Individuals with Disabilities Education Act Text

[[Page 118 STAT. 2647]]

Public Law 108-446

108th Congress

An Act

.

To reauthorize the Individuals with Disabilities Education Act, and for

other purposes. <<NOTE: Dec. 3, 2004 - [H.R. 1350]>>

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled, <<NOTE: Individuals with

Disabilities Education Improvement Act of 2004. 20 USC 1400 note.>>

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Individuals with Disabilities

Education Improvement Act of 2004''.

SEC. 2. ORGANIZATION OF THE ACT.

This Act is organized into the following titles:

Title I--Amendments to the Individuals With Disabilities

Education Act.

Title II--National Center for Special Education Research.

Title III--Miscellaneous Provisions.

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

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

Parts A through D of the Individuals with Disabilities Education Act

(20 U.S.C. 1400 et seq.) are amended to read as follows:

``PART A--GENERAL PROVISIONS

``SEC. 601. <<NOTE: 20 USC 1400.>> SHORT TITLE; TABLE OF CONTENTS;

FINDINGS; PURPOSES.

``(a) Short Title.--This title may be cited as the `Individuals with

Disabilities Education Act'.

``(b) Table of Contents.--The table of contents for this title 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. Paperwork reduction.

``Sec. 610. Freely associated states.

[[Page 118 STAT. 2648]]

``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 development grants

``Sec. 651. Purpose; definition of personnel; program authority.

``Sec. 652. Eligibility and collaborative process.

``Sec. 653. Applications.

``Sec. 654. Use of funds.

``Sec. 655. Authorization of appropriations.

``subpart 2--personnel preparation, technical assistance, model

demonstration projects, and dissemination of information

``Sec. 661. Purpose; definition of eligible entity.

``Sec. 662. Personnel development to improve services and

results for children with disabilities.

``Sec. 663. Technical assistance, demonstration projects,

dissemination of information, and

implementation of scientifically based

research.

``Sec. 664. Studies and evaluations.

``Sec. 665. Interim alternative educational settings, behavioral

supports, and systemic school interventions.

``Sec. 667. Authorization of appropriations.

``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. Authorization of appropriations.

``subpart 4--general provisions

``Sec. 681. Comprehensive plan for subparts 2 and 3.

``Sec. 682. Administrative provisions.

``(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

[[Page 118 STAT. 2649]]

policy of ensuring equality of opportunity, full participation,

independent living, and economic self-sufficiency for

individuals with disabilities.

``(2) Before the date of 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 title

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 title 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) Almost 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 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 title 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 such

children 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

[[Page 118 STAT. 2650]]

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

early intervening services to reduce the need to label

children as disabled in order to address the learning

and behavioral needs of such children;

``(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 diverse society.

``(B) America's ethnic profile is rapidly changing. In 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 in order

to provide appropriate role models with sufficient knowledge to

address the special education needs of these students.

``(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) Such discrepancies pose a special challenge for

special education in the referral of, assessment of, and

provision of services for, our Nation's students from non-

English language backgrounds.

[[Page 118 STAT. 2651]]

``(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

White 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 full participation by minority

individuals, minority organizations, and Historically Black

Colleges and Universities in awards for grants and contracts,

boards of organizations receiving assistance under this title,

peer review panels, and training of professionals in the area of

special education is essential to obtain greater success in the

education of minority children with disabilities.

``(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 further education,

employment, and independent living;

``(B) to ensure that the rights of children with

disabilities and parents of such children are protected; and

``(C) to assist States, localities, educational service

agencies, and Federal agencies to provide for the education of

all children with disabilities;

``(2) to assist States in the implementation of a statewide,

comprehensive, coordinated, multidisciplinary, interagency

system of early intervention services for infants and toddlers

with disabilities and their families;

``(3) to ensure that educators and parents have the

necessary tools to improve educational results for children with

disabilities by supporting system improvement activities;

coordinated research and personnel preparation; coordinated

technical assistance, dissemination, and support; and technology

development and media services; and

``(4) to assess, and ensure the effectiveness of, efforts to

educate children with disabilities.

[[Page 118 STAT. 2652]]

``SEC. 602. <<NOTE: 20 USC 1401.>> DEFINITIONS.

``Except as otherwise provided, in this title:

``(1) Assistive technology device.--

``(A) In general.--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.

``(B) Exception.--The term does not include a

medical device that is surgically implanted, or the

replacement of such device.

``(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

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 (referred to in this title 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

[[Page 118 STAT. 2653]]

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 subjects.--The term `core academic

subjects' has the meaning given the term in section 9101 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, including a

public elementary charter 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;

``(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;

[[Page 118 STAT. 2654]]

``(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.--

``(A) In general.--For any special education

teacher, the term `highly qualified' has the meaning

given the term in section 9101 of the Elementary and

Secondary Education Act of 1965, except that such term

also--

``(i) includes the requirements described in

subparagraph (B); and

``(ii) includes the option for teachers to

meet the requirements of section 9101 of such Act

by meeting the requirements of subparagraph (C) or

(D).

``(B) Requirements for special education teachers.--

When used with respect to any public elementary school

or secondary school special education teacher teaching

in a State, such term means that--

``(i) the teacher has obtained full State

certification as a special education teacher

(including certification obtained through

alternative routes to certification), or passed

the State special education teacher 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 special

education certification or licensure requirements

waived on an emergency, temporary, or provisional

basis; and

``(iii) the teacher holds at least a

bachelor's degree.

``(C) Special education teachers teaching to

alternate achievement standards.--When used with respect

to a special education teacher who teaches core academic

subjects exclusively to children who are assessed

against alternate achievement standards established

under the regulations promulgated under section

1111(b)(1) of the Elementary and Secondary Education Act

of 1965, such term means the teacher, whether new or not

new to the profession, may either--

``(i) meet the applicable requirements of

section 9101 of such Act for any elementary,

middle, or secondary school teacher who is new or

not new to the profession; or

``(ii) meet the requirements of subparagraph

(B) or (C) of section 9101(23) of such Act as

applied to an elementary school teacher, or, in

the case of instruction above the elementary

level, has subject matter knowledge appropriate to

the level of instruction being provided, as

determined by the State, needed to effectively

teach to those standards.

``(D) Special education teachers teaching multiple

subjects.--When used with respect to a special education

[[Page 118 STAT. 2655]]

teacher who teaches 2 or more core academic subjects

exclusively to children with disabilities, such term

means that the teacher may either--

``(i) meet the applicable requirements of

section 9101 of the Elementary and Secondary

Education Act of 1965 for any elementary, middle,

or secondary school teacher who is new or not new

to the profession;

``(ii) in the case of a teacher who is not new

to the profession, demonstrate competence in all

the core academic subjects in which the teacher

teaches in the same manner as is required for an

elementary, middle, or secondary school teacher

who is not new to the profession under section

9101(23)(C)(ii) of such Act, which may include a

single, high objective uniform State standard of

evaluation covering multiple subjects; or

``(iii) in the case of a new special education

teacher who teaches multiple subjects and who is

highly qualified in mathematics, language arts, or

science, demonstrate competence in the other core

academic subjects in which the teacher teaches in

the same manner as is required for an elementary,

middle, or secondary school teacher under section

9101(23)(C)(ii) of such Act, which may include a

single, high objective uniform State standard of

evaluation covering multiple subjects, not later

than 2 years after the date of employment.

``(E) Rule of construction.--Notwithstanding any

other individual right of action that a parent or

student may maintain under this part, nothing in this

section or part shall be construed to create a right of

action on behalf of an individual student or class of

students for the failure of a particular State

educational agency or local educational agency employee

to be highly qualified.

``(F) Definition for purposes of the esea.--A

teacher who is highly qualified under this paragraph

shall be considered highly qualified for purposes of the

Elementary and Secondary Education Act of 1965.

``(11) Homeless children.--The term `homeless children' has

the meaning given the term `homeless children and youths' in

section 725 of the McKinney-Vento Homeless Assistance Act (42

U.S.C. 11434a).

``(12) Indian.--The term `Indian' means an individual who is

a member of an Indian tribe.

``(13) 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 (43 U.S.C. 1601 et seq.)).

``(14) Individualized education program; IEP.--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).

``(15) Individualized family service plan.--The term

`individualized family service plan' has the meaning given the

term in section 636.

[[Page 118 STAT. 2656]]

``(16) Infant or toddler with a disability.--The term

`infant or toddler with a disability' has the meaning given the

term in section 632.

``(17) Institution of higher education.--The term

`institution of higher education'--

``(A) has the meaning given the term in section 101

of the Higher Education Act of 1965; and

``(B) also includes any community college receiving

funding from the Secretary of the Interior under the

Tribally Controlled College or University Assistance Act

of 1978.

``(18) Limited english proficient.--The term `limited

English proficient' has the meaning given the term in section

9101 of the Elementary and Secondary Education Act of 1965.

``(19) Local educational agency.--

``(A) In general.--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) Educational service agencies and other public

institutions or agencies.--The term includes--

``(i) an educational service agency; and

``(ii) any other public institution or agency

having administrative control and direction of a

public elementary school or secondary school.

``(C) BIA funded schools.--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 title 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.

``(20) Native language.--The term `native language', when

used with respect to an individual who is limited English

proficient, 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.

``(21) 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.

``(22) Outlying area.--The term `outlying area' means the

United States Virgin Islands, Guam, American Samoa, and the

Commonwealth of the Northern Mariana Islands.

[[Page 118 STAT. 2657]]

``(23) Parent.--The term `parent' means--

``(A) a natural, adoptive, or foster parent of a

child (unless a foster parent is prohibited by State law

from serving as a parent);

``(B) a guardian (but not the State if the child is

a ward of the State);

``(C) an individual acting in the place of a natural

or adoptive parent (including a grandparent, stepparent,

or other relative) with whom the child lives, or an

individual who is legally responsible for the child's

welfare; or

``(D) except as used in sections 615(b)(2) and

639(a)(5), an individual assigned under either of those

sections to be a surrogate parent.

``(24) Parent organization.--The term `parent organization'

has the meaning given the term in section 671(g).

``(25) Parent training and information center.--The term

`parent training and information center' means a center assisted

under section 671 or 672.

``(26) Related services.--

``(A) In general.--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 nurse services designed to

enable a child with a disability to receive a free

appropriate public education as described in the

individualized education program of the child,

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.

``(B) Exception.--The term does not include a

medical device that is surgically implanted, or the

replacement of such device.

``(27) Secondary school.--The term `secondary school' means

a nonprofit institutional day or residential school, including a

public secondary charter school, that provides secondary

education, as determined under State law, except that it does

not include any education beyond grade 12.

``(28) Secretary.--The term `Secretary' means the Secretary

of Education.

``(29) 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.

``(30) 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

[[Page 118 STAT. 2658]]

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.

``(31) 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.

``(32) 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.

``(33) 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).

``(34) Transition services.--The term `transition services'

means a coordinated set of activities for a child with a

disability 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 education, 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.

``(35) Universal design.--The term `universal design' has

the meaning given the term in section 3 of the Assistive

Technology Act of 1998 (29 U.S.C. 3002).

``(36) Ward of the state.--

``(A) In general.--The term `ward of the State'

means a child who, as determined by the State where the

child resides, is a foster child, is a ward of the

State, or is in the custody of a public child welfare

agency.

``(B) Exception.--The term does not include a foster

child who has a foster parent who meets the definition

of a parent in paragraph (23).

[[Page 118 STAT. 2659]]

``SEC. 603. <<NOTE: 20 USC 1402.>> 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 the Department for administering and carrying out this title

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 title.

``SEC. 604. <<NOTE: 20 USC 1403.>> 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 title.

``(b) Remedies.--In a suit against a State for a violation of this

title, 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. <<NOTE: 20 USC 1404.>> ACQUISITION OF EQUIPMENT;

CONSTRUCTION OR ALTERATION OF FACILITIES.

``(a) In General.--If the Secretary determines that a program

authorized under this title 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. <<NOTE: 20 USC 1405.>> EMPLOYMENT OF INDIVIDUALS WITH

DISABILITIES.

``The Secretary shall ensure that each recipient of assistance under

this title makes positive efforts to employ and advance in employment

qualified individuals with disabilities in programs assisted under this

title.

``SEC. 607. <<NOTE: 20 USC 1406.>> REQUIREMENTS FOR PRESCRIBING

REGULATIONS.

``(a) In General.--In carrying out the provisions of this title, the

Secretary shall issue regulations under this title only to the extent

that such regulations are necessary to ensure that there is compliance

with the specific requirements of this title.

[[Page 118 STAT. 2660]]

``(b) Protections Provided to Children.--The Secretary may not

implement, or publish in final form, any regulation prescribed pursuant

to this title that--

``(1) violates or contradicts any provision of this title;

or

``(2) procedurally or substantively lessens the protections

provided to children with disabilities under this title, 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 Congress in legislation.

``(c) Public Comment Period.--The Secretary shall provide a public

comment period of not less than 75 days on any regulation proposed under

part B or part C 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 title; or

``(2) establish a rule that is required for compliance with,

and eligibility under, this title 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 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 Title.--

``(1) <<NOTE: Federal Register, publication.>> 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 title or

the regulations implemented pursuant to this title.

``(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.

[[Page 118 STAT. 2661]]

``SEC. 608. <<NOTE: 20 USC 1407.>> STATE ADMINISTRATION.

``(a) Rulemaking.--Each State that receives funds under this title

shall--

``(1) ensure that any State rules, regulations, and policies

relating to this title conform to the purposes of this title;

``(2) identify in writing to local educational agencies

located in the State and the Secretary any such rule,

regulation, or policy as a State-imposed requirement that is not

required by this title and Federal regulations; and

``(3) minimize the number of rules, regulations, and

policies to which the local educational agencies and schools

located in the State are subject under this title.

``(b) Support and Facilitation.--State rules, regulations, and

policies under this title shall support and facilitate local educational

agency and school-level system improvement designed to enable children

with disabilities to meet the challenging State student academic

achievement standards.

``SEC. 609. <<NOTE: 20 USC 1408.>> PAPERWORK REDUCTION.

``(a) Pilot Program.--

``(1) Purpose.--The purpose of this section is to provide an

opportunity for States to identify ways to reduce paperwork

burdens and other administrative duties that are directly

associated with the requirements of this title, in order to

increase the time and resources available for instruction and

other activities aimed at improving educational and functional

results for children with disabilities.

``(2) Authorization.--

``(A) In general.--In order to carry out the purpose

of this section, the Secretary is authorized to grant

waivers of statutory requirements of, or regulatory

requirements relating to, part B for a period of time

not to exceed 4 years with respect to not more than 15

States based on proposals submitted by States to reduce

excessive paperwork and noninstructional time burdens

that do not assist in improving educational and

functional results for children with disabilities.

``(B) Exception.--The Secretary shall not waive

under this section any statutory requirements of, or

regulatory requirements relating to, applicable civil

rights requirements.

``(C) Rule of construction.--Nothing in this section

shall be construed to--

``(i) affect the right of a child with a

disability to receive a free appropriate public

education under part B; and

``(ii) permit a State or local educational

agency to waive procedural safeguards under

section 615.

``(3) Proposal.--

``(A) In general.--A State desiring to participate

in the program under this section shall submit a

proposal to the Secretary at such time and in such

manner as the Secretary may reasonably require.

``(B) Content.--The proposal shall include--

``(i) a list of any statutory requirements of,

or regulatory requirements relating to, part B

that the State

[[Page 118 STAT. 2662]]

desires the Secretary to waive, in whole or in

part; and

``(ii) a list of any State requirements that

the State proposes to waive or change, in whole or

in part, to carry out a waiver granted to the

State by the Secretary.

``(4) Termination of waiver.--The Secretary shall terminate

a State's waiver under this section if the Secretary determines

that the State--

``(A) needs assistance under section

616(d)(2)(A)(ii) and that the waiver has contributed to

or caused such need for assistance;

``(B) needs intervention under section

616(d)(2)(A)(iii) or needs substantial intervention

under section 616(d)(2)(A)(iv); or

``(C) failed to appropriately implement its waiver.

``(b) Report.--Beginning 2 years after the date of enactment of the

Individuals with Disabilities Education Improvement Act of 2004, the

Secretary shall include in the annual report to Congress submitted

pursuant to section 426 of the Department of Education Organization Act

information related to the effectiveness of waivers granted under

subsection (a), including any specific recommendations for broader

implementation of such waivers, in--

``(1) reducing--

``(A) the paperwork burden on teachers, principals,

administrators, and related service providers; and

``(B) noninstructional time spent by teachers in

complying with part B;

``(2) enhancing longer-term educational planning;

``(3) improving positive outcomes for children with

disabilities;

``(4) promoting collaboration between IEP Team members; and

``(5) ensuring satisfaction of family members.

``SEC. 610. <<NOTE: 20 USC 1409.>> FREELY ASSOCIATED STATES.

``The Republic of the Marshall Islands, the Federated States of

Micronesia, and the Republic of Palau shall continue to be eligible for

competitive grants administered by the Secretary under this title to the

extent that such grants continue to be available to States and local

educational agencies under this title.

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

``SEC. 611. <<NOTE: 20 USC 1411.>> AUTHORIZATION; ALLOTMENT; USE OF

FUNDS; AUTHORIZATION OF APPROPRIATIONS.

``(a) Grants to States.--

``(1) Purpose of grants.--The Secretary shall make grants to

States, outlying areas, and freely associated States, 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 of the grant a

State may receive under this section--

``(A) for fiscal years 2005 and 2006 is--

[[Page 118 STAT. 2663]]

``(i) 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

``(ii) 40 percent of the average per-pupil

expenditure in public elementary schools and

secondary schools in the United States; and

``(B) for fiscal year 2007 and subsequent fiscal

years is--

``(i) the number of children with disabilities

in the 2004-2005 school year in the State who

received 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

``(ii) 40 percent of the average per-pupil

expenditure in public elementary schools and

secondary schools in the United States; adjusted

by

``(iii) the rate of annual change in the sum

of--

``(I) 85 percent of such State's

population described in subsection

(d)(3)(A)(i)(II); and

``(II) 15 percent of such State's

population described in subsection

(d)(3)(A)(i)(III).

``(b) Outlying Areas and Freely Associated States; Secretary of the

Interior.--

``(1) Outlying areas and freely associated states.--

``(A) 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--

``(i) to provide assistance to the outlying

areas in accordance with their respective

populations of individuals aged 3 through 21; and

``(ii) 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 2004.

``(B) 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.

``(C) Definition.--In this paragraph, the term

`freely associated States' means the Republic of the

Marshall Islands, the Federated States of Micronesia,

and the Republic of Palau.

``(2) Secretary of the interior.--From the amount

appropriated for any fiscal year under subsection (i), the

Secretary shall reserve 1.226 percent to provide assistance to

the Secretary of the Interior in accordance with subsection (h).

``(c) Technical Assistance.--

[[Page 118 STAT. 2664]]

``(1) In general.--The Secretary may reserve not more than

1/2 of 1 percent of the amounts appropriated under this part

for each fiscal year to provide technical assistance activities

authorized under section 616(i).

``(2) Maximum amount.--The maximum amount the Secretary may

reserve under paragraph (1) for any fiscal year is $25,000,000,

cumulatively adjusted by 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.

