H. Rept. 108-77 - 108th Congress (2003-2004)
April 29, 2003, As Reported by the Education and the Workforce Committee

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House Report 108-77 - IMPROVING EDUCATION RESULTS FOR CHILDREN WITH DISABILITIES ACT OF 2003




[House Report 108-77]
[From the U.S. Government Printing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     108-77
==============================================================
 
 IMPROVING EDUCATION RESULTS FOR CHILDREN WITH DISABILITIES ACT OF 2003

                                _______
                                

 April 29, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Boehner, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1350]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 1350) to reauthorize the Individuals 
with Disabilities Education Act, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Improving Education Results for 
Children With Disabilities Act of 2003''.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. SECTIONS 601 THROUGH 603 OF THE INDIVIDUALS WITH DISABILITIES 
                    EDUCATION ACT.

  Sections 601 through 603 of the Individuals with Disabilities 
Education Act (20 U.S.C. 1400-1402) are amended to read as follows:

``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.

  ``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, enforcement, withholding, and judicial review.
``Sec. 617. Administration.
``Sec. 618. Program information.
``Sec. 619. Preschool grants.

            ``Part C--Infants and Toddlers with Disabilities

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

  ``Part D--National Activities To Improve Education of Children With 
                              Disabilities

``Sec. 651. Findings.

            ``SUBPART 1--STATE PROFESSIONAL DEVELOPMENT GRANTS

``Sec. 652. Purpose.
``Sec. 653. Eligibility and collaborative process.
``Sec. 654. Applications.
``Sec. 655. Use of funds.
``Sec. 656. State grant amounts.
``Sec. 657. Authorization of appropriations.

    ``SUBPART 2--SCIENTIFICALLY BASED RESEARCH; TECHNICAL ASSISTANCE; 
    MODEL DEMONSTRATION PROJECTS; DISSEMINATION OF INFORMATION; AND 
                     PERSONNEL PREPARATION PROGRAMS

``Sec. 661. Purpose.
``Sec. 662. Administrative provisions.
``Sec. 663. Research to improve results for children with disabilities.
``Sec. 664. Technical assistance, demonstration projects, dissemination 
of information, and implementation of scientifically based research.
``Sec. 665. Personnel preparation programs to improve services and 
results for children with disabilities.
``Sec. 666. Studies and evaluations.
``Sec. 667. Authorization of appropriations. 

        ``SUBPART 3--SUPPORTS TO IMPROVE RESULTS FOR CHILDREN WITH 
                              DISABILITIES

``Sec. 671. Purposes.
``Sec. 672. Parent training and information centers.
``Sec. 673. Community parent resource centers.
``Sec. 674. Technical assistance for parent training and information 
centers.
``Sec. 675. Technology development, demonstration, and utilization; and 
media services.
  ``(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 
        special educational needs of millions of children with 
        disabilities were not being fully met and there were many 
        children with disabilities participating in regular school 
        programs whose undiagnosed disabilities prevented them from 
        having a successful educational experience.
          ``(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) 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--
                          ``(i) to meet developmental goals and, to the 
                        maximum extent possible, the challenging 
                        expectations that have been established for all 
                        children; and
                          ``(ii) to 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, State, 
                and Federal school improvement efforts, including 
                efforts under the Elementary and Secondary Education 
                Act of 1965, in order to ensure that children with 
                disabilities benefit from such efforts and that special 
                education can become a service for such children rather 
                than a place where they are sent;
                  ``(D) supporting high-quality, intensive professional 
                development for personnel who work with children with 
                disabilities;
                  ``(E) providing incentives for scientifically based 
                reading programs and prereferral intervention services 
                to reduce the need to label children as disabled in 
                order to address their learning needs;
                  ``(F) focusing resources on teaching and learning 
                while reducing paperwork and requirements that do not 
                assist in improving educational results; and
                  ``(G) supporting the development and use of 
                technology, including assistive technology devices and 
                services, to maximize accessibility for children with 
                disabilities.
          ``(5) 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 has 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.
          ``(6) 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.
          ``(7)(A) The Federal Government must respond to the growing 
        needs of an increasingly diverse society.
          ``(B) America's ethnic profile is rapidly changing. In the 
        year 2000, nearly one of every three persons in America 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 in order 
        to provide appropriate role models with sufficient knowledge to 
        address the special education needs of these students.
          ``(8)(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, assessment, and provision of services for our 
        Nation's students from non-English language backgrounds.
          ``(9)(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 overidentified as having 
        mental retardation and emotional disturbance at rates greater 
        than their white counterparts.
          ``(D) In the 1998-99 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 predominantly 
        Caucasian students and teachers have placed disproportionately 
        high numbers of their minority students into special education.
          ``(10)(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 full participation by minority 
        individuals, organizations, and historically black colleges and 
        universities in awards for grants and contracts, boards of 
        organizations receiving assistance under this Act, peer review 
        panels, and training of professionals in the area of special 
        education is essential to obtain greater success in the 
        education of minority 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 further education, 
        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 system improvement 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 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 one or more of the following 
                        areas: physical development, cognitive 
                        development, communication development, social 
                        or emotional development, or adaptive 
                        development; and
                          ``(ii) who, by reason thereof, needs special 
                        education and related services.
          ``(4) Educational service agency.--The term `educational 
        service agency'--
                  ``(A) means a regional public multiservice agency--
                          ``(i) authorized by State law to develop, 
                        manage, and provide services or programs to 
                        local educational agencies; and
                          ``(ii) recognized as an administrative agency 
                        for purposes of the provision of special 
                        education and related services provided within 
                        public elementary and secondary schools of the 
                        State; and
                  ``(B) includes any other public institution or agency 
                having administrative control and direction over a 
                public elementary or secondary school.
          ``(5) Elementary school.--The term `elementary school' means 
        a nonprofit institutional day or residential school that 
        provides elementary education, as determined under State law.
          ``(6) Equipment.--The term `equipment' includes--
                  ``(A) machinery, utilities, and built-in equipment 
                and any necessary enclosures or structures to house 
                such machinery, utilities, or equipment; and
                  ``(B) all other items necessary for the functioning 
                of a particular facility as a facility for the 
                provision of educational services, including items such 
                as instructional equipment and necessary furniture; 
                printed, published, and audio-visual instructional 
                materials; telecommunications, sensory, and other 
                technological aids and devices; and books, periodicals, 
                documents, and other related materials.
          ``(7) Excess costs.--The term `excess costs' means those 
        costs that are in excess of the average annual per-student 
        expenditure in a local educational agency during the preceding 
        school year for an elementary or secondary school student, as 
        may be appropriate, and which shall be computed after 
        deducting--
                  ``(A) amounts received--
                          ``(i) under part B of this title;
                          ``(ii) under part A of title I of the 
                        Elementary and Secondary Education Act of 1965; 
                        and
                          ``(iii) under title III of that Act; and
                  ``(B) any State or local funds expended for programs 
                that would qualify for assistance under any of the 
                provisions of law described in subparagraph (A).
          ``(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) Highly qualified.--The term `highly qualified' has the 
        same meaning as that term in section 9101 of the Elementary and 
        Secondary Education Act of 1965.
          ``(10) Indian.--The term `Indian' means an individual who is 
        a member of an Indian tribe.
          ``(11) 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).
          ``(12) 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).
          ``(13) Individualized family service plan.--The term 
        `individualized family service plan' has the meaning given such 
        term in section 636.
          ``(14) Infant or toddler with a disability.--The term `infant 
        or toddler with a disability ' has the meaning given such term 
        in section 632.
          ``(15) Institution of higher education.--The term 
        `institution of higher education'--
                  ``(A) has the meaning given that term in subsection 
                (a) or (b) of section 101 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.
          ``(16) Local educational agency.--
                  ``(A) The term `local educational agency' means a 
                public board of education or other public authority 
                legally constituted within a State for either 
                administrative control or direction of, or to perform a 
                service function for, public elementary or secondary 
                schools in a city, county, township, school district, 
                or other political subdivision of a State, or for such 
                combination of school districts or counties as are 
                recognized in a State as an administrative agency for 
                its public elementary or secondary schools.
                  ``(B) The term includes--
                          ``(i) an educational service agency, as 
                        defined in paragraph (4); and
                          ``(ii) any other public institution or agency 
                        having administrative control and direction of 
                        a public elementary or secondary school.
                  ``(C) The term includes an elementary or secondary 
                school funded by the Bureau of Indian Affairs, but only 
                to the extent that such inclusion makes the school 
                eligible for programs for which specific eligibility is 
                not provided to the school in another provision of law 
                and the school does not have a student population that 
                is smaller than the student population of the local 
                educational agency receiving assistance under this Act 
                with the smallest student population, except that the 
                school shall not be subject to the jurisdiction of any 
                State educational agency other than the Bureau of 
                Indian Affairs.
          ``(17) 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.
          ``(18) 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.
          ``(19) Outlying area.--The term `outlying area' means the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
          ``(20) 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.
          ``(21) Parent organization.--The term `parent organization' 
        has the meaning given that term in section 672(g).
          ``(22) Parent training and information center.--The term 
        `parent training and information center' means a center 
        assisted under sections 672 and 673.
          ``(23) 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.
          ``(24) 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.
          ``(25) Secretary.--The term `Secretary' means the Secretary 
        of Education.
          ``(26) 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.
          ``(27) 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.
          ``(28) 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.
          ``(29) 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.
          ``(30) 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).
          ``(31) Transition services.--The term `transition services' 
        means a coordinated set of activities for a child with a 
        disability that--
                  ``(A) is designed within a results-oriented process, 
                that is focused on improving the academic and 
                developmental achievement of the child with a 
                disability to facilitate the child's move 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 upon the individual child's needs, 
                taking into account the child's skills, 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. 102. SECTIONS 605 THROUGH 607 OF THE INDIVIDUALS WITH DISABILITIES 
                    EDUCATION ACT.

  Sections 605 through 607 of the Individuals with Disabilities 
Education Act (20 U.S.C. 1404-1406) are amended to read as follows:

``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, particularly as teachers, 
related services personnel, early intervention providers, and 
administrators, in programs assisted under this Act.

``SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

  ``(a) In General.--The Secretary may issue regulations under this Act 
only to the extent that such regulations are reasonably 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 would--
          ``(1) violate or contradict any provision of this Act; and
          ``(2) procedurally or substantively lessen the protections 
        provided to children with disabilities under this Act, as 
        embodied in regulations in effect on July 20, 1983 
        (particularly as such protections relate to parental consent to 
        initial evaluation or initial placement in special education, 
        least restrictive environment, related services, timelines, 
        attendance of evaluation personnel at individualized education 
        program meetings, or qualifications of personnel), except to 
        the extent that such regulation reflects the clear and 
        unequivocal intent of the Congress in legislation.
  ``(c) Public Comment Period.--The Secretary shall provide a public 
comment period of at least 60 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 on issues of national 
significance) that--
          ``(1) would 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) 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--
                  ``(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 section 553 of 
                title 5, United States Code.
  ``(f) Explanation and Assurances.--Any written response by the 
Secretary under subsection (e) regarding a policy, question, or 
interpretation under this Act shall include an explanation in the 
written response that the response--
          ``(1) is issued, when required, in compliance with the 
        requirements of section 553 of title 5, United States Code; and
          ``(2) is provided as informal guidance and represents only 
        the interpretation by the Department of Education of the 
        applicable statutory or regulatory requirements in the context 
        of the specific facts presented in the original question.''.

SEC. 103. SECTION 608 OF THE INDIVIDUALS WITH DISABILITIES EDUCATION 
                    ACT.

  Part A of the Individuals with Disabilities Education Act (20 U.S.C. 
1400 et seq.) is amended by adding at the end the following:

``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) minimize the number of rules, regulations, and policies 
        to which the State's local educational agencies and schools are 
        subject to under this Act.
  ``(b) Support and Facilitation.--All State rules, regulations, and 
policies relating to 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. 104. GAO REVIEW; REPORT.

  (a) Review.--The Comptroller General shall conduct a review of all 
Federal requirements under the Individuals with Disabilities Education 
Act, and the requirements of a reasonable sample of State and local 
educational agencies relating to such Act, to determine which 
requirements result in excessive paperwork completion burdens for 
teachers, related services providers, and school administrators.
  (b) Report.--Not later than 2 years after the date of the enactment 
of this Act, the Comptroller General shall prepare and submit to 
Congress a report that contains the results of the review under 
subsection (a).

SEC. 105. GAO REVIEW OF CERTAIN STATE DEFINITIONS AND EVALUATION 
                    PROCESSES.

  (a) Review.--The Comptroller General of the United States shall 
conduct a review of--
          (1) variation among States in definitions, and evaluation 
        processes, relating to the provision of services under the 
        Individuals with Disabilities Education Act to children having 
        conditions described in section 602(a)(3) of such Act using the 
        terms ``emotional disturbance'', ``other health impairments'', 
        and ``specific learning disability''; and
          (2) the degree to which these definitions and evaluation 
        processes conform to scientific, peer-reviewed research.
  (b) Report.--Not later than 2 years after the date of the enactment 
of this Act, the Comptroller General shall prepare and submit to 
Congress a report that contains the results of the review under 
subsection (a).

SEC. 106. ADDITIONAL GAO STUDY AND REPORT.

  (a) In General.--The Comptroller General of the United States shall 
conduct a study on existing or developing professional development 
programs for special education personnel delivered through the use of 
technology and distance learning.
  (b) Report.--Not later than 2 years after the date of the enactment 
of this Act, the Comptroller General of the United States shall submit 
a report containing the findings from the study conducted under 
subsection (a) to the Committee on Education and the Workforce of the 
House of Representatives and the Committee on Health, Education, Labor, 
and Pensions of the Senate.

SEC. 107. STUDY ON LIMITED ENGLISH PROFICIENT STUDENTS.

  (a) In General.--The Comptroller General of the United States shall 
conduct a study on how limited English proficient students are being 
served under the Individuals with Disabilities Education Act.
  (b) Report.--Not later than 2 years after the date of the enactment 
of the Improving Education Results for Children With Disabilities Act 
of 2003, the Comptroller General of the United States shall submit a 
report containing the findings from the study conducted under 
subsection (a) to the Committee on Education and the Workforce of the 
House of Representatives and the Committee on Health, Education, Labor, 
and Pensions of the Senate.

  TITLE II--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES

SEC. 201. AUTHORIZATION; ALLOTMENT; USE OF FUNDS; AUTHORIZATION OF 
                    APPROPRIATIONS.

  Section 611 of the Individuals with Disabilities Education Act (20 
U.S.C. 1411) is amended to read as follows:

``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.
          ``(3) Limitation.--Notwithstanding subparagraphs (A) and (B) 
        of paragraph (2), the maximum amount of the grant a State may 
        receive under this section for a fiscal year may not be based 
        on the number of children ages 3 through 17, inclusive, in 
        excess of 13.5 percent of the number of all children in that 
        age range in the State.
  ``(b) Outlying Areas.--
          ``(1) Funds reserved.--From the amount appropriated for any 
        fiscal year under subsection (i), the Secretary shall reserve 
        not more than one percent, which shall be used to provide 
        assistance to the outlying areas in accordance with their 
        respective populations of individuals aged 3 through 21.
          ``(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 those areas under this 
        section.
  ``(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 (h).
  ``(d) Allocations to States.--
          ``(1) In general.--After reserving funds 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 this 
        subsection.
          ``(2) Special rule for use of fiscal year 1999 amount.--If a 
        State does not make a free appropriate public education 
        available to all children with disabilities aged 3 through 5 in 
        the State in any 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 the 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) is 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 allocate--
                          ``(I) to each State the amount it received 
                        for fiscal year 1999;
                          ``(II) 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) 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 fiscal year 1999; and
                                          ``(bb) one-third of one 
                                        percent of the amount by which 
                                        the amount appropriated under 
                                        subsection (i) exceeds the 
                                        amount appropriated under this 
                                        section for fiscal year 1999;
                                  ``(II) the sum of--
                                          ``(aa) the amount it received 
                                        for the preceding fiscal year; 
                                        and
                                          ``(bb) that amount multiplied 
                                        by the percentage by which the 
                                        increase in the funds 
                                        appropriated from the preceding 
                                        fiscal year exceeds 1.5 
                                        percent; or
                                  ``(III) the sum of--
                                          ``(aa) the amount it received 
                                        for the preceding fiscal year; 
                                        and
                                          ``(bb) that amount multiplied 
                                        by 90 percent of the percentage 
                                        increase in the amount 
                                        appropriated from the preceding 
                                        fiscal year.
                          ``(iii) Notwithstanding clause (ii), no 
                        State's allocation under this paragraph shall 
                        exceed the sum of--
                                  ``(I) the amount it received for the 
                                preceding fiscal year; and
                                  ``(II) that amount multiplied by the 
                                sum of 1.5 percent and the percentage 
                                increase in the amount appropriated.
                  ``(C) If the amount available for allocations under 
                this paragraph is insufficient to pay those allocations 
                in full, those allocations shall be ratably reduced, 
                subject to subparagraph (B)(i).
          ``(4) Decrease in funds.--If the amount available for 
        allocations to States under paragraph (1) is less than the 
        amount allocated to the States under this section for the 
        preceding fiscal year, those allocations shall be calculated as 
        follows:
                  ``(A) If the amount available for allocations is 
                greater than the amount allocated to the States for 
                fiscal year 1999, each State shall be allocated the sum 
                of--
                          ``(i) the amount it received for fiscal year 
                        1999; 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 1999 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 fiscal year 1999, each State shall be 
                allocated the amount it received for fiscal year 1999.
                  ``(ii) If the amount available is insufficient to 
                make the allocations described in clause (i), those 
                allocations shall be ratably reduced.
  ``(e) State-Level Activities.--
          ``(1) In 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), (3), and (4).
                  ``(B) For each fiscal year, the Secretary shall 
                determine and report to the State educational agency an 
                amount that is 25 percent of the amount the State 
                received under this section for fiscal year 1997, 
                cumulatively adjusted by the Secretary for each 
                succeeding fiscal year by the lesser of--
                          ``(i) the percentage increase, if any, from 
                        the preceding fiscal year in the State's 
                        allocation under this section; or
                          ``(ii) the rate of inflation, as measured by 
                        the percentage increase, if any, from the 
                        preceding fiscal year in the Consumer Price 
                        Index For All Urban Consumers, published by the 
                        Bureau of Labor Statistics of the Department of 
                        Labor.
                  ``(C) A State may use funds it retains under 
                subparagraph (A) without regard to--
                          ``(i) the prohibition on commingling of funds 
                        in section 612(a)(18)(B); and
                          ``(ii) the prohibition on supplanting other 
                        funds in section 612(a)(18)(C).
          ``(2) State administration.--
                  ``(A) For the purpose of administering this part, 
                including section 619 (including the coordination of 
                activities under this part with, and providing 
                technical assistance to, other programs that provide 
                services to children with disabilities)--
                          ``(i) each State may use not more than 20 
                        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 5 
                        percent of the amount it receives under this 
                        section for any fiscal year or $35,000 
                        (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.
                  ``(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) High cost special education and related services.--Each 
        State may use not more than 4 percent of the maximum amount it 
        may retain under paragraph (1)(A) for any fiscal year to 
        establish and implement cost or risk sharing funds, consortia, 
        or cooperatives to assist local educational agencies in 
        providing high cost special education and related services.
          ``(4) Other state-level activities.--Each State shall use any 
        funds it retains under paragraph (1) and does not use under 
        paragraph (2) or (3) 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.
                  ``(C) To establish and implement the mediation and 
                voluntary binding arbitration processes required by 
                sections 612(a)(17) and 615(e), including providing for 
                the costs of mediators, arbitrators, and support 
                personnel.
                  ``(D) To assist local educational agencies in meeting 
                personnel shortages.
                  ``(E) Activities at the State and local levels to 
                meet the performance goals established by the State 
                under section 612(a)(15) and to support implementation 
                of the State plan under subpart 1 of part D if the 
                State receives funds under that subpart.
                  ``(F) To support paperwork reduction activities, 
                including expanding the appropriate use of technology 
                in the IEP process under this part.
                  ``(G) To develop and maintain a comprehensive, 
                coordinated, prereferral educational support system for 
                students in kindergarten through grade 12 (with a 
                particular emphasis on students in kindergarten through 
                grade 3) who are not enrolled in special education but 
                who need additional academic and behavioral support to 
                succeed in a general education environment.
                  ``(H) To support capacity building activities and 
                improve the delivery of services by local educational 
                agencies to improve results for children with 
                disabilities.
                  ``(I) For subgrants to local educational agencies for 
                the purposes described in paragraph (5)(A).
          ``(5)(A) Subgrants to local educational agencies for 
        accountability.--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 provide technical assistance and direct services to local 
        educational agencies identified as being in need of improvement 
        under section 1116 of the Elementary and Secondary Education 
        Act of 1965 on the basis, in whole or in part, of the 
        assessment results of the disaggregated subgroup of students 
        with disabilities, including providing professional development 
        to special and regular education teachers, based on 
        scientifically based research to improve educational 
        instruction.
          ``(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.
          ``(6) 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 this subsection 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.
  ``(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 it does not retain 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.--For each fiscal year for which funds are allocated 
        to States under subsection (e), each State shall allocate funds 
        under paragraph (1) 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 1999, if the State had distributed 75 
                percent of its grant for that year under section 
                611(d), as then in effect.
                  ``(B) Allocation of remaining funds.--After making 
                allocations under subparagraph (A), the State shall--
                          ``(i) allocate 85 percent of any remaining 
                        funds to those agencies on the basis of the 
                        relative numbers of children enrolled in public 
                        and private elementary and secondary schools 
                        within the agency's jurisdiction; and
                          ``(ii) allocate 15 percent of those remaining 
                        funds to those agencies in accordance with 
                        their relative numbers of children living in 
                        poverty, as determined by the State educational 
                        agency.
          ``(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 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.
  ``(g) 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.
  ``(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 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. Of the amount described in the preceding 
                sentence--
                          ``(i) 80 percent shall be allocated to such 
                        schools by July 1 of that fiscal year; and
                          ``(ii) 20 percent shall be allocated to such 
                        schools by September 30 of 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 
                Education in its exercise of monitoring, enforcement, 
                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 (i), the Secretary of Education shall make 
                payments to the Secretary of the Interior to be 
                distributed to tribes or tribal organizations (as 
                defined under section 4 of the Indian Self-
                Determination and Education Assistance Act) or 
                consortia of the above to provide for the coordination 
                of assistance for special education and related 
                services for children with disabilities aged 3 through 
                5 on reservations served by elementary 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) Annual 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 an annual 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 year following the one in which the 
                report is made. The Secretary of the Interior shall 
                include a summary of this information on an annual 
                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)(22), 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).
          ``(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).
  ``(i) Authorization of Appropriations.--For the purpose of carrying 
out this part, other than section 619, there are authorized to be 
appropriated--
          ``(1) $11,074,398,000 for fiscal year 2004;
          ``(2) $13,374,398,000 for fiscal year 2005;
          ``(3) $15,746,302,000 for fiscal year 2006;
          ``(4) $17,918,205,000 for fiscal year 2007;
          ``(5) $20,090,109,000 for fiscal year 2008;
          ``(6) $22,262,307,000 for fiscal year 2009;
          ``(7) $25,198,603,000 for fiscal year 2010; and
          ``(8) such sums as may be necessary for fiscal year 2011 and 
        each subsequent fiscal year.''.

SEC. 202. STATE ELIGIBILITY.

  (a) In General.--(1) Section 612(a) of the Individuals with 
Disabilities Education Act (20 U.S.C. 1412(a)) is amended in the matter 
preceding paragraph (1) by striking ``demonstrates to the satisfaction 
of'' and inserting ``reasonably demonstrates to''.
  (2) Paragraphs (1) through (11) of section 612(a) of the Individuals 
with Disabilities Education Act (20 U.S.C. 1412(a)(1)-(11)) are amended 
to read as follows:
          ``(1) Free appropriate public education.--
                  ``(A) In general.--A free appropriate public 
                education is available to all children with 
                disabilities residing in the State between the ages of 
                3 and 21, inclusive, including children with 
                disabilities who have been suspended or expelled from 
                school.
                  ``(B) Limitation.--The obligation to make a free 
                appropriate public education available to all children 
                with disabilities does not apply with respect to 
                children--
                          ``(i) aged 3 through 5 and 18 through 21 in a 
                        State to the extent that its application to 
                        those children would be inconsistent with State 
                        law or practice, or the order of any court, 
                        respecting the provision of public education to 
                        children in those age ranges; and
                          ``(ii) aged 18 through 21 to the extent that 
                        State law does not require that special 
                        education and related services under this part 
                        be provided to children with disabilities who, 
                        in the educational placement prior to their 
                        incarceration in an adult correctional 
                        facility--
                                  ``(I) were not actually identified as 
                                being a child with a disability under 
                                section 602(3) of this Act; or
                                  ``(II) did not have an individualized 
                                education program under this part.
          ``(2) Full educational opportunity goal.--The State has 
        established a goal of providing full educational opportunity to 
        all children with disabilities and a detailed timetable for 
        accomplishing that goal.
          ``(3) Child find.--
                  ``(A) In general.--All children with disabilities 
                residing in the State, including children with 
                disabilities attending private schools, regardless of 
                the severity of their disabilities, and who are in need 
                of special education and related services, are 
                identified, located, and evaluated and a practical 
                method is developed and implemented to determine which 
                children with disabilities are currently receiving 
                needed special education and related services.
                  ``(B) Construction.--Nothing in this Act requires 
                that children be classified by their disability so long 
                as each child who has a disability listed in section 
                602 and who, by reason of that disability, needs 
                special education and related services is regarded as a 
                child with a disability under this part.
          ``(4) Individualized education program.--An individualized 
        education program, or an individualized family service plan 
        that meets the requirements of section 636(d), is developed, 
        reviewed, and revised for each child with a disability in 
        accordance with section 614(d).
          ``(5) Least restrictive environment.--
                  ``(A) In general.--To the maximum extent appropriate, 
                children with disabilities, including children in 
                public or private institutions or other care 
                facilities, are educated with children who are not 
                disabled, and special classes, separate schooling, or 
                other removal of children with disabilities from the 
                regular educational environment occurs only when the 
                nature or severity of the disability of a child is such 
                that education in regular classes with the use of 
                supplementary aids and services cannot be achieved 
                satisfactorily.
                  ``(B) Additional requirement.--
                          ``(i) In general.--If the State uses a 
                        funding mechanism by which the State 
                        distributes State funds on the basis of the 
                        type of setting in which a child is served, the 
                        funding mechanism does not result in placements 
                        that violate the requirements of subparagraph 
                        (A).
                          ``(ii) Assurance.--If the State does not have 
                        policies and procedures to ensure compliance 
                        with clause (i), the State shall provide the 
                        Secretary an assurance that it will revise the 
                        funding mechanism as soon as feasible to ensure 
                        that such mechanism does not result in such 
                        placements.
          ``(6) Procedural safeguards.--
                  ``(A) In general.--Children with disabilities and 
                their parents are afforded the procedural safeguards 
                required by section 615.
                  ``(B) Additional procedural safeguards.--Procedures 
                to ensure that testing and evaluation materials and 
                procedures utilized for the purposes of evaluation and 
                placement of children with disabilities for services 
                under this Act will be selected and administered so as 
                not to be racially or culturally discriminatory. Such 
                materials or procedures shall be provided and 
                administered in the child's native language or mode of 
                communication, unless it clearly is not feasible to do 
                so, and no single procedure shall be the sole criterion 
                for determining an appropriate educational program for 
                a child.
          ``(7) Evaluation.--Children with disabilities are evaluated 
        in accordance with subsections (a) through (c) of section 614.
          ``(8) Confidentiality.--Agencies in the State comply with 
        section 617(d) (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 section 
        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 in the area served by such 
                        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 a local educational agency 
                                shall be equal to a proportionate 
                                amount of Federal funds made available 
                                under this part.
                                  ``(II) In calculating the 
                                proportionate share of Federal funds, 
                                the local educational agency, after 
                                timely and meaningful consultation with 
                                representatives of children with 
                                disabilities parentally-placed in 
                                private schools as described in clause 
                                (iii), shall conduct a thorough and 
                                complete child-find process to 
                                determine the number of parentally-
                                placed children with disabilities 
                                attending private schools located in 
                                the district.
                                  ``(III) Such services may be provided 
                                to children with disabilities on the 
                                premises of private, including 
                                religious, schools, to the extent 
                                consistent with law.
                                  ``(IV) State and local funds may 
                                supplement and in no case shall 
                                supplant the proportionate amount of 
                                Federal funds required to be expended 
                                under this paragraph.
                                  ``(V) Each local educational agency 
                                maintains in its records and provides 
                                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 and secondary 
                                schools.
                                  ``(II) Equitable participation.--The 
                                child-find process must 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).
                                  ``(V) Completion period.--Such child-
                                find process shall be completed in a 
                                time period comparable to that for 
                                other students attending public schools 
                                in the local educational agency.
                          ``(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 
                        parentally-placed in private schools during the 
                        design and development of special education and 
                        related services for these children including--
                                  ``(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 
                                those funds were calculated;
                                  ``(III) the consultation process 
                                among the 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; and
                                  ``(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.
                          ``(iv) 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.
                          ``(v) Provision of services.--
                                  ``(I) Directly or through 
                                contracts.--An agency may provide 
                                special education and related services 
                                directly or through contracts with 
                                public and private agencies, 
                                organizations, and institutions.
                                  ``(II) Secular, neutral, 
                                nonideological.--Special education and 
                                related services, including materials 
                                and equipment, shall be secular, 
                                neutral, and nonideological.
                          ``(vi) Public control of funds.--
                                  ``(I) In general.--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.
                                  ``(II) Provision of services.--The 
                                provision of services under this Act 
                                shall be provided--
                                          ``(aa) by employees of a 
                                        public agency; or
                                          ``(bb) through contract by 
                                        the public agency with an 
                                        individual, association, 
                                        agency, organization, or other 
                                        entity.
                  ``(B) Children placed in, or referred to, private 
                schools by public agencies.--
                          ``(i) In general.--Children with disabilities 
                        in private schools and facilities are provided 
                        special education and related services, in 
                        accordance with an individualized education 
                        program, at no cost to their parents, if such 
                        children are placed in, or referred to, such 
                        schools or facilities by the State or 
                        appropriate local educational agency as the 
                        means of carrying out the requirements of this 
                        part or any other applicable law requiring the 
                        provision of special education and related 
                        services to all children with disabilities 
                        within such State.
                          ``(ii) Standards.--In all cases described in 
                        clause (i), the State educational agency shall 
                        determine whether such schools and facilities 
                        meet standards that apply to State and local 
                        educational agencies and that children so 
                        served have all the rights they would have if 
                        served by such agencies.
                  ``(C) Payment for education of children enrolled in 
                private schools without consent of or referral by the 
                public agency.--
                          ``(i) In general.--Subject to subparagraph 
                        (A), this part does not require a local 
                        educational agency to pay for the cost of 
                        education, including special education and 
                        related services, of a child with a disability 
                        at a private school or facility if that agency 
                        made a free appropriate public education 
                        available to the child and the parents elected 
                        to place the child in such private school or 
                        facility.
                          ``(ii) Reimbursement for private school 
                        placement.--If the parents of a child with a 
                        disability, who previously received special 
                        education and related services under the 
                        authority of a public agency, enroll the child 
                        in a private elementary or secondary school 
                        without the consent of or referral by the 
                        public agency, a court or a hearing officer may 
                        require the agency to reimburse the parents for 
                        the cost of that enrollment if the court or 
                        hearing officer finds that the agency had not 
                        made a free appropriate public education 
                        available to the child in a timely manner prior 
                        to that enrollment.
                          ``(iii) Limitation on reimbursement.--The 
                        cost of reimbursement described in clause (ii) 
                        may be reduced or denied--
                                  ``(I) if--
                                          ``(aa) at the most recent IEP 
                                        meeting that the parents 
                                        attended prior to removal of 
                                        the child from the public 
                                        school, the parents did not 
                                        inform the IEP Team that they 
                                        were rejecting the placement 
                                        proposed by the public agency 
                                        to provide a free appropriate 
                                        public education to their 
                                        child, including stating their 
                                        concerns and their intent to 
                                        enroll their child in a private 
                                        school at public expense; or
                                          ``(bb) 10 business days 
                                        (including any holidays that 
                                        occur on a business day) prior 
                                        to the removal of the child 
                                        from the public school, the 
                                        parents did not give written 
                                        notice to the public agency of 
                                        the information described in 
                                        division (aa);
                                  ``(II) if, prior to the parents' 
                                removal of the child from the public 
                                school, the public agency informed the 
                                parents, through the notice 
                                requirements described in section 
                                615(b)(7), of its intent to evaluate 
                                the child (including a statement of the 
                                purpose of the evaluation that was 
                                appropriate and reasonable), but the 
                                parents did not make the child 
                                available for such evaluation; or
                                  ``(III) upon a judicial finding of 
                                unreasonableness with respect to 
                                actions taken by the parents.
                          ``(iv) Exception.--Notwithstanding the notice 
                        requirement in clause (iii)(I), the cost of 
                        reimbursement--
                                  ``(I) shall not be reduced or denied 
                                for failure to provide such notice if--
                                          ``(aa) the school prevented 
                                        the parent from providing such 
                                        notice;
                                          ``(bb) the parents had not 
                                        received notice, pursuant to 
                                        section 615, of the notice 
                                        requirement in clause (iii)(I); 
                                        or
                                          ``(cc) compliance with clause 
                                        (iii)(I) would likely result in 
                                        physical harm to the child; 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 or cannot write in 
                                        English; or
                                          ``(bb) compliance with clause 
                                        (iii)(I) would likely result in 
                                        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.''.
  (3) Paragraphs (13) through (22) of section 612(a) of the Individuals 
with Disabilities Education Act (20 U.S.C. 1412(a)(13)-(22)) are 
amended to read as follows:
          ``(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.
                  ``(B) Standards described.--Such standards shall--
                          ``(i) ensure that special education teachers 
                        who teach in core academic subjects are highly 
                        qualified in those subjects;
                          ``(ii) 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 in order to 
                        ensure that such individuals are qualified to 
                        provide such services; 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) Innovative strategies for professional 
                development.--The State educational agency encourages 
                the development and use of research-based innovative 
                strategies, such as strategies using technology, peer 
                networks, and distance learning, to deliver intensive 
                professional development programs for special and 
                regular education teachers, administrators, principals, 
                and related services personnel that--
                          ``(i) improve educational results for 
                        students with disabilities; and
                          ``(ii) are both cost-effective and easily 
                        accessible.
          ``(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 dropout 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 
                those goals described in subparagraph (A), including 
                measurable annual objectives for progress by children 
                with disabilities under section 1111(b)(2)(C) 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), which may 
                include elements of the reports required under section 
                1111(h) of the Elementary and Secondary Education Act 
                of 1965.
          ``(16) Participation in assessments.--
                  ``(A) In general.--(i) All children with disabilities 
                are included in all general State and district-wide 
                assessment programs, including assessments described 
                under title I of the Elementary and Secondary Education 
                Act of 1965, with appropriate accommodations, where 
                necessary and as indicated in their respective 
                individualized education programs.
                  ``(ii) The State (or, in the case of a district-wide 
                assessment, the local educational agency) has developed 
                and implemented guidelines for the provision of 
                accommodations described in clause (i).
                  ``(iii) The State (or, in the case of a district-wide 
                assessment the local educational agency)--
                          ``(I) 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 clause (i); and
                          ``(II) conducts those alternate assessments.
                  ``(B) Reports.--The State educational agency (or, in 
                the case of a district-wide 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.
                          ``(iii) 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 would not reveal 
                        personally identifiable information about an 
                        individual student), compared with the 
                        achievement of all children, including children 
                        with disabilities, on those assessments.
          ``(17) Dispute resolution.--The State has in effect systems 
        of mediation and voluntary binding arbitration pursuant to 
        section 615(e).
          ``(18) Supplementation of state, local, and other federal 
        funds.--
                  ``(A) Expenditures.--Funds paid to a State under this 
                part will be expended in accordance with all the 
                provisions of this part.
                  ``(B) Prohibition against commingling.--Funds paid to 
                a State under this part will not be commingled with 
                State funds.
                  ``(C) Prohibition against supplantation and 
                conditions for waiver by secretary.--Except as provided 
                in section 613, funds paid to a State under this part 
                will be used to supplement the level of Federal, State, 
                and local funds (including funds that are not under the 
                direct control of State or local educational agencies) 
                expended for special education and related services 
                provided to children with disabilities under this part 
                and in no case to supplant such Federal, State, and 
                local funds, except that, where the State provides 
                clear and convincing evidence that all children with 
                disabilities have available to them a free appropriate 
                public education, the Secretary may waive, in whole or 
                in part, the requirements of this subparagraph if the 
                Secretary concurs with the evidence provided by the 
                State.
          ``(19) Maintenance of state financial support.--
                  ``(A) In general.--The State does not reduce the 
                amount of State financial support for special education 
                and related services for children with disabilities, or 
                otherwise made available because of the excess costs of 
                educating those children, below the amount of that 
                support for the preceding fiscal year.
                  ``(B) Reduction of funds for failure to maintain 
                support.--The Secretary shall reduce the allocation of 
                funds under section 611 for any fiscal year following 
                the fiscal year in which the State fails to comply with 
                the requirement of subparagraph (A) by the same amount 
                by which the State fails to meet the requirement.
                  ``(C) Waivers for exceptional or uncontrollable 
                circumstances.--The Secretary may waive the requirement 
                of subparagraph (A) for a State, for one fiscal year at 
                a time, if the Secretary determines that--
                          ``(i) granting a waiver would be equitable 
                        due to exceptional or uncontrollable 
                        circumstances such as a natural disaster or a 
                        precipitous and unforeseen decline in the 
                        financial resources of the State; or
                          ``(ii) the State meets the standard in 
                        paragraph (18)(C) of this section for a waiver 
                        of the requirement to supplement, and not to 
                        supplant, funds received under this part.
                  ``(D) Subsequent years.--If, for any year, a State 
                fails to meet the requirement of subparagraph (A), 
                including any year for which the State is granted a 
                waiver under subparagraph (C), the financial support 
                required of the State in future years under 
                subparagraph (A) shall be the amount that would have 
                been required in the absence of that failure and not 
                the reduced level of the State's support.
          ``(20) Public participation.--Prior to the adoption of any 
        policies and procedures needed to comply with this section 
        (including any amendments to such policies and procedures), the 
        State ensures that there are public hearings, adequate notice 
        of the hearings, and an opportunity for comment available to 
        the general public, including individuals with disabilities and 
        parents of children with disabilities.
          ``(21) State advisory panel.--
                  ``(A) In general.--The State has established and 
                maintains an advisory panel for the purpose of 
                providing policy guidance with respect to special 
                education and related services for children with 
                disabilities in the State.
                  ``(B) Membership.--Such advisory panel shall consist 
                of members appointed by the Governor, or any other 
                official authorized under State law to make such 
                appointments, that is representative of the State 
                population and that is composed of individuals involved 
                in, or concerned with, the education of children with 
                disabilities, including--
                          ``(i) parents of children with disabilities 
                        (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 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 ages birth through 26.
                  ``(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, including data disaggregated by race and 
                ethnicity, 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 positive behavioral interventions and 
                supports, and procedural safeguards, to ensure that 
                such policies, procedures, and practices comply with 
                this Act.''.
  (4) Section 612(a) of the Individuals with Disabilities Education Act 
(20 U.S.C. 1412(a)(13)-(22)) is amended by adding at the end the 
following:
          ``(23) Instructional materials.--
                  ``(A) In general.--The State adopts the national 
                instructional materials accessibility standard 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 by 
                the Secretary in the Federal Register.
                  ``(B) Purchase requirement.--Not later than 2 years 
                after the date of the enactment of the Improving 
                Education Results for Children With Disabilities Act of 
                2003, the State educational agency, when purchasing 
                instructional materials for use in public elementary 
                and secondary schools within the State, requires the 
                publisher of the instructional materials, as a part of 
                any purchase agreement that is made, renewed, or 
                revised, to prepare and supply electronic files 
                containing the contents of the instructional materials 
                using the national instructional materials 
                accessibility standard.
                  ``(C) Definition.--For purposes of this paragraph, 
                the term `instructional materials' means printed 
                textbooks and related 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.
          ``(24) Overidentification and disproportionality.--The State 
        has in effect, consistent with the purposes of this Act and 
        with section 618, policies and procedures designed to prevent 
        the overidentification or disproportionate representation by 
        race and ethnicity 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).
          ``(25) Prohibition on psychotropic medication.--The State 
        educational agency develops and implements policies and 
        procedures prohibiting school personnel from requiring a child 
        to obtain a prescription for substances covered by section 
        202(c) of the Controlled Substances Act (21 U.S.C. 812(c)) as a 
        condition of attending school or receiving services.''.
  (b) State Educational Agency as Provider of Free Appropriate Public 
Education or Direct Services.--Section 612(b) of the Individuals with 
Disabilities Education Act (20 U.S.C. 1412(b)) is amended to read as 
follows:
  ``(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.--Section 612(c) of the 
Individuals with Disabilities Education Act (20 U.S.C. 1412(c)) is 
amended to read as follows:
  ``(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 Improving Education Results for Children 
        With Disabilities 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 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 Improving Education Results for Children 
        With Disabilities Act of 2003, 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 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.--Section 612(d) of the Individuals 
with Disabilities Education Act (20 U.S.C. 1412(d)) is amended to read 
as follows:
  ``(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.--Section 612(e) of the 
Individuals with Disabilities Education Act (20 U.S.C. 1412(e)) is 
amended to read as follows:
  ``(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.''.

SEC. 203. LOCAL EDUCATIONAL AGENCY ELIGIBILITY.

  Section 613 of the Individuals with Disabilities Education Act (20 
U.S.C. 1413) is amended to read as follows:

``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 reasonably 
demonstrates to 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) If a local educational agency chooses 
                        to use the authority under clause (i), then the 
                        agency shall use those local funds to provide 
                        additional funding for programs under the 
                        Elementary and Secondary Education Act of 1965, 
                        including, but not limited to, programs that 
                        address student achievement, comprehensive 
                        school reform, literacy, teacher quality and 
                        professional development, school safety, 
                        before- and after- school learning 
                        opportunities.
                          ``(iii) Notwithstanding clause (i), if a 
                        State educational agency determines that a 
                        local educational agency is unable to establish 
                        and maintain programs of free appropriate 
                        public education that meet the requirements of 
                        subsection (a), the State educational agency 
                        shall prohibit the local educational agency 
                        from treating funds received under this part as 
                        local funds under clause (i) for that fiscal 
                        year, but 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 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 of this Act and section 1119 of 
        the Elementary and Secondary Education Act of 1965.
          ``(4) Permissive use of funds.--Notwithstanding paragraph 
        (2)(A) or section 612(a)(18)(B) (relating to commingled funds), 
        funds provided to the local educational agency under this part 
        may be used for the following activities:
                  ``(A) Services and aids that also benefit nondisabled 
                children.--For the costs of special education and 
                related services and supplementary aids and services 
                provided in a regular class or other education-related 
                setting to a child with a disability in accordance with 
                the individualized education program of the child, even 
                if one or more nondisabled children benefit from such 
                services.
                  ``(B) Prereferral services.--To develop and implement 
                a system of comprehensive coordinated prereferral 
                education support services in accordance with 
                subsection (f).
                  ``(C) High cost education and related services.--To 
                establish and implement cost or risk sharing funds, 
                consortia, or cooperatives for the agency itself, or 
                for local educational agencies working in consortium of 
                which the local educational agency is a part, to pay 
                for high cost special education and related services.
                  ``(D) Case management and administration.--To 
                purchase appropriate technology for record keeping, 
                data collection, and related case management activities 
                of teachers and related services personnel who are 
                providing services described in the individualized 
                education program of children with disabilities 
                necessary to the implementation of those case 
                management activities.
                  ``(E) Supplemental educational services for children 
                with disabilities in schools designated for 
                improvement.--For the reasonable additional expenses 
                (as determined by the local educational agency) of any 
                necessary accommodations to allow children with 
                disabilities who are being educated in a school 
                identified for school improvement under section 1116(b) 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 6316(b)) to be provided supplemental 
                educational services under section 1116(e) of such Act 
                on an equitable basis.
          ``(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, including 
                providing supplemental and related services on site at 
                the charter school when the local educational agency 
                has a policy or practice of providing those services on 
                site to its other schools; and
                  ``(B) provides funds under this part to those schools 
                on the same basis as it provides those funds to its 
                other public schools (including, at the option of such 
                agency, proportional distribution based on relative 
                enrollment of children with disabilities at such 
                charter schools), and at the same time as such agency 
                distributes other Federal funds to those schools, 
                consistent with the State's charter law.
          ``(6) Purchase of instructional materials.--Not later than 2 
        years after the date of the enactment of the Improving 
        Education Results for Children With Disabilities Act of 2003, 
        the local educational agency, when purchasing instructional 
        materials for use in public elementary and secondary schools 
        within the local educational agency, requires the publisher of 
        the instructional materials, as a part of any purchase 
        agreement that is made, renewed, or revised, to prepare and 
        supply electronic files containing the contents of the 
        instructional materials using the national instructional 
        materials accessibility standard described in section 
        612(a)(23).
          ``(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 Improving Education Results for Children 
        With Disabilities 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 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 date of the enactment of the Improving Education 
        Results for Children With Disabilities Act of 2003, the 
        provisions of this Act are amended (or the regulations 
        developed to carry out this Act are amended), or there is a new 
        interpretation of this Act by Federal or State courts, or there 
        is an official finding of noncompliance with Federal or State 
        law or regulations, the State educational agency may require a 
        local educational agency to modify its application only to the 
        extent necessary to ensure the local educational agency's 
        compliance with this part or State law.
  ``(c) Notification of Local Educational Agency or State Agency in 
Case of Ineligibility.--If the State educational agency determines that 
a local educational agency or State agency is not eligible under this 
section, the State educational agency shall notify the local 
educational agency or State agency, as the case may be, of that 
determination and shall provide such local educational agency or State 
agency with reasonable notice and an opportunity for a hearing.
  ``(d) Local Educational Agency Compliance.--
          ``(1) In general.--If the State educational agency, after 
        reasonable notice and an opportunity for a hearing, finds that 
        a local educational agency or State agency that has been 
        determined to be eligible under this section is failing to 
        comply with any requirement described in subsection (a), the 
        State educational agency shall reduce or shall not provide any 
        further payments to the local educational agency or State 
        agency until the State educational agency is satisfied that the 
        local educational agency or State agency, as the case may be, 
        is complying with that requirement.
          ``(2) Additional requirement.--Any State agency or local 
        educational agency in receipt of a notice described in 
        paragraph (1) shall, by means of public notice, take such 
        measures as may be necessary to bring the pendency of an action 
        pursuant to this subsection to the attention of the public 
        within the jurisdiction of such agency.
          ``(3) Consideration.--In carrying out its responsibilities 
        under paragraph (1), the State educational agency shall 
        consider any decision made in a hearing held under section 615 
        that is adverse to the local educational agency or State agency 
        involved in that decision.
  ``(e) Joint Establishment of Eligibility.--
          ``(1) Joint establishment.--
                  ``(A) In general.--A State educational agency may 
                require a local educational agency to establish its 
                eligibility jointly with another local educational 
                agency if the State educational agency determines that 
                the local educational agency would be ineligible under 
                this section because the local educational agency would 
                not be able to establish and maintain programs of 
                sufficient size and scope to effectively meet the needs 
                of children with disabilities.
                  ``(B) Charter school exception.--A State educational 
                agency may not require a charter school that is a local 
                educational agency to jointly establish its eligibility 
                under subparagraph (A) unless it is explicitly 
                permitted to do so under the State's charter school 
                statute.
          ``(2) Amount of payments.--If a State educational agency 
        requires the joint establishment of eligibility under paragraph 
        (1), the total amount of funds made available to the affected 
        local educational agencies shall be equal to the sum of the 
        payments that each such local educational agency would have 
        received under section 611(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) Prereferral Services.--
          ``(1) In general.--A local educational agency may use not 
        more than 15 percent of the amount such agency receives under 
        this part for any fiscal year, in combination with other 
        amounts (which may include amounts other than education funds), 
        to develop and implement comprehensive coordinated prereferral 
        educational support services for students in kindergarten 
        through grade 12 (with a particular emphasis on students in 
        grades kindergarten through 3) who have not been identified as 
        needing special education or related services but who need 
        additional academic and behavioral support to succeed in a 
        general education environment.
          ``(2) Activities.--In implementing comprehensive coordinated 
        prereferral educational services under this subsection, a local 
        educational agency may carry out the following activities:
                  ``(A) Professional development (which may be provided 
                by entities other than local educational agencies) for 
                teachers to enable them to deliver scientifically based 
                academic and behavioral interventions, including 
                scientifically based literacy instruction.
                  ``(B) Providing educational evaluations, services, 
                and supports, including scientifically based literacy 
                instruction and speech therapy.
                  ``(C) Providing behavioral evaluations and services 
                and supports, including positive behavioral 
                interventions and supports.
          ``(3) Exclusion.--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 comprehensive coordinated prereferral educational 
        support services under this subsection shall annually report to 
        the State educational agency on--
                  ``(A) the number of students served under this 
                subsection; and
                  ``(B) the number of students served under this 
                subsection who subsequently receive special education 
                and related services under this Act during the 
                preceding 2-year period.
          ``(5) Coordination with the elementary and secondary 
        education act of 1965.--
                  ``(A) In general.--Comprehensive coordinated 
                prereferral educational support services provided under 
                this subsection may be aligned with activities funded 
                by, and carried out under, the Elementary and Secondary 
                Education Act of 1965, such as the Reading First 
                program under subpart 1 of part B of title I of such 
                Act, the Early Reading First program under subpart 2 of 
                part B of title I of such Act, reading and math 
                supports under part A of title I of such Act, and 
                behavior intervention supports, that improve results 
                for children with disabilities.
                  ``(B) Maintenance of effort.--Funds used under this 
                section shall be used to supplement, and not supplant, 
                funds made available under the Elementary and Secondary 
                Education Act of 1965.
  ``(g) Direct Services by the State Educational Agency.--
          ``(1) In general.--A State educational agency shall use the 
        payments that would otherwise have been available to a local 
        educational agency or to a State agency to provide special 
        education and related services directly to children with 
        disabilities residing in the area served by that local agency, 
        or for whom that State agency is responsible, if the State 
        educational agency determines that the local education agency 
        or State agency, as the case may be--
                  ``(A) has not provided the information needed to 
                establish the eligibility of such agency under this 
                section;
                  ``(B) is unable to establish and maintain programs of 
                free appropriate public education that meet the 
                requirements of subsection (a);
                  ``(C) is unable or unwilling to be consolidated with 
                one or more local educational agencies in order to 
                establish and maintain such programs; or
                  ``(D) has one or more children with disabilities who 
                can best be served by a regional or State program or 
                service-delivery system designed to meet the needs of 
                such children.
          ``(2) Manner and location of education and services.--The 
        State educational agency may provide special education and 
        related services under paragraph (1) in such manner and at such 
        locations (including regional or State centers) as the State 
        agency considers appropriate. Such education and services shall 
        be provided in accordance with this part.
  ``(h) State Agency Eligibility.--Any State agency that desires to 
receive a subgrant for any fiscal year under section 611(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 
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. 204. EVALUATIONS, ELIGIBILITY DETERMINATIONS, INDIVIDUALIZED 
                    EDUCATION PROGRAMS, AND EDUCATIONAL PLACEMENTS.

