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

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



 
              INDIVIDUALS WITH DISABILITIES EDUCATION ACT

                                _______
                                

                November 3, 2003.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1248]

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

                                CONTENTS

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

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

                            I. Introduction

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

                        II. Purpose and Summary

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

                III. Background and Need for Legislation

    Congress established a State grant program for the 
Education of Handicapped Children under title VI of the 
Elementary and Secondary Education Amendments of 1966 (P.L. 89-
750). In 1970, Congress authorized the Education of the 
Handicapped Act (EHA) as title VI of P.L. 91-230. With the 
enactment of P.L. 91-230, the State grant program established 
in 1966 was redesignated as part B of the EHA.
    In 1975, Congress passed the Education for All Handicapped 
Children Act, P.L. 94-142. It amended part B, the State grant 
program in the EHA. P.L. 94-142 refined and expanded 
requirements for State participation in the State grant 
program. In accepting State grant funds, a State was required 
to provide a free appropriate public education (FAPE) to all 
children with disabilities in the State according to specific 
procedures and civil rights protections.
    From 1979 through 1994, a series of amendments to the EHA 
refined and increased in number discretionary programs in 
personnel preparation, research, demonstration, and technical 
assistance. In 1986, the Handicapped Children's Protection Act, 
P.L. 99-372, was enacted. In amending part B of the EHA, P.L. 
99-372 authorized attorneys' fees for parents who prevail in 
due process proceedings and judicial actions against school 
districts. Also in 1986, P.L. 99-457 was enacted, creating a 
new part H in the EHA. Part H provides funds for State programs 
in early intervention services for infants and toddlers with 
disabilities from birth through two years of age. The EHA 
amendments of 1990, P.L. 101-476, renamed the statute as the 
Individuals with Disabilities Education Act (IDEA). In 1994, 
P.L. 103-382, the Improving America's Schools Act of 1994, 
eliminated the separate authorization for the chapter 1 
Handicapped Program and merged its authorization for funding 
with part B funding under the IDEA and gave school districts 
the discretion to remove children with disabilities to an 
interim alternative educational setting for up to 45 days when 
such children bring firearms to school.
    In the 105th Congress, the ``Individuals with Disabilities 
Education Act Amendments of 1997,'' P.L. 105-17, was enacted 
into law. Amendments to the legislation were comprehensive in 
nature and addressed a wide range of legal and programmatic 
issues affecting early intervention and special education. The 
1997 law required that the individualized education program of 
each child with a disability relate programming for the child 
to achievement in the general education curriculum. Further, 
States had to establish performance goals and indicators for 
children with disabilities as well as include them in 
assessments. Schools were given specific statutory authority 
regarding discipline of students with disabilities, and new, 
but limited, authority was given to hearing officers to change 
the placement of children with disabilities. The law was 
clarified to ensure that children with disabilities were 
specifically entitled to special educational services, even if 
expelled from school. States were required to ensure that 
parents were offered mediation before going to a formal due 
process hearing over a dispute. The 1997 amendments also 
created new State and substate formulas in the grants to States 
and preschool programs, generally basing grant amounts on 
broader population factors rather than counts of children with 
disabilities served. When federal appropriations for the grants 
to States program exceed $4.1 billion and a school district 
received a larger award, the district would be permitted to 
reduce local spending on special education by a certain amount. 
The 14 discretionary grant programs were consolidated into two 
new special purpose programs. A third new special purpose 
program focuses on statewide special education reform.
    During this reauthorization of the Individuals with 
Disabilities Education Act, the committee believes it is 
crucial to concentrate on improving educational outcomes for 
children by focusing on accountability for results. The 
committee believes this can be accomplished by a number of 
means, including supporting teachers and other staff by 
providing high quality training and reducing paperwork burdens, 
encouraging more efficient and effective conflict resolution 
between parents and schools, providing earlier access to 
services and supports to children to reduce the need for IDEA 
services, and improving funding.
    In the 107th Congress, the Committee on Health, Education, 
Labor, and Pension held four hearings to solicit 
recommendations for the reauthorization of IDEA.
    On March 21, 2002, at a hearing entitled: ``IDEA: What's 
Good for Kids? What Works for Schools?'', the following 
individuals testified: Robert Pasternack, Assistant Secretary, 
Office of Special Education and Rehabilitative Services, U.S. 
Department of Education, Washington, DC; Lilliam Rangel-Diaz, 
Board of Directors, National Council on Disability, Washington, 
DC; Valarie Findley, Parent, Des Moines, Iowa; Bob Runkel, 
Montana State Director of Special Education, Helena, Montana; 
Bob Vaadeland, Superintendent, Minnewaska Area Schools, 
Glenwood, Minnesota; and Kim Ratcliffe, Director of Special 
Education of Columbia Public Schools, Columbia, Missouri.
    On April 25, 2002, at a hearing entitled: ``IDEA: 
Behavioral Supports in Schools,'' the following individuals 
testified: Sarah A. Flanagan, Falls Church,Virginia; Kathleen 
B. Boundy, J.D., Co-Director, Center for Law and Education, 
Boston, Massachusetts; George Sugai, Ph.D., Co-Director, Center 
on Positive Behavioral Interventions and Supports, University 
of Oregon; Marsha Weissman, Executive Director, Center for 
Community Alternatives, Inc., Syracuse, New York; and Dr. 
Ronnie M. Jackson, Superintendent, Dale County School District, 
Dale County, Alabama.
    On June 6, 2002, at a hearing entitled: ``Accountability 
and IDEA: What Happens When the Bus Doesn't Come Anymore?'', 
the following individuals testified: Marisa Brown, Parent, 
Vienna, Virginia; David W. Gordon, Superintendent, Elk Grove 
Unified School District, Elk Grove, California; Stan Shaw, 
Professor and Coordinator, Special Education Program, 
University of Connecticut, Storrs, Connecticut; Arlene 
Mayerson, Directing Attorney, Disability Rights Education 
Defense Fund, Inc., Berkeley, California; and Lawrence C. 
Gloeckler, Deputy Commissioner, Vocational and Educational 
Services for Individuals with Disabilities, New York State 
Education Department, Albany, New York.
    On July 9, 2002, the following individuals testified at a 
hearing on the President's Commission on Excellence in Special 
Education: Terry Branstad, Chairman, President's Commission on 
Excellence in Special Education, Washington, DC; Douglas Gill, 
Chair, Finance Task Force, President's Commission on Excellence 
in Special Education, Washington, DC; and Douglas Huntt, Chair, 
Transition Task Force, President's Commission on Excellence in 
Special Education, Washington, DC.
    In addition, between June 16 and 19, 2003, both majority 
and minority staff for the committee met with 83 groups to hear 
their concerns and recommendations regarding S. 1248.

     THE PRESIDENT'S COMMISSION ON EXCELLENCE IN SPECIAL EDUCATION

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

          THE PRESIDENT'S PRINCIPLES FOR IDEA REAUTHORIZATION

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

              IV. Legislative History and Committee Action

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

               V. Explanation of Bill and Committee Views

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

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

Amendments to part A of the Individuals with Disabilities Education Act

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

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

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

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

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

Amendments to part B of the Individuals With Disabilities Education Act

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Amendments to Part C of the Individuals with Disabilities Education Act

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

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

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

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

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

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

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

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

Amendments to part D of the Individuals with Disabilities Education Act

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

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

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

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

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

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

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

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

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

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

Subpart 3, supports to improve results for children with disabilities

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

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

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

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

         TITLE II--AMENDMENTS TO THE REHABILITATION ACT OF 1973

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

       TITLE III--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

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

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

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

                           VI. Cost Estimate

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

                    VII. Regulatory Impact Statement

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

           VIII. Application of Law to the Legislative Branch

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

                    IX. Section-by-Section Analysis

    Section 1 of the bill provides that the title of the Act is 
the ``Individuals with Disabilities Education Improvement Act 
of 2003.''
    Section 2 provides that the legislation is organized into 
four titles: title I, Amendments to the Individuals with 
Disabilities Education Act; title II, Amendments to the 
Rehabilitation Act of 1973; title III the National Center for 
Special Education Research; and title IV, the Commission on 
Universal Design and the Accessibility of Curriculum and 
Instructional Materials.
    Section 101 of the bill amends the current provisions of 
the Individuals with Disabilities Education Act as follows.

Part A

    Section 601 contains the short title of the Act, the Table 
of Contents, the findings, and the purposes.
    Section 602 defines key terms used in this title, 
including: Assistive Technology Device, Assistive Technology 
Service, Child with a Disability, Core Academic Subject, 
Educational Service Agency, Elementary School, Equipment, 
Excess Costs, Free Appropriate Public Education, Highly 
Qualified Special Education Teacher, Consultative Services, 
Indian, Indian Tribe, Individualized Education Program, 
Individualized Family Service Plan, Infant or Toddler with a 
Disability, Institution of Higher Education, Limited English 
Proficiency, Local Educational Agency, Native Language, 
Nonprofit, Outlying Area, Parent, Parent Organization, Parent 
Training and Information Center, Related Services, Secondary 
School, Secretary, Special Education, Specific Learning 
Disability, State, State Educational Agency, Supplementary Aids 
and Services, and Transition Services.
    Section 603 authorizes the Office of Special Education 
Programs headed by a Director who is selected by the Secretary 
and also authorizes the Secretary to accept the work of 
volunteers in carrying out the Act.
    Section 604 denies a State immunity under the Eleventh 
Amendment to the Constitution of the United States for 
violating this Act. This section also provides for remedies for 
a violation and for an effective date for the provision with 
respect to violations.
    Section 605 authorizes the acquisition of equipment and 
construction of necessary facilities, and provides that any 
construction must meet specified accessibility standards.
    Section 606 directs each recipient of funds under this act 
to make positive efforts to employ individuals with 
disabilities in programs assisted under this Act.
    Section 607 includes requirements for prescribing 
regulations, issuing policy letters by the Department of 
Education, and the publication of correspondence from the 
Department of Education describing interpretations of this Act.
    Section 608 requires States receiving funds under this Act 
to ensure that any State rules, regulations and policies 
relating to this Act conform to the purposes of this Act and to 
identify in writing to its local educational agencies and the 
Secretary any rule, regulation, or policy as a State-imposed 
requirement that is not required by this Act and Federal 
regulations. State rules, regulations and policies under this 
Act shall support reform designed to enable children with 
disabilities to meet State student academic achievement 
standards.
    Section 609 requires the Comptroller General to conduct a 
review of the Federal, State, and local requirements relating 
to the education of children with disabilities to determine 
which requirements result in excessive paperwork and to make 
strategic proposals for reducing paperwork burdens on teachers.

Part B

    Section 611(a) authorizes the Secretary to provide grants 
to the States and outlying areas and funds to the Secretary of 
the Interior to provide special education and related services 
to children with disabilities and specifies the maximum amount 
available for awarding grants.
    Section 611(b) requires a reserve from funds appropriated 
under subsection (i) to provide assistance to the outlying 
areas and to provide each freely associated State that meets 
relevant requirements a grant equal to the amount it received 
under this part in FY2003.
    Section 611(c) specifies the proportion of funds to be 
provided to the Secretary of the Interior.
    Section 611(d) includes the allotment formula for making 
part B grants to States based on an initial allotment of the 
State's FY1999 grant with 85 percent of remaining funds 
distributed on population, 15 percent of remaining funds 
distributed on poverty and certain limitations on how much 
States' grants can increase from one year to the next.
    Section 611(e) specifies the States' use of part B funds, 
including the use of funds for State administration and other 
State-level activities. State reserves for administration are 
limited to the greater of the amount reserved for FY2003 or 
$800,000 increased by inflation for subsequent years. State 
reserves for other State-level activities are linked to 
percentages of the overall grant for FY2004 and FY2005, with 
reserves thereafter through FY2009 increased by inflation. 
States must also reserve 2 percent of their State grant (less 
the amount reserved for State administration) to establish a 
risk pool, or fund an existing risk pool, to provide funds to 
LEAs serving high-need children with disabilities.
    Section 611(f) specifies the allotment formula for 
subgrants to LEAs, which is similar to the State grants 
formula.
    Section 611(g) contains definitions of ``average per-pupil 
expenditure'' and ``State'' applicable to this section.
    Section 611(h) addresses the use of funds provided to the 
Secretary of the Interior for the education of children with 
disabilities living on reservations or enrolled in elementary 
or secondary schools for Indian children operated or funded by 
the Secretary of the Interior.
    Section 611(i) authorizes the appropriation of such sums as 
may be necessary for the purpose of carrying out part B, except 
for section 619, which authorizes services for preschool 
children with disabilities ages 3 to 5.
    Section 612(a) describes the policies and procedures that a 
State must have in effect to be eligible for receipt of funds 
under part B of the Act, including policies and procedures 
relating to: Free Appropriate Public Education; Child Find; 
Individualized Education Program; Least Restrictive 
Environment; Procedural Safeguards; Evaluation; 
Confidentiality; Transition from part C to Preschool Programs; 
Children in Private Schools; State Education Agency Responsible 
for General Supervision; Obligations Relating to and Methods 
for Ensuring Services, including designation of financial 
responsibility; Procedural Requirement Relating to LEA 
Eligibility; Personnel Standards; Performance Goals and 
Indicators (including provisions to align IDEAwith the No Child 
Left Behind Act (NCLBA)); Participation in Assessments (including 
provisions to align IDEA with the NCLBA); Supplementation of State, 
Local and other Federal Funds; Maintenance of State Financial Support; 
Public Participation; State Advisory Panel; Supervision and Expulsion 
Rates; and Accessibility Standards for Instructional Materials.
    Section 612(b) lists the additional requirements under 
section 613(a) that a State Education Agency must meet if it 
provides a free appropriate public education or direct services 
to children with disabilities.
    Section 612(c) includes conditions under which States are 
required to submit amended policies and procedures to the 
Secretary, and the Secretary's responsibilities under this 
section.
    Section 612(d) describes what actions the Secretary must 
take in approving a State's eligibility, and before making a 
final determination that a State is not eligible.
    Section 612(e) provides that nothing in the IDEA permits a 
State to reduce medical and other assistance available, or to 
alter eligibility, under Titles V and XIX of the Social 
Security Act (Maternal and Child Health Services and Medicaid) 
with respect to the provision of a free appropriate public 
education for children with disabilities within the State.
    Section 612(f) directs the Secretary to arrange for the 
provision of special education to children with disabilities in 
private schools if, in 1983, a State was prohibited by State 
law from providing that education.
    Section 613(a) sets out the local eligibility requirements 
under part B. The section provides that to be eligible for any 
fiscal year, an LEA must demonstrate to the satisfaction of the 
SEA that its policies, procedures, and programs are consistent 
with the State policies and procedures described under section 
612; and that the LEA uses its part B funds in accordance with 
the specified requirements of this section; meets the personnel 
development requirements; and provides the SEA with information 
to enable that agency to carry out its duties under this part. 
The section permits LEAs to treat as local funds a portion of 
their part B grant for the purposes of meeting non-supplanting 
and maintenance of effort requirements. The section also 
permits LEAs to use the part B funds for various specified 
purposes, such as early intervention services and case 
management and administration. The section addresses the 
treatment of charter schools and the disabled children that 
they serve under part B, including equitable provision of on-
site services and funding to such schools.
    Section 613(b) includes conditions under which LEAs are 
required to submit amended policies and procedures to the SEA, 
and the SEA's responsibilities under this section.
    Section 613(c) provides that if the SEA determines that an 
LEA or a State agency is not eligible under this section, it 
must notify that agency of its determination and provide the 
agency with reasonable notice and an opportunity for a hearing.
    Section 613(d) provides that if an eligible LEA or State 
agency is failing to comply with any requirement under section 
613(a), the SEA shall not make any further payments to that 
agency until it comes into compliance.
    Section 613(e) sets out conditions under which an SEA may 
require an LEA to establish its eligibility jointly with 
another LEA, and describes the conditions under which an 
educational service agency and a charter school would be 
exempted from this section.
    Section 613(f) permits an LEA to use up to 15 percent of 
its annual part B allotment for early intervening services for 
children who have not been identified as needing special 
education but who need additional academic and behavioral 
support to succeed in school.
    Section 613(g) requires the SEA to use the payments that 
otherwise would have been available to an LEA or State agency 
to provide special education and related services directly to 
children with disabilities for whom the agency is responsible, 
if the SEA determines the existence of one or more specified 
situations.
    Section 613(h) requires any State agency that desires to 
receive a subgrant for any fiscal year under part B to 
demonstrate to the satisfaction of the SEA that the agency 
meets the conditions described in the section.
    Section 613(i) permits States to require LEAs to include in 
a disabled child's records information about disciplinary 
action taken against the child to the same extent that such 
information is included in the records of other children.
    Section 613(j) permits States that pay at least 80 percent 
of non-Federal special education costs to treat portions of 
Federal funds as general funds to support educational purposes 
described in the Elementary and Secondary Education Act of 1965 
and for other education-related purposes.
    Section 614(a) sets out requirements relating to initial 
evaluations (as requested by the child's parents, the LEA, the 
SEA, or another State agency), parental consent and refusal or 
failure to consent (in which case the LEA is not considered in 
violation of the requirement to provide FAPE), and 
reevaluations (which shall occur not more frequently than once 
a year but at least every 3 years, unless the parent and the 
LEA agree that more frequent or less frequent reevaluations are 
needed).
    Section 614(b) includes requirements for procedures 
relating to providing notice to parents about evaluations, and 
conducting evaluations, including that an LEA shall not be 
required to consider a severe discrepancy between achievement 
and intellectual ability in determining whether a child has a 
specific learning disability.
    Section 614(c) includes additional requirements relating to 
evaluating and reevaluating a child's eligibility under part B; 
reviewing existing evaluation data, obtaining parental consent 
for reevaluations, actions to take if additional data are not 
needed, and evaluations before changing eligibility (except 
that such evaluation is not required if eligibility is to be 
changed because of graduation or the age of eligibility for 
FAPE has been exceeded).
    Section 614(d) includes definitions of ``individual 
education program'' (IEP), which includes the child's current 
levels of performance, measurable annual goals, the measurement 
of progress on these goals, the special education and related 
services to be provided, an explanation if the child is not to 
be educated with nondisabled children, accommodations that will 
be provided for assessments, and post-IDEA goals and transition 
services when the child reaches the age of 14. The section 
defines the ``IEP Team''; which develops and re-evaluates the 
IEP and which includes the child's parent, at least one special 
education teacher and one regular education teacher (if the 
child participates in the regular classroom environment), LEA 
representative, other individuals with special expertise, and 
the child (if appropriate). Not all team members need to attend 
all IEP meetings if there is agreement among the parent, the 
LEA, and the team member in question. The section requires that 
an IEP be in effect at the beginning of each school year for 
each child with a disability and requires LEAs to ensure that 
the IEP team reviews each IEP periodically, but not less than 
annually, and revises the IEP, as appropriate. The section 
permits the LEA to offer the option of a 3-year IEP when a 
child with a disability reaches the age of 18. Finally, the 
section includes provisions relating to children with 
disabilities in adult prisons.
    Section 614(e) requires that each SEA or LEA ensure that 
the parents of each disabled child are members of any group 
that makes decisions on the educational placement of their 
child.
    Section 614(f) permits alternative means of holding IEP 
meetings, such as video conferencing and conference calls, if 
the parent and the LEA agree.
    Section 615(a) provides that any SEA, State agency, or LEA 
that receives part B funds must establish and maintain 
procedures to assure that children with disabilities and their 
parents are guaranteed procedural safeguards with respect to 
the provision of a free appropriate public education.
    Section 615(b) requires that procedural safeguards include: 
Parental opportunity to examine all records on their child, to 
participate in meetings, and to obtain an independent 
educational evaluation of the child; procedures to protect the 
rights of the child whenever the parents are not known, cannot 
be located after reasonable efforts, or the child is a State 
ward, including appointing a surrogate parent for the child; 
written prior notice to the parents, provided in their native 
language, unless it is clearly not feasible to do so, whenever 
the LEA proposes to initiate or change or refuses to initiate 
or change the identification, evaluation, or educational 
placement of the child or the provision of a free appropriate 
public education to the child; an opportunity for mediation and 
to present complaints; procedures that require either party, or 
the attorney representing a party, to provide due process 
complaint notice, including information about the child, 
contact information in the case of homeless child, the problem, 
and a proposed resolution known and available at the time; a 
requirement that a party may not have a due process hearing 
until the party or the attorney representing the party files 
the required notice; a requirement that the LEA send a prior 
written notice in response to a parent's due process complaint 
notice if the LEA has not sent such a prior written notice to 
the parent regarding the subject matter of the complaint; and 
procedures that require the SEA to develop a model form to 
assist parents in filing a complaint and due process complaint 
notice.
    Section 615(c) describes the content of the prior written 
notice provided by the LEA and requirements regarding the due 
process complaint notice.
    Section 615(d) describes the content and timing of the 
procedural safeguards notice given to the parents.
    Section 615(e) requires SEAs or LEAs to make mediation 
available to parties to a dispute, but provides that it is 
voluntary for both parties, is not used to deny or delay a 
parent's right to a due process hearing under section 615(f), 
or to deny any other rights afforded under part B, and is 
conducted by a qualified and impartial mediator who is trained 
in effective mediation techniques. The section allows LEAs to 
establish procedures to offer to parents and schools who choose 
not to use the mediation process, an opportunity to meet with a 
disinterested party under contract with a parent training and 
information center, community parent resource center, or other 
alternative dispute resolution entity to explain the benefits 
of mediation and encourage its use. The subsection also 
requires the State to maintain a list of qualified mediators, 
requires the State to bear the cost of the mediation process, 
requires that each session in the mediation process shall be 
scheduled in a timely manner and shall be held in a convenient 
location, requires that an agreement reached by the parties 
shall be set forth in a written mediation agreement that is 
enforceable in court, and requires that mediation discussions 
shall be confidential and may not be used as evidence in any 
subsequent due process hearing or civil proceeding. The parties 
to a mediation may be required to sign a confidentiality 
pledge.
    Section 615(f) requires that whenever a complaint has been 
received, the parents or LEA involved in the complaint must 
have an opportunity for an impartial due process hearing 
conducted by the SEA or LEA. The subsection requires that prior 
to the opportunity for a due process hearing, the LEA shall 
convene a meeting with the parents and the IEP team where the 
parents shall discuss their complaint and the LEA is provided 
the opportunity to resolve the complaint. The subsection 
requires the disclosure of evaluations and recommendations 
prior to a due process hearing. The subsection also requires 
that the hearing officer conducting the hearing meet certain 
requirements; the party requesting the due process hearing 
shall not be allowed to raise issues at the hearing that were 
not raised in the notice required by section 615(b)(7) unless 
the other party agrees; nothing shall be construed to preclude 
a parent from filing a separate due process complaint on an 
issue separate from a due process complaint already filed; and 
that the decision of the hearing officer be made on substantive 
grounds based on a determination of whether the child received 
a free appropriate public education, except that in certain 
cases involving procedural violations, a hearing officer may 
find that a child did not receive a free appropriate public 
education. Nothing is to be construed to preclude a hearing 
officer from ordering an LEA to comply with the procedural 
requirements of section 615. The subsection contains a two-year 
time limit on the request for a due process hearing with 
certain exceptions.
    Section 615(g) provides that any party aggrieved by a due 
process hearing conducted by the LEA may appeal the decision to 
the SEA.
    Section 615(h) lists the procedural safeguards rights that 
are available to any party to a due process hearing or an 
appeal, including the right to a written, or, at the option of 
the parents, electronic verbatim record of the hearing and 
electronic findings of fact and decisions.
    Section 615(i) provides that any party aggrieved by the 
findings and decision in a hearing under section 615(f) or (k) 
or in section 615(g) has the right to bring a civil action in a 
State court or in a District Court of the United States without 
regard to the amount in question. The party bringing the action 
shall have 90 days from the date of the decision of the hearing 
officer to bring the action or, if there is an explicit State 
time limitation, such time as the State law allows. This 
subsection permits the award of attorneys' fees with certain 
exceptions, lists the considerations for reducing attorneys' 
fees, and also provides that a parent of a child with a 
disability may represent their own child in court.
    Section 615(j) provides that, except as provided in 
615(k)(4), the child must remain in the current educational 
setting while any proceedings conducted under this section are 
pending. However, if the child is applying for initial 
admission to a public school, the child shall, with the consent 
of the parents be placed in the public school program until 
completion of the proceedings.
    Section 615(k) provides for the authority of school 
personnel to order a change in placement for a child with a 
disability who violates a code of student conduct for ten 
school days. If a change in placement exceeding ten school days 
is sought and the behavior is not a manifestation of the 
child's disability, the relevant disciplinary procedures 
applicable to children without disabilities may be applied. 
With certain exceptions, within ten school days of a decision 
to change the placement of a child with a disability, the IEP 
team shall determine if the behavior in question was a 
manifestation of the child's disability. The subsection 
provides that where a child with a disability carries or 
possesses a weapon to or at a school, school premises, or a 
school function, or knowingly possesses or uses illegal drugs 
or sells or solicits the sale of a controlled substance while 
at school, or at a school function, or has committed serious 
bodily injury upon another person while at school or at a 
school function, school personnel may remove the student to an 
interim alternative educational setting for not more than 45 
school days, regardless of whether the behavior is determined 
to be a manifestation of the child's disability. The subsection 
provides for notification of the parents, and the continuation 
of services. The subsection provides that the alternative 
educational setting shall be determined by the IEP team. 
Appeals of decisions regarding disciplinary action, placement 
or the manifestation determination are provided for the parent, 
or LEA where the LEA believes that maintaining the current 
placementof the child is substantially likely to result in 
injury to the child or others. In addition, the hearing officer has the 
authority to determine whether an action was appropriate and to order a 
change in placement to an appropriate interim alternative educational 
setting for not more than 45 school days if the hearing officer 
determines that maintaining the child's current placement is 
substantially likely to result in injury to the child or to others. The 
subsection also includes provisions on the placement of a child with a 
disability during appeals, protections for children not yet eligible 
for special education and related services, referral to and action by 
law enforcement and judicial authorities, and definitions. The terms 
for which definitions are provided are ``controlled substance,'' 
``illegal drug,'' ``weapon,'' and ``serious bodily injury.''
    Section 615(l) maintains the rights available under the 
Constitution, the Americans with Disabilities Act, title V of 
the Rehabilitation Act and other Federal laws protecting the 
rights of children with disabilities and includes an exhaustion 
provision.
    Section 615(m) allows the State to provide for the transfer 
of rights from the parent to the child with a disability when 
the child reaches the age of majority under State law, unless 
the child has been found to be incompetent under State law. 
This subsection also contains a special rule allowing the State 
to establish procedures for appointing the parents of a child 
to represent the educational interests of the child when the 
child is determined not to have the ability to provide informed 
consent with respect to his or her educational program.
    Section 615(n) allows the parent of a child with a 
disability to elect to receive the notices required under 
section 615 by electronic mail if the public agency makes the 
option available.
    Section 616(a) requires the Secretary to monitor 
implementation of the Act through oversight and a system of 
indicators, to enforce the Act, and to require States to 
monitor implementation of the Act by LEAs and enforce the Act. 
The subsection requires that the primary focus of Federal and 
State monitoring activities shall be on improving educational 
results and functional outcomes for all children with 
disabilities, while ensuring compliance with program 
requirements, with a particular emphasis on requirements 
relating to improving educational results for children with 
disabilities. In addition, monitoring priorities are provided 
as well as permissive areas of review.
    Section 616(b) requires the Secretary to implement and 
administer a system of required indicators that measure the 
progress of the States in improving their performance. This 
system includes a review, using the performance indicators 
established under section 612(a)(15), of the performance of 
children with disabilities on assessments, dropout rates, and 
graduation rates, and comparing their performance with the 
performance and rates for all children. Based on this review 
and a review of the State's compliance plan, the Secretary is 
required to assess the State's progress in improving 
educational results for children with disabilities. Not later 
than one year after enactment, each State must have a 
compliance plan in place that is developed in collaboration 
with, and approved by, the Secretary and includes benchmarks to 
measure progress, and strategies to achieve the benchmarks. In 
addition, the subsection requires the Secretary to review the 
data collection and analysis capacity of States and provide 
technical assistance to improve the capacity of the State to 
meet the data collection requirements.
    Section 616(c) requires the Secretary to examine relevant 
State information and data annually to determine whether the 
State is making satisfactory progress toward improving 
educational results and is in compliance with the Act. If the 
Secretary determines that a State failed to make satisfactory 
progress or failed to meet the benchmarks for two consecutive 
years, the Secretary must notify the State and take action by 
directing the use of State level funds for technical assistance 
and/or withholding not less than 20 percent but not more than 
50 percent of the State's funds for State administration and 
activities. The Secretary is required by this subsection to 
take additional action if at the end of the fifth year after 
approval of the compliance plan the Secretary determined that a 
State failed to meet the benchmarks in the State compliance 
plan and make satisfactory progress in improving educational 
results of children with disabilities in keeping with the 
described indicators. This action shall be one or more of the 
following: seeking to recover funds under section 452 of the 
General Education Provisions Act (GEPA); withholding (after 
notice and an opportunity for a hearing) payments to the State; 
referral for appropriate enforcement action, including referral 
to the Department of Justice; suspending payments to a 
recipient, or suspending the authority of the recipient to 
obligate Federal funds. In addition, the subsection provides 
that if, at any time, the Secretary determines that a State is 
not in substantial compliance, or there is a substantial 
failure to comply with any conditions of the LEA's or SEA's 
eligibility, the Secretary shall take one or more of the 
following actions: request that the State prepare a corrective 
action plan; impose special conditions on the State's grant; 
require the State to enter into a compliance agreement under 
section 457 of GEPA; recovery of funds under section 452 of 
GEPA; withholding (after notice and an opportunity for a 
hearing) any further payments to the State; referral for 
appropriate enforcement action, including referral to the 
Department of Justice; suspending payments to a recipient; or 
suspending the authority of the recipient to obligate Federal 
funds. If the Secretary determines that a State is in egregious 
noncompliance or is willfully disregarding the provisions of 
the Act, the Secretary may take one or more of the actions 
described regarding substantial noncompliance and, in addition, 
may institute a cease and desist action under section 456 of 
GEPA and/or refer the case to the Office of the Inspector 
General. The subsection requires the Secretary to report to 
Congress within 30 days of taking enforcement action regarding 
egregious noncompliance or substantial noncompliance. If the 
Secretary withholds payments as an enforcement action, the 
subsection provides that the Secretary may determine that the 
withholding be limited to programs or projects affected by the 
failure or that the SEA shall not make further payments to 
certain LEAs or State agencies. The subsection provides for 
judicial review with the appropriate U.S. court of appeals if a 
State is dissatisfied with the Secretary's final action 
regarding State eligibility and for review by the U.S. Supreme 
Court. Finally, the subsection provides that the findings of 
fact by the Secretary, if supported by substantial evidence, 
shall be conclusive but the court may remand to the Secretary 
for further evidence.
    Section 616(d) provides rules regarding situations 
involving children with disabilities who are incarcerated in 
adult prisons where there is divided State agency 
responsibility and the Secretary finds failure to substantially 
comply with the Act.
    Section 616(e) requires the SEA to monitor and enforce 
implementation of the Act and implement a system of monitoring 
the benchmarks in the State's compliance plan and requires LEAs 
to monitor and enforce implementation. The subsection also 
requires the SEA to prohibit the LEA from treating funds under 
the Act as local funds under section 613(a)(2)(C) for any 
fiscal year if the SEA determines that a LEA is not meeting the 
requirements of the Act.
    Section 617 describes the responsibilities of the Secretary 
under part B, including: arranging for the provision of 
technical assistance to the States; the issuance of rules and 
regulations to the extent necessary to ensure compliance with 
part B; confidentiality; the hiring of personnel to conduct 
data collection and evaluation activities; and the publishing 
and wide distribution of a model IEP form, a model IFSP form, a 
model form of notice of procedural safeguards, and a model of 
prior written notice.
    Section 618 describes the program information that each 
State receiving part B funds and the Secretary of the Interior 
must provide to the Secretary each year, including the number 
and percentages of children by gender, limited English 
proficiency receiving FAPE, the number of disciplinary actions, 
the number of due process complaints, the number of hearings 
requested,and the number of mediations held. The section 
permits the Secretary to provide technical assistance to States to 
ensure compliance with data collection and reporting requirements. The 
section also requires each State to collect and examine data each year 
to determine if significant disproportionality based on race is 
occurring in the identification and placement of children with 
disabilities, and provides that if a situation is identified, the State 
must review and revise, if necessary, its policies, practices, and 
procedures.
    Section 619(a) directs the Secretary to make grants to 
assist States to provide special education and related 
services, in accordance with part B, to children with 
disabilities aged three through five and, at the State's 
discretion, to 2-year-old children with disabilities who will 
turn three during the school year.
    Section 619(b) provides that a State is eligible for a 
grant under section 619 if it has established its eligibility 
under section 612 and it makes a free appropriate public 
education available to all children with disabilities, aged 3 
through 5, residing in its jurisdiction.
    Section 619(c) includes the allotment formula for the 
Preschool Grants program, which first provides States with 
grant amounts received for FY1997 and then distributes 85 
percent of remaining funds based on total population ages 3 to 
5 and 15 percent of remaining funds based on children ages 3 to 
5 living in poverty, with certain limitations on minimum and 
maximum grants.
    Section 619(d) describes the general amount of Preschool 
Grant funds that may be retained by the State, which is 25 
percent of a State's grant for FY1997, annually adjusted by the 
rate of inflation or the rate of increase in the State's grant 
(whichever is less).
    Section 619(e) specifies the use of Preschool Grant funds 
for State administration, including use of funds for 
administering part C services for infants and toddlers with 
disabilities, if the SEA is the lead agency for part C.
    Section 619(f) specifies the use of Preschool Grant funds 
for other State-level activities, including early intervention 
services for children eligible under this section who 
previously received services under part C.
    Section 619(g) provides for subgrants to LEAs, which 
involves initial grants based on 1997 amounts, with 85 percent 
of remaining funds distributed based on public and private 
school enrollment and 15 percent based on numbers of children 
living in poverty.
    Section 619(h) provides that part C of this Act does not 
apply to any child with a disability receiving a free 
appropriate public education in accordance with part B, with 
Preschool Grant funds.
    Section 619(i) includes a special definition of ``State'' 
for purposes of allocating funds under the Preschool Grants 
program.
    Section 619(j) authorizes such sums as may be necessary for 
carrying out section 619.