``(d) Allocations to States.--

``(1) In general.--After reserving funds for technical

assistance, 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:

[[Page 118 STAT. 2665]]

``(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.

[[Page 118 STAT. 2666]]

``(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 for each fiscal

year not more than the maximum amount the State

was eligible to reserve for State administration

under this section for fiscal year 2004 or

$800,000 (adjusted in accordance with subparagraph

(B)), whichever is greater; and

``(ii) each outlying area may reserve for each

fiscal year not more than 5 percent of the amount

the outlying area receives under subsection (b)(1)

for the fiscal year or $35,000, whichever is

greater.

``(B) Cumulative annual adjustments.--For each

fiscal year beginning with fiscal year 2005, the

Secretary shall cumulatively adjust--

``(i) the maximum amount the State was

eligible to reserve for State administration under

this part for fiscal year 2004; and

``(ii) $800,000,

by 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) 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.

``(D) 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 such part.

``(2) Other state-level activities.--

``(A) State-level activities.--

``(i) In general.--Except as provided in

clause (iii), for the purpose of carrying out

State-level activities, each State may reserve for

each of the fiscal years 2005 and 2006 not more

than 10 percent from the amount of the State's

allocation under subsection (d) for each of the

fiscal years 2005 and 2006, respectively. For

fiscal year 2007 and each subsequent fiscal

[[Page 118 STAT. 2667]]

year, the State may reserve the maximum amount the

State was eligible to reserve under the preceding

sentence for fiscal year 2006 (cumulatively

adjusted by 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).

``(ii) Small state adjustment.--

Notwithstanding clause (i) and except as provided

in clause (iii), in the case of a State for which

the maximum amount reserved for State

administration is not greater than $850,000, the

State may reserve for the purpose of carrying out

State-level activities for each of the fiscal

years 2005 and 2006, not more than 10.5 percent

from the amount of the State's allocation under

subsection (d) for each of the fiscal years 2005

and 2006, respectively. For fiscal year 2007 and

each subsequent fiscal year, such State may

reserve the maximum amount the State was eligible

to reserve under the preceding sentence for fiscal

year 2006 (cumulatively adjusted by 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).

``(iii) Exception.--If a State does not

reserve funds under paragraph (3) for a fiscal

year, then--

``(I) in the case of a State that is

not described in clause (ii), for fiscal

year 2005 or 2006, clause (i) shall be

applied by substituting `9.0 percent'

for `10 percent'; and

``(II) in the case of a State that

is described in clause (ii), for fiscal

year 2005 or 2006, clause (ii) shall be

applied by substituting `9.5 percent'

for `10.5 percent'.

``(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 process required by section 615(e),

including providing for the cost of mediators and

support personnel.

``(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 appropriate mental health services

for children with disabilities.

[[Page 118 STAT. 2668]]

``(iv) To improve the use of technology in the

classroom by children with disabilities to enhance

learning.

``(v) To support the use of technology,

including technology with universal design

principles and assistive technology devices, to

maximize accessibility to the general education

curriculum for children with disabilities.

``(vi) Development and implementation of

transition programs, including coordination of

services with agencies involved in supporting the

transition of children with disabilities to

postsecondary 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

with disabilities who have been expelled from

school, and services for children with

disabilities in correctional facilities, children

enrolled in State-operated or State-supported

schools, and children with disabilities 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.

``(xi) To provide technical assistance to

schools and local educational agencies, and direct

services, including supplemental educational

services as defined in 1116(e) of the Elementary

and Secondary Education Act of 1965 to children

with disabilities, in schools or local educational

agencies identified for improvement under section

1116 of the Elementary and Secondary Education Act

of 1965 on the sole basis of the assessment

results of the disaggregated subgroup of children

with disabilities, including providing

professional development to special and regular

education teachers, who teach children with

disabilities, based on scientifically based

research to improve educational instruction, in

order to improve academic achievement to meet or

exceed the objectives established by the State

under section 1111(b)(2)(G) the Elementary and

Secondary Education Act of 1965.

``(3) Local educational agency risk pool.--

``(A) In general.--

``(i) Reservation of funds.--For the purpose

of assisting local educational agencies (including

a charter school that is a local educational

agency or a consortium of local educational

agencies) in addressing the needs of high need

children with disabilities, each State shall have

the option to reserve for each fiscal year 10

percent of the amount of funds the State reserves

for State-level activities under paragraph

(2)(A)--

[[Page 118 STAT. 2669]]

``(I) to establish and make

disbursements from the high cost fund to

local educational agencies in accordance

with this paragraph during the first and

succeeding fiscal years of the high cost

fund; and

``(II) to support innovative and

effective ways of cost sharing by the

State, by a local educational agency, or

among a consortium of local educational

agencies, as determined by the State in

coordination with representatives from

local educational agencies, subject to

subparagraph (B)(ii).

``(ii) Definition of local educational

agency.--In this paragraph the term `local

educational agency' includes a charter school that

is a local educational agency, or a consortium of

local educational agencies.

``(B) Limitation on uses of funds.--

``(i) Establishment of high cost fund.--A

State shall not use any of the funds the State

reserves pursuant to subparagraph (A)(i), but may

use the funds the State reserves under paragraph

(1), to establish and support the high cost fund.

``(ii) Innovative and effective cost

sharing.--A State shall not use more than 5

percent of the funds the State reserves pursuant

to subparagraph (A)(i) for each fiscal year to

support innovative and effective ways of cost

sharing among consortia of local educational

agencies.

``(C) State plan for high cost fund.--

``(i) Definition.--The State educational

agency shall establish the State's definition of a

high need child with a disability, which

definition shall be developed in consultation with

local educational agencies.

``(ii) <<NOTE: Deadline.>> State plan.--The

State educational agency shall develop, not later

than 90 days after the State reserves funds under

this paragraph, annually review, and amend as

necessary, a State plan for the high cost fund.

Such State plan shall--

``(I) establish, in coordination

with representatives from local

educational agencies, a definition of a

high need child with a disability that,

at a minimum--

``(aa) addresses the

financial impact a high need

child with a disability has on

the budget of the child's local

educational agency; and

``(bb) ensures that the cost

of the high need child with a

disability is greater than 3

times the average per pupil

expenditure (as defined in

section 9101 of the Elementary

and Secondary Education Act of

1965) in that State;

``(II) establish eligibility

criteria for the participation of a

local educational agency that, at a

minimum, takes into account the number

and percentage of high need children

with disabilities served by a local

educational agency;

[[Page 118 STAT. 2670]]

``(III) develop a funding mechanism

that provides distributions each fiscal

year to local educational agencies that

meet the criteria developed by the State

under subclause (II); and

``(IV) establish an annual schedule

by which the State educational agency

shall make its distributions from the

high cost fund each fiscal year.

``(iii) <<NOTE: Deadline.>> Public

availability.--The State shall make its final

State plan publicly available not less than 30

days before the beginning of the school year,

including dissemination of such information on the

State website.

``(D) Disbursements from the high cost fund.--

``(i) In general.--Each State educational

agency shall make all annual disbursements from

the high cost fund established under subparagraph

(A)(i) in accordance with the State plan published

pursuant to subparagraph (C).

``(ii) Use of disbursements.--Each State

educational agency shall make annual disbursements

to eligible local educational agencies in

accordance with its State plan under subparagraph

(C)(ii).

``(iii) Appropriate costs.--The costs

associated with educating a high need child with a

disability under subparagraph (C)(i) are only

those costs associated with providing direct

special education and related services to such

child that are identified in such child's 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 a child with a disability to ensure

a free appropriate public education for such child.

``(F) Assurance of a free appropriate public

education.--Nothing in this paragraph 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 the

least restrictive environment pursuant to section

612(a)(5); or

``(ii) to authorize a State educational agency

or local educational agency to establish a limit

on what may be spent on the education of a child

with a disability.

``(G) Special rule for risk pool and high need

assistance programs in effect as of january 1, 2004.--

Notwithstanding the provisions of subparagraphs (A)

through (F), a State may use funds reserved pursuant to

this paragraph for implementing a placement neutral cost

sharing and reimbursement program of high need, low

incidence, catastrophic, or extraordinary aid to local

educational agencies that provides services to high need

students based on eligibility criteria for such programs

that were created not later than January 1, 2004, and

are currently in operation, if such program serves

children that meet the requirement of the definition of

a high need

[[Page 118 STAT. 2671]]

child with a disability as described in subparagraph

(C)(ii)(I).

``(H) Medicaid services not affected.--Disbursements

provided under this paragraph shall not be used to pay

costs that otherwise would be reimbursed as medical

assistance for a child with a disability under the State

medicaid program under title XIX of the Social Security

Act.

``(I) Remaining funds.--Funds reserved under

subparagraph (A) in any fiscal year but not expended in

that fiscal year pursuant to subparagraph (D) shall be

allocated to local educational agencies for the

succeeding fiscal year in the same manner as funds are

allocated to local educational agencies under subsection

(f) for the succeeding fiscal year.

``(4) Inapplicability of certain prohibitions.--A State may

use funds the State reserves under paragraphs (1) and (2)

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

title; and

``(B) will be allocated among the activities

described in this section to meet State priorities based

on input from local educational agencies.

``(6) Special rule for increased funds.--A State may use

funds the State reserves under paragraph (1)(A) as a result of

inflationary increases under paragraph (1)(B) to carry out

activities authorized under clause (i), (iii), (vii), or (viii)

of paragraph (2)(C).

``(7) 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 preliteracy, 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, or elementary

school as appropriate.

``(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.

[[Page 118 STAT. 2672]]

``(2) Procedure for allocations to local educational

agencies.--For each fiscal year for which funds are allocated to

States under subsection (d), each State shall allocate funds

under paragraph (1) as follows:

``(A) 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.

``(B) Allocation of remaining funds.--After making

allocations under subparagraph (A), the State shall--

``(i) allocate 85 percent of any remaining

funds to those local educational agencies on the

basis of the relative numbers of children enrolled

in public and private elementary schools and

secondary schools within the local educational

agency's jurisdiction; and

``(ii) allocate 15 percent of those remaining

funds to those local educational agencies in

accordance with their relative numbers of children

living in poverty, as determined by the State

educational agency.

``(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.--In this section:

``(1) Average per-pupil expenditure in public elementary

schools and secondary schools in the united states.--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 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.

``(2) State.--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.--

[[Page 118 STAT. 2673]]

``(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 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 (b)(2) for that fiscal

year. Of the amount described in the preceding

sentence--

``(i) 80 percent shall be allocated to such

schools by July 1 of that fiscal year; and

``(ii) 20 percent shall be allocated to such

schools by September 30 of that fiscal year.

``(B) Calculation of number of children.--In the

case of Indian students aged 3 to 5, inclusive, who are

enrolled in programs affiliated with the Bureau of

Indian Affairs (referred to in this subsection as the

`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 those 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 related to the requirements 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;

[[Page 118 STAT. 2674]]

``(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 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.--The Secretary shall withhold payments

under this subsection with respect to the information described

in paragraph (2) in the same manner as the Secretary withholds

payments under section 616(e)(6).

``(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 the Indian Self-Determination

and Education Assistance Act) or consortia of tribes or

tribal organizations 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 (b)(2).

``(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, tribal organization, or consortium an amount

based on the number of children with disabilities aged 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

[[Page 118 STAT. 2675]]

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 tribe or tribal organization

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 title.

Such plan shall provide for the coordination of services

benefiting those 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 educational

agencies 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)(21), 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

[[Page 118 STAT. 2676]]

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 of the

Interior'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 early

intervention services or 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--

``(1) $12,358,376,571 for fiscal year 2005;

``(2) $14,648,647,143 for fiscal year 2006;

``(3) $16,938,917,714 for fiscal year 2007;

``(4) $19,229,188,286 for fiscal year 2008;

``(5) $21,519,458,857 for fiscal year 2009;

``(6) $23,809,729,429 for fiscal year 2010;

``(7) $26,100,000,000 for fiscal year 2011; and

``(8) such sums as may be necessary for fiscal year 2012 and

each succeeding fiscal year.

``SEC. 612. <<NOTE: 20 USC 1412.>> 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--

[[Page 118 STAT. 2677]]

``(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; 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 who are homeless children or are wards of

the State and 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 title 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.--

[[Page 118 STAT. 2678]]

``(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 for services

under this title will be selected and administered so as

not to be racially or culturally discriminatory. Such

materials or procedures shall be provided and

administered in the child's native language or mode of

communication, unless it clearly is not feasible to do

so, and no single procedure shall be the sole criterion

for determining an appropriate educational program for a

child.

``(7) Evaluation.--Children with disabilities are evaluated

in accordance with subsections (a) through (c) of section 614.

``(8) Confidentiality.--Agencies in the State comply with

section 617(c) (relating to the confidentiality of records and

information).

``(9) Transition from part c to preschool programs.--

Children participating in early intervention programs assisted

under part C, and who will participate in preschool programs

assisted under this part, experience a smooth and effective

transition to those preschool programs in a manner consistent

with section 637(a)(9). 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

[[Page 118 STAT. 2679]]

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

private school children) by the local

educational agency shall be equal to a

proportionate amount of Federal funds

made available under this part.

``(II) In calculating the

proportionate amount of Federal funds,

the local educational agency, after

timely and meaningful consultation with

representatives of private schools as

described in clause (iii), shall conduct

a thorough and complete child find

process to determine the number of

parentally placed children with

disabilities attending private schools

located in the local educational agency.

``(III) Such services to parentally

placed private school children with

disabilities may be provided to the

children on the premises of private,

including religious, schools, to the

extent consistent with law.

``(IV) State and local funds may

supplement and in no case shall supplant

the proportionate amount of Federal

funds required to be expended under this

subparagraph.

``(V) Each local educational agency

shall maintain in its records and

provide to the State educational agency

the number of children evaluated under

this subparagraph, the number of

children determined to be children with

disabilities under this paragraph, and

the number of children served under this

paragraph.

``(ii) Child find requirement.--

``(I) In general.--The requirements

of paragraph (3) (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.

``(II) Equitable participation.--The

child find process shall be designed to

ensure the equitable participation of

parentally placed private school

children with disabilities 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 the agency's public

school children.

``(IV) Cost.--The cost of carrying

out this clause, including individual

evaluations, may not be considered in

determining whether a local educational

agency has met its obligations under

clause (i).

[[Page 118 STAT. 2680]]

``(V) Completion period.--Such child

find process shall be completed in a

time period comparable to that for other

students attending public schools in the

local educational agency.

``(iii) Consultation.--To ensure timely and

meaningful consultation, a local educational

agency, or where appropriate, a State educational

agency, shall consult with private school

representatives and representatives of parents of

parentally placed private school children with

disabilities during the design and development of

special education and related services for the

children, including 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 amount of Federal funds

available to serve parentally placed

private school children with

disabilities under this subparagraph,

including the determination of how the

amount was calculated;

``(III) the consultation process

among the local educational agency,

private school officials, and

representatives of parents of parentally

placed private school children with

disabilities, including how such process

will operate throughout the school year

to ensure that parentally placed private

school 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 with

disabilities, including a discussion of

types of services, including direct

services and 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 or the types of

services, whether provided directly or

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 directly or through a contract.

``(iv) Written affirmation.--When timely and

meaningful consultation as required by clause

(iii) has occurred, the local educational agency

shall obtain a written affirmation signed by the

representatives of participating private schools,

and if such representatives do not provide such

affirmation within a reasonable period of time,

the local educational agency shall

[[Page 118 STAT. 2681]]

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 submit

a complaint 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 submit a

complaint, the official shall provide

the basis of the noncompliance with this

subparagraph 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

submit a complaint to the Secretary by

providing the basis of the noncompliance

with this subparagraph 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) Directly or through

contracts.--The provision of services

pursuant to this subparagraph shall be

provided--

``(aa) by employees of a

public agency; or

``(bb) through contract by

the public agency with an

individual, association, agency,

organization, or other entity.

``(II) Secular, neutral,

nonideological.--Special education and

related services provided to parentally

placed private school children with

disabilities, 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 subparagraph, 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

title, 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.

[[Page 118 STAT. 2682]]

``(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 educational agencies

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 item

(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

[[Page 118 STAT. 2683]]

``(III) upon a judicial finding of

unreasonableness with respect to actions

taken by the parents.

``(iv) Exception.--Notwithstanding the notice

requirement in clause (iii)(I), the cost of

reimbursement--

``(I) shall not be reduced or denied

for failure to provide such notice if--

``(aa) the school prevented

the parent from providing such

notice;

``(bb) the parents had not

received notice, pursuant to

section 615, of the notice

requirement in clause (iii)(I);

or

``(cc) compliance with

clause (iii)(I) would likely

result in physical harm to the

child; and

``(II) may, in the discretion of a

court or a hearing officer, not be

reduced or denied for failure to provide

such notice if--

``(aa) the parent is

illiterate or cannot write in

English; or

``(bb) compliance with

clause (iii)(I) would likely

result in serious emotional harm

to the child.

``(11) State educational agency responsible for general

supervision.--

``(A) In general.--The State educational agency is

responsible for ensuring that--

``(i) the requirements of this part are met;

``(ii) all educational programs for children

with disabilities in the State, including all such

programs administered by any other State agency 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; and

``(iii) in carrying out this part with respect

to homeless children, the requirements of subtitle

B of title VII of the McKinney-Vento Homeless

Assistance Act (42 U.S.C. 11431 et seq.) are met.

``(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.--

[[Page 118 STAT. 2684]]

``(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(26)

relating to related services, 602(33) relating to

supplementary aids and services, and 602(34)

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

[[Page 118 STAT. 2685]]

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 qualifications.--

``(A) In general.--The State educational agency has

established and maintains qualifications 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 qualifications under

subparagraph (A) include qualifications 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

[[Page 118 STAT. 2686]]

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) Qualifications for special education

teachers.--The qualifications described in subparagraph

(A) shall ensure that each person employed as a special

education teacher in the State who teaches elementary

school, middle school, or secondary school is highly

qualified by the deadline established in section

1119(a)(2) of the Elementary and Secondary Education Act

of 1965.

``(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

paragraph 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 title, 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 dropout

rates, as well as such other factors as the State

may determine; and

``(iv) are consistent, to the extent

appropriate, with any other goals and standards

for children established by the State;

``(B) has established performance indicators the

State will use to assess progress toward achieving 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) <<NOTE: Reports.>> will annually report to the

Secretary and the public on the progress of the State,

and of children with disabilities in the State, toward

meeting the goals established under subparagraph (A),

which may include elements of the reports required under

section 1111(h) of the Elementary and Secondary

Education Act of 1965.

``(16) Participation in assessments.--

``(A) In general.--All children with disabilities

are included in all general State and districtwide

assessment programs, including assessments described

under section

[[Page 118 STAT. 2687]]

1111 of the Elementary and Secondary Education Act of

1965, with appropriate accommodations and 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 (A) with

accommodations 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 standards

and challenging student academic

achievement standards; and

``(II) if the State has adopted

alternate academic achievement standards

permitted under the regulations

promulgated to carry out 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 alternate 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.