  Section 614 of the Individuals with Disabilities Education Act (20 
U.S.C. 1414) is amended to read as follows:

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

  ``(a) Evaluations, Parental Consent, 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, a 
                State educational agency, other State agency as 
                appropriate, 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)); and
                          ``(ii) to determine the educational needs of 
                        such child.
                  ``(D) Parental consent.--
                          ``(i) In general.--
                                  ``(I) Consent for initial 
                                evaluation.--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 informed consent from the parent 
                                of such child before conducting the 
                                evaluation. Parental consent for 
                                evaluation shall not be construed as 
                                consent for placement for receipt of 
                                special education and related services.
                                  ``(II) Consent for services.--An 
                                agency that is responsible for making a 
                                free appropriate public education 
                                available to a child with a disability 
                                under this part shall seek to obtain 
                                informed consent from the parent of 
                                such child before providing special 
                                education and related services to the 
                                child.
                          ``(ii) Absence of consent.--
                                  ``(I) For initial evaluation.--If the 
                                parent of such child does not provide 
                                consent for an initial evaluation under 
                                clause (i)(I), or the parent fails to 
                                respond to a request to provide the 
                                consent, the local educational agency 
                                may pursue the initial evaluation of 
                                the child through the procedures 
                                described in section 615, except to the 
                                extent inconsistent with State law 
                                relating to such parental consent.
                                  ``(II) For services.--If the parent 
                                of such child does not provide consent 
                                for services under clause (i)(II), or 
                                the parent fails to respond to a 
                                request to provide the consent, the 
                                local educational agency shall not 
                                provide special education and related 
                                services to the child through the 
                                procedures described in section 615.
                                  ``(III) Effect on agency 
                                obligations.--In any case for which 
                                there is an absence of consent for an 
                                initial evaluation under subclause (I), 
                                or for which there is an absence of 
                                consent for services under subclause 
                                (II)--
                                          ``(aa) the local educational 
                                        agency shall not be required to 
                                        convene an IEP meeting or 
                                        develop an IEP under this 
                                        section for the child; and
                                          ``(bb) the local educational 
                                        agency shall not be considered 
                                        to be in violation of any 
                                        requirement under this part 
                                        (including the requirement to 
                                        make available a free 
                                        appropriate public education to 
                                        the child) with respect to the 
                                        lack of an initial evaluation 
                                        of the child, an IEP meeting 
                                        with respect to the child, or 
                                        the development of an IEP under 
                                        this section for the child.
                  ``(E) Rule of construction.--The screening of a 
                student by a teacher or specialist to determine 
                appropriate instructional strategies for curriculum 
                implementation shall not be considered to be an 
                evaluation for eligibility for special education and 
                related services.
          ``(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 needs, 
                        including improved academic achievement, of the 
                        child warrant a reevaluation; or
                          ``(ii) if the child's parent or teacher 
                        requests a reevaluation.
                  ``(B) Limitation.--A reevaluation conducted under 
                subparagraph (A) shall occur--
                          ``(i) no more than once a year, unless the 
                        parent and the local educational agency agree 
                        otherwise; and
                          ``(ii) at least once every three 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 parent 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 multiple up-to-date measures and 
                assessments to gather relevant functional, 
                developmental, and academic information, including 
                information provided by the parent, to 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 
                        education curriculum or, for preschool 
                        children, to participate in appropriate 
                        activities;
                  ``(B) not use any single 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) assessments and other evaluation measures 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 academic and 
                        developmental data;
                          ``(iii) are used for the 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 and educational need.--
        Upon completion of the administration of assessments and other 
        evaluation measures--
                  ``(A) the determination of whether the child is a 
                child with a disability as defined in section 602(3) 
                and the educational needs of the child 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--
                  ``(A) lack of scientifically based instruction 
                practices and programs that contain the essential 
                components of reading instruction (as that term is 
                defined in section 1208(3) of the Elementary and 
                Secondary Education Act of 1965);
                  ``(B) lack of instruction in math; or
                  ``(C) limited English proficiency.
          ``(6) Specific learning disabilities.--
                  ``(A) In general.--Notwithstanding section 607 of 
                this Act, when determining whether a child has a 
                specific learning disability as defined under this Act, 
                the local educational agency shall not be required to 
                take into consideration whether the 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 which determines 
                if a child responds to scientific, research-based 
                intervention.
  ``(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 local or 
                State assessments, and classroom-based 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 is a child with a 
                        disability as defined in section 602(3), and 
                        the educational needs of the child, or, in case 
                        of a reevaluation of a child, whether the child 
                        continues to have such a disability and such 
                        educational needs;
                          ``(ii) the present levels of academic 
                        achievement and related developmental 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 education curriculum.
          ``(2) Source of data.--The local educational agency shall 
        administer such assessments and other evaluation measures 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 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 and 
        to determine the child's educational needs, 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 
                        to determine the child's educational needs; and
                  ``(B) shall not be required to conduct such an 
                assessment unless requested to by the child's parents.
          ``(5) Evaluations before change in eligibility.--A local 
        educational agency shall evaluate a child with a disability in 
        accordance with this section prior to graduation, and before 
        determining that the child is no longer a child with a 
        disability, only in instances where the IEP Team is not in 
        agreement regarding the change in eligibility.
  ``(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, 
                                including--
                                          ``(aa) how the child's 
                                        disability affects the child's 
                                        involvement and progress in the 
                                        general education curriculum;
                                          ``(bb) for preschool 
                                        children, as appropriate, how 
                                        the disability affects the 
                                        child's participation in 
                                        appropriate activities; and
                                          ``(cc) until the beginning of 
                                        the 2005-2006 school year, a 
                                        description of benchmarks or 
                                        short-term objectives, except 
                                        in the case of children with 
                                        disabilities who take alternate 
                                        assessments aligned to 
                                        alternate achievement 
                                        standards, a description of 
                                        benchmarks or short-term 
                                        objectives shall continue to be 
                                        included;
                                  ``(II) a statement of measurable 
                                annual 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 
                                        education curriculum; and
                                          ``(bb) meet 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, based 
                                on peer-reviewed research to the extent 
                                practicable, 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 
                                        education 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;
                                  ``(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 subclause 
                                (III)(cc);
                                  ``(V)(aa) a statement of any 
                                individual appropriate accommodations 
                                in the administration of State or 
                                districtwide assessments of student 
                                achievement that are necessary to 
                                measure the academic achievement of the 
                                child consistent with section 
                                612(a)(16)(A)(ii); and
                                  ``(bb) 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 consistent with 
                                        612(a)(16)(A);
                                  ``(VI) the projected date for the 
                                beginning of the services and 
                                modifications described in subclause 
                                (III), and the anticipated frequency, 
                                location, and duration of those 
                                services and modifications;
                                  ``(VII)(aa) 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);
                                  ``(bb) 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
                                  ``(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 his 
                                or her rights under this title, if any, 
                                that will transfer to the child on 
                                reaching the age of majority under 
                                section 615(l); and
                                  ``(VIII) a statement of--
                                          ``(aa) how the child's 
                                        progress toward the annual 
                                        goals described in subclause 
                                        (II) will be measured; and
                                          ``(bb) 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 the 
                                        sufficiency of their child's 
                                        progress toward the annual 
                                        goals described in subclause 
                                        (II).
                          ``(ii) Rule of construction.--Nothing in this 
                        subparagraph shall be construed to require--
                                  ``(I) that additional information be 
                                included in a child's IEP beyond what 
                                is required in this subsection; and
                                  ``(II) the IEP Team to include 
                                information under one 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) a regular education teacher of such 
                        child, but such teacher shall not be required 
                        to attend a meeting or part of a meeting of the 
                        IEP Team involving issues not related to the 
                        child's participation in the regular education 
                        environment, nor shall multiple regular 
                        education teachers, if the child has more than 
                        one regular education teacher, be required to 
                        attend a meeting, or part of a meeting, of the 
                        IEP team;
                          ``(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 education curriculum; and
                                  ``(III) is knowledgeable about the 
                                availability of resources of the local 
                                educational agency;
                          ``(v) an individual who can interpret the 
                        instructional implications of evaluation 
                        results, who may be a member of the team 
                        described in clauses (ii) through (vi);
                          ``(vi) at the discretion of the parent or the 
                        agency, other individuals who have knowledge or 
                        special expertise regarding the child, 
                        including related services personnel as 
                        appropriate; and
                          ``(vii) whenever appropriate, the child with 
                        a disability.
          ``(2) Requirement that program be in effect.--
                  ``(A) In general.--At the beginning of each school 
                year, each local educational agency, State educational 
                agency, or other State agency, as the case may be, 
                shall have in effect, for each child with a disability 
                in its jurisdiction, an individualized education 
                program, as defined in paragraph (1)(A).
                  ``(B) Program for child aged 3 through 5.--In the 
                case of a child with a disability aged 3 through 5 (or, 
                at the discretion of the State educational agency, a 2 
                year-old child with a disability who will turn age 3 
                during the school year), the IEP Team shall consider 
                the individualized family service plan that contains 
                the material described in section 636, and that is 
                developed in accordance with this section, and the 
                individualized family service plan 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 results of the initial evaluation 
                        or most recent evaluation of the child;
                          ``(ii) the academic and developmental needs 
                        of the child;
                          ``(iii) the strengths of the child; and
                          ``(iv) the concerns of the parents for 
                        enhancing the education of their 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 the use of 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, 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 needs 
                        assistive technology devices and services.
                  ``(C) Requirement with respect to regular education 
                teacher.--The regular education teacher of the child, 
                if a member of the IEP Team pursuant to paragraph 
                (1)(B)(ii), 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)(III).
                  ``(D) IEP team attendance.--The parent of a child 
                with a disability and the local educational agency may 
                jointly excuse any member of the IEP Team from 
                attending all or part of an IEP meeting if they agree 
                that the member's attendance is not necessary. The IEP 
                Team shall obtain the member's input prior to an IEP 
                meeting from which the member is excused.
                  ``(E) Agreement on meeting.--In making changes to a 
                child's IEP after the annual IEP meeting, the parent of 
                a child with a disability and the local educational 
                agency may agree not to reconvene the IEP team and 
                instead develop a written document to amend or modify 
                the child's current IEP.
                  ``(F) Consolidation of iep team meetings.--To the 
                extent possible, the local educational agency shall 
                encourage the consolidation of IEP Team meetings for a 
                child.
                  ``(G) Amendments.--Changes to the IEP may be made 
                either by the entire IEP Team or, as provided in 
                subparagraph (E), by amending the IEP rather than by 
                redrafting the entire IEP.
          ``(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 education 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, 
                if a member of the IEP Team, shall, consistent with 
                this section, participate in the review and revision of 
                the IEP of the child.
          ``(5) Multi-year iep.--
                  ``(A) Development.--The local educational agency may 
                offer to the parent of a child with a disability the 
                option of developing a comprehensive multi-year IEP, 
                not to exceed 3 years, that is designed to cover the 
                natural transition points for the child. With the 
                consent of the parent, the IEP Team shall develop an 
                IEP, as described in paragraphs (1) and (3), that is 
                designed to serve the child for the appropriate multi-
                year period, which includes a statement of--
                          ``(i) measurable goals pursuant to paragraph 
                        (1)(A)(i)(II), coinciding with natural 
                        transition points for the child, that will 
                        enable the child to be involved in and make 
                        progress in the general education curriculum 
                        and that will meet the child's other needs that 
                        result from the child's disability; and
                          ``(ii) measurable annual goals for 
                        determining progress toward meeting the goals 
                        described in clause (i).
                  ``(B) Review and revision of multi-year iep.--
                          ``(i) Requirement.--The IEP Team shall 
                        conduct a review under paragraph (4) of the 
                        child's multi-year IEP at each of the child's 
                        natural transition points.
                          ``(ii) Streamlined annual review process.--In 
                        years other than a child's natural transition 
                        points, 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) amends the IEP, as 
                                appropriate, to enable the child to 
                                continue to meet the measurable goals 
                                set out in the IEP.
                          ``(iii) Comprehensive review process.--If the 
                        IEP Team determines, on the basis of the review 
                        under clause (i), 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 reviews 
                        the IEP under paragraph (4), within 30 calendar 
                        days.
                          ``(iv) Parental preference.--At the request 
                        of the parent, the IEP Team shall conduct a 
                        review under paragraph (4) of the child's 
                        multi-year IEP rather than a streamlined annual 
                        review under clause (ii).
                  ``(C) Definition.--As used in this paragraph, the 
                term `natural transition points' means those periods 
                that are close in time to the transition of a child 
                with a disability from preschool to elementary grades, 
                from elementary grades to middle or junior high school 
                grades, from middle or junior high school grades to 
                high school grades, and from high school grades to 
                post-secondary activities, but in no case longer than 3 
                years.
          ``(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)(VII), the local 
        educational agency shall reconvene the IEP Team to identify 
        alternative strategies to meet the transition objectives for 
        the child set out in that program.
          ``(7) 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)(16) and paragraph (1)(A)(i)(V) of this 
                        subsection (relating to participation of 
                        children with disabilities in general 
                        assessments).
                          ``(ii) The requirements of items (aa) and 
                        (bb) of paragraph (1)(A)(i)(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) 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 and 
615, 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. 205. PROCEDURAL SAFEGUARDS.

  (a) Establishment of Procedures.--Section 615(a) of the Individuals 
with Disabilities Education Act (20 U.S.C. 1415(a)) is amended to read 
as follows:
  ``(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.--Section 615(b) of the Individuals with 
Disabilities Education Act (20 U.S.C. 1415(b)) is amended to read as 
follows:
  ``(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 as appropriate 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 and voluntary binding 
        arbitration, in accordance with subsection (e);
          ``(6) an opportunity to present complaints--
                  ``(A) 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; and
                  ``(B) which set forth a violation that occurred not 
                more than one year before the complaint is filed;
          ``(7)(A) procedures that require the parent of a child with a 
        disability, or the attorney representing the child, to provide 
        notice (which shall remain confidential)--
                  ``(i) to the local educational agency or State 
                educational agency (if the State educational agency is 
                the direct provider of services pursuant to section 
                613(g)), in the complaint filed under paragraph (6); 
                and
                  ``(ii) that shall include--
                          ``(I) the name of the child, the address of 
                        the residence of the child (or, 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;
                          ``(II) a description of the specific issues 
                        regarding 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;
          ``(B) a requirement that a parent of a child with a 
        disability may not have a due process hearing until the parent, 
        or the attorney representing the child, files a notice that 
        meets the requirements of this paragraph; 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.--Section 615(c) of the 
Individuals with Disabilities Education Act (20 U.S.C. 1415(c)) is 
amended to read as follows:
  ``(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 and a description of each evaluation procedure, 
        test, record, or report the agency used as a basis for the 
        proposed or refused action;
          ``(3) 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
          ``(4) sources for parents to contact to obtain assistance in 
        understanding the provisions of this part.''.
  (d) Procedural Safeguards Notice.--Section 615(d) of the Individuals 
with Disabilities Education Act (20 U.S.C. 1415(d)) is amended to read 
as follows:
  ``(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 or parental request for 
                evaluation;
                  ``(B) annually, at the beginning of the school year; 
                and
                  ``(C) upon written request by a parent.
          ``(2) Contents.--The procedural safeguards notice shall 
        include a description of the procedural safeguards, written in 
        the native language of the parents, unless it clearly is not 
        feasible to do so, and written in an easily understandable 
        manner, available under this section and under regulations 
        promulgated by the Secretary relating to--
                  ``(A) independent educational evaluation;
                  ``(B) prior written notice;
                  ``(C) parental consent;
                  ``(D) access to educational records;
                  ``(E) opportunity to present complaints;
                  ``(F) the child's placement during pendency of due 
                process proceedings;
                  ``(G) procedures for students who are subject to 
                placement in an interim alternative educational 
                setting;
                  ``(H) requirements for unilateral placement by 
                parents of children in private schools at public 
                expense;
                  ``(I) mediation, early dispute resolution, and 
                voluntary binding arbitration;
                  ``(J) due process hearings, including requirements 
                for disclosure of evaluation results and 
                recommendations;
                  ``(K) civil actions; and
                  ``(L) attorneys' fees.''.
  (e) Mediation and Voluntary Binding Arbitration.--Section 615(e) of 
the Individuals with Disabilities Education Act (20 U.S.C. 1415(e)) is 
amended to read as follows:
  ``(e) Mediation and Voluntary Binding Arbitration.--
          ``(1) Mediation.--
                  ``(A) 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.
                  ``(B) Requirements.--Such procedures shall meet the 
                following requirements:
                          ``(i) 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.
                          ``(ii) A local educational agency or a State 
                        agency may establish procedures to offer to 
                        parents 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 in the State 
                                established under section 672; or
                                  ``(II) an appropriate alternative 
                                dispute resolution entity;
                        to encourage the use, and explain the benefits, 
                        of the mediation process to the parents.
                          ``(iii) 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.
                          ``(iv) The State shall bear the cost of the 
                        mediation process, including the costs of 
                        meetings described in clause (ii).
                          ``(v) 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.
                          ``(vi) An agreement reached by the parties to 
                        the dispute in the mediation process shall be 
                        set forth in a written mediation agreement.
                          ``(vii) 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.
          ``(2) Voluntary binding arbitration.--
                  ``(A) In general.--A State 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 
                voluntary binding arbitration, which shall be available 
                when a hearing is requested under subsection (f) or 
                (j).
                  ``(B) Requirements.--Such procedures shall meet the 
                following requirements:
                          ``(i) The procedures shall ensure that the 
                        voluntary binding arbitration process--
                                  ``(I) is voluntarily and knowingly 
                                agreed to in writing by the parties; 
                                and
                                  ``(II) is conducted by a qualified 
                                and impartial arbitrator.
                          ``(ii) A local educational agency or a State 
                        agency shall ensure that parents who choose to 
                        use voluntary binding arbitration understand 
                        that the process is in lieu of a due process 
                        hearing under subsection (f) or (j) and that 
                        the decision made by the arbitrator is final, 
                        unless there is fraud by a party or the 
                        arbitrator or misconduct on the part of the 
                        arbitrator.
                          ``(iii) The parties shall jointly agree to 
                        use an arbitrator from a list that the State 
                        shall maintain of individuals who are qualified 
                        arbitrators and knowledgeable in laws and 
                        regulations relating to the provision of 
                        special education and related services.
                          ``(iv) The arbitration shall be conducted 
                        according to State law on arbitration or, if 
                        there is no such applicable State law, in a 
                        manner consistent with the Revised Uniform 
                        Arbitration Act.
                          ``(v) The voluntary binding arbitration shall 
                        be scheduled in a timely manner and shall be 
                        held in a location that is convenient to the 
                        parties to the dispute.''.
  (f) Impartial Due Process Hearing.--Section 615(f) of the Individuals 
with Disabilities Education Act (20 U.S.C. 1415(f)) is amended to read 
as follows:
  ``(f) Impartial Due Process Hearing.--
          ``(1) In general.--
                  ``(A) Access to hearing.--Whenever a complaint has 
                been received under subsection (b)(6) or (j) of this 
                section, 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.
                  ``(B) Resolution session.--
                          ``(i) In general.--Prior to the opportunity 
                        for an impartial due process hearing under 
                        subparagraph (A), the local educational agency 
                        shall convene a meeting with the parents--
                                  ``(I) within 15 days of receiving 
                                notice of the parents' complaint; and
                                  ``(II) 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.
                          ``(ii) Due process hearing.--If the local 
                        educational agency has not resolved the 
                        complaint to the satisfaction of the parents 
                        within 30 days of the receipt of the complaint, 
                        the due process hearing shall occur in 
                        accordance with subparagraph (A).
                          ``(iii) Definition of meeting.--A meeting 
                        conducted pursuant to clause (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 
                                subsection (h)(3).
          ``(2) Disclosure of evaluations and recommendations.--
                  ``(A) In general.--At least 5 business days prior to 
                a hearing conducted pursuant to paragraph (1), each 
                party shall disclose to all other parties all 
                evaluations completed by that date and recommendations 
                based on the offering party's evaluations that the 
                party intends to use at the hearing.
                  ``(B) Failure to disclose.--A hearing officer may bar 
                any party that fails to comply with subparagraph (A) 
                from introducing the relevant evaluation or 
                recommendation at the hearing without the consent of 
                the other party.
          ``(3) Limitation on hearing.--
                  ``(A) Hearing officer.--A hearing conducted pursuant 
                to paragraph (1)(A) may not be conducted by--
                          ``(i) an employee of the State educational 
                        agency or the local educational agency involved 
                        in the education or care of the child; or
                          ``(ii) any person having a personal or 
                        professional interest that would conflict with 
                        his or her objectivity in the hearing.
                  ``(B) Subject matter of hearing.--The parents of the 
                child shall not be allowed to raise issues at the due 
                process hearing that were not raised in the complaint 
                or discussed during the meeting conducted pursuant to 
                subparagraph (1)(B), unless the local educational 
                agency agrees otherwise.
                  ``(C) Decision of hearing officer.--A decision made 
                by a hearing officer must be based on a determination 
                of whether or not the child received a free appropriate 
                public education.''.
  (g) Appeal.--Section 615 of the Individuals with Disabilities 
Education Act (20 U.S.C. 1415) is amended by striking subsection (g).
  (h) Safeguards.--Section 615 of the Individuals with Disabilities 
Education Act (20 U.S.C. 1415) is amended--
          (1) by redesignating subsection (h) as subsection (g); and
          (2) by amending subsection (g) (as redesignated) to read as 
        follows:
  ``(g) Safeguards.--Any party to a hearing conducted pursuant to 
subsection (f) or (j) shall be accorded--
          ``(1) the right to be represented by counsel and by non-
        attorney advocates and to be accompanied and advised by 
        individuals with special knowledge or training with respect to 
        the problems of children with disabilities;
          ``(2) the right to present evidence and confront, cross-
        examine, and compel the attendance of witnesses;
          ``(3) the right to a written, or, at the option of the 
        parents, electronic verbatim record of such hearing; and
          ``(4) the right to written, or, at the option of the parents, 
        electronic findings of fact and decisions (which findings and 
        decisions shall be made available to the public consistent with 
        the requirements of section 617(d)) (relating to the 
        confidentiality of data, information, and records).''.
  (i) Administrative Procedures.--Section 615 of the Individuals with 
Disabilities Education Act (20 U.S.C. 1415) is amended--
          (1) by redesignating subsection (i) as subsection (h); and
          (2) in subsection (h) (as redesignated)--
                  (A) in paragraph (1)--
                          (i) by striking ``In general.--'' and all 
                        that follows through ``A decision made in a 
                        hearing'' and inserting ``In general.--A 
                        decision made in a hearing'';
                          (ii) by striking ``(k)'' and inserting 
                        ``(j)'';
                          (iii) by striking ``subsection (g) and''; and
                          (iv) by striking subparagraph (B);
                  (B) in paragraph (2)(A), by striking ``subsection (f) 
                or (k) who does not have the right to an appeal under 
                subsection (g)'' and inserting ``subsection (f) or 
                (j)''; and
                  (C) in paragraph (3), by amending subparagraph (C) to 
                read as follows:
                  ``(C) Determination of amount of attorneys' fees.--
                          ``(i) In general.--Fees awarded under this 
                        paragraph shall be based on rates determined by 
                        the Governor of the State (or other appropriate 
                        State official) 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.
                          ``(ii) Notice.--The Governor of the State (or 
                        other appropriate State official) shall make 
                        available to the public on an annual basis the 
                        rates described in clause (i).''.
  (j) Maintenance of Current Educational Placement.--Section 615 of the 
Individuals with Disabilities Education Act (20 U.S.C. 1415) is 
amended--
          (1) by redesignating subsection (j) as subsection (i); and
          (2) by amending subsection (i) (as redesignated) to read as 
        follows:
  ``(i) Maintenance of Current Educational Placement.--Except as 
provided in subsection (j)(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.--Section 615 of the 
Individuals with Disabilities Education Act (20 U.S.C. 1415) is 
amended--
          (1) by redesignating subsection (k) as subsection (j); and
          (2) by amending subsection (j) (as redesignated) to read as 
        follows:
  ``(j) 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 policy 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).
                  ``(B) Additional authority.--Subject to subparagraph 
                (C), and notwithstanding any other provision of this 
                Act, 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 policy to an 
                appropriate interim alternative educational setting 
                selected 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, for not 
                more than 45 school days (to the extent such 
                alternative and such duration would be applied to 
                children without disabilities, and which may include 
                consideration of unique circumstances on a case-by-case 
                basis), except that the change in placement may last 
                beyond 45 school days if required by State law or 
                regulation for the violation in question, to ensure the 
                safety and appropriate educational atmosphere in the 
                schools under the jurisdiction of the local educational 
                agency.
                  ``(C) Services.--A child with a disability who is 
                removed from the child's current placement under 
                subparagraph (B) shall--
                          ``(i) continue to receive educational 
                        services selected 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) continue to receive behavioral 
                        intervention services designed to address the 
                        behavior violation so that it does not recur.
          ``(2) Determination of setting.--The alternative educational 
        setting described in paragraph (1)(B) shall be determined by 
        the IEP Team.
          ``(3) Parent appeal.--
                  ``(A) In general.--If the parent of a child with a 
                disability disagrees with any decision regarding 
                placement or punishment under this section, the parent 
                may request a hearing.
                  ``(B) Authority of hearing officer.--If a parent of a 
                child with a disability disagrees with a decision 
                regarding placement of the child or punishment of the 
                child under this section, including duration of the 
                punishment, the hearing officer may determine whether 
                the decision regarding such action was appropriate.
          ``(4) Placement during appeals.--When a parent requests a 
        hearing regarding a disciplinary action described in paragraph 
        (1)(B) to challenge the interim alternative educational setting 
        or the violation of the code of student conduct policy, 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.
          ``(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 
                policy, 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; or
                          ``(iii) the teacher of the child, or other 
                        personnel of the local educational agency, has 
                        expressed concern in writing 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 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) 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 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) In general.--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) Transmission 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 it 
                reports the crime.''.
  (l) Rule of Construction.--Section 615 of the Individuals with 
Disabilities Education Act (20 U.S.C. 1415) is amended by redesignating 
subsection (l) as subsection (k).
  (m) Transfer of Parental Rights at Age of Majority.--Section 615 of 
the Individuals with Disabilities Education Act (20 U.S.C. 1415) is 
amended--
          (1) by redesignating subsection (m) as subsection (l); and
          (2) by amending subsection (l) (as redesignated) to read as 
        follows:
  ``(l) 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. 206. MONITORING, ENFORCEMENT, WITHHOLDING, AND JUDICIAL REVIEW.

  Section 616 of the Individuals with Disabilities Education Act (20 
U.S.C. 1416) is amended--
          (1) by amending the heading to read as follows:

``SEC. 616. MONITORING, ENFORCEMENT, WITHHOLDING, AND JUDICIAL 
                    REVIEW.'';

          (2) by redesignating subsections (a) through (c) as 
        subsections (e) through (g), respectively; and
          (3) by inserting before subsection (e) (as redesignated) the 
        following:
  ``(a) Federal Monitoring.--
          ``(1) In general.--The Secretary shall monitor implementation 
        of this Act.
          ``(2) Focused monitoring.--The primary focus of Federal 
        monitoring activities shall be to improve educational results 
        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.
  ``(b) Indicators.--
          ``(1) Required indicators.--The Secretary shall examine 
        relevant information and data related to States' progress on 
        improving educational results for children with disabilities by 
        reviewing--
                  ``(A) achievement results of children with 
                disabilities on State or district assessments, 
                including children with disabilities taking State or 
                district assessments with appropriate accommodations;
                  ``(B) achievement results of children with 
                disabilities on State or district alternate 
                assessments;
                  ``(C) graduation rates of children with disabilities 
                and graduation rates of children with disabilities as 
                compared to graduation rates of nondisabled children; 
                and
                  ``(D) dropout rates for children with disabilities 
                and dropout rates of children with disabilities as 
                compared to dropout rates of nondisabled children.
          ``(2) Permissive indicators.--The Secretary also may 
        establish other priorities for review of relevant information 
        and data, including data provided by States under section 618, 
        and also including the following:
                  ``(A) Priorities for this part.--The Secretary may 
                give priority to monitoring on the following areas 
                under this part:
                          ``(i) Provision of educational services in 
                        the least restrictive environment, including--
                                  ``(I) education of children with 
                                disabilities with nondisabled peers to 
                                the maximum extent appropriate;
                                  ``(II) provision of appropriate 
                                special education and related services;
                                  ``(III) access to the general 
                                curriculum with appropriate 
                                accommodations;
                                  ``(IV) provision of appropriate 
                                services to students whose behavior 
                                impedes learning; and
                                  ``(V) participation and performance 
                                of children with disabilities on State 
                                and local assessments, including 
                                alternate assessments.
                          ``(ii) Secondary transition, including the 
                        extent to which youth exiting special education 
                        are prepared for post-secondary education, 
                        employment, and adult life, and are 
                        participants in appropriate transition planning 
                        while in school.
                          ``(iii) State exercise of general supervisory 
                        authority, including effective monitoring and 
                        use of complaint resolution, mediation, and 
                        voluntary binding arbitration.
                  ``(B) Priorities for part c.--The Secretary may give 
                priority to monitoring on the following areas under 
                part C:
                          ``(i) Child find and public awareness to 
                        support the identification, evaluation and 
                        assessment of all eligible infants and 
                        toddlers, including the provision of culturally 
                        relevant materials to inform and promote 
                        referral.
                          ``(ii) Provision of early intervention 
                        services in natural environments, evaluation 
                        and assessment to identify child needs and 
                        family needs related to enhancing the 
                        development of the child, and provision of 
                        appropriate early intervention services in 
                        natural environments to meet the needs of 
                        individual children.
                          ``(iii) Effective early childhood transition 
                        to services under this part.
                          ``(iv) State exercise of general supervisory 
                        authority, including--
                                  ``(I) effective monitoring and use of 
                                other mechanisms such as complaint 
                                resolution;
                                  ``(II) implementation of mediation 
                                and voluntary binding arbitration; and
                                  ``(III) coordination of parent and 
                                child protections.
          ``(3) Data collection and analysis.--The Secretary shall 
        review the data collection and analysis capacity of States to 
        ensure that data and information is collected, analyzed, and 
        accurately reported to the Secretary. The Secretary may provide 
        technical assistance to improve the capacity of States to meet 
        data requirements.
  ``(c) Additional Priorities.--
          ``(1) In general.--The Secretary may develop additional 
        priorities for monitoring the effective implementation of this 
        Act.
          ``(2) Public comment.--The Secretary shall provide a public 
        comment period of at least 30 days on any additional priority 
        proposed under this part or part C.
          ``(3) Date of enforcement.--The Secretary may not begin to 
        enforce a new priority until one year from the date of 
        publication of the priority in the Federal Register as a final 
        rule.
  ``(d) Compliance.--
          ``(1) In general.--The Secretary shall review State data to 
        determine whether the State is in compliance with the 
        provisions of this Act.
          ``(2) Lack of progress.--If after examining data, as provided 
        in section (b) or (c), the Secretary determines that a State is 
        not making satisfactory progress in improving educational 
        results for children with disabilities, the Secretary shall 
        take one or more of the following actions:
                  ``(A) Advise the State of available sources of 
                technical assistance that may help the State address 
                the lack of progress, which may include assistance from 
                the Office of Special Education Programs, other offices 
                of the Department of Education, other Federal agencies, 
                technical assistance providers approved by the 
                Secretary, and other federally funded nonprofit 
                agencies. Such technical assistance may include--
                          ``(i) the provision of advice by experts to 
                        address the areas of noncompliance, including 
                        explicit plans for ensuring compliance within a 
                        specified period of time;
                          ``(ii) assistance in identifying and 
                        implementing professional development, 
                        instructional strategies, and methods of 
                        instruction that are based on scientifically 
                        based research;
                          ``(iii) designating and using distinguished 
                        superintendents, principals, special education 
                        administrators, regular education teachers, and 
                        special education teachers to provide advice, 
                        technical assistance, and support; and
                          ``(iv) devising additional approaches to 
                        providing technical assistance, such as 
                        collaborating with institutions of higher 
                        education, educational service agencies, 
                        national centers of technical assistance 
                        supported under part D, and private providers 
                        of scientifically based technical assistance.
                  ``(B) Direct the use of State level funds for 
                technical assistance on the area or areas of 
                unsatisfactory performance.
                  ``(C) Each year withhold at least 20 but no more than 
                50 percent of the State's funds 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.
          ``(3) Substantial non-compliance.--
                  ``(A) Initial determination.--When the Secretary 
                determines that a State is not in substantial 
                compliance with any provision of this part, the 
                Secretary shall take one 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 one year.
                          ``(ii) Identify the State as a high-risk 
                        grantee and impose special conditions on the 
                        State's grant.
                          ``(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 one year.
                          ``(iv) Recovery of funds under section 452 of 
                        the General Education Provisions Act.
                          ``(v)(I) Withholding of payments under 
                        subsection (e).
                          ``(II) Pending the outcome of any hearing to 
                        withhold payments under subsection (e), 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.
                  ``(B) Continued non-compliance.--
                          ``(i) Secretarial action.--If the Secretary 
                        has imposed special conditions on a grant under 
                        subparagraph (A)(ii) for substantially the same 
                        compliance problems for three consecutive 
                        years, and at the end of the third year the 
                        State has not demonstrated that the violation 
                        has been corrected to the satisfaction of the 
                        Secretary, the Secretary shall take such 
                        additional enforcement actions as the Secretary 
                        determines to be appropriate from among those 
                        actions specified in clauses (iii) through (v) 
                        of subparagraph (A).
                          ``(ii) Report to Congress.--The Secretary 
                        shall report to Congress within 30 days of 
                        taking enforcement action pursuant to this 
                        paragraph on the specific action taken and the 
                        reasons why enforcement action was taken.''.

SEC. 207. ADMINISTRATION.

  Section 617 of the Individuals with Disabilities Education Act (20 
U.S.C. 1417) is amended to read as follows:

``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) Prohibition Against Federal Mandates, Direction, or Control.--
Nothing in this Act may be construed to authorize an officer or 
employee of the Federal Government to mandate, direct, or control a 
State, local educational agency, or school's specific instructional 
content, curriculum, or program of instruction.
  ``(c) Confidentiality.--The Secretary shall take appropriate action, 
in accordance with section 444 of the General Education Provisions Act 
(20 U.S.C. 1232g), to ensure 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.
  ``(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 and 661 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.
  ``(e) Pilot Program.--The Secretary is authorized to grant waivers of 
paperwork requirements under this part for a period of time not to 
exceed 4 years with respect to not more than 10 States based on 
proposals submitted by States for addressing reduction of paperwork and 
non-instructional time spent fulfilling statutory and regulatory 
requirements.
  ``(f) Report.--The Secretary shall include in the annual report to 
Congress under section 426 of the Department of Education Organization 
Act information related to the effectiveness of waivers granted under 
subsection (e)--
          ``(1) in reducing the paperwork burden on teachers, 
        administrators, and related services providers and non-
        instructional time spent by teachers in complying with this 
        part, including any specific recommendations for broader 
        implementation; and
          ``(2) in enhancing longer-term educational planning, 
        improving positive outcomes for children with disabilities, 
        promoting collaboration between IEP Team members, and ensuring 
        satisfaction of family members, including any specific 
        recommendations for broader implementation.
  ``(g) Model Forms.--Not later than the date on which the Secretary 
publishes final regulations to implement this part (as amended by the 
Improving Education Results for Children With Disabilities Act of 
2003), the Secretary shall publish and disseminate widely to States, 
local educational agencies, and parent training and information 
centers--
          ``(1) a model individualized education program form;
          ``(2) a model form for the procedural safeguards notice 
        described in section 615(d); and
          ``(3) a model form for the prior written notice described in 
        section 615(b)(3);
that would be consistent with the requirements of this part and be 
deemed to be sufficient to meet such requirements.''.

SEC. 208. PROGRAM INFORMATION.

  Section 618 of the Individuals with Disabilities Education Act (20 
U.S.C. 1418) is amended to read as follows:

``SEC. 618. PROGRAM INFORMATION.

  ``(a) In General.--Each State and local educational agency 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 and percentage of children with 
                disabilities, by race, ethnicity, and disability 
                category, who are receiving a free appropriate public 
                education;
                  ``(ii) the number and percentage of children with 
                disabilities, by race and ethnicity, who are receiving 
                early intervention services;
                  ``(iii) the number and percentage of children with 
                disabilities, by race, ethnicity, and disability 
                category, who are participating in regular education;
                  ``(iv) the number and percentage 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 and percentage of children with 
                disabilities, by race and ethnicity, and disability 
                category who begin secondary school and graduate with a 
                regular high school diploma, through the age of 21;
                  ``(vi) the number and percentage 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;
                  ``(vii) the number and percentage 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;
                  ``(viii)(I) the number and percentage of children 
                with disabilities, by race, ethnicity, and disability 
                category, who under subparagraph (A) or (B) of section 
                615(j)(1), are removed to an interim alternative 
                educational setting;
                  ``(II) the acts or items precipitating those 
                removals;
                  ``(III) the number of children with disabilities, by 
                race, ethnicity, and disability category, who are 
                subject to long-term suspensions or expulsions; and
                  ``(IV) the incidence, duration, and type of 
                disciplinary actions, by race and ethnicity, including 
                suspension and expulsions;
                  ``(ix) the number of complaints resolved through 
                voluntary binding arbitration; and
                  ``(x) the number of mediations held and the number of 
                settlement agreements reached through mediation;
          ``(B) on 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
          ``(C) on the number of children served with funds under 
        section 613(f); 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 and ethnicity is 
        occurring in the State and the local educational agencies of 
        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--
                  ``(A) 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;
                  ``(B) shall require any local educational agency 
                identified under paragraph (1) to reserve the maximum 
                amount of funds under section 613(f) to provide 
                comprehensive coordinated prereferral support services 
                to serve children in the local educational agency, 
                particularly children in those groups that were 
                significantly overidentified under paragraph (1); and
                  ``(C) shall require the local educational agency to 
                publicly report on the revision of policies, practices, 
                and procedures described under subparagraph (A).''.

SEC. 209. PRESCHOOL GRANTS.

  Section 619 of the Individuals with Disabilities Education Act (20 
U.S.C. 1419) is amended to read as follows:

``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 funds among 
        the States in accordance with paragraph (2) or (3), as 
        appropriate.
          ``(2) Increase in funds.--If the amount available for 
        allocations to States under paragraph (1) is equal to or 
        greater than the amount allocated to the States under this 
        section for the preceding fiscal year, those allocations shall 
        be calculated as follows:
                  ``(A)(i) Except as provided in subparagraph (B), the 
                Secretary shall--
                          ``(I) allocate to each State the amount it 
                        received for fiscal year 1997;
                          ``(II) allocate 85 percent of any remaining 
                        funds to States on the basis of their relative 
                        populations of children aged 3 through 5; and
                          ``(III) allocate 15 percent of those 
                        remaining funds to States on the basis of their 
                        relative populations of all children aged 3 
                        through 5 who are living in poverty.
                  ``(ii) For the purpose of making grants under this 
                paragraph, the Secretary shall use the most recent 
                population data, including data on children living in 
                poverty, that are available and satisfactory to the 
                Secretary.
                  ``(B) Notwithstanding subparagraph (A), allocations 
                under this paragraph shall be subject to the following:
                          ``(i) No State's allocation shall be less 
                        than its allocation for the preceding fiscal 
                        year.
                          ``(ii) No State's allocation shall be less 
                        than the greatest of--
                                  ``(I) the sum of--
                                          ``(aa) the amount it received 
                                        for fiscal year 1997; and
                                          ``(bb) one third of one 
                                        percent of the amount by which 
                                        the amount appropriated under 
                                        subsection (j) exceeds the 
                                        amount appropriated under this 
                                        section for fiscal year 1997;
                                  ``(II) the sum of--
                                          ``(aa) the amount it received 
                                        for the preceding fiscal year; 
                                        and
                                          ``(bb) that amount multiplied 
                                        by the percentage by which the 
                                        increase in the funds 
                                        appropriated from the preceding 
                                        fiscal year exceeds 1.5 
                                        percent; or
                                  ``(III) the sum of--
                                          ``(aa) the amount it received 
                                        for the preceding fiscal year; 
                                        and
                                          ``(bb) that amount multiplied 
                                        by 90 percent of the percentage 
                                        increase in the amount 
                                        appropriated from the preceding 
                                        fiscal year.
                          ``(iii) Notwithstanding clause (ii), no 
                        State's allocation under this paragraph shall 
                        exceed the sum of--
                                  ``(I) the amount it received for the 
                                preceding fiscal year; and
                                  ``(II) that amount multiplied by the 
                                sum of 1.5 percent and the percentage 
                                increase in the amount appropriated.
                  ``(C) If the amount available for allocations under 
                this paragraph is insufficient to pay those allocations 
                in full, those allocations shall be ratably reduced, 
                subject to subparagraph (B)(i).
          ``(3) Decrease in funds.--If the amount available for 
        allocations to States under paragraph (1) is less than the 
        amount allocated to the States under this section for the 
        preceding fiscal year, those allocations shall be calculated as 
        follows:
                  ``(A) If the amount available for allocations is 
                greater than the amount allocated to the States for 
                fiscal year 1997, each State shall be allocated the sum 
                of--
                          ``(i) the amount it received for fiscal year 
                        1997; and
                          ``(ii) an amount that bears the same relation 
                        to any remaining funds as the increase the 
                        State received for the preceding fiscal year 
                        over fiscal year 1997 bears to the total of all 
                        such increases for all States.
                  ``(B) If the amount available for allocations is 
                equal to or less than the amount allocated to the 
                States for fiscal year 1997, each State shall be 
                allocated the amount it received for that year, ratably 
                reduced, if necessary.
  ``(d) Reservation for State Activities.--
          ``(1) In general.--Each State may retain not more than the 
        amount described in paragraph (2) for administration and other 
        State-level activities in accordance with subsections (e) and 
        (f).
          ``(2) Amount described.--For each fiscal year, the Secretary 
        shall determine and report to the State educational agency an 
        amount that is 25 percent of the amount the State received 
        under this section for fiscal year 1997, cumulatively adjusted 
        by the Secretary for each succeeding fiscal year by the lesser 
        of--
                  ``(A) the percentage increase, if any, from the 
                preceding fiscal year in the State's allocation under 
                this section; or
                  ``(B) the percentage increase, if any, from the 
                preceding fiscal year in the Consumer Price Index For 
                All Urban Consumers published by the Bureau of Labor 
                Statistics of the Department of Labor.
  ``(e) State Administration.--
          ``(1) In general.--For the purpose of administering this 
        section (including the coordination of activities under this 
        part with, and providing technical assistance to, other 
        programs that provide services to children with disabilities) a 
        State may use not more than 20 percent of the maximum amount it 
        may retain under subsection (d) for any fiscal year.
          ``(2) Administration of part c.--Funds described in paragraph 
        (1) may also be used for the administration of part C of this 
        Act, if the State educational agency is the lead agency for the 
        State under that part.
  ``(f) Other State-Level Activities.--Each State shall use any funds 
it retains under subsection (d) and does not use for administration 
under subsection (e)--
          ``(1) for support services (including establishing and 
        implementing the mediation and voluntary binding arbitration 
        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)(16) and to support implementation of the State plan 
        under subpart 1 of part D if the State receives funds under 
        that subpart; or
          ``(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 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 all of 
        the grant funds that it does not reserve under subsection (d) 
        to local educational agencies in the State that have 
        established their eligibility under section 613, as follows:
                  ``(A) Base payments.--The State shall first award 
                each agency described in paragraph (1) the amount that 
                agency would have received under this section for 
                fiscal year 1997 if the State had distributed 75 
                percent of its grant for that year under section 
                619(c)(3), as then in effect.
                  ``(B) Allocation of remaining funds.--After making 
                allocations under subparagraph (A), the State shall--
                          ``(i) allocate 85 percent of any remaining 
                        funds to those agencies on the basis of the 
                        relative numbers of children enrolled in public 
                        and private elementary and secondary schools 
                        within the agency's jurisdiction; and
                          ``(ii) allocate 15 percent of those remaining 
                        funds to those agencies in accordance with 
                        their relative numbers of children living in 
                        poverty, as determined by the State educational 
                        agency.
          ``(2) Reallocation of funds.--If a State educational agency 
        determines that a local educational agency is adequately 
        providing a free appropriate public education to all children 
        with disabilities aged 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 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 2004 and such sums as may be 
necessary for each subsequent fiscal year.''.