Part C

    Section 631(a) lists the Congressional findings relating to 
part C.
    Section 631(b) outlines the policy of the United States to 
provide financial assistance to enhance the State's capacity to 
provide quality early intervention services and expand and 
improve existing early intervention services.
    Section 632 defines the key terms used in this part, 
including ``at-risk infant or toddler'', ``developmental 
delay,'' ``early intervention services,'' and ``infant or 
toddler with a disability'' (including, at State discretion, 
children with disabilities eligible for services under section 
619 who had previously received services under part C).
    Section 633 authorizes the Secretary to make grants to the 
States to assist them in implementing and maintaining a 
statewide system of early intervention services for infants and 
toddlers with disabilities and their families.
    Section 634 establishes the criteria each State must meet 
to be eligible for a grant under this part including: adoption 
of a policy that appropriate early intervention services are 
available to all infants and toddlers with disabilities and 
their families in the State (including Indian infants and 
toddlers with disabilities and their families living on an 
Indian reservation within the State); and provision of a 
statewide system of early intervention services which meets the 
requirements of section 635.
    Section 635(a) establishes the minimum components for a 
statewide system of early intervention services including: a 
definition of developmental delay (with specified minimum 
percentage delays); a timely, comprehensive, multidisciplinary 
evaluation of each infant or toddler; an Individualized Family 
Service Plan (IFSP) in accordance with section 636; a 
comprehensive child find system consistent with part B; a 
public awareness program; a central director; a comprehensive 
system of personnel development; policies and procedures 
relating to personnel standards; a single line of 
responsibility for the administration and supervision of the 
statewide program; a policy pertaining to contracting with 
service providers; a procedure for reimbursement of funds; 
procedural safeguards; a system for compiling data; a State 
interagency coordinating council that meets the requirements of 
section 641; and a policy for ensuring that early intervention 
services are provided in natural environments unless a specific 
outcome for the infant or toddler cannot be satisfactorily met 
in such an environment.
    Section 635(b) permits the State to establish a policy 
whereby parents of children with disabilities eligible under 
section 619 may choose to continue early intervention services 
through the Part C program. The policy is jointly developed and 
implemented by the SEA and the part C lead agency (if other 
than the SEA). The services must include an educational 
component-provided in accordance with the IFSP-that promotes 
school readiness and incorporates pre-literacy, language, and 
numeracy skills. Parents must provide written consent for their 
child to continue to receive services through the Part C 
program. The policy must not affect the right of any child to 
receive FAPE under part B of IDEA.
    Section 636(a) requires the statewide system to provide for 
each infant or toddler with a disability, and each family, to 
receive: a multidisciplinary assessment; a family-directed 
assessment; and a written IFSP developed by a multidisciplinary 
team, including the parents.
    Section 636(b) requires the IFSP be evaluated once a year 
and requires that every six months the family receive a review 
of the plan.
    Section 636(c) requires the IFSP to be developed within a 
reasonable time after the assessment, and provides that, with 
parental consent, early intervention services may commence 
prior to the completion of the assessment.
    Section 636(d) directs that the individualized family 
service plan be in writing and details what it must contain, 
including the infant's or toddler's current state of 
development, available family resources, measurable outcomes, 
early interventions needed to meet the child's and the family's 
needs, the environment in which services will be delivered, 
frequency and duration of services, and transition to preschool 
or other appropriate services.
    Section 636(e) requires that parents receive a full 
explanation of the IFSP and that informed written consent be 
obtained from the parents before implementation of the IFSP, 
and permits the delivery of only those services for which 
consent has been given.
    Section 637(a) requires that each State desiring to receive 
a grant under this part submit an application to the Secretary 
at the time and in the manner required by the Secretary, and 
describes the information required to be in the application.
    Section 637(b) lists the assurances that the State must 
include in its application to the Secretary.
    Section 637(c) provides that the Secretary may not 
disapprove a State's application without first determining, 
after notice and opportunity for a hearing, that the 
application fails to comply with the requirements of this 
section.
    Section 637(d) provides that if a State already has on file 
with the Secretary policies and procedures that demonstrate 
that it meets any requirement of part C, the Secretary shall 
treat the State as meeting that requirement for purposes of 
receiving a grant under part C.
    Section 637(e) provides that an application submitted by a 
State in accordance with section 637 shall remain in effect 
until the State submits to the Secretary such modifications it 
determines necessary.
    Section 637(f) provides that the Secretary may only require 
a State to modify its application based on an amendment to the 
Act, issuance of Federal regulations under the Act, new Federal 
or the State's highest court interpretation of the Act, or an 
official finding of State noncompliance with Federal law or 
regulations.
    Section 638 lists the allowable uses of funds under part C, 
including providing direct services for infants and toddlers 
with disabilities and the families of those children.
    Section 639(a) details the minimum procedural safeguards a 
State shall have in place.
    Section 639(b) provides that during the pendency of any 
proceeding or action involving a complaint by the parents, the 
infant or toddler shall continue to receive the early 
intervention services currently being delivered, or if applying 
for initial services, shall receive the services not in 
dispute.
    Section 640(a) provides that funds under part C may not be 
used to pay for services which would have been paid for by 
another source, including any medical program administered by 
the Department of Defense, but for the enactment of part C, 
except to prevent a delay in the provision of early 
intervention services pending reimbursement from the agency 
which has ultimate responsibility for the payment.
    Section 640(b) details obligations related to and methods 
of ensuring services, including establishing financial 
responsibility for services and requires consistency with the 
designations of financial responsibility made under Part B.
    Section 640(c) prohibits the State from reducing medical or 
other assistance available or from altering eligibility under 
title V of the Social Security Act (relating to maternal and 
child health) or under title XIX of the Social Security Act 
(relating to Medicaid for infants or toddlers with 
disabilities) within the State.
    Section 641(a) requires each State wishing to receive funds 
under this part to establish an interagency coordinating 
council with the membership outlined in this section appointed 
by the Governor.
    Section 641(b) prescribes the composition of the Council, 
including: 20% parent members; 20% service provider members; 
and at least one member representing the State legislature, 
personnel preparation, each of the State agencies providing or 
paying for early intervention services; and other members 
selected by the Governor.
    Section 641(c) requires the council to meet at least 
quarterly, and to conduct meetings that have been publicly 
announced and are open and accessible to the general public.
    Section 641(d) allows the council, subject to the approval 
of the Governor, to use funds under this part to conduct 
hearings and forums, reimburse council members for necessary 
expenses related to attending meetings, hire staff, and for 
other purposes.
    Section 641(e) describes the functions of the council.
    Section 641(f) prohibits any member of the council from 
voting on any matter that would give the appearance of a 
conflict of interest.
    Section 642 provides that sections 616, 617, and 618 shall, 
to the extent not inconsistent with part C, apply to the 
program authorized under this part.
    Section 643(a) allows the Secretary to reserve up to one 
percent of the funds from the appropriation for payment to the 
outlying areas, and exempts those funds from the provisions of 
P.L. 95-134.
    Section 643(b) directs the Secretary to make payments of 
1.25 percent of the amount available to the States to the 
Secretary of the Interior for distribution to Indian tribes and 
includes the methods of allocation, allowable uses of funds, 
and reporting requirements.
    Section 643(c) describes the manner in which the remaining 
part C funds will be distributed to the States; namely, each 
State shall receive a grant in proportion to the number of all 
infants and toddlers in the State, except (if funds are 
sufficient) no State shall receive a grant that is less than 
the greater of \1/2\ percent of funds available for part C 
State grants or $500,000.
    Section 643(d) allows the Secretary to reallocate any funds 
refused by a State to the remaining States.
    Section 643(e) provides for State bonus grants.
    Section 644 authorizes an appropriation of such sums as may 
be necessary to carry out part C for each of the fiscal years 
2004 through 2009.

Part D

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

Part D--Subpart 1

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

Part D--Subpart 2

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

Part D--Subpart 3

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

Part D--Subpart 4

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

         TITLE II--AMENDMENTS TO THE REHABILITATION ACT OF 1973

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

       TITLE III--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

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

Part E

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

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

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

                       X. Changes in Existing Law

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

Individuals with Disabilities Education Act

           *       *       *       *       *       *       *



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

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

                       PART A--GENERAL PROVISIONS

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

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

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

             [PART C--INFANTS AND TODDLERS WITH DISABILITIES

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

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

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

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

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

[Sec. 661. Administrative provisions.

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

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

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

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

    [(c) Findings.--The Congress finds the following:
         [(1) Disability is a natural part of the human 
        experience and in no way diminishes the right of 
        individuals to participate in or contribute to society. 
        Improving educational results for children with 
        disabilities is an essential element of our national 
        policy of ensuring equality of opportunity, full 
        participation, independent living, and economic self-
        sufficiency for individuals with disabilities.
         [(2) Before the date of the enactment of the Education 
        for All Handicapped Children Act of 1975 (Public Law 
        94-142)--
                 [(A) the special educational needs of children 
                with disabilities were not being fully met;
                 [(B) more than one-half of the children with 
                disabilities in the United States did not 
                receive appropriate educational services that 
                would enable such children to have full 
                equality of opportunity;
                 [(C) 1,000,000 of the children with 
                disabilities in the United States were excluded 
                entirely from the public school system and did 
                not go through the educational process with 
                their peers;
                 [(D) there were many children with 
                disabilities throughout the United States 
                participating in regular school programs whose 
                disabilities prevented such children from 
                having a successful educational experience 
                because their disabilities were undetected; and
                 [(E) because of the lack of adequate services 
                within the public school system, families were 
                often forced to find services outside the 
                public school system, often at great distance 
                from their residence and at their own expense.
         [(3) Since the enactment and implementation of the 
        Education for All Handicapped Children Act of 1975, 
        this Act has been successful ensuring children with 
        disabilities and the families of such children access 
        to a free appropriate public education and in improving 
        educational results for children with disabilities.
         [(4) However, the implementation of this Act has been 
        impeded by low expectations, and an insufficient focus 
        on applying replicable research on proven methods of 
        teaching and learning for children with disabilities.
         [(5) Over 30 years of research and experience has 
        demonstrated that the education of children with 
        disabilities can be made more effective by--
                 [(A) having high expectations for such 
                children and ensuring their access in the 
                general curriculum to the maximum extent 
                possible;
                 [(B) strengthening the role of parents and 
                ensuring that families of such children have 
                meaningful opportunities to participate in the 
                education of their children at school and at 
                home;
                 [(C) coordinating this Act with other local, 
                educational service agency, State, and Federal 
                school improvement efforts in order to ensure 
                that such children benefit from such efforts 
                and that special education can become a service 
                for such children rather than a place where 
                they are sent:
                 [(D) providing appropriate special education 
                and related services and aids and supports in 
                the regular classroom to such children, 
                whenever appropriate;
                 [(E) supporting high-quality, intensive 
                professional development for all personnel who 
                work with such children in order to ensure that 
                they have the skills and knowledge necessary to 
                enable them--
                         [(i) to meet developmental goals and, 
                        to the maximum extent possible, those 
                        challenging expectations that have been 
                        established for all children; and
                         [(ii) to be prepared to lead 
                        productive, independent, adult lives, 
                        to the maximum extent possible;
                 [(F) providing incentives for whole-school 
                approaches and pre-referral intervention to 
                reduce the need to label children as disabled 
                in order to address their learning needs; and
                 [(G) focusing resources on teaching and 
                learning while reducing paperwork and 
                requirements that do not assist in improving 
                educational results.
         [(6) While States, local educational agencies, and 
        educational service agencies are responsible for 
        providing an educationfor all children with 
disabilities, it is in the national interest that the Federal 
Government have a role in assisting State and local efforts to educate 
children with disabilities in order to improve results for such 
children and to ensure equal protection of the law.
          [(7)(A) The Federal Government must be responsive to 
        the growing needs of an increasingly more diverse 
        society. A more equitable allocation of resources is 
        essential for the Federal Government to meet its 
        responsibility to provide an equal educational 
        opportunity for all individuals.
          [(B) America's racial profile is rapidly changing. 
        Between 1980 and 1990, the rate of increase in the 
        population for white Americans was 6 percent, while the 
        rate of increase for racial and ethnic minorities was 
        much higher: 53 percent for Hispanics, 13.2 percent for 
        African-Americans, and 107.8 percent for Asians.
          [(C) By the year 2000, this Nation will have 
        275,000,000 people, nearly one of every three of whom 
        will be either African-American, Hispanic, Asian-
        American, or American Indian.
          [(D) Taken together as a group, minority children are 
        comprising an ever larger percentage of public school 
        students. Large-city school populations are 
        overwhelmingly minority, for example: for fall 1993, 
        the figure for Miami was 84 percent; Chicago, 89 
        percent; Philadelphia, 78 percent; Baltimore, 84 
        percent; Houston, 88 percent; and Los Angeles, 88 
        percent.
          [(E) Recruitment efforts within special education 
        must focus on bringing larger numbers of minorities 
        into the profession in order to provide appropriate 
        practitioner knowledge, role models, and sufficient 
        manpower to address the clearly changing demography of 
        special education.
          [(F) The limited English proficient population is the 
        fastest growing in our Nation, and the growth is 
        occurring in many parts of our Nation. In the Nation's 
        2 largest school districts, limited English proficient 
        students make up almost half of all students initially 
        entering school at the kindergarten level. Studies have 
        documented apparent discrepancies in the levels of 
        referral and placement of limited English proficient 
        children in special education. The Department of 
        Education has found that services provided to limited 
        English proficient students often do not respond 
        primarily to the pupil's academic needs. These trends 
        pose special challenges for special education in the 
        referral, assessment, and services for our Nation's 
        students from non-English language backgrounds.
          [(8)(A) Greater efforts are needed to prevent the 
        intensification of problems connected with mislabeling 
        and high dropout rates among minority children with 
        disabilities.
          [(B) More minority children continue to be served in 
        special education than would be expected from the 
        percentage of minority students in the general school 
        population.
          [(C) Poor African-American children are 2.3 times 
        more likely to be identified by their teacher as having 
        mental retardation than their white counterpart.
          [(D) Although African-Americans represent 16 percent 
        of elementary and secondary enrollments, they 
        constitute 21 percent of total enrollments in special 
        education.
          [(E) The drop-out rate is 68 percent higher for 
        minorities than for whites.
          [(F) More than 50 percent of minority students in 
        large cities drop out of school.
          [(9)(A) The opportunity for full participation in 
        awards for grants and contracts; boards of 
        organizations receiving funds under this Act; and peer 
        review panels; and training of professionals in the 
        area of special education by minority individuals, 
        organizations, and historically black colleges and 
        universities is essential if we are to obtain greater 
        success in the education of minority children and 
        disabilities.
          [(B) In 1993, of the 915,000 college and university 
        professors, 4.9 percent were African-American and 2.4 
        percent were Hispanic. Of the 2,940,000 teachers, 
        prekindergarten through high school, 6.8 percent were 
        African-American and 4.1 percent were Hispanic.
          [(C) Students from minority groups comprise more than 
        50 percent of K-12 public school enrollment in seven 
        States yet minority enrollment in teacher training 
        programs is less than 15 percent in all but six States.
          [(D) As the number of African-American and Hispanic 
        students in special education increases, the number of 
        minority teachers and related service personnel 
        produced in our colleges and universities continues to 
        decrease.
          [(E) Ten years ago, 12 percent of the United States 
        teaching force in public elementary and secondary 
        schools were members of a minority group. Minorities 
        comprised 21 percent of the national population at that 
        time and were clearly under-represented then among 
        employed teachers. Today, the elementary and secondary 
        teaching force is 13 percent minority, while one-third 
        of the students in public schools are minority 
        children.
          [(F) As recently as 1991, historically black colleges 
        and universities enrolled 44 percent of the African-
        American teacher trainees in the Nation. However, in 
        1993, historically black colleges and universities 
        received only 4 percent of the discretionary funds for 
        special education and related services personnel 
        training under this Act.
          [(G) While African-American students constitute 28 
        percent of total enrollment in special education, only 
        11.2 percent of individuals enrolled in preservice 
        training programs for special education are African-
        American.
          [(H) In 1986-87, of the degrees conferred in 
        education at the B.A., M.A., and Ph.D. levels, only 6, 
        8, and 8 percent, respectively, were awarded to 
        African-American or Hispanic students.
          [(10) Minorities and underserved persons are socially 
        disadvantaged because of the lack of opportunities in 
        training and educational programs, undergirded by the 
        practices in the private sector that impede their full 
        participation in the mainstream of society.
    [(d) Purposes.--The purpose of this title are--
          [(1)(A) to ensure that all children with disabilities 
        have available to them a free appropriate public 
        education that emphasizes special education and related 
        services designed to meet their unique needs and 
        prepare them for employment and independent living;
          [(B) to ensure that the rights of children with 
        disabilities and parents of such children are 
        protected; and
          [(C) to assist States, localities, educational 
        service agencies, and Federal agencies to provide for 
        the education of all children with disabilities;
          [(2) to assist States in the implementation of a 
        statewide, comprehensive, coordinated, 
        multidisciplinary, interagency system of early 
        intervention services for infants and toddlers with 
        disabilities and their families;
          [(3) to ensure that educators and parents have the 
        necessary tools to improve educational results for 
        children with disabilities by supporting systemic-
        change activities; coordinated research and personnel 
        preparation; coordinated technical assistance, 
        dissemination, and support; and technology development 
        and media services; and
          [(4) to assess, and ensure the effectiveness of, 
        efforts to educate children with disabilities.

[SEC. 602. DEFINITIONS.