[[Page 118 STAT. 2688]]

``(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 which the State fails to comply with

the requirement of subparagraph (A) by the same amount

by which the State fails to meet the requirement.

``(C) Waivers for exceptional or uncontrollable

circumstances.--The Secretary may waive the requirement

of subparagraph (A) for a State, for 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

[[Page 118 STAT. 2689]]

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) Rule of construction.--In complying with paragraphs

(17) and (18), a State may not use funds paid to it under this

part to satisfy State-law mandated funding obligations to local

educational agencies, including funding based on student

attendance or enrollment, or inflation.

``(21) State advisory panel.--

``(A) In general.--The State has established and

maintains an advisory panel for the purpose of providing

policy guidance with respect to special education and

related services for children with disabilities in the

State.

``(B) Membership.--Such advisory panel shall consist

of members appointed by the Governor, or any other

official authorized under State law to make such

appointments, be representative of the State population,

and be 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,

including officials who carry out activities under

subtitle B of title VII of the McKinney-Vento

Homeless Assistance Act (42 U.S.C. 11431 et seq.);

``(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) not less than 1 representative of a

vocational, community, or business organization

concerned with the provision of transition

services to children with disabilities;

``(x) a representative from the State child

welfare agency responsible for foster care; and

``(xi) representatives from the State juvenile

and adult corrections agencies.

``(C) Special rule.--A majority of the members of

the panel shall be individuals with disabilities or

parents of children with disabilities (ages birth

through 26).

``(D) Duties.--The advisory panel shall--

[[Page 118 STAT. 2690]]

``(i) advise the State educational agency of

unmet needs within the State in the education of

children with disabilities;

``(ii) comment publicly on any rules or

regulations proposed by the State regarding the

education of children with disabilities;

``(iii) advise the State educational agency in

developing evaluations and reporting on data to

the Secretary under section 618;

``(iv) advise the State educational agency in

developing corrective action plans to address

findings identified in Federal monitoring reports

under this part; and

``(v) advise the State educational agency in

developing and implementing policies relating to

the coordination of services for children with

disabilities.

``(22) Suspension and expulsion rates.--

``(A) In general.--The State educational agency

examines data, including data disaggregated by race and

ethnicity, to determine if significant discrepancies are

occurring in the rate of long-term suspensions and

expulsions of children with disabilities--

``(i) among local educational agencies in the

State; or

``(ii) compared to such rates for nondisabled

children within such agencies.

``(B) Review and revision of policies.--If such

discrepancies are occurring, the State educational

agency reviews and, if appropriate, revises (or requires

the affected State or local educational agency to

revise) its policies, procedures, and practices relating

to the development and implementation of IEPs, the use

of positive behavioral interventions and supports, and

procedural safeguards, to ensure that such policies,

procedures, and practices comply with this title.

``(23) Access to instructional materials.--

``(A) In general.--The State adopts the National

Instructional Materials Accessibility Standard for the

purposes of providing instructional materials to blind

persons or other persons with print disabilities, in a

timely manner after the publication of the National

Instructional Materials Accessibility Standard in the

Federal Register.

``(B) Rights of state educational agency.--Nothing

in this paragraph shall be construed to require any

State educational agency to coordinate with the National

Instructional Materials Access Center. If a State

educational agency chooses not to coordinate with the

National Instructional Materials Access Center, such

agency shall provide an assurance to the Secretary that

the agency will provide instructional materials to blind

persons or other persons with print disabilities in a

timely manner.

``(C) <<NOTE: Deadline. Contracts.>> Preparation and

delivery of files.--If a State educational agency

chooses to coordinate with the National Instructional

Materials Access Center, not later than 2 years after

the date of enactment of the Individuals with

Disabilities Education Improvement Act of 2004, the

[[Page 118 STAT. 2691]]

agency, as part of any print instructional materials

adoption process, procurement contract, or other

practice or instrument used for purchase of print

instructional materials, shall enter into a written

contract with the publisher of the print instructional

materials to--

``(i) require the publisher to prepare and, on

or before delivery of the print instructional

materials, provide to the National Instructional

Materials Access Center electronic files

containing the contents of the print instructional

materials using the National Instructional

Materials Accessibility Standard; or

``(ii) purchase instructional materials from

the publisher that are produced in, or may be

rendered in, specialized formats.

``(D) Assistive technology.--In carrying out this

paragraph, the State educational agency, to the maximum

extent possible, shall work collaboratively with the

State agency responsible for assistive technology

programs.

``(E) Definitions.--In this paragraph:

``(i) National instructional materials access

center.--The term `National Instructional

Materials Access Center' means the center

established pursuant to section 674(e).

``(ii) National instructional materials

accessibility standard.--The term `National

Instructional Materials Accessibility Standard'

has the meaning given the term in section

674(e)(3)(A).

``(iii) Specialized formats.--The term

`specialized formats' has the meaning given the

term in section 674(e)(3)(D).

``(24) Overidentification and disproportionality.--The State

has in effect, consistent with the purposes of this title and

with section 618(d), policies and procedures designed to prevent

the inappropriate overidentification or disproportionate

representation by race and ethnicity of children as children

with disabilities, including children with disabilities with a

particular impairment described in section 602.

``(25) Prohibition on mandatory medication.--

``(A) In general.--The State educational agency

shall prohibit State and local educational agency

personnel from requiring a child to obtain a

prescription for a substance covered by the Controlled

Substances Act (21 U.S.C. 801 et seq.) as a condition of

attending school, receiving an evaluation under

subsection (a) or (c) of section 614, or receiving

services under this title.

``(B) Rule of construction.--Nothing in subparagraph

(A) shall be construed to create a Federal prohibition

against teachers and other school personnel consulting

or sharing classroom-based observations with parents or

guardians regarding a student's academic and functional

performance, or behavior in the classroom or school, or

regarding the need for evaluation for special education

or related services under paragraph (3).

[[Page 118 STAT. 2692]]

``(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 2004, 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 <<NOTE: Termination date.>> 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. <<NOTE: Applicability.>> 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 2004, the provisions of this title

are amended (or the regulations developed to carry out this

title are amended), there is a new interpretation of this title

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) <<NOTE: Notification.>> 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

[[Page 118 STAT. 2693]]

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 that 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) <<NOTE: Deadlines.>> 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 not less than 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

[[Page 118 STAT. 2694]]

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. <<NOTE: 20 USC 1413.>> 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--

[[Page 118 STAT. 2695]]

``(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) Adjustment to local fiscal effort in certain

fiscal years.--

``(i) Amounts in excess.--Notwithstanding

clauses (ii) and (iii) of subparagraph (A), for

any fiscal year for which the allocation received

by a local educational agency under section 611(f)

exceeds the amount the local educational agency

received for the previous fiscal year, the local

educational agency may reduce the level of

expenditures otherwise required by subparagraph

(A)(iii) by not more than 50 percent of the amount

of such excess.

``(ii) Use of amounts to carry out activities

under esea.--If a local educational agency

exercises the authority under clause (i), the

agency shall use an amount of local funds equal to

the reduction in expenditures under clause (i) to

carry out activities authorized under the

Elementary and Secondary Education Act of 1965.

``(iii) State prohibition.--Notwithstanding

clause (i), if a State educational agency

determines that a local educational agency is

unable to establish and maintain programs of free

appropriate public education that meet the

requirements of subsection (a) or the State

educational agency has taken action against the

local educational agency under section 616, the

State educational agency shall prohibit the local

educational agency from reducing the level of

expenditures under clause (i) for that fiscal

year.

``(iv) Special rule.--The amount of funds

expended by a local educational agency under

subsection (f) shall count toward the maximum

amount of expenditures such local educational

agency may reduce under clause (i).

``(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.

[[Page 118 STAT. 2696]]

``(3) Personnel development.--The local educational agency

shall ensure that all personnel necessary to carry out this part

are appropriately and adequately prepared, subject to the

requirements of section 612(a)(14) 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).

``(iii) High cost education and related

services.--To establish and implement cost or risk

sharing funds, consortia, or cooperatives for the

local educational agency itself, or for local

educational agencies working in a consortium of

which the local educational agency is a part, to

pay for high cost special education and related

services.

``(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--

``(i) on the same basis as the local

educational agency provides funds to the local

educational agency's other public schools,

including proportional distribution based on

relative enrollment of children with disabilities;

and

[[Page 118 STAT. 2697]]

``(ii) at the same time as the agency

distributes other Federal funds to the agency's

other public schools, consistent with the State's

charter school law.

``(6) Purchase of instructional materials.--

``(A) <<NOTE: Deadline.>> In general.--Not later

than 2 years after the date of enactment of the

Individuals with Disabilities Education Improvement Act

of 2004, a local educational agency that chooses to

coordinate with the National Instructional Materials

Access Center, when purchasing print instructional

materials, shall acquire the print instructional

materials in the same manner and subject to the same

conditions as a State educational agency acquires print

instructional materials under section 612(a)(23).

``(B) Rights of local educational agency.--Nothing

in this paragraph shall be construed to require a local

educational agency to coordinate with the National

Instructional Materials Access Center. If a local

educational agency chooses not to coordinate with the

National Instructional Materials Access Center, the

local educational agency shall provide an assurance to

the State educational agency that the local educational

agency will provide instructional materials to blind

persons or other persons with print disabilities in a

timely manner.

``(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 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 2004, 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

[[Page 118 STAT. 2698]]

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 2004, the provisions

of this title are amended (or the regulations developed to carry

out this title are amended), there is a new interpretation of

this title 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

[[Page 118 STAT. 2699]]

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 have

received under section 611(f) if such agencies were eligible for

such payments.

``(3) Requirements.--Local educational agencies that

establish joint eligibility under this subsection shall--

``(A) adopt policies and procedures that are

consistent with the State's policies and procedures

under section 612(a); and

``(B) be jointly responsible for implementing

programs that receive assistance under this part.

``(4) Requirements for educational service agencies.--

``(A) In general.--If an educational service agency

is required by State law to carry out programs under

this part, the joint responsibilities given to local

educational agencies under this subsection shall--

``(i) not apply to the administration and

disbursement of any payments received by that

educational service agency; and

``(ii) be carried out only by that educational

service agency.

``(B) Additional requirement.--Notwithstanding any

other provision of this subsection, an educational

service agency shall provide for the education of

children with disabilities in the least restrictive

environment, as required by section 612(a)(5).

``(f) 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 reduced by the

agency 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 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 have not been identified as needing special education or

related services but who need additional academic and behavioral

support to succeed in a general education environment.

``(2) Activities.--In implementing coordinated, early

intervening 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

instruction and behavioral interventions, including

scientifically based literacy instruction, and, where

appropriate, instruction on the use of adaptive and

instructional software; and

[[Page 118 STAT. 2700]]

``(B) providing educational and behavioral

evaluations, services, and supports, including

scientifically based literacy instruction.

``(3) Construction.--Nothing in this subsection shall be

construed to 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 services

under this subsection shall annually report to the State

educational agency on--

``(A) the number of students served under this

subsection; and

``(B) the number of students served under this

subsection who subsequently receive special education

and related services under this title during the

preceding 2-year period.

``(5) Coordination with elementary and secondary education

act of 1965.--Funds made available to carry out this subsection

may be used to carry out coordinated, early intervening 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.

``(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 local educational

agency or State 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

educational 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--

[[Page 118 STAT. 2701]]

``(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) Adjustment to state fiscal effort in certain fiscal

years.--For any fiscal year for which the allotment received by

a State under section 611 exceeds the amount the State received

for the previous fiscal year and if the State in school year

2003-2004 or any subsequent school year pays or reimburses all

local educational agencies within the State from State revenue

100 percent of the non-Federal share of the costs of special

education and related services, the State educational agency,

notwithstanding paragraphs (17) and (18) of section 612(a) and

section 612(b), may reduce the level of expenditures from State

sources for the education of children with disabilities by not

more than 50 percent of the amount of such excess.

``(2) Prohibition.--Notwithstanding paragraph (1), 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, or

that the State needs assistance, intervention, or substantial

intervention under section 616(d)(2)(A), the Secretary shall

prohibit the State educational agency from exercising the

authority in paragraph (1).

``(3) Education activities.--If a State educational agency

exercises the authority under paragraph (1), the agency shall

use funds from State sources, in an amount equal to the amount

of the reduction under paragraph (1), to support activities

authorized under the Elementary and Secondary Education Act of

1965 or to support need based student or teacher higher

education programs.

``(4) Report.--For each fiscal year for which a State

educational agency exercises the authority under paragraph (1),

the State educational agency shall report to the Secretary the

amount of expenditures reduced pursuant to such paragraph

[[Page 118 STAT. 2702]]

and the activities that were funded pursuant to paragraph (3).

``(5) Limitation.--Notwithstanding paragraph (1), a State

educational agency may not reduce the level of expenditures

described in paragraph (1) if any local educational agency in

the State would, as a result of such reduction, receive less

than 100 percent of the amount necessary to ensure that all

children with disabilities served by the local educational

agency receive a free appropriate public education from the

combination of Federal funds received under this title and State

funds received from the State educational agency.

``SEC. 614. <<NOTE: 20 USC 1414.>> EVALUATIONS, ELIGIBILITY

DETERMINATIONS, INDIVIDUALIZED EDUCATION PROGRAMS, AND

EDUCATIONAL PLACEMENTS.

``(a) Evaluations, Parental Consent, and Reevaluations.--

``(1) Initial evaluations.--

``(A) In general.--A State educational agency, other

State agency, or local educational agency shall conduct

a full and individual initial evaluation in accordance

with this paragraph and subsection (b), before the

initial provision of special education and related

services to a child with a disability under this part.

``(B) Request for initial evaluation.--Consistent

with subparagraph (D), either a parent of a child, 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.--

``(i) In general.--Such initial evaluation

shall consist of procedures--

``(I) <<NOTE: Deadline.>> to

determine whether a child is a child

with a disability (as defined in section

602) within 60 days of receiving

parental consent for the evaluation, or,

if the State establishes a timeframe

within which the evaluation must be

conducted, within such timeframe; and

``(II) to determine the educational

needs of such child.

``(ii) Exception.--The relevant timeframe in

clause (i)(I) shall not apply to a local

educational agency if--

``(I) a child enrolls in a school

served by the local educational agency

after the relevant timeframe in clause

(i)(I) has begun and prior to a

determination by the child's previous

local educational agency as to whether

the child is a child with a disability

(as defined in section 602), but only if

the subsequent local educational agency

is making sufficient progress to ensure

a prompt completion of the evaluation,

and the parent and subsequent local

educational agency agree to a specific

time when the evaluation will be

completed; or

``(II) the parent of a child

repeatedly fails or refuses to produce

the child for the evaluation.

``(D) Parental consent.--

``(i) In general.--

[[Page 118 STAT. 2703]]

``(I) Consent for initial

evaluation.--The agency proposing to

conduct an initial evaluation to

determine if the child qualifies as a

child with a disability as defined in

section 602 shall obtain informed

consent from the parent of such child

before conducting the evaluation.

Parental consent for evaluation shall

not be construed as consent for

placement for receipt of special

education and related services.

``(II) Consent for services.--An

agency that is responsible for making a

free appropriate public education

available to a child with a disability

under this part shall seek to obtain

informed consent from the parent of such

child before providing special education

and related services to the child.

``(ii) Absence of consent.--

``(I) For initial evaluation.--If

the parent of such child does not

provide consent for an initial

evaluation under clause (i)(I), or the

parent fails to respond to a request to

provide the consent, the local

educational agency may pursue the

initial evaluation of the child by

utilizing the procedures described in

section 615, except to the extent

inconsistent with State law relating to

such parental consent.

``(II) For services.--If the parent

of such child refuses to consent to

services under clause (i)(II), the local

educational agency shall not provide

special education and related services

to the child by utilizing the procedures

described in section 615.

``(III) Effect on agency

obligations.--If the parent of such

child refuses to consent to the receipt

of special education and related

services, or the parent fails to respond

to a request to provide such consent--

``(aa) 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 such child

with the special education and

related services for which the

local educational agency

requests such consent; and

``(bb) the local educational

agency shall not be required to

convene an IEP meeting or

develop an IEP under this

section for the child for the

special education and related

services for which the local

educational agency requests such

consent.

``(iii) Consent for wards of the state.--

``(I) In general.--If the child is a

ward of the State and is not residing

with the child's parent, the agency

shall make reasonable efforts to obtain

the informed consent from the parent (as

defined in section 602) of the child for

an

[[Page 118 STAT. 2704]]

initial evaluation to determine whether

the child is a child with a disability.

``(II) Exception.--The agency shall

not be required to obtain informed

consent from the parent of a child for

an initial evaluation to determine

whether the child is a child with a

disability if--

``(aa) despite reasonable

efforts to do so, the agency

cannot discover the whereabouts

of the parent of the child;

``(bb) the rights of the

parents of the child have been

terminated in accordance with

State law; or

``(cc) the rights of the

parent to make educational

decisions have been subrogated

by a judge in accordance with

State law and consent for an

initial evaluation has been

given by an individual appointed

by the judge to represent the

child.

``(E) Rule of construction.--The screening of a

student by a teacher or specialist to determine

appropriate instructional strategies for curriculum

implementation shall not be considered to be an

evaluation for eligibility for special education and

related services.

``(2) Reevaluations.--

``(A) In general.--A local educational agency shall

ensure that a reevaluation of each child with a

disability is conducted in accordance with subsections

(b) and (c)--

``(i) if the local educational agency

determines that the educational 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 frequently 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

[[Page 118 STAT. 2705]]

``(ii) the content of the child's

individualized education program, including

information related to enabling the child to be

involved in and progress in the general education

curriculum, or, for preschool children, to

participate in appropriate activities;

``(B) not use any single measure or assessment as

the sole criterion for determining whether a child is a

child with a disability or determining an appropriate

educational program for the child; and

``(C) use technically sound instruments that may

assess the relative contribution of cognitive and

behavioral factors, in addition to physical or

developmental factors.

``(3) Additional requirements.--Each local educational

agency shall ensure that--

``(A) assessments and other evaluation 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 in the

language and form most likely to yield accurate

information on what the child knows and can do

academically, developmentally, and functionally,

unless it is not feasible to so provide or

administer;

``(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

assessments;

``(B) the child is assessed in all areas of

suspected disability;

``(C) assessment tools and strategies that provide

relevant information that directly assists persons in

determining the educational needs of the child are

provided; and

``(D) assessments of children with disabilities who

transfer from 1 school district to another school

district in the same academic year are coordinated with

such children's prior and subsequent schools, as

necessary and as expeditiously as possible, to ensure

prompt completion of full evaluations.

``(4) Determination of eligibility and educational need.--

Upon completion of the administration of assessments and other

evaluation measures--

``(A) the determination of whether the child is a

child with a disability as defined in section 602(3) and

the educational needs of the child shall be made by a

team of qualified professionals and the parent of the

child in accordance with paragraph (5); and

``(B) a copy of the evaluation report and the

documentation of determination of eligibility 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--

[[Page 118 STAT. 2706]]

``(A) lack of appropriate instruction in reading,

including in the essential components of reading

instruction (as defined in section 1208(3) of the

Elementary and Secondary Education Act of 1965);

``(B) lack of instruction in math; or

``(C) limited English proficiency.