           TITLE III--INFANTS AND TODDLERS WITH DISABILITIES

SEC. 301. SECTIONS 631 THROUGH 638 OF THE INDIVIDUALS WITH DISABILITIES 
                    EDUCATION ACT.

  Sections 631 through 638 of the Individuals with Disabilities 
Education Act (20 U.S.C. 1431-1438) are amended to read as follows:

``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 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 address family-identified 
                priorities and concerns that are determined by 
                individualized family service plan team to relate to 
                enhancing the child's development 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, family therapy, 
                        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) registered dietitians;
                          ``(ix) family therapists;
                          ``(x) vision specialists, including 
                        ophthalmologists and optometrists;
                          ``(xi) orientation and mobility specialists; 
                        and
                          ``(xii) pediatricians and other physicians;
                  ``(G) to the maximum extent appropriate, are provided 
                in natural environments, including the home, and 
                community settings in which children without 
                disabilities participate; and
                  ``(H) are provided in conformity with an 
                individualized family service plan adopted in 
                accordance with section 636.
          ``(5) Infant or toddler with a disability.--The term `infant 
        or toddler with a disability '--
                  ``(A) means an individual under 3 years of age who 
                needs early intervention services because the 
                individual--
                          ``(i) is experiencing developmental delays, 
                        as measured by appropriate diagnostic 
                        instruments and procedures in one or more of 
                        the areas of cognitive development, physical 
                        development, communication development, social 
                        or emotional development, and adaptive 
                        development; or
                          ``(ii) has a diagnosed physical or mental 
                        condition which has a high probability of 
                        resulting in developmental delay;
                  ``(B) may also include, at a State's discretion, at-
                risk infants and toddlers; and
                  ``(C) may also include, at a State's discretion, a 
                child aged 3 through 5, who previously received 
                services under this part and who is eligible for 
                services under section 619, if--
                          ``(i) services provided to this age group 
                        under this part include an educational 
                        component that promotes school readiness and 
                        incorporates scientifically based pre-literacy, 
                        language, and numeracy skills; and
                          ``(ii) parents are provided a written 
                        notification of their rights and 
                        responsibilities in determining whether their 
                        child will continue to receive services under 
                        this part or participate in preschool programs 
                        assisted under section 619.

``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 provide assurances 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 based on scientifically 
        based research 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 to be given to parents, especially to inform 
        parents with premature infants, or infants with other physical 
        risk factors associated with learning or developmental 
        complications, on the availability of early intervention 
        services under this part and of services under section 619 of 
        this Act, and procedures for assisting such sources in 
        disseminating 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 respecting the basic components of 
        early intervention services available in the State that--
                  ``(A) shall include--
                          ``(i) implementing innovative strategies and 
                        activities for the recruitment and retention of 
                        early education service providers;
                          ``(ii) promoting the preparation of early 
                        intervention providers who are fully and 
                        appropriately qualified to provide early 
                        intervention services under this part; and
                          ``(iii) training personnel to coordinate 
                        transition services for infants and toddlers 
                        served under this part from a program providing 
                        early intervention services under this part and 
                        under part B (other than section 619), to a 
                        preschool program receiving funds under section 
                        619, or another appropriate program; and
                  ``(B) may include--
                          ``(i) training personnel to work in rural and 
                        inner-city areas; and
                          ``(ii) training personnel in the emotional 
                        and social development of young children.
          ``(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 
        the establishment and maintenance of standards that are 
        consistent with any State-approved or recognized certification, 
        licensing, registration, or other comparable requirements that 
        apply to the area in which such personnel are providing early 
        intervention services.
          ``(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)--
                  ``(A) to the maximum extent appropriate, early 
                intervention services are provided in natural 
                environments; and
                  ``(B) the provision of early intervention services 
                for any infant or toddler occurs in a setting other 
                than a natural environment only when early intervention 
                cannot be achieved satisfactorily for the infant or 
                toddler in a natural environment.
  ``(b) Policy.--In implementing subsection (a)(9), a State may adopt a 
policy that includes making ongoing good-faith efforts to recruit and 
hire appropriately and adequately trained personnel to provide early 
intervention services to infants and toddlers with disabilities, 
including, in a geographic area of the State where there is a shortage 
of such personnel, the most qualified individuals available who are 
making satisfactory progress toward completing applicable course work 
necessary to meet the standards described in subsection (a)(9), 
consistent with State law within 3 years.
  ``(c) Treatment of Children Aged 3 through 5.--
          ``(1) In general.--If a State includes children described in 
        section 632(5)(C) in the system described in section 633, the 
        State shall be considered to have fulfilled any obligation 
        under part B with respect to the provision of a free 
        appropriate public education to those children during the 
        period in which they are receiving services under this part.
          ``(2) Construction.--Nothing in paragraph (1) shall be 
        construed to alter or diminish the rights and protections 
        afforded under this part to children described in such 
        paragraph.

``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's entrance in school.
  ``(b) Periodic Review.--The individualized family service plan shall 
be evaluated once a year and the family shall be provided a review of 
the plan at 6-month intervals (or more often where appropriate based on 
infant or toddler and family needs).
  ``(c) Promptness After Assessment.--The individualized family service 
plan shall be developed within a reasonable time after the assessment 
required by subsection (a)(1) is completed. With the parents' consent, 
early intervention services may commence prior to the completion of the 
assessment.
  ``(d) Content of Plan.--The individualized family service plan shall 
be in writing and contain--
          ``(1) a statement of the infant's or toddler 's present 
        levels of physical development, cognitive development, 
        communication development, social or emotional development, and 
        adaptive development, based on objective criteria;
          ``(2) a statement of the family 's resources, priorities, and 
        concerns relating to enhancing the development of the family 's 
        infant or toddler with a disability;
          ``(3) a statement of the major goals expected to be achieved 
        for the infant or toddler and the family, including pre-
        literacy and language skills, as developmentally appropriate 
        for the child, and the criteria, procedures, and timelines used 
        to determine the degree to which progress toward achieving the 
        goals is being made and whether modifications or revisions of 
        the goals or services are necessary;
          ``(4) a statement of specific early intervention services 
        based on peer-reviewed research, to the extent practicable, 
        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 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 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 statewide system, a description of such 
        services;
          ``(5) a description of the State policies and procedures 
        requiring the referral of a child under the age 3 who is 
        involved in a substantiated case of child abuse or neglect 
        consistent with section 635(a)(5) or who is born and identified 
        with fetal alcohol effects, fetal alcohol syndrome, neonatal 
        intoxication, or neonatal physical or neurological harm 
        resulting from prenatal drug exposure;
          ``(6) a description of the uses for which funds will be 
        expended in accordance with this part;
          ``(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 
                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;
          ``(10) a description of State efforts to promote 
        collaboration between Early Head Start programs, child care, 
        and services under part C of this Act; and
          ``(11) such other information and assurances as the Secretary 
        may reasonably require.
  ``(b) Assurances.--The application described in subsection (a)--
          ``(1) shall provide satisfactory assurance that Federal funds 
        made available under section 643 to the State will be expended 
        in accordance with this part;
          ``(2) shall contain an assurance that the State will comply 
        with the requirements of section 640;
          ``(3) shall provide satisfactory assurance that the control 
        of funds provided under section 643, and title to property 
        derived from those funds, will be in a public agency for the 
        uses and purposes provided in this part and that a public 
        agency will administer such funds and property;
          ``(4) shall provide for--
                  ``(A) making such reports in such form and containing 
                such information as the Secretary may require to carry 
                out the Secretary's functions under this part; and
                  ``(B) keeping such records and affording such access 
                to them as the Secretary may find necessary to ensure 
                the correctness and verification of those reports and 
                proper disbursement of Federal funds under this part;
          ``(5) provide satisfactory assurance that Federal funds made 
        available under section 643 to the State--
                  ``(A) will not be commingled with State funds; and
                  ``(B) will be used so as to supplement the level of 
                State and local funds expended for infants and toddlers 
                with disabilities and their families and in no case to 
                supplant those State and local funds;
          ``(6) shall provide satisfactory assurance that such fiscal 
        control and fund accounting procedures will be adopted as may 
        be necessary to ensure proper disbursement of, and accounting 
        for, Federal funds paid under section 643 to the State;
          ``(7) shall provide satisfactory assurance that policies and 
        procedures have been adopted to ensure meaningful involvement 
        of underserved groups, including minority, low-income, and 
        rural families, in the planning and implementation of all the 
        requirements of this part; and
          ``(8) shall contain such other information and assurances as 
        the Secretary may reasonably require by regulation.
  ``(c) Standard for Disapproval of Application.--The Secretary may not 
disapprove such an application unless the Secretary determines, after 
notice and opportunity for a hearing, that the application fails to 
comply with the requirements of this section.
  ``(d) Subsequent State Application.--If a State has on file with the 
Secretary a policy, procedure, or assurance that demonstrates that the 
State meets a requirement of this section, including any policy or 
procedure filed under this part (as in effect before the date of the 
enactment of the Improving Education Results for Children With 
Disabilities 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; 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 followup 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. 302. SECTIONS 641 THROUGH 645 OF THE INDIVIDUALS WITH DISABILITIES 
                    EDUCATION ACT.

  Sections 641 through 645 of the Individuals with Disabilities 
Education Act (20 U.S.C. 1441-1445) are amended to read as follows:

``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.
                  ``(J) Mental health agency.--At least one 
                representative from the State agency responsible for 
                children's mental health.
                  ``(K) Child welfare agency.--At least one 
                representative from the State agency responsible for 
                child protective services.
                  ``(L) Office of the coordinator for the education of 
                homeless children and youth.--At least one 
                representative designated by the Office of the 
                Coordinator.
          ``(2) Other members.--The council may include other members 
        selected by the Governor, including a representative from the 
        Bureau of Indian Affairs, or where there is no BIA-operated or 
        BIA-funded school, from the Indian Health Service or the tribe 
        or tribal council.
  ``(c) Meetings.--The council shall meet at least quarterly and in 
such places as it deems necessary. The meetings shall be publicly 
announced, and, to the extent appropriate, open and accessible to the 
general public.
  ``(d) Management Authority.--Subject to the approval of the Governor, 
the council may prepare and approve a budget using funds under this 
part to conduct hearings and forums, to reimburse members of the 
council for reasonable and necessary expenses for attending council 
meetings and performing council duties (including child care for parent 
representatives), to pay compensation to a member of the council if the 
member is not employed or must forfeit wages from other employment when 
performing official council business, to hire staff, and to obtain the 
services of such professional, technical, and clerical personnel as may 
be necessary to carry out its functions under this part.
  ``(e) Functions of Council.--
          ``(1) Duties.--The council shall--
                  ``(A) advise and assist the lead agency designated or 
                established under section 635(a)(10) in the performance 
                of the responsibilities set forth in such section, 
                particularly the identification of the sources of 
                fiscal and other support for services for early 
                intervention programs, assignment of financial 
                responsibility to the appropriate agency, and the 
                promotion of the interagency agreements;
                  ``(B) advise and assist the lead agency in the 
                preparation of applications and amendments thereto;
                  ``(C) advise and assist the State educational agency 
                regarding the transition of toddlers with disabilities 
                to preschool and other appropriate services; and
                  ``(D) prepare and submit an annual report to the 
                Governor and to the Secretary on the status of early 
                intervention programs for infants and toddlers with 
                disabilities and their families operated within the 
                State.
          ``(2) Authorized activity.--The council may advise and assist 
        the lead agency and the State educational agency regarding the 
        provision of appropriate services for children from birth 
        through age 5. The council may advise appropriate agencies in 
        the State with respect to the integration of services for 
        infants and toddlers with disabilities and at-risk infants and 
        toddlers and their families, regardless of whether at-risk 
        infants and toddlers are eligible for early intervention 
        services in the State.
  ``(f) Conflict of Interest.--No member of the council shall cast a 
vote on any matter that would provide direct financial benefit to that 
member or otherwise give the appearance of a conflict of interest under 
State law.

``SEC. 642. FEDERAL ADMINISTRATION.

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

``SEC. 643. ALLOCATION OF FUNDS.

  ``(a) Reservation of Funds for Outlying Areas.--
          ``(1) In general.--From the sums appropriated to carry out 
        this part for any fiscal year, the Secretary may reserve up to 
        one percent for payments to Guam, American Samoa, the Virgin 
        Islands, and the Commonwealth of the Northern Mariana Islands 
        in accordance with their respective needs.
          ``(2) Consolidation of funds.--The provisions of Public Law 
        95-134, permitting the consolidation of grants to the outlying 
        areas, shall not apply to funds those areas receive under this 
        part.
  ``(b) Payments to Indians.--
          ``(1) In general.--The Secretary shall, subject to this 
        subsection, make payments to the Secretary of the Interior to 
        be distributed to tribes, tribal organizations (as defined 
        under section 4 of the Indian Self-Determination and Education 
        Assistance Act), or consortia of the above entities for the 
        coordination of assistance in the provision of early 
        intervention services by the States to infants and toddlers 
        with disabilities and their families on reservations served by 
        elementary and secondary schools for Indian children operated 
        or funded by the Department of the Interior. The amount of such 
        payment for any fiscal year shall be 1.25 percent of the 
        aggregate of the amount available to all States under this part 
        for such fiscal year.
          ``(2) Allocation.--For each fiscal year, the Secretary of the 
        Interior shall distribute the entire payment received under 
        paragraph (1) by providing to each tribe, tribal organization, 
        or consortium an amount based on the number of infants and 
        toddlers residing on the reservation, as determined annually, 
        divided by the total number 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 an annual 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 year following the year in which the report 
        is made. The Secretary of the Interior shall include a summary 
        of this information on an annual 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) 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 paragraph 
        (3) no State shall receive an amount under this section for any 
        fiscal year that is less than the greater of--
                  ``(A) one-half of one percent of the remaining amount 
                described in paragraph (1); 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 
                they 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.

``SEC. 644. AUTHORIZATION OF APPROPRIATIONS.

  ``For the purpose of carrying out this part, there are authorized to 
be appropriated $447,000,000 for fiscal year 2004 and such sums as may 
be necessary for each of the fiscal years 2005 through 2009.''.

  TITLE IV--NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH 
                              DISABILITIES

SEC. 401. NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH 
                    DISABILITIES.

  Part D of the Individuals with Disabilities Education Act (20 U.S.C. 
1451 et seq.) is amended to read as follows:

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

``SEC. 651. FINDINGS.

  ``The 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 standards and clear 
                achievement goals for children, 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, as described in 
                section 602(31), and coordinate State and local 
                education, social, health, mental health, and other 
                services, to address 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 in order to serve effectively children 
        with disabilities, fill leadership positions in administrative 
        and direct-service capacities, provide teacher training, and 
        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 
        research on special education and related services, and to 
        address the full range of issues facing children with 
        disabilities, parents of children with disabilities, school 
        personnel, and others.
          ``(10) 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.
          ``(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) creating and preserving constructive 
                relationships between parents of children with 
                disabilities and schools by facilitating open 
                communication between such parents and schools, 
                encouraging dispute resolution at the earliest point in 
                time possible, and discouraging the escalation of an 
                adversarial process between such parents and schools;
                  ``(B) ensuring the involvement of such parents in 
                planning and decision-making 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 602(31);
                  ``(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 those 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 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 Professional Development Grants

``SEC. 652. PURPOSE.

  ``The purpose of this subpart is to assist State educational agencies 
in reforming and improving their systems for professional development 
in early intervention, educational, and related and transition services 
in order to improve results for children with disabilities.

``SEC. 653. ELIGIBILITY AND COLLABORATIVE PROCESS.

  ``(a) Eligible Applicants.--A State educational agency may apply for 
a grant under this subpart for a period of not less than 1 year and not 
more than 5 years.
  ``(b) Partners.--
          ``(1) Required partners.--In order to be considered for a 
        grant under this subpart, a State educational agency shall 
        enter into a partnership agreement with local educational 
        agencies, at least one institution of higher education in the 
        State, and other State agencies involved in, or concerned with, 
        the education of children with disabilities.
          ``(2) Optional partners.--In addition, a State educational 
        agency may enter into a partnership agreement with any of the 
        following:
                  ``(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) Organizations representing individuals with 
                disabilities and their parents, such as parent training 
                and information centers.
                  ``(F) Community-based and other nonprofit 
                organizations involved in the education and employment 
                of individuals with disabilities.
                  ``(G) The lead State agency for part C.
                  ``(H) General and special education teachers, related 
                services personnel, and early intervention personnel.
                  ``(I) The State advisory panel established under part 
                C.
                  ``(J) The State interagency coordinating council 
                established under part C.
                  ``(K) Institutions of higher education within the 
                State.
                  ``(L) Individuals knowledgeable about vocational 
                education.
                  ``(M) The State agency for higher education.
                  ``(N) The State vocational rehabilitation agency.
                  ``(O) Public agencies with jurisdiction in the areas 
                of health, mental health, social services, and juvenile 
                justice.
                  ``(P) Other providers of professional development 
                that work with students with disabilities.
                  ``(Q) Other individuals.

``SEC. 654. 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 
        addresses the State and local needs for the professional 
        development of administrators, principals, teachers, related 
        services personnel, and individuals who provide direct 
        supplementary aids and services to children with disabilities, 
        and that--
                  ``(A) is integrated, to the maximum extent possible, 
                with State plans under the Elementary and Secondary 
                Education Act of 1965, the Rehabilitation Act of 1973, 
                and the Higher Education Act of 1965, as appropriate; 
                and
                  ``(B) is designed to enable the State to meet the 
                requirements of section 612(a)(15) of this Act.
  ``(b) Elements of State Plan.--Each State 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, including part B funds 
        retained for use at the State level under sections 611(e) and 
        619(d), and other Federal funds will be used to support 
        activities conducted under this subpart;
          ``(3) describe the strategies the State will use to implement 
        the plan to improve results for children with disabilities, 
        including--
                  ``(A) how the State will align its professional 
                development plan with the plans submitted by the State 
                under sections 1111 and 2112 of the Elementary and 
                Secondary Education Act of 1965;
                  ``(B) how the State will provide technical assistance 
                to local educational agencies and schools to improve 
                the quality of professional development available to 
                meet the needs of personnel that serve children with 
                disabilities; and
                  ``(C) 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 
                achievement goals and indicators in section 612(a)(16);
          ``(4) describe, as appropriate, how the strategies described 
        in paragraph (3) will be coordinated with public and private 
        sector resources; and
          ``(5) include an assurance that the State will use funds 
        received under this subpart to carry out each of the activities 
        specified in the plan.
  ``(c) 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.
  ``(d) Peer Review.--
          ``(1) In general.--The Secretary shall evaluate applications 
        under this subpart using a panel of experts who are qualified 
        by virtue of their training, expertise, or experience.
          ``(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.
  ``(e) Reporting Procedures.--Each State educational agency that 
receives a grant under this subpart shall submit annual performance 
reports to the Secretary. The reports shall--
          ``(1) describe the progress of the State in implementing its 
        plan;
          ``(2) analyze the effectiveness of the State's activities 
        under this subpart and of the State's strategies for meeting 
        its goals under section 612(a)(16); and
          ``(3) identify any changes in such strategies needed to 
        improve its performance.

``SEC. 655. USE OF FUNDS.

  ``(a) In General.--
          ``(1) Activities.--A State educational agency that receives a 
        grant under this subpart shall use the grant funds, subject to 
        subsection (b), for the following:
                  ``(A) Professional development.--
                          ``(i) Carrying out programs that support the 
                        professional development of early intervention 
                        personnel, related services personnel, and both 
                        special education and regular education 
                        teachers of children with disabilities, such as 
                        programs that--
                                  ``(I) provide teacher mentoring, team 
                                teaching, reduced class schedules, and 
                                intensive professional development;
                                  ``(II) use standards or assessments 
                                for guiding beginning teachers that are 
                                consistent with challenging State 
                                student academic achievement standards 
                                and with the definition of professional 
                                development in section 9101 of the 
                                Elementary and Secondary Education Act 
                                of 1965;
                                  ``(III) promote collaborative and 
                                consultive models of providing special 
                                education ad related services; and
                                  ``(IV) increase understanding as to 
                                the most appropriate placements and 
                                services for all students to reduce 
                                significant racial and ethnic 
                                disproportionality in eligibility, 
                                placement, and disciplinary actions.
                          ``(ii) Encouraging and supporting the 
                        training of special education and regular 
                        education teachers and administrators to 
                        effectively integrate technology 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.
                          ``(iii) Providing professional development 
                        activities that improve the knowledge of 
                        special education and regular education 
                        teachers concerning--
                                  ``(I) the academic and developmental 
                                needs of students with disabilities; 
                                and
                                  ``(II) effective instructional 
                                strategies, methods, and skills, use of 
                                challenging State academic content 
                                standards and student academic 
                                achievement standards, and use of State 
                                assessments, to improve teaching 
                                practices and student academic 
                                achievement.
                          ``(iv) Providing professional development 
                        activities that--
                                  ``(I) improve the knowledge of 
                                special education and regular education 
                                teachers and principals and, in 
                                appropriate cases, related services 
                                personnel and paraprofessionals, 
                                concerning effective instructional 
                                practices;
                                  ``(II) provide training in how to 
                                teach and address the needs of students 
                                with different learning styles;
                                  ``(III) involve collaborative groups 
                                of teachers and administrators;
                                  ``(IV) provide training in methods 
                                of--
                                          ``(aa) positive behavior 
                                        interventions and supports to 
                                        improve student behavior in the 
                                        classroom;
                                          ``(bb) scientifically based 
                                        reading instruction, including 
                                        early literacy instruction; and
                                          ``(cc) early and appropriate 
                                        interventions to identify and 
                                        help students with 
                                        disabilities;
                                  ``(V) provide training to enable 
                                special education and regular education 
                                teachers, related services personnel, 
                                and principals to involve parents in 
                                their child's education, especially 
                                parents of low-income and limited 
                                English proficient children with 
                                disabilities; or
                                  ``(VI) train administrators and other 
                                relevant school personnel in conducting 
                                facilitated individualized education 
                                program meetings.
                          ``(v) Developing and implementing initiatives 
                        to promote retention of highly qualified 
                        special education teachers, including programs 
                        that provide--
                                  ``(I) teacher mentoring from 
                                exemplary special education teachers, 
                                principals, or superintendents;
                                  ``(II) induction and support for 
                                special education teachers during their 
                                first 3 years of employment as 
                                teachers; or
                                  ``(III) incentives, including 
                                financial incentives, to retain special 
                                education teachers who have a record of 
                                success in helping students with 
                                disabilities improve their academic 
                                achievement.
                          ``(vi) Carrying out programs and activities 
                        that are designed to improve the quality of the 
                        teacher force that serves children with 
                        disabilities, such as--
                                  ``(I) innovative professional 
                                development programs (which may be 
                                provided through partnerships including 
                                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, are consistent 
                                with the requirements of section 9101 
                                of the Elementary and Secondary 
                                Education Act of 1965, and are 
                                coordinated with activities carried out 
                                under this part; and
                                  ``(II) 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.
                  ``(B) State activities.--
                          ``(i) Reforming special education and regular 
                        education teacher certification (including 
                        recertification) or licensing requirements to 
                        ensure that--
                                  ``(I) special education and regular 
                                education teachers have the training 
                                and information necessary, including an 
                                understanding of the latest 
                                scientifically valid education research 
                                and its applicability, to address the 
                                wide variety of needs of children with 
                                disabilities across disability 
                                categories;
                                  ``(II) special education and regular 
                                education teachers have the necessary 
                                subject matter knowledge and teaching 
                                skills in the academic subjects that 
                                the teachers teach;
                                  ``(III) special education and regular 
                                education teacher certification 
                                (including recertification) or 
                                licensing requirements are aligned with 
                                challenging State academic content 
                                standards; and
                                  ``(IV) special education and regular 
                                education teachers have the subject 
                                matter knowledge and teaching skills, 
                                including technology literacy, 
                                necessary to help students meet 
                                challenging State student academic 
                                achievement standards.
                          ``(ii) Carrying out programs that establish, 
                        expand, or improve alternative routes for State 
                        certification of special education teachers for 
                        individuals who demonstrate the potential to 
                        become highly effective special education 
                        teachers, such as individuals with a 
                        baccalaureate or master's degree (including 
                        mid-career professionals from other 
                        occupations), paraprofessionals, former 
                        military personnel, and recent college or 
                        university graduates with records of academic 
                        distinction.
                          ``(iii) Carrying out 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.
                          ``(iv) Developing and implementing mechanisms 
                        to assist local educational agencies and 
                        schools in effectively recruiting and retaining 
                        highly qualified special education teachers.
                          ``(v) 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.
                          ``(vi) Developing and implementing mechanisms 
                        to assist schools in effectively recruiting and 
                        retaining highly qualified special education 
                        teachers.
                          ``(vii) 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 clause or 
                        developed using funds provided under this 
                        subpart may lead to the weakening of any State 
                        teaching certification or licensing 
                        requirement.
                          ``(viii) 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.
                          ``(ix) Developing, or assisting local 
                        educational agencies in developing, merit-based 
                        performance systems, and strategies that 
                        provide differential and bonus pay for special 
                        education teachers.
                          ``(x) Supporting activities that ensure that 
                        teachers are able to use challenging State 
                        academic content standards and student academic 
                        achievement standards, and State assessments, 
                        to improve instructional practices and improve 
                        the academic achievement of children with 
                        disabilities.
                          ``(xi) 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.
          ``(2) Contracts and subgrants.--Each such State educational 
        agency--
                  ``(A) shall, consistent with its partnership 
                agreement under section 654(b)(1), 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 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 shall use--
          ``(1) not less than 90 percent of the funds it receives under 
        the grant for any fiscal year for activities under subsection 
        (a)(1)(A); and
          ``(2) not more than 10 percent of the funds it receives under 
        the grant for any fiscal year for activities under subsection 
        (a)(1)(B).
  ``(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. 656. 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) 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, including--
                  ``(A) the alignment of proposed activities with 
                paragraphs (14) and (15) of section 612(a);
                  ``(B) the alignment of proposed activities with the 
                plans submitted under sections 1111 and 2112 of the 
                Elementary and Secondary Education Act of 1965; and
                  ``(C) the use, as appropriate, of scientifically 
                based research.

``SEC. 657. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this subpart 
$44,000,000 for fiscal year 2004 and such sums as may be necessary for 
each of the fiscal years 2005 through 2009.

``Subpart 2--Scientifically Based Research; Technical Assistance; Model 
  Demonstration Projects; Dissemination of Information; and Personnel 
                          Preparation Programs

``SEC. 661. PURPOSE.

  ``The purpose of this subpart is to provide Federal funding for 
scientifically based research, technical assistance, model 
demonstration projects, information dissemination, and personnel 
preparation programs to improve early intervention, educational, and 
transitional results for children with disabilities.

``SEC. 662. ADMINISTRATIVE PROVISIONS.

  ``(a) Comprehensive Plan.--
          ``(1) In general.--The Secretary shall develop and implement 
        a comprehensive plan for activities carried out under this 
        subpart (other than section 663) 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 under subpart 1.
          ``(2) Public comment.--The Secretary shall provide a public 
        comment period of at least 30 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 to carry out 
        activities that benefit, directly or indirectly, children with 
        disabilities of all ages.
          ``(4) Reports to congress.--The Secretary shall annually 
        report to the Congress on the Secretary's activities under this 
        subsection, including an initial report not later than the date 
        that is 12 months after the date of the enactment of Improving 
        Education Results for Children With Disabilities 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 (25 U.S.C. 
                450b)).
                  ``(I) A for-profit organization if the Secretary 
                finds it appropriate given the specific purpose of the 
                competition.
          ``(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) 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) Required outreach and technical assistance.--
        Notwithstanding any other provision of this Act, the Secretary 
        shall reserve at least two percent of the total amount of funds 
        appropriated to carry out this subpart for either or both of 
        the following activities:
                  ``(A) Providing 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) Enabling 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, if such grant applicants meet the 
                criteria established by the Secretary under this 
                subpart.
  ``(d) Priorities.--The Secretary, in making an award of a grant, 
contract, or cooperative agreement under this subpart, may, without 
regard to the rulemaking procedures under section 553 of title 5, 
United States Code, limit competitions to, or otherwise give priority 
to--
          ``(1) projects that address one 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) children with limited English proficiency;
                  ``(E) unserved and underserved areas;
                  ``(F) rural or urban areas;
                  ``(G) children whose behavior interferes with their 
                learning and socialization;
                  ``(H) children with intractable reading difficulties; 
                and
                  ``(I) children in public charter schools;
          ``(4) projects to reduce inappropriate identification of 
        children as children with disabilities, particularly among 
        minority children; and
          ``(5) any activity that is expressly 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--
                  ``(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 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).
  ``(f) Application Management.--
          ``(1) Standing panel.--
                  ``(A) In general.--The Secretary shall establish and 
                use a standing panel of experts who are qualified, by 
                virtue of their training, expertise, or experience, to 
                evaluate applications under this subpart (other than 
                section 663) 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) individuals who are 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.--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 subpanel selected from the standing panel that 
                reviews applications under this subpart (other than 
                section 663) 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 ages birth through 
                        26, individuals with disabilities, and persons 
                        from diverse backgrounds.
                  ``(B) Federal employment limitation.--A majority of 
                the individuals on each subpanel that reviews an 
                application under this subpart (other than section 663) 
                shall be individuals who are not employees of the 
                Federal Government.
          ``(3) Use of discretionary funds for administrative 
        purposes.--
                  ``(A) Expenses and fees of non-federal panel 
                members.--The Secretary may use funds available under 
                this subpart to pay the expenses and fees of the panel 
                members who are not officers or employees of the 
                Federal Government.
                  ``(B) Administrative support.--The Secretary may use 
                not more than 1 percent of the funds appropriated to 
                carry out this subpart to pay non-Federal entities for 
                administrative support related to management of 
                applications submitted under this subpart.
  ``(g) Program Evaluation.--The Secretary may use funds appropriated 
to carry out this subpart to evaluate activities carried out under the 
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 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 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.--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).

``SEC. 663. RESEARCH TO IMPROVE RESULTS FOR CHILDREN WITH DISABILITIES.

  ``(a) National Center for Special Education Research.--
          ``(1) Establishment.--
                  ``(A) In general.--There is established, in the 
                Institute of Education Sciences established under 
                section 111 of the Education Sciences Reform Act of 
                2002 (Public Law 107-279; 116 Stat. 1944) (hereinafter 
                in this section referred to as `the Institute'), the 
                National Center for Special Education Research.
                  ``(B) Commissioner.--The National Center for Special 
                Education Research shall be headed by a Commissioner 
                for Special Education Research (hereinafter in this 
                section referred to as `the Commissioner'). The 
                Commissioner shall be appointed by the Director of the 
                Institute (hereinafter in this section referred to as 
                `the Director') in accordance with section 117 of the 
                Education Sciences Reform Act of 2002. The Commissioner 
                shall have substantial knowledge of the Center's 
                activities, including a high level of expertise in the 
                fields of research and research management.
          ``(2) Applicability of education science reform act of 
        2002.--Parts A and E of the Education Sciences Reform Act of 
        2002, as well as the standards for peer review of applications 
        and for the conduct and evaluation of research under sections 
        133(a) and 134 of such Act, shall apply to the Secretary, the 
        Director, and the Commissioner in carrying out this section.
  ``(b) Competitive Grants.--The Director shall make competitive grants 
to, or enter into contracts or cooperative agreements with, eligible 
entities to expand the fundamental knowledge and understanding of the 
education of infants, toddlers, and children with disabilities in order 
to improve educational results for such individuals, in accordance with 
the priorities determined under this section.
  ``(c) Authorized Activities.--Activities that may be carried out 
under this section include research activities--
          ``(1) to improve services provided under this Act in order to 
        improve academic achievement for children with disabilities;
          ``(2) to investigate scientifically based educational 
        practices that support learning and improve academic 
        achievement and progress for all students with disabilities;
          ``(3) to examine the special needs of preschool-aged children 
        and infants and toddlers with disabilities, including factors 
        that may result in developmental delays;
          ``(4) to investigate scientifically based related services 
        and interventions that promote participation and progress in 
        the general education curriculum;
          ``(5) to improve the alignment, compatibility, and 
        development of valid and reliable assessment methods for 
        assessing adequate yearly progress, as described under section 
        1111(b)(2)(B) of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 6311(b)(2)(B));
          ``(6) to improve the alignment, compatibility, and 
        development of valid and reliable alternate assessment methods 
        for assessing adequate yearly progress, as described under such 
        section 1111(b)(2)(B);
          ``(7) to examine State content standards and alternate 
        assessments for students with a significant cognitive 
        impairment in terms of academic achievement, individualized 
        instructional need, appropriate educational settings, and 
        improved post-school results;
          ``(8) to examine the educational and developmental needs of 
        children with high-incidence and low-incidence disabilities;
          ``(9) to examine the extent to which overidentification and 
        underidentification of children with disabilities occurs, and 
        the causes thereof;
          ``(10) to improve reading and literacy skills for children 
        with disabilities;
          ``(11) to examine and improve secondary and postsecondary 
        education and transitional needs of children with disabilities;
          ``(12) to examine methods of early intervention for children 
        with disabilities who need significant levels of support;
          ``(13) to examine universal design concepts in the 
        development of assessments, curricula, and instructional 
        methods as a method to improve educational results for children 
        with disabilities;
          ``(14) to improve the professional preparation for personnel 
        who provide educational and related services to children with 
        disabilities, including children with low-incidence 
        disabilities, to increase academic achievement of children with 
        disabilities;
          ``(15) to examine the excess costs of educating a child with 
        a disability and expenses associated with high-cost special 
        education and related services; and
          ``(16) to examine the special needs of limited English 
        proficient children with disabilities.
  ``(d) Plan.--The National Center for Special Education Research shall 
propose to the Director a research plan, with the advice of the 
Assistant Secretary for Special Education and Rehabilitative Services, 
that--
          ``(1) is consistent with the priorities and mission of the 
        Institute of Educational Sciences and the mission of the 
        Special Education Research Center and includes the activities 
        described in paragraph (3);
          ``(2) shall be carried out pursuant to subsection (c) and, as 
        appropriate, be updated and modified; and
          ``(3) carries out specific, long-term research activities 
        that are consistent with the priorities and mission of the 
        Institute of Educational Sciences, and are approved by the 
        Director.
  ``(e) Implementation.--The National Center for Special Education 
Research shall implement the plan proposed under subsection (d) to 
carry out scientifically valid research that--
          ``(1) is consistent with the purposes of this Act;
          ``(2) reflects an appropriate balance across all age ranges 
        of children with disabilities;
          ``(3) provides for research that is objective and that uses 
        measurable indicators to assess its progress and results;
          ``(4) includes both basic research and applied research, 
        which shall include research conducted through field-initiated 
        studies and which may include ongoing research initiatives;
          ``(5) ensures that the research conducted under this section 
        is relevant to special education practice and policy;
          ``(6) synthesize and disseminate, through the National Center 
        for Education Evaluation and Regional Assistance as well as 
        activities authorized under this part, the findings and results 
        of education research conducted or supported by the National 
        Center for Special Education Research; and
          ``(7) assist the Director in the preparation of a biennial 
        report, as a described in section 119 of the Education Sciences 
        Reform Act of 2003.
  ``(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 Commissioner at such time, 
in such manner, and containing such information as the Commissioner may 
reasonably require.

``SEC. 664. TECHNICAL ASSISTANCE, DEMONSTRATION PROJECTS, DISSEMINATION 
                    OF INFORMATION, AND IMPLEMENTATION OF 
                    SCIENTIFICALLY BASED RESEARCH.

  ``(a) In General.--The Secretary shall make competitive grants to, or 
enter into contracts or cooperative agreements with, eligible entities 
including regional resource centers and clearinghouses to provide 
technical assistance, support model demonstration projects, disseminate 
useful information, and implement activities that are supported by 
scientifically based research.
  ``(b) Required Activities.--Funds received under this section shall 
be used to 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 improve results for children with disabilities 
through--
          ``(1) implementing 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;
          ``(2) improving the alignment, compatibility, and development 
        of valid and reliable assessments and alternate assessments for 
        assessing adequate yearly progress, as described under section 
        1111(b)(2)(B) of the Elementary and Secondary Education Act of 
        1965;
          ``(3) providing training for both regular education teachers 
        and special education teachers to address the needs of students 
        with different learning styles;
          ``(4) identifying innovative, effective, and efficient 
        curricula designs, instructional approaches, and strategies, 
        and identifying positive academic and social learning 
        opportunities, that--
                  ``(A) provide effective transitions between 
                educational settings or from school to post school 
                settings; and
                  ``(B) 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 systemic changes, related to the 
        provision of services to children with disabilities, in policy, 
        procedure, practice, and the training and use of personnel.
  ``(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 academic achievement and improve results for children with 
disabilities through--
          ``(1) applying and testing research findings in typical 
        service settings to determine the usefulness, effectiveness, 
        and general applicability of such research findings in such 
        areas as improving instructional methods, curricula, and tools, 
        such as textbooks and media;
          ``(2) supporting and promoting the coordination of early 
        intervention and educational services for children with 
        disabilities with services provided by health, rehabilitation, 
        and social service agencies;
          ``(3) promoting improved alignment and compatibility of 
        general and special education reforms concerned with curricular 
        and instructional reform, and evaluation of such reforms;
          ``(4) enabling professionals, parents of children with 
        disabilities, and other persons to learn about, and implement, 
        the findings of scientifically based research, and successful 
        practices developed in model demonstration projects, relating 
        to the provision of services to children with disabilities;
          ``(5) 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;
          ``(6) 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;
          ``(7) 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;
          ``(8) focusing on the 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--
                  ``(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) addressing 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;
          ``(9) demonstrating models of personnel preparation to ensure 
        appropriate placements and services for all students and reduce 
        disproportionality in eligibility, placement, and disciplinary 
        actions for minority and limited English proficient children; 
        and
          ``(10) disseminating information on how to reduce racial and 
        ethnic disproportionalities identified under section 618.
  ``(d) Balance Among Activities and Age Ranges.--In carrying out this 
section, the Secretary shall ensure that there is an appropriate 
balance across all age ranges of children with disabilities.
  ``(e) Linking States to Information Sources.--In carrying out this 
section, the Secretary shall support projects that link States to 
technical assistance resources, including special education and general 
education resources, and shall make research and related products 
available through libraries, electronic networks, parent training 
projects, and other information sources, including through the 
activities of the National Center for Evaluation and Regional 
Assistance established under the Education Sciences Reform Act.
  ``(f) Applications.--
          ``(1) In general.--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.
          ``(2) Standards.--To the maximum extent feasible, each 
        applicant shall demonstrate that the project described in its 
        application is supported by scientifically valid research that 
        has been carried out in accordance with the standards for the 
        conduct and evaluation of all relevant research and development 
        established by the National Center for Education Research.
          ``(3) Priority.--As appropriate, the Secretary shall give 
        priority to applications that propose to serve teachers and 
        school personnel directly in the school environment.

``SEC. 665. PERSONNEL PREPARATION PROGRAMS 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;
          ``(2) to ensure that those personnel have the necessary 
        skills and knowledge, derived from practices that have been 
        determined, through scientifically valid 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 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; 
                and
          ``(6) to ensure that all special education teachers teaching 
        in core academic subjects are highly qualified.
  ``(b) Personnel Preparation; Authorized Activities.--
          ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities, including activities for 
        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) Promoting activities undertaken by institutions 
                of higher education, local educational agencies, and 
                other local entities--
                          ``(i) to improve and reform their existing 
                        programs, and to support effective existing 
                        programs, to prepare teachers and related 
                        services personnel--
                                  ``(I) to meet the diverse needs of 
                                children with disabilities for early 
                                intervention, educational, and 
                                transitional services; and
                                  ``(II) to work collaboratively in 
                                regular classroom settings; and
                          ``(ii) to incorporate best practices and 
                        scientifically based research about preparing 
                        personnel--
                                  ``(I) so they will have the knowledge 
                                and skills to improve educational 
                                results for children with disabilities; 
                                and
                                  ``(II) so they can implement 
                                effective teaching strategies and 
                                interventions to ensure appropriate 
                                identification, and to prevent the 
                                misidentification or 
                                overidentification, 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 shortages in personnel.
                  ``(C) Developing and improving programs for 
                paraprofessionals to assist in the provision of special 
                education, related services, and early intervention 
                services, including interdisciplinary training to 
                enable them to improve early intervention, educational, 
                and transitional results for children with 
                disabilities.
                  ``(D) 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 to improve 
                results for children with disabilities, particularly 
                within the general education curriculum.
                  ``(E) Promoting the transferability, across State and 
                local jurisdictions, of licensure and certification of 
                teachers and administrators working with such children.
                  ``(F) 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.
                  ``(G) 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.
                  ``(H) 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.
                  ``(I) Developing and improving programs to train 
                special education teachers with 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 
                        them 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 to enhance learning by 
                children with low-incidence 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 who provide services to 
                deaf and hard-of-hearing children by providing direct 
                language and communication access to the general 
                education curriculum through spoken or signed 
                languages, or other modes of communication.
                  ``(F) 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.
          ``(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.
  ``(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, related services faculty, 
                administrators, researchers, supervisors, principals, 
                and other persons whose work affects early 
                intervention, educational, and transitional services 
                for children with disabilities.
  ``(e) 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 (d) 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 or local educational agencies will cooperate 
                in carrying out and monitoring the project.
          ``(3) Acceptance by states of personnel preparation 
        requirements.--The Secretary may require applicants to provide 
        assurances from one or more States that such States--
                  ``(A) intend to accept successful completion of the 
                proposed personnel preparation program as meeting State 
                personnel standards or other requirements in State law 
                or regulation 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.
  ``(f) Selection of Recipients.--
          ``(1) Impact of project.--In selecting recipients under this 
        section, the Secretary shall consider the impact of the project 
        proposed in the application in meeting the need for personnel 
        identified by the States.
          ``(2) Requirement on applicants to meet state and 
        professional standards.--The Secretary shall make grants under 
        this section only to eligible applicants that meet State and 
        professionally recognized standards for the preparation of 
        special education and related services personnel, if the 
        purpose of the project is to assist personnel in obtaining 
        degrees.
          ``(3) Preferences.--In selecting recipients under this 
        section, the Secretary may--
                  ``(A) give preference to institutions of higher 
                education that are educating regular education 
                personnel to meet the needs of children with 
                disabilities in integrated settings and educating 
                special education personnel to work in collaboration 
                with regular educators in integrated settings; and
                  ``(B) give preference to institutions of higher 
                education that are successfully recruiting and 
                preparing individuals with disabilities and individuals 
                from groups that are underrepresented in the profession 
                for which they are preparing individuals.
  ``(g) Service Obligation.--
          ``(1) In general.--Each application for funds under 
        subsections (b) and (c) shall include an assurance that the 
        applicant will ensure that individuals who receive a 
        scholarship under the proposed project will subsequently 
        provide special education and related services to children with 
        disabilities for a period of 2 years for every year for which 
        assistance was received or repay all or part of the cost of 
        that assistance, in accordance with regulations issued by the 
        Secretary.
          ``(2) Leadership preparation.--Each application for funds 
        under subsection (d) 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.
  ``(h) Scholarships.--The Secretary may include funds for 
scholarships, with necessary stipends and allowances, in awards under 
subsections (b), (c), and (d).

``SEC. 666. STUDIES AND EVALUATIONS.

  ``(a) In General.--
          ``(1) Progress assessment.--The Secretary shall, in 
        accordance with the priorities determined under this section 
        and in section 663, directly or through competitive 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) Delegation.--Notwithstanding any other provision of 
        law, the Secretary shall designate the Director of the 
        Institute for Education Sciences to carry out this section.
          ``(3) Authorized activities.--In carrying out this 
        subsection, the Secretary may support objective studies, 
        evaluations, and assessments, including studies that--
                  ``(A) analyze issues identified in the research 
                agenda in section 663(d);
                  ``(B) meet the standards in section 663(c); and
                  ``(C) undertake one or more of the following:
                          ``(i) An analysis of the 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.
                          ``(ii) An analysis of 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.
                          ``(iii) An assessment of educational and 
                        transitional services and results for children 
                        with disabilities from minority backgrounds, 
                        including--
                                  ``(I) data on--
                                          ``(aa) the number of minority 
                                        children who are referred for 
                                        special education evaluation;
                                          ``(bb) the number of minority 
                                        children who are receiving 
                                        special education and related 
                                        services and their educational 
                                        or other service placement;
                                          ``(cc) the number of minority 
                                        children who graduated from 
                                        secondary programs with a 
                                        regular diploma in the standard 
                                        number of years; and
                                          ``(dd) the number of minority 
                                        children who drop out of the 
                                        educational system without a 
                                        regular diploma; and
                                  ``(II) the performance of children 
                                with disabilities from minority 
                                backgrounds on State assessments and 
                                other performance indicators 
                                established for all students.
                          ``(iv) A measurement of educational and 
                        transitional services and results of children 
                        with disabilities served 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, 
                                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.
                          ``(v) An identification 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 timely 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) Public comment.--
                  ``(A) Plan.--Not later than 12 months after the date 
                of enactment of the Improving Education Results for 
                Children With Disabilities Act of 2003, the Secretary 
                shall publish in the Federal Register for public 
                comment a comprehensive plan for developing and 
                conducting the national assessment.
                  ``(B) Comment period.--The Secretary shall provide a 
                public comment period of at least 30 days on such plan.
          ``(3) Scope of assessment.--The national assessment shall 
        assess the--
                  ``(A) implementation of programs assisted under this 
                Act and the impact of such programs on addressing the 
                developmental needs of, and improving the academic 
                achievement of, children with disabilities to enable 
                them to reach challenging developmental goals and 
                challenging State academic content standards based on 
                State academic 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 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, other recipients of assistance under 
                this Act, and the Secretary in achieving the purposes 
                of this Act by--
                          ``(i) improving the academic achievement of 
                        children with disabilities and their 
                        performance on regular statewide assessments as 
                        compared to nondisabled children, and the 
                        performance of children with disabilities on 
                        alternate assessments;
                          ``(ii) improving the participation 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) reducing the overidentification of 
                        children, especially minority and limited 
                        English proficient children, as having a 
                        disability;
                          ``(viii) improving the participation of 
                        parents of children with disabilities in the 
                        education of their children; and
                          ``(ix) resolving disagreements between 
                        education personnel and parents through 
                        alternate dispute resolution activities 
                        including mediation and voluntary binding 
                        arbitration.
          ``(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 
                30 months after the date of the enactment of the 
                Improving Education Results for Children With 
                Disabilities Act of 2003; and
                  ``(B) a final report of the findings of the 
                assessment not later than 5 years after the date of the 
                enactment of such Act.
  ``(c) Annual Report.--The Secretary shall provide an annual report to 
the Congress that--
          ``(1) summarizes the research conducted under section 663;
          ``(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.