    [Except as otherwise provided, as used in this Act:
          [(1) Assistive technology device.--The term 
        ``assistive technology device'' means any item, piece 
        of equipment, or product system, whether acquired 
        commercially off the shelf, modified, or customized, 
        that is used to increase, maintain, or improve 
        functional capabilities of a child with a disability.
          [(2) Assistive technology service.--The term 
        ``assistive technology service'' means any service that 
        directly assists a child with a disability in the 
        selection, acquisition, or use of an assistive 
        technology device. Such term includes--
                  [(A) the evaluation of the needs of such 
                child, including a functional evaluation of the 
                child in the child's customary environment;
                  [(B) purchasing, leasing, or otherwise 
                providing for the acquisition of assistive 
                technology devices by such child;
                  [(C) selecting, designing, fitting, 
                customizing, adapting, applying, maintaining, 
                repairing, or replacing of assistive technology 
                devices;
                  [(D) coordinating and using other therapies, 
                interventions, or services with assistive 
                technology devices, such as those associated 
                with existing education and rehabilitation 
                plans and programs;
                  [(E) training or technical assistance for 
                such child, or, where appropriate, the family 
                of such child; and
                  [(F) training or technical assistance for 
                professionals (including individuals providing 
                education and rehabilitation services), 
                employers, or other individuals who provide 
                services to, employ, or are otherwise 
                substantially involved in the major life 
                functions of such child.
          [(3) Child with a disability.--
                  [(A) In general.--The term ``child with a 
                disability'' means a child--
                          [(i) with mental retardation, hearing 
                        impairments (including deafness), 
                        speech or language impairments, visual 
                        impairments (including blindness), 
                        serious emotional disturbance 
                        (hereinafter referred to as ``emotional 
                        disturbance''), orthopedic impairments, 
                        autism, traumatic brain injury, other 
                        health impairments, or specific 
                        learning disabilities; and
                          [(ii) who, by reason thereof, needs 
                        special education and related services.
                  [(B) Child aged 3 through 9.--The term 
                ``child with a disability'' for a child aged 3 
                through 9 may, at the discretion of the State 
                and the local education agency, include a 
                child--
                          [(i) experiencing developmental 
                        delays, as defined by the State and as 
                        measured by appropriate diagnostic 
                        instruments and procedures, in one or 
                        more of the following areas: physical 
                        development, cognitive development, 
                        communication development, social or 
                        emotional development, or adaptive 
                        development; and
                          [(ii) who, by reason thereof, needs 
                        special education and related services.
          [(4) Educational service agency.--The term 
        ``educational service agency''--
                  [(A) means a regional public multiservice 
                agency--
                          [(i) authorized by State law to 
                        develop, manage, and provide services 
                        or programs to local educational 
                        agencies; and
                          [(ii) recognized as an administrative 
                        agency for purposes of the provision of 
                        special education and related services 
                        provided within public elementary and 
                        secondary schools of the State; and
                  [(B) includes any other public institution or 
                agency having administrative control and 
                direction over a public elementary or secondary 
                school.
          [(5) Elementary school.--The term ``elementary 
        school'' means a nonprofit institutional day or 
        residential school that provides elementary education, 
        as determined under State law.
          [(6) Equipment.--The term ``equipment'' includes--
                  [(A) machinery, utilities, and built-in 
                equipment and any necessary enclosures or 
                structures to house such machinery, utilities, 
                or equipment; and
                  [(B) all other items necessary for the 
                functioning of a particular facility as a 
                facility for the provision of educational 
                services, including items such as instructional 
                equipment and necessary furniture; printed, 
                published, and audio-visual instructional 
                materials; telecommunications, sensory, and 
                other technological aids and devices; and 
                books, periodicals, documents, and other 
                related materials.
          [(7) Excess costs.--The term ``excess costs'' means 
        those costs that are in excess of the average annual 
        per-studentexpenditure in a local educational agency 
during the preceding school year for an elementary or secondary school 
student, as may be appropriate, and which shall be computed after 
deducting--
                  [(A) amounts received--
                          [(i) under part B of this title;
                          [(ii) under part A of title I of the 
                        Elementary and Secondary Education Act 
                        of 1965; or
                          [(iii) under part A of title VII of 
                        that Act; and
                  [(B) any State or local funds expended for 
                programs that would qualify for assistance 
                under any of those parts.
          [(8) Free appropriate public education.--The term 
        ``free appropriate public education'' means special 
        education and related services that--
                  [(A) have been provided at public expense, 
                under public supervision and direction, and 
                without charge;
                  [(B) meet the standards of the State 
                educational agency;
                  [(C) include an appropriate preschool, 
                elementary, or secondary school education in 
                the State involved; and
                  [(D) are provided in conformity with the 
                individualized education program required under 
                section 614(d).
          [(9) Indian.--The term ``Indian'' means an individual 
        who is a member of an Indian tribe.
          [(10) Indian tribe.--The term ``Indian tribe'' means 
        any Federal or State Indian tribe, band, rancheria, 
        pueblo, colony, or community, including any Alaska 
        Native village or regional village corporation (as 
        defined in or established under the Alaska Native 
        Claims Settlement Act).
          [(11) Individualized education program.--The term 
        ``individualized education program'' or ``IEP'' means a 
        written statement for each child with a disability that 
        is developed, reviewed, and revised in accordance with 
        section 614(d).
          [(12) Individualized family service plan.--The term 
        ``individualized family service plan'' has the meaning 
        given such term in section 636.
          [(13) Infant or toddler with a disability.--The term 
        ``infant or toddler with a disability'' has the meaning 
        given such term in section 632.
          [(14) Institution of higher education.--The item 
        ``institution of higher education''--
                  [(A) has the meaning given that term in 
                section 1201(a) of the Higher Education Act of 
                1965; and
                  [(B) also includes any community college 
                receiving funding from the Secretary of the 
                Interior under the Tribally Controlled 
                Community College Assistance Act of 1978.
          [(15) Local educational agency.--
                  [(A) The term ``local educational agency'' 
                means a public board of education or other 
                public authority legally constituted within a 
                State for either administrative control or 
                direction of, or to perform a service function 
                for, public elementary or secondary schools in 
                a city, county, township, school district, or 
                other political subdivision of a State, or for 
                such combination of school districts or 
                counties as arerecognized in a State as an 
administrative agency for its public elementary or secondary schools.
                  [(B) The term includes--
                          [(i) an educational service agency, 
                        as defined in paragraph (4); and
                          [(ii) any other public institution or 
                        agency having administrative control 
                        and direction of a public elementary or 
                        secondary school.
                  [(C) The term includes an elementary or 
                secondary school funded by the Bureau of Indian 
                Affairs, but only to the extent that such 
                inclusion makes the school eligible for 
                programs for which specific eligibility is not 
                provided to the school in another provision of 
                law and the school does not have a student 
                population that is smaller than the student 
                population of the local educational agency 
                receiving assistance under this Act with the 
                smallest student population, except that the 
                school shall not be subject to the jurisdiction 
                of any State educational agency other than the 
                Bureau of Indian Affairs.
          [(16) Native language.--The term ``native language'', 
        when used with reference to an individual of limited 
        English proficiency, means the language normally used 
        by the individual, or in the case of a child, the 
        language normally used by the parents of the child.
          [(17) Nonprofit.--The term ``nonprofit'', as applied 
        to a school, agency, organization, or institution, 
        means a school, agency, organization, or institution 
        owned and operated by one or more nonprofit 
        corporations or associations no part of the net 
        earnings of which inures, or may lawfully inure, to the 
        benefit of any private shareholder or individual.
          [(18) Outlying area.--The term ``outlying area'' 
        means the United States Virgin Islands, Guam, American 
        Samoa, and the Commonwealth of the Northern Mariana 
        Islands.
          [(19) Parent.--The term ``parent''--
                  [(A) includes a legal guardian; and
                  [(B) except as used in sections 615(b)(2) and 
                639(a)(5), includes an individual assigned 
                under either of those sections to be a 
                surrogate parent.
          [(20) Parent organization.--The term ``parent 
        organization'' has the meaning given that term in 
        section 682(g).
          [(21) Parent training and information center.--The 
        term ``parent training and information center'' means a 
        center assisted under section 682 or 683.
          [(22) Related services.--The term ``related 
        services'' means transportation, and such 
        developmental, corrective, and other supportive 
        services (including speech-language pathology and 
        audiology services, psychological services, physical 
        and occupational therapy, recreation, including 
        therapeutic recreation, social work services, 
        counseling services, including rehabilitation 
        counseling, orientation and mobility services, and 
        medical services, except that such medical services 
        shall be for diagnostic and evaluation purposes only) 
        as may be required to assist a child with a disability 
        to benefit from special education,and includes the 
early identification and assessment of disabling conditions in 
children.
          [(23) Secondary school.--The term ``secondary 
        school'' means a nonprofit institutional day or 
        residential school that provides secondary education, 
        as determined under State law, except that it does not 
        include any education beyond grade 12.
          [(24) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          [(25) Special education.--The term ``special 
        education'' means specially designed instruction, at no 
        cost to parents, to meet the unique needs of a child 
        with a disability, including--
                  [(A) instruction conducted in the classroom, 
                in the home, in hospitals and institutions, and 
                in other settings; and
                  [(B) instruction in physical education.
          [(26) Specific learning disability.--
                  [(A) In general.--The term ``specific 
                learning disability'' means a disorder in one 
                or more of the basic psychological processes 
                involved in understanding or in using language, 
                spoken or written, which disorder may manifest 
                itself in imperfect ability to listen, think, 
                speak, read, write, spell, or do mathematical 
                calculations.
                  [(B) Disorders included.--Such term includes 
                such conditions as perceptual disabilities, 
                brain injury, minimal brain dysfunction, 
                dyslexia, and developmental aphasia.
                  [(C) Disorders not included.--Such term does 
                not include a learning problem that is 
                primarily the result of visual, hearing, or 
                motor disabilities, of mental retardation, of 
                emotional disturbance, or of environmental, 
                cultural, or economic disadvantage.
          [(27) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, and each of the outlying areas.
          [(28) State educational agency.--The term ``State 
        educational agency'' means the State board of education 
        or other agency or officer primarily responsible for 
        the State supervision of public elementary and 
        secondary schools, or, if there is no such officer or 
        agency, an officer or agency designated by the Governor 
        or by State law.
          [(29) Supplementary aids and services.--The term 
        ``supplementary aids and services'' means, aids, 
        services, and other supports that are provided in 
        regular education classes or other education-related 
        settings to enable children with disabilities to be 
        educated with nondisabled children to the maximum 
        extent appropriate in accordance with section 
        612(a)(5).
          [(30) Transition services.--The term ``transition 
        services'' means a coordinated set of activities for a 
        student with a disability that--
                  [(A) is designed within an outcome-oriented 
                process, which promotes movement from school to 
                post-school activities, including post-
                secondary education, vocational training, 
                integrated employment (including 
supportedemployment), continuing and adult education, adult services, 
independent living, or community participation;
                  [(B) is based upon the individual student's 
                needs, taking into account the student's 
                preferences and interests; and
                  [(C) includes instruction, related services, 
                community experiences, the development of 
                employment and other post-school adult living 
                objectives, and, when appropriate, acquisition 
                of daily living skills and functional 
                vocational evaluation.

[SEC. 603. OFFICE OF SPECIAL EDUCATION PROGRAMS.

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

[SEC. 604. ABROGATION OF STATE SOVEREIGN IMMUNITY.

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

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

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

[SEC. 606. EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.

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

[SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

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

                       PART A--GENERAL PROVISIONS

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

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

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

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

SEC. 602. DEFINITIONS.

  Except as otherwise provided, as used in this Act:
          (1) Assistive technology device.--The term 
        ``assistive technology device'' means any item, piece 
        of equipment, or product system, whether acquired 
        commercially off the shelf, modified, or customized, 
        that is used to increase, maintain, or improve 
        functional capabilities of a child with a disability. 
        The term does not include a medical device that is 
        surgically implanted, or the post-surgical maintenance, 
        programming, or replacement of such device, or an 
        external device connected with the use of a surgically 
        implanted medical device (other than the costs of 
        performing routine maintenance and monitoring of such 
        external device at the same time the child is receiving 
        other services under this Act).
          (2) Assistive technology service.--The term 
        ``assistive technology service'' means any service that 
        directly assists a child with a disability in the 
        selection, acquisition, or use of an assistive 
        technology device. Such term includes--
                  (A) the evaluation of the needs of such 
                child, including a functional evaluation of the 
                child in the child's customary environment;
                  (B) purchasing, leasing, or otherwise 
                providing for the acquisition of assistive 
                technology devices by such child;
                  (C) selecting, designing, fitting, 
                customizing, adapting, applying, maintaining, 
                repairing, or replacing of assistive technology 
                devices;
                  (D) coordinating and using other therapies, 
                interventions, or services with assistive 
                technology devices, such as those associated 
                with existing education and rehabilitation 
                plans and programs;
                  (E) training or technical assistance for such 
                child, or, where appropriate, the family of 
                such child; and
                  (F) training or technical assistance for 
                professionals (including individuals providing 
                education and rehabilitation services), 
                employers, or other individuals who provide 
                services to, employ, or are otherwise 
                substantially involved in the major life 
                functions of such child.
          (3) Child with a disability.--
                  (A) In general.--The term ``child with a 
                disability'' means a child--
                          (i) with mental retardation, hearing 
                        impairments (including deafness), 
                        speech or language impairments, visual 
                        impairments (including blindness), 
                        serious emotional disturbance 
                        (hereinafter referred to as `emotional 
                        disturbance'), orthopedic impairments, 
                        autism, traumatic brain injury, other 
                        health impairments, or specific 
                        learning disabilities; and
                          (ii) who, by reason thereof, needs 
                        special education and related services.
                  (B) Child aged 3 through 9.--The term ``child 
                with a disability'' for a child aged 3 through 
                9 (or any subset of that age range, including 
                ages 3 through 5), may, at the discretion of 
                the State and the local educational agency, 
                include a child--
                          (i) experiencing developmental 
                        delays, as defined by the State and as 
                        measured by appropriate diagnostic 
                        instruments and procedures, in 1 or 
                        more of the following areas: physical 
                        development, cognitive development, 
                        communication development, social or 
                        emotional development, or adaptive 
                        development; and
                          (ii) who, by reason thereof, needs 
                        special education and related services.
          (4) Core academic subject.--The term ``core academic 
        subject'' has the meaning given the term in section 
        9101(11) of the Elementary and Secondary Education Act 
        of 1965.
          (5) Educational service agency.--The term 
        ``educational service agency''--
                  (A) means a regional public multiservice 
                agency--
                          (i) authorized by State law to 
                        develop, manage, and provide services 
                        or programs to local educational 
                        agencies; and
                          (ii) recognized as an administrative 
                        agency for purposes of the provision of 
                        special education and related services 
                        provided within public elementary 
                        schools and secondary schools of the 
                        State; and
                  (B) includes any other public institution or 
                agency having administrative control and 
                direction over a public elementary school or 
                secondary school.
          (6) Elementary school.--The term ``elementary 
        school'' means a nonprofit institutional day or 
        residential school that provides elementary education, 
        as determined under State law.
          (7) Equipment.--The term ``equipment'' includes--
                  (A) machinery, utilities, and built-in 
                equipment, and any necessary enclosures or 
                structures to house such machinery, utilities, 
                or equipment; and
                  (B) all other items necessary for the 
                functioning of a particular facility as a 
                facility for the provision of educational 
                services, including items such as instructional 
                equipment and necessary furniture; printed, 
                published, and audio-visual instructional 
                materials; telecommunications, sensory, and 
                other technological aids and devices; and 
                books, periodicals, documents, and other 
                related materials.
          (8) Excess costs.--The term ``excess costs'' means 
        those costs that are in excess of the average annual 
        per-student expenditure in a local educational agency 
        during the preceding school year for an elementary 
        school or secondary school student, as may be 
        appropriate, and which shall be computed after 
        deducting--
                  (A) amounts received--
                          (i) under part B of this title;
                          (ii) under part A of title I of the 
                        Elementary and Secondary Education Act 
                        of 1965; and
                          (iii) under parts A and B of title 
                        III of that Act; and
                  (B) any State or local funds expended for 
                programs that would qualify for assistance 
                under any of those parts.
          (9) Free appropriate public education.--The term 
        ``free appropriate public education'' means special 
        education and related services that--
                  (A) have been provided at public expense, 
                under public supervision and direction, and 
                without charge;
                  (B) meet the standards of the State 
                educational agency;
                  (C) include an appropriate preschool, 
                elementary school, or secondary school 
                education in the State involved; and
                  (D) are provided in conformity with the 
                individualized education program required under 
                section 614(d).
          (10) Highly qualified.--The term ``highly qualified'' 
        means the following:
                  (A) All special education teachers.--When 
                used with respect to any public elementary 
                school or secondary school special education 
                teacher teaching in a State, means that the 
                teacher holds at least a bachelor's degree and 
                that--
                          (i) the teacher has obtained full 
                        State certification as a special 
                        education teacher through a State-
                        approved special education teacher 
                        preparation program (including 
                        certification obtained through 
                        alternative routes to certification) or 
                        other comparably rigorous methods, or 
                        passed the State teacher special 
                        education licensing examination, and 
                        holds a license to teach in the State 
                        as a special education teacher, except 
                        that when used with respect to any 
                        teacher teaching in a public charter 
                        school, the term means that the teacher 
                        meets the requirements set forth in the 
                        State's public charter school law;
                          (ii) the teacher has not had 
                        certification or licensure requirements 
                        waived on an emergency, temporary, or 
                        provisional basis; and
                          (iii) the teacher demonstrates 
                        knowledge of special education and the 
                        teaching skills necessary to teach 
                        children with disabilities.
                  (B) New elementary school special education 
                teachers.--When used with respect to a special 
                education elementary school teacher who is new 
                to the profession, means that the teacher 
                demonstrated, by passing a rigorous State test, 
                subject knowledge and teaching skills in 
                reading, writing, mathematics, and other areas 
                of the basic elementary school curriculum 
                (which may consist of passing a State-required 
                certification or licensing test or tests in 
                reading, writing, mathematics, and other areas 
                of the basic elementary school curriculum).
                  (C) New middle school and secondary school 
                special education teachers.--When used with 
                respect to a special education middle school or 
                secondary school teacher who is new to the 
                profession, means that the teacher has 
                demonstrated a high level of competency in each 
                of the academic subjects in which the teacher 
                teaches by--
                          (i) passing a rigorous State academic 
                        subject test in each of the academic 
                        subjects in which the teacher teaches 
                        (which may consist of a passing level 
                        of performance on a State-required 
                        certification or licensing test or 
                        tests in each of the academic subjects 
                        in which the teacher teaches); or
                          (ii) successful completion, in each 
                        of the academic subjects in which the 
                        teacher teaches, of an academic major, 
                        graduate degree, coursework equivalent 
                        to an undergraduate academic major, or 
                        advanced certification or 
                        credentialing.
                  (D) Veteran special education teachers.--When 
                used with respect to an elementary school, 
                middle school, or secondary school special 
                education teacher who is not new to the 
                profession, means that the teacher has--
                          (i) met the applicable standard in 
                        subparagraph (B) or (C), which includes 
                        an option for a test; or
                          (ii) has demonstrated competence in 
                        all the academic subjects in which the 
                        teacher teaches based on a high 
                        objective uniform State standard of 
                        evaluation for special education 
                        teachers that--
                                  (I) is set by the State for 
                                both grade-appropriate academic 
                                subject matter knowledge and 
                                special education teaching 
                                skills;
                                  (II) is aligned with 
                                challenging State academic 
                                content and student academic 
                                achievement standards and 
                                developed in consultation with 
                                special education teachers, 
                                core content specialists, 
                                teachers, principals, and 
                                school administrators;
                                  (III) provides objective, 
                                coherent information about the 
                                teachers' attainment of 
                                knowledge of core content 
                                knowledge in the academic 
                                subjects in which a teacher 
                                teaches;
                                  (IV) is applied uniformly to 
                                all special education teachers 
                                who teach in the same academic 
                                subject and the same grade 
                                level throughout the State;
                                  (V) takes into consideration, 
                                but is not based primarily on, 
                                the time the teacher has been 
                                teaching in the academic 
                                subject;
                                  (VI) is made available to the 
                                public on request; and
                                  (VII) may involve multiple 
                                objective measures of teacher 
                                competency.
                  (E) Teachers providing consultative 
                services.--
                          (i) In general.--Notwithstanding 
                        subparagraphs (B) through (D), when 
                        used with respect to a special 
                        education teacher who provides only 
                        consultative services to a highly 
                        qualified regular education teacher (as 
                        the term highly qualified is defined in 
                        section 9101(23) of the Elementary and 
                        Secondary Education Act of 1965), means 
                        that the teacher meets the requirements 
                        of subparagraph (A).
                          (ii) Consultative services.--As used 
                        in clause (i), the term ``consultative 
                        services'' means services that adjust 
                        the learning environment, modify 
                        instructional methods, adapt curricula, 
                        use positive behavior supports and 
                        interventions, and select and implement 
                        appropriate accommodations to meet the 
                        needs of individual children.
                  (F) Exception.--Notwithstanding subparagraphs 
                (B) through (D), when used with respect to a 
                special education teacher who teaches more than 
                1 subject, primarily to middle school and 
                secondary school-aged children with significant 
                cognitive disabilities, means that the teacher 
                has demonstrated subject knowledge and teaching 
                skills in reading, mathematics, and other areas 
                of the basic elementary school curriculum by--
                          (i) passing a rigorous State test 
                        (which may consist of passing a State-
                        required certification or licensing 
                        test or tests in those areas); or
                          (ii) demonstrating competency in all 
                        the academic subjects in which the 
                        teacher teaches, based on a high 
                        objective uniform State standard as 
                        described in subparagraph (D)(ii).
          (11) Indian.--The term ``Indian'' means an individual 
        who is a member of an Indian tribe.
          (12) Indian tribe.--The term ``Indian tribe'' means 
        any Federal or State Indian tribe, band, rancheria, 
        pueblo, colony, or community, including any Alaska 
        Native village or regional village corporation (as 
        defined in or established under the Alaska Native 
        Claims Settlement Act).
          (13) Individualized education program.--The term 
        ``individualized education program'' or ``IEP'' means a 
        written statement for each child with a disability that 
        is developed, reviewed, and revised in accordance with 
        section 614(d).
          (14) Individualized family service plan.--The term 
        ``individualized family service plan'' has the meaning 
        given such term in section 636.
          (15) Infant or toddler with a disability.--The term 
        ``infant or toddler with a disability'' has the meaning 
        given such term in section 632.
          (16) Institution of higher education.--The term 
        ``institution of higher education''--
                  (A) has the meaning given such term in 
                section 101 (a) and (b) of the Higher Education 
                Act of 1965; and
                  (B) also includes any community college 
                receiving funding from the Secretary of the 
                Interior under the Tribally Controlled College 
                or University Assistance Act of 1978.
          (17) Limited english proficient.--The term ``limited 
        English proficient'' has the meaning given the term in 
        section 9101(25) of the Elementary and Secondary 
        Education Act of 1965.
          (18) Local educational agency.--
                  (A) The term ``local educational agency'' 
                means a public board of education or other 
                public authority legally constituted within a 
                State for either administrative control or 
                direction of, or to perform a service function 
                for, public elementary schools or secondary 
                schools in a city, county, township, school 
                district, or other political subdivision of a 
                State, or for such combination of school 
                districts or counties as are recognized in a 
                State as an administrative agency for its 
                public elementary schools or secondary schools.
                  (B) The term includes--
                          (i) an educational service agency, as 
                        defined in paragraph (5); and
                          (ii) any other public institution or 
                        agency having administrative control 
                        and direction of a public elementary 
                        school or secondary school.
                  (C) The term includes an elementary school or 
                secondary school funded by the Bureau of Indian 
                Affairs, but only to the extent that such 
                inclusion makes the school eligible for 
                programs for which specific eligibility is not 
                provided to the school in another provision of 
                law and the school does not have a student 
                population that is smaller than the student 
                population of the local educational agency 
                receiving assistance under this Act with the 
                smallest student population, except that the 
                school shall not be subject to the jurisdiction 
                of any State educational agency other than the 
                Bureau of Indian Affairs.
          (19) Native language.--The term ``native language'', 
        when used with respect to an individual of limited 
        English proficiency, means the language normally used 
        by the individual, or in the case of a child, the 
        language normally used by the parents of the child.
          (20) Nonprofit.--The term ``nonprofit'', as applied 
        to a school, agency, organization, or institution, 
        means a school, agency, organization, or institution 
        owned and operated by 1 or more nonprofit corporations 
        or associations no part of the net earnings of which 
        inures, or may lawfully inure, to the benefit of any 
        private shareholder or individual.
          (21) Outlying area.--The term ``outlying area'' means 
        the United States Virgin Islands, Guam, American Samoa, 
        and the Commonwealth of the Northern Mariana Islands.
          (22) Parent.--The term ``parent''--
                  (A) includes a legal guardian; and
                  (B) except as used in sections 615(b)(2) and 
                639(a)(5), includes an individual assigned 
                under either of those sections to be a 
                surrogate parent.
          (23) Parent organization.--The term ``parent 
        organization'' has the meaning given such term in 
        section 671(g).
          (24) Parent training and information center.--The 
        term ``parent training and information center'' means a 
        center assisted under section 671 or 672.
          (25) Related services.--The term ``related services'' 
        means transportation, and such developmental, 
        corrective, and other supportive services (including 
        speech-language pathology and audiology services, 
        interpreting services, psychological services, physical 
        and occupational therapy, recreation, including 
        therapeutic recreation, social work services, school 
        health services, counseling services, including 
        rehabilitation counseling, orientation and mobility 
        services, travel training instruction, and medical 
        services, except that such medical services shall be 
        for diagnostic and evaluation purposes only) as may be 
        required to assist a child with a disability to benefit 
        from special education, and includes the early 
        identification and assessment of disabling conditions 
        in children. The term does not include a medical device 
        that is surgically implanted, or the post-surgical 
        maintenance, programming, or replacement of such 
        device, or an external device connected with the use of 
        a surgically implanted medical device (other than the 
        costs of performing routine maintenance and monitoring 
        of such external device at the same time the child is 
        receiving other services under this Act).
          (26) Secondary school.--The term ``secondary school'' 
        means a nonprofit institutional day or residential 
        school that provides secondary education, as determined 
        under State law, except that it does not include any 
        education beyond grade 12.
          (27) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          (28) Special education.--The term ``special 
        education'' means specially designed instruction, at no 
        cost to parents, to meet the unique needs of a child 
        with a disability, including--
                  (A) instruction conducted in the classroom, 
                in the home, in hospitals and institutions, and 
                in other settings; and
                  (B) instruction in physical education.
          (29) Specific learning disability.--
                  (A) In general.--The term ``specific learning 
                disability'' means a disorder in 1 or more of 
                the basic psychological processes involved in 
                understanding or in using language, spoken or 
                written, which disorder may manifest itself in 
                the imperfect ability to listen, think, speak, 
                read, write, spell, or do mathematical 
                calculations.
                  (B) Disorders included.--Such term includes 
                such conditions as perceptual disabilities, 
                brain injury, minimal brain dysfunction, 
                dyslexia, and developmental aphasia.
                  (C) Disorders not included.--Such term does 
                not include a learning problem that is 
                primarily the result of visual, hearing, or 
                motor disabilities, of mental retardation, of 
                emotional disturbance, or of environmental, 
                cultural, or economic disadvantage.
          (30) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, and each of the outlying areas.
          (31) State educational agency.--The term ```State 
        educational agency'' means the State board of education 
        or other agency or officer primarily responsible for 
        the State supervision of public elementary schools and 
        secondary schools, or, if there is no such officer or 
        agency, an officer or agency designated by the Governor 
        or by State law.
          (32) Supplementary aids and services.--The term 
        ``supplementary aids and services'' means aids, 
        services, and other supports that are provided in 
        regular education classes or other education-related 
        settings to enable children with disabilities to be 
        educated with nondisabled children to the maximum 
        extent appropriate in accordance with section 
        612(a)(5).
          (33) Transition services.--The term ``transition 
        services'' means a coordinated set of activities for a 
        child with a disability (as defined in paragraph 
        (3)(A)) that--
                  (A) is designed to be within a results-
                oriented process, that is focused on improving 
                the academic and functional achievement of the 
                child with a disability to facilitate the 
                child's movement from school to post-school 
                activities, including post-secondary education, 
                vocational training, integrated employment 
                (including supported employment), continuing 
                and adult education, adult services, 
                independent living, or community participation;
                  (B) is based on the individual child's needs, 
                taking into account the child's strengths, 
                preferences, and interests; and
                  (C) includes instruction, related services, 
                community experiences, the development of 
                employment and other post-school adult living 
                objectives, and, when appropriate, acquisition 
                of daily living skills and functional 
                vocational evaluation.

SEC. 603. OFFICE OF SPECIAL EDUCATION PROGRAMS.

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

SEC. 604. ABROGATION OF STATE SOVEREIGN IMMUNITY.

  (a) In General.--A State shall not be immune under the 11th 
amendment to the Constitution of the United States from suit in 
Federal court for a violation of this Act.
  (b) Remedies.--In a suit against a State for a violation of 
this Act, remedies (including remedies both at law and in 
equity) are available for such a violation to the same extent 
as those remedies are available for such a violation in the 
suit against any public entity other than a State.
  (c) Effective Date.--Subsections (a) and (b) apply with 
respect to violations that occur in whole or part after the 
date of enactment of the Education of the Handicapped Act 
Amendments of 1990.

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

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

SEC. 606. EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.

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

SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

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

SEC. 608. STATE ADMINISTRATION.

