 U.S.C. 1476(b)(8)  20 U.S.C. 1435(a)(8).                                     
303.169.......................  20 U.S.C.             20 U.S.C. 1435(a)(9).                                     
                                 1476(b)(13).                                                                   
303.170.......................  20 U.S.C.             20 U.S.C. 1435(a)(13).                                    
                                 1476(b)(12).                                                                   
303.171.......................  20 U.S.C. 1476        20 U.S.C. 1435(a)(10)(A).                                 
                                 (b)(9)(A).                                                                     
303.172.......................  20 U.S.C. 1476(b)(9)  20 U.S.C. 1435(a)(10).                                    
303.173.......................  20 U.S.C.             20 U.S.C. 1435(a)(10)(D) and (E), 1435(a)(12), 1440.      
                                 1476(b)(9)(D) and                                                              
                                 (b)(d)(E),                                                                     
                                 1476(b)(11), 1481.                                                             

[[Page 18293]]

                                                                                                                
303.174.......................  20 U.S.C.             20 U.S.C. 1435(a)(10)(E) and (F).                         
                                 1476(b)(9)(E).                                                                 
303.175.......................  20 U.S.C.             20 U.S.C. 1435(a)(11).                                    
                                 1476(b)(10).                                                                   
303.176.......................  20 U.S.C.             20 U.S.C. 1435(a)(14).                                    
                                 1476(b)(14).                                                                   
303.180.......................  20 U.S.C. 1484(b);    20 U.S.C. 1443(b).                                        
                                 H.R. Rep. No. 198,                                                             
                                 102d Cong., 1st                                                                
                                 Sess.22 (1991).                                                                
303.200.......................  20 U.S.C. 1484(c)...  20 U.S.C. 1443(c).                                        
303.201.......................  20 U.S.C. 1484(d)...  20 U.S.C. 1443(d).                                        
303.202.......................  20 U.S.C. 1484(c)(1)  20 U.S.C. 1443(c)(2).                                     
303.203.......................  20 U.S.C. 1484(b)...  20 U.S.C. 1443(b).                                        
303.300.......................  20 U.S.C. 1472(1),    20 U.S.C. 1432(5), 1435(a)(1).                            
                                 1476(b)(1).                                                                    
303.301.......................  20 U.S.C. 1476(b)(7)  20 U.S.C. 1435(a)(7).                                     
303.320.......................  20 U.S.C. 1476(b)(6)  20 U.S.C. 1435(a)(6).                                     
303.321.......................  20 U.S.C.             1432(4)(E)(vii), 1435(a)(5).                              
                                 1472(2)(E)(vii),                                                               
                                 1476(b)(5).                                                                    
303.322.......................  20 U.S.C.             20 U.S.C. 1435(a)(3); 1436(a)(1), (a)(2), (d)(1), and     
                                 1476(b)(3);           (d)(2).                                                  
                                 1477(a)(1), (a)(2),                                                            
                                 (d)(1), and (d)(2).                                                            
303.323.......................  20 U.S.C.             20 U.S.C. 1435(a)(3); 1436(a)(1), (d)(2), and (d)(3).     
                                 1476(b)(3);                                                                    
                                 1477(a)(1), (d)(2),                                                            
                                 and (sic).                                                                     
303.340.......................  20 U.S.C. 1477......  20 U.S.C. 1436.                                           
303.342.......................  20 U.S.C. 1477......  20 U.S.C. 1436.                                           
303.343.......................  20 U.S.C. 1477(b)...  20 U.S.C. 1436(b).                                        
303.344.......................  20 U.S.C. 1477(d)...  20 U.S.C. 1436(d).                                        
303.345.......................  20 U.S.C. 1477(c)...  20 U.S.C. 1436(c).                                        
303.346.......................  20 U.S.C. 1477......  20 U.S.C. 1436.                                           
303.360.......................  20 U.S.C. 1476(b)(8)  20 U.S.C. 1435(a)(8).                                     
303.361.......................  20 U.S.C.             20 U.S.C. 1435(a)(9).                                     
                                 1476(b)(13).                                                                   
303.400.......................  20 U.S.C. 1480......  20 U.S.C. 1439.                                           
303.401.......................  20 U.S.C. 1480......  20 U.S.C. 1439.                                           
303.402.......................  20 U.S.C. 1480(4)...  20 U.S.C. 1439(a)(4).                                     