``SEC. 667. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out sections 663, 
664, and 666 $171,861,000 for fiscal year 2004 and such sums as may be 
necessary for each of the fiscal years 2005 through 2009. There are 
authorized to be appropriated to carry out section 665 $90,000,000 for 
fiscal year 2004 and such sums as may be necessary for each of the 
fiscal years 2005 through 2009.

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

``SEC. 671. 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 decisionmaking 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. 672. 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 and community 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, including underserved parents and parents 
        of children who may be inappropriately identified, to enable 
        children with disabilities--
                  ``(A) to meet developmental and challenging academic 
                achievement goals that have been established for all 
                children; and
                  ``(B) to be prepared to lead productive independent 
                adult lives to the maximum extent possible;
          ``(2) ensure that the training and information provided meets 
        the needs of low-income parents and parents of children with 
        limited English proficiency;
          ``(3) serve the parents of infants, toddlers, and children 
        with the full range of disabilities;
          ``(4) assist parents--
                  ``(A) to better understand the nature of their 
                children's disabilities and their educational, 
                developmental, and transitional needs;
                  ``(B) to communicate effectively and work 
                collaboratively with personnel responsible for 
                providing special education, early intervention, 
                transition services, and related services;
                  ``(C) to participate in decisionmaking processes and 
                the development of individualized education programs 
                under part B and individualized family service plans 
                under part C;
                  ``(D) to obtain appropriate information about the 
                range, type and quality of options, programs, services, 
                and resources available to assist children with 
                disabilities and their families in school and at home;
                  ``(E) to understand the provisions of this Act for 
                the education of, and the provision of early 
                intervention services to, children with disabilities; 
                and
                  ``(F) to participate in activities at the school 
                level which benefit their children;
          ``(5) assist parents in resolving disputes in the most 
        expeditious way possible, including encouraging the use, and 
        explaining the benefits, of alternative methods of dispute 
        resolution, such as the use of individualized education program 
        facilitators and mediation and voluntary binding arbitration 
        processes described in section 615(e);
          ``(6) assist parents to understand the availability of, and 
        how to effectively use, procedural safeguards under this Act;
          ``(7) network with appropriate clearinghouses, including 
        organizations conducting national dissemination activities 
        under subpart 2 and the Institute of Educational Sciences, 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
          ``(8) annually report to the Secretary on--
                  ``(A) the number and demographics 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 community and 
information center that receives assistance under this section may--
          ``(1) provide information to teachers and other professionals 
        to assist them in improving results for children with 
        disabilities; and
          ``(2) assist students with disabilities to understand their 
        rights and responsibilities under section 615(l) on reaching 
        the age of majority.
  ``(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, including 
        those that work with low-income parents and parents of children 
        with limited English proficiency.
  ``(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 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; and
                  ``(C) the parent and professional members of which 
                are broadly representative of the population to be 
                served, including low-income and limited English 
                proficient parents of children with disabilities; 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. 673. 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 672(b);
          ``(3) establish cooperative partnerships with the parent 
        training and information centers funded under section 672; and
          ``(4) be designed to meet the specific needs of families who 
        experience significant isolation from available sources of 
        information and support.
  ``(c) Definition.--As used is this section, the term `local parent 
organization' means a parent organization, as defined in section 
672(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. 674. TECHNICAL ASSISTANCE FOR PARENT TRAINING AND INFORMATION 
                    CENTERS.

  ``(a) In General.--The Secretary may, directly or through awards to 
eligible entities (as defined in section 662(b)), 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 672 and 673.
  ``(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 scientifically based research and 
        information;
          ``(3) promotion of the use of technology, including assistive 
        technology devices and assistive technology services;
          ``(4) reaching underserved populations, including parents of 
        low-income and limited English proficient children with 
        disabilities;
          ``(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 and voluntary binding arbitration.

``SEC. 675. 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 (as defined in section 662(b)) to support activities described 
in subsections (b) and (c).
  ``(b) Technology Development, Demonstration, and Utilization.--
          ``(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.--The following activities may be 
        carried out under this subsection:
                  ``(A) Conducting research on, and promoting the 
                demonstration and use of--
                          ``(i) innovative and emerging technologies 
                        for children with disabilities; and
                          ``(ii) improved 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 
                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 implementation of research 
                programs.
                  ``(E) Communicating information on available 
                technology and the uses of such technology to assist 
                children with disabilities.
  ``(c) Educational Media Services; Optional Activities.--In carrying 
out this section, the Secretary may support--
          ``(1) educational media activities that are designed to be of 
        educational value in the classroom setting to children with 
        disabilities;
          ``(2) providing video description, open captioning, or closed 
        captioning of television programs, videos, or other materials 
        with an education-based content for use in the classroom 
        setting when such services are not provided by the producer or 
        distributor of such information, including programs and 
        materials associated with new and emerging technologies such as 
        CDs, DVDs, video streaming, and other forms of multimedia;
          ``(3) distributing materials described in paragraphs (1) and 
        (2) through such mechanisms as a loan service; and
          ``(4) providing free educational materials, including 
        textbooks, in accessible media for visually impaired and print-
        disabled students in elementary, secondary, postsecondary, and 
        graduate schools.
  ``(d) Applications.--Any eligible entity (as defined in section 
662(b)) 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. For purposes of subsection 
(c)(4), such entity shall--
          ``(1) be a national, nonprofit entity with a track record of 
        meeting the needs of students with print disabilities through 
        services described in paragraph (4);
          ``(2) have the capacity to produce, maintain, and distribute 
        in a timely fashion, up-to-date textbooks in digital audio 
        formats to qualified students; and
          ``(3) have a demonstrated ability to significantly leverage 
        Federal funds through other public and private contributions, 
        as well as through the expansive use of volunteers.
  ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out section 674 $32,710,000 for fiscal year 2004 
and such sums as may be necessary for each of the fiscal years 2005 
through 2009. There are authorized to be appropriated to carry out 
sections 672 and 673 $26,000,000 for fiscal year 2004 and such sums as 
may be necessary for each of the fiscal years 2005 through 2009.''.

SEC. 402. CONTINUATION OF FUNDING FOR COMMUNITY PARENT AND RESOURCE 
                    CENTERS.

  Notwithstanding any other provision of law, the Secretary of 
Education is authorized to use amounts made available for a fiscal year 
to carry out subpart 3 of part D of the Individuals with Disabilities 
Education Act (as added by section 401) to continue to provide funding 
under grants made to, or contracts or cooperative agreements entered 
into with, local parent organizations under section 683 of such Act (as 
such section was in effect on October 1, 2002).

                                Purpose

    H.R. 1350, the ``Improving Education Results for Children 
with Disabilities Act of 2003,'' enhances the Individuals with 
Disabilities Education Act by improving education results for 
children with disabilities, reducing paperwork to allow 
teachers to focus on spending more time with their students, 
reducing unnecessary litigation by improving communication 
between parents and schools, improving early intervention 
strategies, reducing overidentification/misidentification of 
nondisabled children (particularly minority youth), encouraging 
innovative approaches to parental involvement and parental 
choice, supporting general education and special education 
teachers, and ensuring school safety. The bill also 
restructures the national activities and discretionary programs 
under the Act on research, professional development, personnel 
preparation, technical assistance, dissemination of 
information, parent training and information centers, and 
community parent resource centers to improve services under the 
Act.

                            Committee Action


                             107TH CONGRESS

Subcommittee hearings

    On Thursday, April 18, 2002, the Committee on Education and 
the Workforce, Subcommittee on Education Reform, held a hearing 
in Washington, D.C. on ``Special Education Finance at the 
Federal, State and Local Levels.'' The purpose of this hearing 
was to gather information about how Federal special education 
dollars flow to the States and local districts, and what 
changes should be made in the area of special education finance 
during the reauthorization of the Individuals with Disabilities 
Education Act (IDEA). Testifying before the Subcommittee were 
Mr. Jay G. Chambers, Senior Research Fellow at the American 
Institute of Research in Palo Alto, California; Dr. John R. 
Lawrence, President-elect of the American Association of School 
Administrators and Superintendent of the Troy R-III School 
District in Troy, Missouri; and Mr. Paul M. Goldfinger, Vice 
President of School Services of California, Inc., in 
Sacramento, California.
    On Thursday, May 2, 2002, the Committee on Education and 
the Workforce, Subcommittee on Education Reform, held a hearing 
in Washington, D.C. on ``Rethinking Special Education: How to 
Reform the Individuals with Disabilities Education Act.'' The 
purpose of this hearing was to learn about several special 
education-related issues, including (1) how to transform the 
IDEA from a statute focused primarily on procedural compliance 
to one emphasizing effectiveness and accountability; (2) how 
IDEA could be reformed to ensure that special education in this 
country is better targeted, more cost-efficient, and more 
effective in improving educational outcomes for students with 
disabilities; and (3) how to reduce the paperwork burden 
experienced by teachers and administrators attempting to 
implement the Federal law and regulations and the State and 
local requirements based on them. Testifying before the 
Subcommittee were Dr. Douglas Tyman, Director of the Disruptive 
Behavior Clinic at A.I. duPont Hospital for Children in 
Wilmington, Delaware; Dr. Gregory J. Lock, Principal at Oak 
View Elementary School in Fairfax, Virginia; Ms. Leslie 
Margolis, a parent in Baltimore, Maryland; Dr. Patrick J. Wolf, 
Assistant Professor of Public Policy at Georgetown University 
in Washington, D.C.; and Ms. Katherine Beh Neas, Co-chair of 
the CCD Education Task Force and Assistant Vice President for 
Government Relations for the Easter Seals in Washington, D.C.
    On Wednesday, May 8, 2002, the Committee on Education and 
the Workforce, Subcommittee on Education Reform, held a hearing 
in Washington, D.C. on ``State and Local Special Education 
Programs that Work and Federal Barriers to Innovation.'' The 
purpose of this hearing was to learn about several States and 
school districts that received attention for developing 
programs or implementing practices that improved the quality of 
education for students with disabilities. Mr. Lawrence C. 
Gloeckler, Deputy Commissioner of Vocational and Educational 
Services for Individuals with Disabilities at the New York 
State Education Department in Albany, New York; Dr. Richard 
Schoonover, Director of Student Services at Bellevue Public 
Schools in Bellevue, Nebraska; Dr. Russell Skiba, Associate 
Professor at Indiana University in Bloomington, Indiana; Ms. 
Diane McCain, Director of the Choice Office at the Florida 
Department of Education in Tallahassee, Florida; and Dr. Sally 
Arthur, Director of Educational Support Services at Humble 
Independent School District in Humble, Texas testified before 
the Subcommittee.
    On Thursday, June 6, 2002, the Committee on Education and 
the Workforce, Subcommittee on Education Reform, held a hearing 
in Washington, D.C. on ``Learning Disabilities and Early 
Intervention Strategies: How to Improve the Special Education 
Referral and Identification Process.'' The purpose of this 
hearing was to learn how to reform the way that students with 
various learning disabilities, especially those related to 
reading, are referred and identified for special education and 
related services under the IDEA. The Honorable William F. 
Goodling, educator and former Chairman of the House Committee 
on Education and the Workforce in Washington, D.C., as well as 
Dr. Robert Pasternack, Assistant Secretary for Special 
Education and Rehabilitative Services at the U.S. Department of 
Education in Washington, D.C. testified on the first panel 
regarding their recommendations on how to reform IDEA. 
Additionally, Dr. G. Reid Lyon, Psychologist and Chief of the 
Child Development and Behavior Research Branch for the National 
Institute of Child Health and Human Development in Rockville, 
Maryland; Dr. Joe Kovaleski, Director of Pupil Services at 
Cornwall-Lebanon School District in Lititz, Pennsylvania; and 
Mr. David Gordon, Superintendent of Elk Grove Unified School 
District in Elk Grove, California testified on the second 
panel.

Full committee hearings

    On Thursday, October 4, 2001, the Committee on Education 
and the Workforce, held a hearing in Washington, D.C. on 
``Overidentification Issues Within the Individuals with 
Disabilities Education Act and the Need for Reform.'' The 
purpose of this hearing was to learn about overidentification 
issues within IDEA. The Honorable Roderick Paige, Secretary of 
Education at the U.S. Department of Education testified on the 
first panel. The HonorableChakkah Fattah, Second Congressional 
District of Pennsylvania, U.S. House of Representatives, Washington, 
D.C. testified on the second panel. Additionally, two witnesses 
testified on the third panel, including Dr. Thomas Hehir, Lecturer on 
Education at the Graduate School of Education at Harvard University in 
Cambridge, Massachusetts and Dr. Matthew Ladner, Policy Director for 
Children First America in Smithville, Texas.
    On Wednesday, July 10, 2002, the Committee on Education and 
the Workforce, held a hearing in Washington, D.C. on 
``Reforming the Individuals with Disabilities Education Act: 
Recommendations from the President's Commission on Excellence 
in Special Education.'' The purpose of this hearing was to 
learn about the recommendations for reforming the nation's 
special education system that were included in the President's 
Commission on Excellence in Special Education. The Honorable 
Terry Branstad, Chairman of the President's Commission on 
Excellence in Special Education testified about the 
recommendations of the President's Commission.

                             108TH CONGRESS

Subcommittee hearing

    On Thursday, March 13, 2003, the Committee on Education and 
the Workforce, Subcommittee on Education Reform, held a hearing 
in Washington, D.C. on ``IDEA: Focusing on Improving Results 
for Children with Disabilities.'' The purpose of this hearing 
was to explore a variety of topics, but most importantly 
paperwork reduction, overidentification of minority children as 
having disabilities, reducing litigation, and improving the 
identification process of determining whether a child has a 
specific learning disability. Testifying before the 
Subcommittee were Ms. Dianne Talarico, Superintendent of the 
Canton City School District in Canton, Ohio; Dr. Harriet Brown, 
Director of Exceptional Special Education Policy and Procedures 
in Orlando, Florida; Dr. Douglass Carnine, Director and 
Professor at the National Center to Improve the Tools of 
Educators at the University of Oregon in Eugene, Oregon; and 
Dr. Larry Lorton, Superintendent of the Caroline County School 
District in Denton, Maryland.

Legislative action

    On March 19, 2003, Michael N. Castle (R-DE), Chairman of 
the Subcommittee on Education Reform, and Chairman John Boehner 
(R-OH) introduced H.R. 1350, the Improving Education Results 
for Children with Disabilities Act, a bill to amend and 
reauthorize the Individuals with Disabilities Education Act of 
1997. This legislation would improve special education programs 
in our nation's schools.
    On April 2, 2003, the Subcommittee on Education Reform 
considered H.R. 1350 in legislative session and reported it 
favorably, as amended, to the Committee on Education and the 
Workforce by voice vote. The Subcommittee accepted several 
amendments:
    
 The Subcommittee adopted, by voice vote, a 
substitute amendment offered by Mr. Castle (R-DE). The 
substitute restored benchmarks and short-term objectives for 
all children with disabilities until the 2005-2006 school year, 
which is when the report card requirements of No Child Left 
Behind must be implemented; restored current law formula 
calculations for the State-level activities, limiting the 
State-level funds to an amount based on the 1997 funding level, 
which averages between 8-11% for each State; requires States to 
use a portion of their funds for accountability grants to local 
educational agencies to provide services to districts 
identified as low performing under Title I of the Elementary 
and Secondary Education Act as a result of the disaggregated 
subgroup of students with disabilities; established indicators 
related to academic achievement, graduation, and dropout rates, 
and allows the Secretary to establish other indicators on which 
to judge the performance of States; and transferred the special 
education research functions to the Institute of Education 
Sciences.
    
 The Subcommittee adopted, by unanimous consent, a 
technical amendment offered by Mr. Osborne (R-NE).
    
 The Subcommittee adopted, by voice vote, an 
amendment offered by Mrs. Biggert (R-IL) regarding homeless 
children.
    
 The Subcommittee adopted, by voice vote, an 
amendment offered by Mrs. Musgrave (R-CO) that would prohibit 
Federal mandates, direction, or control of the curriculum of 
local educational agencies.
    
 The Subcommittee adopted, by voice vote, an 
amendment offered by Ms. Majette (D-GA) to collect information 
on disciplinary actions taken by local educational agencies.
    
 The Subcommittee adopted, by voice vote, an 
amendment offered by Mr. Kind (D-SC) regarding professional 
development.
    
 The Subcommittee adopted, by voice vote, an 
amendment offered by Mr. DeMint (R-SC) that allows States to 
expand Part C to continue to serve 3-5 year old children with 
disabilities at the option of the parents.
    On April 9 and 10, 2003, the Committee on Education and the 
Workforce considered H.R. 1350 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by a vote of 29-19. The Committee considered 29 
amendments and adopted the following 13 amendments:
    
 The Committee adopted, by voice vote, a substitute 
offered by Subcommittee Chairman Castle (R-DE). The substitute 
ensured that related services personnel are included in 
professional development activities to provide training for 
these individuals to ensure that their services are aligned 
with activities in the classroom; made several changes in Part 
D National Activities to ensure that the needs of minority 
students with disabilities are met; and improved upon the 
consultation between private schools and public schools for 
determining how to address the needs and coordinate services 
for children with disabilities placed in private schools by 
their parents.
    
 The Committee adopted, by voice vote, an amendment 
offered by Mr. Porter (R-NV) adjusting the authorization of 
appropriations to reflect the FY 2004 Budget Resolution 
Conference Report.
    
 The Committee adopted, by voice vote, a technical 
amendment offered by Mr. Osborne (R-NE).
    
 The Committee adopted, by voice vote, an amendment 
offered by Mr. Burns (R-GA) that would ensure that States have 
policies and procedures in effect to prohibit school personnel 
from requiring a student to obtain a prescription for a 
controlled substance in order to remain in the classroom.
    
 The Committee adopted, by voice vote, an en bloc 
amendment offered by Mr. Kind (D-WI) that would allow States to 
reserve funds to establish cost sharing programs for high cost 
special education and related services and require a GAO study 
on distance learning professional development opportunities for 
special education teachers.
    
 The Committee adopted, by voice vote, an en bloc 
amendment offered by Mr. Hinojosa (D-TX), pertaining to the 
transfer of records of migrant children and a GAO study on 
limited English proficient students with disabilities.
    
 The Committee adopted, by voice vote, an amendment 
offered by Mr. Owens (D-NY) to restore the community parent 
resource centers.
    
 The Committee adopted, by voice vote, an amendment 
by Mr. Andrews (D-NJ) to include speech therapy in prereferral 
services.
    
 The Committee adopted, by voice vote, an amendment 
by Mr. Andrews (D-NJ) to amend the limit on the percentage of 
students with disabilities for which a State may receive 
Federal funding.
    
 The Committee adopted, by voice vote, an amendment 
offered by Mr. Case (D-HI) to limit attorney's fees.
    
 The Committee adopted, by voice vote, an amendment 
offered by Ms. Majette (D-GA) to require GAO to conduct a study 
regarding certain State definitions and evaluations.
    
 The Committee adopted, by voice vote, an amendment 
offered by Mrs. Davis (D-CA) pertaining to exit evaluations.
    
 The Committee adopted, by unanimous consent, an 
amendment offered by Mrs. Davis (D-CA), which would prevent 
screenings by teachers from being considered as evaluations for 
special education eligibility.

                                Summary

    H.R. 1350, the Improving Education Results for Children 
with Disabilities Act of 2003, reauthorizes and amends the 
Individuals with Disabilities Education Act (IDEA), which 
provides support and protections for children with disabilities 
to ensure that they have access to a free appropriate public 
education in the least restrictive environment. The legislation 
amends Part B--Assistance for Education of All Children with 
Disabilities, which supports programs for children aged 3 
through 5 years old and children aged 6 through 21 years old. 
The Part B program is permanently authorized. The legislation 
amends and reauthorizes the Part C--Infants and Toddlers with 
Disabilities program that provides supports, services, and 
protections for children with disabilities aged birth through 
2, and also amends and reauthorizes the Part D--National 
Activities to Improve Education of Children with Disabilities 
programs.
    H.R. 1350 is centered around the following principles for 
reform:
    
 Increasing accountability and improving education 
results for students with disabilities. Currently, the Act 
places too much emphasis on compliance with complicated rules, 
and not enough emphasis on ensuring that academic results are 
being delivered for children with special needs. As a result of 
this misplaced emphasis, too many children in special education 
classes have been left behind academically. The No Child Left 
Behind Act (NCLB), signed into law by President Bush in January 
2002, calls for federally funded schools to be held accountable 
to parents for improving results for all students, including 
students with disabilities, for the first time ever. Aligning 
the IDEA's accountability system with NCLB is essential to 
ensuring that children with disabilities have the chance to 
learn and succeed academically. H.R. 1350 ensures that States 
align their accountability systems for students with 
disabilities to the NCLB accountability system and requires 
each child's Individualized Education Plan (IEP) to 
specifically address that child's academic achievement. The 
bill also improves the focus of Part C Infants and Toddlers 
program to include the acquisition of pre-literacy skills to 
improve the school readiness of these children with 
disabilities.
    H.R. 1350 makes significant changes to the U.S. Department 
of Education's (Department) activities on research of special 
education. The bill establishes a National Center for Special 
Education Research within the Institute of Education Sciences 
and authorizes the creation of a Commissioner for Special 
Education Research to oversee the Institute's research into 
special education and related services. The bill requires the 
Commissioner, with the advice of the Assistant Secretary for 
Special Education and Rehabilitative Services, to develop a 
research plan to support the activities of the Act and is 
designed to serve the long-term interests of the Act. The bill 
unifies all of the education research at the Department under 
one entity, the Institute for Education Sciences, that takes a 
broad view at the needs of education research, including 
special education research. This move will help ensure that the 
needs of children with disabilities are fully addressed not 
only within that arm of the Institute, but through all other 
research functions at the Institute. The Committee also intends 
this move to improve the overall quality and rigor of the 
special education research conducted by theDepartment, and to 
ensure that the needs of children with disabilities are included 
throughout other research programs conducted at the Institute.
    
 Reducing the paperwork burden. Special education 
teachers are leaving the profession out of frustration with the 
overwhelming and unnecessary paperwork burden, contributing to 
what is becoming a chronic shortage of quality teachers in 
special education. H.R. 1350 incorporates such changes as the 
multi-year IEP, the use of teleconferencing and video 
conferencing, and the development of model forms for the IEP 
and procedural safeguards notice. The bill also allows the 
Secretary to create a ten State pilot program that allows SEAs 
to reduce the IEP paperwork burden on teachers in order to 
increase instructional time and resources and improve results 
for students with disabilities. Recognizing that parents will 
receive report cards on their children under the No Child Left 
Behind Act, the duplicative use of benchmarks and short-term 
objectives is eliminated for most children with disabilities 
beginning in the 2005-2006 school year. However, these 
benchmarks or short-term objectives will be allowed to continue 
beyond that date for students taking alternate assessments 
aligned to alternate standards. Finally, the bill makes clear 
that nothing beyond what is clearly laid out in statute is 
required to be in an IEP.
    
 Improving early intervention strategies and 
reducing the overidentification or misidentification of 
nondisabled children, including minority youth. The 
overidentification of children as disabled and placing them in 
special education where they do not belong hinders the academic 
development of these students. Worse, the misidentification 
takes valuable resources away from students who truly are 
disabled. Experts agree that strengthening the quality of 
reading instruction programs across the nation will 
significantly strengthen special education and address this 
problem directly. This bill allows local educational agencies 
to use up to fifteen percent of their funds for prereferral 
services for students before they are identified as needing 
special education. States are also allowed to establish a 
definition for ``developmental delay'' for three to five year 
olds to simplify the provision of services and continue to 
assist these children to become ready to begin school.
    A disproportionate number of minority students are wrongly 
placed in special education rather than being provided positive 
behavioral interventions and supports and intensive educational 
interventions. As Education Secretary Rod Paige has noted, 
studies show the proportion of minority students identified in 
some disability categories is dramatically greater than their 
share of the overall population. More specifically, African-
American students are labeled as mentally retarded and 
emotionally disturbed far out of proportion to their share of 
the student population. For minority students, 
misclassification or inappropriate placement in special 
education programs can have significant adverse consequences, 
particularly when these students are being removed from regular 
education settings and denied access to the core curriculum. 
This bill requires local educational agencies with significant 
overidentification of minority students to operate pre-referral 
programs that work to reduce overidentification. It also 
eliminates the sole reliance on a ``wait to fail'' approach for 
identification of ``specific learning disabilities'' by 
allowing the use of other methods besides the outdated IQ-
achievement discrepancy model. The bill encourages the greater 
use of programs that rely on positive behavioral interventions 
and supports.
    
 Encouraging innovative approaches to parental 
involvement and parental choice. Parents should be active 
participants in their child's education experience. However, 
often under the current Act, parents of students with 
disabilities are not fully informed or are often given limited 
options of where or how their child can be educated. H.R. 1350 
enables parents and local educational agencies to work together 
to make the IEP process work better to serve its intent--
improving the education of the child with a disability. 
Specifically, this bill allows parents and the local 
educational agency to mutually agree to change the IEP without 
holding an IEP meeting and excuse the attendance of any IEP 
team member not needed at a specific meeting.
    The bill continues to encourage parents to make the best 
educational choice for their child by requiring local 
educational agencies to support their charter schools by 
providing services on site and distributing funds to charter 
schools in an equitable manner. H.R. 1350 also allows school 
districts to use Part B funds to support supplemental 
educational services for students with disabilities in schools 
identified in need of improvement under NCLB. Finally, the bill 
reforms the parent training centers to focus on all children 
with disabilities and serve all parents of children with 
disabilities, especially low-income, minority, and limited 
English proficient parents.
    
 Supporting general education and special education 
teachers. A continuing shortage of special education teachers, 
coupled with a shortage of regular education teachers who are 
adequately trained to work with students with disabilities, 
hinders the educational achievement of students with 
disabilities under current law. Both current and prospective 
special education and general education teachers should have 
professional development to address the educational needs of 
students with disabilities. H.R. 1350 aligns the Act with 
requirements of NCLB for ``highly qualified'' teachers so that 
all students with disabilities are taught by a highly qualified 
teacher in core content areas.
    The bill refocuses various areas of Part D to support 
general education and special education teachers, principals, 
and related services providers to better serve children with 
disabilities. First, the State Professional Development Grants 
(formerly State Improvement Grants) are concentrated on 
professional development for school personnel working with 
students with disabilities. Second the Personnel Preparation 
programs are streamlined and enhanced to encourage training of 
general education and education teachers, principals, and 
related services providers to work with students with 
disabilities. Finally, the National Activities technical 
assistance programs have a focus on providing assistance to 
teachers for their specific use in the classroom.
    
 Restoring trust and reducing litigation. 
Litigation under the Act has taken the less productive track of 
searching for technical violations of the Act by school 
districts rather than being used to protect the substantive 
rights of children with disabilities. This type of litigation 
breeds an attitude of distrust between the parents and the 
school personnel rather than working cooperatively to find the 
best education placement and services forthe child. H.R. 1350 
requires complaints that are filed to be clear and specific and 
establishes a statute of limitations of one year from the date of the 
violation. After a complaint is filed, a resolution session gives local 
educational agencies a 30-day opportunity to meet with the parents to 
address in detail any complaints before a due process hearing may 
occur, within the current 45-day timeline for hearings. Only issues 
that have already been raised at an IEP team meeting or the resolution 
session may be raised at a due process hearing. The bill encourages the 
use of mediation and voluntary binding arbitration to speed the 
resolution time so that children with disabilities obtain the needed 
services and education in a timely manner. The bill also provides a 
rational system of determining attorney fees by requiring the Governor 
to set the rate of attorney's fees that may be awarded for actions 
under this Act that arise in their State
    
 Ensuring school safety. Schools should be safe for 
all students and teachers. All students should be treated the 
same when it comes to discipline issues to ensure safety for 
all at the school. H.R. 1350 eliminates the dual discipline 
system while requiring that educational services continue for a 
child with a disability that violates the school code of 
conduct. If a violation results in a three-day punishment for a 
child without a disability, the child with a disability would 
receive the same punishment, while continuing to receive 
educational services. The change allows school personnel to 
place a child with a disability that violates the school code 
of conduct policy in an alternative setting for up to 45 school 
days, unless State law provides for a longer term. Where State 
law has longer consequences for specific incidents (typically 
incidents involving weapons, drugs, aggravated assault, or 
pulling a fire alarm), State law would be followed, except 
educational services would continue to be provided for children 
with disabilities.
    
 Reforming special education funding. The funding 
stream under the Act establishes a clear path to reach the 40 
percent goal through the discretionary appropriations process.

                            Committee Views


                      TITLE I--GENERAL PROVISIONS

Section 101. Sections 601 through 603 of the Individuals with 
        Disabilities Education Act

    Section 601. Short Title; table of contents; findings; 
purpose
    Section 601 updates the table of contents to reflect 
changes made throughout the Act and updates and modifies the 
findings to reflect current data on the importance and 
continued need for special education and related services for 
the nation's children with disabilities. One of the purposes of 
the Act is updated to reflect the importance of holding high 
standards for children with disabilities. The purpose of 
special education and related services is to ensure that 
children with disabilities are able to focus on their strengths 
and interests to become integrated into the mainstream of 
American society. By modifying the purpose to reflect the 
importance of further education, the Committee intends to send 
the message that children with disabilities have a broad array 
of opportunities available to them when they complete their 
secondary education and that children with disabilities can 
continue on to post-secondary education or to competitive 
employment or independent living.
    Section 602. Definitions
    Section 602 of the Act retains all of the definitions from 
the current Act, and adds or expands on a few of those 
definitions. The bill amends the definition of a child with a 
disability ages three through nine to include any subset of 
that age range, including ages three through five. This change 
is not intended to change or alter the scope of services 
provided to children ages three through nine, but to clarify to 
States that they have the flexibility to have a definition of 
developmental delay for a child with a disability ages three 
through five. The intent of this new provision is to allow 
States to provide services to that limited population of 
children that are provided services under the Part C program 
under the category of developmental delay, but are occasionally 
denied services under the Part B Section 619 program if the 
State does not have a definition of developmental delay for 
that age range. A child at the age of three should not be 
denied services due to a transition problem between the two 
programs.
    The bill adds a new definition of ``highly qualified,'' as 
it relates to teachers, to give that term the same meaning as 
it has in the Elementary and Secondary Education Act. The 
Committee wants to make it clear that all teachers teaching in 
core academic subjects should be qualified to teach their 
students, especially students with disabilities. The Committee 
believes that the requirements outlined under the No Child Left 
Behind Act provide a solid foundation for all teachers to 
ensure that all students are taught by a qualified instructor.
    The Committee wishes to clarify whether school nursing 
services are considered related services under the Act. School 
nursing services may be an appropriate related service for 
children with educationally-related medical needs. School 
nurses and school nursing services are utilized to help 
students with disabilities participate fully in schools. School 
nurses may be the primary caregivers in schools, providing the 
specialized health services many children with disabilities 
require to assure their inclusion, health and safety in school.

Section 102. Sections 605 through 607 of the Individuals with 
        Disabilities Education Act

    Section 606. Employment of Individuals with Disabilities.
    Section 606 is amended to reflect the importance of 
providing positive role models to children with disabilities. 
The Committee encourages the Secretary of Education 
(Secretary), State Departments of Education, and local 
educational agencies to continue to make positive efforts to 
employ individuals with disabilities as teachers, related 
services personnel, early intervention providers, and school 
administrators.
    Section 607. Requirements for Prescribing Regulations.
    Section 607 is significantly revised to reflect the 
Committee's intent to implement the enacted law in an efficient 
and effective manner. The changes provide States and local 
educational agencies with the secure knowledge that once the 
law and implementing regulationsare finalized there will not be 
significant changes in the way the law is interpreted or implemented 
without the opportunity to react to such changes. The bill consolidates 
language on regulations that is spread throughout several sections of 
the current Act in order to have a clear, concise section on the 
Department's authority to regulate under the Act.
    The bill clearly expresses the intent of the Committee that 
the Secretary should only regulate where necessary and to 
ensure compliance with the Act. Further, the Secretary is 
prohibited from issuing regulations that violate or contradict 
the clear provisions of the Act. The Committee understands that 
the implementing regulations for the current Act have caused 
confusion where the Act is clear, and have made the 
implementation of the Act too complicated. The Committee 
encourages the Secretary to take a careful and deliberate 
approach to developing regulations, and to expedite the 
regulatory process as quickly as possible 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 Committee also feels that, 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. The bill requires the 
Secretary to allow public input for at least 60 days on any 
regulations issued under this Act. The Committee recognizes the 
significant public interest in this Act, and feels that this 
timeline is sufficient to allow individuals the opportunity to 
review and comment on any proposed regulations.
    The bill makes several changes to the requirements 
regarding policy letters from the Secretary. The Committee 
feels that the Secretary should be particularly thoughtful in 
issuing policy letters. The bill maintains the requirement that 
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. H.R. 1350 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, the 
bill requires the Secretary to clearly state that any 
particular policy letter is written solely to the specific 
facts of that letter and should not be generally interpreted or 
applied to other situations or presentment of facts.
    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 had the impact of being 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 Improving 
Education Results for Children with Disabilities Act that 
purports to offer an interpretation of policy is subject to the 
new requirements of the bill.

Section 103. Section 608 of the Individuals with Disabilities Education 
        Act

    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 to their 
own burdens by making additional requirements for compliance 
with individual State laws regarding the education of children 
with disabilities. 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. States are encouraged to streamline their own rules, 
regulations, and policies relating to this Act to reduce 
unnecessary duplication or burdensome requirements that do not 
add value to the education of children with disabilities. 
States are also encouraged 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.

Section 104. GAO review; report

    The Committee is very interested in reducing the paperwork 
burden on teachers, schools, local educational agencies, and 
States. To that end, the bill calls for an independent review 
of the paperwork requirements under the Act to determine which 
requirements are responsible for causing the 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.

Section 105. GAO review of certain State definitions and evaluation 
        processes

    To address the issue of over- and under-inclusion of 
students in special education, the bill requires the 
Comptroller General to study the disparity between the 
different interpretations of the subcategories of ``child with 
a disability'' in which there is the greatest variability 
between States in terms of which students are served by the 
Act. This study will look at the degree to which State 
interpretations take scientific advancements into account. This 
study will allow Congress to review these definitions and 
further increase uniformity of application across States thus 
ensuring that every child receive the education most 
appropriate for their particular needs.

Section 106. Additional GAO study and report

    To maintain certification and currency in special education 
in many States, teachers are required to obtain professional 
development training at specified times. Special education 
personnel, however, find it difficult to commute to 
institutions of higher education for training, and this problem 
can be especially pronounced in rural school systems. 
Additionally, to better assist States in encouraging the 
development and use of distance learning and technology 
forspecial education personnel, it is critical to raise the awareness 
of what is currently available in the area of distance learning 
professional development. Thus, the bill calls for the Comptroller 
General study to research the existing and developing distance learning 
and technology programs offered to special education personnel. This 
knowledge will help better focus resources and time on developing 
programs where they are needed.

Section 107. GAO study on limited English proficient students

    The bill requires the Comptroller General to study on how 
limited English proficient children are being served under this 
Act. This study should consider the process from assessment to 
identification to the development of the IEP and the delivery 
of services. The report should discuss any barriers that those 
children and their families face in accessing special education 
services at each point in the process, what States and local 
educational agencies are doing to reduce these barriers, and 
what additional resources are required to improve special 
education services for limited English proficient children. The 
report should focus particular attention on the involvement of 
bilingual professionals and experts in the field of bilingual 
education and teaching English as a second language in the 
identification assessment, IEP team meetings, parental 
involvement, and delivery of instructional and other services 
to limited English proficient children with disabilities. The 
report should report on educational results, including academic 
achievement in the core subject areas, English language 
acquisition, and graduation rates, for limited English 
proficient children with disabilities.

  TITLE II--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES

Section 201. Authorization; allotment; use of funds; authorization of 
        appropriations

    Section 611. Authorization; Allotment; Use of Funds; 
Authorization of Appropriations
    Section 611 of the bill retains the existing formula that 
sends all funds above the fiscal year 1999 level through a 
funding formula to the States based 85 percent on the State's 
census data for children aged 3 through 21 (if the State 
provides FAPE to children of these ages), and 15 percent on the 
State's poverty rate for children aged three through twenty-
one. Distribution of Part B funds within States will be on the 
same basis.
    The bill continues to include State minimum and maximum 
thresholds within the formula to ensure that there is an 
equitable distribution of Federal resources through the 
formula. The Committee feels that these aspects of the formula 
have been proven to be an effective and efficient manner of 
distributing resources to the States.
    In addition, the Committee seeks to clarify the treatment 
of the Freely Associated States (FAS)--the Republic of the 
Marshall Islands, the Federated States of Micronesia, and the 
Republic of Palau--for the purposes of receiving funds under 
this IDEA. The Committee wishes to make clear that the 
provisions of P.L. 106-504 govern the distribution of funds 
under IDEA to the FAS. Specifically, section 3 of P.L. 106-504 
states that the FAS will remain eligible for any Federal 
programs, grant assistance, or services of the United States 
that they were eligible for October, 1, 1999. This period of 
eligibility is to continue through the negotiations on an 
extension of the Compact of Free Association and during the 
consideration by Congress of any such extension. The FAS were 
eligible to receive funds under IDEA on October 1, 1999. 
Therefore, the FAS remain eligible for funding under IDEA and 
the amendments made to IDEA by the Improving Educational 
Results for Children with Disabilities Act of 2003.
            Formula cap
    The Committee is concerned that there continues to be a 
problem with the overidentification of children, particularly 
minority children, as having disabilities. To that end, the 
Committee has restored a provision within the funding formula 
placing a limit on the number of students that can be 
identified for the purpose of generating funds under the Act. 
The provision places an absolute maximum that is designed, as 
the 40 percent level is reached, to prevent States and local 
educational agencies from overidentifying students in order to 
increase the level of funds distributed through the formula. In 
no way is this limitation intended to restrict the number of 
children that States can or should identify through appropriate 
and scientifically based evaluation methods. States can, and 
must, continue to conduct appropriate child find activities to 
ensure that all children with disabilities are identified and 
offered services under the Act.
    The Committee does not believe that individual educators 
identify children in order to maximize the level of funds that 
flow to the school, district, or State. However, the financial 
incentive that some State funding mechanisms have put in place 
may unintentionally create an incentive to identify children as 
having a disability, or prevent educators or school systems 
from appropriately moving a child out of special education. The 
Committee encourages States to reexamine their funding 
mechanisms to ensure that these unintended incentives do not 
exist in their funding mechanisms, and encourages States to 
adopt placement neutral funding patterns that do not create the 
potential for abuse.
            State-level activities
    The bill continues the existing funding mechanism for 
retention of funds at the State level. States are allowed to 
set aside a portion of these funds for the effective 
administration of the Act. This amount is linked to the 
appropriated funding level of fiscal year 1997 and is increased 
at an annual rate to match the rate of inflation or the 
appropriation increase, whichever is lower. Due to the 
unprecedented increases that Congress has provided over the 
past several years, States have been able to reserve 
inflationary increases for their State level funds.
    The Committee has been made increasingly aware of the need 
within States to address the problems districts face when a 
child with very expensive special needs is enrolled in the 
local educational agency. Local educational agencies are often 
overwhelmed by the costs associated with a child with expensive 
needs, but are committed to providing such children an 
appropriate education. The Committee recognizes and applauds 
the efforts of several States to address this problem and feels 
that the Act should provide assistance to those efforts and 
serve to encourage other States to take similar efforts.
    To meet this need, the bill allows States to reserve a 
portion of their State level funds for establishing and 
implementing a variety of funding mechanisms, consistent with 
State law or practice, to provide assistance to local 
educational agencies to address the financial burden that a 
child with high cost needs presents to a local educational 
agency. The bill does not establish a set model or specific 
program that States must create. Instead the Committee feels it 
is best to rely on the creativity of the States to determine 
the best methods of meeting these needs.
    Additionally, States are allowed to use their State level 
funds for other State activities to support local educational 
agency efforts to provide special education and related 
services to children with disabilities. The Committee feels 
that it is important to use these funds for the costs 
associated with general supervision, monitoring, and 
enforcement by States and local educational agencies. In 
addition, the Committee feels that these State level activities 
are important to help effectively implement the law, and 
encourages States to use these funds efficiently and creatively 
to maximize the impact of these funds.
    The bill also retains the language that requires the States 
to distribute any funds reserved at the State level in excess 
of the increase larger than the rate of inflation directly to 
local educational agencies. However, the Committee has made a 
significant change to this provision by seeking to align the 
activities supported by this funding stream to activities 
undertaken through the No Child Left Behind Act. States will be 
required to use these funds to provide technical assistance and 
direct services to local educational agencies that have been 
identified as being in need of improvement due to the 
assessment results of students with disabilities. Local 
educational agencies will use these funds to provide services 
to schools, including professional development for special 
education and regular education teachers, to improve results 
for children with disabilities.
    The Committee believes that these are important activities 
and are an essential component of the effort to improve 
academic achievement for children with disabilities. The No 
Child Left Behind Act, signed into law by President Bush in 
January 2002, calls for Federally funded schools to be held 
accountable to parents for improving results for all students, 
including students with disabilities, for the first time ever. 
Aligning the IDEA's accountability system with the No Child 
Left Behind Act is essential to ensuring that children with 
disabilities have the chance to learn and succeed academically. 
This activity will help that alignment and ensure that local 
educational agencies are focusing on improving results for 
children with disabilities.
            Bureau of Indian Affairs schools
    The Committee is also concerned about reports that funds 
have not been distributed in an effective and efficient manner 
to schools under the jurisdiction of the Bureau of Indian 
Affairs (BIA). The bill requires the Secretary of the Interior 
to take affirmative steps to ensure that the allotted funds are 
distributed quickly to the BIA schools in order to ensure that 
these schools have the resources they need to provide services 
to children with disabilities. Consistent with other reporting 
requirements, the bill requires that the Secretary of the 
Interior provide an annual report on the condition of special 
education and related services in BIA schools and has updated 
language in this section to that effect.
            Funding
    In 1975, when the Act was originally enacted, Congress 
established the goal of providing up to 40 percent of the 
national average per pupil expenditure to assist States and 
local educational agencies with the excess costs of educating 
students with disabilities. Historically, the appropriations 
for the Act have not come close to reaching the 40 percent 
level. In the years prior to 1995, funding for the Part B 
program reached roughly 7 percent of the average per pupil 
expenditure.
    Funding for the Individuals with Disabilities Act (IDEA) 
has been increased by nearly 300 percent during the previous 
seven years of Republican leadership, with special education 
grants to states reaching nearly $9 billion in fiscal year 
2003. This comes in stark contrast to special education funding 
during the previous seven years of Democrat control, during 
which special education grants to states increased by less than 
$1 billion overall. Under Republican control, Congress has 
shown unwavering support for the needs of children with 
disabilities by providing funding increases at an average 
yearly level of 18.6 percent--a rate of increase showing clear 
determination to ensure the federal share of special education 
costs reaches 40 percent.
    In H.R. 1350, the Committee has established a clear and 
genuine pattern to reach the 40 percent goal within the next 
seven years. The Committee strongly supports the action taken 
in the FY 2004 Budget Resolution Conference Report which 
includes a $2.2 billion increase for FY 2004 over the previous 
year and a $2.5 billion increase for FY 2005 over the FY 2004 
level. This is a clear commitment from this Committee to reach 
the 40 percent goal, and is the most realistic and 
straightforward approach that should be taken.
    The bill also maintains the Act as a discretionary program. 
The Committee feels that making the Act a mandatory funding 
program would create great difficulty in making necessary 
changes to the program in future years to improve services for 
children with disabilities. Under mandatory programs, any 
changes must be scored to determine their financial impact. Any 
changes or improvements to the program in future years that 
cost money would require other offsets to be found to pay for 
any changes. In the long run, making the Act a mandatory 
funding program could prevent the Act from receiving 
substantial funding increases. In the late 1980s the Vocational 
Rehabilitation State Grant program was made mandatory through a 
required annual cost of living increase. Since then, the 
program receives only this cost of living increase. The Part B 
program of the Act is experiencing much more substantial 
funding increases as a discretionary program.