``(6) Specific learning disabilities.--

``(A) In general.--Notwithstanding section 607(b),

when determining whether a child has a specific learning

disability as defined in section 602, 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 and other

qualified professionals, as appropriate, shall--

``(A) review existing evaluation data on the child,

including--

``(i) evaluations and information provided by

the parents of the child;

``(ii) current classroom-based, local, or

State assessments, and classroom-based

observations; and

``(iii) observations by teachers and related

services providers; and

``(B) on the basis of that review, and input from

the child's parents, identify what additional data, if

any, are needed to determine--

``(i) whether the child is a child with a

disability as defined in section 602(3), and the

educational needs of the child, or, in case of a

reevaluation of a child, whether the child

continues to have such a disability and such

educational needs;

``(ii) the present levels of academic

achievement and related developmental needs of the

child;

``(iii) whether the child needs special

education and related services, or in the case of

a reevaluation of a child, whether the child

continues to need special education and related

services; and

``(iv) whether any additions or modifications

to the special education and related services are

needed to enable the child to meet the measurable

annual goals set out in the individualized

education program of the child and to participate,

as appropriate, in the general education

curriculum.

[[Page 118 STAT. 2707]]

``(2) Source of data.--The local educational agency shall

administer such assessments and other evaluation measures as may

be needed to produce the data identified by the IEP Team under

paragraph (1)(B).

``(3) Parental consent.--Each local educational agency shall

obtain informed parental consent, in accordance with subsection

(a)(1)(D), prior to conducting any reevaluation of a child with

a disability, except that such informed parental consent need

not be obtained if the local educational agency can demonstrate

that it had taken reasonable measures to obtain such consent and

the child's parent has failed to respond.

``(4) Requirements if additional data are not needed.--If

the IEP Team and other qualified professionals, as appropriate,

determine that no additional data are needed to determine

whether the child continues to be a child with a disability and

to determine the child's educational needs, the local

educational agency--

``(A) shall notify the child's parents of--

``(i) that determination and the reasons for

the determination; and

``(ii) the right of such parents to request an

assessment to determine whether the child

continues to be a child with a disability and to

determine the child's educational needs; and

``(B) shall not be required to conduct such an

assessment unless requested to by the child's parents.

``(5) Evaluations before change in eligibility.--

``(A) 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 due 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.--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--

[[Page 118 STAT. 2708]]

``(aa) how the child's

disability affects the child's

involvement and progress in the

general education curriculum;

``(bb) for preschool

children, as appropriate, how

the disability affects the

child's participation in

appropriate activities; and

``(cc) for children with

disabilities who take alternate

assessments aligned to alternate

achievement standards, a

description of benchmarks or

short-term objectives;

``(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

education 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, based

on peer-reviewed research to the extent

practicable, to be provided to the

child, or on behalf of the child, and a

statement of the program modifications

or supports for school personnel that

will be provided for the child--

``(aa) to advance

appropriately toward attaining

the annual goals;

``(bb) to be involved in and

make progress in the general

education curriculum in

accordance with subclause (I)

and to participate in

extracurricular and other

nonacademic activities; and

``(cc) to be educated and

participate with other children

with disabilities and

nondisabled children in the

activities described in this

subparagraph;

``(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

[[Page 118 STAT. 2709]]

``(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 16, 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 to assist the

child in reaching those goals;

and

``(cc) beginning not later

than 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) not less than 1 regular education

teacher of such child (if the child is, or may be,

participating in the regular education

environment);

``(iii) not less than 1 special education

teacher, or where appropriate, not less than 1

special education provider of such child;

``(iv) a representative of the local

educational agency who--

``(I) is qualified to provide, or

supervise the provision of, specially

designed instruction to meet the unique

needs of children with disabilities;

``(II) is knowledgeable about the

general education curriculum; and

[[Page 118 STAT. 2710]]

``(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 the parent of

a child with a disability and the local

educational agency agree that the attendance of

such member is not necessary because the member's

area of the curriculum or related services is not

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) the parent and the local

educational agency consent to the

excusal; and

``(II) the member submits, in

writing to the parent and the IEP Team,

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.

``(D) IEP team transition.--In the case of a child

who was previously served under part C, an invitation to

the initial IEP meeting shall, at the request of the

parent, be sent to the part C service coordinator or

other representatives of the part C system to assist

with the smooth transition of services.

``(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 the

agency's jurisdiction, an individualized education

program, as defined in paragraph (1)(A).

``(B) Program for child aged 3 through 5.--In the

case of a child with a disability aged 3 through 5 (or,

at the discretion of the State educational agency, a 2-

year-old child with a disability who will turn age 3

during the school year), the IEP Team shall consider the

individualized family service plan that contains the

material described in section 636, and that is developed

in accordance with this section, and the individualized

family service plan may serve as the IEP of the child if

using that plan as the IEP is--

[[Page 118 STAT. 2711]]

``(i) consistent with State policy; and

``(ii) agreed to by the agency and the child's

parents.

``(C) Program for children who transfer school

districts.--

``(i) In general.--

``(I) Transfer within the same

state.--In the case of a child with a

disability who transfers school

districts within the same academic year,

who enrolls in a new school, and who had

an IEP that was in effect in the same

State, the local educational agency

shall provide such child with a free

appropriate public education, including

services comparable to those described

in the previously held IEP, in

consultation with the parents until such

time as the local educational agency

adopts the previously held IEP or

develops, adopts, and implements a new

IEP that is consistent with Federal and

State law.

``(II) Transfer outside state.--In

the case of a child with a disability

who transfers school districts within

the same academic year, who enrolls in a

new school, and who had an IEP that was

in effect in another State, the local

educational agency shall provide such

child with a free appropriate public

education, including services comparable

to those described in the previously

held IEP, in consultation with the

parents until such time as the local

educational agency conducts an

evaluation pursuant to subsection

(a)(1), if determined to be necessary by

such agency, and develops a new IEP, if

appropriate, that is consistent with

Federal and State law.

``(ii) Transmittal of records.--To facilitate

the transition for a child described in clause

(i)--

``(I) the new school in which the

child enrolls shall take reasonable

steps to promptly obtain the child's

records, including the IEP and

supporting documents and any other

records relating to the provision of

special education or related services to

the child, from the previous school in

which the child was enrolled, pursuant

to section 99.31(a)(2) of title 34, Code

of Federal Regulations; and

``(II) the previous school in which

the child was enrolled shall take

reasonable steps to promptly respond to

such request from the new school.

``(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

[[Page 118 STAT. 2712]]

``(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,

consider the use of positive behavioral

interventions and supports, and other strategies,

to address that behavior;

``(ii) in the case of a child with limited

English proficiency, consider the language needs

of the child as such needs relate to the child's

IEP;

``(iii) in the case of a child who is blind or

visually impaired, provide for instruction in

Braille and the use of Braille unless the IEP Team

determines, after an evaluation of the child's

reading and writing skills, needs, and appropriate

reading and writing media (including an evaluation

of the child's future needs for instruction in

Braille or the use of Braille), that instruction

in Braille or the use of Braille is not

appropriate for the child;

``(iv) consider the communication needs of the

child, and in the case of a child who is deaf or

hard of hearing, consider the child's language and

communication needs, opportunities for direct

communications with peers and professional

personnel in the child's language and

communication mode, academic level, and full range

of needs, including opportunities for direct

instruction in the child's language and

communication mode; and

``(v) consider whether the child needs

assistive technology devices and services.

``(C) Requirement with respect to regular education

teacher.--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 reevaluation meetings for

the child and other IEP Team meetings for the child.

``(F) Amendments.--Changes to the IEP may be made

either by the entire IEP Team or, as provided in

subparagraph (D), by amending the IEP rather than by

redrafting the entire IEP. Upon request, a parent shall

be provided with a revised copy of the IEP with the

amendments incorporated.

``(4) Review and revision of iep.--

[[Page 118 STAT. 2713]]

``(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 frequently than annually, to

determine whether the annual goals for the child

are being achieved; and

``(ii) revises the IEP as appropriate to

address--

``(I) any lack of expected progress

toward the annual goals and in the

general education curriculum, where

appropriate;

``(II) the results of any

reevaluation conducted under this

section;

``(III) information about the child

provided to, or by, the parents, as

described in subsection (c)(1)(B);

``(IV) the child's anticipated

needs; or

``(V) other matters.

``(B) Requirement with respect to regular education

teacher.--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) Multi-year iep demonstration.--

``(A) Pilot program.--

``(i) Purpose.--The purpose of this paragraph

is to provide an opportunity for States to allow

parents and local educational agencies the

opportunity for long-term planning by offering the

option of developing a comprehensive multi-year

IEP, not to exceed 3 years, that is designed to

coincide with the natural transition points for

the child.

``(ii) Authorization.--In order to carry out

the purpose of this paragraph, the Secretary is

authorized to approve not more than 15 proposals

from States to carry out the activity described in

clause (i).

``(iii) Proposal.--

``(I) In general.--A State desiring

to participate in the program under this

paragraph shall submit a proposal to the

Secretary at such time and in such

manner as the Secretary may reasonably

require.

``(II) Content.--The proposal shall

include--

``(aa) assurances that the

development of a multi-year IEP

under this paragraph is optional

for parents;

``(bb) assurances that the

parent is required to provide

informed consent before a

comprehensive multi-year IEP is

developed;

``(cc) a list of required

elements for each multi-year

IEP, including--``(AA)

measurable goals pursuant to

paragraph (1)(A)(i)(II),

coinciding with natural

transition points for the child,

that will enable the child to be

involved in and make progress in

the general education curriculum

and that will meet the child's

other needs that result from the

child's disability; and

[[Page 118 STAT. 2714]]

``(BB) measurable annual goals for

determining progress toward meeting the

goals described in subitem (AA); and

``(dd) a description of the

process for the review and

revision of each multi-year IEP,

including--

``(AA) a review by the IEP Team of

the child's multi-year IEP at each of

the child's natural transition points;

``(BB) in years other than a child's

natural transition points, an annual

review of the child's IEP to determine

the child's current levels of progress

and whether the annual goals for the

child are being achieved, and a

requirement to amend the IEP, as

appropriate, to enable the child to

continue to meet the measurable goals

set out in the IEP;

``(CC) if the IEP Team determines on

the basis of a review that the child is

not making sufficient progress toward

the goals described in the multi-year

IEP, a requirement that the local

educational agency shall ensure that the

IEP Team carries out a more thorough

review of the IEP in accordance with

paragraph (4) within 30 calendar days;

and

``(DD) at the request of the parent,

a requirement that the IEP Team shall

conduct a review of the child's multi-

year IEP rather than or subsequent to an

annual review.

``(B) Report.--Beginning 2 years after the date of

enactment of the Individuals with Disabilities Education

Improvement Act of 2004, the Secretary shall submit an

annual report to the Committee on Education and the

Workforce of the House of Representatives and the

Committee on Health, Education, Labor, and Pensions of

the Senate regarding the effectiveness of the program

under this paragraph and any specific recommendations

for broader implementation of such program, including--

``(i) reducing--

``(I) the paperwork burden on

teachers, principals, administrators,

and related service providers; and

``(II) noninstructional time spent

by teachers in complying with this part;

``(ii) enhancing longer-term educational

planning;

``(iii) improving positive outcomes for

children with disabilities;

``(iv) promoting collaboration between IEP

Team members; and

``(v) ensuring satisfaction of family members.

``(C) Definition.--In this paragraph, the term

`natural transition points' means those periods that are

close in time to the transition of a child with a

disability from preschool to elementary grades, from

elementary grades

[[Page 118 STAT. 2715]]

to middle or junior high school grades, from middle or

junior high school grades to secondary school grades,

and from secondary school grades to post-secondary

activities, but in no case a period longer than 3 years.

``(6) Failure to meet transition objectives.--If a

participating agency, other than the local educational agency,

fails to provide the transition services described in the IEP in

accordance with paragraph (1)(A)(i)(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 the IEP.

``(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)(VI) (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

such children's age, before such children 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 paragraph

(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,

section 615(e), and section 615(f)(1)(B), and carrying out

administrative matters under section 615 (such as scheduling, exchange

of witness lists, and status conferences), 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. <<NOTE: 20 USC 1415.>> 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 a

free appropriate public education by such agencies.

``(b) Types of Procedures.--The procedures required by this section

shall include the following:

[[Page 118 STAT. 2716]]

``(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)(A) 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 to act as a surrogate for the parents, which

surrogate 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. In the case

of--

``(i) a child who is a ward of the State, such

surrogate may alternatively be appointed by the judge

overseeing the child's care provided that the surrogate

meets the requirements of this paragraph; and

``(ii) an unaccompanied homeless youth as defined in

section 725(6) of the McKinney-Vento Homeless Assistance

Act (42 U.S.C. 11434a(6)), the local educational agency

shall appoint a surrogate in accordance with this

paragraph.

``(B) The State shall make reasonable efforts to ensure the

assignment of a surrogate not more than 30 days after there is a

determination by the agency that the child needs a surrogate.

``(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 any party to present a complaint--

``(A) with respect to any matter relating to the

identification, evaluation, or educational placement of

the child, or the provision of a free appropriate public

education to such child; and

``(B) <<NOTE: Applicability.>> which sets forth an

alleged violation that occurred not more than 2 years

before 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 presenting such a complaint

under this part, in such time as the State law allows,

except that the exceptions to the timeline described in

subsection (f)(3)(D) shall apply to the timeline

described in this subparagraph.

``(7)(A) Procedures that require either party, or the

attorney representing a party, to provide due process complaint

notice

[[Page 118 STAT. 2717]]

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 (or available contact

information in the case of a homeless 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.

``(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) 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 notice 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 and a description of each

evaluation procedure, assessment, record, or report the

agency used as a basis for the proposed or refused

action;

``(C) 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;

``(D) sources for parents to contact to obtain

assistance in understanding the provisions of this part;

``(E) a description of other options considered by

the IEP Team and the reason why those options were

rejected; and

``(F) a description of the factors that are relevant

to the agency's proposal or refusal.

``(2) Due process complaint notice.--

``(A) Complaint.--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 subsection (b)(7)(A).

``(B) Response to complaint.--

[[Page 118 STAT. 2718]]

``(i) Local educational agency response.--

``(I) <<NOTE: Deadline.>> In

general.--If the local educational

agency has not sent a prior written

notice to the parent regarding the

subject matter contained in the parent's

due process complaint notice, such local

educational agency shall, within 10 days

of receiving the complaint, send to the

parent a response that shall include--

``(aa) an explanation of why

the agency proposed or refused

to take the action raised in the

complaint;

``(bb) a description of

other options that the IEP Team

considered and the reasons why

those options were rejected;

``(cc) a description of each

evaluation procedure,

assessment, record, or report

the agency used as the basis for

the proposed or refused action;

and

``(dd) a description of the

factors that are relevant to the

agency's proposal or refusal.

``(II) Sufficiency.--A response

filed by a local educational agency

pursuant to subclause (I) shall not be

construed to preclude such local

educational agency from asserting that

the parent's due process complaint

notice was insufficient where

appropriate.

``(ii) <<NOTE: Deadline.>> Other party

response.--Except as provided in clause (i), the

non-complaining party shall, within 10 days of

receiving the complaint, send to the complaint a

response that specifically addresses the issues

raised in the complaint.

``(C) <<NOTE: Deadline.>> Timing.--The party

providing a hearing officer notification under

subparagraph (A) shall provide the notification within

15 days of receiving the complaint.

``(D) <<NOTE: Deadline.>> Determination.--Within 5

days of receipt of the notification provided under

subparagraph (C), 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 the parties in

writing of such determination.

``(E) Amended complaint notice.--

``(i) In general.--A party may amend its due

process complaint notice only if--

``(I) the other party 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, except that the hearing

officer may only grant such permission

at any time not later than 5 days 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, including the timeline under

subsection (f)(1)(B).

``(d) Procedural Safeguards Notice.--

[[Page 118 STAT. 2719]]

``(1) In general.--

``(A) Copy to parents.--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--

``(i) upon initial referral or parental

request for evaluation;

``(ii) upon the first occurrence of the filing

of a complaint under subsection (b)(6); and

``(iii) upon request by a parent.

``(B) Internet website.--A local educational agency

may place a current copy of the procedural safeguards

notice on its Internet website if such website exists.

``(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) 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, 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

[[Page 118 STAT. 2720]]

``(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

that 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 agreement.--In the case that a

resolution is reached to resolve the complaint through

the mediation process, the parties shall execute a

legally binding agreement that sets forth such

resolution and that--

``(i) states that all discussions that

occurred during the mediation process shall be

confidential and may not be used as evidence in

any subsequent due process hearing or civil

proceeding;

``(ii) is signed by both the parent and a

representative of the agency who has the authority

to bind such agency; and

``(iii) is enforceable in any State court of

competent jurisdiction or in a district court of

the United States.

``(G) <<NOTE: Confidential information.>> Mediation

discussions.--Discussions that occur during the

mediation process shall be confidential and may not be

used as evidence in any subsequent due process hearing

or civil proceeding.

``(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) Resolution session.--

``(i) Preliminary meeting.--Prior to the

opportunity for an impartial due process hearing

under subparagraph (A), the local educational

agency shall

[[Page 118 STAT. 2721]]

convene a meeting with the parents and the

relevant member or members of the IEP Team who

have specific knowledge of the facts identified in

the complaint--

``(I) <<NOTE: Deadline.>> within 15

days of receiving notice of the parents'

complaint;

``(II) which shall include a

representative of the 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

facts 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) <<NOTE: Deadline.>> Hearing.--If the

local educational agency has not resolved the

complaint to the satisfaction of the parents

within 30 days of the receipt of the complaint,

the due process hearing 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 a resolution is reached to resolve the

complaint at a meeting described in clause (i),

the parties shall execute a legally binding

agreement that is--

``(I) signed by both the parent and

a representative of the agency who has

the authority to bind such agency; and

``(II) enforceable in any State

court of competent jurisdiction or in a

district court of the United States.

``(iv) Review period.--If the parties execute

an agreement pursuant to clause (iii), a party may

void such agreement within 3 business days of the

agreement's execution.

``(2) Disclosure of evaluations and recommendations.--

``(A) <<NOTE: Deadline.>> 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--

[[Page 118 STAT. 2722]]

``(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 knowledge of, and the ability

to understand, the provisions of this title,

Federal and State regulations pertaining to this

title, and legal interpretations of this title by

Federal and State 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) Timeline for requesting hearing.--A parent or

agency shall request an impartial due process hearing

within 2 years of the date the parent or 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.

``(D) Exceptions to the timeline.--The timeline

described in subparagraph (C) shall not apply to a

parent if the parent was prevented from requesting the

hearing due to--

``(i) specific misrepresentations by the local

educational agency that it had resolved the

problem forming the basis of the complaint; or

``(ii) the local educational agency's

withholding of information from the parent that

was required under this part to be provided to the

parent.

``(E) 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) impeded the child's right to a

free appropriate public education;

``(II) significantly impeded the

parents' opportunity to participate in

the decisionmaking process regarding the

provision of a free appropriate public

education to the parents' child; or

``(III) caused a deprivation of

educational benefits.