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

SEC. 609. REPORT TO CONGRESS.

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

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

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

    [(a) Grants to States.--
          [(1) Purpose of grants.--The Secretary shall make 
        grants to States and the outlying areas, and provide 
        funds to the Secretary of the Interior, to assist them 
        to provide special education and related services to 
        children with disabilities in accordance with this 
        part.
          [(2) Maximum amounts.--The maximum amount of the 
        grant a State may receive under this section for any 
        fiscal year is--
                  [(A) the number of children with disabilities 
                in the State who are receiving special 
                education and related services--
                          [(i) aged 3 through 5 if the State is 
                        eligible for a grant under section 619; 
                        and
                          [(ii) aged 6 through 21; multiplied 
                        by
                  [(B) 40 percent of the average per-pupil 
                expenditure in public elementary and secondary 
                schools in the United States.
    [(b) Outlying Areas and Freely Associated States.--
          [(1) Funds reserved.--From the amount appropriated 
        for any fiscal year under subsection (j), the Secretary 
        shall reserve not more than one percent, which shall be 
        used--
                  [(A) to provide assistance to the outlying 
                areas in accordance with their respective 
                populations of individuals aged 3 through 21; 
                and
                  [(B) for fiscal years 1998 through 2001, to 
                carry out the competition described in 
                paragraph (2), except that the amount reserved 
                to carry out that competition shall not exceed 
                the amount reserved for fiscal year 1996 for 
                thecompetition under part B of this Act 
described under the heading ``SPECIAL EDUCATION'' in Public Law 104-
134.
          [(2) Limitation for freely associated states.--
                  [(A) Competitive grants.--The Secretary shall 
                use funds described in paragraph (1)(B) to 
                award grants, on a competitive basis, to Guam, 
                American Samoa, the Commonwealth of the 
                Northern Mariana Islands, and the freely 
                associated States to carry out the purposes of 
                this part.
                  [(B) Award basis.--The Secretary shall award 
                grants under subparagraph (A) on a competitive 
                basis, pursuant to the recommendations of the 
                Pacific Region Educational Laboratory in 
                Honolulu, Hawaii. Those recommendations shall 
                be made by experts in the field of special 
                education and related services.
                  [(C) Assistance requirements.--Any freely 
                associated State that wishes to receive funds 
                under this part shall include, in its 
                application for assistance--
                          [(i) information demonstrating that 
                        it will meet all conditions that apply 
                        to States under this part;
                          [(ii) an assurance that, 
                        notwithstanding any other provision of 
                        this part, it will use those funds only 
                        for the direct provision of special 
                        education and related services to 
                        children with disabilities and to 
                        enhance its capacity to make a free 
                        appropriate public education available 
                        to all children with disabilities;
                          [(iii) the identity of the source and 
                        amount of funds, in addition to funds 
                        under this part, that it will make 
                        available to ensure that a free 
                        appropriate public education is 
                        available to all children with 
                        disabilities within its jurisdiction; 
                        and
                          [(iv) such other information and 
                        assurances as the Secretary may 
                        require.
                  [(D) Termination of eligibility.--
                Notwithstanding any other provision of law, the 
                freely associated States shall not receive any 
                funds under this part for any program year that 
                begins after September 30, 2001.
                  [(E) Administrative costs.--The Secretary may 
                provide not more than five percent of the 
                amount reserved for grants under this paragraph 
                to pay the administrative costs of the Pacific 
                Region Educational Laboratory under 
                subparagraph (B).
          [(3) Limitation.--An outlying area is not eligible 
        for a competitive award under paragraph (2) unless it 
        receives assistance under paragraph (1)(A).
          [(4) Special rule.--The provisions of Public Law 95-
        134, permitting the consolidation of grants by the 
        outlying areas, shall not apply to funds provided to 
        those areas or to the freely associated States under 
        this section.
          [(5) Eligibility for discretionary programs.--The 
        freely associated States shall be eligible to receive 
        assistance under subpart 2 of part D of this Act until 
        September 30, 2001.
          [(6) Definition.--As used in this subsection, the 
        term ``freely associated States'' means the Republic of 
        the MarshallIslands, the Federated States of 
Micronesia, and the Republic of Palau.
    [(c) Secretary of the Interior.--From the amount 
appropriated for any fiscal year under subsection (j), the 
Secretary shall reserve 1.226 percent to provide assistance to 
the Secretary of the Interior in accordance with subsection 
(i).
    [(d) allocations to States.--
          [(1) In general.--After reserving funds for studies 
        and evaluations under section 674(e), and for payments 
        to the outlying areas and the Secretary of the Interior 
        under subsections (b) and (c), the Secretary shall 
        allocate the remaining amount among the States in 
        accordance with paragraph (2) or subsection (e), as the 
        case may be.
          [(2) Interim formula.--Except as provided in 
        subsection (e), the Secretary shall allocate the amount 
        described in paragraph (1) among the States in 
        accordance with section 611(a)(3), (4), and (5) and 
        (b)(1), (2), and (3) of this Act, as in effect prior to 
        the enactment of the Individuals with Disabilities 
        Education Act Amendments of 1997, except that the 
        determination of the number of children with 
        disabilities receiving special education and related 
        services under such section 611(a)(3) may, at the 
        State's discretion, be calculated as of the last Friday 
        in October or as of December 1 of the fiscal year for 
        which the funds are appropriated.
    [(e) Permanent Formula.--
          [(1) Establishment of base year.--The Secretary shall 
        allocate the amount described in subsection (d)(1) 
        among the States in accordance with this subsection for 
        each fiscal year beginning with the first fiscal year 
        for which the amount appropriated under subsection (j) 
        is more than $4,924,672,200.
          [(2) Use of base year.--
                  [(A) Definition.--As used in this subsection, 
                the term ``base year'' means the fiscal year 
                preceding the first fiscal year in which this 
                subsection applies.
                  [(B) Special rule for use of base year 
                amount.--If a State received any funds under 
                this section for the base year on the basis of 
                children aged 3 through 5, but does not make a 
                free appropriate public education available to 
                all children with disabilities aged 3 through 5 
                in the State in any subsequent fiscal year, the 
                Secretary shall compute the State's base year 
                amount, solely for the purpose of calculating 
                the State's allocation in that subsequent year 
                under paragraph (3) or (4), by subtracting the 
                amount allocated to the State for the base year 
                on the basis of those children.
          [(3) Increase in funds.--If the amount available for 
        allocations to States under paragraph (1) is equal to 
        or greater than the amount allocated to the States 
        under this paragraph for the preceding fiscal year, 
        those allocations shall be calculated as follows:
                  [(A)(i) Except as provided in subparagraph 
                (B), the Secretary shall--
                          [(I) allocate to each State the 
                        amount it received for the base year;
                          [(II) allocate 85 percent of any 
                        remaining funds to States on the basis 
                        of their relative populations of 
                        children aged 3 through 21 who are of 
                        the same age as children with 
                        disabilities for whom the State ensures 
                        the availability of a free appropriate 
                        public education under this part; and
                          [(III) allocate 15 percent of those 
                        remaining funds to States on the basis 
                        of their relative populations of 
                        children described in subclause (II) 
                        who are living in poverty.
                  [(ii) For the purpose of making grants under 
                this paragraph, the Secretary shall use the 
                most recent population data, including data on 
                children living in poverty, that are available 
                and satisfactory to the Secretary.
                  [(B) Notwithstanding subparagraph (A), 
                allocations under this paragraph shall be 
                subject to the following:
                          [(i) No State's allocation shall be 
                        less than its allocation for the 
                        preceding fiscal year.
                          [(ii) No State's allocation shall be 
                        less than the greatest of--
                                  [(I) the sum of--
                                          [(aa) the amount it 
                                        received for the base 
                                        year; and
                                          [(bb) one third of 
                                        one percent of the 
                                        amount by which the 
                                        amount appropriated 
                                        under subsection (j) 
                                        exceeds the amount 
                                        appropriated under this 
                                        section for the base 
                                        year;
                                  [(II) the sum of--
                                          [(aa) the amount it 
                                        received for the 
                                        preceding fiscal year; 
                                        and
                                          [(bb) that amount 
                                        multiplied by the 
                                        percentage by which the 
                                        increase in the funds 
                                        appropriated from the 
                                        preceding fiscal year 
                                        exceeds 1.5 percent; or
                                  [(III) the sum of--
                                          [(aa) the amount it 
                                        received for the 
                                        preceding fiscal year; 
                                        and
                                          [(bb) that amount 
                                        multiplied by 90 
                                        percent of the 
                                        percentage increase in 
                                        the amount appropriated 
                                        from the preceding 
                                        fiscal year.
                          [(iii) Notwithstanding clause (ii), 
                        no State's allocation under this 
                        paragraph shall exceed the sum of--
                                  [(I) the amount it received 
                                for the preceding fiscal year; 
                                and
                                  [(II) that amount multiplied 
                                by the sum of 1.5 percent and 
                                the percentage increase in the 
                                amount appropriated.
                  [(C) If the amount available for allocations 
                under this paragraph is insufficient to pay 
                those allocations in full, those allocations 
                shall be ratably reduced, subject to sub-
                paragraph (B)(i).
          [(4) Decrease in funds.--If the amount available for 
        allocations to States under paragraph (1) is less than 
        the amountallocated to the States under this section 
for the preceding fiscal year, those allocations shall be calculated as 
follows:
                  [(A) If the amount available for allocations 
                is greater than the amount allocated to the 
                States for the base year, each State shall be 
                allocated the sum of--
                          [(i) the amount it received for the 
                        base year; and
                          [(ii) an amount that bears the same 
                        relation to any remaining funds as the 
                        increase the State received for the 
                        preceding fiscal year over the base 
                        year bears to the total of all such 
                        increases for all States.
                  [(B)(i) If the amount available for 
                allocations is equal to or less than the amount 
                allocated to the States for the base year, each 
                State shall be allocated the amount it received 
                for the base year.
                  [(ii) If the amount available is insufficient 
                to make the allocations described in clause 
                (i), those allocations shall be ratably 
                reduced.
    [(f) State-Level Activities.--
          [(1) General.--
                  [(A) Each State may retain not more than the 
                amount described in subparagraph (B) for 
                administration and other State-level activities 
                in accordance with paragraphs (2) and (3).
                  [(B) For each fiscal year, the Secretary 
                shall determine and report to the State 
                educational agency an amount that is 25 percent 
                of the amount the State received under this 
                section for fiscal year 1997, cumulatively 
                adjusted by the Secretary for each succeeding 
                fiscal year by the lesser of--
                          [(i) the percentage increase, if any, 
                        from the preceding fiscal year in the 
                        State's allocation under this section; 
                        or
                          [(ii) the rate of inflation, as 
                        measured by the percentage increase, if 
                        any, from the preceding fiscal year in 
                        the Consumer Price Index For All Urban 
                        Consumers, published by the Bureau of 
                        Labor Statistics of the Department of 
                        Labor.
                  [(C) A State may use funds it retains under 
                subparagrph (A) without regard to--
                          [(i) the prohibition on commingling 
                        of funds in section 612(a)(18)(B); and
                          [(ii) the prohibition on supplanting 
                        other funds in section 612(a)(18)(C).
          [(2) State administration.--
                  [(A) For the purpose of administering this 
                part, including section 619 (including the 
                coordination of activities under this part 
                with, and providing technical assistance to, 
                other programs that provide services to 
                children with disabilities)--
                          [(i) each State may use not more than 
                        twenty percent of the maximum amount it 
                        may retain under paragraph (1)(a) for 
                        any fiscal year or $500,000 (adjusted 
                        by the cumulative rate of inflation 
                        since fiscal year 1998, as measured by 
                        the percentage increase, if any, in the 
                        Consumer Price Index For All Urban 
                        Consumers,[published by the Bureau of 
Labor Statistics of the Department of Labor), whichever is greater; and
                          [(ii) each outlying area may use up 
                        to five percent of the amount it 
                        receives under this section for any 
                        fiscal year or $35,000, whichever is 
                        greater.
                  [(B) Funds described in subparagraph (A) may 
                also be used for the administration of part C 
                of this Act, if the State educational agency is 
                the lead agency for the State under that part.
          [(3) Other state-level activities.--Each State shall 
        use any funds it retains under paragraph (1) and does 
        not use for administration under paragraph (2) for any 
        of the following:
                  [(A) Support and direct services, including 
                technical assistance and personnel development 
                and training.
                  [(B) Administrative costs of monitoring and 
                complaint investigation, but only to the extent 
                that those costs exceed the costs incurred for 
                those activities during fiscal year 1985.
                  [(C) To establish and implement the mediation 
                process required by section 615(e), including 
                providing for the costs of mediators and 
                support personnel.
                  [(D) To assist local educational agencies in 
                meeting personnel shortages.
                  [(E) To develop a State Improvement Plan 
                under subpart 1 of part D.
                  [(F) Activities at the State and local levels 
                to meet the performance goals established by 
                the State under section 612(a)(16) and to 
                support implementation of the State Improvement 
                Plan under subpart 1 of part D if the State 
                receives funds under that subpart.
                  [(G) To supplement other amounts used to 
                develop and implement a Statewide coordinated 
                services system designed to improve results for 
                children and families, including children with 
                disabilities and their families, but not to 
                exceed one percent of the amount received by 
                the State under this section. This system shall 
                be coordinated with and, to the extent 
                apropriate, build on the system of coordinated 
                services developed by the State under part C of 
                this Act.
                  [(H) For subgrants to local educational 
                agencies for the purposes described in 
                paragraph (4)(A).
          [(4)(A) Subgrants to local educational agencies for 
        capacity--building and improvement.--In any fiscal year 
        in which the percentage increase in the State's 
        allocation under this section exceeds the rate of 
        inflation (as measured by the percentage increase, if 
        any, from the preceding fiscal year in the Consumer 
        Price Index For All Urban Consumers, published by the 
        Bureau of Labor Statistics of the Department of Labor), 
        each State shall reserve, from its allocation under 
        this section, the amount described in subparagraph (B) 
        to make subgrants to local educational agencies, unless 
        that amount is less than $100,000, to assist them in 
        providing direct servicesand in making systemic change 
to improve results for children with disabilities through one or more 
of the following:
                  [(i) Direct services, including alternative 
                programming for children who have been expelled 
                from school, and services for children in 
                correctional facilities, children enrolled in 
                State-operated or State-supported schools, and 
                children in charter schools.
                  [(ii) Addressing needs or carrying out 
                improvement strategies identified in the 
                State's Improvement Plan under subpart 1 of 
                part D.
                  [(iii) Adopting promising practices, 
                materials, and technology, based on knowledge 
                derived from education research and other 
                sources.
                  [(iv) Establishing, expanding, or 
                implementing interagency agreements and 
                arrangements between local educational agencies 
                and other agencies or organizations concerning 
                the provision of services to children with 
                disabilities and their families.
                  [(v) Increasing cooperative problem-solving 
                between parents and school personnel and 
                promoting the use of alternative dispute 
                resolution.
          [(B) Maximum subgrant.--For each fiscal year, the 
        amount referred to in subparagraph (A) is--
                  [(i) the maximum amount the State was allowed 
                to retain under paragraph (1)(A) for the prior 
                fiscal year, or for fiscal year 1998, 25 
                percent of the State's allocation for fiscal 
                year 1997 under this section; multiplied by
                  [(ii) the difference between the percentage 
                increase in the State's allocation under this 
                section and the rate of inflation, as measured 
                by the percentage increase, if any, from the 
                preceding fiscal year in the Consumer Price 
                Index For All Urban Consumers, published by the 
                Bureau of Labor Statistics of the Department of 
                Labor.
          [(5) Report on use of funds.--As part of the 
        information required to be submitted to the Secretary 
        under section 612, each State shall annually describe--
                  [(A) how amounts retained under paragraph (1) 
                will be used to meet the requirements of this 
                part;
                  [(B) how those amounts will be allocated 
                among the activities described in paragraphs 
                (2) and (3) to meet State priorities based on 
                input from local educational agencies; and
                  [(C) the percentage of those amounts, if any, 
                that will be distributed to local educational 
                agencies by formula.
    [(g) Subgrants to local educational agencies.--
          [(1) Subgrants required.--East State that receives a 
        grant under this section for any fiscal year shall 
        distribute any funds it does not retain under 
        subsection (f) (at least 75 percent of the grant funds) 
        to local educational agencies in the State that have 
        established their eligibility under section 613, and to 
        State agencies that received funds under section 
        614A(a) of this Act for fiscal year 1997, as then in 
        effect, and have established their eligibility under 
        section 613, for use in accordance with this part.
          [(2) Allocations to local educational agencies.--
                  [(A) Interim procedure.--For each fiscal year 
                for which funds are allocated to States under 
                subsection (d)(2), each State shall allocate 
                funds under paragraph (1) in accordance with 
                section 611(d) of this Act, as in effect prior 
                to the enactment of the Individuals with 
                Disabilities Education Act Amendments of 1997.
                  [(B) Permanent procedure.--For each fiscal 
                year for which funds are allocated to States 
                under subsection (e), each State shall allocate 
                funds under paragraph (1) as follows:
                          [(i) Base payments.--The State shall 
                        first award each agency described in 
                        paragraph (1) the amount that agency 
                        would have received under this section 
                        for the base year, as defined in 
                        subsection (e)(2)(A), if the State had 
                        distributed 75 percent of its grant for 
                        that year under section 611(d), as then 
                        in effect.
                          [(ii) Allocation of remaining 
                        funds.--After making allocations under 
                        clause (i), the State shall--
                                  [(I) allocate 85 percent of 
                                any remaining funds to those 
                                agencies on the basis of the 
                                relative numbers of children 
                                enrolled in public and private 
                                elementary and secondary 
                                schools within the agency's 
                                jurisdiction; and
                                  [(II) allocate 15 percent of 
                                those remaining funds to those 
                                agencies in accordance with 
                                their relative numbers of 
                                children living in poverty, as 
                                determined by the State 
                                educational agency.
          [(3) Former chapter 1 state agencies.--
                  [(A) To the extent necessary, the State--
                          [(i) shall use funds that are 
                        available under subsection (f)(1)(A) to 
                        ensure that each State agency that 
                        received fiscal year 1994 funds under 
                        subpart 2 of part D of chapter 1 of 
                        title I of the Elementary and Secondary 
                        Education Act of 1965 receives, from 
                        the combination of funds under 
                        subsection (f)(1)(A) and funds provided 
                        under paragraph (1) of this subsection, 
                        an amount equal to--
                                  [(I) the number of children 
                                with disabilities, aged 6 
                                through 21, to whom the agency 
                                was providing special education 
                                and related services on 
                                December 1 of the fiscal year 
                                for which the funds were 
                                appropriated, subject to the 
                                limitation in subparagraph (B); 
                                multiplied by
                                  [(II) the per-child amount 
                                provided under such subpart for 
                                fiscal year 1994; and
                          [(ii) may use those funds to ensure 
                        that each local educational agency that 
                        received fiscal year 1994 funds under 
                        that subpart for children who had 
                        transferred from a State-operated or 
                        State-supported school or program 
                        assisted under that subpart receives, 
                        from the combination of funds available 
                        under subsection (f)(1)(A) and funds 
                        provided under paragraph (1) of this 
                        subsection, an amount for each such 
                        child, aged 3through 21 to whom the 
agency was providing special education and related services on December 
1 of the fiscal year for which the funds were appropriated, equal to 
the per-child amount the agency received under that subpart for fiscal 
year 1994.
                  [(B) The number of children counted under 
                subparagraph (A)(i)(I) shall not exceed the 
                number of children aged 3 through 21 for whom 
                the agency received fiscal year 1994 funds 
                under subpart 2 of part D of chapter 1 of title 
                I of the Elementary and Secondary Education Act 
                of 1965.
          [(4) Reallocation of funds.--If a State educational 
        agency determines that a local educational agency is 
        adequately providing a free appropriate public 
        education to all children with disabilities residing in 
        the area served by that agency with State and local 
        funds, the State educational agency may reallocate any 
        portion of the funds under this part that are not 
        needed by that local agency to provide a free 
        appropriate public education to other local educational 
        agencies in the State that are not adequately providing 
        special education and related services to all children 
        with disabilities residing in the areas they serve.
    [(h) Definitions.--For the purpose of this section--
          [(1) the term ``average per-pupil expenditure in 
        public elementary and secondary schools in the United 
        States'' means--
                  [(A) without regard to the source of funds--
                          [(i) the aggregate current 
                        expenditures, during the second fiscal 
                        year preceding the fiscal year for 
                        which the determination is made (or, if 
                        satisfactory data for that year are not 
                        available, during the most recent 
                        preceding fiscal year for which 
                        satisfactory data are available) of all 
                        local educational agencies in the 50 
                        States and the District of Columbia); 
                        plus
                          [(ii) any direct expenditures by the 
                        State for the operation of those 
                        agencies; divided by
                  [(B) the aggregate number of children in 
                average daily attendance to whom those agencies 
                provided free public education during that 
                preceding year; and
          [(2) the term ``State'' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of 
        Puerto Rico.
    [(i) Use of Amounts by Secretary of the Interior.--
          [(1) Provision of amounts for assistance.--
                  [(A) In general.--The Secretary of Education 
                shall provide amounts to the Secretary of the 
                Interior to meet the need for assistance for 
                the education of children with disabilities on 
                reservations aged 5 to 21, inclusive, enrolled 
                in elementary and secondary schools for Indian 
                children operated or funded by the Secretary of 
                the Interior. The amount of such payment for 
                any fiscal year shall be equal to 80 percent of 
                the amount allotted under subsection (c) for 
                that fiscal year.
                  [(B) Calculation of number of children.--In 
                the case of Indian students aged 3 to 5, 
                inclusive, who are enrolled in programs 
                affiliated with the Bureau of Indian 
Affairs(hereafter in this subsection referred to as ``BIA'') schools 
and that are required by the States in which such schools are located 
to attain or maintain State accreditation, and which schools have such 
accreditation prior to the date of enactment of the Individuals with 
Disabilities Education Act Amendments of 1991, the school shall be 
allowed to count those children for the purpose of distribution of the 
funds provided under this paragraph to the Secretary of the Interior. 
The Secretary of the Interior shall be responsible for meeting all of 
the requirements of this part for these children, in accordance with 
paragraph (2).
                  [(C) Additional requirement.--With respect to 
                all other children aged 3 to 21, inclusive, on 
                reservations, the State educational agency 
                shall be responsible for ensuring that all of 
                the requirements of this part are implemented.
          [(2) Submission of Information.--The Secretary of 
        Education may provide the Secretary of the Interior 
        amounts under paragraph (1) for a fiscal year only if 
        the Secretary of the Interior submits to the Secretary 
        of Education information that--
                  [(A) demonstrates that the Department of the 
                Interior meets the appropriate requirements, as 
                determined by the Secretary of Education, of 
                sections 612 (including monitoring and 
                evaluation activities) and 613;
                  [(B) includes a description of how the 
                Secretary of the Interior will coordinate the 
                provision of services under this part with 
                local educational agencies, tribes and tribal 
                organizations, and other private and Federal 
                service providers;
                  [(C) includes an assurance that there are 
                public hearings, adequate notice of such 
                hearings, and an opportunity for comment 
                afforded to members of tribes, tribal governing 
                bodies, and affected local school boards before 
                the adoption of the policies, programs, and 
                procedures described in subparagraph (A);
                  [(D) includes an assurance that the Secretary 
                of the Interior will provide such information 
                as the Secretary of Education may require to 
                comply with section 618;
                  [(E) includes an assurance that the Secretary 
                of the Interior and the Secretary of Health and 
                Human Services have entered into a memorandum 
                of agreement, to be provided to the Secretary 
                of Education, for the coordination of services, 
                resources, and personnel between their 
                respective Federal, State, and local offices 
                and with State and local educational agencies 
                and other entities to facilitate the provision 
                of services to Indian children with 
                disabilities residing on or near reservations 
                (such agreement shall provide for the 
                apportionment of responsibilities and costs 
                including, but not limited to, child find, 
                evaluation, diagnosis, remediation, or 
                therapeutic measures, and (where appropriate) 
                equipment and medical or personal supplies as 
                needed for a child to remain in school or a 
                program); and
                  [(F) includes an assurance that the 
                Department of the Interior will cooperate with 
                the Department of Educationin its exercise of 
monitoring and oversight of this application, and any agreements 
entered into between the Secretary of the Interior and other entities 
under this part, and will fulfill its duties under this part.
        Section 616(a) shall apply to the information described 
        in this paragraph.
          [(3) Payments for education and services for Indian 
        children with disabilities aged 3 through 5.--
                  [(A) In general.--With funds appropriated 
                under subsection (j), the Secretary of 
                Education shall make payments to teh Secretary 
                of the Interior to be distributed to tribes or 
                tribal organizations (as defined under section 
                4 of the Indian Self-Determination and 
                Education Assistance Act) or consortia of the 
                above to provide for the coordination of 
                assistance for special education and related 
                services for children with disabilities aged 3 
                through 5 on reservations served by elementary 
                and secondary schools for Indian children 
                operated or funded by the Department of the 
                Interior. The amount of such payments under 
                subparagraph (B) for any fiscal year shall be 
                equal to 20 percent of the amount allotted 
                under subsection (c).
                  [(B) Distribution of funds.--The Secretary of 
                the Interior shall distribute the total amount 
                of the payment under subparagraph (A) by 
                allocating to each tribe or tribal organization 
                an amount based on the number of children with 
                disabilities ages 3 through 5 residing on 
                reservations as reported annually, divided by 
                the total of those children served by all 
                tribes or tribal organizations.
                  [(C) Submission of information.--To receive a 
                payment under this paragraph, the tribe or 
                tribal organization shall submit such figures 
                to the Secretary of the Interior as requried to 
                determine the amounts to be allocated under 
                subparagraph (B). This information shall be 
                compiled and submitted to the Secretary of 
                Education.
                  [(D) Use of funds.--The funds received by a 
                tribe or tribal organization shall be used to 
                assist in child find, screening, and other 
                procedures for the early identification of 
                children aged 3 through 5, parent training, and 
                the provision of direct services. These 
                activities may be carried out directly or 
                through contracts or cooperative agreements 
                with the BIA, local educational agencies, and 
                other public or private nonprofit 
                organizations. The tribe or tribal organization 
                is encouraged to involve Indian parents in the 
                development and implementation of these 
                activities. The above entities shall, as 
                appropriate, make referrals to local, State, or 
                Federal entities for the provision of services 
                or further diagnosis.
                  [(E) Biennial report.--To be eligible to 
                receive a grant pursuant to subparagraph (A), 
                the tribe or tribal organization shall provide 
                to the Secretary of the Interior a biennial 
                report of activities undertaken under this 
                paragraph, including the number of contracts 
                and cooperative agreements entered into, the 
                number of children contacted and receiving 
                services for each year, and the estimatednumber 
of children needing services during the 2 years following the one in 
which the report is made. The Secretary of the Interior shall include a 
summary of this information on a biennial basis in the report to the 
Secretary of Education required under this subsection. The Secretary of 
Education may require any additional information from the Secretary of 
the Interior.
                  [(F) Prohibitions.--None of the funds 
                allocated under this paragraph may be used by 
                the Secretary of the Interior for 
                administrative purposes, including child count 
                and the provision of technical assistance.
          [(4) Plan for coordination of services.--The 
        Secretary of the Interior shall develop and implement a 
        plan for the coordination of services for all Indian 
        children with disabilities residing on reservations 
        covered under this Act. Such plan shall provide for the 
        coordination of services benefiting these children from 
        whatever source, including tribes, the Indian Health 
        Service, other BIA divisions, and other Federal 
        agencies. In developing the plan, the Secretary of the 
        Interior shall consult with all interested and involved 
        parties. It shall be based on the needs of the children 
        and the system best suited for meeting those needs, and 
        may involve the establishment of cooperative agreements 
        between the BIA, other Federal agencies, and other 
        entities. The plan shall also be distributed upon 
        request to States, state and local educational 
        agencies, and other agencies providing services to 
        infants, toddlers, and children with disabilities, to 
        tribes, and to other interested parties.
          [(5) Establishment of advisory board.--To meet the 
        requirements of section 612(a)(21), the Secretary of 
        the Interior shall establish, not later than 6 months 
        after the date of the enactment of the Individuals with 
        Disabilities Education Act Amendments of 1997, under 
        the BIA, an advisory board composed of individuals 
        involved in or concerned with the education and 
        provision of services to Indian infants, toddlers, 
        children, and youth with disabilities, including 
        Indians with disabilities, Indian parents or guardians 
        of such children, teachers, service providers, State 
        and local educational officials, representatives of 
        tribes or tribal organizations, representatives from 
        State Interagency Coordinating Councils under section 
        641 in States having reservations, and other members 
        representing the various divisions and entities of the 
        BIA. The chairperson shall be selected by the Secretary 
        of the Interior. The advisory board shall--
                  [(A) assist in the coordination of services 
                within the BIA and with other local, State, and 
                Federal agencies in the provision of education 
                for infants, toddlers, and children with 
                disabilities;
                  [(B) advise and assist the Secretary of the 
                Interior in the performance of the Secretary's 
                responsibilities described in this subsection;
                  [(C) develop and recommend policies 
                concerning effective inter- and intra-agency 
                collaboration, including modifications to 
                regulations and the elimination of barriers to 
                inter- and intra-agency programs and 
                activities;
                  [(D) provide assistance and disseminate 
                information on best practices, effective 
                program coordination strategies, and 
                recommendations for improved educational 
                programming for Indian infants, toddlers, and 
                children with disabilities; and
                  [(E) provide assistance in the preparation of 
                information required under paragraph (2)(D).
          [(6) Annual reports.--
                  [(A) In general.--The advisory board 
                established under paragraph (5) shall prepare 
                and submit to the Secretary of the Interior and 
                to the Congress an annual report containing a 
                description of the activities of the advisory 
                board for the preceding year.
                  [(B) Availability.--The Secretary of the 
                Interior shall make available to the Secretary 
                of Education the report described in 
                subparagraph (A).
    [(j) Authorization of Appropriations.--For the purpose of 
carrying out this part, other than section 619, there are 
authorized to be appropriated such sums as may be necessary.