Section 202. State eligibility

    Section 612. State Eligibility.
    Section 612 establishes the conditions of State eligibility 
for Part B funds. Most provisions are retained from current law 
and new provisions have been added to improve services and 
compliance with the Act.
    The Committee is concerned that the Department has 
overemphasized compliance with process and relied on gathering 
paperwork in determining the eligibility of the States under 
the Act. While the Committee agrees that States should be able 
to demonstrate their intention and ability to comply with the 
provisions of the law, the Committee also recognizes that the 
Department has occasionally been overzealous in its oversight 
responsibility. Accordingly, the bill includes language 
modifying the standard of oversight to allow States to 
reasonably demonstrate to the Secretary that the State has in 
effect policies and procedures to ensure compliance with the 
Act. The Committee does not intend this to imply that the 
States do not need to implement effective policies or 
procedures under the Act or demonstrate the existence of 
effective policies and procedures. The change in language is 
not intended to provide a rationalization to States for failure 
to effectively implement the Act. Instead, the change is 
intended to ensure that the Secretary is focused on ensuring 
overall compliance with the Act and not forcing States to 
change individual words or phrases within their laws, policies, 
or regulations unless there is a clear contradiction of 
substantive portions of the Act. For example, this provision 
would allow States to include in its application cites to 
specific policies or procedures; however, it would no longer 
require State to send boxes upon boxes of copies of each policy 
or procedure for the Department to review.
            Private school students
    The bill makes a number of changes to clarify the 
responsibility of local educational agencies to children with 
disabilities who are placed by their parents in private 
schools. The Committee feels that these are important changes 
that will resolve a number of issues that have been the subject 
of an increasing amount of contention in the last few years. 
First, the bill clarifies that the proportional amount of money 
obliged to be used to provide special education and related 
services to children in the State with disabilities who have 
been placed by their parents in private schools must be used to 
provide some direct services. The Committee expects that the 
majority of the funds expended for this purpose will be for 
direct services, while the remainder may be used for indirect 
services such as professional development of private school 
teachers to work with children with disabilities and counseling 
to assist private school personnel in meeting the needs of the 
child with a disability. Further, the bill retains language in 
current law making it clear that the cost of evaluating these 
children under a State's child find process may not be 
considered in meeting the proportional obligation.
    Second, the bill requires local educational agencies to 
document the number of these children served with the 
proportional funds. Such requirement ensures that these funds 
are serving their intended purpose. Third, the bill continues 
to point out that local educational agencies may provide the 
special education and related services funded under Part B on 
the premises of private, including religious, schools.
    This provision, originally designed to implement the 
principle in the Supreme Court decision, Zobrest v. Catalina 
Foothills School District (holding that a sign interpreter for 
a deaf student at his parochial school paid with Part B funds 
was not a violation of the Establishment Clause of the First 
Amendment), remains in this bill. The Committee wishes to make 
clear that local educational agencies should provide direct 
services for parentally-placed private school students with 
disabilities (as for most students) on site at their school, 
unless there is a compelling rationale for such off-site 
services. Such intent indicates the preference that providing 
services on site at the private school is more appropriate for 
the student and less costly in terms of transportation and 
liability.
    The bill addresses how child find should be conducted for 
parentally-placed private school children with disabilities. 
The bill requires that a State's child find process be designed 
to ensure the equitable participation of these children. Local 
educational agencies must undertake similar activities to 
identify these children as it does for its other public school 
children.
    Finally, the bill spells out the required consultation 
process between the local educational agency and 
representatives of children with disabilities parentally-placed 
in private schools (including both parents and private school 
officials) to be used in designing and developing special 
education and related services for these children. The 
consultation must occur on the issues of the child find 
process, the determination of the proportional share, the 
continuous evaluation of children throughout the school year, 
and the provision of special education and related services. If 
private school officials believe the consultation process has 
not been followed, they have the right to appeal to the State 
Educational Agency, a process similar to appeal available to 
them under section 1120(b)(5) of Title I of the Elementary and 
Secondary Education Act of 1965. The bill further clarifies 
that the provision of special education and related services 
may be made by either the local educational agency or through 
contracts by the local educational agency with an individual, 
association, agency, organization or other entity, as long as 
the title to any materials, equipment or property remain with 
and all administered by the local educational agency.
            Special education teachers
    The bill makes several changes to sections 612(a)(14) and 
(15). The bill eliminates section 612(a)(14) that requires 
States to develop a comprehensive system of personnel 
development. The Committee is not convinced that the current 
requirement has proven to be of any added value to State 
efforts to secure an adequate supply of qualified personnel and 
has, instead, become a burdensome paperwork exercise. The bill 
also requires States to ensure that special education teachers 
that teach in a core academic subject are highly qualified in 
those subjects. This is one of the several important links that 
the Committee has made between this Act and the No Child Left 
Behind Act. Under the No Child Left Behind Act, Congress 
established rigorous criteria that all teachers, including 
special education teachers, must meet in order for the State to 
receive Federal funding. The Committee believes that this bill 
should reflect those important changes and ensure that all 
children, including children with disabilities, are taught by a 
highly qualified teacher.
    The bill also eliminates language allowing local 
educational agencies to delay the hiring of adequately trained 
personnel for three years. The Committee takes this action for 
two reasons. First, by aligning with the No Child Left Behind 
Act, the Committee feels that there is adequate flexibility in 
the hiring and training of teachers. Second, as discussed 
below, by eliminating the requirement that related services 
personnel need to meet the highest certification in the State 
for the profession, the Committee feels that it is reasonable 
to expect States and local educationalagencies to provide an 
adequate supply of highly qualified, well-trained individuals to 
provide related services.
    To maintain certification and currency in special education 
in most States, teachers are required to obtain professional 
development training at specified times. Special education 
personnel, however, find it difficult to impossible to commute 
to institutions of higher education for training. This problem 
can be especially pronounced in rural school systems. The 
Committee is interested in encouraging States to develop and 
use distance-learning technology for professional development 
for special education personnel. Accordingly, the bill includes 
a requirement that States implement distance-learning 
opportunities for professional development programs to benefit 
special education teachers. Yet, the Committee also recognizes 
that this may take time and does not intend for the States to 
be penalized for not having such distance programs available 
immediately for all special education personnel.
    As it relates to related services personnel, the bill 
removes language from current law that forces States to ensure 
that these personnel meet the highest requirement in the State 
applicable to a specific profession. While the Committee is 
interested in securing a high quality workforce to provide 
services to children with disabilities under the Act, the 
Committee does not feel it is advantageous to require States to 
meet an unreasonably high threshold, which has the effect of 
making the provision of these services increasingly scarce and 
more expensive. Therefore the Committee eliminated this 
requirement while still allowing States to establish their own 
measures of high quality related services personnel.
            Academic achievement of children with disabilities
    The bill makes a series of significant modifications to 
reflect the important changes to accountability that were 
enacted under the No Child Left Behind Act. The No Child Left 
Behind Act 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, the No Child 
Left Behind Act 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 the No Child Left Behind Act to ensure that 
there is one unified system of accountability for States, local 
educational agencies, and schools.
            Assessments
    Section 612(a)(16) makes clear that the requirements of the 
No Child Left Behind Act regarding participation of children 
with disabilities in State and district-wide assessment systems 
applies under the Act. The bill requires States to ensure that 
all children with disabilities participate in the general State 
and district-wide assessment programs, with appropriate 
accommodations, as necessary. The bill also encourages States 
to develop and implement appropriate and rigorous alternate 
assessments aligned to State standards for students that cannot 
participate in the regular assessment. The Committee recognizes 
that this is not a new requirement and that States are 
currently under the obligation to have in place alternate 
assessments for their students. However, since many States have 
failed to implement this existing provision, the Committee 
encourages the Secretary to take this failure into 
consideration for compliance purposes. While the Committee is 
encouraged at actions taken by the Secretary in the most recent 
fiscal year, the Committee reminds the States and the Secretary 
that this requirement is one of the many conditions that must 
be met in order to be eligible to receive funds under Part B of 
the Act and that failure to meet this condition may place a 
State's eligibility in jeopardy.
    The bill also makes clear that States have an affirmative 
obligation to determine what types of accommodations can be 
made to assessments while maintaining their reliability and 
validity. The bill requires States to develop and implement 
guidelines on appropriate accommodations. The Committee intends 
that this provision will serve as a valuable tool for the IEP 
Team as they determine which assessments a child with a 
disability should take, and which accommodations are 
appropriate. The Committee is intent on ensuring that each 
child with a disability receives appropriate accommodations, 
but is equally intent that these accommodations not invalidate 
the particular assessment. In developing the guidance on 
accommodations, the Committee encourages States to work with 
test publishers, assessment experts, special education 
teachers, and other experts to maximize the opportunities for 
children with disabilities to participate in regular 
assessments. The Committee also requires the IEP Team to 
thoroughly review and consider which accommodations are 
appropriate for the individual child to ensure that the 
assessment is meaningful and valid for the child.
            Instructional materials for blind and print-disabled 
                    students
    The Committee is concerned the many blind or print-disabled 
students are regularly denied timely access to instructional 
materials. Currently, these instructional materials, in 
specialized formats such as Braille, synthesized speech, and 
digital text, often do not get to the students who need them in 
a timely manner, which should be the same time fellow students 
without print disabilities are receiving their copies of the 
materials. Diverse file format requirements among the States 
and, sometimes, even within States, make it difficult for 
educational agencies to obtain required textbooks from 
publishers in the form of electronic files suitable for use in 
reproducing the material in a specialized format for 
accessibility. The most frequently required file formats (e.g., 
ASCII) are 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.
    The bill adds a new provision to section 612 of the Act 
regarding instructional materials for blind and print disabled 
students. The provision is intended to provide students who are 
blind or have other print disabilities (as defined under 
current law) with more timely access to instructional materials 
used in elementary and secondary schools. The bill requires 
States to adopt the national instructional materials 
accessibility standard in its arrangements for getting such 
materials reproduced in specialized formats that are accessible 
to blind and print-disabled students.
    The Committee recognizes the important work that the 
Department has already started in this area. This new provision 
in the bill requires States to adopt that standard in a timely 
manner after it is published by the Secretary in the Federal 
Register. Not later than two years after the date of enactment 
any purchase agreement for instructional materials (as defined 
in the bill) all State contracts with textbook publishers must 
include that standard. The bill provides a two-year transition 
period for applying the standard to meet the adaptation needs 
of the publishers who must provide the files, the needs of the 
authorized entities who actually use the files to convert the 
printed instructional materials into specialized formats, and 
the needs of States to modify and update their contracts with 
publishers.
            Overidentification
    The Committee has heard from numerous experts through 
testimony and other opportunities regarding the 
overidentification of minority students. Secretary of Education 
Roderick Paige testified to the Education and Workforce 
Committee that:

          For minority students, misclassification or 
        inappropriate placement in special education programs 
        can have significant adverse consequences, particularly 
        when these students are being removed from regular 
        education settings and denied access to the core 
        curriculum. Of particular concern is that, often, the 
        more separate a program is from the general education 
        setting, the more limited the curriculum and the 
        greater the consequences to the student, particularly 
        in terms of access to postsecondary education and 
        employment opportunities. The stigma of being 
        misclassified as mentally retarded or seriously 
        emotionally disturbed, or as having a behavioral 
        disorder, may also have serious consequences in terms 
        of the student's self-perception and the perception of 
        others, including family, peers, teachers, and future 
        employers.

    The Honorable Chaka Fattah, Member of Congress (D-PA), 
stated in his testimony to the Education and Workforce 
Committee that ``the misplacement of students in special 
education stigmatizes and denies students the opportunity of a 
high quality education.''
    Research shows that African Americans are nearly three 
times as likely to be identified as mentally retarded as their 
peers and nearly twice as likely to be labeled emotionally 
disturbed. Several high quality studies and scientific analyses 
have demonstrated that there is no correlation between race and 
disability. The Committee is very concerned about the problem 
of overidentification and disproportionate representation of 
minority children in special education, and has adopted several 
strategies throughout the bill to address these issues. The 
bill requires States to have policies and procedures in place 
to prevent the overidentification or disproportionate 
representation of children as having disabilities. The 
Committee recognizes that the identification process requires 
individualized decisions that are appropriate for the 
individual child that may, when aggregated together, indicate a 
potential overidentification problem. The Committee does not 
intend to penalize local educational agencies for making 
appropriate decisions for each individual child. The Committee 
encourages States to develop positive and proactive methods of 
dealing with this problem.
    Appropriate procedures include the use of rigorous methods 
of evaluation and classification of disability to ensure that 
the evaluation procedures provide consistent results rather 
than subjective decisions, the provision of high quality 
professional development to ensure that teachers and evaluators 
understand the identification process, and the implementation 
of high quality, scientifically based instruction for all 
children. States should not establish blanket policies that do 
not take into consideration the needs of the individual 
children within the district, but should vigorously examine any 
district that the State suspects has an overidentification or 
disproportionality problem to ensure that children are not 
being inappropriately identified as being disabled. The 
Committee further encourages local educational agencies to make 
effective and appropriate use of the prereferral services 
option discussed below to help address this problem.
            Psychotropic medication
    The Committee has been made aware of incidents where local 
educational agency officials have required parents to place 
children on psychotropic medication in order to attend school 
or receive services. The Committee feels that school officials 
should not presume to know what medication a child needs, or if 
the child even needs medication. Only medical doctors have the 
ability to determine if a prescription for a psychotropic drug 
is appropriate for a child. However, the Committee wants to 
stress the importance of open and effective communication 
between the parent and school officials (including teachers) 
regarding the needs of the child as a whole.
    Accordingly the bill requires States, as a condition of 
receiving funds under the Act, to establish policies and 
procedures prohibiting school personnel from requiring a parent 
to obtain a prescription for their child for drugs listed under 
the Controlled Substances Act in order to attend school or 
receive services. The Controlled Substances Act regulates the 
manufacture and distribution of narcotics, stimulants, 
depressants, hallucinogens, anabolic steroids, and chemicals 
used in the illicit production of controlled substances. The 
Controlled Substances Act places all regulated substances into 
one of five schedules. This placement is based upon a 
substance's medicinal value, harmfulness, and potential for 
abuse or addiction.

Section 203. Local educational agency eligibility

    Section 613. Local Educational Agency Eligibility.
    The Committee is concerned that the Department has 
overemphasized compliance with process and focused on a 
reliance on gathering paperwork--a practice that States have 
copied when determining the eligibility of local educational 
agencies. The Committee agrees that local educational agencies 
should be able to demonstrate their intent and ability to 
comply with the provisions of the Act. Accordingly the bill 
includes language allowing local educational agencies to 
reasonably demonstrate to the State that they have in effect 
policies and procedures to ensure compliance with the Act. The 
Committee does not intend this to imply that the local 
educational agencies do not need to implement effective 
policies or procedures under the Act, nor is the language 
intended to provide a rationalization to local educational 
agencies for failureto effectively implement the Act. Instead, 
the change is intended to ensure that the State is focused on ensuring 
overall compliance with the Act.
            Local use of funds
    Within Section 613, the bill retains the authority of the 
local educational agency to treat as local funds the increase 
from one year to the next, when amounts appropriated under 
section 611 exceed $4.1 billion. The bill does add this 
provision to require the local educational agency to use those 
funds to provide additional funding for programs supported 
under the Elementary and Secondary Education Act. The Committee 
feels that Congress appropriated these funds to be used for 
educational activities and that these funds should continue to 
be used for educational purposes.
    The bill also changes the standard that allows the State to 
prevent the local educational agency from exercising the 
authority to treat Federal funds as local funds. The Committee 
feels that the State should meet an exceptionally high standard 
to prevent local educational agencies from exercising local 
control over these funds. The bill requires the State to 
determine that the local educational agency is unable to 
establish and maintain programs of free appropriate public 
education in order for the State to prevent the local 
educational agency from exercising this authority. The 
Committee reminds States that if such a determination is made, 
then the State has an affirmative obligation under other 
sections of the Act to take control of the local educational 
agency's special education program.
    New provisions in section 613 give local educational 
agencies greater flexibility in the use of part B funds to meet 
the needs of prereferral services, high cost special education 
services, case management and administration, supplemental 
educational services for children with disabilities, and 
providing services to charter schools.
            High cost special education and related services
    The Committee has been made increasingly aware of the needs 
of local educational agencies to provide services to children 
with very expensive special needs. Local educational agencies 
are often overwhelmed by the costs associated with a child with 
expensive needs, but are committed to providing such children 
an appropriate education. The Committee recognizes and applauds 
the efforts of several States to address this problem and has 
provided flexibility to States to address this issue with State 
funds elsewhere in the Act.
    However, as another tool to help meet this need, the bill 
includes as an allowable use of local educational agency funds 
the ability of local educational agencies on their own or 
working in consortium with other local educational agencies to 
reserve funds to establish and implement any of a variety of 
funding mechanisms, consistent with State law, to provide 
services to a child with high cost needs. The bill does not 
establish a set model or specific program that local 
educational agencies must create or implement. Instead the 
Committee feels it is best to rely on the creativity of the 
States and local educational agencies to determine the best 
methods of meeting these needs.
            Technology in the IEP
    The Committee has heard from hundreds of teachers, 
principals, and parents who have concerns that local 
educational agencies do not have the ability to use modern 
technology for record keeping, data collection, and developing 
IEPs. Mr. Gregory J. Lock, principal of Oak View Elementary 
School in Fairfax, Virginia, testified to the Subcommittee on 
Education Reform that the Act should ``provide for the use of 
technology to automate the written components of the IEP 
process in order to reduce the time spent on the preparation of 
the IEP.''
    The Committee has even heard from teachers who have been 
required to hand write all of their IEPs, and rewrite IEPs from 
the beginning whenever any changes are made to the IEP. The Act 
does not contain any such requirements or prohibit the 
appropriate use of technology. The Committee encourages local 
educational agencies to use technology appropriately in 
implementing this Act. To further this goal, the bill allows 
local educational agencies to use funds under the Act to 
purchase appropriate technology to improve the administration 
of the Act and to reduce the paperwork burden on teachers.
            Supplemental educational services
    The bill also allows local educational agencies to use 
their Part B funds to support supplemental educational services 
for children with disabilities in Title I schools in need of 
improvement. The bill supports access for children with 
disabilities to supplemental educational services and their 
parent's ability to pick the best provider. All children in 
schools which fail to make adequate yearly progress under the 
Elementary and Secondary Education act for three consecutive 
years, especially children with disabilities, should be given 
an opportunity for supplemental educational services. Expanding 
access to more eligible supplemental educational services 
providers will help improve results for their children with 
disabilities.
    Currently under the No Child Left Behind Act, local 
educational agencies are limited in the amount of funds that 
can follow a child to his or her chosen supplemental 
educational services provider. However, the Committee is aware 
that there may be extra costs associated with providing 
necessary accommodations to serve children with disabilities. 
This provision allows local educational agencies to decide 
whether to use funds under this Act to meet those extra costs 
and ensure that these children have access to the same 
supplemental educational services providers as other children 
in the school. This change is a logical extension of the No 
Child Left Behind Act to ensure that children with disabilities 
have access to the full measure of options for supplemental 
educational services.
    It should be made absolutely clear that this provision only 
allows local educational agencies to supplement the current 
level of funding available to these children under the No Child 
Left Behind Act with funds under this Act, and in no way is 
intended to allow the supplantation of the required funding 
under the No Child Left Behind Act. Allowing local educational 
agencies to choose to use these funds to supplement its other 
efforts ensures that students with disabilities in schools in 
need of improvement are not limited to only the district or 
State provider of supplemental educational services.
            Charter schools
    The bill also amends two provisions concerning how charter 
schools that serve children with disabilities are treated when 
they are part of local educational agency. The current Act 
includes provisions to ensure that charter schools are treated 
equitably both in the distribution of funds and the provision 
of services. In situations where charter schools are within a 
local educational agency, the bill modifies current law because 
it has been interpreted by the Department as preventing a local 
educational agency from providing funds to charter schools on a 
proportional basis unless the local educational agency provided 
funds directly to its other schools. Such a determination fails 
to account for the fundamental difference in a school that 
operates independently and adheres to a charter or performance 
contract. The Committee intends that charter schools be able to 
provide services to children with disabilities under the Act. 
To remedy this problem, the bill continues to require local 
educational agencies to serve children with disabilities in its 
charter schools in the same manner it serves its other public 
school students. It further clarifies that this requirement 
includes providing supplemental and related services on site at 
the charter school where the local educational agency has a 
policy or practice of providing these services on site at its 
other public schools.
    The bill also modifies the requirement for how local 
educational agencies provide funds to its charter schools. This 
provision clarifies that the local education agency must 
provide funds for charter schools serving children with 
disabilities on the same basis and at the same time as it 
serves children with disabilities in its other schools. The 
bill directs local educational agencies to provide charter 
schools with funds under section 611 determined by their direct 
proportional distribution based on relative enrollment and at 
the same time that it provides other Federal funds. The 
Committee intends that local educational agencies should not 
withhold services or funds from charter schools as such actions 
serve only to deprive children with disabilities of their right 
to a free appropriate education and only further polarize the 
charter school and the local educational agency from working 
together.
            Prereferral services
    The Committee heard from numerous individuals who have 
called for providing assistance to students on the verge of 
being identified in need of special education services. Dianne 
Talarico, Superintendent of the Canton City School District in 
Canton, Ohio, testified to the Subcommittee on Education Reform 
that:

          Too often students are referred to special education 
        because they are not succeeding in the general 
        education setting and they need extra support or 
        intensified instruction. While they do not need special 
        education, they are referred there anyway. Frankly, too 
        many general educators are not skilled in meeting a 
        diverse range of student learning needs, so they are 
        eager to ``dump'' students out of their classes and off 
        of their rosters so they are not responsible for them.

    The bill includes a significant new provision regarding 
support for prereferral services to benefit children before 
they are referred to special education. The bill allows local 
educational agencies to use up to fifteen percent of their 
allocation under section 611 to develop and implement 
comprehensive coordinated prereferral educational support 
services for students not yet identified as having a 
disability. These funds should be used in coordination with 
other education funds and programs to provide high quality, 
intensive services to students that need additional academic 
and behavioral support in a general education environment.
    The Committee understands that this is an important new 
concept to the Act that will have a beneficial impact on the 
lives of children. The Committee's intent with this new 
provision is to provide flexibility to local educational 
agencies to establish a comprehensive coordinated system of 
services to children that may be on the verge of manifesting a 
disability or are at risk of being inappropriately identified 
as having a disability.
    The Committee has heard testimony and received a 
significant level of requests from teachers and school district 
officials for the ability to provide intensive services to 
students that might otherwise be referred to special education, 
even if the student does not have an identifiable disability. 
The Committee feels that a substantial number of children, 
particularly minority children, are being inappropriately 
referred to special education primarily because of reading 
difficulties or behavior problems. While such a referral may 
provide an immediate or short-term solution to the problem, 
such actions are not in the long-term interest of the child and 
are antithetical to the intent and purpose of the Act.
    The Committee encourages local educational agencies to use 
this flexibility to provide regular education and special 
education teachers high quality professional development 
programs to ensure that all teachers are able to use 
scientifically based academic instruction methods, particularly 
methods in literacy and reading instruction. The Committee 
feels that providing such high quality professional development 
will benefit the children served under this section as well as 
all other children served under the Act by improving the skills 
of teachers.
    The Committee encourages local educational agencies to 
provide direct services, especially scientifically based 
literacy instruction, and speech therapy services where 
appropriate, to students served under this section to remedy 
any reading deficiencies that the students may have and to 
adequately assess and evaluate the skills of these students. 
The Committee believes that the provision of these services and 
the use of the variety of evaluation and assessment methods 
that accompany the provision of scientifically based literacy 
instruction will help differentiate between students who have 
different learning styles and students that have disabilities, 
especially learning disabilities. The Committee has heard 
experts discuss the difference between a reading difficulty and 
a reading-based learning disability, and encourages local 
educational agencies to take careful steps to make these 
determinations with their students. The Committee reminds local 
educational agencies that a child with a reading difficulty 
cannot be identified as a child with a disability if the 
determinant factor is their reading difficulty. However, 
children with reading-based learning disabilities can, and 
should, be appropriately identified as disabled.
    The Committee also encourages local educational agencies to 
provide positive behavior interventions and supports to 
children that have demonstrated behavior problems within 
school. The Committee understands that a significant number of 
students, particularly African American males, are 
inappropriately referred to special education and identified as 
having an emotionaldisturbance. The Committee has heard 
testimony from experts regarding the appropriate use of positive 
behavior interventions and supports, and encourages local educational 
agencies to implement these constructive strategies to reduce the level 
of inappropriate behavior by individuals and to improve the overall 
educational environment within the school building.
    In creating the opportunity for local educational agencies 
to develop and implement these prereferral services, the 
Committee is also aware of the potential for confusion 
regarding the appropriate use of these services. The Committee 
does not intend for these services to be operated in settings 
that create the potential for a separate system for the 
students served under this section. While it may be appropriate 
to provide some intensive services in a separate setting, the 
substantial majority of these services should be provided in 
the regular education setting to students with their disabled 
and non-disabled peers.
    The bill is also explicitly clear that children served 
under this section do not have the same rights and protections 
as students that are identified as eligible for services under 
the Act in sections 614 and 615. Children served under this 
section do not have a right to a free appropriate public 
education in the least restrictive environment, and being 
served under this section does not trigger the local 
educational agency's responsibility to have known the child had 
a disability under section 615(j). However, the Committee does 
not intend for the provision of these services to delay or 
deny, in any way, the appropriate referral and evaluation of a 
child to determine whether the child has a disability. Local 
educational agencies are not authorized to delay the 
implementation of a requested evaluation by providing services 
under this section. The Committee also reminds local 
educational agencies that other obligations exist regarding 
parental consent for the provision of educational services.
    The Committee is also very interested in rigorous data 
collection efforts under this section to ensure that the 
services provided under this section are effectively 
implemented. The Committee encourages States and the Department 
to establish a vigorous reporting system for local educational 
agencies that decide to use this flexibility in order to 
evaluate the effectiveness of this program and to determine the 
breadth and depth of the impact of these services.

Section 204. Evaluations, eligibility determinations, individualized 
        education programs, and educational placements

    Section 614. Evaluations, Eligibility Determinations, 
Individualized Education Programs, and Educational Placements.
    Empowering parents to be more involved in the decisions 
about the education of their child is the focus of many changes 
in section 614. The Committee feels that parents should be 
integral partners in the development of their child's IEP and 
has made several changes to the development process of the IEP 
to empower parents to establish effective working relationships 
with their child's school to develop effective IEPs. The 
Committee also had the goal of reducing the paperwork burden 
that is often associated with the IEP. The bill will help 
reduce the paperwork burden on teachers so that they are able 
to spend more time working with students. The excessive amount 
of paperwork currently inherent in the process overwhelms and 
burdens teachers, robbing them of time to educate their 
students. It also makes it more difficult for school districts 
to retain and recruit highly qualified special education 
teachers. Teachers must have the ability to spend more time 
with their students in the classroom, rather than spending 
endless hours filling out forms that do not lead to a better 
education for students.
            Parental consent
    The bill clarifies the rights of parents with regard to 
initial evaluation and services for their child. Parents have 
the right to refuse both the initial evaluation of their child 
as well as the provision of services to their child under the 
Act. However because of the obligation to conduct child find, 
the law permits, but does not require, the local educational 
agency to override parental consent for the limited purpose of 
the initial evaluation. Next, the bill strengthens parental 
consent provisions to ensure that parental consent is required, 
and cannot be overridden, when it comes to the provision of 
services. This provision clarifies the distinction between the 
initial evaluation and the provision of services. This bill 
further clarifies that local educational agencies are not 
required to draft an IEP for a child if the parent has refused 
their consent for services. The Committee does not expect local 
educational agencies, as part of the required child find 
process, to feel compelled to override the refusal of a parent 
to consent to an evaluation if the parent has clearly indicated 
their refusal to consent to an initial evaluation and their 
intention to refuse the offer of special education and related 
services for their child.
            Evaluations
    The bill clarifies that diagnostic testing and screening by 
teachers to determine the appropriate curricular placement and 
interventions is not to be considered an evaluation for the 
purposes of determining eligibility for services under the Act.
            Reevaluations
    The bill makes changes to the reevaluation process to 
enable the local educational agency to reevaluate the child if 
his or her educational needs, including improved academic 
achievement, make such a reevaluation necessary. The bill 
maintains the ability of the parent or the teacher to request a 
reevaluation and retains the requirement that reevaluations 
occur at least once every three years. The bill makes one 
important change to the triennial evaluation by allowing the 
parent and the local educational agency to agree that it is not 
necessary to reevaluate the child. Many parents and school 
district officials have suggested to the Committee that it is 
not necessary to reevaluate every child, and this change allows 
the parent to make that determination. The bill also makes 
clear that local educational agencies are only required to 
provide one reevaluation a year, unless the local educational 
agency chooses to conduct an additional reevaluation if the 
child's educational needs suggest to the local educational 
agency that such a reevaluation is necessary.
    The Committee is concerned that the evaluation procedures, 
assessments, and diagnostic tools have become moribund and 
resistant to change as better evaluation procedures have become 
available. The Committee strongly believes that local 
educational agencies should use the most up-to-date measures, 
assessments, and evaluation practices that have been 
independently verified to be valid and reliable for the purpose 
that the measures are designed toevaluate. To that end, the 
bill updates the description and the requirements regarding the 
measures used for evaluations and encourages the Department to work 
with the States and local educational agencies to determine which 
measures are most appropriate for evaluating whether a child has a 
disability.
            Overidentification of students
    The Committee is discouraged by the practice of 
overidentifying children as having disabilities, especially 
minority students, largely because the children do not have 
appropriate reading skills. Special education is not intended 
to serve as an alternative place to serve children if the local 
educational agency has failed to teach these children how to 
read. The bill updates language within the Act to contain a 
specific requirement that a child cannot be determined to be a 
child with a disability solely because the child did not 
receive scientifically based instruction in reading. With the 
combination of programs authorized under the Elementary and 
Secondary Education Act, particularly Reading First and Early 
Reading First, and the prereferral services concept under 
section 613, the Committee hopes that local educational 
agencies will improve their reading and literacy instruction to 
enable all children to read at grade level by the third grade. 
The Committee believes that these changes will help reduce the 
number of children being inappropriately referred to, and 
identified under, special education and should encourage 
schools to improve their programs on these subjects in early 
grades.
            Specific learning disabilities
    Dr. Robert Pasternack, Assistant Secretary for Special 
Education and Rehabilitative Services at the U.S. Department of 
Education, testified before the Subcommittee on Education 
Reform regarding specific learning disabilities and appropriate 
methods of identification of that disability. He testified 
that:

          The convergence of scientific research about LD 
        [``Learning Disabled''], especially reading 
        difficulties associated with LD, has placed us on the 
        edge of new knowledge that we did not have even a few 
        short years ago. We now know, for example, that the way 
        we have traditionally looked at assessment of learning 
        disabilities needs to be re-thought based on recent 
        research in the use and role of IQ tests in assessments 
        for eligibility. We know that using IQ discrepancy 
        between the test and performance is not always an 
        indicator of a learning disability. Indeed, some 
        research indicates that if a child who reads slowly has 
        IQ scores that are above average, that child might 
        receive services under the IDEA based on the 
        discrepancy between the IQ scores and the reading 
        ability. On the other hand, another child who also 
        reads slowly but has IQ scores that are average may not 
        receive any services because of the lack of a 
        significant discrepancy. Such approaches to assessment 
        may clearly result in some children who need services 
        not getting them while others who do not need them will 
        receive them.

    The bill includes very clear language regarding the 
determination of eligibility for students as having a specific 
learning disability. The Committee is discouraged by the 
widespread reliance on the IQ-achievement discrepancy model 
that serves as the determining factor of whether a child has a 
specific learning disability. The Committee does not disregard 
the research base that supports the appropriate use of IQ 
tests, but the Committee acknowledges the widespread misuse of 
those measures. The bill specifically allows local educational 
agencies to continue to use the discrepancy model. However, the 
Committee hopes that local educational agencies that continue 
to use the discrepancy model will take great efforts to ensure 
that the application of the discrepancy model falls within the 
appropriate guidelines of the IQ assessment, and that 
evaluators do not rely solely on a simple test score, but place 
that result within the larger context of the child's individual 
abilities.
    The Committee is greatly encouraged by the growing use of 
alternative measures that are being used in place of the IQ-
achievement discrepancy model. Dr. Douglas Carnine, director of 
the National Center to Improve the Tools of Educators at the 
University of Oregon, testified to the Subcommittee on 
Education Reform that:

          Given the converging evidence and agreement in the 
        field that we must do something better for our 
        children, the following model is recommended as the 
        basis to improve how we provide early intervention and 
        identification: Response to Intervention Model (RTI). A 
        RTI model would be designed to ensure that children who 
        are indicating a likelihood of failing in the early 
        grades receive scientifically based instruction as soon 
        as possible.
          The eligibility for special education services would 
        focus on the children who, even with these services, 
        are not able to be successful. The focus of RTI is on 
        responding to the instructional challenges caused by 
        the disability, not on giving tests to document the 
        failure of the student.

    The Committee encourages local educational agencies to take 
advantage of the prereferral services in section 613 to provide 
early intervention services to students and accompany those 
services with rigorous evaluation methods and curriculum-based 
assessments to measure the progress of the child. Through the 
application of high quality instruction, delivered by well-
trained individuals, local educational agencies will be able to 
differentiate between children that have different learning 
styles and children that have disabilities. The experience of 
some local educational agencies and States that have adopted 
other methods, such as ``Neverstreaming'' or ``response-to-
intervention'' have demonstrated that scientifically based, 
rigorous assessment methods exist and should serve as models 
for other local educational agencies and States to follow.
    David W. Gordon, Superintendent of the Elk Grove Unified 
School District in Elk Grove, California testified to the 
Subcommittee on Education Reform that:

          Neverstreaming changes the paradigm from failing 
        first to preventing failure in the first place. By 
        changing that paradigm through constant vigilance, we 
        actually promote prevention over reactive models. 
        Prevention means that you prevent the child from 
        backsliding educationally to the point where support is 
        only available through separate program models that 
        require long-term remediation with very little chance 
        of catching up to the grade level group.

    The Committee encourages the Department to establish 
effective technical assistance, training, model development, 
dissemination centers, and professional development activities 
to support these alternative models. The Department should also 
conduct high quality research to evaluate the effectiveness of 
these models, and provide more information regarding these 
alternatives.
            Exit evaluation
    The bill revises the commonly-termed ``exit evaluation'' to 
allow the IEP Team to determine that a child may leave special 
education and return to the regular education program or 
graduate from high school without a costly and unnecessary 
evaluation. However, if the IEP Team is not in agreement on 
this change in eligibility status, a full exit evaluation is 
still required.
            Accountability
    Within section 614(d) the bill makes several important 
changes to improve the focus of the IEP on the educational 
program and the academic achievement of children with 
disabilities. The Committee recognizes the importance of 
assessing progress for all children, particularly children with 
disabilities, and increases the focus of the IEP in measuring 
the academic achievement of children with disabilities. The 
Committee believes that the reporting requirements included in 
the No Child Left Behind Act are a very important development 
in measuring progress for all children, particularly children 
with disabilities, and is placing significant new 
accountability requirements on schools, local educational 
agencies, and States.
    Harriet P. Brown, Director of ESE Policy and Procedures in 
the Orlando School District in Orlando, Florida, testified to 
the Subcommittee on Education Reform that the Act should not 
include short-term objectives due to the requirements of the No 
Child Left Behind Act.

          With the new mandates of the No Child Left Behind 
        Act, there is a heightened awareness of standards for 
        all students. Coupling that with the IDEA's existing 
        mandate for participation in the general curriculum for 
        students with disabilities, annual goals based on the 
        state's standards for achievement will offer a clear 
        correlation for instruction and transition beyond the 
        school years. The current requirement for short-term 
        objectives dictates the length of the IEP. Parents 
        appear more comfortable with short-term objectives 
        because they are easy to understand. Annual goals can 
        serve the same purpose and provide more flexibility for 
        learning.

    The Committee agrees with this sentiment and as the 
reporting requirements from the No Child Left Behind Act come 
in to effect, the Committee feels that other reporting 
requirements should be replaced. The bill eliminates the 
requirements for benchmarks or short-term objectives for most 
students with disabilities after the 2005-2006 school year, 
which is when the full breadth of requirements under the No 
Child Left Behind Act are implemented.
    However, the Committee is aware that these reporting 
requirements may not be entirely sufficient for a small group 
of children with disabilities, those with significant cognitive 
disabilities that will be unable to effectively participate in 
regular assessments with appropriate accommodations or even 
alternative assessments aligned to grade level standards. For a 
small proportion of the population of children with 
disabilities, some children will take alternate assessments 
aligned to alternate standards. For these children, the 
Committee feels that benchmarks or short-term objectives may 
still be appropriate, and the bill requires these elements to 
be included in IEPs for these children even after the 2005-2006 
school year.
            Related services
    The Committee is very concerned about the appropriateness 
of some of the activities that local educational agencies have 
been required to provide through the provision of related 
services. The Committee reminds local educational agencies that 
related services are required to assist a child with a 
disability to benefit from special education. Related services 
face the same requirements as do special educational services 
and local educational agencies are reminded that there is not a 
requirement to provide every possible related service, but they 
must provide those services that are appropriate. Local 
educational agencies are able to use their discretion to 
determine whether a requested service will actually enable the 
child to benefit from special education. To help local 
educational agencies determine what related services are 
appropriate to be provided at public expense, the bill 
encourages the IEP Team to include related services that have 
been peer-reviewed, to the extent practicable, to determine 
whether the service is beneficial and related to the special 
education services. The Committee also encourages the 
Department to focus its research efforts to help expand the 
level of research on related services to ensure that all 
appropriate related services have a solid foundation of 
research and peer-review.
            Required elements of the IEP
    The bill also establishes a rule of construction stating 
that nothing beyond what is explicitly included in section 614 
is required in a child's IEP. This provision is intended to 
indicate to States and local educational agencies that these 
requirements are all that is required for an IEP to comply with 
this Act. While States and local educational agencies may add 
their own additional requirements, such requirements should be 
identified as State- or locally-mandated.
            Transition from Part C to section 619
    The Committee is concerned about the transition of some 
children from the Part C program for infants and toddlers with 
disabilities to the section 619 program for children aged three 
through five. The Part C program requires that an 
Individualized Family Service Program (IFSP) be developed to 
lay out the plan of services and supports for the child and 
their family under that program. When a child turns three years 
old, he or she is eligible to be served under the Part B, 
section 619 preschool program and the local educational agency 
is required to develop an IEP for the child. The bill 
encourages the local educational agency to consider the 
elements of the IFSP that continue to be relevant for the 
child, and are appropriate to be included in the IEP for the 
child. This change is not intended to obligate local 
educational agencies to provide services that are not required 
under Part B of the Act, but it does encourage the 
localeducational agency to continue relevant services in a manner that 
will help ease the transition for the child from one program to 
another.
            Flexibility for parents in the IEP
    One of the top goals for the Committee is to reduce the 
unnecessary complications and processes involved in the IEP in 
order to give parents greater control over the IEP and to make 
the process more efficient and more effective for children, 
their parents, and teachers. A key change in the bill is to 
allow parents, along with the local educational agency, to 
excuse the attendance of any IEP Team member. Allowing the 
parent and the local educational agency to determine which 
members of the IEP Team are needed for any given IEP Team 
meeting empowers parents to make important decisions about 
their child's education, and allows local educational agencies 
to better utilize their personnel who are not needed for a 
particular meeting. If the parent and the local educational 
agency agree to this action, then the individual that has been 
excused is required to submit their comments prior to the IEP 
Team meeting in order for their input to be considered during 
that meeting.
    Another significant change in the bill is to give greater 
flexibility to parents to allow the parent and the local 
educational agency to make changes or amendments to an IEP 
without reconvening the entire IEP Team. The IEP is a 
management tool for the parent to ensure that the child is 
receiving needed special education and related services. If the 
parent and the local educational agency mutually agree to amend 
the IEP without reconvening the entire IEP Team, they should be 
allowed to do so. The Committee understands that it is often 
difficult to convene the entire IEP Team, and that in some 
circumstances the IEP may need a simple change to benefit the 
child. Currently local educational agencies feel constrained 
from making these simple changes because they are concerned 
that if they do not follow the clear process for amending the 
IEP, including reconvening the IEP Team, then some parents 
could later complain that the rights of their child had been 
violated. The bill gives this flexibility to parents to request 
amendments to the IEP and the authority to the local 
educational agency to accept amendments without fear of future 
litigation. However, if the parent and the local educational 
agency choose to reconvene the entire team they continue to 
have the right to do so.
    In addition, the Committee believes the IEP Team should 
consider including a bilingual or English as a second language 
teacher in IEP Team meetings as appropriate, based on the 
individual child's needs to address the special language 
development needs of a limited English proficient child with 
disabilities.
            Multi-year IEP
    Many parents, teachers, and school district officials have 
asked for greater flexibility in dealing with the paperwork 
associated with the Act. Mr. Gregory J. Lock, principal of the 
Oak View Elementary School in Fairfax, VA, testified to the 
Subcommittee on Education Reform that the Act should lengthen 
``the timeframe of the IEP from the current requirement for an 
annual formal rewrite. The formal process would be retained for 
a child's major transition points, but the new approach would 
allow for a more collaborative process for ongoing review of 
the student's progress.''
    The Committee is very interested in reducing the paperwork 
burden on parents and teachers. While the Committee strongly 
supports the annual IEP and remains committed to the fact that 
all children have the right to an annual IEP, the Committee has 
heard from parents and teachers that would like to have the 
opportunity to voluntarily choose to develop a multi-year IEP 
for their child (to a maximum of 3 years). The Committee notes 
that all of the requirements for the development of the annual 
IEP apply to the multi-year IEP. The multi-year IEP will 
continue to have an annual review process, where the entire IEP 
Team sits down to discuss the IEP and the child's progress. The 
parent can drop out of the multi-year IEP at any time and 
return to an annual IEP.
    The multi-year IEP is an entirely voluntary program. The 
local educational agency has the option to offer the multi-year 
IEP to a parent. The parent then has the option to choose to 
develop a multi-year IEP for the child. It is clearly the 
intent of the Committee that the parent must voluntarily choose 
to enter into a multi-year IEP. The Committee has heard from 
many parents who would like to have this ability to engage the 
school district in long term planning for their child. The 
multi-year IEP allows parents to look ahead, to make sure that 
the proper foundation is being laid for their child's 
education, instead of focusing on where their child will be at 
the end of just one year. This option serves as a mechanism to 
shift the focus from the short-term process to the long-term 
achievement of the child with a disability.
            Use of technology
    The bill also makes clear that parents and school districts 
may use modern technology such as computer programs, 
teleconferencing, and video conferencing when creating an IEP. 
Often parents or other IEP Team members cannot attend in person 
the entire IEP Team meeting. This option will allow all members 
to participate in the meeting in a way that is constructive. 
The Committee also hopes that this will enable greater 
participation of other agencies that have a role in the 
development of the IEP, particularly agencies involved in 
transition planning for children about to graduate or age out 
of the school system. The Committee recognizes the significance 
of a good transition plan for children, and hopes that this 
change will allow agencies to work effectively together to 
maximize their participation in the development of the IEP.
            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, 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.

Section 205. Procedural safeguards

    Section 615. Procedural Safeguards.
    The procedural safeguards in the Act have historically 
provided the foundation for ensuring access to a free 
appropriate public education for children with disabilities. 
The Committee has added clarifications to the procedural 
safeguard provisions to facilitate conflict resolution, 
describe how schools may discipline children with disabilities, 
and ensure that due process is useful for all parents and 
schools. The reauthorization will allow for more productive and 
less hostile relations between parents and schools to ensure 
that the focus of the Act remains on educating children with 
disabilities.
    The bill retains the provisions concerning the opportunity 
to use, and the administrative procedures associated with, an 
impartial due process hearing. The bill simplifies the process 
of delivering, and the content of, notices to parents about 
their child's rights. The Committee hopes that these provisions 
will provide parents more user-friendly information that they 
can understand without burdening them or the local educational 
agency with repetitive and unnecessary distribution of these 
notices.
            Homeless children with disabilities
    The bill clarifies that when a complaint requires the 
address of the residence of the child, in the case of a 
homeless child or youth, the complaint may list available 
contact information of the child. This change is intended to 
ensure that homeless children are not disenfranchised from the 
due process proceedings.
            Mediation and voluntary binding arbitration
    In the 1997 reauthorization of this Act, the Congress added 
the opportunity for parents and local educational agencies to 
mediate their disagreements. The opportunity for mediation was 
intended to encourage early resolution of problems whenever 
possible. However, the bill required that a State's mediation 
system not be used to delay or deny a parent's right to due 
process. At that time, States that offered mediation reduced 
litigation and parents and schools resolved their differences 
amicably, making decisions with the child's best interest in 
mind. Since 1997, mediation under the Act has resulted in a 
significant reduction in litigation and helped in restoring the 
trust between parents and school personnel. Although hearing 
requests increased from about 9,200 in 1997 to over 11,000 in 
2000, the number of requests actually going to hearings fell 
from about 3,400 in 1997 to just over 3,000 in 2000.
    This bill builds upon the 1997 improvements by requiring 
States to establish and maintain a voluntary binding 
arbitration system. First, H.R. 1350 encourages the use of 
mediation as early as possible. Current law only allows the 
mediation of disputes once a formal complaint has been filed. 
This bill allows parents and local educational agencies to 
choose to mediate disputes at any time. For example, if the 
parent and the local educational agency are having difficulty 
in agreeing on the number of hours of physical therapy or the 
least restrictive placement for the child, they could agree to 
mediate their differences. Such a choice to mediate does not 
foreclose any procedural avenues; however it does speed the 
process to a resolution so that the child will be provided the 
appropriate services in the most timely manner.
    Given the interest in resolving disputes through non-
litigation means, it is expected that this will also assist in 
reducing the litigation burden and continue to restore the 
focus on educating children with disabilities. The willingness 
of parents to enter the mediation system indicates that some 
parents are hungry for ways to resolve disputes so that their 
child gets the necessary services in a more timely manner than 
can be achieved through traditional litigation. Therefore, the 
second change is the addition of voluntary binding arbitration 
that allows those parents, along with the local educational 
agency, to come to a final resolution without a due process 
hearing.
    A voluntary binding arbitration system already operates in 
most States for numerous other claims ranging from personal 
disputes to business disputes to class action litigation. These 
systems allow the expeditious and final resolution of claims in 
many areas and should be allowed to include claims under the 
IDEA. With such an available option, local educational agencies 
and parents can mutually agree to avoid the lengthy and 
expensive litigation inherent to the Act. This alternative 
dispute resolution option can serve to restore the trust 
between the school personnel and the parent, allowing them to 
work cooperatively to find the best education placement and 
services for the child.
    Importantly, this system is truly voluntary for both the 
parent and the local educational agency to choose. If both 
parties do not choose voluntary binding arbitration, then the 
complaint goes through the regular due process procedure. 
Finally, all arbitrations must be conducted by qualified and 
impartial arbitrators, ensuring that all parties have a fair 
and unbiased consideration of each situation. It is the 
Committee's strong preference that the resolution session, 
mediation and voluntary binding arbitration become the typical 
methods for resolving disputes under the Act.
            Resolution session
    The Committee is clearly concerned about the level of 
communication that occurs between a parent and the local 
educational agency when there is a dispute about the services 
the child is receiving. The Committee feels that parents and 
local educational agency officials, in most cases, should be 
able to easily resolve issues when they are brought to the 
attention of appropriate individuals within the school system. 
The bill creates a new concept of the resolution session that 
is intended to improve the communication between parents and 
school officials, and to help foster greater efforts to resolve 
disputes in a timely manner so that the child's interests are 
best served.
    Once a parent has filed a clear and specific complaint, the 
school district has 15 days from the receipt of such complaint 
to convene a meeting with the parent. At that meeting the 
parent and the school officials should work together to 
determine the nature of the complaint and to work 
collaboratively to attempt to resolve the complaint. The local 
educational agency then has up until the 30th day from the 
receipt of the complaint to address the parent's complaint. 
Ifthe local educational agency has not resolved the complaint, then the 
due process hearing can occur.
    The Committee feels that it is important to clarify that 
the resolution session procedure does not, in any way, infringe 
on other timelines regarding the due process hearing and that 
those timelines would run concurrently with the timeline 
outlined for the resolution session. The resolution session is 
not intended to delay the ability of a parent to access a due 
process hearing.
    The bill is also clear that if the parent and the local 
educational agency mutually agree that the meeting does not 
need to occur, the resolution session meeting does not need to 
take place. However, unless such an agreement is reached, the 
failure of the party bringing the complaint to participate in 
the meeting will delay the timeline for convening a due process 
hearing until the meeting is held.
            Clear and specific notice of complaint
    In 1997, the reauthorization included changes designed to 
ensure that parents accurately notified the local educational 
agency of the issues they were raising in their complaint. 
Unfortunately, regulations issued in 1999 by the Department 
directly contradicted this requirement by stating that failure 
to comply with the notice requirement under this Act could not 
delay or deny the parent the right to a due process hearing. 
The language requiring a parent to provide a clear and specific 
complaint to the local educational agency is essential to 
making the complaint process work in a fair and equitable 
manner. Local educational agency officials need to know, with 
clarity and specificity, what the problem is that concerns the 
parent so they can try to remedy the problem.
    Often, local educational agency officials may be unaware 
that there is a problem until a parent has filed a complaint. 
Currently, a complaint may be vague and unclear. If the local 
educational agency officials do not know specifically what the 
issue is, they cannot remedy the problem. If the local 
educational agency receives a clear and specific complaint, 
school personnel with decision-making ability may be able to 
remedy the problem with greater speed than school level 
officials. This may also reduce some of the unnecessary 
litigation, since a parent will have to actually identify a 
clear and specific problem before they can file a complaint. If 
a parent cannot identify a specific problem, then the parent 
should ask to reconvene the IEP Team and discuss what their 
concerns are rather than filing a complaint to see if a hearing 
officer can determine the problem.
    Through this bill, the Committee reiterates in clear terms 
that a due process hearing cannot occur until the parent has 
disclosed all of the issues that are the basis of their 
complaint with specificity. Further, this bill requires the 
hearing officer to bar the introduction of new issues by a 
parent that have not been disclosed to the local educational 
agency in the complaint or at the meeting during the resolution 
session. If a parent has new issues they need to disclose past 
the current five-day time limit prior to a hearing, the parent 
must amend the complaint, get the consent of the local 
educational agency to introduce new issues without prior 
notice, or seek a continuance of the hearing until such time as 
all issues have been disclosed.
            Statue of limitations
    The Act currently has no statute of limitations and leaves 
local educational agencies open to litigation for the entire 
length of time a child is in school, whether or not the child 
has been identified as a child with a disability. Local 
educational agencies are often surprised by claims from parents 
involving issues that occurred in an elementary school program 
when the child may currently be a high school student. Such an 
unreasonably long threat of litigation hanging over a local 
educational agency forces them to document every step they take 
with every child, even if the parents agree with the action, 
because they could later change their mind and sue. The fear of 
far-removed litigation raises the tension level between the 
school and the parent. Prolonged litigation breeds an attitude 
of distrust between the parents and school personnel and has 
the effect of requiring school personnel to document 
conversations, rather than working cooperatively to find the 
best education placement and services for the child.
    The bill includes a statute of limitations of one year from 
the date of the violation. This change will align the Act with 
other Federal statutes that have explicit statutes of 
limitations (e.g., civil rights claims, Federal tort claims, 
Social Security) and allow for timely resolution of issues. 
Parents, or their advocates, often wait to bring actions until 
many years after discovering a concern. The child's education 
is usually jeopardized by this strategy. A statue of 
limitations alleviates unnecessary claims for compensatory 
education and allows local educational agencies to limit 
unnecessary paperwork designed to protect them from protracted, 
long-term litigation.
            Attorney's fees
    The Committee remains concerned about excessive litigation 
under the Act and the burden that local educational agencies 
face in paying fees to attorneys. The bill includes language 
that requires each Governor (or their designee) to set the rate 
of attorney's fees that may be awarded for actions under this 
Act that arise in their State. The fees set by a Governor may 
take into account the geographic differences of a state, such 
as rural versus urban areas, and may be a range of fees that 
take those geographic differences into account. The determined 
rates must be made available to the public each year. The 
Committee encourages the States to make the established rates 
public prior to the beginning of the school year. The Committee 
believes that the addition of this provision will help restore 
balance to the proceedings under this Act and continue to 
provide early opportunities for schools and parents to foster 
more cooperative partnerships and resolve problems.
            Discipline
    The Committee notes that there is a heightened awareness 
for the need to ensure that all students are safe when they are 
at school. In the bill, the discipline provisions are modified 
to ensure that every student can learn in a safe school that 
supports an appropriate educational environment. These changes 
give school personnel the necessary authority to protect the 
safety and well-being of all students in the school. These 
improved student discipline provisions clarify what is expected 
of all students, including children with disabilities, and the 
consequences of not meeting those expectations.
    Over the past few years, the Committee has attempted 
several times to improve upon the Act's discipline system. In 
the 106th Congress, the Committee passed amendments to the 
Act's discipline provisions in H.R. 4141, the Education OPTIONS 
Act, and the House passed amendments to the Act's discipline 
provisions in H.R. 1501, the juvenile justice reauthorization 
bill. More recently, in H.R. 1 of the 107th Congress, the No 
Child Left Behind Act, the House passed discipline reforms 
similar to those of the 106th Congress.
    The bill continues this strong commitment to reforming the 
discipline provisions of the Act. The bill includes very 
worthwhile and positive improvements. The reform of the 
duplicative discipline system under the Act provides for a 
uniform and fair way of disciplining children with disabilities 
in line with discipline procedures for children without 
disabilities. It also ensures that children with disabilities 
continue to receive educational services if they are 
disciplined beyond the 10 days allowed under current law.
    The Committee has heard from teachers and school 
administrators that the duel discipline system of current law 
results in an inability to discipline students appropriately 
given the child's misbehavior. Members also hear that current 
law ties the hands of school personnel in responding quickly 
and effectively to very serious student behavior problems.
    Dr. Sally Arthur, Director of Educational Support Services 
in the Humble Independent School District in Humble, Texas, 
testified to the Subcommittee on Education Reform that:

          IDEA 1997 and the resulting federal regulations 
        created a logistical problem in relation to school 
        discipline. The current regulations diminish the 
        capacity to follow the principles of PBIS [positive 
        behavior interventions and supports] by establishing 
        variable rather than clear guidelines of behavioral 
        expectations to students and parents. Loopholes are 
        available and students can learn to misbehave from the 
        lack of consistency. Further, the possibility of human 
        error is monumental, reducing the ability of campus 
        administrators to ensure compliance to the regulations. 
        Campus administrators are expected to follow a maze of 
        regulations and make decisions in relation to their 
        ability to consequent a student's inappropriate 
        behaviors. This maze of regulations has numerous 
        decision points, all potential vehicles for litigation. 
        This inequitable system creates opportunities for 
        exploitation of the system. Further, it assumes that 
        all individuals are capable of understanding and 
        applying these legal complexities. After five years of 
        studying it, I am not certain I could make the correct 
        decision with limited time to reflect.