``(iii) Rule of construction.--Nothing in this

subparagraph shall be construed to preclude a

hearing

[[Page 118 STAT. 2723]]

officer from ordering a local educational agency

to comply with procedural requirements under this

section.

``(F) Rule of construction.--Nothing in this

paragraph shall be construed to affect the right of a

parent to file a complaint with the State educational

agency.

``(g) Appeal.--

``(1) In general.--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.

``(2) Impartial review and independent decision.--The State

educational agency shall conduct an impartial review of the

findings and decision appealed under paragraph (1). The officer

conducting such review shall make an independent decision upon

completion of such review.

``(h) Safeguards.--Any party to a hearing conducted pursuant to

subsection (f) or (k), or an appeal conducted pursuant to subsection

(g), shall be accorded--

``(1) the right to be accompanied and advised by counsel and

by individuals with special knowledge or training with respect

to the problems of children with disabilities;

``(2) the right to present evidence and confront, cross-

examine, and compel the attendance of witnesses;

``(3) the right to a written, or, at the option of the

parents, electronic verbatim record of such hearing; and

``(4) the right to written, or, at the option of the

parents, electronic findings of fact and decisions, which

findings and decisions--

``(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)(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).

``(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 made 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.

[[Page 118 STAT. 2724]]

``(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.--

``(i) In general.--In any action or proceeding

brought under this section, the court, in its

discretion, may award reasonable attorneys' fees

as part of the costs--

``(I) to a prevailing party who is

the parent of a child with a disability;

``(II) to a prevailing party who is

a State educational agency or local

educational agency against the attorney

of a parent who files a complaint or

subsequent cause of action that is

frivolous, unreasonable, or without

foundation, or against the attorney of a

parent who continued to litigate after

the litigation clearly became frivolous,

unreasonable, or without foundation; or

``(III) to a prevailing State

educational agency or local educational

agency against the attorney of a parent,

or against the parent, if the parent's

complaint or subsequent cause of action

was presented for any improper purpose,

such as to harass, to cause unnecessary

delay, or to needlessly increase the

cost of litigation.

``(ii) Rule of construction.--Nothing in this

subparagraph shall be construed to affect section

327 of the District of Columbia Appropriations

Act, 2005.

``(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--

[[Page 118 STAT. 2725]]

``(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.

``(j) Maintenance of Current Educational Placement.--Except as

provided in subsection (k)(4), during the pendency of

[[Page 118 STAT. 2726]]

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 the 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) Case-by-case determination.--School personnel

may consider any unique circumstances on a case-by-case

basis when determining whether to order a change in

placement for a child with a disability who violates a

code of student conduct.

``(B) Authority.--School personnel under this

subsection may remove a child with a disability who

violates a code of student conduct from their current

placement 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).

``(C) 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 (E), the relevant disciplinary procedures

applicable to children without disabilities may be

applied to the child in the same manner and for the same

duration in which the procedures would be applied to

children without disabilities, except as provided in

section 612(a)(1) although it may be provided in an

interim alternative educational setting.

``(D) Services.--A child with a disability who is

removed from the child's current placement under

subparagraph (G) (irrespective of whether the behavior

is determined to be a manifestation of the child's

disability) or subparagraph (C) shall--

``(i) continue to receive educational

services, as provided in 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, as appropriate, a functional

behavioral assessment, behavioral intervention

services and modifications, that are designed to

address the behavior violation so that it does not

recur.

``(E) Manifestation determination.--

``(i) <<NOTE: Deadline.>> In general.--Except

as provided in subparagraph (B), 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 local educational

agency, the parent, and relevant members of the

IEP Team (as determined by the parent and the

local educational agency) shall review all

relevant information in the student's file,

including the

[[Page 118 STAT. 2727]]

child's IEP, any teacher observations, and any

relevant information provided by the parents to

determine--

``(I) if the conduct in question was

caused by, or had a direct and

substantial relationship to, the child's

disability; or

``(II) if the conduct in question

was the direct result of the local

educational agency's failure to

implement the IEP.

``(ii) Manifestation.--If the local

educational agency, the parent, and relevant

members of the IEP Team determine 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.

``(F) Determination that behavior was a

manifestation.--If the local educational agency, the

parent, and relevant members of the IEP Team make the

determination that the conduct was a manifestation of

the child's disability, the IEP Team shall--

``(i) conduct a functional behavioral

assessment, and implement a behavioral

intervention plan for such child, provided that

the local educational agency had not conducted

such assessment prior to such determination before

the behavior that resulted in a change in

placement described in subparagraph (C) or (G);

``(ii) in the situation where a behavioral

intervention plan has been developed, review the

behavioral intervention plan if the child already

has such a behavioral intervention plan, and

modify it, as necessary, to address the behavior;

and

``(iii) except as provided in subparagraph

(G), return the child to the placement from which

the child was removed, unless the parent and the

local educational agency agree to a change of

placement as part of the modification of the

behavioral intervention plan.

``(G) Special circumstances.--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, 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;

``(ii) knowingly possesses or uses illegal

drugs, or sells or solicits the sale of a

controlled substance, while at school, on school

premises, or at a school function under the

jurisdiction of a State or local educational

agency; or

``(iii) has inflicted serious bodily injury

upon another person while at school, on school

premises, or at a school function under the

jurisdiction of a State or local educational

agency.

``(H) 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,

[[Page 118 STAT. 2728]]

and of all procedural safeguards accorded under this

section.

``(2) Determination of setting.--The interim alternative

educational setting in subparagraphs (C) and (G) of paragraph

(1) 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

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.--A hearing officer shall

hear, and make a determination regarding, an

appeal requested under subparagraph (A).

``(ii) Change of placement order.--In making

the determination under clause (i), the hearing

officer may order a change in placement of a child

with a disability. In such situations, the hearing

officer may--

``(I) return a child with a

disability to the placement from which

the child was removed; or

``(II) 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 an appeal under

paragraph (3) has been requested by either the parent or the

local educational agency--

``(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)(C), whichever

occurs first, unless the parent and the State or local

educational agency agree otherwise; and

``(B) <<NOTE: Deadlines.>> 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 and shall result in a

determination within 10 school days after the hearing.

``(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

[[Page 118 STAT. 2729]]

with a disability if, before the behavior that

precipitated the disciplinary action occurred--

``(i) the parent of the child has expressed

concern in writing to supervisory or

administrative personnel of the appropriate

educational agency, or a teacher of the child,

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(a)(1)(B); or

``(iii) the teacher of the child, or other

personnel of the local educational agency, has

expressed specific concerns about a pattern of

behavior demonstrated by the child, directly to

the director of special education of such agency

or to other supervisory personnel of the agency.

``(C) Exception.--A local educational agency shall

not be deemed to have knowledge that the child is a

child with a disability if the parent of the child has

not allowed an evaluation of the child pursuant to

section 614 or has refused services under this part or

the child has been evaluated and it was determined that

the child was not a child with a disability under this

part.

``(D) Conditions that apply if no basis of

knowledge.--

``(i) In general.--If a local educational

agency does not have knowledge that a child is a

child with a disability (in accordance with

subparagraph (B) or (C)) prior to taking

disciplinary measures against the child, the child

may be subjected to disciplinary measures applied

to children without disabilities who engaged in

comparable behaviors consistent with clause (ii).

``(ii) Limitations.--If a request is made for

an evaluation of a child during the time period in

which the child is subjected to disciplinary

measures under this subsection, the evaluation

shall be conducted in an expedited manner. If the

child is determined to be a child with a

disability, taking into consideration information

from the evaluation conducted by the agency and

information provided by the parents, the agency

shall provide special education and related

services in accordance with this part, except

that, pending the results of the evaluation, the

child shall remain in the educational placement

determined by school authorities.

``(6) Referral to and action by law enforcement and judicial

authorities.--

``(A) Rule of construction.--Nothing in this part

shall be construed to prohibit an agency from reporting

a crime committed by a child with a disability to

appropriate authorities or to prevent State law

enforcement and judicial authorities from exercising

their responsibilities with regard to the application of

Federal and State law to crimes committed by a child

with a disability.

``(B) Transmittal of records.--An agency reporting a

crime committed by a child with a disability shall

ensure that copies of the special education and

disciplinary records

[[Page 118 STAT. 2730]]

of the child are transmitted for consideration by the

appropriate authorities to whom the agency reports the

crime.

``(7) Definitions.--In this subsection:

``(A) Controlled substance.--The term `controlled

substance' means a drug or other substance identified

under schedule I, II, III, IV, or V in section 202(c) of

the Controlled Substances Act (21 U.S.C. 812(c)).

``(B) Illegal drug.--The term `illegal drug' means a

controlled substance but does not include a controlled

substance that is legally possessed or used under the

supervision of a licensed health-care professional or

that is legally possessed or used under any other

authority under that Act or under any other provision of

Federal law.

``(C) Weapon.--The term `weapon' has the meaning

given the term `dangerous weapon' under section

930(g)(2) of title 18, United States Code.

``(D) Serious bodily injury.--The term `serious

bodily injury' has the meaning given the term `serious

bodily injury' under paragraph (3) of subsection (h) of

section 1365 of title 18, United States Code.

``(l) Rule of Construction.--Nothing in this title shall be

construed to restrict or limit the rights, procedures, and remedies

available under the Constitution, the Americans with Disabilities Act of

1990, title V of the Rehabilitation Act of 1973, or other Federal laws

protecting the rights of children with disabilities, except that before

the filing of a civil action under such laws seeking relief that is also

available under this part, the procedures under subsections (f) and (g)

shall be exhausted to the same extent as would be required had the

action been brought under this part.

``(m) Transfer of Parental Rights at Age of Majority.--

``(1) In general.--A State that receives amounts from a

grant under this part may provide that, when a child with a

disability reaches the age of majority under State law (except

for a child with a disability who has been determined to be

incompetent under State law)--

``(A) <<NOTE: Notification.>> the agency shall

provide any notice required by this section to both the

individual and the parents;

``(B) all other rights accorded to parents under

this part transfer to the child;

``(C) the agency shall notify the individual and the

parents of the transfer of rights; and

``(D) all rights accorded to parents under this part

transfer to children who are incarcerated in an adult or

juvenile Federal, State, or local correctional

institution.

``(2) Special rule.--If, under State law, a child with a

disability who has reached the age of majority under State law,

who has not been determined to be incompetent, but who is

determined not to have the ability to provide informed consent

with respect to the educational program of the child, the State

shall establish procedures for appointing the parent of the

child, or if the parent is not available, another appropriate

individual, to represent the educational interests of the child

throughout the period of eligibility of the child under this

part.

``(n) Electronic mail.--A parent of a child with a disability may

elect to receive notices required under this section by an

[[Page 118 STAT. 2731]]

electronic mail (e-mail) communication, if the agency makes such option

available.

``(o) Separate Complaint.--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.

``SEC. 616. <<NOTE: 20 USC 1416.>> MONITORING, TECHNICAL ASSISTANCE, AND

ENFORCEMENT.

``(a) Federal and State Monitoring.--

``(1) In general.--The Secretary shall--

``(A) monitor implementation of this part through--

``(i) oversight of the exercise of general

supervision by the States, as required in section

612(a)(11); and

``(ii) the State performance plans, described

in subsection (b);

``(B) enforce this part in accordance with

subsection (e); and

``(C) require States to--

``(i) monitor implementation of this part by

local educational agencies; and

``(ii) enforce this part in accordance with

paragraph (3) and subsection (e).

``(2) Focused monitoring.--The primary focus of Federal and

State monitoring activities described in paragraph (1) shall be

on--

``(A) improving educational results and functional

outcomes for all children with disabilities; and

``(B) ensuring that States meet the program

requirements under this part, with a particular emphasis

on those requirements that are most closely related to

improving educational results for children with

disabilities.

``(3) Monitoring priorities.--The Secretary shall monitor

the States, and shall require each State to monitor the local

educational agencies located in the State (except the State

exercise of general supervisory responsibility), using

quantifiable indicators in each of the following priority areas,

and using such qualitative indicators as are needed to

adequately measure performance in the following priority areas:

``(A) Provision of a free appropriate public

education in the least restrictive environment.

``(B) State exercise of general supervisory

authority, including child find, effective monitoring,

the use of resolution sessions, mediation, voluntary

binding arbitration, and a system of transition services

as defined in sections 602(34) and 637(a)(9).

``(C) Disproportionate representation of racial and

ethnic groups in special education and related services,

to the extent the representation is the result of

inappropriate identification.

``(4) Permissive areas of review.--The Secretary shall

consider other relevant information and data, including data

provided by States under section 618.

``(b) State Performance Plans.--

``(1) Plan.--

[[Page 118 STAT. 2732]]

``(A) <<NOTE: Deadline.>> In general.--Not later

than 1 year after the date of enactment of the

Individuals with Disabilities Education Improvement Act

of 2004, each State shall have in place a performance

plan that evaluates that State's efforts to implement

the requirements and purposes of this part and describes

how the State will improve such implementation.

``(B) Submission for approval.--Each State shall

submit the State's performance plan to the Secretary for

approval in accordance with the approval process

described in subsection (c).

``(C) <<NOTE: Deadline.>> Review.--Each State shall

review its State performance plan at least once every 6

years and submit any amendments to the Secretary.

``(2) Targets.--

``(A) In general.--As a part of the State

performance plan described under paragraph (1), each

State shall establish measurable and rigorous targets

for the indicators established under the priority areas

described in subsection (a)(3).

``(B) Data collection.--

``(i) In general.--Each State shall collect

valid and reliable information as needed to report

annually to the Secretary on the priority areas

described in subsection (a)(3).

``(ii) Rule of construction.--Nothing in this

title shall be construed to authorize the

development of a nationwide database of personally

identifiable information on individuals involved

in studies or other collections of data under this

part.

``(C) Public reporting and privacy.--

``(i) In general.--The State shall use the

targets established in the plan and priority areas

described in subsection (a)(3) to analyze the

performance of each local educational agency in

the State in implementing this part.

``(ii) Report.--

``(I) Public report.--The State

shall report annually to the public on

the performance of each local

educational agency located in the State

on the targets in the State's

performance plan. The State shall make

the State's performance plan available

through public means, including by

posting on the website of the State

educational agency, distribution to the

media, and distribution through public

agencies.

``(II) State performance report.--

The State shall report annually to the

Secretary on the performance of the

State under the State's performance

plan.

``(iii) Privacy.--The State shall not report

to the public or the Secretary any information on

performance that would result in the disclosure of

personally identifiable information about

individual children or where the available data is

insufficient to yield statistically reliable

information.

``(c) Approval Process.--

[[Page 118 STAT. 2733]]

``(1) <<NOTE: Deadline.>> Deemed approval.--The Secretary

shall review (including the specific provisions described in

subsection (b)) each performance plan submitted by a State

pursuant to subsection (b)(1)(B) and the plan shall be deemed to

be approved by the Secretary unless the Secretary makes a

written determination, prior to the expiration of the 120-day

period beginning on the date on which the Secretary received the

plan, that the plan does not meet the requirements of this

section, including the specific provisions described in

subsection (b).

``(2) Disapproval.--The Secretary shall not finally

disapprove a performance plan, except after giving the State

notice and an opportunity for a hearing.

``(3) Notification.--If the Secretary finds that the plan

does not meet the requirements, in whole or in part, of this

section, the Secretary shall--

``(A) give the State notice and an opportunity for a

hearing; and

``(B) notify the State of the finding, and in such

notification shall--

``(i) cite the specific provisions in the plan

that do not meet the requirements; and

``(ii) request additional information, only as

to the provisions not meeting the requirements,

needed for the plan to meet the requirements of

this section.

``(4) <<NOTE: Deadlines.>> Response.--If the State responds

to the Secretary's notification described in paragraph (3)(B)

during the 30-day period beginning on the date on which the

State received the notification, and resubmits the plan with the

requested information described in paragraph (3)(B)(ii), the

Secretary shall approve or disapprove such plan prior to the

later of--

``(A) the expiration of the 30-day period beginning

on the date on which the plan is resubmitted; or

``(B) the expiration of the 120-day period described

in paragraph (1).

``(5) Failure to respond.--If the State does not respond to

the Secretary's notification described in paragraph (3)(B)

during the 30-day period beginning on the date on which the

State received the notification, such plan shall be deemed to be

disapproved.

``(d) Secretary's Review and Determination.--

``(1) Review.--The Secretary shall annually review the State

performance report submitted pursuant to subsection

(b)(2)(C)(ii)(II) in accordance with this section.

``(2) Determination.--

``(A) In general.--Based on the information provided

by the State in the State performance report,

information obtained through monitoring visits, and any

other public information made available, the Secretary

shall determine if the State--

``(i) meets the requirements and purposes of

this part;

``(ii) needs assistance in implementing the

requirements of this part;

``(iii) needs intervention in implementing the

requirements of this part; or

``(iv) needs substantial intervention in

implementing the requirements of this part.

[[Page 118 STAT. 2734]]

``(B) Notice and opportunity for a hearing.--For

determinations made under clause (iii) or (iv) of

subparagraph (A), the Secretary shall provide reasonable

notice and an opportunity for a hearing on such

determination.

``(e) Enforcement.--

``(1) Needs assistance.--If the Secretary determines, for 2

consecutive years, that a State needs assistance under

subsection (d)(2)(A)(ii) in implementing the requirements of

this part, the Secretary shall take 1 or more of the following

actions:

``(A) Advise the State of available sources of

technical assistance that may help the State address the

areas in which the State needs assistance, which may

include assistance from the Office of Special Education

Programs, other offices of the Department of Education,

other Federal agencies, technical assistance providers

approved by the Secretary, and other federally funded

nonprofit agencies, and require the State to work with

appropriate entities. Such technical assistance may

include--

``(i) the provision of advice by experts to

address the areas in which the State needs

assistance, including explicit plans for

addressing the area for concern within a specified

period of time;

``(ii) assistance in identifying and

implementing professional development,

instructional strategies, and methods of

instruction that are based on scientifically based

research;

``(iii) designating and using distinguished

superintendents, principals, special education

administrators, special education teachers, and

other teachers to provide advice, technical

assistance, and support; and

``(iv) devising additional approaches to

providing technical assistance, such as

collaborating with institutions of higher

education, educational service agencies, national

centers of technical assistance supported under

part D, and private providers of scientifically

based technical assistance.

``(B) Direct the use of State-level funds under

section 611(e) on the area or areas in which the State

needs assistance.

``(C) Identify the State as a high-risk grantee and

impose special conditions on the State's grant under

this part.

``(2) Needs intervention.--If the Secretary determines, for

3 or more consecutive years, that a State needs intervention

under subsection (d)(2)(A)(iii) in implementing the requirements

of this part, the following shall apply:

``(A) The Secretary may take any of the actions

described in paragraph (1).

``(B) The Secretary shall take 1 or more of the

following actions:

``(i) Require the State to prepare a

corrective action plan or improvement plan if the

Secretary determines that the State should be able

to correct the problem within 1 year.

``(ii) Require the State to enter into a

compliance agreement under section 457 of the

General Education

[[Page 118 STAT. 2735]]

Provisions Act, if the Secretary has reason to

believe that the State cannot correct the problem

within 1 year.