303.404.......................  20 U.S.C. 1480......  20 U.S.C. 1439.                                           
303.405.......................  20 U.S.C. 1480(3)...  20 U.S.C. 1439(a)(3).                                     
303.406.......................  20 U.S.C. 1480(5)...  20 U.S.C. 1439(a)(5).                                     
303.420.......................  20 U.S.C. 1480(1)...  20 U.S.C. 1439(a)(1).                                     
303.421.......................  20 U.S.C. 1480(1)...  20 U.S.C. 1439(a)(1).                                     
303.422.......................  20 U.S.C. 1480......  20 U.S.C. 1439.                                           
303.423.......................  20 U.S.C. 1480(1)...  20 U.S.C. 1439(a)(1).                                     
303.424.......................  20 U.S.C. 1480(1)...  20 U.S.C. 1439(a)(1).                                     
303.425.......................  20 U.S.C. 1480(7)...  20 U.S.C. 1439(a)(7).                                     
303.460.......................  20 U.S.C. 1480(2),    20 U.S.C. 1439(a)(2), 1442.                               
                                 1483.                                                                          
303.500.......................  20 U.S.C. 1476(b)(9)  20 U.S.C. 1435(a)(10).                                    
303.501.......................  20 U.S.C.             20 U.S.C. 1435(a)(10)(A).                                 
                                 1476(b)(9)(A).                                                                 
303.521.......................  20 U.S.C. 1472(2)...  20 U.S.C. 1432(4).                                        
303.522.......................  20 U.S.C.             20 U.S.C. 1435(a)(10)(B).                                 
                                 1476(b)(9)(B).                                                                 
303.523.......................  20 U.S.C.             20 U.S.C. 1435(a)(10)(C) and (a)(10)(F).                  
                                 1476(b)(9)(C) and                                                              
                                 (b)(9)(F).                                                                     
303.524.......................  20 U.S.C.             20 U.S.C. 1435(a)(10)(C) and (a)(10)(E).                  
                                 1476(b)(9)(C) and                                                              
                                 (b)(9)(E).                                                                     
303.525.......................  20 U.S.C.             20 U.S.C. 1435(a)(10)(D).                                 
                                 1476(b)(9)(D).                                                                 
303.526.......................  20 U.S.C.             20 U.S.C. 1435(a)(11).                                    
                                 1476(b)(10).                                                                   
303.527.......................  20 U.S.C. 1481......  20 U.S.C. 1440.                                           
303.528.......................  20 U.S.C.             20 U.S.C. 1435(a)(12).                                    
                                 1476(b)(11).                                                                   
303.540.......................  20 U.S.C.             20 U.S.C. 1435(a)(14).                                    
                                 1476(b)(14).                                                                   
303.560.......................  20 U.S.C. 1473,       20 U.S.C. 1433, 1435(a)(10).                              
                                 1476(b)(9).                                                                    
303.600.......................  20 U.S.C. 1482(a)...  20 U.S.C. 1441(a).                                        
303.601.......................  20 U.S.C. 1482(b)...  20 U.S.C. 1441(b).                                        
303.602.......................  20 U.S.C. 1479,       20 U.S.C. 1438, 1441(c) and (d).                          
                                 1482(c) and (d).                                                               
303.603.......................  20 U.S.C. 1482(c)     20 U.S.C. 1441(c) and (d).                                
                                 and (d).                                                                       
303.604.......................  20 U.S.C. 1482(f)...  20 U.S.C. 1441(f).                                        
303.650.......................  20 U.S.C.             20 U.S.C. 1441(e)(1)(A) and (e)(2).                       
                                 1482(e)(1)(A) and                                                              
                                 (e)(2).                                                                        
303.651.......................  20 U.S.C.             20 U.S.C. 1441(e)(1)(A).                                  
                                 1482(e)(1)(A).                                                                 
303.652.......................  20 U.S.C.             20 U.S.C. 1441(e)(1)(B).                                  
                                 1482(e)(1)(B).                                                                 
303.653.......................  20 U.S.C.             20 U.S.C. 1441(e)(1)(C).                                  
                                 1482(e)(1)(C).                                                                 
303.654.......................  20 U.S.C.             20 U.S.C. 1441(e)(1)(D).                                  
                                 1482(e)(1)(D).                                                                 
----------------------------------------------------------------------------------------------------------------