[SEC. 612. STATE ELIGIBILITY.

    [(a) In General.--A State is eligible for assistance under 
this part for a fiscal year if the State demonstrates to the 
satisfaction of the Secretary that the State has in effect 
policies and procedures to ensure that it meets each of the 
following conditions:
          [(1) Free appropriate public education.--
                  [(A) In general.--A free appropriate public 
                education is available to all children with 
                disabilities residing in the State between the 
                ages of 3 and 21, inclusive, including children 
                with disabilities who have been suspended or 
                expelled from school.
                  [(B) Limitation.--The obligation to make a 
                free appropriate public education available to 
                all children with disabilities does not apply 
                with respect to children:
                          [(i) aged 3 through 5 and 18 through 
                        21 in a State to the extent that its 
                        application to those children would be 
                        inconsistent with State law or 
                        practice, or the order of any court, 
                        respecting the provision of public 
                        education to children in those age 
                        ranges; and
                          [(ii) aged 18 through 21 to the 
                        extent that State law does not require 
                        that special education and related 
                        services under this part be provided to 
                        children with disabilities who, in the 
                        educational placement prior to their 
                        incarceration in an adult correctional 
                        facility:
                                  [(I) were not actually 
                                identified as being a child 
                                with a disability under section 
                                602(3) of this Act; or
                                  [(II) did not have an 
                                individualized education 
                                program under this part.
          [(2) Full educational opportunity goal.--The State 
        has established a goal of providing full education 
        opportunity to all children with disabilities and a 
        detailed timetable for accomplishing that goal.
          [(3) Child find.--
                  [(A) In general.--All children with 
                disabilities residing in the State, including 
                children with disabilities attending private 
                schools, regardless of the severity of their 
                disabilities, and who are in need of special 
                education, and related services, are 
                identified, located, and evaluated and a 
                practical method is developed and implemented 
                to determine which children with disabilities 
                are currently receiving needed special 
                education and related services.
                  [(B) Construction.--Nothing in this Act 
                requires that children be classified by their 
                disability so long as each child who has a 
                disability listed in section 602 and who, by 
                reason of that disability, needs special 
                education and related services is regarded as a 
                child with a disability under this part
          [(4) Individualized education program.--An 
        individualized education program, or an individualized 
        family service plan that meets the requirements of 
        section 636(d), is developed, reviewed, and revised for 
        each child with a disability in accordance with section 
        614(d).
          [(5) Least restrictive environment.--
                  [(A) In general.--To the maximum extent 
                appropriate, children with disabilities, 
                including children in public or private 
                institutions or other care facilities, are 
                educated with children who are not disabled, 
                and special classes, separate schooling, or 
                other removal of children with disabilities 
                from the regular or severity of the disability 
                of a child is such that education in regular 
                classes with the use of supplementary aids and 
                services cannot be achieved satisfactorily.
                  [(B) Additional requirement.--
                          [(i) In general.--If the State uses a 
                        funding mechanism by which the State 
                        distributes State funds on the basis of 
                        the type of setting in which a child is 
                        served, the funding mechanism does not 
                        result in placements that violate the 
                        requirements of subparagraph (A).
                          [(ii) Assurance.--If the state does 
                        not have policies and procedures to 
                        ensure compliance with clause (i), the 
                        State shall provide the Secretary an 
                        assurance that it will revise the 
                        funding mechanism as soon as feasible 
                        to ensure that such mechanism does not 
                        result in such placements.
          [(6) Procedural safeguards.--
                  [(A) In general.--Children with disabilities 
                and their parents are afforded the procedural 
                safeguards required by section 615.
                  [(B) Additional procedural safeguards.--
                Procedures to ensure that testing and 
                evaluation materials and procedures utilized 
                for the purposes of evaluation and placement of 
                children with disabilities will be selected and 
                administered so as not to be racially or 
                culturally discriminatory. Such materials or 
                procedures shall be provided andadministered in 
the child's native language or mode of communications, unless it 
clearly is not feasible to do so, and no single procedure shall be the 
sole criterion for determining an appropriate educational program for a 
child.
          [(7) Evaluation.--Children with disabilities are 
        evaluated in accordance with subsections (a) through 
        (c) of section 614.
          [(8) Confidentiality.--Agencies in the State comply 
        with section 671(c) (relating to the confidentiality of 
        records and information).
          [(9) Transition from part c to preschool programs.--
        Children participating in early-intervention programs 
        assisted under part C, and who will participate in 
        preschool programs assisted under this part, experience 
        a smooth and effective transition to those preschool 
        programs in a manner consistent with section 637(a)(8). 
        By the third birthday of such a child, an 
        individualized education program or, if consistent with 
        sections 614(d)(2)(B) and 636(d), an individualized 
        family service plan, has been developed and is being 
        implemented for the child. The local educational agency 
        will participate in transition planning conferences 
        arranged by the designated lead agency under section 
        637(a)(8).
          [(10) Children in private schools.--
                  [(A) Children enrolled in private schools by 
                their parents.--
                          [(i) In general.--To the extent 
                        consistent with the number and location 
                        of children with disabilities in the 
                        State who are enrolled by their parents 
                        in private elementary and secondary 
                        schools, provision is made for the 
                        participation of those children in the 
                        program assisted or carried out under 
                        this part by providing for such 
                        children special education and related 
                        services in accordance with the 
                        following requirements, unless the 
                        Secretary has arranged for services to 
                        those children under subsection (f):
                                  [(I) Amounts expended for the 
                                provision of those services by 
                                a local educational agency 
                                shall be equal to a 
                                proportionate amount of Federal 
                                funds made available under this 
                                part.
                                  [(II) Such services may be 
                                provided to children with 
                                disabilities on the premises of 
                                private, including parochial, 
                                schools, to the extent 
                                consistent with law.
                          [(ii) Child-find requirement.--The 
                        requirements of paragraph (3) of this 
                        subsection (relating to child find) 
                        shall apply with respect to children 
                        with disabilities in the State who are 
                        enrolled in private, including 
                        parochial, elementary and secondary 
                        schools.
                  [(B) Children placed in, or referred to, 
                private schools by public agencies.--
                          [(i) In general.--Children with 
                        disabilities in private schools and 
                        facilities are provided special 
                        education and related services, in 
                        accordance with an individualized 
                        education program, at no cost to their 
                        parents, if such children are placed 
                        in, or referred to,such schools or 
facilities by the State or appropriate local educational agency as the 
means of carrying out the requirements of this part or any other 
applicable law requiring the provision of special education and related 
services to all children with disabilities within such State.
                          [(ii) Standards.--In all cases 
                        described in clause (i), the State 
                        educational agency shall determine 
                        whether such schools and facilities 
                        meet standards that apply to State and 
                        local educational agencies and that 
                        children so served have all the rights 
                        they would have if served by such 
                        agencies.
                  [(C) Payment for education of children 
                enrolled in private schools without consent of 
                or referral by the public agency.--
                          [(i) In general.--Subject to 
                        subparagraph (A), this part does not 
                        require a local educational agency to 
                        pay for the cost of education, 
                        including special education and related 
                        services, of a child with a disability 
                        at a private school or facility if that 
                        agency made a free appropriate public 
                        education available to the child and 
                        the parents elected to place the child 
                        in such private school or facility.
                          [(ii) Reimbursement for private 
                        school placement.--If the parents of a 
                        child with a disability, who previously 
                        received special education and related 
                        services under the authority of a 
                        public agency, enroll the child in a 
                        private elementary or secondary school 
                        without the consent of or referral by 
                        the public agency, a court or a hearing 
                        officer may require the agency to 
                        reimbuse the parents for the cost of 
                        that enrollment if the court or hearing 
                        officer finds that the agency had not 
                        made a free appropriate public 
                        education available to the child in a 
                        timely manner prior to that enrollment.
                          [(iii) Limitation on reimbursement.--
                        The cost of reimbursement described in 
                        clause (ii) may be reduced or denied--
                                  [(I) if--
                                          [(aa) at the most 
                                        recent IEP meeting that 
                                        the parents attended 
                                        prior to removal of the 
                                        child from the public 
                                        school, the parents did 
                                        not inform the IEP Team 
                                        that they were 
                                        rejecting the placement 
                                        proposed by the public 
                                        agency to provide a 
                                        free appropriate public 
                                        education to their 
                                        child, including 
                                        stating their concerns 
                                        and their intent to 
                                        enroll their child in a 
                                        private school at 
                                        public expense; or
                                          [(bb) 10 business 
                                        days (including any 
                                        holidays that occur on 
                                        a business day) prior 
                                        to the removal of the 
                                        child from the public 
                                        school, the parents did 
                                        not give written notice 
                                        to the public agency of 
                                        the information 
                                        described in division 
                                        (aa);
                                  [(II) if, prior to the 
                                parents' removal of the child 
                                from the public school, the 
                                public agency informed the 
                                parents, through the notice 
                                requirements described in 
                                section 615(b)(7), of its 
                                intent to evaluate the child 
                                (including a statement of the 
                                purpose of the evaluation that 
                                was appropriate and 
                                reasonable), but the parents 
                                did not make the child 
                                available for such evaluation; 
                                or
                                  [(III) upon a judicial 
                                finding of unreasonableness 
                                with respect to actions taken 
                                by the parents.
                          [(iv) Exception.--Notwithstanding the 
                        notice requirement in clause (iii)(I), 
                        the cost of reimbursement may not be 
                        reduced or denied for failure to 
                        provide such notice if--
                                  [(I) the parent is illiterate 
                                and cannot write in English;
                                  [(II) compliance with clause 
                                (iii)(I) would likely result in 
                                physical or serious emotional 
                                harm to the child;
                                  [(III) the school prevented 
                                the parent from providing such 
                                notice; or
                                  [(IV) the parents had not 
                                received notice, pursuant to 
                                section 615, of the notice 
                                requirement in clause (iii)(I).
          [(11) State educational agency responsible for 
        general supervision.--
                  [(A) In general.--The State educational 
                agency is responsible for ensuring that--
                          [(i) the requirements of this part 
                        are met; and
                          [(ii) all educational programs for 
                        children with disabilities in the 
                        State, including all such programs 
                        administered by any other State or 
                        local agency--
                                  [(I) are under the general 
                                supervision of individuals in 
                                the State who are responsible 
                                for educational programs for 
                                children with disabilities; and
                                  [(II) meet the educational 
                                standards of the State 
                                educational agency.
                  [(B) Limitation.--Subparagraph (A) shall not 
                limit the responsibility of agencies in the 
                State other than the State educational agency 
                to provide, or pay for some or all of the costs 
                of, a free appropriate public education for any 
                child with a disability in the State.
                  [(C) Exception.--Notwithstanding 
                subparagraphs (A) and (B), the Governor (or 
                another individual pursuant to State law), 
                consistent with State law, may assign to any 
                public agency in the State the responsibility 
                of ensuring that the requirements of this part 
                are met with respect to children with 
                disabilities who are convicted as adults under 
                State law and incarcerated in adult prisons.
          [(12) Obligations related to and methods of ensuring 
        services.--
                  [(A) Establishing responsibility for 
                services.--The Chief Executive Officer or 
                designee of the officer shall ensure that an 
                interagency agreement or other mechanism for 
                interagency coordination is in effect between 
                each public agency described in subparagraph 
                (B) and the State educational agency, in order 
                to ensure that all services described in 
                subparagraph (B)(i) that are needed to ensure a 
                free appropriate public education are provided, 
                including the provision of such services during 
                the pendency of any dispute under clause (iii). 
                Such agreement or mechanism shall include the 
                following:
                          [(i) Agency financial 
                        responsibility.--An identification of, 
                        or a method for defining, the financial 
                        responsibility of each agency for 
                        providing services described in 
                        subparagraph (B)(i) to ensure a free 
                        appropriate public education to 
                        children with disabilities, provided 
                        that the financial responsibility of 
                        each public agency described in 
                        subparagraph (B), including the State 
                        Medicaid agency and other public 
                        insurers of children with disabilities, 
                        shall precede the financial 
                        responsibility of the local educational 
                        agency (or the State agency responsible 
                        for developing the child's IEP).
                          [(ii) Conditions and terms of 
                        reimbursement.--The conditions, terms, 
                        and procedures under which a local 
                        educational agency shall be reimbursed 
                        by other agencies.
                          [(iii) Interagency disputes.--
                        Procedures for resolving interagency 
                        disputes (including procedures under 
                        which local educational agencies may 
                        initiate proceedings) under the 
                        agreement or other mechanism to secure 
                        reimbursement from other agencies or 
                        other-wise implement the provisions of 
                        the agreement or mechanism.
                          [(iv) Coordination of services 
                        procedures.--Policies and procedures 
                        for agencies to determine and identify 
                        the interagency coordination 
                        responsibilities of each agency to 
                        promote the coordination and timely and 
                        appropriate delivery of services 
                        described in subparagraph (B)(i).
                  [(B) Obligation of public agency.--
                          [(i) In general.--If any public 
                        agency other than an educational agency 
                        is otherwise obligated under Federal or 
                        State law, or assigned responsibility 
                        under State policy or pursuant to 
                        subparagraph (A), to provide or pay for 
                        any services that are also considered 
                        special education or related services 
                        (such as, but not limited to, services 
                        described in sections 602(1) relating 
                        to assistive technology devices, 602(2) 
                        relating to assistive technology 
                        services, 602(22) relating to related 
                        services, 602(29) relating to 
                        supplementary aids and services, and 
                        602(30) relating to transition 
                        services) that are necessary for 
                        ensuring a free appropriate public 
                        education to children with disabilities 
                        withinthe State, such public agency 
shall fulfill that obligation or responsibility, either directly or 
through contract or other arrangement.
                          [(ii) Reimbursement for services by 
                        public agency.--If a public agency 
                        other than an educational agency fails 
                        to provide or pay for the special 
                        education and related services 
                        described in clause (i), the local 
                        educational agency (or State agency 
                        responsible for developing the child's 
                        IEP) shall provide or pay for such 
                        services to the child. Such local 
                        educational agency or State agency may 
                        then claim reimbursement for the 
                        services from the public agency that 
                        failed to provide or pay for such 
                        services and such public agency shall 
                        reimburse the local educational agency 
                        or State agency pursuant to the terms 
                        of the interagency agreement or other 
                        mechanism described in subparagraph 
                        (A)(i) according to the procedures 
                        established in such agreement pursuant 
                        to subparagraph (A)(ii).
                  [(C) Special rule.--The requirements of 
                subparagraph (A) may be met through--
                          [(i) state statute or regulation;
                          [(ii) signed agreements between 
                        respective agency officials that 
                        clearly identify the responsibilities 
                        of each agency relating to the 
                        provision of services; or
                          [(iii) other appropriate written 
                        methods as determined by the Chief 
                        Executive Officer of the State or 
                        designee of the officer.
          [(13) Procedural requirements relating to local 
        educational agency eligibility.--The State educational 
        agency will not make a final determination that a local 
        educational agency is not eligible for assistance under 
        this part without first affording that agency 
        reasonable notice and an opportunity for a hearing.
          [(14) Comprehensive system of personnel 
        development.--The State has in effect, consistent with 
        the purposes of this Act and with section 635(a)(8), a 
        comprehensive system of personnel development that is 
        designed to ensure an adequate supply of qualified 
        special education, regular education, and related 
        services personnel that meets the requirements for a 
        State improvement plan relating to personnel 
        development in subsections (b)(2)(B) and (c)(3)(D) of 
        section 653.
          [(15) Personnel standards.--
                  [(A) In general.--The State educational 
                agency has established and maintains standards 
                to ensure that personnel necessary to carry out 
                this part are appropriately and adequately 
                prepared and trained.
                  [(B) Standards described.--Such standards 
                shall--
                          [(i) be consistent with any State-
                        approved or State-recognized 
                        certification, licensing, registration, 
                        or other comparable requirements that 
                        apply to the professional discipline in 
                        which those personnel are providing 
                        special education or related services;
                          [(ii) to the extent the standards 
                        described in subparagraph (A) are not 
                        based on the highest requirements in 
                        the State applicable to a specific 
                        profession or discipline, the State is 
                        taking steps to require re-training or 
                        hiring of personnel that meet 
                        appropriate professional requirements 
                        in the State; and
                          [(iii) allow paraprofessionals and 
                        assistants who are appropriately 
                        trained and supervised, in accordance 
                        with State law, regulations, or written 
                        policy, in meeting the requirements of 
                        this part to be used to assist in the 
                        provision of special education and 
                        related services to children with 
                        disabilities under this part.
                  [(C) Policy.--In implementing this paragraph, 
                a state may adopt a policy that includes a 
                requirement that local educational agencies in 
                the State make an ongoing good-faith effort to 
                recruit and hire appropriately and adequately 
                trained personnel to provide special education 
                and related services to children with 
                disabilities, including, in a geographic area 
                of the State where there is a shortage of such 
                personnel, the most qualified individuals 
                available who are making satisfactory progress 
                toward completing applicable course work 
                necessary to meet the standards described in 
                subparagraph (B)(i), consistent with State law, 
                and the steps described in subparagraph (B)(ii) 
                within three years.
          [(16) Performance goals and indicators.--The State--
                  [(A) has established goals for the 
                performance of children with disabilities in 
                the State that--
                          [(i) will promote the purposes of 
                        this Act, as stated in section 601(d); 
                        and
                          [(ii) are consistent, to the maximum 
                        extent appropriate, with other goals 
                        and standards for children established 
                        by the State;
                  [(B) has established performance indicators 
                the State will use to assess progress toward 
                achieving those goals that, at a minimum, 
                address the performance of children with 
                disabilities on assessments, drop-out rates, 
                and graduation rates;
                  [(C) will, every two years, report to the 
                Secretary and the public on the progress of the 
                State, and of children with disabilities in the 
                State, toward meeting the goals established 
                under subparagraph (A); and
                  [(D) based on its assessment of that 
                progress, will revise its State improvement 
                plan under subpart 1 of part D as may be needed 
                to improve its performance, if the State 
                receives assistance under that subpart.
          [(17) Participation in assessments.--
                  [(A) In general.--Children with disabilities 
                are included in general State and district-wide 
                assessment programs, with appropriate 
                accommodations, where necessary. As 
                appropriate, the State or local educational 
                agency--
                          [(i) develops guidelines for the 
                        participation of children with 
                        disabilities in alternate assessments 
                        forthose children who cannot 
participate in State and district-wide assessment programs; and
                          [(ii) develops and, beginning not 
                        later than July 1, 2000, conducts those 
                        alternate assessments.
                  [(B) Reports.--The State educational agency 
                makes available to the public, and reports to 
                the public with the same frequency and in the 
                same detail as it reports on the assessment of 
                nondisabled children, the following:
                          [(i) The number of children with 
                        disabilities participating in regular 
                        assessments.
                          [(ii) The number of those children 
                        participating in alternate assessments.
                          [(iii)(I) The performance of those 
                        children on regular assessments 
                        (beginning not later than July 1, 1998) 
                        and on alternate assessments (not later 
                        than July 1, 2000), if doing so would 
                        be statistically sound and would not 
                        result in the disclosure of performance 
                        results identifiable to individual 
                        children.
                          [(II) Data relating to the 
                        performance of children described under 
                        subclause (I) shall be disaggregated--
                                  [(aa) for assessments 
                                conducted after July 1, 1998; 
                                and
                                  [(bb) for assessments 
                                conducted before July 1, 1998, 
                                if the State is required to 
                                disaggregate such data prior to 
                                July 1, 1998.
          [(18) Supplementation of state, local and other 
        federal funds.--
                  [(A) Expenditures.--Funds paid to a State 
                under this part will be expended in accordance 
                with all the provisions of this part.
                  [(B) Prohibition against commingling.--Funds 
                paid to a State under this part will not be 
                commingled with State funds.
                  [(C) Prohibition against supplantation and 
                conditions for waiver by secretary.-- Except as 
                provided in section 613, funds paid to a State 
                under this part will be used to supplement the 
                level of Federal, State, and local funds 
                (including funds that are not under the direct 
                control of State or local educational agencies) 
                expended for special education and related 
                services provided to children with disabilities 
                under this part and in no case to supplant such 
                Federal, State, and local funds, except that, 
                where the State provides clear and convincing 
                evidence that all children with disabilities 
                have available to them a free appropriate 
                public education, the Secretary may waive, in 
                whole or in part, the requirements of this 
                subparagraph if the Secretary concurs with the 
                evidence provided by the State.
          [(19) Maintenance of state financial support.--
                  [(A) In general.--The State does not reduce 
                the amount of State financial support for 
                special education and related services for 
                children with disabilities, or otherwise made 
                available because of the excess costs of 
                educatingthose children, below the amount of 
that support for the preceding fiscal year.
                  [(B) Reduction of funds for failure to 
                maintain support.--The Secretary shall reduce 
                the allocation of funds under section 611 for 
                any fiscal year following the fiscal year in 
                which the State fails to comply with the 
                requirement of subparagraph (A) by the same 
                amount by which the State fails to meet the 
                requirement.
                  [(C) Waivers for exceptional or 
                uncontrollable circumstances.--The Secretary 
                may waive the requirements of subparagraph (A) 
                for a State, for one fiscal year at a time, if 
                the Secretary determines that--
                          [(i) granting a waiver would be 
                        equitable due to exceptional or 
                        uncontrollable circumstances such as a 
                        natural disaster or a precipitous and 
                        unforeseen decline in the financial 
                        resources of the State; or
                          [(ii) the State meets the standard in 
                        paragraph (18)(C) of this section for a 
                        waiver of the requirement to 
                        supplement, and not to supplant, funds 
                        received under this part.
                  [(D) Subsequent years.--If, for any year, a 
                State fails to meet the requirement of 
                subparagraph (A), including any year for which 
                the State is granted a waiver under 
                subparagraph (C), the financial support 
                required of the State in future years under 
                subparagraph (A) shall be the amount that would 
                have been required in the absence of that 
                failure and not the reduced level of the 
                State's support.
                  [(E) Regulations.--
                          [(i) The Secretary shall, by 
                        regulation, establish procedures 
                        (including objective criteria and 
                        consideration of the results of 
                        compliance reviews of the State 
                        conducted by the Secretary) for 
                        determining whether to grant a waiver 
                        under subparagraph (C)(ii).
                          [(ii) The Secretary shall publish 
                        proposed regulations under clause (i) 
                        not later than 6 months after the date 
                        of the enactment of the Individuals 
                        with Disabilities Education Act 
                        Amendments of 1997, and shall issue 
                        final regulations under clause (i) not 
                        later than 1 year after such date of 
                        enactment.
          [(20) Public participation.--Prior to the adoption of 
        any policies and procedures needed to comply with this 
        section (including any amendments to such policies and 
        procedures), the State ensures that there are public 
        hearings, adequate notice of the hearings, and an 
        opportunity for comment available to the general 
        public, including individuals with disabilities and 
        parents of children with disabilities.
          [(21) State advisory panel.--
                  [(A) In general.--The State established and 
                maintains an advisory panel for the purpose of 
                providing policy guidance with respect to 
                special education and related services for 
                children with disabilities in the State.
                  [(B) Membership.--Such advisory panel shall 
                consist of members appointed by the Governor, 
                or any other officialauthorized under State law 
to make such appointments, that is representative of the State 
population and that is composed of individuals involved in, or 
concerned with, the education of children with disabilities, 
including--
                          [(i) parents of children with 
                        disabilities;
                          [(ii) individuals with disabilities;
                          [(iii) teachers;
                          [(iv) representatives of institutions 
                        of higher education that prepare 
                        special education and related services 
                        personnel;
                          [(v) State and local education 
                        officials;
                          [(vi) administrators of programs for 
                        children with disabilities;
                          [(vii) representatives of other State 
                        agencies involved in the financing or 
                        delivery of related services to 
                        children with disabilities;
                          [(viii) representatives of private 
                        schools and public charter schools;
                          [(ix) at least one representative of 
                        a vocational, community or business 
                        organization concerned with the 
                        provision of transition services to 
                        children with disabilities; and
                          [(x) representatives from the State 
                        juvenile and adult corrections 
                        agencies.
                  [(C) Special rule.--A majority of the members 
                of the panel shall be individuals with 
                disabilities or parents of children with 
                disabilities.
                  [(D) Duties.--The advisory panel shall--
                          [(i) advise the State educational 
                        agency of unmet needs within the State 
                        in the education of children with 
                        disabilities;
                          [(ii) comment publicly on any rules 
                        or regulations proposed by the State 
                        regarding the education of children 
                        with disabilities;
                          [(iii) advise the State educational 
                        agency in developing evaluations and 
                        reporting on data to the Secretary 
                        under section 618;
                          [(iv) advise the State educational 
                        agency in developing corrective action 
                        plans to address findings identified in 
                        Federal monitoring reports under this 
                        part; and
                          [(v) advise the State educational 
                        agency in developing and implementing 
                        policies relating to the coordination 
                        of services for children with 
                        disabilities.
          [(22) Suspension and expulsion rates.--
                  [(A) In general.--The State educational 
                agency examines data to determine if 
                significant discrepancies are occurring in the 
                rate of long-term suspensions and expulsions of 
                children with disabilities--
                          [(i) among local educational agencies 
                        in the State; or
                          [(ii) compared to such rates for 
                        nondisabled children within such 
                        agencies.
                  [(B) Review and revision of policies.--If 
                such discrepancies are occurring, the State 
                educational agency reviews and, if appropriate, 
                revises (or requires the affected State or 
                local educational agency to revise) its 
                policies, procedures, and practices relating to 
                the development and implementation of IEPs, the 
                use of behavioral interventions, and procedural 
                safeguards, to ensure that such policies, 
                procedures, and practices comply with this Act.
      [(b) State Educational Agency as provider of Free 
Appropriate Public Education or Direct Services.--If the State 
educational agency provides free appropriate public education 
to children with disabilities, or provides direct services to 
such children, such agency--
          [(1) shall comply with any additional requirements of 
        section 613(a), as if such agency were a local 
        educational agency; and
          [(2) may use amounts that are otherwise available to 
        such agency under this part to serve those children 
        without regard to section 613(a)(2)(A)(i) (relating to 
        excess costs).
      [(c) Exception for Prior State Plans.--
          [(1) In general.--If a State has on file with the 
        Secretary policies and procedures that demonstrate that 
        such State meets any requirement of subsection (a), 
        including any policies and procedures filed under this 
        part as in effect before the effective date of the 
        Individuals with Disabilities Education Act Amendments 
        of 1997, the Secretary shall consider such State to 
        have met such requirement for purposes of receiving a 
        grant under this part.
          [(2) Modifications made by state.--Subject to 
        paragraph (3), an application submitted by a State in 
        accordance with this section shall remain in effect 
        until the State submits to the Secretary such 
        modifications as the State deems necessary. This 
        section shall apply to a modification to an application 
        to the same extent and in the same manner as this 
        section applies to the original plan.
          [(3) Modifications required by the secretary.--If, 
        after the effective date of the Individuals with 
        Disabilities Education Act Amendments of 1997, the 
        provisions of this Act are amended (or the regulations 
        developed to carry out this Act are amended), or there 
        is a new interpretation of this Act by a Federal court 
        or a State's highest court, or there is an official 
        finding of noncompliance with Federal law or 
        regulations, the Secretary may requrie a State to 
        modify its application only to the extent necessary to 
        ensure the State's compliance with this part.
      [(d) Approval by the Secretary.--
          [(1) In general.--If the Secretary determines that a 
        State is eligible to receive a grant under this part, 
        the Secretary shall notify the State of that 
        determination.
          [(2) Notice and hearing.--The Secretary shall not 
        make a final determination that a State is not eligible 
        to receive a grant under this part until after 
        providing the State--
                  [(A) with reasonable notice; and
                  [(B) with an opportunity for a hearing.
    [(e) Assistance Under Other Federal Programs.--Nothing in 
this title permits a State to reduce medical and other 
assistance available, or to alter eligiblity, under titles V 
and XIX of the Social Security Act with respect to the 
provision of a free appropriate public education for children 
with disabilities in the State.
    [(f) By-Pass for Children in Private Schools.--
          [(1) In general.--If, on the date of enactment of the 
        Education of the Handicapped Act Amendments of 1983, a 
        State educational agency is prohibited by law from 
        providing for the participation in special programs of 
        children with disabilities enrolled in private 
        elementary and secondary schools as required by 
        subsection (a)(10)(A), the Secretary shall, 
        notwithstanding such provision of law, arrange for the 
        provision of services to such children through 
        arrangements which shall be subject to the requirements 
        of such subsection.
          [(2) Payments.--
                  [(A) Determination of amounts.--If the 
                Secretary arranges for services pursuant to 
                this subsection, the Secretary, after 
                consultation with the appropriate public and 
                private school officials, shall pay to the 
                provider of such services for a fiscal year an 
                amount per chlid that does not exceed the 
                amount determined by dividing--
                          [(i) the total amount received by the 
                        State under this part for such fiscal 
                        year; by
                          [(ii) the number of children with 
                        disabilities served in the prior year, 
                        as reported to the Secretary by the 
                        State under section 618.
                  [(B) Withholding of certain amounts.--Pending 
                final resolution of any investigation or 
                complaint that could result in a determination 
                under this subsection, the Secretary may 
                withhold from the allocation of the affected 
                State educational agency the amount the 
                Secretary estimates would be necessary to pay 
                the cost of services described in subparagraph 
                (A).
                  [(C) Period of payments.--The period under 
                which payments are made under subparagraph (A) 
                shall continue until the Secretary determines 
                that there will no longer be any failure or 
                inability on the part of the State educational 
                agency to meet the requirements of subsection 
                (a)(10)(A).
          [(3) Notice and hearing.--
                  [(A) In general.--The Secretary shall not 
                take any final action under this subsection 
                until the State educational agency affected by 
                such action has had an opportunity, for at 
                least 45 days after receiving written notice 
                thereof, to submit written objections and to 
                appear before the Secretary or the Secretary's 
                designee to show cause why such action should 
                not be taken.
                  [(B) Review of action.--If a State 
                educational agency is dissatisfied with the 
                Secretary's final action after a proceeding 
                under subparagraph (A), such agency may, not 
                later than 60 days after notice of such action, 
                file with the United States court of appeals 
                for the circuit in which such State is located 
                a petition for review of that action. A copy of 
                the petition shall be forthwith transmitted by 
                the clerkof the court to the Secretary. The 
Secretary thereupon shall file in the court the record of the 
proceedings on which the Secretary based the Secretary's action, as 
provided in section 2112 of title 28, United States Code.
                  [(C) Review of findings of fact.--The 
                findings of fact by the Secretary, if supported 
                by substantial evidence shall be conclusive, 
                but the court, for good cause shown, may remand 
                the case to the Secretary to take further 
                evidence, and the Secretary may thereupon make 
                new or modified findings of fact and may modify 
                the Secretary's previous action, and shall file 
                in the court the record of the further 
                proceedings. Such new or modified findings of 
                fact shall likewise be conclusive if supported 
                by substantial evidence.
                  [(D) Jurisdiction of court of appeals; review 
                by united states supreme court.--Upon the 
                filing of a petition under subparagraph (B), 
                the United States court of appeals shall have 
                jurisdiction to affirm the action of the 
                Secretary or to set it aside, in whole or in 
                part. The judgment of the court shall be 
                subject to review by the Supreme Court of the 
                United States upon certiorari or certification 
                as provided in section 1254 of title 28, United 
                States Code.