    An examination of current law illustrates these problems. 
The dual system created by current law becomes apparent when 
the behavior of a child with a disability would result in an 
extended punishment or when the current ten-day flexibility has 
been exhausted. While a serious fighting incident could result 
in a suspension beyond ten days for a non-disabled child, the 
child with a disability does not face the same consequences. 
Under current law, school personnel have discretion to remove a 
child with a disability from the child's current placement to 
an interim alternative placement only for situations involving 
weapons and drugs. School personnel must undertake the 
confusing manifestation determination process in order to 
attempt to apply the same consequences for misbehavior as would 
be applied to a non-disabled child in discipline situations 
beyond weapons and drugs. Educators consistently comment that 
the manifestation determination typically results in a finding 
that the behavior is somehow remotely related to the child's 
disability, which is not surprising considering the statute is 
written to presume that the behavior is related to the 
disability. The reality has become an inherently subjective 
process that is purposefully used to avoid discipline for a 
child with a disability.
    The discipline improvements in the bill provide for a 
uniform school discipline code and substantially reduce the 
confusion and complexity of the current system. Specifically, 
the bill maintains the current law provision allowing school 
personnel to suspend a child with a disability for up to 10 
days with no educational services provided; maintains the 
current law requirement that when a child is disciplined beyond 
the above 10 days, schools are required to provide educational 
services to students with disabilities; provides for a uniform 
system of discipline in schools by allowing school personnel 
discretion over all behaviors (not limited to weapons and drugs 
as in current law), while allowing school personnel to make 
case-by-case disciplinary decisions; and allows school 
personnel to place a child with a disability that violates the 
school code of conduct policy in an alternative educational 
setting for up to 45 school days, unless State law provides for 
a longer term.
    Under the bill, where State law has longer consequences 
(i.e., longer than 45 days) for specific incidents (typically 
incidents involving weapons, drugs, aggravated assault, or 
pulling a fire alarm), State law would be followed, though for 
children with disabilities educational services would continue.
    Most importantly, the bill requires school personnel to 
treat all children in the same manner. If a violation results 
in a 3 day punishment for a child without a disability, the 
school could discipline the child with a disability for up to 3 
days, while continuing to provide educational services. The 
alternate setting does not have to be outside the school 
setting--in-school suspensions are common for non-disabled 
children. Additionally, school personnel may consider the 
circumstances of the situation when making discipline 
decisions.
    The bill also removes the cumbersome manifestation 
determination provisions since local educational agencies are 
required to continue to provide educational services to enable 
the child to continue to make progress toward the goals in the 
IEP. However, the bill also retains the right of parents to 
appeal discipline related decisions, through the IEP Team as 
well as through due process provisions.
    These improvements are geared toward finding a balance 
among several competing goals. This balance recognizes the need 
of all students in the school to receive a quality education in 
a safe environment. It allows educators to maintain an 
environment in the classroom that supports all students' 
ability to learn.
    Secondly, it balances the need to set clear expectations of 
students, while allowing for consideration of individual 
circumstances and for the continuation of educational services. 
It provides for a uniform and fair way of disciplining children 
with disabilities in line with discipline expectations for 
children without disabilities. The language states that school 
personnel may order a change in placement for a child with a 
disability who violates the student code of conduct policy to 
the same extent as would be applied to children without 
disabilities.The Committee feels that it is important to 
clarify that the bill does not require or allow an automatic 45-day 
suspension for any infraction. It provides that if the school policy on 
fighting in the school hallway results in a 5-day in-school suspension, 
then this 5-day suspension would be applied equally to a child with a 
disability.
    The provision allowing a change of placement ordered by 
school personnel for not more than 10 days continues as current 
law. However, the bill ensures that children with disabilities 
continue to receive educational services to continue to make 
progress towards the goals set out in the child's IEP if they 
are disciplined beyond the 10 days allowed under current law.
    Finally, the bill balances the need to ensure that parents 
have the ability to appeal both placement and punishment 
decisions. The parent may appeal under the discipline 
provisions or may appeal under the general due process 
provisions. The parent can always request an IEP Team meeting 
to revise the child's IEP and educational placement under that 
IEP. If a parent believes the child with a disability should 
not have been punished in the first place, the parent continues 
to have remedies under the law to address the situation.
    One of the explicit goals of the discipline improvements 
within the bill is to ensure classroom safety. The Committee 
often hears from classroom teachers and school principals that 
Federal law ties their hands in responding quickly and 
effectively to very serious student behavior problems and 
effective management of their classrooms. By allowing school 
personnel to respond to all situations in a classroom, school 
personnel have the complete ability to look out for the safety 
of all students. The discipline provisions in the bill gives 
school personnel the ability to create safe classrooms.
    Most importantly, the bill's discipline provision will 
result in an improved education for children with disabilities. 
By removing the Federal micromanagement of schools, the bill 
allows teachers to create an environment that focuses on 
student academic achievement. The discipline provision creates 
a uniform standard for student behavior and sets clear 
expectations of students. These improvements return the focus 
of teachers and students to the learning that is happening in 
the classroom, which will improve academic achievement.
    Additionally, the bill encourages schools to take advantage 
of alternative education programs for children with 
disabilities. Many school systems have programs set up to meet 
student behavior management needs, and the Committee encourages 
school personnel to let students with disabilities who have 
discipline problems take advantage of these programs. However, 
the bill does not mandate the creation of an alternative 
education program. It simply requires local educational 
agencies to continue to provide educational services as 
required under current law.
    These improvements are widely supported in the education 
community. The American Federation of Teachers commented that 
the bill ``makes important changes to provisions outlining how 
students with disabilities may be disciplined. The AFT supports 
the additional flexibility provided by these changes to assist 
schools in maintaining a safe and orderly environment.'' The 
National Association of Elementary School Principals wrote that 
the ``elimination of the dual discipline system is another goal 
of NAESP members, according to our survey, and we have read 
with interest the language in H.R. 1350 that addresses this 
issue. We appreciate the language regarding violation of a code 
of student conduct policy and the elimination of the 
requirement for manifestation hearing and believe this will 
help to simplify the process that school officials undergo to 
create and maintain safe learning environments for all 
students.''

Section 206. Monitoring, enforcement, withholding, and judicial review

    Section 616. Monitoring, Enforcement, Withholding, and 
Judicial Review.
    Lawrence C. Gloeckler, Deputy Commissioner of Vocational 
and Educational Services for Individuals with Disabilities at 
the New York State Education Department, testified before the 
Subcommittee on Education Reform that monitoring of the Act 
``must be allowed to focus on the mechanisms for improving 
outcomes for students, rather than devoting such extensive time 
and resources to the less significant but numerous process 
requirements.''
    The bill would add a new section 616(a) through (d) 
establishing a monitoring and enforcement section under the 
Act. The Committee is very concerned about the effectiveness of 
monitoring and enforcement under the Act. The President's 
Commission on Excellence in Special Education reported that the 
Department has often focused its monitoring efforts too much on 
process compliance and has paid little to no attention to 
monitoring for results. The Committee is encouraged by the 
Department's recent efforts in improving the monitoring of the 
Act, but recognizes that more progress needs to be made.
            Required monitoring elements
    The bill includes changes that would, for the first time, 
incorporate into the Act the important role of the Department 
in monitoring implementation of the Act, particularly with 
respect to improving academic achievement results for children 
with disabilities who are served under Parts B and C of the 
Act. Section 616(b) requires the Secretary to look at academic 
achievement results of children with disabilities on regular 
and alternate assessments, as well as graduation and dropout 
rates for children with disabilities. The Committee has 
identified these items as required indicators as they are 
crucial for evaluating the success of these programs.
            Permissive monitoring elements
    The Secretary may add other indicators, including those 
priorities identified as permissive indicators, as other data 
on improving results for children with disabilities become 
available, data quality improves, and the Secretary is 
confident that data can be used in a way that does not create 
unintended negative consequences for children with 
disabilities. For example, as appropriate measures of provision 
of appropriate educational services in the least restrictive 
environment that are sensitive to whether children with 
disabilities are receiving appropriate services in their 
various environments become available, the Secretary may add an 
indicator relative to that issue. As appropriate measures of 
program success for the Part C program are developed and data 
collected, the Secretary may add indicators specific to that 
program. TheCommittee expects that the Secretary will focus 
monitoring efforts on those areas identified in the lists of indicators 
and priorities identified in 616(b) and such other priorities as the 
Secretary may establish under 616(c).
            Other monitoring efforts
    The Committee recognizes that certain elements are critical 
to the sound functioning of the Act. These elements include 
placing children with disabilities in the least restrictive 
environment, an effective child find system, and effective 
State monitoring of the Act. However, the Committee is 
concerned that it is difficult to quantify results for these 
important elements without losing sight of the importance to 
make appropriate decisions for individual children. The 
Committee does not want the monitoring system established in 
the bill to penalize appropriate decisions made for the 
individual child that, when aggregated up to the local or State 
level appear to be inappropriate. However, the Committee 
expects that the Department will continue to monitor in these 
areas, and take appropriate enforcement actions under existing 
authorities to ensure that States comply with requirements 
regarding these important elements of the Act.
            Compliance measures
    The new section 616(d) would provide for compliance 
activities focused on progress in improving educational results 
for children with disabilities, and substantial compliance with 
the requirements of the Act. If the Secretary determines that a 
State is not making satisfactory progress in improving 
educational results for children with disabilities, the 
Secretary is required to take one or more of the specific 
actions listed in subsection (d)(2), which can include 
withholding between 20 and 50 percent of the total amount that 
the State can retain under 611(e). In addition, if the 
Secretary determines that a State is not in substantial 
compliance with any provision of the Act, the Secretary is 
required to take one or more of the specific actions listed in 
subsection (d)(3). In addition to enforcement actions available 
under current law, the list in subsection (d)(3) adds two new 
tools--the ability to suspend payments and to suspend a 
recipient's authority to obligate funds if the recipient is 
subject to a withholding action, comparable to authority 
available to the Secretary under other education funding 
programs in section 455(d) of the General Education Provisions 
Act; and new authority providing that if the Secretary has 
imposed special conditions on a recipient for three consecutive 
years and at the end of the third year the State has not 
demonstrated to the satisfaction of the Secretary that the 
violation has been corrected, the Secretary is required to take 
additional enforcement actions, choosing among a compliance 
agreement, a recovery of funds action or a withholding action.

Section 207. Administration

    Section 617. Administration.
    Section 617 includes new language designed to ensure that 
decisions made regarding curriculum, instructional content, or 
programs of instruction are made at the local level. Decisions 
made regarding school curricula have been and continue to be 
local decisions. The Federal government must take care not to 
override State and local decisions or use its influence to 
direct or control decisions best made at the local level. 
Specifically, nothing in this Act may be construed to authorize 
an officer or employee of the Federal Government to mandate, 
direct, or control a State, local educational agency, or 
school's specific instructional content, curriculum, or program 
of instruction.
            Paperwork reduction pilot
    Reducing the paperwork burden of the Act is one of the 
Committee's top priorities for the reauthorization of the Act. 
Studies from the Department show that the Nation is facing a 
significant shortage of special education teachers, and many 
special educators leaving the field cite the burden of 
unnecessary paperwork as one of the primary reasons for their 
departure. The bill includes a pilot program to allow States to 
demonstrate innovative and creative measures to reduce the 
paperwork burden. This program is not meant to decrease any of 
the rights children have under the Act, but is intended to 
allow those States who choose to participate to think 
creatively and innovatively about how to best meet the demands 
of the Act while reducing the paperwork burden so school 
personnel can focus on educating children with disabilities. 
The bill also includes a rigorous reporting requirement to 
ensure that the Secretary reports to Congress about the success 
of this program in reducing unnecessary paperwork while 
preserving the rights of children served under the Act.
            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. The bill requires 
the Secretary to develop model forms for the IEP, 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.

Section 208. Program information

    Section 618. Program Information.
    The bill retains the important data collection requirements 
under section 618, and adds new requirements relating to 
discipline actions within States to better inform Congress 
about the actions taken by States regarding disciplining 
children with disabilities.
            Overidentification
    Due to the Committee's desire to see the problems of 
overidentification of minority children strongly addressed, the 
bill maintains current requirements to collect data to 
determine if significant disproportionality based on race is 
occurring. If a State does make such a determination, the State 
is required to direct the local educational agency to use its 
authority under section 613 to implement a system of 
comprehensive coordinated prereferral services toserve children 
in the district, particularly children in those groups that are 
overidentified, to remedy the problem.
    The Committee feels very strongly about the importance of 
this new provision and encourages States to take the necessary 
steps to work with local educational agencies to remedy these 
problems. The referral and identification processes under this 
Act should be clear, consistent, and not subject to abuse. 
Children, particularly minority children, should not be 
referred, or determined to be eligible for special education, 
due to their race. The Committee is very concerned about data 
showing that African Americans are nearly three times as likely 
to be identified as mentally retarded as their peers and nearly 
twice as likely to be labeled emotionally disturbed. There is 
no scientific data or studies available to support these rates 
of identification, and this data clearly demonstrates that a 
problem exists. This provision, and other provisions throughout 
the bill, is clearly aimed at addressing the problem.
    Section 209. Preschool grants.
    Section 619. Preschool Grants
    The bill makes minor technical and conforming changes to 
the section 619 Preschool Grants program.

           TITLE III--INFANTS AND TODDLERS WITH DISABILITIES

Section 301. Sections 631 through 638 of the Individuals with 
        Disabilities Education Act

Section 302. Sections 641 through 645 of the Individuals with 
        Disabilities Education Act

    In order for children to succeed in school, they need 
supportive environments that enhance social and cognitive 
development before they enter kindergarten. The goal of Part C 
is to provide children with disabilities with a solid 
foundation that will prepare them for success in the public 
school system and later in life. There are myriad challenges in 
meeting the needs of young children and their families, and the 
challenges are often more abundant and complex for children who 
have been diagnosed with a disability. For all children, the 
development of pre-literacy, numeracy and language skills is 
critical. The bill addresses the importance of ensuring school 
readiness by requiring that a child's Individualized Family 
Service Plan include goals for the development of pre-literacy 
and language skills and a plan for the appropriate transition 
of services for the child's entrance into school.
            Expanded Part C option
    The bill amends Part C to allow States to expand the 
options available to parents of the youngest children with 
disabilities. States will now be allowed to create a program 
where parents of children aging into the preschool program 
(which serves three through five year olds) can choose to 
remain in the Part C program with their current providers 
(including private providers). Each State would have to choose 
to make such a change and choose to continue serving this age 
range under the Part C program. This change will lessen 
transition problems for these young children who have been 
forced to move from a family-focused program to a school-based 
program at age three. In choosing this option, States must 
notify parents about the differences between programs operated 
under Part C and Part B and ensure that the rights and 
responsibilities under Part C still apply. Recognizing the need 
for an educational environment for three through five year 
olds, this bill adds an educational component that promotes 
school readiness and incorporates scientifically based pre-
literacy, language, and numeracy skills for those three through 
five year olds that continue under Part C. Offering States this 
option will allow parents to determine when their child is 
ready to transition to the Part B preschool program, rather 
than having that determination made for them by the Act.
            Identification processes
    The early years of a child's development lay the groundwork 
for future years and are critical years for children with 
disabilities and their families. Research shows that early 
identification and intervention can have a significant positive 
impact on children with disabilities and, in many cases, may 
help prevent the need for more costly services once a child 
reaches school age. Children with diagnosed disabilities who 
receive early support are more likely to attain greater levels 
of development.
    The number of infants and toddlers receiving services has 
increased dramatically in recent years. This increase is 
largely a result of additional attention given to early 
identification and intervention services provided to children 
who are disabled or developmentally delayed.
    The bill makes modest, yet important modifications to Part 
C. Provisions in the bill will help to ensure a more seamless 
transition of services from birth through school age, to 
enhance the coordination of services provided to young children 
with disabilities, and to ensure the availability of a 
comprehensive network of highly trained personnel to meet the 
needs of children with disabilities and their families.
    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. Infants and toddlers who 
have been maltreated may also have significantly elevated 
proportions of insecure attachments, elevated rates of 
aggression, difficulty in forming close relationships and 
managing emotions, heightened anxiety, irritability, excessive 
crying, and sleep disruption.
    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. 
Since studies show that over half of the children in foster 
care exhibit developmental delay when screened, there is a 
strong need for improving collaboration between the child 
welfare and Part C systems in order to provide early 
intervention services to those children.
    To address this need, the bill requires States to develop 
policies to require referrals of all children under age 3 in a 
substantiated case of abuse or neglect to the Part C system for 
screening, and if appropriate, early intervention services. The 
bill also requires States to requirereferrals for all children 
who are born and identified with fetal alcohol effects, fetal alcohol 
syndrome, neonatal intoxication, or neonatal physical or neurological 
harm resulting from prenatal drug exposure. These changes provide an 
important enhancement of the State child find system and will help 
States identify infants and toddler who are in need of Part C services.
            State interagency coordination
    Many agencies and programs are involved in the delivery of 
Part C services, and the service system will function best and 
serve children better with strong linkages and collaboration 
between agencies and programs. The bill improves the ability of 
States to strengthen their collaborative efforts. The bill adds 
representatives from the State child welfare agency and the 
mental health agency to the State Interagency Coordinating 
Council. The current service system fails to address 
significant unmet mental health needs in young children because 
it lacks strong linkages with other systems where children at 
high risk for developmental delays are found, but where there 
is limited professional expertise on the mental health needs of 
infants and toddlers. It is the Committee's intent that 
inclusion of representatives from the child welfare and mental 
health agencies will help address this need.
    In addition, the Committee believes improved coordination 
is one step toward improved service delivery of Part C services 
for children. Therefore, the bill requires States to provide a 
description of their efforts to promote collaboration between 
Early Head Start programs and child-care services under Part C 
of this Act.
            Federal interagency coordinating committee
    The bill removes the requirement that the Department 
establish a Federal Interagency Coordinating Committee. This 
entity has not provided the benefit that Congress intended when 
the entity was created, and has been an impediment to 
developing effective policy coordination at the Federal level.

  TITLE IV--NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH 
                              DISABILITIES

    The discretionary programs under the Act support 
professional development, personnel preparation, research, 
technical assistance, model demonstration, dissemination of 
information, parent training and information centers, and media 
and technology services designed to benefit children with 
disabilities. Although the Department has supported many good 
projects under this section, the Committee is concerned that 
there has not been an effective overall plan to ensure that the 
programs and projects supported under Part D are designed to 
provide the maximum benefit across the nation. The bill 
restructures and reorganizes the activities conducted under 
Part D to improve the coordination of these activities and 
ensures that the impact of these activities is broadly 
disseminated to have a wide-reaching and positive impact on 
States, local educational agencies, teachers, parents, and 
children with disabilities.

Subpart 1--State professional development grants

    The Honorable William Goodling, former Chairman of the 
Education and Workforce Committee, testified to the Education 
and Workforce Committee that ``Teaching children with 
disabilities can be both the most rewarding and the most 
arduous job in teaching. We need professionals who not only 
have the commitment, but the skills in the classroom and with 
parents, to help students succeed.''
    The bill makes significant changes to Subpart 1 to refocus 
the discretionary State grants to professional development 
activities to ensure that regular education teachers, special 
education teachers, principals, school administrators, and 
related services providers receive high quality professional 
development to better serve children with disabilities.
    The bill requires the State educational agency to partner 
with local educational agencies and at least one institution of 
higher education in the State. The State may also choose to 
include other entities or organizations in its partnership 
agreement. The Committee encourages States to develop 
agreements with organizations that can help improve the 
delivery of professional development.
    Under the current program, the application process is 
complex, cumbersome, and inconsistent with developing a clear 
program. The requirements have not helped States develop a 
comprehensive professional development program and have been 
treated by the States as a paperwork exercise. The bill 
significantly simplifies the application requirements and 
requires the States to submit an application that contains a 
clear and concise plan on the efforts that the State will take 
to improve professional development programs within the State. 
The changes also ensure that the professional development 
programs the State implements under this program will deliver 
high quality services. States must undertake all of the 
activities listed in their application, thus eliminating the 
need to write over-arching applications with numerous 
activities that the State has no intention of implementing, but 
are deemed necessary for the application process.
    The bill requires the State to use at least 90 percent of 
the funds under this program to provide direct programs of 
professional development to ensure that the personnel receiving 
the professional development will improve the delivery of 
instruction and other services to students in the classroom. 
The bill allows a State to use up to 10 percent of its funds 
under this program to conduct activities at the State level to 
improve professional development and to improve services for 
school personnel. The allowable activities authorized under 
this program are closely aligned with allowable activities 
under Title II of the Elementary and Secondary Education Act, 
and the Committee encourages States to coordinate activities to 
improve services under both programs.

Subpart 2--Scientifically based research; technical assistance; model 
        demonstration projects; dissemination of information; and 
        personnel preparation programs

    The bill makes significant changes to Subpart 2 to refocus 
the programs that support research, technical assistance, model 
demonstration projects, dissemination of information, and 
personnel preparation programs. The Committee's goal is to 
improve the coordination,development, and delivery of 
information to enhance the ability of States, local educational 
agencies, teachers, and parents to provide services to children with 
disabilities.
            Comprehensive plan
    The bill modifies the requirement for the Department to 
develop a comprehensive plan. The Committee feels that the 
requirements under the current law regarding public 
consultation have been misinterpreted and the Department has 
been too focused on the planning process and not focused enough 
on actually developing a plan. The bill requires the Secretary 
to seek public input, but requires the Secretary to actually 
develop a comprehensive plan within one year of the date of 
enactment of the Act to ensure that there is a comprehensive 
agenda that examines and guides the entire system of services 
supported under this part of the Act. The Committee recognizes 
the importance of the planning process, but also encourages the 
Secretary to develop and implement a final plan.
            Special education research
    Terry Branstad, Chairman of the President's Commission on 
Excellence in Special Education, and former Governor of Iowa, 
testified to the Education and Workforce Committee about the 
Commission's report. In Chairman Branstad's remarks, he 
testified that ``Research on special education needs enhanced 
rigor and the long-term coordination necessary to support the 
needs of children, educators and parents.''
    The bill makes significant changes to the Department's 
activities on research of special education. The bill 
establishes a National Center for Special Education Research 
within the Institute of Education Sciences and authorizes the 
creation of a Commissioner for Special Education Research to 
oversee the Institute's research into special education and 
related services. The bill requires the Commissioner, with the 
advice of the Assistant Secretary for Special Education and 
Rehabilitative Services, to develop a research plan to support 
the activities of the Act and serve the long-term interests of 
the Act.
    The Committee feels that the Department should have one 
unified research arm that takes a broad view of the needs of 
education research, including special education research. This 
move will help ensure that the needs of children with 
disabilities are fully addressed not only within that arm of 
the Institute, but also through all other research functions at 
the Institute. The Committee also intends this move to improve 
the overall quality and rigor of the special education research 
conducted by the Department by holding it to the same standards 
as all other research, and to ensure that the needs of children 
with disabilities are inculcated throughout other research 
programs conducted at the Institute.
            Technical assistance, demonstration, dissemination, and 
                    implementation of research
    The Committee is very concerned about the effectiveness and 
quality of the Department's efforts to provide technical 
assistance to States, local educational agencies, school 
officials, teachers, and parents. The President's Commission on 
Excellence in Special Education reported that:

          Bridging the gap between research and practice will 
        be a continuing challenge. Practices must continue to 
        improve so children, their parents and their teachers 
        have access to effective practices and instructional 
        methods. A disturbing finding by this Commission is 
        that we do not yet know the best methods of research 
        dissemination. We have no research to show which 
        methods prove more effective in reaching consumers.

    The Committee shares these concerns and encourages the 
Department to significantly transform its practices to ensure 
that the Department effectively disseminates research based 
practices to benefit children with disabilities, their parents, 
teachers and schools. The bill continues to recognize the 
importance of technical assistance, demonstration projects, 
dissemination of information, and the implementation of 
scientifically based research. The bill requires the Department 
to support projects that address positive behavior supports; 
assessments and alternate assessments for children with 
disabilities; transitional activities to improve results for 
children with disabilities; and activities designed to improve 
services for children with disabilities. The bill also 
authorizes the Department to support other activities designed 
to improve services for children with disabilities.
            Personnel preparation
    The bill streamlines personnel preparation programs to 
focus on three activities (1) personnel preparation activities 
for regular and special education teachers, related services 
providers, and early intervention services, (2) personnel 
preparation activities for teachers of children with low-
incidence disabilities, and (3) personnel preparation 
activities for leadership preparation.
    The Committee feels that the Department should place a high 
priority on personnel preparation programs that are aligned 
with high standards and the production of personnel that meet 
rigorous State standards. The Committee also encourages the 
Department to support programs designed to improve the 
integration of related services in the special education and 
regular education environment. Assuring that States address 
related services personnel training needs will promote both the 
use of appropriate practices and more effective collaboration 
among special education personnel. The Committee also feels 
that effective and rigorous programs designed top provide high 
quality leadership personnel (i.e., principals and school 
administrators) is an important function of this part of the 
Act, and encourages the Department to ensure that these 
programs are of high quality.
            Assessment of activities under the IDEA
    The bill directs the Secretary to undertake an assessment 
of the activities carried out under the IDEA to determine the 
effectiveness of the Act in achieving its purposes to provide 
timely information on how to implement the Act more 
effectively. The Committee notes that since the last 
reauthorization, the Department has not finalized any elements 
of the assessment, including the required final report that was 
due prior to this reauthorization. The Committee encourages the 
Department to carefully review its plan to conduct an 
assessment and to take note of the reauthorization cycle to 
ensure that useful information is presented to Congress before 
thenext reauthorization takes place to determine the 
effectiveness of the changes to the Act contained in this bill.
            Parent training and information centers
    The bill retains the authority for the Parent Training and 
Information Centers, but modifies their activities to focus on 
the priority of the Act, improved educational results for 
children with disabilities. The Committee is concerned that 
these centers do not have sufficient data to demonstrate their 
effectiveness, and encourages the Department to develop 
rigorous accountability measures to determine the effectiveness 
of individual centers and the program as a whole. The Committee 
strongly supports the Parent Training and Information Centers, 
but wants to ensure that they are providing high quality 
services to all parents. The bill requires the centers to 
explain in the application how they will serve all parents, 
particularly parents of minority, low-income, and limited 
English proficient students. The bill also retains the 
authority for the Community Parent and Resource Centers and 
encourages these centers to collaborate with Parent Training 
and Information Centers to ensure that there is a comprehensive 
system of centers to provide services to all parents.
            Media and technology services
    The bill retains the authority for the Secretary to fund 
projects related to the development, demonstration, and use of 
technology. The bill continues to support video description and 
captioning services of programs but changes the language to 
require a focus on education-based content to be used in the 
classroom. The Committee is encouraged by recent efforts at the 
Department to focus this education program on providing 
educationally relevant material as captioned under this 
program. However, the Committee wishes to ensure that there is 
an adequate supply of accessible materials for use in the 
classroom, and the change in the bill will help address this 
problem.
    The Committee also recognizes the mandate by the 
Telecommunications Act of 1996 requiring that 95 percent of all 
television programs be captioned by January 1, 2006. The use of 
very small businesses to provide video description and 
captioning services is encouraged in order to develop 
additional captioning resources to meet the increased 
captioning requirements mandated by the Federal Communications 
Commission.
    It is the Committee's intent that an eligible entity 
receiving funds under section 674(c)(4), (with respect to the 
provision of free educational materials in accessible media for 
visually impaired and print-disabled students), shall not 
charge students or their families a membership fee or charge 
them fees for education materials at any educational level that 
are produced with funds received under this section. However, 
it is the Committee's intent that the Secretary maintain 
current policy with respect to the ability for such eligible 
entity to continue to charge schools, States, local educational 
agencies and other educational entities participating in the 
programs at any educational level, a membership fee or charge 
them fees for educational materials that are produced with 
Federal funds, as a means to help offset the cost of producing 
and distributing these materials. The Committee further 
clarifies that institutions that are charged membership fees or 
other fees may not pass on these fees or other costs related to 
obtaining educational materials to the aforementioned students 
or their families.
            Conclusion
    H.R. 1350, the Improving Education Results for Children 
with Disabilities Act of 2003, enhances the IDEA by improving 
education results for children with disabilities. The bill is 
centered around the Committee's principles for reform: 
increasing accountability and improving education results for 
students with disabilities; reducing the paperwork burden; 
improving early intervention strategies; reducing the 
overidentification or misidentification of nondisabled 
children, including minority youth; encouraging innovative 
approaches to parental involvement and parental choice; 
supporting general education and special education teachers; 
restoring trust and reducing litigation; ensuring school 
safety; and reforming special education funding. Importantly, 
the bill clarifies the funding stream under the Act by 
establishing a clear path to the 40 percent goal through the 
discretionary appropriations process.
    This bill refocuses the Act on its original intent--the 
education of children with disabilities. By aligning the Act's 
accountability system with the No Child Left Behind Act, the 
Act ensures that children with disabilities have the chance to 
learn and succeed academically. The bill also emphasizes early 
intervention as a means to reduce the overidentification and 
misidentification of children as disabled and placing them in 
special education where they do not belong hinders the academic 
development of these students. In an effort to stem the tide of 
special education teachers leaving the profession out of 
frustration with the overwhelming paperwork burden, the bill 
makes significant changes to reduce that burden while 
supporting both general and special education teachers who work 
with children with disabilities through personnel preparation 
and professional development. In making these changes, the 
Committee seeks to restore trust between schools and parents by 
encouraging the use of mediation and voluntary binding 
arbitration to speed the resolution time and setting a statute 
of limitations for when complaints must be filed. The bill 
modifies the discipline provisions to ensure that every student 
can learn in a safe school that supports an appropriate 
educational environment.
    The Committee believes that H.R. 1350 makes important 
changes to the IDEA that will have the overall impact of 
improving the delivery of special education and related 
services to children with disabilities throughout the Nation, 
reduce overidentification of some students as having 
disabilities, improve the communication between parents and 
teachers, and reduce the complexity and litigiousness of the 
IDEA. H.R. 1350 will bring positive change to special education 
programs throughout the country and further the effort to 
ensure that no child is left behind.

                      Section-by-Section Analysis

    Section 1. States the short title as the ``Improving 
Education Results for Children With Disabilities Education Act 
of 2003.''

                      TITLE I--GENERAL PROVISIONS

    Section 101. Amends sections 601 through 603 under Part A 
of the Individuals with Disabilities Education Act.
          ``Section 601. States the short title as the 
        ``Individuals with Disabilities Education Act''; 
        contains the findings, purposes, and table of contents 
        for this Act.
          ``Section 602. Establishes definitions used in the 
        Act.
          ``Section 603. Establishes the Office of Special 
        Education Programs within the Office of Special 
        Education and Rehabilitative Services of the Department 
        of Education, to be administered by a Director; and 
        contains provisions regarding voluntary and 
        uncompensated services.''.
    Section 102. Amends sections 605 through 607 of the Act.
          ``Section 605. Sets forth provisions regarding the 
        acquisition of equipment and construction or alteration 
        of facilities.
          ``Section 606. Requires the Secretary to make 
        positive efforts to employ qualified individuals with 
        disabilities.
          ``Section 607. Contains provisions regarding the 
        prescription of regulations; prohibits Secretary from 
        implementing regulations that would violate protections 
        afforded to children with disabilities under this Act; 
        modifies the Department's authority on writing policy 
        letters; and requires all policy interpretations to go 
        through the regulatory process.''.
    Section 103. Amends Part A of the Act to add section 608 to 
require States to ensure State regulations comport with the Act 
and that any State imposed requirements or paperwork reporting 
requirements are clearly identified to local educational 
agencies and the Secretary.
    Section 104. Requires the General Accounting Office to 
review paperwork requirements and report to Congress on 
strategic proposals to reduce the paperwork burden on teachers.
    Section 105. Requires the General Accounting Office to 
review certain state definitions and evaluation processes and 
report to Congress no later than 2 years after the date of 
enactment of this Act.
    Section 106. Requires the General Accounting Office to 
conduct a study of professional development programs delivered 
through technology and distance learning for special education 
personnel and report to Congress no later than 2 years after 
the date of enactment of this Act.
    Section 107. Requires the Comptroller General to conduct a 
study on limited English proficient students no later than 2 
years after the date of enactment of this Act.

  TITLE II--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES

    Section 201. Amends Section 611 of the Individuals with 
Disabilities Education Act to set forth provisions regarding 
grants to States; establishes a limit on the percentage of 
students with disabilities that a State may receive federal 
funds for; contains provisions regarding funds reserved for 
outlying areas; sets forth provisions regarding allocation of 
funds to States; requires States to reserve funds for grants to 
local education agencies that are identified as in need of 
improvement as a result, in whole or in part, of the 
performance of the disaggregated group of students with 
disabilities; contains provisions regarding funds used for 
State-level activities; sets forth provisions regarding 
subgrants to local educational agencies; sets forth provisions 
regarding the use of funds by the Secretary of Interior; and 
contains provisions pertaining to the authorization of 
appropriations for this Part with the exception of Section 619.
    Section 202. Amends Section 612(a) of the Act by requiring 
states to reasonably demonstrate to the Secretary that they 
have policies and procedures in effect to implement the 
Individuals with Disabilities Education Act regarding a free 
and appropriate education, child find, the individualized 
education program, the least restrictive environment, 
procedural safeguards, evaluations, confidentiality, 
overidentification and disproportionality, and the prohibition 
of psychotropic medication; sets forth provisions regarding 
children enrolled in private schools; contains provisions 
regarding the responsibilities of state educational agencies in 
carrying out this Part; contains provisions pertaining to 
procedural requirements in determining local agency 
eligibility; requires States to align performance goals and 
indicators to Title I under the No Child Left Behind Act; 
ensures that all students with disabilities participate in 
State or district assessment systems; sets forth provisions 
requiring States to establish mediation and voluntary binding 
arbitration systems; sets forth provisions regarding 
supplementation of state, local, and other federal funds; 
requires States to hold public hearings and an opportunity for 
public comment prior to the adoption of policies and 
procedures; contains provisions regarding the State advisory 
panel including membership and duties; requires parent 
representatives on State advisory panels to be of children ages 
birth through 26; section 612(b) sets forth provisions 
regarding states that provide direct services for children with 
disabilities; amends section 612(c) by providing an exception 
for states with prior state plans; amends section 612(d) to 
require approval by the Secretary; and amends 612(e) and 
provides assistance under other federal programs.
    Section 203. Amends section 613 of the Act to require local 
educational agencies to provide assurances to State educational 
agencies that there are policies and procedures in effect to 
implement the Individuals with Disabilities Education Act; 
contains provisions regarding local uses of funds; provides 
exception to local educational agencies for prior local plans; 
allows State educational agencies to require local educational 
agencies to establish joint eligibility, with the exception of 
charter schools; sets forth provisions regarding prereferral 
services; contains provisions regarding direct services 
provided by the State educational agency; contains provisions 
regarding State agency eligibility; and allows States to 
require a local educational agency to include a record of 
disciplinary action taken against a child with a disability.
    Section 204. Amends section 614 of the Act to set forth 
provisions regarding initial evaluations, parental consent, and 
revaluations and clarifies that the parent or local educational 
agency (and State educational agency where applicable) may 
initiate the request for an initial evaluation;places a focus 
on the educational needs of a child for the evaluation and reevaluation 
process; expands special rule for eligibility determination to state 
that lack of achievement, lack of scientifically based instruction in 
reading or math, or limited English proficiency, cannot be the 
determining factor for identification of a disability under the 
Individuals with Disabilities Education Act; defines the term 
individualized education program, sets forth provisions regarding its 
content, and ensures that the IEP addresses academic achievement; 
phases out the requirement that the IEP include benchmarks or short-
term objectives by 2005-2006, and allows students that take the 
alternate assessment to continue to include benchmarks or short-term 
objectives beyond that date; contains provisions regarding the IEP 
team; sets forth provisions encouraging local educational agencies to 
review the Individualized Family Service Plan (IFSP) when developing 
the child's first IEP; allows local educational agencies to offer a 
multiyear individualized education program and contains provisions 
regarding its execution; and sets forth provisions pertaining to 
alternative means of meeting participation.
    Section 205. Amends Section 615(a) of the Act to require 
State educational agencies, State agencies, and local 
educational agencies receiving funds to establish procedures in 
accordance with this section; amends section 615(b) by allowing 
parents to the use mediation or voluntary binding arbitration; 
imposes a one year statute of limitations on the filing of a 
complaint; amends Section 615(c) to clarify that the parent is 
obligated to provide clear and specific notice to the local 
educational agency or State educational agency before a due 
process hearing can be held; amends section 615(d) to limit the 
number of times the procedural safeguards notice should be sent 
out to the initial referral for evaluation, annually, and upon 
the request of a parent; amends section 615(e) to allow for the 
use of mediation and voluntary binding arbitration; amends 
section 615(f) to require an IEP team meeting within 15 days of 
the receipt of a parent's request for a due process hearing to 
attempt to resolve dispute and gives the local educational 
agency a total of 30 days from the time the parent filed the 
complaint to resolve the complaint unless the parent and the 
local educational agency agree in writing to waive the meeting, 
otherwise the parent can proceed to a due process hearing; 
amends section 615(g) by striking subsection (g); amends 
section 615(h) by redesignating subsection (h) as subsection 
(g); (i) as (h) and amends current law to include provisions 
regarding the determination of amount of attorney's fees; (j) 
to (i); redesignates (k) as (j) and amends current law to allow 
school personnel discretion over the discipline of all student 
misbehavior for up to 45 school days (unless State law requires 
a longer time period for a misbehavior) and eliminates the 
manifestation determination; redesignates (l) as (k); and (m) 
as (l).
    Section 206. Amends Section 616 of the Act stating the 
heading as ``Monitoring, Enforcement, Withholding, and Judicial 
Review''; requires the Secretary to implement this Act and 
creates a new monitoring and enforcement system for the 
Individuals with Disabilities Act to improve the Department of 
Education's ability to monitor compliance with the Act; 
establishes indicators related to academic achievement, 
graduation, and dropout rates, and allows the Secretary to 
establish other indicators on which to judge the performance of 
States; establishes a system of consequences for non-compliance 
with the Act; and establishes a requirement that the Secretary 
take certain actions for continued non-compliance with the Act.
    Section 207. Amends Section 617 of the Act to set forth 
provisions regarding the responsibilities of the Secretary in 
carrying out this Act; authorizes a pilot program for 10 States 
to reduce paperwork and requires an annual report to Congress 
on the progress of the pilot; and requires the Secretary to 
develop model forms for the IEP, prior written notice, and 
procedural safeguards notice.
    Section 208. Amends Section 618 of the Act to require 
States, local educational agencies, and the Secretary of 
Interior to provide annual data to the Secretary on children 
with disabilities; requires States to report on the number of 
mediations held and the number of settlement agreements 
reached; requires States to report on the number of voluntary 
binding arbitrations held and the number of settlement 
agreements reached; requires States to report on the number of 
hearings held and number of students referred to interim 
alternative education settings pursuant to discipline section; 
and requires local educational agencies that have been 
identified as having significant overidentification or 
disproportionality of minority students as being identified 
with a disability to reserve funds for prereferral services to 
address the overidentification problem.
    Section 209. Amends Section 619 of the Act to set forth 
provisions regarding preschool grants including eligibility, 
allocation of funds to States, reservation of funds for State 
activities, State administration, administration of Part C, and 
other State-level activities; contains provisions pertaining to 
subgrants to local educational agencies; states that Part C 
does not apply to any child with a disability that receives 
funds under this section; and contains provisions regarding the 
authorization of appropriations.

            TITLE III--INFANTS AND TODDLERS WITH DIABILITIES

    Section 301. Amends Section 631 through 638 of the 
Individuals with Disabilities Education Act.
          ``Section 631. Sets forth the findings and policy of 
        Part C of this Act.
          ``Section 632. Establishes definitions used under 
        Part C of this Act.
          ``Section 633. Requires the Secretary to make grants 
        to each State to implement a state-wide system to 
        provide early intervention services for infants and 
        toddlers with disabilities and their families.
          ``Section 634. Contains provisions regarding State 
        eligibility.
          ``Section 635. Sets forth the requirements for the 
        statewide early intervention system; and requires a 
        State to have in place a comprehensive system of 
        personnel development that results in a network of 
        highly qualified and well-trained providers of early 
        intervention services within the State.
          ``Section 636. Sets forth provisions regarding the 
        individualized family service plan; includes provisions 
        pertaining to the review process, parental consent, and 
        plan content; adds new requirements to a child's 
        Individualized Family Service Plan (IFSP) to include 
        goals for the development of pre-literacy and language 
        skills and a plan for the appropriate transition of 
        services for the child's entrance into school.
          ``Section 637. Contains provisions with regard to the 
        requirements for State applications and assurances and 
        sets forth provisions pertaining to subsequent State 
        applications and application modification.
          ``Section 638. Sets forth provisions regarding uses 
        of funds.''.
    Section 302. Amends sections 641 through 645 of the Act.
          ``Section 641. Establishes a State interagency 
        coordinating council in which the members and 
        chairperson are appointed by the governor; and sets 
        forth provisions regarding the council's composition 
        and its functions.
          ``Section 642. Contains provisions with regard to 
        federal administration.
          ``Section 643. Sets forth provisions pertaining to 
        the allocation of funds; and contains definitions under 
        the subsection.
          ``Section 644. Sets forth provisions regarding the 
        authorization of appropriations.''.