    3. In Part 303 revise all references to ``Part H'' to read ``Part 
C''.


Sec. 303.1  [Amended]

    4. Section 303.1(a) is amended by removing the word ``Develop'' and 
adding, in its place, the word ``Maintain''.


Sec. 303.2  [Amended]

    5. Section 303.2 is amended by adding a period after ``Mariana 
Islands'' and removing the remainder of the sentence.
    6. Section 303.3 is amended by removing ``plan, develop,'' and 
adding, in its place, the word ``maintain'' in paragraph (a); and by 
adding a new paragraph (e) and revising the authority citation 
following the section to read as follows:


Sec. 303.3  Activities that may be supported under this part.

* * * * *
    (e) To strengthen the statewide system by initiating, expanding, or 
improving collaborative efforts related to at-risk infants and 
toddlers, including establishing linkages with appropriate

[[Page 18294]]

public or private community-based organizations, services, and 
personnel for the purpose of--
    (1) Identifying and evaluating at-risk infants and toddlers;
    (2) Making referrals of the infants and toddlers identified and 
evaluated under paragraph (e)(1) of this section; and
    (3) Conducting periodic follow-up on each referral under paragraph 
(e)(2) of this section 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.

(Authority: 20 U.S.C. 1433 and 1438)


Sec. 303.5  [Amended]

    7. Section 303.5 is amended by removing ``; and'' at the end of 
paragraph (a)(1)(vii), and adding, in its place, a period; and by 
removing paragraph (a)(1)(viii).


Sec. 303.12  [Amended]

    8. Section 303.12 is amended by removing paragraph (b)(2) and 
removing the paragraph designation ``(1)'' in paragraph (b).


Secs. 303.18-303.24  [Redesignated]

    9. Sections 303.18 through 303.24 are redesignated as Secs. 303.19 
through 303.25, respectively.
    10. A new Sec. 303.18 is added to read as follows:


Sec. 303.18  Natural environments.

    As used in this part, natural environments means settings that are 
natural or normal for the child's age peers who have no disabilities.

(Authority: 20 U.S.C. 1435 and 1436)


Sec. 303.20  [Amended]

    11. Redesignated Sec. 303.20(b)(1) is amended by removing the words 
``develop and implement'', and adding, in their place, the word 
``maintain''; and by removing ``303.150'', and adding, in its place, 
``303.140''.


Sec. 303.24  [Amended]

    12-13. Redesignated Sec. 303.24 is amended by adding a period after 
``Mariana Islands'' and removing the remainder of the sentence.
    14. Section 303.100 is revised to read as follows:


Sec. 303.100  Conditions of assistance.

    (a) In order to receive funds under this part for any fiscal year, 
a State must have--
    (1) An approved application that contains the information required 
in this part, including--
    (i) The information required in Secs. 303.140 through 303.148; and
    (ii) The information required in Secs. 303.161 through 303.176; and
    (2) The statement of assurances required under Secs. 303.120 
through 303.128, on file with the Secretary.
    (b) If a State has on file with the Secretary a policy, procedure, 
or assurance that demonstrates that the State meets an application 
requirement, including any policy or procedure filed under this part 
before July 1, 1998, that meets such a requirement, the Secretary 
considers the State to have met that requirement for purposes of 
receiving a grant under this part.
    (c) An application that meets the requirements of this part remains 
in effect until the State submits to the Secretary modifications of 
that application.
    (d) The Secretary may require a State to modify its application 
under this part to the extent necessary to ensure the State's 
compliance with this part if--
    (1) An amendment is made to the Act, or to a regulation under this 
part;
    (2) A new interpretation is made to the Act 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.

(Authority: 20 U.S.C. 1434 and 1437)


Sec. 303.111  [Amended]

    15. Section 303.111 is amended by adding ``, including individuals 
with disabilities and parents of infants and toddlers with 
disabilities,'' after the word ``public'' in paragraph (a); and by 
removing ``part H'', and adding, in its place, ``part C'' in paragraph 
(b)(1).
    16. Section 303.113 is amended by revising the heading, revising 
paragraph (b), and revising the authority citation following the 
section to read as follows:


Sec. 303.113  Reviewing public comments received.