[SEC. 613. LOCAL EDUCATIONAL AGENCY ELIGIBILITY.

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

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

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

[SEC. 615. PROCEDURAL SAFEGUARDS.

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

[SEC. 616. WITHHOLDING AND JUDICIAL REVIEW.

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

[SEC. 617. ADMINISTRATION.

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

[SEC. 618. PROGRAM INFORMATION.

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

[SEC. 619. PRESCHOOL GRANTS.

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

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

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

  (a) Grants to States.--
          (1) Purpose of grants.--The Secretary shall make 
        grants to States and the outlying areas, and provide 
        funds to the Secretary of the Interior, to assist them 
        to provide special education and related services to 
        children with disabilities in accordance with this 
        part.
          (2) Maximum amount.--The maximum amount available for 
        awarding grants under this section for any fiscal year 
        is--
                  (A) the total number of children with 
                disabilities in the 2002-2003 school year in 
                the States who received special education and 
                related services and who were--
                          (i) aged 3 through 5, if the State 
                        was eligible for a grant under section 
                        619; and
                          (ii) aged 6 through 21; multiplied by
                  (B) 40 percent of the average per-pupil 
                expenditure in public elementary schools and 
                secondary schools in the United States; 
                adjusted by;
                  (C) the rate of change in the sum of--
                          (i) 85 percent of the change in the 
                        nationwide total of the population 
                        described in subsection 
                        (d)(3)(A)(i)(II); and
                          (ii) 15 percent of the change in the 
                        nationwide total of the population 
                        described in subsection 
                        (d)(3)(A)(i)(III).
  (b) Outlying Areas and Freely Associated States.--
          (1) Funds reserved.--From the amount appropriated for 
        any fiscal year under subsection (i), the Secretary 
        shall reserve not more than 1 percent, which shall be 
        used--
                  (A) to provide assistance to the outlying 
                areas in accordance with their respective 
                populations of individuals aged 3 through 21; 
                and
                  (B) to provide each freely associated State a 
                grant in the amount that such freely associated 
                State received for fiscal year 2003 under this 
                part, but only if the freely associated State 
                meets the applicable requirements of this part, 
                as well as the requirements of section 
                611(b)(2)(C) as such section was in effect on 
                the day before the date of enactment of the 
                Individuals with Disabilities Education 
                Improvement Act of 2003.
          (2) Special rule.--The provisions of Public Law 95-
        134, permitting the consolidation of grants by the 
        outlying areas, shall not apply to funds provided to 
        the outlying areas or the freely associated States 
        under this section.
          (3) Definition.--As used in this subsection, the term 
        ``freely associated States'' means the Republic of the 
        Marshall Islands, the Federated States of Micronesia, 
        and the Republic of Palau.
  (c) Secretary of the Interior.--From the amount appropriated 
for any fiscal year under subsection (i), the Secretary shall 
reserve 1.226 percent to provide assistance to the Secretary of 
the Interior in accordance with subsection (i).
  (d) Allocations to States.--
          (1) In general.--After reserving funds for studies 
        and evaluations under section 665, and for payments to 
        the outlying areas, the freely associated States, and 
        the Secretary of the Interior under subsections (b) and 
        (c) for a fiscal year, the Secretary shall allocate the 
        remaining amount among the States in accordance with 
        this subsection.
          (2) Special rule for use of fiscal year 1999 
        amount.--If a State received any funds under this 
        section for fiscal year 1999 on the basis of children 
        aged 3 through 5, but does not make a free appropriate 
        public education available to all children with 
        disabilities aged 3 through 5 in the State in any 
        subsequent fiscal year, the Secretary shall compute the 
        State's amount for fiscal year 1999, solely for the 
        purpose of calculating the State's allocation in that 
        subsequent year under paragraph (3) or (4), by 
        subtracting the amount allocated to the State for 
        fiscal year 1999 on the basis of those children.
          (3) Increase in funds.--If the amount available for 
        allocations to States under paragraph (1) for a fiscal 
        year is equal to or greater than the amount allocated 
        to the States under this paragraph for the preceding 
        fiscal year, those allocations shall be calculated as 
        follows:
                  (A) Allocation of increase.--
                          (i) In general.--Except as provided 
                        in subparagraph (B), the Secretary 
                        shall allocate for the fiscal year--
                                  (I) to each State the amount 
                                the State received under this 
                                section for fiscal year 1999;
                                  (II) 85 percent of any 
                                remaining funds to States on 
                                the basis of the States' 
                                relative populations of 
                                children aged 3 through 21 who 
                                are of the same age as children 
                                with disabilities for whom the 
                                State ensures the availability 
                                of a free appropriate public 
                                education under this part; and
                                  (III) 15 percent of those 
                                remaining funds to States on 
                                the basis of the States' 
                                relative populations of 
                                children described in subclause 
                                (II) who are living in poverty.
                          (ii) Data.--For the purpose of making 
                        grants under this paragraph, the 
                        Secretary shall use the most recent 
                        population data, including data on 
                        children living in poverty, that are 
                        available and satisfactory to the 
                        Secretary.
                  (B) Limitations.--Notwithstanding 
                subparagraph (A), allocations under this 
                paragraph shall be subject to the following:
                          (i) Preceding year allocation.--No 
                        State's allocation shall be less than 
                        its allocation under this section for 
                        the preceding fiscal year.
                          (ii) Minimum.--No State's allocation 
                        shall be less than the greatest of--
                                  (I) the sum of--
                                          (aa) the amount the 
                                        State received under 
                                        this section for fiscal 
                                        year 1999; and
                                          (bb) \1/3\ of 1 
                                        percent of the amount 
                                        by which the amount 
                                        appropriated under 
                                        subsection (i) for the 
                                        fiscal year exceeds the 
                                        amount appropriated for 
                                        this section for fiscal 
                                        year 1999;
                                  (II) the sum of--
                                          (aa) the amount the 
                                        State received under 
                                        this section for the 
                                        preceding fiscal year; 
                                        and
                                          (bb) that amount 
                                        multiplied by the 
                                        percentage by which the 
                                        increase in the funds 
                                        appropriated for this 
                                        section from the 
                                        preceding fiscal year 
                                        exceeds 1.5 percent; or
                                  (III) the sum of--
                                          (aa) the amount the 
                                        State received under 
                                        this section for the 
                                        preceding fiscal year; 
                                        and
                                          (bb) that amount 
                                        multiplied by 90 
                                        percent of the 
                                        percentage increase in 
                                        the amount appropriated 
                                        for this section from 
                                        the preceding fiscal 
                                        year.
                          (iii) Maximum.--Notwithstanding 
                        clause (ii), no State's allocation 
                        under this paragraph shall exceed the 
                        sum of--
                                  (I) the amount the State 
                                received under this section for 
                                the preceding fiscal year; and
                                  (II) that amount multiplied 
                                by the sum of 1.5 percent and 
                                the percentage increase in the 
                                amount appropriated under this 
                                section from the preceding 
                                fiscal year.
                  (C) Ratable reduction.--If the amount 
                available for allocations under this paragraph 
                is insufficient to pay those allocations in 
                full, those allocations shall be ratably 
                reduced, subject to subparagraph (B)(i).
          (4) Decrease in funds.--If the amount available for 
        allocations to States under paragraph (1) for a fiscal 
        year is less than the amount allocated to the States 
        under this section for the preceding fiscal year, those 
        allocations shall be calculated as follows:
                  (A) Amounts greater than fiscal year 1999 
                allocations.--If the amount available for 
                allocations is greater than the amount 
                allocated to the States for fiscal year 1999, 
                each State shall be allocated the sum of--
                          (i) the amount the State received 
                        under this section for fiscal year 
                        1999; and
                          (ii) an amount that bears the same 
                        relation to any remaining funds as the 
                        increase the State received under this 
                        section for the preceding fiscal year 
                        over fiscal year 1999 bears to the 
                        total of all such increases for all 
                        States.
                  (B) Amounts equal to or less than fiscal year 
                1999 allocations.--
                          (i) In general.--If the amount 
                        available for allocations under this 
                        paragraph is equal to or less than the 
                        amount allocated to the States for 
                        fiscal year 1999, each State shall be 
                        allocated the amount the State received 
                        for fiscal year 1999.
                          (ii) Ratable reduction.--If the 
                        amount available for allocations under 
                        this paragraph is insufficient to make 
                        the allocations described in clause 
                        (i), those allocations shall be ratably 
                        reduced.
  (e) State-Level Activities.--
          (1) State administration.--
                  (A) In general.--For the purpose of 
                administering this part, including paragraph 
                (3), section 619, and the coordination of 
                activities under this part with, and providing 
                technical assistance to, other programs that 
                provide services to children with 
                disabilities--
                          (i) each State may reserve not more 
                        than the maximum amount the State was 
                        eligible to reserve for State 
                        administration for fiscal year 2003 or 
                        $800,000 (adjusted by the cumulative 
                        rate of inflation since fiscal year 
                        2003 as measured by the percentage 
                        increase, if any, in the Consumer Price 
                        Index for All Urban Consumers, 
                        published by the Bureau of Labor 
                        Statistics of the Department of Labor), 
                        whichever is greater; and
                          (ii) each outlying area may reserve 
                        not more than 5 percent of the amount 
                        the outlying area receives under 
                        subsection (b) for any fiscal year or 
                        $35,000, whichever is greater.
                  (B) Part c.--Funds reserved under 
                subparagraph (A) may be used for the 
                administration of part C, if the State 
                educational agency is the lead agency for the 
                State under that part.
                  (C) Certification.--Prior to expenditure of 
                funds under this paragraph, the State shall 
                certify to the Secretary that the arrangements 
                to establish responsibility for services 
                pursuant to section 612(a)(12)(A) are current 
                as of the date of submission of the 
                certification.
          (2) Other state-level activities.--
                  (A) State-level activities.--
                          (i) In general.--For the purpose of 
                        carrying out State-level activities, 
                        each State may reserve for each of the 
                        fiscal years 2004 and 2005, not more 
                        than 10 percent of the amount that 
                        remains after subtracting the amount 
                        reserved under paragraph (1) from the 
                        amount of the State's allocation under 
                        subsection (d) for fiscal years 2004 
                        and 2005, respectively. For fiscal 
                        years 2006, 2007, 2008, and 2009, the 
                        State may reserve the maximum amount 
                        the State was eligible to reserve under 
                        the preceding sentence for fiscal year 
                        2005 (adjusted by the cumulative rate 
                        of inflation since fiscal year 2005 as 
                        measured by the percentage increase, if 
                        any, in the Consumer Price Index for 
                        All Urban Consumers, published by the 
                        Bureau of Labor Statistics of the 
                        Department of Labor).
                          (ii) Small State adjustment.--
                        Notwithstanding clause (i), in the case 
                        of a State for which the maximum amount 
                        reserved for State administration under 
                        paragraph (1) is not greater than 
                        $800,000 (as adjusted pursuant to 
                        paragraph (1)(A)(i)), the State may 
                        reserve for the purpose of carrying out 
                        State-level activities for each of the 
                        fiscal years 2004 and 2005, not more 
                        than 12 percent of the amount that 
                        remains after subtracting the amount 
                        reserved under paragraph (1) from the 
                        amount of the State's allocation under 
                        subsection (d) for fiscal years 2004 
                        and 2005, respectively. For each of the 
                        fiscal years 2006, 2007, 2008, and 
                        2009, each such State may reserve for 
                        such purpose the maximum amount the 
                        State was eligible to reserve under the 
                        preceding sentence for fiscal year 2005 
                        (adjusted by the cumulative rate of 
                        inflation since fiscal year 2005 as 
                        measured by the percentage increase, if 
                        any, in the Consumer Price Index for 
                        All Urban Consumers, published by the 
                        Bureau of Labor Statistics of the 
                        Department of Labor).
                  (B) Required activities.--Funds reserved 
                under subparagraph (A) shall be used to carry 
                out the following activities:
                          (i) For monitoring, enforcement and 
                        complaint investigation.
                          (ii) To establish and implement the 
                        mediation, processes required by 
                        section 615(e)(1), including providing 
                        for the costs of mediators and support 
                        personnel;
                          (iii) To support the State protection 
                        and advocacy system to advise and 
                        assist parents in the areas of--
                                  (I) dispute resolution and 
                                due process;
                                  (II) voluntary mediation; and
                                  (III) the opportunity to 
                                resolve complaints.
                  (C) Authorized activities.--Funds reserved 
                under subparagraph (A) may be used to carry out 
                the following activities:
                          (i) For support and direct services, 
                        including technical assistance, 
                        personnel preparation, and professional 
                        development and training.
                          (ii) To support paperwork reduction 
                        activities, including expanding the use 
                        of technology in the IEP process.
                          (iii) To assist local educational 
                        agencies in providing positive 
                        behavioral interventions and supports 
                        and mental health services for children 
                        with disabilities.
                          (iv) To improve the use of technology 
                        in the classroom by children with 
                        disabilities to enhance learning.
                          (v) To support the development and 
                        use of technology, including 
                        universally designed technologies and 
                        assistive technology devices, to 
                        maximize accessibility to the general 
                        curriculum for children with 
                        disabilities.
                          (vi) Development and implementation 
                        of transition programs, including 
                        coordination of services with agencies 
                        involved in supporting the transition 
                        of students with disabilities to post-
                        secondary activities.
                          (vii) To assist local educational 
                        agencies in meeting personnel 
                        shortages.
                          (viii) To support capacity-building 
                        activities and improve the delivery of 
                        services by local educational agencies 
                        to improve results for children with 
                        disabilities.
                          (ix) Alternative programming for 
                        children who have been expelled from 
                        school, and services for children in 
                        correctional facilities, children 
                        enrolled in State-operated or State-
                        supported schools, and children in 
                        charter schools.
                          (x) To support the development and 
                        provision of appropriate accommodations 
                        for children with disabilities, or the 
                        development and provision of alternate 
                        assessments that are valid and reliable 
                        for assessing the performance of 
                        children with disabilities, in 
                        accordance with sections 1111(b) and 
                        6111 of the Elementary and Secondary 
                        Education Act of 1965.
          (3) Local educational agency risk pool.--
                  (A) In general.--For the purpose of assisting 
                local educational agencies (and charter schools 
                that are local educational agencies) in 
                addressing the needs of high-need children and 
                the unanticipated enrollment of other children 
                eligible for services under this part, each 
                State shall reserve for each of the fiscal 
                years 2004 through 2009, 2 percent of the 
                amount that remains after subtracting the 
                amount reserved under paragraph (1) from the 
                amount of the State's allocation under 
                subsection (d) for each of the fiscal years 
                2004 through 2009, respectively, to--
                          (i) establish a high-cost fund; and
                          (ii) make disbursements from the 
                        high-cost fund to local educational 
                        agencies in accordance with this 
                        paragraph.
                  (B) Required disbursements from the fund.--
                          (i) In general.--Each State 
                        educational agency shall make 
                        disbursements from the fund established 
                        under subparagraph (A) to local 
                        educational agencies to pay the 
                        percentage, described in subparagraph 
                        (D), of the costs of providing a free 
                        appropriate public education to high-
                        need children.
                          (ii) Special rule.--If funds reserved 
                        for a fiscal year under subparagraph 
                        (A) are insufficient to pay the 
                        percentage described in subparagraph 
                        (D) to assist all the local educational 
                        agencies having applications approved 
                        under subparagraph (C), then the State 
                        educational agency shall ratably reduce 
                        the amount paid to each local 
                        educational agency that receives a 
                        disbursement for that fiscal year.
                  (C) Application.--A local educational agency 
                that desires a disbursement under this 
                subsection shall submit an application to the 
                State educational agency at such time, in such 
                manner, and containing such information as the 
                State educational agency may require. Such 
                application shall include assurances that funds 
                provided under this paragraph shall not be used 
                to pay costs that otherwise would be 
                reimbursable as medical assistance for a child 
                with a disability under the State medicaid 
                program under title XIX of the Social Security 
                Act.
                  (D) Disbursements.--
                          (i) In general.--A State educational 
                        agency shall make a disbursement to a 
                        local educational agency that submits 
                        an application under subparagraph (C) 
                        in an amount that is equal to 75 
                        percent of the costs that are in excess 
                        of 4 times the average per-pupil 
                        expenditure in the United States or in 
                        the State where the child resides 
                        (whichever average per-pupil 
                        expenditure is lower) associated with 
                        educating each high need child served 
                        by such local educational agency in a 
                        fiscal year for whom such agency 
                        desires a disbursement.
                          (ii) Appropriate costs.--The costs 
                        associated with educating a high need 
                        child under clause (i) are only those 
                        costs associated with providing direct 
                        special education and related services 
                        to such child that are identified in 
                        such child's appropriately developed 
                        IEP.
                  (E) Legal fees.--The disbursements under 
                subparagraph (D) shall not support legal fees, 
                court costs, or other costs associated with a 
                cause of action brought on behalf of such child 
                to ensure a free appropriate public education 
                for such child.
                  (F) Permissible disbursements from remaining 
                funds.--A State educational agency may make 
                disbursements to local educational agencies 
                from any funds that are remaining in the high 
                cost fund after making the required 
                disbursements under subparagraph (D) for a 
                fiscal year for the following purposes:
                          (i) To pay the costs associated with 
                        serving children with disabilities who 
                        moved into the areas served by such 
                        local agencies after the budget for the 
                        following school year had been 
                        finalized to assist the local 
                        educational agencies in providing a 
                        free appropriate public education for 
                        such children in such year.
                          (ii) To compensate local educational 
                        agencies for extraordinary costs, as 
                        determined by the State, of any 
                        children eligible for services under 
                        this part due to--
                                  (I) unexpected enrollment or 
                                placement of children eligible 
                                for services under this part; 
                                or
                                  (II) a significant 
                                underestimate of the average 
                                cost of providing services to 
                                children eligible for services 
                                under this part.
                  (G) Remaining funds.--Funds reserved under 
                subparagraph (A) in any fiscal year but not 
                expended in that fiscal year pursuant to 
                subparagraph (D) or subparagraph (F) shall--
                          (i) be allocated to local educational 
                        agencies pursuant to subparagraphs (D) 
                        or (F) for the next fiscal year; or
                          (ii) be allocated to local 
                        educational agencies in the same manner 
                        as funds are allocated to local 
                        educational agencies under subsection 
                        (f).
                  (H) Assurance of a free appropriate public 
                education.--Nothing in this section shall be 
                construed--
                          (i) to limit or condition the right 
                        of a child with a disability who is 
                        assisted under this part to receive a 
                        free appropriate public education 
                        pursuant to section 612(a)(1) in a 
                        least restrictive environment pursuant 
                        to section 612(a)(5); or
                          (ii) to authorize a State educational 
                        agency or local educational agency to 
                        indicate a limit on what is expected to 
                        be spent on the education of a child 
                        with a disability.
                  (I) Medicaid services not affected.--
                Disbursements provided under this subsection 
                shall not be used to pay costs that otherwise 
                would be reimbursable as medical assistance for 
                a child with a disability under the State 
                medicaid program under title XIX of the Social 
                Security Act.
                  (J) Definitions.--In this paragraph:
                          (i) Average per-pupil expenditure.--
                        The term ``average per-pupil 
                        expenditure'' has the meaning given the 
                        term in section 9101 of the Elementary 
                        and Secondary Education Act of 1965.
                          (ii) High-need child.--The term 
                        ``high-need'', when used with respect 
                        to a child with a disability, means a 
                        child with a disability for whom a free 
                        appropriate public education in a 
                        fiscal year costs more than 4 times the 
                        average per-pupil expenditure for such 
                        fiscal year.
                  (K) Special rule for risk pool and high-need 
                assistance programs in effect as of january 1, 
                2003.--Notwithstanding the provisions of 
                subparagraphs (A) through (J), a State may use 
                funds reserved pursuant to this paragraph for 
                administering and implementing a placement-
                neutral cost-sharing and reimbursement program 
                of high-need, low-incidence, emergency, 
                catastrophic, or extraordinary aid to local 
                educational agencies that provides services to 
                students eligible under this part based on 
                eligibility criteria for such programs that 
                were operative on January 1, 2003.
          (4) Inapplicability of certain prohibitions.--A State 
        may use funds the State reserves under paragraphs (1), 
        (2), and (3) without regard to--
                  (A) the prohibition on commingling of funds 
                in section 612(a)(17)(B); and
                  (B) the prohibition on supplanting other 
                funds in section 612(a)(17)(C).
          (5) Report on use of funds.--As part of the 
        information required to be submitted to the Secretary 
        under section 612, each State shall annually describe 
        how amounts under this section--
                  (A) will be used to meet the requirements of 
                this Act; and
                  (B) will be allocated among the activities 
                described in this section to meet State 
                priorities based on input from local 
                educational agencies.
          (6) Flexibility in using funds for part c.--Any State 
        eligible to receive a grant under section 619 may use 
        funds made available under paragraph (1)(A), subsection 
        (f)(3), or section 619(f)(5) to develop and implement a 
        State policy jointly with the lead agency under part C 
        and the State educational agency to provide early 
        intervention services (which shall include an 
        educational component that promotes school readiness 
        and incorporates pre-literacy, language, and numeracy 
        skills) in accordance with part C to children with 
        disabilities who are eligible for services under 
        section 619 and who previously received services under 
        part C until such children enter, or are eligible under 
        State law to enter, kindergarten.
  (f) Subgrants to Local Educational Agencies.--
          (1) Subgrants required.--Each State that receives a 
        grant under this section for any fiscal year shall 
        distribute any funds the State does not reserve under 
        subsection (e) to local educational agencies (including 
        public charter schools that operate as local 
        educational agencies) in the State that have 
        established their eligibility under section 613 for use 
        in accordance with this part.
          (2) Procedure for allocations to local educational 
        agencies.--
                  (A) Procedure.--For each fiscal year for 
                which funds are allocated to States under 
                subsection (d), each State shall allocate funds 
                under paragraph (1) as follows:
                          (i) Base payments.--The State shall 
                        first award each local educational 
                        agency described in paragraph (1) the 
                        amount the local educational agency 
                        would have received under this section 
                        for fiscal year 1999, if the State had 
                        distributed 75 percent of its grant for 
                        that year under section 611(d) as 
                        section 611(d) was then in effect.
                          (ii) Allocation of remaining funds.--
                        After making allocations under clause 
                        (i), the State shall--
                                  (I) allocate 85 percent of 
                                any remaining funds to those 
                                local educational agencies on 
                                the basis of the relative 
                                numbers of children enrolled in 
                                public and private elementary 
                                schools and secondary schools 
                                within the local educational 
                                agency's jurisdiction; and
                                  (II) allocate 15 percent of 
                                those remaining funds to those 
                                local educational agencies in 
                                accordance with their relative 
                                numbers of children living in 
                                poverty, as determined by the 
                                State educational agency.
          (3) Reallocation of funds.--If a State educational 
        agency determines that a local educational agency is 
        adequately providing a free appropriate public 
        education to all children with disabilities residing in 
        the area served by that local educational agency with 
        State and local funds, the State educational agency may 
        reallocate any portion of the funds under this part 
        that are not needed by that local educational agency to 
        provide a free appropriate public education to other 
        local educational agencies in the State that are not 
        adequately providing special education and related 
        services to all children with disabilities residing in 
        the areas served by those other local educational 
        agencies.
  (g) Definitions.--For the purpose of this section--
          (1) the term ``average per-pupil expenditure in 
        public elementary schools and secondary schools in the 
        United States'' means--
                  (A) without regard to the source of funds--
                          (i) the aggregate current 
                        expenditures, during the second fiscal 
                        year preceding the fiscal year for 
                        which the determination is made (or, if 
                        satisfactory data for that year are not 
                        available, during the most recent 
                        preceding fiscal year for which 
                        satisfactory data are available) of all 
                        local educational agencies in the 50 
                        States and the District of Columbia; 
                        plus
                          (ii) any direct expenditures by the 
                        State for the operation of those local 
                        educational agencies; divided by
                  (B) the aggregate number of children in 
                average daily attendance to whom those local 
                educational agencies provided free public 
                education during that preceding year; and
          (2) the term ``State'' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of 
        Puerto Rico.
  (h) Use of Amounts by Secretary of the Interior.--
          (1) Provision of amounts for assistance.--
                  (A) In general.--The Secretary of Education 
                shall provide amounts to the Secretary of the 
                Interior to meet the need for assistance for 
                the education of children with disabilities on 
                reservations aged 5 through 21 who are enrolled 
                in elementary schools and secondary schools for 
                Indian children operated or funded by the 
                Secretary of the Interior. The amount of such 
                payment for any fiscal year shall be equal to 
                80 percent of the amount allotted under 
                subsection (c) for that fiscal year.
                  (B) Calculation of number of children.--In 
                the case of Indian students aged 3 through 5 
                who are enrolled in programs affiliated with 
                the Bureau of Indian Affairs (hereafter in this 
                subsection referred to as ``BIA'') schools, and 
                that are required by the States in which such 
                schools are located to attain or maintain State 
                accreditation, and which schools had such 
                accreditation prior to the date of enactment of 
                the Individuals with Disabilities Education Act 
                Amendments of 1991, the school shall be allowed 
                to count those children for the purpose of 
                distribution of the funds provided under this 
                paragraph to the Secretary of the Interior. The 
                Secretary of the Interior shall be responsible 
                for meeting all of the requirements of this 
                part for these children, in accordance with 
                paragraph (2).
                  (C) Additional requirement.--With respect to 
                all other children aged 3 through 21 on 
                reservations, the State educational agency 
                shall be responsible for ensuring that all of 
                the requirements of this part are implemented.
          (2) Submission of information.--The Secretary of 
        Education may provide the Secretary of the Interior 
        amounts under paragraph (1) for a fiscal year only if 
        the Secretary of the Interior submits to the Secretary 
        of Education information that--
                  (A) demonstrates that the Department of the 
                Interior meets the appropriate requirements, as 
                determined by the Secretary of Education, of 
                sections 612 (including monitoring and 
                evaluation activities) and 613;
                  (B) includes a description of how the 
                Secretary of the Interior will coordinate the 
                provision of services under this part with 
                local educational agencies, tribes and tribal 
                organizations, and other private and Federal 
                service providers;
                  (C) includes an assurance that there are 
                public hearings, adequate notice of such 
                hearings, and an opportunity for comment 
                afforded to members of tribes, tribal governing 
                bodies, and affected local school boards before 
                the adoption of the policies, programs, and 
                procedures described in subparagraph (A);
                  (D) includes an assurance that the Secretary 
                of the Interior will provide such information 
                as the Secretary of Education may require to 
                comply with section 618;
                  (E) includes an assurance that the Secretary 
                of the Interior and the Secretary of Health and 
                Human Services have entered into a memorandum 
                of agreement, to be provided to the Secretary 
                of Education, for the coordination of services, 
                resources, and personnel between their 
                respective Federal, State, and local offices 
                and with State and local educational agencies 
                and other entities to facilitate the provision 
                of services to Indian children with 
                disabilities residing on or near reservations 
                (such agreement shall provide for the 
                apportionment of responsibilities and costs 
                including, but not limited to, child find, 
                evaluation, diagnosis, remediation or 
                therapeutic measures, and (where appropriate) 
                equipment and medical or personal supplies as 
                needed for a child to remain in school or a 
                program); and
                  (F) includes an assurance that the Department 
                of the Interior will cooperate with the 
                Department of Education in its exercise of 
                monitoring and oversight of this application, 
                and any agreements entered into between the 
                Secretary of the Interior and other entities 
                under this part, and will fulfill its duties 
                under this part.
          (3) Applicability.--Section 616(a) shall apply to the 
        information described in this paragraph.
          (4) Payments for education and services for indian 
        children with disabilities aged 3 through 5.--
                  (A) In general.--With funds appropriated 
                under subsection (i), the Secretary of 
                Education shall make payments to the Secretary 
                of the Interior to be distributed to tribes or 
                tribal organizations (as defined under section 
                4 of theIndian Self-Determination and Education 
Assistance Act) or consortia of the above to provide for the 
coordination of assistance for special education and related services 
for children with disabilities aged 3 through 5 on reservations served 
by elementary schools and secondary schools for Indian children 
operated or funded by the Department of the Interior. The amount of 
such payments under subparagraph (B) for any fiscal year shall be equal 
to 20 percent of the amount allotted under subsection (c).
                  (B) Distribution of funds.--The Secretary of 
                the Interior shall distribute the total amount 
                of the payment under subparagraph (A) by 
                allocating to each tribe or tribal organization 
                an amount based on the number of children with 
                disabilities ages 3 through 5 residing on 
                reservations as reported annually, divided by 
                the total of those children served by all 
                tribes or tribal organizations.
                  (C) Submission of information.--To receive a 
                payment under this paragraph, the tribe or 
                tribal organization shall submit such figures 
                to the Secretary of the Interior as required to 
                determine the amounts to be allocated under 
                subparagraph (B). This information shall be 
                compiled and submitted to the Secretary of 
                Education.
                  (D) Use of funds.--The funds received by a 
                tribe or tribal organization shall be used to 
                assist in child find, screening, and other 
                procedures for the early identification of 
                children aged 3 through 5, parent training, and 
                the provision of direct services. These 
                activities may be carried out directly or 
                through contracts or cooperative agreements 
                with the BIA, local educational agencies, and 
                other public or private nonprofit 
                organizations. The tribe or tribal organization 
                is encouraged to involve Indian parents in the 
                development and implementation of these 
                activities. The above entities shall, as 
                appropriate, make referrals to local, State, or 
                Federal entities for the provision of services 
                or further diagnosis.
                  (E) Biennial report.--To be eligible to 
                receive a grant pursuant to subparagraph (A), 
                the tribe or tribal organization shall provide 
                to the Secretary of the Interior a biennial 
                report of activities undertaken under this 
                paragraph, including the number of contracts 
                and cooperative agreements entered into, the 
                number of children contacted and receiving 
                services for each year, and the estimated 
                number of children needing services during the 
                2 years following the year in which the report 
                is made. The Secretary of the Interior shall 
                include a summary of this information on a 
                biennial basis in the report to the Secretary 
                of Education required under this subsection. 
                The Secretary of Education may require any 
                additional information from the Secretary of 
                the Interior.
                  (F) Prohibitions.--None of the funds 
                allocated under this paragraph may be used by 
                the Secretary of the Interior for 
                administrative purposes, including child count 
                and the provision of technical assistance.
          (5) Plan for coordination of services.--The Secretary 
        of the Interior shall develop and implement a plan for 
        the coordination of services for all Indian children 
        with disabilities residing on reservations covered 
        under this Act. Such plan shall provide for the 
        coordination of services benefiting these children from 
        whatever source, including tribes, the Indian Health 
        Service, other BIA divisions, and other Federal 
        agencies. In developing the plan, the Secretary of the 
        Interior shall consult with all interested and involved 
        parties. The plan shall be based on the needs of the 
        children and the system best suited for meeting those 
        needs, and may involve the establishment of cooperative 
        agreements between the BIA, other Federal agencies, and 
        other entities. The plan shall also be distributed upon 
        request to States, State and local educational 
        agencies, and other agencies providing services to 
        infants, toddlers, and children with disabilities, to 
        tribes, and to other interested parties.
          (6) Establishment of advisory board.--To meet the 
        requirements of section 612(a)(20), the Secretary of 
        the Interior shall establish, under the BIA, an 
        advisory board composed of individuals involved in or 
        concerned with the education and provision of services 
        to Indian infants, toddlers, children, and youth with 
        disabilities, including Indians with disabilities, 
        Indian parents or guardians of such children, teachers, 
        service providers, State and local educational 
        officials, representatives of tribes or tribal 
        organizations, representatives from State Interagency 
        Coordinating Councils under section 641 in States 
        having reservations, and other members representing the 
        various divisions and entities of the BIA. The 
        chairperson shall be selected by the Secretary of the 
        Interior. The advisory board shall--
                  (A) assist in the coordination of services 
                within the BIA and with other local, State, and 
                Federal agencies in the provision of education 
                for infants, toddlers, and children with 
                disabilities;
                  (B) advise and assist the Secretary of the 
                Interior in the performance of the Secretary's 
                responsibilities described in this subsection;
                  (C) develop and recommend policies concerning 
                effective inter- and intra-agency 
                collaboration, including modifications to 
                regulations, and the elimination of barriers to 
                inter- and intra-agency programs and 
                activities;
                  (D) provide assistance and disseminate 
                information on best practices, effective 
                program coordination strategies, and 
                recommendations for improved educational 
                programming for Indian infants, toddlers, and 
                children with disabilities; and
                  (E) provide assistance in the preparation of 
                information required under paragraph (2)(D).
          (7) Annual reports.--
                  (A) In general.--The advisory board 
                established under paragraph (6) shall prepare 
                and submit to the Secretary of the Interior and 
                to Congress an annual report containing a 
                description of the activities of the advisory 
                board for the preceding year.
                  (B) Availability.--The Secretary of the 
                Interior shall make available to the Secretary 
                of Education the report described in 
                subparagraph (A).
  (i) Authorization of Appropriations.--For the purpose of 
carrying out this part, other than section 619, there are 
authorized to be appropriated such sums as may be necessary.