``(iii) For each year of the determination,

withhold not less than 20 percent and not more

than 50 percent of the State's funds under section

611(e), until the Secretary determines the State

has sufficiently addressed the areas in which the

State needs intervention.

``(iv) Seek to recover funds under section 452

of the General Education Provisions Act.

``(v) Withhold, in whole or in part, any

further payments to the State under this part

pursuant to paragraph (5).

``(vi) Refer the matter for appropriate

enforcement action, which may include referral to

the Department of Justice.

``(3) Needs substantial intervention.--Notwithstanding

paragraph (1) or (2), at any time that the Secretary determines

that a State needs substantial intervention in implementing the

requirements of this part or that there is a substantial failure

to comply with any condition of a State educational agency's or

local educational agency's eligibility under this part, the

Secretary shall take 1 or more of the following actions:

``(A) Recover funds under section 452 of the General

Education Provisions Act.

``(B) Withhold, in whole or in part, any further

payments to the State under this part.

``(C) Refer the case to the Office of the Inspector

General at the Department of Education.

``(D) Refer the matter for appropriate enforcement

action, which may include referral to the Department of

Justice.

``(4) Opportunity for hearing.--

``(A) <<NOTE: Notification.>> Withholding funds.--

Prior to withholding any funds under this section, the

Secretary shall provide reasonable notice and an

opportunity for a hearing to the State educational

agency involved.

``(B) Suspension.--Pending the outcome of any

hearing to withhold payments under subsection (b), the

Secretary may suspend payments to a recipient, suspend

the authority of the recipient to obligate funds under

this part, or both, after such recipient has been given

reasonable notice and an opportunity to show cause why

future payments or authority to obligate funds under

this part should not be suspended.

``(5) Report to congress.--The Secretary shall report to the

Committee on Education and the Workforce of the House of

Representatives and the Committee on Health, Education, Labor,

and Pensions of the Senate within 30 days of taking enforcement

action pursuant to paragraph (1), (2), or (3), on the specific

action taken and the reasons why enforcement action was taken.

``(6) Nature of withholding.--

``(A) Limitation.--If the Secretary withholds

further payments pursuant to paragraph (2) or (3), the

Secretary may determine--

[[Page 118 STAT. 2736]]

``(i) that such withholding will be limited to

programs or projects, or portions of programs or

projects, that affected the Secretary's

determination under subsection (d)(2); or

``(ii) that the State educational agency shall

not make further payments under this part to

specified State agencies or local educational

agencies that caused or were involved in the

Secretary's determination under subsection (d)(2).

``(B) Withholding until rectified.--Until the

Secretary is satisfied that the condition that caused

the initial withholding has been substantially

rectified--

``(i) payments to the State under this part

shall be withheld in whole or in part; and

``(ii) payments by the State educational

agency under this part shall be limited to State

agencies and local educational agencies whose

actions did not cause or were not involved in the

Secretary's determination under subsection (d)(2),

as the case may be.

``(7) Public attention.--Any State that has received notice

under subsection (d)(2) 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 State.

``(8) Judicial review.--

``(A) <<NOTE: Deadline.>> In general.--If any State

is dissatisfied with the Secretary's 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 transmitted by the clerk of the court to the

Secretary. <<NOTE: Records.>> The Secretary thereupon

shall file in the court the record of the proceedings

upon which the Secretary's action was based, as provided

in section 2112 of title 28, United States Code.

``(B) Jurisdiction; review by united states supreme

court.--Upon the filing of such petition, the court

shall have jurisdiction to affirm the action of the

Secretary or to set it aside, in whole or in part. The

judgment of the court shall be subject to review by the

Supreme Court of the United States upon certiorari or

certification as provided in section 1254 of title 28,

United States Code.

``(C) <<NOTE: Records.>> Standard of review.--The

findings of fact by the Secretary, if supported by

substantial evidence, shall be conclusive, but the

court, for good cause shown, may remand the case to the

Secretary to take further evidence, and the Secretary

may thereupon make new or modified findings of fact and

may modify the Secretary's previous action, and shall

file in the court the record of the further proceedings.

Such new or modified findings of fact shall be

conclusive if supported by substantial evidence.

``(f) State Enforcement.--If a State educational agency determines

that a local educational agency is not meeting the requirements of this

part, including the targets in the State's performance

[[Page 118 STAT. 2737]]

plan, the State educational agency shall prohibit the local educational

agency from reducing the local educational agency's maintenance of

effort under section 613(a)(2)(C) for any fiscal year.

``(g) Rule of Construction.--Nothing in this section shall be

construed to restrict the Secretary from utilizing any authority under

the General Education Provisions Act to monitor and enforce the

requirements of this title.

``(h) Divided State Agency Responsibility.--For purposes of this

section, where responsibility for ensuring that the requirements of this

part are met with respect to children with disabilities who are

convicted as adults under State law and incarcerated in adult prisons is

assigned to a public agency other than the State educational agency

pursuant to section 612(a)(11)(C), the Secretary, in instances where the

Secretary finds that the failure to comply substantially with the

provisions of this part are related to a failure by the public agency,

shall take appropriate corrective action to ensure compliance with this

part, except that--

``(1) any reduction or withholding of payments to the State

shall be proportionate to the total funds allotted under section

611 to the State as the number of eligible children with

disabilities in adult prisons under the supervision of the other

public agency is proportionate to the number of eligible

individuals with disabilities in the State under the supervision

of the State educational agency; and

``(2) any withholding of funds under paragraph (1) shall be

limited to the specific agency responsible for the failure to

comply with this part.

``(i) Data Capacity and Technical Assistance Review.--The Secretary

shall--

``(1) review the data collection and analysis capacity of

States to ensure that data and information determined necessary

for implementation of this section is collected, analyzed, and

accurately reported to the Secretary; and

``(2) provide technical assistance (from funds reserved

under section 611(c)), where needed, to improve the capacity of

States to meet the data collection requirements.

``SEC. 617. <<NOTE: 20 USC 1417.>> ADMINISTRATION.

``(a) Responsibilities of Secretary.--The Secretary shall--

``(1) cooperate with, and (directly or by grant or contract)

furnish technical assistance necessary to, a State in matters

relating to--

``(A) the education of children with disabilities;

and

``(B) carrying out this part; and

``(2) provide short-term training programs and institutes.

``(b) Prohibition Against Federal Mandates, Direction, or Control.--

Nothing in this title shall be construed to authorize an officer or

employee of the Federal Government to mandate, direct, or control a

State, local educational agency, or school's specific instructional

content, academic achievement standards and assessments, curriculum, or

program of instruction.

``(c) Confidentiality.--The Secretary shall take appropriate action,

in accordance with section 444 of the General Education Provisions Act,

to ensure the protection of the confidentiality of any personally

identifiable data, information, and records collected or maintained by

the Secretary and by State educational agencies and local educational

agencies pursuant to this part.

[[Page 118 STAT. 2738]]

``(d) Personnel.--The Secretary is authorized to hire qualified

personnel necessary to carry out the Secretary's duties under subsection

(a), under section 618, and under subpart 4 of part D, 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 20 such

personnel shall be employed at any time.

``(e) <<NOTE: Deadline. Public information.>> Model Forms.--Not

later than the date that the Secretary publishes final regulations under

this title, to implement amendments made by the Individuals with

Disabilities Education Improvement Act of 2004, the Secretary shall

publish and disseminate widely to States, local educational agencies,

and parent and community training and information centers--

``(1) a model IEP form;

``(2) a model individualized family service plan (IFSP)

form;

``(3) a model form of the notice of procedural safeguards

described in section 615(d); and

``(4) a model form of the prior written notice described in

subsections (b)(3) and (c)(1) of section 615 that is consistent

with the requirements of this part and is sufficient to meet

such requirements.

``SEC. 618. <<NOTE: 20 USC 1418.>> PROGRAM INFORMATION.

``(a) In General.--Each State that receives assistance under this

part, and the Secretary of the Interior, shall provide data each year to

the Secretary of Education and the public on the following:

``(1)(A) The number and percentage of children with

disabilities, by race, ethnicity, limited English proficiency

status, gender, and disability category, who are in each of the

following separate categories:

``(i) Receiving a free appropriate public education.

``(ii) Participating in regular education.

``(iii) In separate classes, separate schools or

facilities, or public or private residential facilities.

``(iv) For each year of age from age 14 through 21,

stopped receiving special education and related services

because of program completion (including graduation with

a regular secondary school diploma), or other reasons,

and the reasons why those children stopped receiving

special education and related services.

``(v)(I) Removed to an interim alternative

educational setting under section 615(k)(1).

``(II) The acts or items precipitating those

removals.

``(III) The number of children with

disabilities who are subject to long-term

suspensions or expulsions.

``(B) The number and percentage of children with

disabilities, by race, gender, and ethnicity, who are receiving

early intervention services.

``(C) The number and percentage of children with

disabilities, by race, gender, and ethnicity, who, from birth

through age 2, stopped receiving early intervention services

because of program completion or for other reasons.

[[Page 118 STAT. 2739]]

``(D) The incidence and duration of disciplinary actions by

race, ethnicity, limited English proficiency status, gender, and

disability category, of children with disabilities, including

suspensions of 1 day or more.

``(E) The number and percentage of children with

disabilities who are removed to alternative educational settings

or expelled as compared to children without disabilities who are

removed to alternative educational settings or expelled.

``(F) The number of due process complaints filed under

section 615 and the number of hearings conducted.

``(G) The number of hearings requested under section 615(k)

and the number of changes in placements ordered as a result of

those hearings.

``(H) The number of mediations held and the number of

settlement agreements reached through such mediations.

``(2) The number and percentage of infants and toddlers, by

race, and ethnicity, who are at risk of having substantial

developmental delays (as defined in section 632), and who are

receiving early intervention services under part C.

``(3) Any other information that may be required by the

Secretary.

``(b) Data Reporting.--

``(1) Protection of identifiable data.--The data described

in subsection (a) shall be publicly reported by each State in a

manner that does not result in the disclosure of data

identifiable to individual children.

``(2) Sampling.--The Secretary may permit States and the

Secretary of the Interior to obtain the data described in

subsection (a) through sampling.

``(c) Technical Assistance.--The Secretary may provide technical

assistance to States to ensure compliance with the data collection and

reporting requirements under this title.

``(d) Disproportionality.--

``(1) In general.--Each State that receives assistance under

this part, and the Secretary of the Interior, shall provide for

the collection and examination of data to determine if

significant disproportionality based on race and ethnicity is

occurring in the State and the local educational agencies of the

State with respect to--

``(A) the identification of children as children

with disabilities, including the identification of

children as children with disabilities in accordance

with a particular impairment described in section

602(3);

``(B) the placement in particular educational

settings of such children; and

``(C) the incidence, duration, and type of

disciplinary actions, including suspensions and

expulsions.

``(2) Review and revision of policies, practices, and

procedures.--In the case of a determination of significant

disproportionality with respect to the identification of

children as children with disabilities, or the placement in

particular educational settings of such children, in accordance

with paragraph (1), the State or the Secretary of the Interior,

as the case may be, shall--

``(A) 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,

[[Page 118 STAT. 2740]]

procedures, and practices comply with the requirements

of this title;

``(B) require any local educational agency

identified under paragraph (1) to reserve the maximum

amount of funds under section 613(f) to provide

comprehensive coordinated early intervening services to

serve children in the local educational agency,

particularly children in those groups that were

significantly overidentified under paragraph (1); and

``(C) require the local educational agency to

publicly report on the revision of policies, practices,

and procedures described under subparagraph (A).

``SEC. 619. <<NOTE: 20 USC 1419.>> PRESCHOOL GRANTS.

``(a) In General.--The Secretary shall provide grants under this

section to assist States to provide special education and related

services, in accordance with this part--

``(1) to children with disabilities aged 3 through 5,

inclusive; and

``(2) at the State's discretion, to 2-year-old children with

disabilities who will turn 3 during the school year.

``(b) Eligibility.--A State shall be eligible for a grant under this

section if such State--

``(1) is eligible under section 612 to receive a grant under

this part; and

``(2) makes a free appropriate public education available to

all children with disabilities, aged 3 through 5, residing in

the State.

``(c) Allocations to States.--

``(1) In general.--The Secretary shall allocate the amount

made available to carry out this section for a fiscal year among

the States in accordance with paragraph (2) or (3), as the case

may be.

``(2) Increase in funds.--If the amount available for

allocations to States under paragraph (1) for a fiscal year is

equal to or greater than the amount allocated to the States

under this section for the preceding fiscal year, those

allocations shall be calculated as follows:

``(A) Allocation.--

``(i) In general.--Except as provided in

subparagraph (B), the Secretary shall--

``(I) allocate to each State the

amount the State received under this

section for fiscal year 1997;

``(II) allocate 85 percent of any

remaining funds to States on the basis

of the States' relative populations of

children aged 3 through 5; and

``(III) allocate 15 percent of those

remaining funds to States on the basis

of the States' relative populations of

all children aged 3 through 5 who are

living in poverty.

``(ii) Data.--For the purpose of making grants

under this paragraph, the Secretary shall use the

most recent population data, including data on

children living in poverty, that are available and

satisfactory to the Secretary.

[[Page 118 STAT. 2741]]

``(B) Limitations.--Notwithstanding subparagraph

(A), allocations under this paragraph shall be subject

to the following:

``(i) Preceding years.--No State's allocation

shall be less than its allocation under this

section for the preceding fiscal year.

``(ii) Minimum.--No State's allocation shall

be less than the greatest of--

``(I) the sum of--

``(aa) the amount the State

received under this section for

fiscal year 1997; and

``(bb) 1/3 of 1 percent of

the amount by which the amount

appropriated under subsection

(j) for the fiscal year exceeds

the amount appropriated for this

section for fiscal year 1997;

``(II) the sum of--

``(aa) the amount the State

received under this section for

the preceding fiscal year; and

``(bb) that amount

multiplied by the percentage by

which the increase in the funds

appropriated under this section

from the preceding fiscal year

exceeds 1.5 percent; or

``(III) the sum of--

``(aa) the amount the State

received under this section for

the preceding fiscal year; and

``(bb) that amount

multiplied by 90 percent of the

percentage increase in the

amount appropriated under this

section from the preceding

fiscal year.

``(iii) Maximum.--Notwithstanding clause (ii),

no State's allocation under this paragraph shall

exceed the sum of--

``(I) the amount the State received

under this section for the preceding

fiscal year; and

``(II) that amount multiplied by the

sum of 1.5 percent and the percentage

increase in the amount appropriated

under this section from the preceding

fiscal year.

``(C) Ratable reductions.--If the amount available

for allocations under this paragraph is insufficient to

pay those allocations in full, those allocations shall

be ratably reduced, subject to subparagraph (B)(i).

``(3) Decrease in funds.--If the amount available for

allocations to States under paragraph (1) 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) Allocations.--If the amount available for

allocations is greater than the amount allocated to the

States for fiscal year 1997, each State shall be

allocated the sum of--

``(i) the amount the State received under this

section for fiscal year 1997; and

``(ii) an amount that bears the same relation

to any remaining funds as the increase the State

received under this section for the preceding

fiscal year over

[[Page 118 STAT. 2742]]

fiscal year 1997 bears to the total of all such

increases for all States.

``(B) Ratable reductions.--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 the State received for

fiscal year 1997, ratably reduced, if necessary.

``(d) Reservation for State Activities.--

``(1) In general.--Each State may reserve not more than the

amount described in paragraph (2) for administration and other

State-level activities in accordance with subsections (e) and

(f).

``(2) <<NOTE: Reports.>> Amount described.--For each fiscal

year, the Secretary shall determine and report to the State

educational agency an amount that is 25 percent of the amount

the State received under this section for fiscal year 1997,

cumulatively adjusted by the Secretary for each succeeding

fiscal year by the lesser of--

``(A) the percentage increase, if any, from the

preceding fiscal year in the State's allocation under

this section; or

``(B) the percentage increase, if any, from the

preceding fiscal year in the Consumer Price Index For

All Urban Consumers published by the Bureau of Labor

Statistics of the Department of Labor.

``(e) State Administration.--

``(1) In general.--For the purpose of administering this

section (including the coordination of activities under this

part with, and providing technical assistance to, other programs

that provide services to children with disabilities) a State may

use not more than 20 percent of the maximum amount the State may

reserve under subsection (d) for any fiscal year.

``(2) Administration of part c.--Funds described in

paragraph (1) may also be used for the administration of part C.

``(f) Other State-Level Activities.--Each State shall use any funds

the State reserves under subsection (d) and does not use for

administration under subsection (e)--

``(1) for support services (including establishing and

implementing the mediation process required by section 615(e)),

which may benefit children with disabilities younger than 3 or

older than 5 as long as those services also benefit children

with disabilities aged 3 through 5;

``(2) for direct services for children eligible for services

under this section;

``(3) for activities at the State and local levels to meet

the performance goals established by the State under section

612(a)(15);

``(4) to supplement other funds used to develop and

implement a statewide coordinated services system designed to

improve results for children and families, including children

with disabilities and their families, but not more than 1

percent of the amount received by the State under this section

for a fiscal year;

``(5) to provide early intervention services (which shall

include an educational component that promotes school readiness

and incorporates preliteracy, language, and numeracy

[[Page 118 STAT. 2743]]

skills) in accordance with part C to children with disabilities

who are eligible for services under this section and who

previously received services under part C until such children

enter, or are eligible under State law to enter, kindergarten;

or

``(6) at the State's discretion, to continue service

coordination or case management for families who receive

services under part C.

``(g) Subgrants to Local Educational Agencies.--

``(1) Subgrants required.--Each State that receives a grant

under this section for any fiscal year shall distribute all of

the grant funds that the State does not reserve under subsection

(d) to local educational agencies in the State that have

established their eligibility under section 613, as follows:

``(A) Base payments.--The State shall first award

each local educational agency described in paragraph (1)

the amount that agency would have received under this

section for fiscal year 1997 if the State had

distributed 75 percent of its grant for that year under

section 619(c)(3), as such section was then in effect.

``(B) Allocation of remaining funds.--After making

allocations under subparagraph (A), the State shall--

``(i) allocate 85 percent of any remaining

funds to those local educational agencies on the

basis of the relative numbers of children enrolled

in public and private elementary schools and

secondary schools within the local educational

agency's jurisdiction; and

``(ii) allocate 15 percent of those remaining

funds to those local educational agencies in

accordance with their relative numbers of children

living in poverty, as determined by the State

educational agency.

``(2) Reallocation of funds.--If a State educational agency

determines that a local educational agency is adequately

providing a free appropriate public education to all children

with disabilities aged 3 through 5 residing in the area served

by the local educational agency with State and local funds, the

State educational agency may reallocate any portion of the funds

under this section that are not needed by that local educational

agency to provide a free appropriate public education to other

local educational agencies in the State that are not adequately

providing special education and related services to all children

with disabilities aged 3 through 5 residing in the areas the

other local educational agencies serve.

``(h) Part C Inapplicable.--Part C 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) State Defined.--In 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.--There are authorized to be

appropriated to carry out this section such sums as may be necessary.