* * * * *
    (b) Submission to the Secretary. In submitting the State's 
application or policy to the Secretary, the lead agency shall include 
copies of news releases, advertisements, and announcements used to 
provide notice to the general public, including individuals with 
disabilities and parents of infants and toddlers with disabilities.

(Authority: 20 U.S.C. 1437(a)(7))


Sec. 303.124  [Amended]

    17. Section 303.124(a) is amended by removing the words ``and 
increase'' after the word ``supplement''.
    18. Section 303.140 is revised to read as follows:


Sec. 303.140  General.

    A State's application under this part must contain information and 
assurances demonstrating to the satisfaction of the Secretary that--
    (a) The statewide system of early intervention services required in 
this part is in effect; and
    (b) A State policy is in effect that ensures that appropriate early 
intervention services are available to all infants and toddlers with 
disabilities and their families, including Indian infants and toddlers 
with disabilities and their families residing on a reservation 
geographically located in the State.

(Authority: 20 U.S.C. 1434 and 1435(a)(2))


Sec. 303.144  [Amended]

    19. Section 303.144 is amended by removing ``plan, develop,'' and 
adding, in its place, ``maintain''.
    20. Section 303.145 is amended by removing ``(d)'' in paragraph 
(a), and adding, in its place, ``(e)''; adding ``including a 
description of any services provided to at-risk infants and toddlers as 
defined in Sec. 303.16(b), and their families,'' in paragraph (d)(1) 
before the word ``consistent''; redesignating paragraph (e) as 
paragraph (f); and adding a new paragraph (e) to read as follows:


Sec. 303.145  Description of use of funds.

* * * * *
    (e) At-risk infants and toddlers. For any State that does not 
provide direct services for at-risk infants and toddlers described in 
paragraph (d)(1) of this section, but chooses to use funds as described 
in Sec. 303.3(e), each application must include a description of how 
those funds will be used.
* * * * *
    21. Section 303.147 is revised to read as follows:


Sec. 303.147  Services to all geographic areas.

    Each application must include a description of the procedure used 
to ensure that resources are made available under this part for all 
geographic areas within the State.

(Authority: 20 U.S.C. 1437(a)(6))

    22. Section 303.148 is amended by revising the undesignated 
introductory text, paragraph (a), and paragraph (b); and, in note 1 
following the authority citation, adding a period after the word 
``agencies'' in the first bullet and removing the remainder of the 
sentence, adding a period after the word ``children'' in the second 
bullet and removing the remainder of the sentence, and removing 
``sections 613(a)(15) and 614(a)(5) of the Act'' and adding, in its

[[Page 18295]]

place, ``section 612(a)(9) of the Act'' in the third bullet; and 
removing note 2 following the authority citation; to read as follows:


Sec. 303.148  Transition to preschool programs.

    Each application must include a description of the policies and 
procedures to be used to ensure a smooth transition for children 
receiving early intervention services under this part to preschool or 
other appropriate services, including--
    (a) A description of how the families will be included in the 
transition plans;
    (b) A description of how the lead agency under this part will--
    (1) Notify the local educational agency for the area in which the 
child resides that the child will shortly reach the age of eligibility 
for preschool services under Part B of the Act, as determined in 
accordance with State law;
    (2)(i) In the case of a child who may be eligible for preschool 
services under Part B of the Act, 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 
the parties, up to 6 months, before the child is eligible for the 
preschool services, to discuss any services that the child may receive; 
or
    (ii) In the case of a child who may not be eligible for preschool 
services under Part B of the Act, 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;
    (3) Review the child's program options for the period from the 
child's third birthday through the remainder of the school year; and
    (4) Establish a transition plan; and
* * * * *
    23. Sections 303.149 through 303.155 and the undesignated center 
heading preceding Sec. 303.149 are removed.
    24. The undesignated center heading preceding Sec. 303.160 is 
amended by removing ``for years four, five, and thereafter''.


Sec. 303.160  [Amended]

    25. Section 303.160 is amended by removing the words ``on 
reservations'' and adding, in their place, the words ``and their 
families residing on a reservation geographically located in the 
State''.


Sec. 303.163  [Removed and Reserved]

    26. Section 303.163 is removed and reserved.
    27. Section 303.167 is amended by revising paragraph (a); removing 
the period at the end of paragraph (b)(2), and adding, in its place, 
``; and''; and adding a new paragraph (c) to read as follows:


Sec. 303.167  Individualized family service plans.