SEC. 612. STATE ELIGIBILITY.

  (a) In General.--A State is eligible for assistance under 
this part for a fiscal year if the State submits a plan that 
provides assurances to the Secretary that the State has in 
effect policies and procedures to ensure that the State meets 
each of the following conditions:
          (1) Free appropriate public education.--
                  (A) In general.--A free appropriate public 
                education is available to all children with 
                disabilities residing in the State between the 
                ages of 3 and 21, inclusive, including children 
                with disabilities who have been suspended or 
                expelled from school.
                  (B) Limitation.--The obligation to make a 
                free appropriate public education available to 
                all children with disabilities does not apply 
                with respect to children--
                          (i) aged 3 through 5 and 18 through 
                        21 in a State to the extent that its 
                        application to those children would be 
                        inconsistent with State law or 
                        practice, or the order of any court, 
                        respecting the provision of public 
                        education to children in those age 
                        ranges; and
                          (ii) aged 18 through 21 to the extent 
                        that State law does not require that 
                        special education and related services 
                        under this part be provided to children 
                        with disabilities who, in the 
                        educational placement prior to their 
                        incarceration in an adult correctional 
                        facility--
                                  (I) were not actually 
                                identified as being a child 
                                with a disability under section 
                                602(3); or
                                  (II) did not have an 
                                individualized education 
                                program under this part.
                  (C) State flexibility.--A State that provides 
                early intervention services in accordance with 
                part C to a child who is eligible for services 
                under section 619, is not required to provide 
                such child with a free appropriate public 
                education.
          (2) Full educational opportunity goal.--The State has 
        established a goal of providing full educational 
        opportunity to all children with disabilities and a 
        detailed timetable for accomplishing that goal.
          (3) Child find.--
                  (A) In general.--All children with 
                disabilities residing in the State, including 
                children with disabilities attending private 
                schools, regardless of the severity of their 
                disabilities, and who are in need of special 
                education and related services, are identified, 
                located, and evaluated and a practical method 
                is developed and implemented to determine which 
                children with disabilities are currently 
                receiving needed special education and related 
                services.
                  (B) Construction.--Nothing in this Act 
                requires that children be classified by their 
                disability so long as each child who has a 
                disability listed in section 602 and who, by 
                reason of that disability, needs special 
                education and related services is regarded as a 
                child with a disability under this part.
          (4) Individualized education program.--An 
        individualized education program, or an individualized 
        family service plan that meets the requirements of 
        section 636(d), is developed, reviewed, and revised for 
        each child with a disability in accordance with section 
        614(d).
          (5) Least restrictive environment.--
                  (A) In general.--To the maximum extent 
                appropriate, children with disabilities, 
                including children in public or private 
                institutions or other care facilities, are 
                educated with children who are not disabled, 
                and special classes, separate schooling, or 
                other removal of children with disabilities 
                from the regular educational environment occurs 
                only when the nature or severity of the 
                disability of a child is such that education in 
                regular classes with the use of supplementary 
                aids and services cannot be achieved 
                satisfactorily.
                  (B) Additional requirement.--
                          (i) In general.--A State funding 
                        mechanism shall not result in 
                        placements that violate the 
                        requirements of subparagraph (A), and a 
                        State shall not use a funding mechanism 
                        by which the State distributes funds on 
                        the basis of the type of setting in 
                        which a child is served that will 
                        result in the failure to provide a 
                        child with a disability a free 
                        appropriate public education according 
                        to the unique needs of the child as 
                        described in the child's IEP.
                          (ii) Assurance.--If the State does 
                        not have policies and procedures to 
                        ensure compliance with clause (i), the 
                        State shall provide the Secretary an 
                        assurance that the State will revise 
                        the funding mechanism as soon as 
                        feasible to ensure that such mechanism 
                        does not result in such placements.
          (6) Procedural safeguards.--
                  (A) In general.--Children with disabilities 
                and their parents are afforded the procedural 
                safeguards required by section 615.
                  (B) Additional procedural safeguards.--
                Procedures to ensure that testing and 
                evaluation materials and procedures utilized 
                for the purposes of evaluation and placement of 
                children with disabilities will be selected and 
                administered so as not to be racially or 
                culturally discriminatory. Such materials or 
                procedures shall be provided and administered 
                in the child's native language or mode of 
                communication, unless it clearly is not 
                feasible to do so, and no single procedure 
                shall be the sole criterion for determining an 
                appropriate educational program for a child.
          (7) Evaluation.--Children with disabilities are 
        evaluated in accordance with subsections (a) and (b) of 
        section 614.
          (8) Confidentiality.--Agencies in the State comply 
        with section 617(c) (relating to the confidentiality of 
        records and information).
          (9) Transition from part c to preschool programs.--
        Children participating in early-intervention programs 
        assisted under part C, and who will participate in 
        preschool programs assisted under this part, experience 
        a smooth and effective transition to those preschool 
        programs in a manner consistent with section 637(a)(8). 
        By the third birthday of such a child, an 
        individualized education program or, if consistent with 
        sections 614(d)(2)(B) and 636(d), an individualized 
        family service plan, has been developed and is being 
        implemented for the child. The local educational agency 
        will participate in transition planning conferences 
        arranged by the designated lead agency under section 
        635(a)(10).
          (10) Children in private schools.--
                  (A) Children enrolled in private schools by 
                their parents.--
                          (i) In general.--To the extent 
                        consistent with the number and location 
                        of children with disabilities in the 
                        State who are enrolled by their parents 
                        in private elementary schools and 
                        secondary schools in the school 
                        district served by a local educational 
                        agency, provision is made for the 
                        participation of those children in the 
                        program assisted or carried out under 
                        this part by providing for such 
                        children special education and related 
                        services in accordance with the 
                        following requirements, unless the 
                        Secretary has arranged for services to 
                        those children under subsection (f):
                                  (I) Amounts to be expended 
                                for the provision of those 
                                services (including direct 
                                services to parentally placed 
                                children) by the local 
                                educational agency shall be 
                                equal to a proportionate amount 
                                of Federal funds made available 
                                under this part.
                                  (II) Such services may be 
                                provided to children with 
                                disabilities on the premises of 
                                private, including religious, 
                                schools, to the extent 
                                consistent with law.
                                  (III) Each local educational 
                                agency shall maintain in its 
                                records and provide to the 
                                State educational agency the 
                                number of children evaluated 
                                under this paragraph, the 
                                number of children determined 
                                to be children with 
                                disabilities, and the number of 
                                children served under this 
                                subsection.
                          (ii) Child-find requirement.--
                                  (I) In general.--The 
                                requirements of paragraph (3) 
                                of this subsection (relating to 
                                child find) shall apply with 
                                respect to children with 
                                disabilities in the State who 
                                are enrolled in private, 
                                including religious, elementary 
                                schools and secondary schools. 
                                Such child find process shall 
                                be conducted in a comparable 
                                time period as for other 
                                students attending public 
                                schools in the local 
                                educational agency.
                                  (II) Equitable 
                                participation.--The child find 
                                process shall be designed to 
                                ensure the equitable 
                                participation of parentally 
                                placed private school children 
                                and an accurate count of such 
                                children.
                                  (III) Activities.--In 
                                carrying out this clause, the 
                                local educational agency, or 
                                where applicable, the State 
                                educational agency, shall 
                                undertake activities similar to 
                                those activities undertaken for 
                                its public school children.
                                  (IV) Cost.--The cost of 
                                carrying out this clause, 
                                including individual 
                                evaluations, may not be 
                                considered in determining 
                                whether a local education 
                                agency has met its obligations 
                                under clause (i).
                          (iii) Consultation.--To ensure timely 
                        and meaningful consultation, a local 
                        educational agency, or where 
                        appropriate, a State educational 
                        agency, shall consult, with 
                        representatives of children with 
                        disabilities who are parentally placed 
                        in private schools, during the design 
                        and development of special education 
                        and related services for these 
                        children, including consultation 
                        regarding--
                                  (I) the child find process 
                                and how parentally placed 
                                private school children 
                                suspected of having a 
                                disability can participate 
                                equitably, including how 
                                parents, teachers, and private 
                                school officials will be 
                                informed of the process;
                                  (II) the determination of the 
                                proportionate share of Federal 
                                funds available to serve 
                                parentally placed private 
                                school children with 
                                disabilities under this 
                                paragraph, including the 
                                determination of how the 
                                proportionate share of those 
                                funds were calculated;
                                  (III) the consultation 
                                process among the school 
                                district, private school 
                                officials, and parents of 
                                parentally placed private 
                                school children with 
                                disabilities, including how 
                                such process will operate 
                                throughout the school year to 
                                ensure that parentally placed 
                                children with disabilities 
                                identified through the child 
                                find process can meaningfully 
                                participate in special 
                                education and related services;
                                  (IV) how, where, and by whom 
                                special education and related 
                                services will be provided for 
                                parentally placed private 
                                school children, including a 
                                discussion of alternate service 
                                delivery mechanisms, how such 
                                services will be apportioned if 
                                funds are insufficient to serve 
                                all children, and how and when 
                                these decisions will be made; 
                                and
                                  (V) how, if the local 
                                educational agency disagrees 
                                with the views of the private 
                                school officials on the 
                                provision of services through a 
                                contract, the local educational 
                                agency shall provide to the 
                                private school officials a 
                                written explanation of the 
                                reasons why the local 
                                educational agency chose not to 
                                provide services through a 
                                contract.
                          (iv) Written affirmation.--When 
                        timely and meaningful consultation as 
                        required by this section has occurred, 
                        the local educational agency shall 
                        obtain a written affirmation signed by 
                        the representatives of participating 
                        private schools, and if such officials 
                        do not provide such affirmations within 
                        a reasonable period of time, the local 
                        educational agency shall forward the 
                        documentation of the consultation 
                        process to the State educational 
                        agency.
                          (v) Compliance.--
                                  (I) In general.--A private 
                                school official shall have the 
                                right to complain to the State 
                                educational agency that the 
                                local educational agency did 
                                not engage in consultation that 
                                was meaningful and timely, or 
                                did not give due consideration 
                                to the views of the private 
                                school official.
                                  (II) Procedure.--If the 
                                private school official wishes 
                                to complain, the official shall 
                                provide the basis of the 
                                noncompliance with this section 
                                by the local educational agency 
                                to the State educational 
                                agency, and the local 
                                educational agency shall 
                                forward the appropriate 
                                documentation to the State 
                                educational agency. If the 
                                private school official is 
                                dissatisfied with the decision 
                                of the State educational 
                                agency, such official may 
                                complain to the Secretary by 
                                providing the basis of the 
                                noncompliance with this section 
                                by the local educational agency 
                                to the Secretary, and the State 
                                educational agency shall 
                                forward the appropriate 
                                documentation to the Secretary.
                          (vi) Provision of equitable 
                        services.--
                                  (I) Direct services.--To the 
                                extent practicable, the local 
                                educational agency shall 
                                provide direct services to 
                                children with disabilities 
                                parentally placed in private 
                                schools.
                                  (II) Directly or through 
                                contracts.--A public agency may 
                                provide special education and 
                                related services directly or 
                                through contracts with public 
                                and private agencies, 
                                organizations, and 
                                institutions.
                                  (III) Secular, neutral, 
                                nonideological.--Special 
                                education and related services 
                                provided to children with 
                                disabilities attending private 
                                schools, including materials 
                                and equipment, shall be 
                                secular, neutral, and 
                                nonideological.
                          (vii) Public control of funds.--The 
                        control of funds used to provide 
                        special education and related services 
                        under this section, and title to 
                        materials, equipment, and property 
                        purchased with those funds, shall be in 
                        a public agency for the uses and 
                        purposes provided in this Act, and a 
                        public agency shall administer the 
                        funds and property.
                  (B) Children placed in, or referred to, 
                private schools by public agencies.--
                          (i) In general.--Children with 
                        disabilities in private schools and 
                        facilities are provided special 
                        education and related services, in 
                        accordance with an individualized 
                        education program, at no cost to their 
                        parents, if such children are placed 
                        in, or referred to, such schools or 
                        facilities by the State or appropriate 
                        local educational agency as the means 
                        of carrying out the requirements of 
                        this part or any other applicable law 
                        requiring the provision of special 
                        education and related services to all 
                        children with disabilities within such 
                        State.
                          (ii) Standards.--In all cases 
                        described in clause (i), the State 
                        educational agency shall determine 
                        whether such schools and facilities 
                        meet standards that apply to State and 
                        local educational agencies and that 
                        children so served have all the rights 
                        the children would have if served by 
                        such agencies.
                  (C) Payment for education of children 
                enrolled in private schools without consent of 
                or referral by the public agency.--
                          (i) In general.--Subject to 
                        subparagraph (A), this part does not 
                        require a local educational agency to 
                        pay for the cost of education, 
                        including special education and related 
                        services, of a child with a disability 
                        at a private school or facility if that 
                        agency made a free appropriate public 
                        education available to the child and 
                        the parents elected to place the child 
                        in such private school or facility.
                          (ii) Reimbursement for private school 
                        placement.--If the parents of a child 
                        with a disability, who previously 
                        received special education and related 
                        services under the authority of a 
                        public agency, enroll the child in a 
                        private elementary school or secondary 
                        school without the consent of or 
                        referral by the public agency, a court 
                        or a hearing officer may require the 
                        agency to reimburse the parents for the 
                        cost of that enrollment if the court or 
                        hearing officer finds that the agency 
                        had not made a free appropriate public 
                        education available to the child in a 
                        timely manner prior to that enrollment.
                          (iii) Limitation on reimbursement.--
                        The cost of reimbursement described in 
                        clause (ii) may be reduced or denied--
                                  (I) if--
                                          (aa) at the most 
                                        recent IEP meeting that 
                                        the parents attended 
                                        prior to removal of the 
                                        child from the public 
                                        school, the parents did 
                                        not inform the IEP Team 
                                        that they were 
                                        rejecting the placement 
                                        proposed by the public 
                                        agency to provide a 
                                        free appropriate public 
                                        education to their 
                                        child, including 
                                        stating their concerns 
                                        and their intent to 
                                        enroll their child in a 
                                        private school at 
                                        public expense; or
                                          (bb) 10 business days 
                                        (including any holidays 
                                        that occur on a 
                                        business day) prior to 
                                        the removal of the 
                                        child from the public 
                                        school, the parents did 
                                        not give written notice 
                                        to the public agency of 
                                        the information 
                                        described in division 
                                        (aa);
                                  (II) if, prior to the 
                                parents' removal of the child 
                                from the public school, the 
                                public agency informed the 
                                parents, through the notice 
                                requirements described in 
                                section 615(b)(3), of its 
                                intent to evaluate the child 
                                (including a statement of the 
                                purpose of the evaluation that 
                                was appropriate and 
                                reasonable), but the parents 
                                did not make the child 
                                available for such evaluation; 
                                or
                                  (III) upon a judicial finding 
                                of unreasonableness with 
                                respect to actions taken by the 
                                parents.
                          (iv) Exception.--Notwithstanding the 
                        notice requirement in clause (iii)(I), 
                        the cost of reimbursement--
                                  (I) shall not be reduced or 
                                denied for failure to provide 
                                such notice if--
                                          (aa) the school 
                                        prevented the parent 
                                        from providing such 
                                        notice; or
                                          (bb) the parents had 
                                        not received notice, 
                                        pursuant to section 
                                        615, of the notice 
                                        requirement in clause 
                                        (iii)(I); and
                                  (II) may, in the discretion 
                                of a court or a hearing 
                                officer, not be reduced or 
                                denied for failure to provide 
                                such notice if--
                                          (aa) the parent is 
                                        illiterate and cannot 
                                        write in English; or
                                          (bb) compliance with 
                                        clause (iii)(I) would 
                                        likely have resulted in 
                                        physical or serious 
                                        emotional harm to the 
                                        child.
          (11) State educational agency responsible for general 
        supervision.--
                  (A) In general.--The State educational agency 
                is responsible for ensuring that--
                          (i) the requirements of this part are 
                        met; and
                          (ii) all educational programs for 
                        children with disabilities in the 
                        State, including all such programs 
                        administered by any other State or 
                        local agency--
                                  (I) are under the general 
                                supervision of individuals in 
                                the State who are responsible 
                                for educational programs for 
                                children with disabilities; and
                                  (II) meet the educational 
                                standards of the State 
                                educational agency.
                  (B) Limitation.--Subparagraph (A) shall not 
                limit the responsibility of agencies in the 
                State other than the State educational agency 
                to provide, or pay for some or all of the costs 
                of, a free appropriate public education for any 
                child with a disability in the State.
                  (C) Exception.--Notwithstanding subparagraphs 
                (A) and (B), the Governor (or another 
                individual pursuant to State law), consistent 
                with State law, may assign to any public agency 
                in the State the responsibility of ensuring 
                that the requirements of this part are met with 
                respect to children with disabilities who are 
                convicted as adults under State law and 
                incarcerated in adult prisons.
          (12) Obligations related to and methods of ensuring 
        services.--
                  (A) Establishing responsibility for 
                services.--The Chief Executive Officer of a 
                State or designee of the officer shall ensure 
                that an interagency agreement or other 
                mechanism for interagency coordination is in 
                effect between each public agency described in 
                subparagraph (B) and the State educational 
                agency, in order to ensure that all services 
                described in subparagraph (B)(i) that are 
                needed to ensure a free appropriate public 
                education are provided, including the provision 
                of such services during the pendency of any 
                dispute under clause (iii). Such agreement or 
                mechanism shall include the following:
                          (i) Agency financial 
                        responsibility.--An identification of, 
                        or a method for defining, the financial 
                        responsibility of each agency for 
                        providing services described in 
                        subparagraph (B)(i) to ensure a free 
                        appropriate public education to 
                        children with disabilities, provided 
                        that the financial responsibility of 
                        each public agency described in 
                        subparagraph (B), including the State 
                        Medicaid agency and other public 
                        insurers of children with disabilities, 
                        shall precede the financial 
                        responsibility of the local educational 
                        agency (or the State agency responsible 
                        for developing the child's IEP).
                          (ii) Conditions and terms of 
                        reimbursement.--The conditions, terms, 
                        and procedures under which a local 
                        educational agency shall be reimbursed 
                        by other agencies.
                          (iii) Interagency disputes.--
                        Procedures for resolving interagency 
                        disputes (including procedures under 
                        which local educational agencies may 
                        initiate proceedings) under the 
                        agreement or other mechanism to secure 
                        reimbursement from other agencies or 
                        otherwise implement the provisions of 
                        the agreement or mechanism.
                          (iv) Coordination of services 
                        procedures.--Policies and procedures 
                        for agencies to determine and identify 
                        the interagency coordination 
                        responsibilities of each agency to 
                        promote the coordination and timely and 
                        appropriate delivery of services 
                        described in subparagraph (B)(i).
                  (B) Obligation of public agency.--
                          (i) In general.--If any public agency 
                        other than an educational agency is 
                        otherwise obligated under Federal or 
                        State law, or assigned responsibility 
                        under State policy pursuant to 
                        subparagraph (A), to provide or pay for 
                        any services that are also considered 
                        special education or related services 
                        (such as, but not limited to, services 
                        described in section 602(1) relating to 
                        assistive technology devices, 602(2) 
                        relating to assistive technology 