  TITLE IV--NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH 
                              DISABILITIES

    Section 401. Amends Part D of the Individuals with 
Disabilities Education Act.
          ``PART D--NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF 
        CHILDREN WITH DISABILITIES
          ``Section 651. Contains the findings of Part D of 
        this Act.
          ``Subpart 1--State Professional Development Grants
          ``Section 652. Sets forth the purpose of this 
        subpart.
          ``Section 653. Sets forth provisions regarding 
        eligibility, required partners, and optional partners.
          ``Section 654. Sets forth provisions pertaining to 
        applications including the submission process, plan 
        elements, and State plan; contains provisions requiring 
        the Secretary to award grants on a competitive basis 
        and may give priority on the basis of need; and 
        contains provisions regarding peer review and reporting 
        procedures.
          ``Section 655. Contains provisions regarding uses of 
        funds, allowable State activities, contracts, and 
        subgrants; and sets forth provisions regarding the use 
        of funds for professional development.
          ``Section 656. Sets forth provisions regarding State 
        grant amounts.
          ``Section 657. Sets forth the authorization of 
        appropriations for subpart 1.
          ``Subpart 2--Scientifically Based Research; Technical 
        Assistance; Model Demonstration; Dissemination of 
        Information; and Personnel Preparation Programs
          ``Section 661. Sets forth the purpose of this 
        subpart.
          ``Section 662. Requires the Secretary to develop and 
        implement a comprehensive plan to carry out activities 
        under this subpart and contains provisions regarding a 
        public comment period, distribution of funds, and an 
        annual report to Congress; sets forth provisions 
        regarding eligible applicants and establishes 
        priorities that the Secretary considers when awarding 
        grants; requires applicants to demonstrate how they are 
        addressing the needs of minority children with 
        disabilities; contains provisions pertaining to 
        applicant and recipient responsibilities and peer 
        review application management; establishes a standing 
        panel of experts to evaluate applications and sets 
        forth provisions regarding panel membership and terms; 
        and sets forth provisions regarding the use of funds 
        for discretionary purposes, program evaluation, minimum 
        funding requirements, and eligibility for financial 
        assistance.
          ``Section 663. Establishes a National Center for 
        Special Education Research at the Institute for 
        Education Sciences to carry out special education 
        research; sets forth provisions regarding comprehensive 
        grants and applications; narrows the list of allowable 
        research areas and adds new activities; requires the 
        Secretary to develop a comprehensive research agenda; 
        and requires the examination of the excess costs of 
        educating students with disabilities, and addresses 
        assessment alignment issues.
          ``Section 664. Requires the Secretary to support 
        projects regarding positive behavior supports, improved 
        alignment, compatibility and development of assessments 
        and alternate assessments, and teacher training to 
        address the needs of students with different learning 
        styles; requires that projects use, to the extent 
        practicable, research based projects that have been 
        approved by the What Works Clearinghouse; and condenses 
        list of allowable projects.
          ``Section 665. Requires the Secretary to make 
        competitive grants, or enter into contracts or 
        competitive agreements with eligible agencies that 
        focus on personnel preparation programs; contains 
        provisions regarding authorized activities dealing with 
        personnel preparation, low-incidence disabilities, and 
        leadership preparation; and sets forth provisions 
        regarding applications, selection of recipients, 
        service obligation, and scholarships.
          ``Section 666. Requires the Secretary, through 
        delegation to the Director of the Institute of 
        Education Sciences, to assess the implementation of 
        this Act and the effectiveness of State and local 
        programs; contains provisions pertaining to authorized 
        activities; requires the Secretary to carry out a 
        national assessment of the activities carried out under 
        thisAct; and contains provisions requiring the 
Secretary to publish a comprehensive plan for developing the national 
assessment for a 30 day public comment period.
          ``Section 667. Contains provisions regarding 
        authorization of appropriations of this subpart.
          ``Subpart 3--Supports to Improve Results for Children 
        With Disabilities
          ``Section 671. Sets forth the purposes of this 
        subpart.
          ``Section 672. Allows the Secretary to make grants 
        and enter into contracts and cooperative agreements 
        with parent and community organizations; sets forth 
        required and optional activities; contains provisions 
        pertaining to application requirements and distribution 
        of funds; requires a quarterly review by the board of 
        directors or governing committee of organizations 
        receiving grants; and states the definition of a parent 
        organization.
          ``Section 673. Sets forth provisions with regard to 
        community parent resource centers.
          ``Section 674. Allows the Secretary to provide 
        technical assistance to eligible agencies for 
        developing, assisting, and coordinating parent and 
        community training and information programs; and 
        contains provisions regarding authorized activities.
          ``Section 675. Requires the Secretary to provide 
        competitive grants to eligible agencies to support 
        activities promoting the development, demonstration, 
        and utilization of technology; allows the Secretary to 
        support media educational activities; contains 
        provisions pertaining to authorized activities and 
        applications; and sets forth the authorization of 
        appropriations.''.
    Section 402. Authorizes the Secretary to continue to 
provide funding for community parent resource centers.

                       Explanation of Amendments

    The Amendment in the Nature of a Substitute is explained in 
the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. This bill, H.R. 1350, the ``Improving Education Results 
for Children with Disabilities Act of 2003,'' enhances the 
Individuals with Disabilities Education Act by improving 
education results for children with disabilities, reducing 
paperwork to allow teachers to focus on spending more time with 
their students, reducing unnecessary litigation by improving 
communication between parents and schools, improving early 
intervention strategies, reducing over-identification/
misidentification of non-disabled children (particularly 
minority youth), encouraging innovative approaches to parental 
involvement and parental choice, supporting general education 
and special education teachers, and ensuring school safety. The 
bill also restructures the national activities and 
discretionary programs under the Act on research, professional 
development, personnel preparation, technical assistance, 
dissemination of information, parent training and information 
centers, and community parent resource centers to improve 
services under the Act. This bill does not prevent legislative 
branch employees from receiving the benefits of this 
legislation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. H.R. 1350, ``Improving Education Results for Children 
with Disabilities Act of 2003,'' enhances the Individuals with 
Disabilities Education Act by improving education results for 
children with disabilities, reducing paperwork to allow 
teachers to focus on spending more time with their students, 
reducing unnecessary litigation by improving communication 
between parents and schools, improving early intervention 
strategies, reducing over-identification/misidentification of 
non-disabled children (particularly minority youth), 
encouraging innovative approaches to parental involvement and 
parental choice, supporting general education and special 
education teachers, and ensuring school safety. The bill also 
restructures the national activities and discretionary programs 
under the Act on research, professional development, personnel 
preparation, technical assistance, dissemination of 
information, parent training and information centers, and 
community parent resource centers to improve services under the 
Act. As such, the bill does not contain any unfunded mandates.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the body of this report.

   New Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974 and with respect to 
requirements of 3(c)(3) of rule XIII of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 1350 from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 28, 2003.
Hon. John A. Boehner,
Chairman, Committee on Education and the Workforce, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1350, the 
Improving Education Results for Children with Disabilities Act 
of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Donna Wong.
            Sincerely,
                                          Barry B. Anderson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

H.R. 1350--Improving Education Results for Children with Disabilities 
        Act of 2003

    Summary: H.R. 1350 would reauthorize various programs under 
the Individuals with Disabilities Education Act (IDEA) that 
were authorized through 2002. These programs were authorized in 
2003 by the General Education Provisions Act (GEPA) and the 
Consolidated Appropriations Resolution, 2003 (Public Law 108-
7). H.R. 1350 would reauthorize these programs through 2009. 
The bill also would amend two programs that are permanently 
authorized by IDEA.
    The bill would authorize additional appropriations of $3.1 
billion in 2004. CBO estimates that the new authorizations 
under H.R. 1350 would total about $50 billion over the 2004-
2009 period, assuming that annual levels are adjusted to keep 
pace with inflation when specific annual authorizations are not 
provided. CBO estimates that appropriations of those authorized 
levels would result in additional outlays of $32 billion over 
the 2004-2009 period. Enacting H.R. 1350 would not affect 
direct spending or receipts.
    H.R. 1350 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
Any requirements on states or educational institutions would be 
conditions for receiving federal grants; the bill would 
authorize the appropriation of about $49 billion over the 2004-
2009 period for such grants.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 1350 is shown in Table 1. The costs of 
this legislation fall within budget function 500 (education, 
training, employment, and social services).

      TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 1350, THE IMPROVING EDUCATION RESULTS FOR CHILDREN WITH
                                            DISABILITIES ACT OF 2003
----------------------------------------------------------------------------------------------------------------
                                                              By fiscal year, in millions of dollars--
                                                  --------------------------------------------------------------
                                                     2003     2004     2005     2006     2007     2008     2009
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

                                         With Adjustments for Inflation

IDEA Spending Under Current Law:
    Estimated Authorization Level \1\............    9,434    9,323    9,506    9,708    9,910   10,130   10,350
    Estimated Outlays............................    8,152    9,484    9,580    9,595    9,755    9,963   10,180
Proposed Changes:
    Estimated Authorization Level................        0    3,063    5,206    7,404    9,403   11,386   13,369
    Estimated Outlays............................        0       61    2,034    4,346    6,567    8,633   10,631
IDEA Spending Under H.R. 1350:
    Estimated Authorization Level................    9,434   12,386   14,712   17,112   19,312   21,515   23,718
    Estimated Outlays............................    8,152    9,545   11,614   13,941   16,322   18,596   20,812
----------------------------------------------------------------------------------------------------------------
\1\ The 2003 level is the amount appropriated for that year for all programs. The 2004 through 2009 levels are
  the baseline amounts for the Grants to States and the Preschool state grants programs, which are permanently
  authorized under IDEA. The 2004 level includes an advance appropriation of $5.7 billion in the Grants to
  States programs.

Note.--Components may not sum to totals because of rounding.

    Basis of estimate: H.R. 1350 would reauthorize funding 
through 2009 for various programs created under IDEA. The bill 
also would amend funding authorizations for two programs that 
are permanently authorized by IDEA.
    Most programs authorized under IDEA would be reauthorized 
at specific levels for 2004 and for such sums as may be 
necessary for 2005 through 2009. Funding for the Grants to 
States program, which is permanently authorized at such sums as 
necessary, would be authorized at specific levels for 2004 
through 2010 and at such sums as may be necessary for 
subsequent years. Funding for the Preschool state grants 
program, which is also permanently authorized, would be 
authorized at a specific level in 2004 and such sums as may be 
necessary in subsequent years.
    Table 2 presents CBO's estimates with inflation adjustments 
for the various components of each title under H.R. 1350. The 
estimated outlays reflect historical rates of spending for the 
affected programs.
    The current-law levels for 2003 shown in tables 1 and 2 are 
the amounts appropriated that year for all IDEA programs. 
Amounts authorized under current law for years 2004 through 
2009 are CBO's baseline projections for the two programs that 
are permanently authorized and include an advance appropriation 
of $5.7 billion in 2004 for the Grants to States program.
    H.R. 1350 would authorize additional appropriations of $3.1 
billion in 2004. CBO estimates that this bill would authorize 
total additional funding of $50 billion over the 2004-2009 
period assuming that ``such sums'' amounts provided after 2004 
are adjusted for inflation. If the authorized amounts are 
appropriated, outlays would increase by $61 million in the 
first year and by $32 billion over the six-year period.
    Title I of the bill would provide general provisions and 
definitions for IDEA. Titles II through IV would authorize 
funding for IDEA programs, and the estimated costs for 
implementing each of those three titles are described below.

Title II: Assistance for Education of All Children With Disabilities

    Title II would amend the Grants to States program and the 
Preschool state grants program. Funding for both programs is 
permanently authorized by IDEA at such sums as may be 
necessary, which CBO estimates as the baseline level using the 
2003 appropriations as the starting point. The baseline level 
in 2004 for the two programs is a total of $9.3 billion 
(including the advance appropriation of $5.7 billion for the 
Grants to States program).
    H.r. 1350 would authorize an additional $2.3 billion above 
the current-law baseline (for a total of $11.6 billion) for 
2004 for programs under title II. CBO estimates that total 
additional funding for title II for the 2004-2009 period would 
be $44.7 billion (for a total of $103.6 billion) with resulting 
additional outlays of about $28.4 billion ($78 billion total) 
over those six years.
    Grants to States. H.R. 1350 would authorize total amounts 
of about $11.1 billion in 2004 and gradually raise that to 
about $25.2 billion in 2010, and such sums as may be necessary 
for 2011 and each subsequent fiscal year for the Grants to 
States programs. These authorizations would be $2.1 billion 
above baseline levels in 2004 and about $15.1 billion higher by 
2010.

TABLE 2.--DETAILED EFFECTS OF H.R. 1350, IMPROVING EDUCATION RESULTS FOR CHILDREN WITH DISABILITIES ACT OF 2003,
                                         WITH ADJUSTMENTS FOR INFLATION
----------------------------------------------------------------------------------------------------------------
                                                              By fiscal year, in millions of dollars--
                                                  --------------------------------------------------------------
                                                     2003     2004     2005     2006     2007     2008     2009
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

IDEA Spending Under Current Law:
    Budget Authority/Authorization Level \1\.....    9,434    9,323    9,506    9,708    9,910   10,130   10,350
    Estimated Outlays............................    8,152    9,484    9,580    9,595    9,755    9,963   10,180

                 Proposed Changes

Title II: Assistance for Education of All
 Children with Disabilities:
    Grants to States:
        Estimated Authorization Level............        0    2,146    4,270    6,449    8,427   10,389   12,350
        Estimated Outlays........................        0       43    1,437    3,463    5,620    7,655    9,643
    Preschool Grants:
        Estimated Authorization Level............        0      106      108      110      113      115      118
        Estimated Outlays........................        0        2       69      102      109      112      114
        Subtotal, Title II:
            Estimated Authorization Level........        0    2,252    4,378    6,559    8,540   10,504   12,468
            Estimated Outlays....................        0       45    1,506    3,565    5,729    7,777    9,757
Title III: Infants and Toddlers with
 Disabilities:
    Infants and Toddlers Grants:
        Estimated Authorization Level............        0      447      456      465      475      486      496
        Estimated Outlays........................        0        9      291      431      462      471      482
Title IV: National Activities:
    State Professional Development Grants:
        Estimated Authorization Level............        0       44       45       46       47       48       49
        Estimated Outlays........................        0        1       29       42       45       46       47
    Research, Technical Assistance,
     Demonstrations, and Dissemination:
        Estimated Authorization Level............        0      172      175      179      183      187      191
        Estimated Outlays........................        0        3      112      166      178      181      185
    Personnel Preparation Program:
        Estimated Authorization Level............        0       90       92       94       96       98      100
        Estimated Outlays........................        0        2       59       87       93       95       97
    Technical Assistance for Parent Training and
     Information Centers \2\:
        Estimated Authorization Level............        0       33       33       34       35       36       36
        Estimated Outlays........................        0        1       21       32       34       35       35
    Parent Training and Information Centers:
        Estimated Authorization Level............        0       26       27       27       28       28       29
        Estimated Outlays........................        0        1       17       25       27       27       28
        Subtotal, Title IV:
            Estimated Authorization Level........        0      365      372      380      388      396      405
            Estimated Outlays....................        0        7      237      351      377      385      393
Total Proposed Changes:
        Estimated Authorization Level............        0    3,063    5,206    7,404    9,403   11,386   13,369
        Estimated Outlays........................        0       61    2,034    4,346    6,567    8,633   10,631
Total IDEA Spending Under H.R. 1350:
        Estimated Authorization Level............    9,434   12,386   14,712   17,112   19,312   21,515   23,718
        Estimated Outlays........................    8,152    9,545   11,614   13,941   16,322   18,596  20,812
----------------------------------------------------------------------------------------------------------------
\1\ The 2003 level is the amount appropriated for that year for all programs. The 2004 through 2009 levels are
  the baseline amounts for the Grants to States and the Preschool state grants programs which are permanently
  authorized under IDEA. The 2004 level includes an advance appropriation of $5.7 billion for the Grants to
  States program.
\2\ Authorization was intended to authorize appropriations for Technology Development, and Demonstration, and
  Media Services.

Note.--Components may not sum to totals because of rounding.

    The state grant program provides formula grants to states 
to assist them in covering the excess costs of providing 
special education services to children with disabilities. 
Funding for this program currently is provided on an academic 
year basis through appropriations in two separate fiscal years: 
a forward-funded appropriation which is available July 1 of the 
current fiscal year, and an advance appropriation available 
October 1 of the next fiscal year. Although the program has 
been funded by two separate appropriations since 2001, 
fundingdoes not need to be authorized separately because all of the 
funds for an academic year could be provided in one appropriation. The 
program is funded at just under $8.9 billion in academic year 2003-
2004.
    Preschool State Grants. H.R. 1350 would authorize $500 
million in 2004, and such sums as may be necessary for each 
subsequent fiscal year for the Preschool grants program. The 
Preschool program provides additional grants to states for 
providing special education services to children ages three 
through five. The program is funded at $387 million in 2003.

Title III: Infants and Toddlers with Disabilities

    Title III would reauthorize the infants and toddlers state 
grant program. CBO estimates that total funding for title III 
for the 2004-2009 period would be $2.8 billion, assuming 
adjustments for inflation, with resulting outlays of about $2.1 
billion over those six years.
    The bill would authorize $447 million in 2004 and such sums 
as may be necessary over the 2005-2009 period for the program. 
The infants and toddlers program provides funds to states for 
early intervention and identification activities. The program 
is funded at $434 million in 2003.

Title IV: National Activities to Improve Education of Children with 
        Disabilities

    Title IV would reauthorize and revise several national 
activities including state professional development grants, 
scientifically based research, and parent and community 
training and information centers. Title IV would authorize $365 
million in 2004 and $2.3 billion over the 2004-2009 period for 
these programs. CBO estimates that the resulting outlays would 
be about $7 million in 2004 and $1.8 billion over the 2004-2009 
period.
    State Professional Development Grants. The bill would 
authorize $44 million in 2004 and such sums as may be necessary 
for the next five years for state profession development 
grants. The state professional development grant program would 
provide competitive grants to states to improve their systems 
for professional development in early intervention, educational 
and transitional services for children with disabilities. The 
current state improvement program is funded at $51 million in 
2003.
    Scientifically Based Research; Technical Assistance; 
Demonstration Projects; Dissemination of Information; Studies 
and Evaluations. The bill would authorize $172 million in 2004 
and such sums as may be necessary for the next five years for 
the National Center for Special Education Research, regional 
research centers, demonstration and outreach projects, and 
assessment activities. Comparable activities are funded at $130 
million in 2003.
    Personnel Preparation Programs. The bill would authorize 
$90 million in 2004 and such sums as may be necessary for the 
next five years for competitive awards to states or other 
organizations to fund programs that address personnel needs. 
Comparable activities are funded at $92 million in 2003.
    Technical Assistance for Parent Training and Information 
Centers. The bill would authorize about $33 million in 2004 and 
such sums as may be necessary for the next five years for 
technical assistance for parent training and information 
centers; but it appears that the bill incorrectly refers to the 
wrong section of IDEA. The authorization was intended to 
authorize appropriations for technology development, 
demonstration and utilization, and media services--programs 
that provide funds for activities that increase access to the 
classroom for children with disabilities. These programs focus 
on services for individuals who are deaf or blind such as video 
and closed captioned television. Comparable activities are 
funded at $38 million in 2003.
    Parent Training and Information Centers. The bill would 
authorize $26 million in 2004 and such sums as may be necessary 
for the next five years for parent training and information 
centers. The regional centers provide information, training, 
and referral services to parents of children with disabilities. 
Comparable activities are funded at $26 million in 2003.
    Intergovernmental and private-sector impact: The provisions 
of IDEA apply to states and educational institutions as 
recipients of federal grants. Consequently, any requirements 
that would be created or extended by H.R. 1350 would be 
conditions of federal aid and not intergovernmental or private-
sector mandates as defined in UMRA. Under current law, states 
received about $8.9 billion under IDEA's basic state grant 
program in academic year 2003, which CBO estimates equals about 
18 percent of the average per pupil expenditure for all 
children. Other grants to states totaled about $1 billion in 
2003. H.R. 1350 would authorize an additional appropriation of 
about $49 billion over the 2004-2009 period for all IDEA grants 
to states.
    Estimate prepared by: Federal Costs: Donna Wong; Impact on 
State, Local, and Tribal Governments: Theresa Gullo and Leo 
Lex; and Impact on the Private Sector: Nabeel Alsalam.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

         Statement of General Performance Goals and Objectives

    In accordance with Clause (3)(c) of House rule XIII, the 
goal of H.R. 1350, ``Improving Education Results for Children 
with Disabilities Act of 2003,'' is to enhance the Individuals 
with Disabilities Education Act by improving education results 
for children with disabilities, reducing paperwork to allow 
teachers to focus on spending more time with their students, 
reducing unnecessary litigation by improving communication 
between parents and schools, improving early intervention 
strategies, reducing over-identification/misidentification of 
non-disabled children (particularly minority youth), 
encouraging innovative approaches to parental involvement and 
parental choice, supporting general education and special 
education teachers, and ensuring school safety. The bill also 
restructures the national activities and discretionary programs 
under the Act on research, professional development, personnel 
preparation, technical assistance, dissemination of 
information, parent training and information centers, and 
community parent resource centers to improve services under the 
Act. The Committee expects the Department of Education to 
comply with H.R. 1350 and implement the changes to the law in 
accordance with the changes.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress in the 
Constitution to enact the law proposed by H.R. 1350. The 
Committee believes that the amendments made by this bill, which 
authorize appropriations for education assistance, are within 
Congress' authority under Article I, section 8, clause 1 of the 
Constitution.

                           Committee Estimate

    Clauses 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 1350. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

         Changes in Existing Law Made by the Bill, as Reported

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

              INDIVIDUALS WITH DISABILITIES EDUCATION ACT


                       PART A--GENERAL PROVISIONS

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

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

                       [Part A--General Provisions

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

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

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

             [Part C--Infants and Toddlers with Disabilities

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

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

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

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

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

[Sec. 661. Administrative provisions.

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

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

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

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

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

[SEC. 602. DEFINITIONS.

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

   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, enforcement, withholding, and judicial review.
Sec. 617. Administration.
Sec. 618. Program information.
Sec. 619. Preschool grants.

             Part C--Infants and Toddlers with Disabilities

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

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

Sec. 651. Findings.

             SUBPART 1--STATE PROFESSIONAL DEVELOPMENT GRANTS

Sec. 652. Purpose.
Sec. 653. Eligibility and collaborative process.
Sec. 654. Applications.
Sec. 655. Use of funds.
Sec. 656. State grant amounts.
Sec. 657. Authorization of appropriations.

  SUBPART 2--SCIENTIFICALLY BASED RESEARCH; TECHNICAL ASSISTANCE; MODEL 
  DEMONSTRATION PROJECTS; DISSEMINATION OF INFORMATION; AND PERSONNEL 
                          PREPARATION PROGRAMS

Sec. 661. Purpose.
Sec. 662. Administrative provisions.
Sec. 663. Research to improve results for children with disabilities.
Sec. 664. Technical assistance, demonstration projects, dissemination of 
          information, and implementation of scientifically based 
          research.
Sec. 665. Personnel preparation programs to improve services and results 
          for children with disabilities.
Sec. 666. Studies and evaluations.
Sec. 667. Authorization of appropriations. 

   SUBPART 3--SUPPORTS TO IMPROVE RESULTS FOR CHILDREN WITH DISABILITIES

Sec. 671. Purposes.
Sec. 672. Parent training and information centers.
Sec. 673. Community parent resource centers.
Sec. 674. Technical assistance for parent training and information 
          centers.
Sec. 675. Technology development, demonstration, and utilization; and 
          media services.
  (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 special educational needs of millions of 
        children with disabilities were not being fully met and 
        there were many children with disabilities 
        participating in regular school programs whose 
        undiagnosed disabilities prevented them from having a 
        successful educational experience.
          (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) 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--
                          (i) to meet developmental goals and, 
                        to the maximum extent possible, the 
                        challenging expectations that have been 
                        established for all children; and
                          (ii) to 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, 
                State, and Federal school improvement efforts, 
                including efforts under the Elementary and 
                Secondary Education Act of 1965, in order to 
                ensure that children with disabilities benefit 
                from such efforts and that special education 
                can become a service for such children rather 
                than a place where they are sent;
                  (D) supporting high-quality, intensive 
                professional development for personnel who work 
                with children with disabilities;
                  (E) providing incentives for scientifically 
                based reading programs and prereferral 
                intervention services to reduce the need to 
                label children as disabled in order to address 
                their learning needs;
                  (F) focusing resources on teaching and 
                learning while reducing paperwork and 
                requirements that do not assist in improving 
                educational results; and
                  (G) supporting the development and use of 
                technology, including assistive technology 
                devices and services, to maximize accessibility 
                for children with disabilities.
          (5) 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 has 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.
          (6) 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.
          (7)(A) The Federal Government must respond to the 
        growing needs of an increasingly diverse society.
          (B) America's ethnic profile is rapidly changing. In 
        the year 2000, nearly one of every three persons in 
        America 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 in order to provide appropriate 
        role models with sufficient knowledge to address the 
        special education needs of these students.
          (8)(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, assessment, and provision of 
        services for our Nation's students from non-English 
        language backgrounds.
          (9)(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 overidentified as 
        having mental retardation and emotional disturbance at 
        rates greater than their white counterparts.
          (D) In the 1998-99 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 
        predominantly Caucasian students and teachers have 
        placed disproportionately high numbers of their 
        minority students into special education.
          (10)(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 full participation by 
        minority individuals, organizations, and historically 
        black colleges and universities in awards for grants 
        and contracts, boards of organizations receiving 
        assistance under this Act, peer review panels, and 
        training of professionals in the area of special 
        education is essential to obtain greater success in the 
        education of minority 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 further education, 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 system 
        improvement 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 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 one or 
                        more of the following areas: physical 
                        development, cognitive development, 
                        communication development, social or 
                        emotional development, or adaptive 
                        development; and
                          (ii) who, by reason thereof, needs 
                        special education and related services.
          (4) Educational service agency.--The term 
        ``educational service agency''--
                  (A) means a regional public multiservice 
                agency--
                          (i) authorized by State law to 
                        develop, manage, and provide services 
                        or programs to local educational 
                        agencies; and
                          (ii) recognized as an administrative 
                        agency for purposes of the provision of 
                        special education and related services 
                        provided within public elementary and 
                        secondary schools of the State; and
                  (B) includes any other public institution or 
                agency having administrative control and 
                direction over a public elementary or secondary 
                school.
          (5) Elementary school.--The term ``elementary 
        school'' means a nonprofit institutional day or 
        residential school that provides elementary education, 
        as determined under State law.
          (6) Equipment.--The term ``equipment'' includes--
                  (A) machinery, utilities, and built-in 
                equipment and any necessary enclosures or 
                structures to house such machinery, utilities, 
                or equipment; and
                  (B) all other items necessary for the 
                functioning of a particular facility as a 
                facility for the provision of educational 
                services, including items such as instructional 
                equipment and necessary furniture; printed, 
                published, and audio-visual instructional 
                materials; telecommunications, sensory, and 
                other technological aids and devices; and 
                books, periodicals, documents, and other 
                related materials.
          (7) Excess costs.--The term ``excess costs'' means 
        those costs that are in excess of the average annual 
        per-student expenditure in a local educational agency 
        during the preceding school year for an elementary or 
        secondary school student, as may be appropriate, and 
        which shall be computed after deducting--
                  (A) amounts received--
                          (i) under part B of this title;
                          (ii) under part A of title I of the 
                        Elementary and Secondary Education Act 
                        of 1965; and
                          (iii) under title III of that Act; 
                        and
                  (B) any State or local funds expended for 
                programs that would qualify for assistance 
                under any of the provisions of law described in 
                subparagraph (A).
          (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) Highly qualified.--The term ``highly qualified'' 
        has the same meaning as that term in section 9101 of 
        the Elementary and Secondary Education Act of 1965.
          (10) Indian.--The term ``Indian'' means an individual 
        who is a member of an Indian tribe.
          (11) 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).
          (12) 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).
          (13) Individualized family service plan.--The term 
        ``individualized family service plan'' has the meaning 
        given such term in section 636.
          (14) Infant or toddler with a disability.--The term 
        ``infant or toddler with a disability '' has the 
        meaning given such term in section 632.
          (15) Institution of higher education.--The term 
        ``institution of higher education''--
                  (A) has the meaning given that term in 
                subsection (a) or (b) of section 101 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.
          (16) Local educational agency.--
                  (A) The term ``local educational agency'' 
                means a public board of education or other 
                public authority legally constituted within a 
                State for either administrative control or 
                direction of, or to perform a service function 
                for, public elementary or secondary schools in 
                a city, county, township, school district, or 
                other political subdivision of a State, or for 
                such combination of school districts or 
                counties as are recognized in a State as an 
                administrative agency for its public elementary 
                or secondary schools.
                  (B) The term includes--
                          (i) an educational service agency, as 
                        defined in paragraph (4); and
                          (ii) any other public institution or 
                        agency having administrative control 
                        and direction of a public elementary or 
                        secondary school.
                  (C) The term includes an elementary or 
                secondary school funded by the Bureau of Indian 
                Affairs, but only to the extent that such 
                inclusion makes the school eligible for 
                programs for which specific eligibility is not 
                provided to the school in another provision of 
                law and the school does not have a student 
                population that is smaller than the student 
                population of the local educational agency 
                receiving assistance under this Act with the 
                smallest student population, except that the 
                school shall not be subject to the jurisdiction 
                of any State educational agency other than the 
                Bureau of Indian Affairs.
          (17) 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.
          (18) 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.
          (19) Outlying area.--The term ``outlying area'' means 
        the United States Virgin Islands, Guam, American Samoa, 
        and the Commonwealth of the Northern Mariana Islands.
          (20) 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.
          (21) Parent organization.--The term ``parent 
        organization'' has the meaning given that term in 
        section 672(g).
          (22) Parent training and information center.--The 
        term ``parent training and information center'' means a 
        center assisted under sections 672 and 673.
          (23) 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.
          (24) 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.
          (25) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          (26) 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.
          (27) 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.
          (28) 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.
          (29) 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.
          (30) 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).
          (31) Transition services.--The term ``transition 
        services'' means a coordinated set of activities for a 
        child with a disability that--
                  (A) is designed within a results-oriented 
                process, that is focused on improving the 
                academic and developmental achievement of the 
                child with a disability to facilitate the 
                child's move 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 upon the individual child's 
                needs, taking into account the child's skills, 
                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. 605. ACQUISITION OF EQUIPMENT; CONSTRUCTION OR ALTERATION OF 
                    FACILITIES.

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

[SEC. 606. EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.

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

[SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

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

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, 
particularly as teachers, related services personnel, early 
intervention providers, and administrators, in programs 
assisted under this Act.

SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

  (a) In General.--The Secretary may issue regulations under 
this Act only to the extent that such regulations are 
reasonably 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 would--
          (1) violate or contradict any provision of this Act; 
        and
          (2) procedurally or substantively lessen the 
        protections provided to children with disabilities 
        under this Act, as embodied in regulations in effect on 
        July 20, 1983 (particularly as such protections relate 
        to parental consent to initial evaluation or initial 
        placement in special education, least restrictive 
        environment, related services, timelines, attendance of 
        evaluation personnel at individualized education 
        program meetings, or qualifications of personnel), 
        except to the extent that such regulation reflects the 
        clear and unequivocal intent of the Congress in 
        legislation.
  (c) Public Comment Period.--The Secretary shall provide a 
public comment period of at least 60 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 on issues 
of national significance) that--
          (1) would 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) 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--
                  (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 
                section 553 of title 5, United States Code.
  (f) Explanation and Assurances.--Any written response by the 
Secretary under subsection (e) regarding a policy, question, or 
interpretation under this Act shall include an explanation in 
the written response that the response--
          (1) is issued, when required, in compliance with the 
        requirements of section 553 of title 5, United States 
        Code; and
          (2) is provided as informal guidance and represents 
        only the interpretation by the Department of Education 
        of the applicable statutory or regulatory requirements 
        in the context of the specific facts presented in the 
        original question.

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) minimize the number of rules, regulations, and 
        policies to which the State's local educational 
        agencies and schools are subject to under this Act.
  (b) Support and Facilitation.--All State rules, regulations, 
and policies relating to 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.

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

SEC. 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.
          (3) Limitation.--Notwithstanding subparagraphs (A) 
        and (B) of paragraph (2), the maximum amount of the 
        grant a State may receive under this section for a 
        fiscal year may not be based on the number of children 
        ages 3 through 17, inclusive, in excess of 13.5 percent 
        of the number of all children in that age range in the 
        State.
  (b) Outlying Areas.--
          (1) Funds reserved.--From the amount appropriated for 
        any fiscal year under subsection (i), the Secretary 
        shall reserve not more than one percent, which shall be 
        used to provide assistance to the outlying areas in 
        accordance with their respective populations of 
        individuals aged 3 through 21.
          (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 
        those areas under this section.
  (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 (h).
  (d) Allocations to States.--
          (1) In general.--After reserving funds 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 this subsection.
          (2) Special rule for use of fiscal year 1999 
        amount.--If a State does not make a free appropriate 
        public education available to all children with 
        disabilities aged 3 through 5 in the State in any 
        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 the 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) is 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 allocate--
                          (I) to each State the amount it 
                        received for fiscal year 1999;
                          (II) 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) 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 fiscal 
                                        year 1999; and
                                          (bb) one-third of one 
                                        percent of the amount 
                                        by which the amount 
                                        appropriated under 
                                        subsection (i) exceeds 
                                        the amount appropriated 
                                        under this section for 
                                        fiscal year 1999;
                                  (II) the sum of--
                                          (aa) the amount it 
                                        received for the 
                                        preceding fiscal year; 
                                        and
                                          (bb) that amount 
                                        multiplied by the 
                                        percentage by which the 
                                        increase in the funds 
                                        appropriated from the 
                                        preceding fiscal year 
                                        exceeds 1.5 percent; or
                                  (III) the sum of--
                                          (aa) the amount it 
                                        received for the 
                                        preceding fiscal year; 
                                        and
                                          (bb) that amount 
                                        multiplied by 90 
                                        percent of the 
                                        percentage increase in 
                                        the amount appropriated 
                                        from the preceding 
                                        fiscal year.
                          (iii) Notwithstanding clause (ii), no 
                        State's allocation under this paragraph 
                        shall exceed the sum of--
                                  (I) the amount it received 
                                for the preceding fiscal year; 
                                and
                                  (II) that amount multiplied 
                                by the sum of 1.5 percent and 
                                the percentage increase in the 
                                amount appropriated.
                  (C) If the amount available for allocations 
                under this paragraph is insufficient to pay 
                those allocations in full, those allocations 
                shall be ratably reduced, subject to 
                subparagraph (B)(i).
          (4) Decrease in funds.--If the amount available for 
        allocations to States under paragraph (1) is less than 
        the amount allocated to the States under this section 
        for the preceding fiscal year, those allocations shall 
        be calculated as follows:
                  (A) If the amount available for allocations 
                is greater than the amount allocated to the 
                States for fiscal year 1999, each State shall 
                be allocated the sum of--
                          (i) the amount it received for fiscal 
                        year 1999; 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 
                        1999 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 fiscal year 1999, 
                each State shall be allocated the amount it 
                received for fiscal year 1999.
                  (ii) If the amount available is insufficient 
                to make the allocations described in clause 
                (i), those allocations shall be ratably 
                reduced.
  (e) State-Level Activities.--
          (1) In 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), (3), and 
                (4).
                  (B) For each fiscal year, the Secretary shall 
                determine and report to the State educational 
                agency an amount that is 25 percent of the 
                amount the State received under this section 
                for fiscal year 1997, cumulatively adjusted by 
                the Secretary for each succeeding fiscal year 
                by the lesser of--
                          (i) the percentage increase, if any, 
                        from the preceding fiscal year in the 
                        State's allocation under this section; 
                        or
                          (ii) the rate of inflation, as 
                        measured by the percentage increase, if 
                        any, from the preceding fiscal year in 
                        the Consumer Price Index For All Urban 
                        Consumers, published by the Bureau of 
                        Labor Statistics of the Department of 
                        Labor.
                  (C) A State may use funds it retains under 
                subparagraph (A) without regard to--
                          (i) the prohibition on commingling of 
                        funds in section 612(a)(18)(B); and
                          (ii) the prohibition on supplanting 
                        other funds in section 612(a)(18)(C).
          (2) State administration.--
                  (A) For the purpose of administering this 
                part, including section 619 (including the 
                coordination of activities under this part 
                with, and providing technical assistance to, 
                other programs that provide services to 
                children with disabilities)--
                          (i) each State may use not more than 
                        20 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 
                        5 percent of the amount it receives 
                        under this section for any fiscal year 
                        or $35,000 (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.
                  (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) High cost special education and related 
        services.--Each State may use not more than four 
        percent of the maximum amount it may retain under 
        paragraph (1)(A) for any fiscal year to establish and 
        implement cost or risk sharing funds, consortia, or 
        cooperatives to assist local educational agencies in 
        providing high cost special education and related 
        services.
          (4) Other state-level activities.--Each State shall 
        use any funds it retains under paragraph (1) and does 
        not use under paragraph (2) or (3) 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.
                  (C) To establish and implement the mediation 
                and voluntary binding arbitration processes 
                required by sections 612(a)(17) and 615(e), 
                including providing for the costs of mediators, 
                arbitrators, and support personnel.
                  (D) To assist local educational agencies in 
                meeting personnel shortages.
                  (E) Activities at the State and local levels 
                to meet the performance goals established by 
                the State under section 612(a)(15) and to 
                support implementation of the State plan under 
                subpart 1 of part D if the State receives funds 
                under that subpart.
                  (F) To support paperwork reduction 
                activities, including expanding the appropriate 
                use of technology in the IEP process under this 
                part.
                  (G) To develop and maintain a comprehensive, 
                coordinated, prereferral educational support 
                system for students in kindergarten through 
                grade 12 (with a particular emphasis on 
                students in kindergarten through grade 3) who 
                are not enrolled in special education but who 
                need additional academic and behavioral support 
                to succeed in a general education environment.
                  (H) To support capacity building activities 
                and improve the delivery of services by local 
                educational agencies to improve results for 
                children with disabilities.
                  (I) For subgrants to local educational 
                agencies for the purposes described in 
                paragraph (5)(A).
          (5)(A) Subgrants to local educational agencies for 
        accountability.--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 provide technical assistance and 
        direct services to local educational agencies 
        identified as being in need of improvement under 
        section 1116 of the Elementary and Secondary Education 
        Act of 1965 on the basis, in whole or in part, of the 
        assessment results of the disaggregated subgroup of 
        students with disabilities, including providing 
        professional development to special and regular 
        education teachers, based on scientifically based 
        research to improve educational instruction.
          (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.
          (6) 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 this subsection 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.
  (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 it does not retain 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.--For each fiscal year for which funds are 
        allocated to States under subsection (e), each State 
        shall allocate funds under paragraph (1) 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 1999, if the 
                State had distributed 75 percent of its grant 
                for that year under section 611(d), as then in 
                effect.
                  (B) Allocation of remaining funds.--After 
                making allocations under subparagraph (A), the 
                State shall--
                          (i) allocate 85 percent of any 
                        remaining funds to those agencies on 
                        the basis of the relative numbers of 
                        children enrolled in public and private 
                        elementary and secondary schools within 
                        the agency's jurisdiction; and
                          (ii) allocate 15 percent of those 
                        remaining funds to those agencies in 
                        accordance with their relative numbers 
                        of children living in poverty, as 
                        determined by the State educational 
                        agency.
          (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 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.
  (g) 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.
  (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 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. Of the amount described in 
                the preceding sentence--
                          (i) 80 percent shall be allocated to 
                        such schools by July 1 of that fiscal 
                        year; and
                          (ii) 20 percent shall be allocated to 
                        such schools by September 30 of 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 Education in its exercise of 
                monitoring, enforcement, 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 (i), the Secretary of 
                Education shall make payments to the Secretary 
                of the Interior to be distributed to tribes or 
                tribal organizations (as defined under section 
                4 of the Indian Self-Determination and 
                Education Assistance Act) or consortia of the 
                above to provide for the coordination of 
                assistance for special education and related 
                services for children with disabilities aged 3 
                through 5 on reservations served by elementary 
                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) Annual 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 an annual 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 year 
                following the one in which the report is made. 
                The Secretary of the Interior shall include a 
                summary of this information on an annual 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)(22), 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).
          (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).
  (i) Authorization of Appropriations.--For the purpose of 
carrying out this part, other than section 619, there are 
authorized to be appropriated--
          (1) $11,074,398,000 for fiscal year 2004;
          (2) $13,374,398,000 for fiscal year 2005;
          (3) $15,746,302,000 for fiscal year 2006;
          (4) $17,918,205,000 for fiscal year 2007;
          (5) $20,090,109,000 for fiscal year 2008;
          (6) $22,262,307,000 for fiscal year 2009;
          (7) $25,198,603,000 for fiscal year 2010; and
          (8) such sums as may be necessary for fiscal year 
        2011 and each subsequent fiscal year.

SEC. 612. STATE ELIGIBILITY.