* * * * *
    (a) An assurance that a current IFSP is in effect and implemented 
for each eligible child and the child's family;
* * * * *
    (c) Policies and procedures to ensure that--
    (1) To the maximum extent appropriate, early intervention services 
are provided in natural environments; and
    (2) The provision of early intervention services for any infant or 
toddler occurs in a setting other than a natural environment only if 
early intervention cannot be achieved satisfactorily for the infant or 
toddler in a natural environment.


Sec. 303.170  [Amended]

    28. Section 303.170 is amended by removing ``303.420'' and adding, 
in its place, ``303.419'' in paragraph (a); and inserting ``303.419,'' 
before ``303.420(b)'' in paragraph (b)(2).
    29. Section 303.204 is amended by designating the existing text as 
paragraph (a), adding a new paragraph (b), and revising the authority 
citation following the section to read as follows:


Sec. 303.204  Payments to the jurisdictions.

* * * * *
    (b) The provisions of Pub. L. 95-134, permitting the consolidation 
of grants to the outlying areas, do not apply to funds provided under 
paragraph (a) of this section.

(Authority: 20 U.S.C. 1443(a))


Sec. 303.205  [Removed]

    30. Section 303.205 is removed.


Sec. 303.302  [Amended]

    31. Section 303.302 and the note following the section are removed.


Sec. 303.320  [Amended]

    32. Section 303.320 is amended by removing the words ``of 
information materials'' in the undesignated introductory text, and 
adding, in their place, ``, especially hospitals and physicians, of 
materials''.


Sec. 303.321  [Amended]

    33. Section 303.321 is amended by adding a period after the word 
``services'' the first place it appears in paragraph (b)(2) and 
removing the remainder of the sentence.


Sec. 303.322  [Amended]

    34. Section 303.322 is amended by removing the words ``including 
assessment activities related to the child and the child's family'' in 
paragraph (a)(1) and adding, in their place, ``and a family-directed 
identification of the needs of each child's family to appropriately 
assist in the development of the child''; removing the words ``related 
to enhancing the development of the child'' in paragraph (d)(1), and 
adding, in their place, ``and the identification of the supports and 
services necessary to enhance the family's capacity to meet the 
developmental needs of the child''; and removing the note following the 
section.


Sec. 303.341  [Removed and Reserved]

    35. Section 303.341 is removed and reserved.


Sec. 303.344  [Amended]

    36. Section 303.344(d)(1)(ii) is amended by adding ``Sec. 303.18'' 
after ``Sec. 303.12(b)'' and adding ``, and a justification of the 
extent, if any, to which the services will not be provided in a natural 
environment'' after ``provided''.


Sec. 303.360  [Amended]

    37. Section 303.360 is amended by adding ``and inner-city'' after 
the word ``rural'' in paragraph (c)(3); and adding ``or to other 
preschool or other appropriate services'' after the word ``Act'' in 
paragraph (c)(4).
    38. Section 303.361 is amended by adding new paragraphs (f) and (g) 
to read as follows:


Sec. 303.361  Personnel standards.

* * * * *
    (f) A State may allow 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 eligible children under this part.
    (g) In implementing this section, 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 eligible children, including, in a geographic 
area of the State where there is a shortage of personnel that meet 
these qualifications, the most qualified individuals available who are 
making satisfactory progress toward completing applicable course work 
necessary to meet the standards described in paragraph (b)(2) of this

[[Page 18296]]

section, consistent with State law, within three years.
    39. Section 303.406 is amended by revising paragraph (d)(1) to read 
as follows:


Sec. 303.406  Surrogate parents.

* * * * *
    (d) * * *
    (1) A person assigned as a surrogate parent may not be--
    (i) An employee of any State agency; or
    (ii) A person or an employee of a person providing early 
intervention services to the child or to any family member of the 
child.
* * * * *
    40. The undesignated center heading preceding Sec. 303.420 is 
revised to read ``Mediation and Due Process Procedures for Parents and 
Children''.
    41. A new Sec. 303.419 is added following the undesignated center 
heading to read as follows:


Sec. 303.419  Mediation.