[[Page 118 STAT. 2744]]

``PART C--INFANTS AND TODDLERS WITH DISABILITIES

``SEC. 631. <<NOTE: 20 USC 1431.>> FINDINGS AND POLICY.

``(a) Findings.--Congress finds that there is an urgent and

substantial need--

``(1) to enhance the development of infants and toddlers

with disabilities, to minimize their potential for developmental

delay, and to recognize the significant brain development that

occurs during a child's first 3 years of life;

``(2) to reduce the educational costs to our society,

including our Nation's schools, by minimizing the need for

special education and related services after infants and

toddlers with disabilities reach school age;

``(3) to maximize the potential for individuals with

disabilities to live independently in society;

``(4) to enhance the capacity of families to meet the

special needs of their infants and toddlers with disabilities;

and

``(5) to enhance the capacity of State and local agencies

and service providers to identify, evaluate, and meet the needs

of all children, particularly minority, low-income, inner city,

and rural children, and infants and toddlers in foster care.

``(b) Policy.--It is the policy of the United States to provide

financial assistance to States--

``(1) to develop and implement a statewide, comprehensive,

coordinated, multidisciplinary, interagency system that provides

early intervention services for infants and toddlers with

disabilities and their families;

``(2) to facilitate the coordination of payment for early

intervention services from Federal, State, local, and private

sources (including public and private insurance coverage);

``(3) to enhance State capacity to provide quality early

intervention services and expand and improve existing early

intervention services being provided to infants and toddlers

with disabilities and their families; and

``(4) to encourage States to expand opportunities for

children under 3 years of age who would be at risk of having

substantial developmental delay if they did not receive early

intervention services.

``SEC. 632. <<NOTE: 20 USC 1432.>> DEFINITIONS.

``In this part:

``(1) At-risk infant or toddler.--The term `at-risk infant

or toddler' means an individual under 3 years of age who would

be at risk of experiencing a substantial developmental delay if

early intervention services were not provided to the individual.

``(2) Council.--The term `council' means a State interagency

coordinating council established under section 641.

``(3) Developmental delay.--The term `developmental delay',

when used with respect to an individual residing in a State, has

the meaning given such term by the State under section

635(a)(1).

``(4) Early intervention services.--The term `early

intervention services' means developmental services that--

``(A) are provided under public supervision;

[[Page 118 STAT. 2745]]

``(B) are provided at no cost except where Federal

or State law provides for a system of payments by

families, including a schedule of sliding fees;

``(C) are designed to meet the developmental needs

of an infant or toddler with a disability, as identified

by the individualized family service plan team, in any 1

or more of the following areas:

``(i) physical development;

``(ii) cognitive development;

``(iii) communication development;

``(iv) social or emotional development; or

``(v) adaptive development;

``(D) meet the standards of the State in which the

services are provided, including the requirements of

this part;

``(E) include--

``(i) family training, counseling, and home

visits;

``(ii) special instruction;

``(iii) speech-language pathology and

audiology services, and sign language and cued

language services;

``(iv) occupational therapy;

``(v) physical therapy;

``(vi) psychological services;

``(vii) service coordination services;

``(viii) medical services only for diagnostic

or evaluation purposes;

``(ix) early identification, screening, and

assessment services;

``(x) health services necessary to enable the

infant or toddler to benefit from the other early

intervention services;

``(xi) social work services;

``(xii) vision services;

``(xiii) assistive technology devices and

assistive technology services; and

``(xiv) transportation and related costs that

are necessary to enable an infant or toddler and

the infant's or toddler's family to receive

another service described in this paragraph;

``(F) are provided by qualified personnel,

including--

``(i) special educators;

``(ii) speech-language pathologists and

audiologists;

``(iii) occupational therapists;

``(iv) physical therapists;

``(v) psychologists;

``(vi) social workers;

``(vii) nurses;

``(viii) registered dietitians;

``(ix) family therapists;

``(x) vision specialists, including

ophthalmologists and optometrists;

``(xi) orientation and mobility specialists;

and

``(xii) pediatricians and other physicians;

``(G) to the maximum extent appropriate, are

provided in natural environments, including the home,

and community settings in which children without

disabilities participate; and

[[Page 118 STAT. 2746]]

``(H) are provided in conformity with an

individualized family service plan adopted in accordance

with section 636.

``(5) Infant or toddler with a disability.--The term `infant

or toddler with a disability'--

``(A) means an individual under 3 years of age who

needs early intervention services because the

individual--

``(i) is experiencing developmental delays, as

measured by appropriate diagnostic instruments and

procedures in 1 or more of the areas of cognitive

development, physical development, communication

development, social or emotional development, and

adaptive development; or

``(ii) has a diagnosed physical or mental

condition that has a high probability of resulting

in developmental delay; and

``(B) may also include, at a State's discretion--

``(i) at-risk infants and toddlers; and

``(ii) children with disabilities who are

eligible for services under section 619 and who

previously received services under this part until

such children enter, or are eligible under State

law to enter, kindergarten or elementary school,

as appropriate, provided that any programs under

this part serving such children shall include--

``(I) an educational component that

promotes school readiness and

incorporates pre-literacy, language, and

numeracy skills; and

``(II) a written notification to

parents of their rights and

responsibilities in determining whether

their child will continue to receive

services under this part or participate

in preschool programs under section 619.

``SEC. 633. <<NOTE: Grants. 20 USC 1433.>> GENERAL AUTHORITY.

``The Secretary shall, in accordance with this part, make grants to

States (from their allotments under section 643) to assist each State to

maintain and implement a statewide, comprehensive, coordinated,

multidisciplinary, interagency system to provide early intervention

services for infants and toddlers with disabilities and their families.

``SEC. 634. <<NOTE: 20 USC 1434.>> ELIGIBILITY.

``In order to be eligible for a grant under section 633, a State

shall provide assurances to the Secretary that the State--

``(1) has adopted a policy that appropriate early

intervention services are available to all infants and toddlers

with disabilities in the State and their families, including

Indian infants and toddlers with disabilities and their families

residing on a reservation geographically located in the State,

infants and toddlers with disabilities who are homeless children

and their families, and infants and toddlers with disabilities

who are wards of the State; and

``(2) has in effect a statewide system that meets the

requirements of section 635.

[[Page 118 STAT. 2747]]

``SEC. 635. <<NOTE: 20 USC 1435.>> REQUIREMENTS FOR STATEWIDE SYSTEM.

``(a) In General.--A statewide system described in section 633 shall

include, at a minimum, the following components:

``(1) A rigorous definition of the term `developmental

delay' that will be used by the State in carrying out programs

under this part in order to appropriately identify infants and

toddlers with disabilities that are in need of services under

this part.

``(2) A State policy that is in effect and that ensures that

appropriate early intervention services based on scientifically

based research, to the extent practicable, are available to all

infants and toddlers with disabilities and their families,

including Indian infants and toddlers with disabilities and

their families residing on a reservation geographically located

in the State and infants and toddlers with disabilities who are

homeless children and their families.

``(3) A timely, comprehensive, multidisciplinary evaluation

of the functioning of each infant or toddler with a disability

in the State, and a family-directed identification of the needs

of each family of such an infant or toddler, to assist

appropriately in the development of the infant or toddler.

``(4) For each infant or toddler with a disability in the

State, an individualized family service plan in accordance with

section 636, including service coordination services in

accordance with such service plan.

``(5) A comprehensive child find system, consistent with

part B, including a system for making referrals to service

providers that includes timelines and provides for participation

by primary referral sources and that ensures rigorous standards

for appropriately identifying infants and toddlers with

disabilities for services under this part that will reduce the

need for future services.

``(6) A public awareness program focusing on early

identification of infants and toddlers with disabilities,

including the preparation and dissemination by the lead agency

designated or established under paragraph (10) to all primary

referral sources, especially hospitals and physicians, of

information to be given to parents, especially to inform parents

with premature infants, or infants with other physical risk

factors associated with learning or developmental complications,

on the availability of early intervention services under this

part and of services under section 619, and procedures for

assisting such sources in disseminating such information to

parents of infants and toddlers with disabilities.

``(7) A central directory that includes information on early

intervention services, resources, and experts available in the

State and research and demonstration projects being conducted in

the State.

``(8) A comprehensive system of personnel development,

including the training of paraprofessionals and the training of

primary referral sources with respect to the basic components of

early intervention services available in the State that--

``(A) shall include--

``(i) implementing innovative strategies and

activities for the recruitment and retention of

early education service providers;

``(ii) promoting the preparation of early

intervention providers who are fully and

appropriately qualified

[[Page 118 STAT. 2748]]

to provide early intervention services under this

part; and

``(iii) training personnel to coordinate

transition services for infants and toddlers

served under this part from a program providing

early intervention services under this part and

under part B (other than section 619), to a

preschool program receiving funds under section

619, or another appropriate program; and

``(B) may include--

``(i) training personnel to work in rural and

inner-city areas; and

``(ii) training personnel in the emotional and

social development of young children.

``(9) Policies and procedures relating to the establishment

and maintenance of qualifications to ensure that personnel

necessary to carry out this part are appropriately and

adequately prepared and trained, including the establishment and

maintenance of qualifications that are consistent with any

State-approved or recognized certification, licensing,

registration, or other comparable requirements that apply to the

area in which such personnel are providing early intervention

services, except that nothing in this part (including this

paragraph) shall be construed to prohibit the use of

paraprofessionals and assistants who are appropriately trained

and supervised in accordance with State law, regulation, or

written policy, to assist in the provision of early intervention

services under this part to infants and toddlers with

disabilities.

``(10) A single line of responsibility in a lead agency

designated or established by the Governor for carrying out--

``(A) the general administration and supervision of

programs and activities receiving assistance under

section 633, and the monitoring of programs and

activities used by the State to carry out this part,

whether or not such programs or activities are receiving

assistance made available under section 633, to ensure

that the State complies with this part;

``(B) the identification and coordination of all

available resources within the State from Federal,

State, local, and private sources;

``(C) the assignment of financial responsibility in

accordance with section 637(a)(2) to the appropriate

agencies;

``(D) the development of procedures to ensure that

services are provided to infants and toddlers with

disabilities and their families under this part in a

timely manner pending the resolution of any disputes

among public agencies or service providers;

``(E) the resolution of intra- and interagency

disputes; and

``(F) the entry into formal interagency agreements

that define the financial responsibility of each agency

for paying for early intervention services (consistent

with State law) and procedures for resolving disputes

and that include all additional components necessary to

ensure meaningful cooperation and coordination.

[[Page 118 STAT. 2749]]

``(11) A policy pertaining to the contracting or making of

other arrangements with service providers to provide early

intervention services in the State, consistent with the

provisions of this part, including the contents of the

application used and the conditions of the contract or other

arrangements.

``(12) A procedure for securing timely reimbursements of

funds used under this part in accordance with section 640(a).

``(13) Procedural safeguards with respect to programs under

this part, as required by section 639.

``(14) A system for compiling data requested by the

Secretary under section 618 that relates to this part.

``(15) A State interagency coordinating council that meets

the requirements of section 641.

``(16) Policies and procedures to ensure that, consistent

with section 636(d)(5)--

``(A) to the maximum extent appropriate, early

intervention services are provided in natural

environments; and

``(B) the provision of early intervention services

for any infant or toddler with a disability occurs in a

setting other than a natural environment that is most

appropriate, as determined by the parent and the

individualized family service plan team, only when early

intervention cannot be achieved satisfactorily for the

infant or toddler in a natural environment.

``(b) Policy.--In implementing subsection (a)(9), a State may adopt

a policy that includes making ongoing good-faith efforts to recruit and

hire appropriately and adequately trained personnel to provide early

intervention services to infants and toddlers with disabilities,

including, in a geographic area of the State where there is a shortage

of such personnel, the most qualified individuals available who are

making satisfactory progress toward completing applicable course work

necessary to meet the standards described in subsection (a)(9).

``(c) Flexibility To Serve Children 3 Years of Age Until Entrance

Into Elementary School.--

``(1) In general.--A statewide system described in section

633 may include a State policy, developed and implemented

jointly by the lead agency and the State educational agency,

under which parents of children with disabilities who are

eligible for services under section 619 and previously received

services under this part, may choose the continuation of early

intervention services (which shall include an educational

component that promotes school readiness and incorporates

preliteracy, language, and numeracy skills) for such children

under this part until such children enter, or are eligible under

State law to enter, kindergarten.

``(2) Requirements.--If a statewide system includes a State

policy described in paragraph (1), the statewide system shall

ensure that--

``(A) parents of children with disabilities served

pursuant to this subsection are provided annual notice

that contains--

``(i) a description of the rights of such

parents to elect to receive services pursuant to

this subsection or under part B; and

[[Page 118 STAT. 2750]]

``(ii) an explanation of the differences

between services provided pursuant to this

subsection and services provided under part B,

including--

``(I) types of services and the

locations at which the services are

provided;

``(II) applicable procedural

safeguards; and

``(III) possible costs (including

any fees to be charged to families as

described in section 632(4)(B)), if any,

to parents of infants or toddlers with

disabilities;

``(B) services provided pursuant to this subsection

include an educational component that promotes school

readiness and incorporates preliteracy, language, and

numeracy skills;

``(C) the State policy will not affect the right of

any child served pursuant to this subsection to instead

receive a free appropriate public education under part

B;

``(D) all early intervention services outlined in

the child's individualized family service plan under

section 636 are continued while any eligibility

determination is being made for services under this

subsection;

``(E) the parents of infants or toddlers with

disabilities (as defined in section 632(5)(A)) provide

informed written consent to the State, before such

infants or toddlers reach 3 years of age, as to whether

such parents intend to choose the continuation of early

intervention services pursuant to this subsection for

such infants or toddlers;

``(F) the requirements under section 637(a)(9) shall

not apply with respect to a child who is receiving

services in accordance with this subsection until not

less than 90 days (and at the discretion of the parties

to the conference, not more than 9 months) before the

time the child will no longer receive those services;

and

``(G) there will be a referral for evaluation for

early intervention services of a child who experiences a

substantiated case of trauma due to exposure to family

violence (as defined in section 320 of the Family

Violence Prevention and Services Act).

``(3) Reporting requirement.--If a statewide system includes

a State policy described in paragraph (1), the State shall

submit to the Secretary, in the State's report under section

637(b)(4)(A), a report on the number and percentage of children

with disabilities who are eligible for services under section

619 but whose parents choose for such children to continue to

receive early intervention services under this part.

``(4) Available funds.--If a statewide system includes a

State policy described in paragraph (1), the policy shall

describe the funds (including an identification as Federal,

State, or local funds) that will be used to ensure that the

option described in paragraph (1) is available to eligible

children and families who provide the consent described in

paragraph (2)(E), including fees (if any) to be charged to

families as described in section 632(4)(B).

``(5) Rules of construction.--

``(A) Services under part b.--If a statewide system

includes a State policy described in paragraph (1), a

State that provides services in accordance with this

subsection

[[Page 118 STAT. 2751]]

to a child with a disability who is eligible for

services under section 619 shall not be required to

provide the child with a free appropriate public

education under part B for the period of time in which

the child is receiving services under this part.

``(B) Services under this part.--Nothing in this

subsection shall be construed to require a provider of

services under this part to provide a child served under

this part with a free appropriate public education.

``SEC. 636. <<NOTE: 20 USC 1436.>> INDIVIDUALIZED FAMILY SERVICE PLAN.

``(a) Assessment and Program Development.--A statewide system

described in section 633 shall provide, at a minimum, for each infant or

toddler with a disability, and the infant's or toddler's family, to

receive--

``(1) a multidisciplinary assessment of the unique strengths

and needs of the infant or toddler and the identification of

services appropriate to meet such needs;

``(2) a family-directed assessment of the resources,

priorities, and concerns of the family and the identification of

the supports and services necessary to enhance the family's

capacity to meet the developmental needs of the infant or

toddler; and

``(3) a written individualized family service plan developed

by a multidisciplinary team, including the parents, as required

by subsection (e), including a description of the appropriate

transition services for the infant or toddler.

``(b) Periodic Review.--The individualized family service plan shall

be evaluated once a year and the family shall be provided a review of

the plan at 6-month intervals (or more often where appropriate based on

infant or toddler and family needs).

``(c) Promptness After Assessment.--The individualized family

service plan shall be developed within a reasonable time after the

assessment required by subsection (a)(1) is completed. With the parents'

consent, early intervention services may commence prior to the

completion of the assessment.

``(d) Content of Plan.--The individualized family service plan shall

be in writing and contain--

``(1) a statement of the infant's or toddler's present

levels of physical development, cognitive development,

communication development, social or emotional development, and

adaptive development, based on objective criteria;

``(2) a statement of the family's resources, priorities, and

concerns relating to enhancing the development of the family's

infant or toddler with a disability;

``(3) a statement of the measurable results or outcomes

expected to be achieved for the infant or toddler and the

family, including pre-literacy and language skills, as

developmentally appropriate for the child, and the criteria,

procedures, and timelines used to determine the degree to which

progress toward achieving the results or outcomes is being made

and whether modifications or revisions of the results or

outcomes or services are necessary;

``(4) a statement of specific early intervention services

based on peer-reviewed research, to the extent practicable,

necessary to meet the unique needs of the infant or toddler and

the family, including the frequency, intensity, and method of

delivering services;

[[Page 118 STAT. 2752]]

``(5) a statement of the natural environments in which early

intervention services will appropriately be provided, including

a justification of the extent, if any, to which the services

will not be provided in a natural environment;

``(6) the projected dates for initiation of services and the

anticipated length, duration, and frequency of the services;

``(7) the identification of the service coordinator from the

profession most immediately relevant to the infant's or

toddler's or family's needs (or who is otherwise qualified to

carry out all applicable responsibilities under this part) who

will be responsible for the implementation of the plan and

coordination with other agencies and persons, including

transition services; and

``(8) the steps to be taken to support the transition of the

toddler with a disability to preschool or other appropriate

services.

``(e) Parental Consent.--The contents of the individualized family

service plan shall be fully explained to the parents and informed

written consent from the parents shall be obtained prior to the

provision of early intervention services described in such plan. If the

parents do not provide consent with respect to a particular early

intervention service, then only the early intervention services to which

consent is obtained shall be provided.

``SEC. 637. <<NOTE: 20 USC 1437.>> STATE APPLICATION AND ASSURANCES.