                        services, 602(25) relating to related 
                        services, 602(32) relating to 
                        supplementary aids and services, and 
                        602(33) relating to transition 
                        services) that are necessary for 
                        ensuring a free appropriate public 
                        education to children with disabilities 
                        within the State, such public agency 
                        shall fulfill that obligation or 
                        responsibility, either directly or 
                        through contract or other arrangement 
                        pursuant to subparagraph (A) or an 
                        agreement pursuant to subparagraph (C).
                          (ii) Reimbursement for services by 
                        public agency.--If a public agency 
                        other than an educational agency fails 
                        to provide or pay for the special 
                        education and related services 
                        described in clause (i), the local 
                        educational agency (or State agency 
                        responsible for developing the child's 
                        IEP) shall provide or pay for such 
                        services to the child. Such local 
                        educational agency or State agency is 
                        authorized to claim reimbursement for 
                        the services from the public agency 
                        that failed to provide or pay for such 
                        services and such public agency shall 
                        reimburse the local educational agency 
                        or State agency pursuant to the terms 
                        of the interagency agreement or other 
                        mechanism described in subparagraph 
                        (A)(i) according to the procedures 
                        established in such agreement pursuant 
                        to subparagraph (A)(ii).
                  (C) Special rule.--The requirements of 
                subparagraph (A) may be met through--
                          (i) State statute or regulation;
                          (ii) signed agreements between 
                        respective agency officials that 
                        clearly identify the responsibilities 
                        of each agency relating to the 
                        provision of services; or
                          (iii) other appropriate written 
                        methods as determined by the Chief 
                        Executive Officer of the State or 
                        designee of the officer and approved by 
                        the Secretary.
          (13) Procedural requirements relating to local 
        educational agency eligibility.--The State educational 
        agency will not make a final determination that a local 
        educational agency is not eligible for assistance under 
        this part without first affording that agency 
        reasonable notice and an opportunity for a hearing.
          (14) Personnel standards.--
                  (A) In general.--The State educational agency 
                has established and maintains standards to 
                ensure that personnel necessary to carry out 
                this part are appropriately and adequately 
                prepared and trained, including that those 
                personnel have the content knowledge and skills 
                to serve children with disabilities.
                  (B) Related services personnel and 
                paraprofessionals.--The standards under 
                subparagraph (A) include standards for related 
                services personnel and paraprofessionals that--
                          (i) are consistent with any State-
                        approved or State-recognized 
                        certification, licensing, registration, 
                        or other comparable requirements that 
                        apply to the professional discipline in 
                        which those personnel are providing 
                        special education or related services;
                          (ii) ensure that related services 
                        personnel who deliver services in their 
                        discipline or profession meet the 
                        requirements of clause (i) and have not 
                        had certification or licensure 
                        requirements waived on an emergency, 
                        temporary, or provisional basis; and
                          (iii) allow paraprofessionals and 
                        assistants who are appropriately 
                        trained and supervised, in accordance 
                        with State law, regulation, or written 
                        policy, in meeting the requirements of 
                        this part to be used to assist in the 
                        provision of special education and 
                        related services under this part to 
                        children with disabilities.
                  (C) Standards for special education 
                teachers.--
                          (i) In general.--The standards 
                        described in subparagraph (A) shall 
                        ensure that each person employed as a 
                        special education teacher in the State 
                        who teaches in an elementary, middle, 
                        or secondary school is highly qualified 
                        not later than the end of the 2006-2007 
                        school year.
                          (ii) Compliance.--Notwithstanding 
                        paragraphs (2) and (3) of section 
                        1119(a) of the Elementary and Secondary 
                        Education Act of 1965, for purposes of 
                        determining compliance with such 
                        paragraphs--
                                  (I) the Secretary, the State 
                                educational agency, and local 
                                educational agencies shall 
                                apply the definition of highly 
                                qualified in section 602(10) to 
                                special education teachers; and
                                  (II) the State shall ensure 
                                that all special education 
                                teachers teaching in core 
                                academic subjects within the 
                                State are highly qualified (as 
                                defined in section 602(10)) not 
                                later than the end of the 2006-
                                2007 school year.
                          (iii) Parents' right to know.--In 
                        carrying out section 1111(h)(6) of the 
                        Elementary and Secondary Education Act 
                        of 1965 with respect to special 
                        education teachers, a local educational 
                        agency shall--
                                  (I) include in a response to 
                                a request under such section 
                                any additional information 
                                needed to demonstrate that the 
                                teacher meets the applicable 
                                requirements of section 602(10) 
                                relating to certification or 
                                licensure as a special 
                                education teacher; and
                                  (II) apply the definition of 
                                highly qualified in section 
                                602(10) in carrying out section 
                                1111(h)(6)(B)(ii).
                  (D) Policy.--In implementing this section, a 
                State shall adopt a policy that includes a 
                requirement that local educational agencies in 
                the State take measurable steps to recruit, 
                hire, train, and retain highly qualified 
                personnel to provide special education and 
                related services under this part to children 
                with disabilities.
                  (E) Rule of construction.--Notwithstanding 
                any other individual right of action that a 
                parent or student may maintain under this part, 
                nothing in this subsection shall be construed 
                to create a right of action on behalf of an 
                individual student for the failure of a 
                particular State educational agency or local 
                educational agency staff person to be highly 
                qualified, or to prevent a parent from filing a 
                complaint about staff qualifications with the 
                State educational agency as provided for under 
                this part.
          (15) Performance goals and indicators.--The State--
                  (A) has established goals for the performance 
                of children with disabilities in the State 
                that--
                          (i) promote the purposes of this Act, 
                        as stated in section 601(d);
                          (ii) are the same as the State's 
                        definition of adequate yearly progress, 
                        including the State's objectives for 
                        progress by children with disabilities, 
                        under section 1111(b)(2)(C) of the 
                        Elementary and Secondary Education Act 
                        of 1965;
                          (iii) address graduation rates and 
                        drop out rates, as well as such other 
                        factors as the State may determine; and
                          (iv) are consistent, to the extent 
                        appropriate, with any other goals and 
                        standards for children established by 
                        the State;
                  (B) has established performance indicators 
                the State will use to assess progress toward 
                achieving the goals described in subparagraph 
                (A), including measurable annual objectives for 
                progress by children with disabilities under 
                section 1111(b)(2)(C)(v)(II)(cc) of the 
                Elementary and Secondary Education Act of 1965; 
                and
                  (C) will annually report to the Secretary and 
                the public on the progress of the State, and of 
                children with disabilities in the State, toward 
                meeting the goals established under 
                subparagraph (A).
          (16) Participation in assessments.--
                  (A) In general.--All children with 
                disabilities are included in all general State 
                and districtwide assessment programs and 
                accountability systems, including assessments 
                and accountability systems described under 
                section 1111 of the Elementary and Secondary 
                Education Act of 1965, with appropriate 
                accommodations, alternate assessments where 
                necessary, and as indicated in their respective 
                individualized education programs.
                  (B) Accommodation guidelines.--The State (or, 
                in the case of a districtwide assessment, the 
                local educational agency) has developed 
                guidelines for the provision of appropriate 
                accommodations.
                  (C) Alternate assessments.--
                          (i) In general.--The State (or, in 
                        the case of a districtwide assessment, 
                        the local educational agency) has 
                        developed and implemented guidelines 
                        for the participation of children with 
                        disabilities in alternate assessments 
                        for those children who cannot 
                        participate in regular assessments 
                        under subparagraph (B) as indicated in 
                        their respective individualized 
                        education programs.
                          (ii) Requirements for alternate 
                        assessments.--The guidelines under 
                        clause (i) shall provide for alternate 
                        assessments that--
                                  (I) are aligned with the 
                                State's challenging academic 
                                content and academic 
                                achievement standards; and
                                  (II) if the State has adopted 
                                alternate academic achievement 
                                standards permitted under 
                                section 1111(b)(1) of the 
                                Elementary and Secondary 
                                Education Act of 1965, measure 
                                the achievement of children 
                                with disabilities against those 
                                standards.
                          (iii) Conduct of alternative 
                        assessments.--The State conducts the 
                        alternate assessments described in this 
                        subparagraph.
                  (D) Reports.--The State educational agency 
                (or, in the case of a districtwide assessment, 
                the local educational agency) makes available 
                to the public, and reports to the public with 
                the same frequency and in the same detail as it 
                reports on the assessment of nondisabled 
                children, the following:
                          (i) The number of children with 
                        disabilities participating in regular 
                        assessments, and the number of those 
                        children who were provided 
                        accommodations in order to participate 
                        in those assessments.
                          (ii) The number of children with 
                        disabilities participating in alternate 
                        assessments described in subparagraph 
                        (C)(ii)(I).
                          (iii) The number of children with 
                        disabilities participating in alternate 
                        assessments described in subparagraph 
                        (C)(ii)(II).
                          (iv) The performance of children with 
                        disabilities on regular assessments and 
                        on alternate assessments (if the number 
                        of children with disabilities 
                        participating in those assessments is 
                        sufficient to yield statistically 
                        reliable information and reporting that 
                        information will not reveal personally 
                        identifiable information about an 
                        individual student), compared with the 
                        achievement of all children, including 
                        children with disabilities, on those 
                        assessments.
                  (E) Universal design.--The State educational 
                agency (or, in the case of a districtwide 
                assessment, the local educational agency) 
                shall, to the extent feasible, use universal 
                design principles in developing and 
                administering any assessments under this 
                paragraph.
          (17) Supplementation of state, local, and other 
        federal funds.--
                  (A) Expenditures.--Funds paid to a State 
                under this part will be expended in accordance 
                with all the provisions of this part.
                  (B) Prohibition against commingling.--Funds 
                paid to a State under this part will not be 
                commingled with State funds.
                  (C) Prohibition against supplantation and 
                conditions for waiver by secretary.--Except as 
                provided in section 613, funds paid to a State 
                under this part will be used to supplement the 
                level of Federal, State, and local funds 
                (including funds that are not under the direct 
                control of State or local educational agencies) 
                expended for special education and related 
                services provided to children with disabilities 
                under this part and in no case to supplant such 
                Federal, State, and local funds, except that, 
                where the State provides clear and convincing 
                evidence that all children with disabilities 
                have available to them a free appropriate 
                public education, the Secretary may waive, in 
                whole or in part, the requirements of this 
                subparagraph if the Secretary concurs with the 
                evidence provided by the State.
          (18) Maintenance of state financial support.--
                  (A) In general.--The State does not reduce 
                the amount of State financial support for 
                special education and related services for 
                children with disabilities, or otherwise made 
                available because of the excess costs of 
                educating those children, below the amount of 
                that support for the preceding fiscal year.
                  (B) Reduction of funds for failure to 
                maintain support.--The Secretary shall reduce 
                the allocation of funds under section 611 for 
                any fiscal year following the fiscal year in 
                whichthe State fails to comply with the 
requirement of subparagraph (A) by the same amount by which the State 
fails to meet the requirement.
                  (C) Waivers for exceptional or uncontrollable 
                circumstances.--The Secretary may waive the 
                requirement of subparagraph (A) for a State, 
                for 1 fiscal year at a time, if the Secretary 
                determines that--
                          (i) granting a waiver would be 
                        equitable due to exceptional or 
                        uncontrollable circumstances such as a 
                        natural disaster or a precipitous and 
                        unforeseen decline in the financial 
                        resources of the State; or
                          (ii) the State meets the standard in 
                        paragraph (17)(C) for a waiver of the 
                        requirement to supplement, and not to 
                        supplant, funds received under this 
                        part.
                  (D) Subsequent years.--If, for any year, a 
                State fails to meet the requirement of 
                subparagraph (A), including any year for which 
                the State is granted a waiver under 
                subparagraph (C), the financial support 
                required of the State in future years under 
                subparagraph (A) shall be the amount that would 
                have been required in the absence of that 
                failure and not the reduced level of the 
                State's support.
          (19) Public participation.--Prior to the adoption of 
        any policies and procedures needed to comply with this 
        section (including any amendments to such policies and 
        procedures), the State ensures that there are public 
        hearings, adequate notice of the hearings, and an 
        opportunity for comment available to the general 
        public, including individuals with disabilities and 
        parents of children with disabilities.
          (20) State advisory panel.--
                  (A) In general.--The State has established 
                and maintains an advisory panel for the purpose 
                of providing policy guidance with respect to 
                special education and related services for 
                children with disabilities in the State.
                  (B) Membership.--Such advisory panel shall 
                consist of members appointed by the Governor, 
                or any other official authorized under State 
                law to make such appointments, that is 
                representative of the State population and that 
                is composed of individuals involved in, or 
                concerned with, the education of children with 
                disabilities, including--
                          (i) parents of children with 
                        disabilities ages birth through 26;
                          (ii) individuals with disabilities;
                          (iii) teachers;
                          (iv) representatives of institutions 
                        of higher education that prepare 
                        special education and related services 
                        personnel;
                          (v) State and local education 
                        officials;
                          (vi) administrators of programs for 
                        children with disabilities;
                          (vii) representatives of other State 
                        agencies involved in the financing or 
                        delivery of related services to 
                        children with disabilities;
                          (viii) representatives of private 
                        schools and public charter schools;
                          (ix) at least 1 representative of a 
                        vocational, community, or business 
                        organization concerned with the 
                        provision of transition services to 
                        children with disabilities; and
                          (x) representatives from the State 
                        juvenile and adult corrections 
                        agencies.
                  (C) Special rule.--A majority of the members 
                of the panel shall be individuals with 
                disabilities ages birth through 26 or parents 
                of such individuals.
                  (D) Duties.--The advisory panel shall--
                          (i) advise the State educational 
                        agency of unmet needs within the State 
                        in the education of children with 
                        disabilities;
                          (ii) comment publicly on any rules or 
                        regulations proposed by the State 
                        regarding the education of children 
                        with disabilities;
                          (iii) advise the State educational 
                        agency in developing evaluations and 
                        reporting on data to the Secretary 
                        under section 618;
                          (iv) advise the State educational 
                        agency in developing corrective action 
                        plans to address findings identified in 
                        Federal monitoring reports under this 
                        part; and
                          (v) advise the State educational 
                        agency in developing and implementing 
                        policies relating to the coordination 
                        of services for children with 
                        disabilities.
          (21) Suspension and expulsion rates.--
                  (A) In general.--The State educational agency 
                examines data to determine if significant 
                discrepancies are occurring in the rate of 
                long-term suspensions and expulsions of 
                children with disabilities--
                          (i) among local educational agencies 
                        in the State; or
                          (ii) compared to such rates for 
                        nondisabled children within such 
                        agencies.
                  (B) Review and revision of policies.--If such 
                discrepancies are occurring, the State 
                educational agency reviews and, if appropriate, 
                revises (or requires the affected State or 
                local educational agency to revise) its 
                policies, procedures, and practices relating to 
                the development and implementation of IEPs, the 
                use of behavioral interventions, and procedural 
                safeguards, to ensure that such policies, 
                procedures, and practices comply with this Act.
          (22) Access to instructional materials.--
                  (A) In general.--The State adopts the 
                national Instructional Materials Accessibility 
                Standard described in section 675(a) for the 
                purposes of providing instructional materials 
                to blind persons or other persons with print 
                disabilities in a timely manner after the 
                publication of the standard in the Federal 
                Register.
                  (B) Preparation and delivery of files.--Not 
                later than 2 years after the date of enactment 
                of the Individuals with Disabilities Education 
                Improvement Act of 2003, a State educational 
                agency, as part of any print instructional 
                materials adoption process, procurement 
                contract, or other practice or instrument used 
                for purchase of print instructional materials, 
                enters into a written contract with the 
                publisher of the print instructional materials 
                to--
                          (i) prepare, and on or before 
                        delivery of the print instructional 
                        materials, provide to the National 
                        Instructional Materials Access Center, 
                        established pursuant to section 675(b), 
                        electronic files containing the 
                        contents of the print instructional 
                        materials using the Instructional 
                        Materials Accessibility Standard; or
                          (ii) purchase instructional materials 
                        from a publisher that are produced in 
                        or may be rendered in the specialized 
                        formats described in section 
                        675(a)(4)(C).
                  (C) Assistive technology.--In carrying out 
                subparagraph (B), the State educational agency, 
                to the maximum extent possible, shall work 
                collaboratively with the State agency 
                responsible for assistive technology programs.
  (b) State Educational Agency as Provider of Free Appropriate 
Public Education or Direct Services.--If the State educational 
agency provides free appropriate public education to children 
with disabilities, or provides direct services to such 
children, such agency--
          (1) shall comply with any additional requirements of 
        section 613(a), as if such agency were a local 
        educational agency; and
          (2) may use amounts that are otherwise available to 
        such agency under this part to serve those children 
        without regard to section 613(a)(2)(A)(i) (relating to 
        excess costs).
  (c) Exception for Prior State Plans.--
          (1) In general.--If a State has on file with the 
        Secretary policies and procedures that demonstrate that 
        such State meets any requirement of subsection (a), 
        including any policies and procedures filed under this 
        part as in effect before the effective date of the 
        Individuals with Disabilities Education Improvement Act 
        of 2003, the Secretary shall consider such State to 
        have met such requirement for purposes of receiving a 
        grant under this part.
          (2) Modifications made by state.--Subject to 
        paragraph (3), an application submitted by a State in 
        accordance with this section shall remain in effect 
        until the State submits to the Secretary such 
        modifications as the State determines necessary. This 
        section shall apply to a modification to an application 
        to the same extent and in the same manner as this 
        section applies to the original plan.
          (3) Modifications required by the secretary.--If, 
        after the effective date of the Individuals with 
        Disabilities Education Improvement Act of 2003, the 
        provisions of this Act are amended (or the regulations 
        developed to carry out this Act are amended), there is 
        a new interpretation of this Act by a Federal court or 
        a State's highest court, or there is an official 
        finding of noncompliance with Federal law or 
        regulations, then the Secretary may require a State to 
        modify its application only to the extent necessary to 
        ensure the State's compliance with this part.
  (d) Approval by the Secretary.--
          (1) In general.--If the Secretary determines that a 
        State is eligible to receive a grant under this part, 
        the Secretary shall notify the State of that 
        determination.
          (2) Notice and hearing.--The Secretary shall not make 
        a final determination that a State is not eligible to 
        receive a grant under this part until after providing 
        the State--
                  (A) with reasonable notice; and
                  (B) with an opportunity for a hearing.
  (e) Assistance Under Other Federal Programs.--Nothing in this 
title permits a State to reduce medical and other assistance 
available, or to alter eligibility, under titles V and XIX of 
the Social Security Act with respect to the provision of a free 
appropriate public education for children with disabilities in 
the State.
  (f) By-Pass for Children in Private Schools.--
          (1) In general.--If, on the date of enactment of the 
        Education of the Handicapped Act Amendments of 1983, a 
        State educational agency was prohibited by law from 
        providing for the equitable participation in special 
        programs of children with disabilities enrolled in 
        private elementary schools and secondary schools as 
        required by subsection (a)(10)(A), or if the Secretary 
        determines that a State educational agency, local 
        educational agency, or other entity has substantially 
        failed or is unwilling to provide for such equitable 
        participation, then the Secretary shall, 
        notwithstanding such provision of law, arrange for the 
        provision of services to such children through 
        arrangements which shall be subject to the requirements 
        of such subsection.
          (2) Payments.--
                  (A) Determination of amounts.--If the 
                Secretary arranges for services pursuant to 
                this subsection, the Secretary, after 
                consultation with the appropriate public and 
                private school officials, shall pay to the 
                provider of such services for a fiscal year an 
                amount per child that does not exceed the 
                amount determined by dividing--
                          (i) the total amount received by the 
                        State under this part for such fiscal 
                        year; by
                          (ii) the number of children with 
                        disabilities served in the prior year, 
                        as reported to the Secretary by the 
                        State under section 618.
                  (B) Withholding of certain amounts.--Pending 
                final resolution of any investigation or 
                complaint that may result in a determination 
                under this subsection, the Secretary may 
                withhold from the allocation of the affected 
                State educational agency the amount the 
                Secretary estimates will be necessary to pay 
                the cost of services described in subparagraph 
                (A).
                  (C) Period of payments.--The period under 
                which payments are made under subparagraph (A) 
                shall continue until the Secretary determines 
                that there will no longer be any failure or 
                inability on the part of the State educational 
                agency to meet the requirements of subsection 
                (a)(10)(A).
          (3) Notice and hearing.--
                  (A) In general.--The Secretary shall not take 
                any final action under this subsection until 
                the State educational agency affected by such 
                action has had an opportunity, for at least 45 
                days after receiving written notice thereof, to 
                submit written objections and to appear before 
                the Secretary or the Secretary's designee to 
                show cause why such action should not be taken.
                  (B) Review of action.--If a State educational 
                agency is dissatisfied with the Secretary's 
                final action after a proceeding under 
                subparagraph (A), such agency may, not later 
                than 60 days after notice of such action, file 
                with the United States court of appeals for the 
                circuit in which such State is located a 
                petition for review of that action. A copy of 
                the petition shall be forthwith transmitted by 
                the clerk of the court to the Secretary. The 
                Secretary thereupon shall file in the court the 
                record of the proceedings on which the 
                Secretary based the Secretary's action, as 
                provided in section 2112 of title 28, United 
                States Code.
                  (C) Review of findings of fact.--The findings 
                of fact by the Secretary, if supported by 
                substantial evidence, shall be conclusive, but 
                the court, for good cause shown, may remand the 
                case to the Secretary to take further evidence, 
                and the Secretary may thereupon make new or 
                modified findings of fact and may modify the 
                Secretary's previous action, and shall file in 
                the court the record of the further 
                proceedings. Such new or modified findings of 
                fact shall likewise be conclusive if supported 
                by substantial evidence.
                  (D) Jurisdiction of court of appeals; review 
                by united states supreme court.--Upon the 
                filing of a petition under subparagraph (B), 
                the United States court of appeals shall have 
                jurisdiction to affirm the action of the 
                Secretary or to set it aside, in whole or in 
                part. The judgment of the court shall be 
                subject to review by the Supreme Court of the 
                United States upon certiorari or certification 
                as provided in section 1254 of title 28, United 
                States Code.

SEC. 613. LOCAL EDUCATIONAL AGENCY ELIGIBILITY.

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

           *       *       *       *       *       *       *


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

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

SEC. 615. PROCEDURAL SAFEGUARDS.

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