    (a) General. Each State shall ensure that procedures are 
established and implemented to allow parties to disputes involving any 
matter described in Sec. 303.403(a) to resolve the disputes through a 
mediation process which, at a minimum, must be available whenever a 
hearing is requested under Sec. 303.420. The lead agency may either use 
the mediation system established under Part B of the Act or establish 
its own system.
    (b) Requirements. The procedures must meet the following 
requirements:
    (1) The procedures must 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 Sec. 303.420, or to deny any other rights afforded under 
Part C of the Act; and
    (iii) Is conducted by a qualified and impartial mediator who is 
trained in effective mediation techniques.
    (2) 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.
    (3) The State shall bear the cost of the mediation process, 
including the costs of meetings described in paragraph (c) of this 
section.
    (4) Each session in the mediation process must be scheduled in a 
timely manner and must be held in a location that is convenient to the 
parties to the dispute.
    (5) An agreement reached by the parties to the dispute in the 
mediation process must be set forth in a written mediation agreement.
    (6) Discussions that occur during the mediation process must 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 the process.
    (c) Meeting to encourage mediation. A State may establish 
procedures to require parents who elect not to use the mediation 
process to meet, at a time and location convenient to the parents, with 
a disinterested party--
    (1) Who is under contract with a parent training and information 
center or community parent resource center in the State established 
under sections 682 or 683 of the Act, or an appropriate alternative 
dispute resolution entity; and
    (2) Who would explain the benefits of the mediation process and 
encourage the parents to use the process.

(Authority: 20 U.S.C. 1415(e) and 1439(a)(8))


Sec. 303.420  [Amended]

    42. Section 303.420 is amended by revising the heading to read 
``Due process procedures.''; adding ``including procedures for 
mediation as described in Sec. 303.419,'' after the words ``written 
procedures'' in the undesignated introductory text; adding ``mediation 
and'' before ``due process'' in paragraph (a); adding ``Sec. 303.419 
and'' before ``Sec. 303.421'' in paragraph (b)(1); and, in note 2 
following the section, removing the second and third paragraphs.


Sec. 303.424  [Amended]

    43-45. Section 303.424 is revised by removing ``section 680(1) of 
the Act'' and adding, in its place, ``section 639(a)(1) of the Act.''


Sec. 303.522  [Amended]

    46. Section 303.522 is amended by removing paragraph (b)(5) and 
redesignating paragraphs (b)(6) and (7) as paragraphs (b)(5) and (6), 
respectively.


Sec. 303.527  [Amended]

    47. Section 303.527 is amended by removing ``but for the enactment 
of Part H of the Act'' in paragraph (a), and adding, in its place, ``, 
including any medical program administered by the Secretary of Defense, 
but for the enactment of Part C of the Act''.
    48. Section 303.540 is amended by revising paragraph (a)(2) to read 
as follows:


Sec. 303.540  Data collection.

    (a) * * *
    (2) Provide for reporting data required under section 618 of the 
Act that relates to this part.
* * * * *
    49. Section 303.600 is amended by revising paragraph (a) to read as 
follows:


Sec. 303.600  Establishment of Council.

    (a) A State that desires to receive financial assistance under this 
part shall establish a State Interagency Coordinating Council.
* * * * *
    50. Section 303.601 is amended by revising paragraph (a)(7) and 
adding new paragraphs (a)(8) and (9) to read as follows:


Sec. 303.601  Composition.

    (a) * * *
    (7) At least one member must be from the agency responsible for the 
State governance of health insurance.
    (8) At least one member must be from a Head Start agency or program 
in the State.
    (9) At least one member must be from a State agency responsible for 
child care.
* * * * *


Sec. 303.602  [Amended]

    51. Section 303.602 is amended by removing the word ``by'' in 
paragraph (a) introductory text, and adding, in its place, the word 
``of''.
    52. Section 303.650 is amended by adding a new paragraph (c) to 
read as follows:


Sec. 303.650  General.

* * * * *
    (c) Each 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.


Sec. 303.653  [Amended]

    53. Section 303.653 is amended by adding ``preschool and other 
appropriate services.'' after the word ``to'' and removing the 
remainder of the sentence.


Sec. 303.670  [Amended]

    54. Section 303.670 and the preceding undesignated center heading 
are removed.

[FR Doc. 98-9682 Filed 4-13-98; 8:45 am]
BILLING CODE 4000-01-P