  (a) In General.--A State is eligible for assistance under 
this part for a fiscal year if the State [demonstrates to the 
satisfaction of] reasonably demonstrates to the Secretary that 
the State has in effect policies and procedures to ensure that 
it meets each of the following conditions:
          [(1) Free appropriate public education.--
                  [(A) In general.--A free appropriate public 
                education is available to all children with 
                disabilities residing in the State between the 
                ages of 3 and 21, inclusive, including children 
                with disabilities who have been suspended or 
                expelled from school.
                  [(B) Limitation.--The obligation to make a 
                free appropriate public education available to 
                all children with disabilities does not apply 
                with respect to children:
                          [(i) aged 3 through 5 and 18 through 
                        21 in a State to the extent that its 
                        application to those children would be 
                        inconsistent with State law or 
                        practice, or the order of any court, 
                        respecting the provision of public 
                        education to children in those age 
                        ranges; and
                          [(ii) aged 18 through 21 to the 
                        extent that State law does not require 
                        that special education and related 
                        services under this part be provided to 
                        children with disabilities who, in the 
                        educational placement prior to their 
                        incarceration in an adult correctional 
                        facility:
                                  [(I) were not actually 
                                identified as being a child 
                                with a disability under section 
                                602(3) of this Act; or
                                  [(II) did not have an 
                                individualized education 
                                program under this part.
          [(2) Full educational opportunity goal.--The State 
        has established a goal of providing full educational 
        opportunity to all children with disabilities and a 
        detailed timetable for accomplishing that goal.
          [(3) Child find.--
                  [(A) In general.--All children with 
                disabilities residing in the State, including 
                children with disabilities attending private 
                schools, regardless of the severity of their 
                disabilities, and who are in need of special 
                education and related services, are identified, 
                located, and evaluated and a practical method 
                is developed and implemented to determine which 
                children with disabilities are currently 
                receiving needed special education and related 
                services.
                  [(B) Construction.--Nothing in this Act 
                requires that children be classified by their 
                disability so long as each child who has a 
                disability listed in section 602 and who, by 
                reason of that disability, needs special 
                education and related services is regarded as a 
                child with a disability under this part.
          [(4) Individualized education program.--An 
        individualized education program, or an individualized 
        family service plan that meets the requirements of 
        section 636(d), is developed, reviewed, and revised for 
        each child with a disability in accordance with section 
        614(d).
          [(5) Least restrictive environment.--
                  [(A) In general.--To the maximum extent 
                appropriate, children with disabilities, 
                including children in public or private 
                institutions or other care facilities, are 
                educated with children who are not disabled, 
                and special classes, separate schooling, or 
                other removal of children with disabilities 
                from the regular educational environment occurs 
                only when the nature or severity of the 
                disability of a child is such that education in 
                regular classes with the use of supplementary 
                aids and services cannot be achieved 
                satisfactorily.
                  [(B) Additional requirement.--
                          [(i) In general.--If the State uses a 
                        funding mechanism by which the State 
                        distributes State funds on the basis of 
                        the type of setting in which a child is 
                        served, the funding mechanism does not 
                        result in placements that violate the 
                        requirements of subparagraph (A).
                          [(ii) Assurance.--If the State does 
                        not have policies and procedures to 
                        ensure compliance with clause (i), the 
                        State shall provide the Secretary an 
                        assurance that it will revise the 
                        funding mechanism as soon as feasible 
                        to ensure that such mechanism does not 
                        result in such placements.
          [(6) Procedural safeguards.--
                  [(A) In general.--Children with disabilities 
                and their parents are afforded the procedural 
                safeguards required by section 615.
                  [(B) Additional procedural safeguards.--
                Procedures to ensure that testing and 
                evaluation materials and procedures utilized 
                for the purposes of evaluation and placement of 
                children with disabilities will be selected and 
                administered so as not to be racially or 
                culturally discriminatory. Such materials or 
                procedures shall be provided and administered 
                in the child's native language or mode of 
                communication, unless it clearly is not 
                feasible to do so, and no single procedure 
                shall be the sole criterion for determining an 
                appropriate educational program for a child.
          [(7) Evaluation.--Children with disabilities are 
        evaluated in accordance with subsections (a) through 
        (c) of section 614.
          [(8) Confidentiality.--Agencies in the State comply 
        with section 617(c) (relating to the confidentiality of 
        records and information).
          [(9) Transition from part c to preschool programs.--
        Children participating in early intervention programs 
        assisted under part C, and who will participate in 
        preschool programs assisted under this part, experience 
        a smooth and effective transition to those preschool 
        programs in a manner consistent with section 637(a)(8). 
        By the third birthday of such a child, an 
        individualized education program or, if consistent with 
        sections 614(d)(2)(B) and 636(d), an individualized 
        family service plan, has been developed and is being 
        implemented for the child. The local educational agency 
        will participate in transition planning conferences 
        arranged by the designated lead agency under section 
        637(a)(8).
          [(10) Children in private schools.--
                  [(A) Children enrolled in private schools by 
                their parents.--
                          [(i) In general.--To the extent 
                        consistent with the number and location 
                        of children with disabilities in the 
                        State who are enrolled by their parents 
                        in private elementary and secondary 
                        schools, provision is made for the 
                        participation of those children in the 
                        program assisted or carried out under 
                        this part by providing for such 
                        children special education and related 
                        services in accordance with the 
                        following requirements, unless the 
                        Secretary has arranged for services to 
                        those children under subsection (f ):
                                  [(I) Amounts expended for the 
                                provision of those services by 
                                a local educational agency 
                                shall be equal to a 
                                proportionate amount of Federal 
                                funds made available under this 
                                part.
                                  [(II) Such services may be 
                                provided to children with 
                                disabilities on the premises of 
                                private, including parochial, 
                                schools, to the extent 
                                consistent with law.
                          [(ii) Child-find requirement.--The 
                        requirements of paragraph (3) of this 
                        subsection (relating to child find) 
                        shall apply with respect to children 
                        with disabilities in the State who are 
                        enrolled in private, including 
                        parochial, elementary and secondary 
                        schools.
                  [(B) Children placed in, or referred to, 
                private schools by public agencies.--
                          [(i) In general.--Children with 
                        disabilities in private schools and 
                        facilities are provided special 
                        education and related services, in 
                        accordance with an individualized 
                        education program, at no cost to their 
                        parents, if such children are placed 
                        in, or referred to, such schools or 
                        facilities by the State or appropriate 
                        local educational agency as the means 
                        of carrying out the requirements of 
                        this part or any other applicable law 
                        requiring the provision of special 
                        education and related services to all 
                        children with disabilities within such 
                        State.
                          [(ii) Standards.--In all cases 
                        described in clause (i), the State 
                        educational agency shall determine 
                        whether such schools and facilities 
                        meet standards that apply to State and 
                        local educational agencies and that 
                        children so served have all the rights 
                        they would have if served by such 
                        agencies.
                  [(C) Payment for education of children 
                enrolled in private schools without consent of 
                or referral by the public agency.--
                          [(i) In general.--Subject to 
                        subparagraph (A), this part does not 
                        require a local educational agency to 
                        pay for the cost of education, 
                        including special education and related 
                        services, of a child with a disability 
                        at a private school or facility if that 
                        agency made a free appropriate public 
                        education available to the child and 
                        the parents elected to place the child 
                        in such private school or facility.
                          [(ii) Reimbursement for private 
                        school placement.--If the parents of a 
                        child with a disability, who previously 
                        received special education and related 
                        services under the authority of a 
                        public agency, enroll the child in a 
                        private elementary or secondary school 
                        without the consent of or referral by 
                        the public agency, a court or a hearing 
                        officer may require the agency to 
                        reimburse the parents for the cost of 
                        that enrollment if the court or hearing 
                        officer finds that the agency had not 
                        made a free appropriate public 
                        education available to the child in a 
                        timely manner prior to that enrollment.
                          [(iii) Limitation on reimbursement.--
                        The cost of reimbursement described in 
                        clause (ii) may be reduced or denied--
                                  [(I) if--
                                          [(aa) at the most 
                                        recent IEP meeting that 
                                        the parents attended 
                                        prior to removal of the 
                                        child from the public 
                                        school, the parents did 
                                        not inform the IEP Team 
                                        that they were 
                                        rejecting the placement 
                                        proposed by the public 
                                        agency to provide a 
                                        free appropriate public 
                                        education to their 
                                        child, including 
                                        stating their concerns 
                                        and their intent to 
                                        enroll their child in a 
                                        private school at 
                                        public expense; or
                                          [(bb) 10 business 
                                        days (including any 
                                        holidays that occur on 
                                        a business day) prior 
                                        to the removal of the 
                                        child from the public 
                                        school, the parents did 
                                        not give written notice 
                                        to the public agency of 
                                        the information 
                                        described in division 
                                        (aa);
                                  [(II) if, prior to the 
                                parents' removal of the child 
                                from the public school, the 
                                public agency informed the 
                                parents, through the notice 
                                requirements described in 
                                section 615(b)(7), of its 
                                intent to evaluate the child 
                                (including a statement of the 
                                purpose of the evaluation that 
                                was appropriate and 
                                reasonable), but the parents 
                                did not make the child 
                                available for such evaluation; 
                                or
                                  [(III) upon a judicial 
                                finding of unreasonableness 
                                with respect to actions taken 
                                by the parents.
                          [(iv) Exception.--Notwithstanding the 
                        notice requirement in clause (iii)(I), 
                        the cost of reimbursement may not be 
                        reduced or denied for failure to 
                        provide such notice if--
                                  [(I) the parent is illiterate 
                                and cannot write in English;
                                  [(II) compliance with clause 
                                (iii)(I) would likely result in 
                                physical or serious emotional 
                                harm to the child;
                                  [(III) the school prevented 
                                the parent from providing such 
                                notice; or
                                  [(IV) the parents had not 
                                received notice, pursuant to 
                                section 615, of the notice 
                                requirement in clause (iii)(I).
          [(11) State educational agency responsible for 
        general supervision.--
                  [(A) In general.--The State educational 
                agency is responsible for ensuring that--
                          [(i) the requirements of this part 
                        are met; and
                          [(ii) all educational programs for 
                        children with disabilities in the 
                        State, including all such programs 
                        administered by any other State or 
                        local agency--
                                  [(I) are under the general 
                                supervision of individuals in 
                                the State who are responsible 
                                for educational programs for 
                                children with disabilities; and
                                  [(II) meet the educational 
                                standards of the State 
                                educational agency.
                  [(B) Limitation.--Subparagraph (A) shall not 
                limit the responsibility of agencies in the 
                State other than the State educational agency 
                to provide, or pay for some or all of the costs 
                of, a free appropriate public education for any 
                child with a disability in the State.
                  [(C) Exception.--Notwithstanding 
                subparagraphs (A) and (B), the Governor (or 
                another individual pursuant to State law), 
                consistent with State law, may assign to any 
                public agency in the State the responsibility 
                of ensuring that the requirements of this part 
                are met with respect to children with 
                disabilities who are convicted as adults under 
                State law and incarcerated in adult prisons.]
          (1) Free appropriate public education.--
                  (A) In general.--A free appropriate public 
                education is available to all children with 
                disabilities residing in the State between the 
                ages of 3 and 21, inclusive, including children 
                with disabilities who have been suspended or 
                expelled from school.
                  (B) Limitation.--The obligation to make a 
                free appropriate public education available to 
                all children with disabilities does not apply 
                with respect to children--
                          (i) aged 3 through 5 and 18 through 
                        21 in a State to the extent that its 
                        application to those children would be 
                        inconsistent with State law or 
                        practice, or the order of any court, 
                        respecting the provision of public 
                        education to children in those age 
                        ranges; and
                          (ii) aged 18 through 21 to the extent 
                        that State law does not require that 
                        special education and related services 
                        under this part be provided to children 
                        with disabilities who, in the 
                        educational placement prior to their 
                        incarceration in an adult correctional 
                        facility--
                                  (I) were not actually 
                                identified as being a child 
                                with a disability under section 
                                602(3) of this Act; or
                                  (II) did not have an 
                                individualized education 
                                program under this part.
          (2) Full educational opportunity goal.--The State has 
        established a goal of providing full educational 
        opportunity to all children with disabilities and a 
        detailed timetable for accomplishing that goal.
          (3) Child find.--
                  (A) In general.--All children with 
                disabilities residing in the State, including 
                children with disabilities attending private 
                schools, regardless of the severity of their 
                disabilities, and who are in need of special 
                education and related services, are identified, 
                located, and evaluated and a practical method 
                is developed and implemented to determine which 
                children with disabilities are currently 
                receiving needed special education and related 
                services.
                  (B) Construction.--Nothing in this Act 
                requires that children be classified by their 
                disability so long as each child who has a 
                disability listed in section 602 and who, by 
                reason of that disability, needs special 
                education and related services is regarded as a 
                child with a disability under this part.
          (4) Individualized education program.--An 
        individualized education program, or an individualized 
        family service plan that meets the requirements of 
        section 636(d), is developed, reviewed, and revised for 
        each child with a disability in accordance with section 
        614(d).
          (5) Least restrictive environment.--
                  (A) In general.--To the maximum extent 
                appropriate, children with disabilities, 
                including children in public or private 
                institutions or other care facilities, are 
                educated with children who are not disabled, 
                and special classes, separate schooling, or 
                other removal of children with disabilities 
                from the regular educational environment occurs 
                only when the nature or severity of the 
                disability of a child is such that education in 
                regular classes with the use of supplementary 
                aids and services cannot be achieved 
                satisfactorily.
                  (B) Additional requirement.--
                          (i) In general.--If the State uses a 
                        funding mechanism by which the State 
                        distributes State funds on the basis of 
                        the type of setting in which a child is 
                        served, the funding mechanism does not 
                        result in placements that violate the 
                        requirements of subparagraph (A).
                          (ii) Assurance.--If the State does 
                        not have policies and procedures to 
                        ensure compliance with clause (i), the 
                        State shall provide the Secretary an 
                        assurance that it will revise the 
                        funding mechanism as soon as feasible 
                        to ensure that such mechanism does not 
                        result in such placements.
          (6) Procedural safeguards.--
                  (A) In general.--Children with disabilities 
                and their parents are afforded the procedural 
                safeguards required by section 615.
                  (B) Additional procedural safeguards.--
                Procedures to ensure that testing and 
                evaluation materials and procedures utilized 
                for the purposes of evaluation and placement of 
                children with disabilities for services under 
                this Act will be selected and administered so 
                as not to be racially or culturally 
                discriminatory. Such materials or procedures 
                shall be provided and administered in the 
                child's native language or mode of 
                communication, unless it clearly is not 
                feasible to do so, and no single procedure 
                shall be the sole criterion for determining an 
                appropriate educational program for a child.
          (7) Evaluation.--Children with disabilities are 
        evaluated in accordance with subsections (a) through 
        (c) of section 614.
          (8) Confidentiality.--Agencies in the State comply 
        with section 617(d) (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 
        section 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 in the area served by such 
                        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 a local 
                                educational agency shall be 
                                equal to a proportionate amount 
                                of Federal funds made available 
                                under this part.
                                  (II) In calculating the 
                                proportionate share of Federal 
                                funds, the local educational 
                                agency, after timely and 
                                meaningful consultation with 
                                representatives of children 
                                with disabilities parentally-
                                placed in private schools as 
                                described in clause (iii), 
                                shall conduct a thorough and 
                                complete child-find process to 
                                determine the number of 
                                parentally-placed children with 
                                disabilities attending private 
                                schools located in the 
                                district.
                                  (III) Such services may be 
                                provided to children with 
                                disabilities on the premises of 
                                private, including religious, 
                                schools, to the extent 
                                consistent with law.
                                  (IV) State and local funds 
                                may supplement and in no case 
                                shall supplant the 
                                proportionate amount of Federal 
                                funds required to be expended 
                                under this paragraph.
                                  (V) Each local educational 
                                agency maintains in its records 
                                and provides 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 
                                and secondary schools.
                                  (II) Equitable 
                                participation.--The child-find 
                                process must 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).
                                  (V) Completion period.--Such 
                                child-find process shall be 
                                completed in a time period 
                                comparable to that for other 
                                students attending public 
                                schools in the local 
                                educational agency.
                          (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 parentally placed in 
                        private schools during the design and 
                        development of special education and 
                        related services for these children 
                        including--
                                  (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 those 
                                funds were calculated;
                                  (III) the consultation 
                                process among the 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; and
                                  (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.
                          (iv) 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.
                          (v) Provision of services.--
                                  (I) Directly or through 
                                contracts.--An agency may 
                                provide special education and 
                                related services directly or 
                                through contracts with public 
                                and private agencies, 
                                organizations, and 
                                institutions.
                                  (II) Secular, neutral, 
                                nonideological.--Special 
                                education and related services, 
                                including materials and 
                                equipment, shall be secular, 
                                neutral, and nonideological.
                          (vi) Public control of funds.--
                                  (I) In general.--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.
                                  (II) Provision of services.--
                                The provision of services under 
                                this Act shall be provided--
                                          (aa) by employees of 
                                        a public agency; or
                                          (bb) through contract 
                                        by the public agency 
                                        with an individual, 
                                        association, agency, 
                                        organization, or other 
                                        entity.
                  (B) Children placed in, or referred to, 
                private schools by public agencies.--
                          (i) In general.--Children with 
                        disabilities in private schools and 
                        facilities are provided special 
                        education and related services, in 
                        accordance with an individualized 
                        education program, at no cost to their 
                        parents, if such children are placed 
                        in, or referred to, such schools or 
                        facilities by the State or appropriate 
                        local educational agency as the means 
                        of carrying out the requirements of 
                        this part or any other applicable law 
                        requiring the provision of special 
                        education and related services to all 
                        children with disabilities within such 
                        State.
                          (ii) Standards.--In all cases 
                        described in clause (i), the State 
                        educational agency shall determine 
                        whether such schools and facilities 
                        meet standards that apply to State and 
                        local educational agencies and that 
                        children so served have all the rights 
                        they would have if served by such 
                        agencies.
                  (C) Payment for education of children 
                enrolled in private schools without consent of 
                or referral by the public agency.--
                          (i) In general.--Subject to 
                        subparagraph (A), this part does not 
                        require a local educational agency to 
                        pay for the cost of education, 
                        including special education and related 
                        services, of a child with a disability 
                        at a private school or facility if that 
                        agency made a free appropriate public 
                        education available to the child and 
                        the parents elected to place the child 
                        in such private school or facility.
                          (ii) Reimbursement for private school 
                        placement.--If the parents of a child 
                        with a disability, who previously 
                        received special education and related 
                        services under the authority of a 
                        public agency, enroll the child in a 
                        private elementary or secondary school 
                        without the consent of or referral by 
                        the public agency, a court or a hearing 
                        officer may require the agency to 
                        reimburse the parents for the cost of 
                        that enrollment if the court or hearing 
                        officer finds that the agency had not 
                        made a free appropriate public 
                        education available to the child in a 
                        timely manner prior to that enrollment.
                          (iii) Limitation on reimbursement.--
                        The cost of reimbursement described in 
                        clause (ii) may be reduced or denied--
                                  (I) if--
                                          (aa) at the most 
                                        recent IEP meeting that 
                                        the parents attended 
                                        prior to removal of the 
                                        child from the public 
                                        school, the parents did 
                                        not inform the IEP Team 
                                        that they were 
                                        rejecting the placement 
                                        proposed by the public 
                                        agency to provide a 
                                        free appropriate public 
                                        education to their 
                                        child, including 
                                        stating their concerns 
                                        and their intent to 
                                        enroll their child in a 
                                        private school at 
                                        public expense; or
                                          (bb) 10 business days 
                                        (including any holidays 
                                        that occur on a 
                                        business day) prior to 
                                        the removal of the 
                                        child from the public 
                                        school, the parents did 
                                        not give written notice 
                                        to the public agency of 
                                        the information 
                                        described in division 
                                        (aa);
                                  (II) if, prior to the 
                                parents' removal of the child 
                                from the public school, the 
                                public agency informed the 
                                parents, through the notice 
                                requirements described in 
                                section 615(b)(7), of its 
                                intent to evaluate the child 
                                (including a statement of the 
                                purpose of the evaluation that 
                                was appropriate and 
                                reasonable), but the parents 
                                did not make the child 
                                available for such evaluation; 
                                or
                                  (III) upon a judicial finding 
                                of unreasonableness with 
                                respect to actions taken by the 
                                parents.
                          (iv) Exception.--Notwithstanding the 
                        notice requirement in clause (iii)(I), 
                        the cost of reimbursement--
                                  (I) shall not be reduced or 
                                denied for failure to provide 
                                such notice if--
                                          (aa) the school 
                                        prevented the parent 
                                        from providing such 
                                        notice;
                                          (bb) the parents had 
                                        not received notice, 
                                        pursuant to section 
                                        615, of the notice 
                                        requirement in clause 
                                        (iii)(I); or
                                          (cc) compliance with 
                                        clause (iii)(I) would 
                                        likely result in 
                                        physical harm to the 
                                        child; 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 or cannot 
                                        write in English; or
                                          (bb) compliance with 
                                        clause (iii)(I) would 
                                        likely result in 
                                        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.

           *       *       *       *       *       *       *

          [(13) Procedural requirements relating to local 
        educational agency eligibility.--The State educational 
        agency will not make a final determination that a local 
        educational agency is not eligible for assistance under 
        this part without first affording that agency 
        reasonable notice and an opportunity for a hearing.
          [(14) Comprehensive system of personnel 
        development.--The State has in effect, consistent with 
        the purposes of this Act and with section 635(a)(8), a 
        comprehensive system of personnel development that is 
        designed to ensure an adequate supply of qualified 
        special education, regular education, and related 
        services personnel that meets the requirements for a 
        State improvement plan relating to personnel 
        development in subsections (b)(2)(B) and (c)(3)(D) of 
        section 653.
          [(15) Personnel standards.--
                  [(A) In general.--The State educational 
                agency has established and maintains standards 
                to ensure that personnel necessary to carry out 
                this part are appropriately and adequately 
                prepared and trained.
                  [(B) Standards described.--Such standards 
                shall--
                          [(i) be consistent with any State-
                        approved or State-recognized 
                        certification, licensing, registration, 
                        or other comparable requirements that 
                        apply to the professional discipline in 
                        which those personnel are providing 
                        special education or related services;
                          [(ii) to the extent the standards 
                        described in subparagraph (A) are not 
                        based on the highest requirements in 
                        the State applicable to a specific 
                        profession or discipline, the State is 
                        taking steps to require retraining or 
                        hiring of personnel that meet 
                        appropriate professional requirements 
                        in the State; and
                          [(iii) allow paraprofessionals and 
                        assistants who are appropriately 
                        trained and supervised, in accordance 
                        with State law, regulations, or written 
                        policy, in meeting the requirements of 
                        this part to be used to assist in the 
                        provision of special education and 
                        related services to children with 
                        disabilities under this part.
                  [(C) Policy.--In implementing this paragraph, 
                a State may adopt a policy that includes a 
                requirement that local educational agencies in 
                the State make an ongoing good-faith effort to 
                recruit and hire appropriately and adequately 
                trained personnel to provide special education 
                and related services to children with 
                disabilities, including, in a geographic area 
                of the State where there is a shortage of such 
                personnel, the most qualified individuals 
                available who are making satisfactory progress 
                toward completing applicable course work 
                necessary to meet the standards described in 
                subparagraph (B)(i), consistent with State law, 
                and the steps described in subparagraph (B)(ii) 
                within three years.
          [(16) Performance goals and indicators.--The State--
                  [(A) has established goals for the 
                performance of children with disabilities in 
                the State that--
                          [(i) will promote the purposes of 
                        this Act, as stated in section 601(d); 
                        and
                          [(ii) are consistent, to the maximum 
                        extent appropriate, with other goals 
                        and standards for children established 
                        by the State;
                  [(B) has established performance indicators 
                the State will use to assess progress toward 
                achieving those goals that, at a minimum, 
                address the performance of children with 
                disabilities on assessments, drop-out rates, 
                and graduation rates;
                  [(C) will, every two years, report to the 
                Secretary and the public on the progress of the 
                State, and of children with disabilities in the 
                State, toward meeting the goals established 
                under subparagraph (A); and
                  [(D) based on its assessment of that 
                progress, will revise its State improvement 
                plan under subpart 1 of part D as may be needed 
                to improve its performance, if the State 
                receives assistance under that subpart.
          [(17) Participation in assessments.--
                  [(A) In general.--Children with disabilities 
                are included in general State and district-wide 
                assessment programs, with appropriate 
                accommodations, where necessary. As 
                appropriate, the State or local educational 
                agency--
                          [(i) develops guidelines for the 
                        participation of children with 
                        disabilities in alternate assessments 
                        for those children who cannot 
                        participate in State and district-wide 
                        assessment programs; and
                          [(ii) develops and, beginning not 
                        later than July 1, 2000, conducts those 
                        alternate assessments.
                  [(B) Reports.--The State educational agency 
                makes available to the public, and reports to 
                the public with the same frequency and in the 
                same detail as it reports on the assessment of 
                nondisabled children, the following:
                          [(i) The number of children with 
                        disabilities participating in regular 
                        assessments.
                          [(ii) The number of those children 
                        participating in alternate assessments.
                          [(iii)(I) The performance of those 
                        children on regular assessments 
                        (beginning not later than July 1, 1998) 
                        and on alternate assessments (not later 
                        than July 1, 2000), if doing so would 
                        be statistically sound and would not 
                        result in the disclosure of performance 
                        results identifiable to individual 
                        children.
                          [(II) Data relating to the 
                        performance of children described under 
                        subclause (I) shall be disaggregated--
                                  [(aa) for assessments 
                                conducted after July 1, 1998; 
                                and
                                  [(bb) for assessments 
                                conducted before July 1, 1998, 
                                if the State is required to 
                                disaggregate such data prior to 
                                July 1, 1998.
          [(18) Supplementation of state, local, and other 
        federal funds.--
                  [(A) Expenditures.--Funds paid to a State 
                under this part will be expended in accordance 
                with all the provisions of this part.
                  [(B) Prohibition against commingling.--Funds 
                paid to a State under this part will not be 
                commingled with State funds.
                  [(C) Prohibition against supplantation and 
                conditions for waiver by secretary.--Except as 
                provided in section 613, funds paid to a State 
                under this part will be used to supplement the 
                level of Federal, State, and local funds 
                (including funds that are not under the direct 
                control of State or local educational agencies) 
                expended for special education and related 
                services provided to children with disabilities 
                under this part and in no case to supplant such 
                Federal, State, and local funds, except that, 
                where the State provides clear and convincing 
                evidence that all children with disabilities 
                have available to them a free appropriate 
                public education, the Secretary may waive, in 
                whole or in part, the requirements of this 
                subparagraph if the Secretary concurs with the 
                evidence provided by the State.
          [(19) Maintenance of state financial support.--
                  [(A) In general.--The State does not reduce 
                the amount of State financial support for 
                special education and related services for 
                children with disabilities, or otherwise made 
                available because of the excess costs of 
                educating those children, below the amount of 
                that support for the preceding fiscal year.
                  [(B) Reduction of funds for failure to 
                maintain support.--The Secretary shall reduce 
                the allocation of funds under section 611 for 
                any fiscal year following the fiscal year in 
                which the State fails to comply with the 
                requirement of subparagraph (A) by the same 
                amount by which the State fails to meet the 
                requirement.
                  [(C) Waivers for exceptional or 
                uncontrollable circumstances.--The Secretary 
                may waive the requirement of subparagraph (A) 
                for a State, for one fiscal year at a time, if 
                the Secretary determines that--
                          [(i) granting a waiver would be 
                        equitable due to exceptional or 
                        uncontrollable circumstances such as a 
                        natural disaster or a precipitous and 
                        unforeseen decline in the financial 
                        resources of the State; or
                          [(ii) the State meets the standard in 
                        paragraph (18)(C) of this section for a 
                        waiver of the requirement to 
                        supplement, and not to supplant, funds 
                        received under this part.
                  [(D) Subsequent years.--If, for any year, a 
                State fails to meet the requirement of 
                subparagraph (A), including any year for which 
                the State is granted a waiver under 
                subparagraph (C), the financial support 
                required of the State in future years under 
                subparagraph (A) shall be the amount that would 
                have been required in the absence of that 
                failure and not the reduced level of the 
                State's support.
                  [(E) Regulations.--
                          [(i) The Secretary shall, by 
                        regulation, establish procedures 
                        (including objective criteria and 
                        consideration of the results of 
                        compliance reviews of the State 
                        conducted by the Secretary) for 
                        determining whether to grant a waiver 
                        under subparagraph (C)(ii).
                          [(ii) The Secretary shall publish 
                        proposed regulations under clause (i) 
                        not later than 6 months after the date 
                        of the enactment of the Individuals 
                        with Disabilities Education Act 
                        Amendments of 1997, and shall issue 
                        final regulations under clause (i) not 
                        later than 1 year after such date of 
                        enactment.
          [(20) Public participation.--Prior to the adoption of 
        any policies and procedures needed to comply with this 
        section (including any amendments to such policies and 
        procedures), the State ensures that there are public 
        hearings, adequate notice of the hearings, and an 
        opportunity for comment available to the general 
        public, including individuals with disabilities and 
        parents of children with disabilities.
          [(21) State advisory panel.--
                  [(A) In general.--The State has established 
                and maintains an advisory panel for the purpose 
                of providing policy guidance with respect to 
                special education and related services for 
                children with disabilities in the State.
                  [(B) Membership.--Such advisory panel shall 
                consist of members appointed by the Governor, 
                or any other official authorized under State 
                law to make such appointments, that is 
                representative of the State population and that 
                is composed of individuals involved in, or 
                concerned with, the education of children with 
                disabilities, including--
                          [(i) parents of children with 
                        disabilities;
                          [(ii) individuals with disabilities;
                          [(iii) teachers;
                          [(iv) representatives of institutions 
                        of higher education that prepare 
                        special education and related services 
                        personnel;
                          [(v) State and local education 
                        officials;
                          [(vi) administrators of programs for 
                        children with disabilities;
                          [(vii) representatives of other State 
                        agencies involved in the financing or 
                        delivery of related services to 
                        children with disabilities;
                          [(viii) representatives of private 
                        schools and public charter schools;
                          [(ix) at least one representative of 
                        a vocational, community, or business 
                        organization concerned with the 
                        provision of transition services to 
                        children with disabilities; and
                          [(x) representatives from the State 
                        juvenile and adult corrections 
                        agencies.
                  [(C) Special rule.--A majority of the members 
                of the panel shall be individuals with 
                disabilities or parents of children with 
                disabilities.
                  [(D) Duties.--The advisory panel shall--
                          [(i) advise the State educational 
                        agency of unmet needs within the State 
                        in the education of children with 
                        disabilities;
                          [(ii) comment publicly on any rules 
                        or regulations proposed by the State 
                        regarding the education of children 
                        with disabilities;
                          [(iii) advise the State educational 
                        agency in developing evaluations and 
                        reporting on data to the Secretary 
                        under section 618;
                          [(iv) advise the State educational 
                        agency in developing corrective action 
                        plans to address findings identified in 
                        Federal monitoring reports under this 
                        part; and
                          [(v) advise the State educational 
                        agency in developing and implementing 
                        policies relating to the coordination 
                        of services for children with 
                        disabilities.
          [(22) Suspension and expulsion rates.--
                  [(A) In general.--The State educational 
                agency examines data to determine if 
                significant discrepancies are occurring in the 
                rate of long-term suspensions and expulsions of 
                children with disabilities--
                          [(i) among local educational agencies 
                        in the State; or
                          [(ii) compared to such rates for 
                        nondisabled children within such 
                        agencies.
                  [(B) Review and revision of policies.--If 
                such discrepancies are occurring, the State 
                educational agency reviews and, if appropriate, 
                revises (or requires the affected State or 
                local educational agency to revise) its 
                policies, procedures, and practices relating to 
                the development and implementation of IEPs, the 
                use of behavioral interventions, and procedural 
                safeguards, to ensure that such policies, 
                procedures, and practices comply with this 
                Act.]
          (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.
                  (B) Standards described.--Such standards 
                shall--
                          (i) ensure that special education 
                        teachers who teach in core academic 
                        subjects are highly qualified in those 
                        subjects;
                          (ii) 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 
                        in order to ensure that such 
                        individuals are qualified to provide 
                        such services; 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) Innovative strategies for professional 
                development.--The State educational agency 
                encourages the development and use of research-
                based innovative strategies, such as strategies 
                using technology, peer networks, and distance 
                learning, to deliver intensive professional 
                development programs for special and regular 
                education teachers, administrators, principals, 
                and related services personnel that--
                          (i) improve educational results for 
                        students with disabilities; and
                          (ii) are both cost-effective and 
                        easily accessible.
          (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 dropout 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 those goals described in subparagraph 
                (A), including measurable annual objectives for 
                progress by children with disabilities under 
                section 1111(b)(2)(C) 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), which may include elements of 
                the reports required under section 1111(h) of 
                the Elementary and Secondary Education Act of 
                1965.
          (16) Participation in assessments.--
                  (A) In general.--(i) All children with 
                disabilities are included in all general State 
                and district-wide assessment programs, 
                including assessments described under title I 
                of the Elementary and Secondary Education Act 
                of 1965, with appropriate accommodations, where 
                necessary and as indicated in their respective 
                individualized education programs.
                  (ii) The State (or, in the case of a 
                district-wide assessment, the local educational 
                agency) has developed and implemented 
                guidelines for the provision of accommodations 
                described in clause (i).
                  (iii) The State (or, in the case of a 
                district-wide assessment the local educational 
                agency)--
                          (I) 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 clause (i); and
                          (II) conducts those alternate 
                        assessments.
                  (B) Reports.--The State educational agency 
                (or, in the case of a district-wide 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.
                          (iii) 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 would not reveal personally 
                        identifiable information about an 
                        individual student), compared with the 
                        achievement of all children, including 
                        children with disabilities, on those 
                        assessments.
          (17) Dispute resolution.--The State has in effect 
        systems of mediation and voluntary binding arbitration 
        pursuant to section 615(e).
          (18) Supplementation of state, local, and other 
        federal funds.--
                  (A) Expenditures.--Funds paid to a State 
                under this part will be expended in accordance 
                with all the provisions of this part.
                  (B) Prohibition against commingling.--Funds 
                paid to a State under this part will not be 
                commingled with State funds.
                  (C) Prohibition against supplantation and 
                conditions for waiver by secretary.--Except as 
                provided in section 613, funds paid to a State 
                under this part will be used to supplement the 
                level of Federal, State, and local funds 
                (including funds that are not under the direct 
                control of State or local educational agencies) 
                expended for special education and related 
                services provided to children with disabilities 
                under this part and in no case to supplant such 
                Federal, State, and local funds, except that, 
                where the State provides clear and convincing 
                evidence that all children with disabilities 
                have available to them a free appropriate 
                public education, the Secretary may waive, in 
                whole or in part, the requirements of this 
                subparagraph if the Secretary concurs with the 
                evidence provided by the State.
          (19) Maintenance of state financial support.--
                  (A) In general.--The State does not reduce 
                the amount of State financial support for 
                special education and related services for 
                children with disabilities, or otherwise made 
                available because of the excess costs of 
                educating those children, below the amount of 
                that support for the preceding fiscal year.
                  (B) Reduction of funds for failure to 
                maintain support.--The Secretary shall reduce 
                the allocation of funds under section 611 for 
                any fiscal year following the fiscal year in 
                which the State fails to comply with the 
                requirement of subparagraph (A) by the same 
                amount by which the State fails to meet the 
                requirement.
                  (C) Waivers for exceptional or uncontrollable 
                circumstances.--The Secretary may waive the 
                requirement of subparagraph (A) for a State, 
                for one fiscal year at a time, if the Secretary 
                determines that--
                          (i) granting a waiver would be 
                        equitable due to exceptional or 
                        uncontrollable circumstances such as a 
                        natural disaster or a precipitous and 
                        unforeseen decline in the financial 
                        resources of the State; or
                          (ii) the State meets the standard in 
                        paragraph (18)(C) of this section for a 
                        waiver of the requirement to 
                        supplement, and not to supplant, funds 
                        received under this part.
                  (D) Subsequent years.--If, for any year, a 
                State fails to meet the requirement of 
                subparagraph (A), including any year for which 
                the State is granted a waiver under 
                subparagraph (C), the financial support 
                required of the State in future years under 
                subparagraph (A) shall be the amount that would 
                have been required in the absence of that 
                failure and not the reduced level of the 
                State's support.
          (20) Public participation.--Prior to the adoption of 
        any policies and procedures needed to comply with this 
        section (including any amendments to such policies and 
        procedures), the State ensures that there are public 
        hearings, adequate notice of the hearings, and an 
        opportunity for comment available to the general 
        public, including individuals with disabilities and 
        parents of children with disabilities.
          (21) State advisory panel.--
                  (A) In general.--The State has established 
                and maintains an advisory panel for the purpose 
                of providing policy guidance with respect to 
                special education and related services for 
                children with disabilities in the State.
                  (B) Membership.--Such advisory panel shall 
                consist of members appointed by the Governor, 
                or any other official authorized under State 
                law to make such appointments, that is 
                representative of the State population and that 
                is composed of individuals involved in, or 
                concerned with, the education of children with 
                disabilities, including--
                          (i) parents of children with 
                        disabilities (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 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 ages birth through 26.
                  (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, including data disaggregated by 
                race and ethnicity, 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 positive behavioral interventions and 
                supports, and procedural safeguards, to ensure 
                that such policies, procedures, and practices 
                comply with this Act.
          (23) Instructional materials.--
                  (A) In general.--The State adopts the 
                national instructional materials accessibility 
                standard 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 by the Secretary in the Federal 
                Register.
                  (B) Purchase requirement.--Not later than 2 
                years after the date of the enactment of the 
                Improving Education Results for Children With 
                Disabilities Act of 2003, the State educational 
                agency, when purchasing instructional materials 
                for use in public elementary and secondary 
                schools within the State, requires the 
                publisher of the instructional materials, as a 
                part of any purchase agreement that is made, 
                renewed, or revised, to prepare and supply 
                electronic files containing the contents of the 
                instructional materials using the national 
                instructional materials accessibility standard.
                  (C) Definition.--For purposes of this 
                paragraph, the term ``instructional materials'' 
                means printed textbooks and related 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.
          (24) Overidentification and disproportionality.--The 
        State has in effect, consistent with the purposes of 
        this Act and with section 618, policies and procedures 
        designed to prevent the overidentification or 
        disproportionate representation by race and ethnicity 
        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).
          (25) Prohibition on psychotropic medication.--The 
        State educational agency develops and implements 
        policies and procedures prohibiting school personnel 
        from requiring a child to obtain a prescription for 
        substances covered by section 202(c) of the Controlled 
        Substances Act (21 U.S.C. 812(c)) as a condition of 
        attending school or receiving services.
  [(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 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.]
  (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 
        Improving Education Results for Children With 
        Disabilities 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 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 Improving Education 
        Results for Children With Disabilities Act of 2003, 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 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.

           *       *       *       *       *       *       *


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

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

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

SEC. 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 
reasonably demonstrates to 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) If a local educational agency 
                        chooses to use the authority under 
                        clause (i), then the agency shall use 
                        those local funds to provide additional 
                        funding for programs under the 
                        Elementary and Secondary Education Act 
                        of 1965, including, but not limited to, 
                        programs that address student 
                        achievement, comprehensive school 
                        reform, literacy, teacher quality and 
                        professional development, school 
                        safety, before- and after- school 
                        learning opportunities.
                          (iii) Notwithstanding clause (i), if 
                        a State educational agency determines 
                        that a local educational agency is 
                        unable to establish and maintain 
                        programs of free appropriate public 
                        education that meet the requirements of 
                        subsection (a), the State educational 
                        agency shall prohibit the local 
                        educational agency from treating funds 
                        received under this part as local funds 
                        under clause (i) for that fiscal year, 
                        but 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 
                        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 of this Act and section 1119 of the Elementary and 
        Secondary Education Act of 1965.
          (4) Permissive use of funds.--Notwithstanding 
        paragraph (2)(A) or section 612(a)(18)(B) (relating to 
        commingled funds), funds provided to the local 
        educational agency under this part may be used for the 
        following activities:
                  (A) Services and aids that also benefit 
                nondisabled children.--For the costs of special 
                education and related services and 
                supplementary aids and services provided in a 
                regular class or other education-related 
                setting to a child with a disability in 
                accordance with the individualized education 
                program of the child, even if one or more 
                nondisabled children benefit from such 
                services.
                  (B) Prereferral services.--To develop and 
                implement a system of comprehensive coordinated 
                prereferral education support services in 
                accordance with subsection (f).
                  (C) High cost education and related 
                services.--To establish and implement cost or 
                risk sharing funds, consortia, or cooperatives 
                for the agency itself, or for local educational 
                agencies working in consortium of which the 
                local educational agency is a part, to pay for 
                high cost special education and related 
                services.
                  (D) Case management and administration.--To 
                purchase appropriate technology for record 
                keeping, data collection, and related case 
                management activities of teachers and related 
                services personnel who are providing services 
                described in the individualized education 
                program of children with disabilities necessary 
                to the implementation of those case management 
                activities.
                  (E) Supplemental educational services for 
                children with disabilities in schools 
                designated for improvement.--For the reasonable 
                additional expenses (as determined by the local 
                educational agency) of any necessary 
                accommodations to allow children with 
                disabilities who are being educated in a school 
                identified for school improvement under section 
                1116(b) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6316(b)) to be 
                provided supplemental educational services 
                under section 1116(e) of such Act on an 
                equitable basis.
          (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, including providing supplemental 
                and related services on site at the charter 
                school when the local educational agency has a 
                policy or practice of providing those services 
                on site to its other schools; and
                  (B) provides funds under this part to those 
                schools on the same basis as it provides those 
                funds to its other public schools (including, 
                at the option of such agency, proportional 
                distribution based on relative enrollment of 
                children with disabilities at such charter 
                schools), and at the same time as such agency 
                distributes other Federal funds to those 
                schools, consistent with the State's charter 
                law.
          (6) Purchase of instructional materials.--Not later 
        than 2 years after the date of the enactment of the 
        Improving Education Results for Children With 
        Disabilities Act of 2003, the local educational agency, 
        when purchasing instructional materials for use in 
        public elementary and secondary schools within the 
        local educational agency, requires the publisher of the 
        instructional materials, as a part of any purchase 
        agreement that is made, renewed, or revised, to prepare 
        and supply electronic files containing the contents of 
        the instructional materials using the national 
        instructional materials accessibility standard 
        described in section 612(a)(23).
          (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 
        Improving Education Results for Children With 
        Disabilities 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 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 date of the enactment of the 
        Improving Education Results for Children With 
        Disabilities Act of 2003, the provisions of this Act 
        are amended (or the regulations developed to carry out 
        this Act are amended), or there is a new interpretation 
        of this Act by Federal or State courts, or there is an 
        official finding of noncompliance with Federal or State 
        law or regulations, the State educational agency may 
        require a local educational agency to modify its 
        application only to the extent necessary to ensure the 
        local educational agency's compliance with this part or 
        State law.
  (c) Notification of Local Educational Agency or State Agency 
in Case of Ineligibility.--If the State educational agency 
determines that a local educational agency or State agency is 
not eligible under this section, the State educational agency 
shall notify the local educational agency or State agency, as 
the case may be, of that determination and shall provide such 
local educational agency or State agency with reasonable notice 
and an opportunity for a hearing.
  (d) Local Educational Agency Compliance.--
          (1) In general.--If the State educational agency, 
        after reasonable notice and an opportunity for a 
        hearing, finds that a local educational agency or State 
        agency that has been determined to be eligible under 
        this section is failing to comply with any requirement 
        described in subsection (a), the State educational 
        agency shall reduce or shall not provide any further 
        payments to the local educational agency or State 
        agency until the State educational agency is satisfied 
        that the local educational agency or State agency, as 
        the case may be, is complying with that requirement.
          (2) Additional requirement.--Any State agency or 
        local educational agency in receipt of a notice 
        described in paragraph (1) shall, by means of public 
        notice, take such measures as may be necessary to bring 
        the pendency of an action pursuant to this subsection 
        to the attention of the public within the jurisdiction 
        of such agency.
          (3) Consideration.--In carrying out its 
        responsibilities under paragraph (1), the State 
        educational agency shall consider any decision made in 
        a hearing held under section 615 that is adverse to the 
        local educational agency or State agency involved in 
        that decision.
  (e) Joint Establishment of Eligibility.--
          (1) Joint establishment.--
                  (A) In general.--A State educational agency 
                may require a local educational agency to 
                establish its eligibility jointly with another 
                local educational agency if the State 
                educational agency determines that the local 
                educational agency would be ineligible under 
                this section because the local educational 
                agency would not be able to establish and 
                maintain programs of sufficient size and scope 
                to effectively meet the needs of children with 
                disabilities.
                  (B) Charter school exception.--A State 
                educational agency may not require a charter 
                school that is a local educational agency to 
                jointly establish its eligibility under 
                subparagraph (A) unless it is explicitly 
                permitted to do so under the State's charter 
                school statute.
          (2) Amount of payments.--If a State educational 
        agency requires the joint establishment of eligibility 
        under paragraph (1), the total amount of funds made 
        available to the affected local educational agencies 
        shall be equal to the sum of the payments that each 
        such local educational agency would have received under 
        section 611(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) Prereferral Services.--
          (1) In general.--A local educational agency may use 
        not more than 15 percent of the amount such agency 
        receives under this part for any fiscal year, in 
        combination with other amounts (which may include 
        amounts other than education funds), to develop and 
        implement comprehensive coordinated prereferral 
        educational support services for students in 
        kindergarten through grade 12 (with a particular 
        emphasis on students in grades kindergarten through 3) 
        who have not been identified as needing special 
        education or related services but who need additional 
        academic and behavioral support to succeed in a general 
        education environment.
          (2) Activities.--In implementing comprehensive 
        coordinated prereferral educational services under this 
        subsection, a local educational agency may carry out 
        the following activities:
                  (A) Professional development (which may be 
                provided by entities other than local 
                educational agencies) for teachers to enable 
                them to deliver scientifically based academic 
                and behavioral interventions, including 
                scientifically based literacy instruction and 
                speech therapy.
                  (B) Providing educational evaluations, 
                services, and supports, including 
                scientifically based literacy instruction.
                  (C) Providing behavioral evaluations and 
                services and supports, including positive 
                behavioral interventions and supports.
          (3) Exclusion.--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 comprehensive coordinated 
        prereferral educational support services under this 
        subsection shall annually report to the State 
        educational agency on--
                  (A) the number of students served under this 
                subsection; and
                  (B) the number of students served under this 
                subsection who subsequently receive special 
                education and related services under this Act 
                during the preceding 2-year period.
          (5) Coordination with the elementary and secondary 
        education act of 1965.--
                  (A) In general.--Comprehensive coordinated 
                prereferral educational support services 
                provided under this subsection may be aligned 
                with activities funded by, and carried out 
                under, the Elementary and Secondary Education 
                Act of 1965, such as the Reading First program 
                under subpart 1 of part B of title I of such 
                Act, the Early Reading First program under 
                subpart 2 of part B of title I of such Act, 
                reading and math supports under part A of title 
                I of such Act, and behavior intervention 
                supports, that improve results for children 
                with disabilities.
                  (B) Maintenance of effort.--Funds used under 
                this section shall be used to supplement, and 
                not supplant, funds made available under the 
                Elementary and Secondary Education Act of 1965.
  (g) Direct Services by the State Educational Agency.--
          (1) In general.--A State educational agency shall use 
        the payments that would otherwise have been available 
        to a local educational agency or to a State agency to 
        provide special education and related services directly 
        to children with disabilities residing in the area 
        served by that local agency, or for whom that State 
        agency is responsible, if the State educational agency 
        determines that the local education agency or State 
        agency, as the case may be--
                  (A) has not provided the information needed 
                to establish the eligibility of such agency 
                under this section;
                  (B) is unable to establish and maintain 
                programs of free appropriate public education 
                that meet the requirements of subsection (a);
                  (C) is unable or unwilling to be consolidated 
                with one or more local educational agencies in 
                order to establish and maintain such programs; 
                or
                  (D) has one or more children with 
                disabilities who can best be served by a 
                regional or State program or service-delivery 
                system designed to meet the needs of such 
                children.
          (2) Manner and location of education and services.--
        The State educational agency may provide special 
        education and related services under paragraph (1) in 
        such manner and at such locations (including regional 
        or State centers) as the State agency considers 
        appropriate. Such education and services shall be 
        provided in accordance with this part.
  (h) State Agency Eligibility.--Any State agency that desires 
to receive a subgrant for any fiscal year under section 611(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 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, Parental Consent, 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, a State educational agency, 
                other State agency as appropriate, 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)); and
                          (ii) to determine the educational 
                        needs of such child.
                  (D) Parental consent.--
                          (i) In general.--
                                  (I) Consent for initial 
                                evaluation.--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 informed consent 
                                from the parent of such child 
                                before conducting the 
                                evaluation. Parental consent 
                                for evaluation shall not be 
                                construed as consent for 
                                placement for receipt of 
                                special education and related 
                                services.
                                  (II) Consent for services.--
                                An agency that is responsible 
                                for making a free appropriate 
                                public education available to a 
                                child with a disability under 
                                this part shall seek to obtain 
                                informed consent from the 
                                parent of such child before 
                                providing special education and 
                                related services to the child.
                          (ii) Absence of consent.--
                                  (I) For initial evaluation.--
                                If the parent of such child 
                                does not provide consent for an 
                                initial evaluation under clause 
                                (i)(I), or the parent fails to 
                                respond to a request to provide 
                                the consent, the local 
                                educational agency may pursue 
                                the initial evaluation of the 
                                child through the procedures 
                                described in section 615, 
                                except to the extent 
                                inconsistent with State law 
                                relating to such parental 
                                consent.
                                  (II) For services.--If the 
                                parent of such child does not 
                                provide consent for services 
                                under clause (i)(II), or the 
                                parent fails to respond to a 
                                request to provide the consent, 
                                the local educational agency 
                                shall not provide special 
                                education and related services 
                                to the child through the 
                                procedures described in section 
                                615.
                                  (III) Effect on agency 
                                obligations.--In any case for 
                                which there is an absence of 
                                consent for an initial 
                                evaluation under subclause (I), 
                                or for which there is an 
                                absence of consent for services 
                                under subclause (II)--
                                          (aa) the local 
                                        educational agency 
                                        shall not be required 
                                        to convene an IEP 
                                        meeting or develop an 
                                        IEP under this section 
                                        for the child; and
                                          (bb) the local 
                                        educational agency 
                                        shall not be considered 
                                        to be in violation of 
                                        any requirement under 
                                        this part (including 
                                        the requirement to make 
                                        available a free 
                                        appropriate public 
                                        education to the child) 
                                        with respect to the 
                                        lack of an initial 
                                        evaluation of the 
                                        child, an IEP meeting 
                                        with respect to the 
                                        child, or the 
                                        development of an IEP 
                                        under this section for 
                                        the child.
                  (E) Rule of construction.--The screening of a 
                student by a teacher or specialist to determine 
                appropriate instructional strategies for 
                curriculum implementation shall not be 
                considered to be an evaluation for eligibility 
                for special education and related services.
          (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 needs, 
                        including improved academic 
                        achievement, of the child warrant a 
                        reevaluation; or
                          (ii) if the child's parent or teacher 
                        requests a reevaluation.
                  (B) Limitation.--A reevaluation conducted 
                under subparagraph (A) shall occur--
                          (i) no more than once a year, unless 
                        the parent and the local educational 
                        agency agree otherwise; and
                          (ii) at least once every three 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 parent 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 multiple up-to-date measures and 
                assessments to gather relevant functional, 
                developmental, and academic information, 
                including information provided by the parent, 
                to 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 education 
                        curriculum or, for preschool children, 
                        to participate in appropriate 
                        activities;
                  (B) not use any single 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) assessments and other evaluation measures 
                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 academic and developmental 
                        data;
                          (iii) are used for the 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 and educational 
        need.--Upon completion of the administration of 
        assessments and other evaluation measures--
                  (A) the determination of whether the child is 
                a child with a disability as defined in section 
                602(3) and the educational needs of the child 
                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--
                  (A) lack of scientifically based instruction 
                practices and programs that contain the 
                essential components of reading instruction (as 
                that term is defined in section 1208(3) of the 
                Elementary and Secondary Education Act of 
                1965);
                  (B) lack of instruction in math; or
                  (C) limited English proficiency.
          (6) Specific learning disabilities.--
                  (A) In general.--Notwithstanding section 607 
                of this Act, when determining whether a child 
                has a specific learning disability as defined 
                under this Act, the local educational agency 
                shall not be required to take into 
                consideration whether the 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 which determines if a child responds 
                to scientific, research-based intervention.
  (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 local or State assessments, and 
                classroom-based 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 is a child with 
                        a disability as defined in section 
                        602(3), and the educational needs of 
                        the child, or, in case of a 
                        reevaluation of a child, whether the 
                        child continues to have such a 
                        disability and such educational needs;
                          (ii) the present levels of academic 
                        achievement and related developmental 
                        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 education 
                        curriculum.
          (2) Source of data.--The local educational agency 
        shall administer such assessments and other evaluation 
        measures 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 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 and to determine the child's 
        educational needs, 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 to 
                        determine the child's educational 
                        needs; and
                  (B) shall not be required to conduct such an 
                assessment unless requested to by the child's 
                parents.
          (5) Evaluations before change in eligibility.--A 
        local educational agency shall evaluate a child with a 
        disability in accordance with this section prior to 
        graduation, and before determining that the child is no 
        longer a child with a disability, only in instances 
        where the IEP Team is not in agreement regarding the 
        change in eligibility.
  (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, 
                                including--
                                          (aa) how the child's 
                                        disability affects the 
                                        child's involvement and 
                                        progress in the general 
                                        education curriculum;
                                          (bb) for preschool 
                                        children, as 
                                        appropriate, how the 
                                        disability affects the 
                                        child's participation 
                                        in appropriate 
                                        activities; and
                                          (cc) until the 
                                        beginning of the 2005-
                                        2006 school year, a 
                                        description of 
                                        benchmarks or short-
                                        term objectives, except 
                                        in the case of children 
                                        with disabilities who 
                                        take alternate 
                                        assessments aligned to 
                                        alternate achievement 
                                        standards, a 
                                        description of 
                                        benchmarks or short-
                                        term objectives shall 
                                        continue to be