``(a) Application.--A State desiring to receive a grant under

section 633 shall submit an application to the Secretary at such time

and in such manner as the Secretary may reasonably require. The

application shall contain--

``(1) a designation of the lead agency in the State that

will be responsible for the administration of funds provided

under section 633;

``(2) a certification to the Secretary that the arrangements

to establish financial responsibility for services provided

under this part pursuant to section 640(b) are current as of the

date of submission of the certification;

``(3) information demonstrating eligibility of the State

under section 634, including--

``(A) information demonstrating to the Secretary's

satisfaction that the State has in effect the statewide

system required by section 633; and

``(B) a description of services to be provided to

infants and toddlers with disabilities and their

families through the system;

``(4) if the State provides services to at-risk infants and

toddlers through the statewide system, a description of such

services;

``(5) a description of the uses for which funds will be

expended in accordance with this part;

``(6) a description of the State policies and procedures

that require the referral for early intervention services under

this part of a child under the age of 3 who--

``(A) is involved in a substantiated case of child

abuse or neglect; or

``(B) is identified as affected by illegal substance

abuse, or withdrawal symptoms resulting from prenatal

drug exposure;

[[Page 118 STAT. 2753]]

``(7) a description of the procedure used to ensure that

resources are made available under this part for all geographic

areas within the State;

``(8) a description of State policies and procedures that

ensure that, prior to the adoption by the State of any other

policy or procedure necessary to meet the requirements of this

part, there are public hearings, adequate notice of the

hearings, and an opportunity for comment available to the

general public, including individuals with disabilities and

parents of infants and toddlers with disabilities;

``(9) a description of the policies and procedures to be

used--

``(A) to ensure a smooth transition for toddlers

receiving early intervention services under this part

(and children receiving those services under section

635(c)) to preschool, school, other appropriate

services, or exiting the program, including a

description of how--

``(i) the families of such toddlers and

children will be included in the transition plans

required by subparagraph (C); and

``(ii) the lead agency designated or

established under section 635(a)(10) will--

``(I) notify the local educational

agency for the area in which such a

child resides that the child will

shortly reach the age of eligibility for

preschool services under part B, as

determined in accordance with State law;

``(II) in the case of a child who

may be eligible for such preschool

services, with the approval of the

family of the child, convene a

conference among the lead agency, the

family, and the local educational agency

not less than 90 days (and at the

discretion of all such parties, not more

than 9 months) before the child is

eligible for the preschool services, to

discuss any such services that the child

may receive; and

``(III) in the case of a child who

may not be eligible for such preschool

services, with the approval of the

family, make reasonable efforts to

convene a conference among the lead

agency, the family, and providers of

other appropriate services for children

who are not eligible for preschool

services under part B, to discuss the

appropriate services that the child may

receive;

``(B) to review the child's program options for the

period from the child's third birthday through the

remainder of the school year; and

``(C) to establish a transition plan, including, as

appropriate, steps to exit from the program;

``(10) a description of State efforts to promote

collaboration among Early Head Start programs under section 645A

of the Head Start Act, early education and child care programs,

and services under part C; and

``(11) such other information and assurances as the

Secretary may reasonably require.

``(b) Assurances.--The application described in subsection (a)--

[[Page 118 STAT. 2754]]

``(1) shall provide satisfactory assurance that Federal

funds made available under section 643 to the State will be

expended in accordance with this part;

``(2) shall contain an assurance that the State will comply

with the requirements of section 640;

``(3) shall provide satisfactory assurance that the control

of funds provided under section 643, and title to property

derived from those funds, will be in a public agency for the

uses and purposes provided in this part and that a public agency

will administer such funds and property;

``(4) shall provide for--

``(A) making such reports in such form and

containing such information as the Secretary may require

to carry out the Secretary's functions under this part;

and

``(B) keeping such reports and affording such access

to the reports as the Secretary may find necessary to

ensure the correctness and verification of those reports

and proper disbursement of Federal funds under this

part;

``(5) provide satisfactory assurance that Federal funds made

available under section 643 to the State--

``(A) will not be commingled with State funds; and

``(B) will be used so as to supplement the level of

State and local funds expended for infants and toddlers

with disabilities and their families and in no case to

supplant those State and local funds;

``(6) shall provide satisfactory assurance that such fiscal

control and fund accounting procedures will be adopted as may be

necessary to ensure proper disbursement of, and accounting for,

Federal funds paid under section 643 to the State;

``(7) shall provide satisfactory assurance that policies and

procedures have been adopted to ensure meaningful involvement of

underserved groups, including minority, low-income, homeless,

and rural families and children with disabilities who are wards

of the State, in the planning and implementation of all the

requirements of this part; and

``(8) shall contain such other information and assurances as

the Secretary may reasonably require by regulation.

``(c) Standard for Disapproval of Application.--The Secretary may

not disapprove such an application unless the Secretary determines,

after notice and opportunity for a hearing, that the application fails

to comply with the requirements of this section.

``(d) Subsequent State Application.--If a State has on file with the

Secretary a policy, procedure, or assurance that demonstrates that the

State meets a requirement of this section, including any policy or

procedure filed under this part (as in effect before the date of

enactment of the Individuals with Disabilities Education Improvement Act

of 2004), the Secretary shall consider the State to have met the

requirement for purposes of receiving a grant under this part.

``(e) Modification of Application.--An application submitted by a

State in accordance with this section shall remain in effect until the

State submits to the Secretary such modifications as the State

determines necessary. This section shall apply to a modification of an

application to the same extent and in the same manner as this section

applies to the original application.

[[Page 118 STAT. 2755]]

``(f) Modifications Required by the Secretary.--The Secretary may

require a State to modify its application under this section, but only

to the extent necessary to ensure the State's compliance with this part,

if--

``(1) an amendment is made to this title, or a Federal

regulation issued under this title;

``(2) a new interpretation of this title is made by a

Federal court or the State's highest court; or

``(3) an official finding of noncompliance with Federal law

or regulations is made with respect to the State.

``SEC. 638. <<NOTE: 20 USC 1438.>> USES OF FUNDS.

``In addition to using funds provided under section 633 to maintain

and implement the statewide system required by such section, a State may

use such funds--

``(1) for direct early intervention services for infants and

toddlers with disabilities, and their families, under this part

that are not otherwise funded through other public or private

sources;

``(2) to expand and improve on services for infants and

toddlers and their families under this part that are otherwise

available;

``(3) to provide a free appropriate public education, in

accordance with part B, to children with disabilities from their

third birthday to the beginning of the following school year;

``(4) with the written consent of the parents, to continue

to provide early intervention services under this part to

children with disabilities from their 3rd birthday until such

children enter, or are eligible under State law to enter,

kindergarten, in lieu of a free appropriate public education

provided in accordance with part B; and

``(5) in any State that does not provide services for at-

risk infants and toddlers under section 637(a)(4), to strengthen

the statewide system by initiating, expanding, or improving

collaborative efforts related to at-risk infants and toddlers,

including establishing linkages with appropriate public or

private community-based organizations, services, and personnel

for the purposes of--

``(A) identifying and evaluating at-risk infants and

toddlers;

``(B) making referrals of the infants and toddlers

identified and evaluated under subparagraph (A); and

``(C) conducting periodic follow-up on each such

referral to determine if the status of the infant or

toddler involved has changed with respect to the

eligibility of the infant or toddler for services under

this part.

``SEC. 639. <<NOTE: 20 USC 1439.>> PROCEDURAL SAFEGUARDS.

``(a) Minimum Procedures.--The procedural safeguards required to be

included in a statewide system under section 635(a)(13) shall provide,

at a minimum, the following:

``(1) The timely administrative resolution of complaints by

parents. Any party aggrieved by the findings and decision

regarding an administrative complaint shall have the right to

bring a civil action with respect to the complaint in any State

court of competent jurisdiction or in a district court of the

United States without regard to the amount in controversy. In

any action brought under this paragraph, the court

[[Page 118 STAT. 2756]]

shall receive the records of the administrative proceedings,

shall hear additional evidence at the request of a party, and,

basing its decision on the preponderance of the evidence, shall

grant such relief as the court determines is appropriate.

``(2) The right to confidentiality of personally

identifiable information, including the right of parents to

written notice of and written consent to the exchange of such

information among agencies consistent with Federal and State

law.

``(3) The right of the parents to determine whether they,

their infant or toddler, or other family members will accept or

decline any early intervention service under this part in

accordance with State law without jeopardizing other early

intervention services under this part.

``(4) The opportunity for parents to examine records

relating to assessment, screening, eligibility determinations,

and the development and implementation of the individualized

family service plan.

``(5) Procedures to protect the rights of the infant or

toddler whenever the parents of the infant or toddler are not

known or cannot be found or the infant or toddler is a ward of

the State, including the assignment of an individual (who shall

not be an employee of the State lead agency, or other State

agency, and who shall not be any person, or any employee of a

person, providing early intervention services to the infant or

toddler or any family member of the infant or toddler) to act as

a surrogate for the parents.

``(6) Written prior notice to the parents of the infant or

toddler with a disability whenever the State agency or service

provider proposes to initiate or change, or refuses to initiate

or change, the identification, evaluation, or placement of the

infant or toddler with a disability, or the provision of

appropriate early intervention services to the infant or

toddler.

``(7) Procedures designed to ensure that the notice required

by paragraph (6) fully informs the parents, in the parents'

native language, unless it clearly is not feasible to do so, of

all procedures available pursuant to this section.

``(8) The right of parents to use mediation in accordance

with section 615, except that--

``(A) any reference in the section to a State

educational agency shall be considered to be a reference

to a State's lead agency established or designated under

section 635(a)(10);

``(B) any reference in the section to a local

educational agency shall be considered to be a reference

to a local service provider or the State's lead agency

under this part, as the case may be; and

``(C) any reference in the section to the provision

of a free appropriate public education to children with

disabilities shall be considered to be a reference to

the provision of appropriate early intervention services

to infants and toddlers with disabilities.

``(b) Services During Pendency of Proceedings.--During the pendency

of any proceeding or action involving a complaint by the parents of an

infant or toddler with a disability, unless the State agency and the

parents otherwise agree, the infant or toddler shall continue to receive

the appropriate early intervention

[[Page 118 STAT. 2757]]

services currently being provided or, if applying for initial services,

shall receive the services not in dispute.

``SEC. 640. <<NOTE: 20 USC 1440.>> PAYOR OF LAST RESORT.

``(a) Nonsubstitution.--Funds provided under section 643 may not be

used to satisfy a financial commitment for services that would have been

paid for from another public or private source, including any medical

program administered by the Secretary of Defense, but for the enactment

of this part, except that whenever considered necessary to prevent a

delay in the receipt of appropriate early intervention services by an

infant, toddler, or family in a timely fashion, funds provided under

section 643 may be used to pay the provider of services pending

reimbursement from the agency that has ultimate responsibility for the

payment.

``(b) Obligations Related to and Methods of Ensuring Services.--

``(1) Establishing financial responsibility for services.--

``(A) In general.--The Chief Executive Officer of a

State or designee of the officer shall ensure that an

interagency agreement or other mechanism for interagency

coordination is in effect between each public agency and

the designated lead agency, in order to ensure--

``(i) the provision of, and financial

responsibility for, services provided under this

part; and

``(ii) such services are consistent with the

requirements of section 635 and the State's

application pursuant to section 637, including the

provision of such services during the pendency of

any such dispute.

``(B) Consistency between agreements or mechanisms

under part b.--The Chief Executive Officer of a State or

designee of the officer shall ensure that the terms and

conditions of such agreement or mechanism are consistent

with the terms and conditions of the State's agreement

or mechanism under section 612(a)(12), where

appropriate.

``(2) Reimbursement for services by public agency.--

``(A) In general.--If a public agency other than an

educational agency fails to provide or pay for the

services pursuant to an agreement required under

paragraph (1), the local educational agency or State

agency (as determined by the Chief Executive Officer or

designee) shall provide or pay for the provision of such

services to the child.

``(B) Reimbursement.--Such local educational agency

or State agency is authorized to claim reimbursement for

the services from the public agency that failed to

provide or pay for such services and such public agency

shall reimburse the local educational agency or State

agency pursuant to the terms of the interagency

agreement or other mechanism required under paragraph

(1).

``(3) Special rule.--The requirements of paragraph (1) may

be met through--

``(A) State statute or regulation;

``(B) signed agreements between respective agency

officials that clearly identify the responsibilities of

each agency relating to the provision of services; or

[[Page 118 STAT. 2758]]

``(C) other appropriate written methods as

determined by the Chief Executive Officer of the State

or designee of the officer and approved by the Secretary

through the review and approval of the State's

application pursuant to section 637.

``(c) Reduction of Other Benefits.--Nothing in this part shall be

construed to permit the State to reduce medical or other assistance

available or to alter eligibility under title V of the Social Security

Act (relating to maternal and child health) or title XIX of the Social

Security Act (relating to medicaid for infants or toddlers with

disabilities) within the State.

``SEC. 641. <<NOTE: 20 USC 1441.>> STATE INTERAGENCY COORDINATING

COUNCIL.

``(a) Establishment.--

``(1) In general.--A State that desires to receive financial

assistance under this part shall establish a State interagency

coordinating council.

``(2) Appointment.--The council shall be appointed by the

Governor. In making appointments to the council, the Governor

shall ensure that the membership of the council reasonably

represents the population of the State.

``(3) Chairperson.--The Governor shall designate a member of

the council to serve as the chairperson of the council, or shall

require the council to so designate such a member. Any member of

the council who is a representative of the lead agency

designated under section 635(a)(10) may not serve as the

chairperson of the council.

``(b) Composition.--

``(1) In general.--The council shall be composed as follows:

``(A) Parents.--Not less than 20 percent of the

members shall be parents of infants or toddlers with

disabilities or children with disabilities aged 12 or

younger, with knowledge of, or experience with, programs

for infants and toddlers with disabilities. Not less

than 1 such member shall be a parent of an infant or

toddler with a disability or a child with a disability

aged 6 or younger.

``(B) Service providers.--Not less than 20 percent

of the members shall be public or private providers of

early intervention services.

``(C) State legislature.--Not less than 1 member

shall be from the State legislature.

``(D) Personnel preparation.--Not less than 1 member

shall be involved in personnel preparation.

``(E) Agency for early intervention services.--Not

less than 1 member shall be from each of the State

agencies involved in the provision of, or payment for,

early intervention services to infants and toddlers with

disabilities and their families and shall have

sufficient authority to engage in policy planning and

implementation on behalf of such agencies.

``(F) Agency for preschool services.--Not less than

1 member shall be from the State educational agency

responsible for preschool services to children with

disabilities and shall have sufficient authority to

engage in policy planning and implementation on behalf

of such agency.

[[Page 118 STAT. 2759]]

``(G) State medicaid agency.--Not less than 1 member

shall be from the agency responsible for the State

medicaid program.

``(H) Head start agency.--Not less than 1 member

shall be a representative from a Head Start agency or

program in the State.

``(I) Child care agency.--Not less than 1 member

shall be a representative from a State agency

responsible for child care.

``(J) Agency for health insurance.--Not less than 1

member shall be from the agency responsible for the

State regulation of health insurance.

``(K) Office of the coordinator of education of

homeless children and youth.--Not less than 1 member

shall be a representative designated by the Office of

Coordinator for Education of Homeless Children and

Youths.

``(L) State foster care representative.--Not less

than 1 member shall be a representative from the State

child welfare agency responsible for foster care.

``(M) Mental health agency.--Not less than 1 member

shall be a representative from the State agency

responsible for children's mental health.

``(2) Other members.--The council may include other members

selected by the Governor, including a representative from the

Bureau of Indian Affairs (BIA), or where there is no BIA-

operated or BIA-funded school, from the Indian Health Service or

the tribe or tribal council.

``(c) Meetings.--The council shall meet, at a minimum, on a

quarterly basis, and in such places as the council determines necessary.

The meetings shall be publicly announced, and, to the extent

appropriate, open and accessible to the general public.

``(d) Management Authority.--Subject to the approval of the

Governor, the council may prepare and approve a budget using funds under

this part to conduct hearings and forums, to reimburse members of the

council for reasonable and necessary expenses for attending council

meetings and performing council duties (including child care for parent

representatives), to pay compensation to a member of the council if the

member is not employed or must forfeit wages from other employment when

performing official council business, to hire staff, and to obtain the

services of such professional, technical, and clerical personnel as may

be necessary to carry out its functions under this part.

``(e) Functions of Council.--

``(1) Duties.--The council shall--

``(A) advise and assist the lead agency designated

or established under section 635(a)(10) in the

performance of the responsibilities set forth in such

section, particularly the identification of the sources

of fiscal and other support for services for early

intervention programs, assignment of financial

responsibility to the appropriate agency, and the

promotion of the interagency agreements;

``(B) advise and assist the lead agency in the

preparation of applications and amendments thereto;

``(C) advise and assist the State educational agency

regarding the transition of toddlers with disabilities

to preschool and other appropriate services; and

[[Page 118 STAT. 2760]]

``(D) <<NOTE: Reports.>> prepare and submit an

annual report to the Governor and to the Secretary on

the status of early intervention programs for infants

and toddlers with disabilities and their families

operated within the State.

``(2) Authorized activity.--The council may advise and

assist the lead agency and the State educational agency

regarding the provision of appropriate services for children

from birth through age 5. The council may advise appropriate

agencies in the State with respect to the integration of

services for infants and toddlers with disabilities and at-risk

infants and toddlers and their families, regardless of whether

at-risk infants and toddlers are eligible for early intervention

services in the State.

``(f) Conflict of Interest.--No member of the council shall cast a

vote on any matter that is likely to provide a direct financial benefit

to that member or otherwise give the appearance of a conflict of

interest under State law.

``SEC. 642. <<NOTE: Applicability. 20 USC 1442.>> FEDERAL

ADMINISTRATION.

``Sections 616, 617, and 618 shall, to the extent not inconsistent

with this part, apply to the program authorized by this part, except

that--

``(1) any reference in such sections to a State educational

agency shall be considered to be a reference to a State's lead

agency established or designated under section 635(a)(10);

``(2) any reference in such sections to a local educational

agency, educational service agency, or a State agency shall be

considered to be a reference to an early intervention service

provider under this part; and

``(3) any reference to the education of children with

disabilities or the education of all children with disabilities

shall be considered to be a reference to the provision of

appropriate early intervention services to infants and toddlers

with disabilities.

``SEC. 643. <<NOTE: 20 USC 1443.>> ALLOCATION OF FUNDS.

``(a) Reservation of Funds for Outlying Areas.--

``(1) In general.--From the sums appropriated to carry out

this part for any fiscal year, the Secretary may reserve not

more than 1 percent for payments to Guam, American Samoa, the

United States Virgin Islands, and the Commonwealth of the

Northern Mariana Islands in accordance with their respective

needs for assistance under this part.

``(2) Consolidation of funds.--The provisions of Public Law

95-134, permitting the consolidation of grants to the outlying

areas, shall not apply to funds those areas receive under this

part.

``(b) Payments to Indians.--

``(1) In general.--The Secretary shall, subject to this

subsection, make payments to the Secretary of the Interior to be

distributed to tribes, tribal organizations (as defined under

section 4 of the Indian Self-Determination and Education

Assistance Act), or consortia of the above entities for the

coordination of assistance in the provision of early

intervention services by the States to infants and toddlers with

disabilities and their families on reservations served by

elementary schools and secondary schools for Indian children

operated or funded by the Department of the Interior. The amount

of such payment

[[Page 118 STAT. 2761]]

for any fiscal year shall be 1.25 percent of the aggregate of

the amount available to all States under this part for such

fiscal year.

``(2) Allocation.--For each fiscal year, the Secretary of

the Interior shall distribute the entire payment received under

paragraph (1) by providing to each tribe, tribal organization,

or consortium an amount based on the number of infants and

toddlers residing on the reservation, as determined annually,

divided by the total of such children served by all tribes,

tribal organizations, or consortia.

``(3) Information.--To receive a payment under this

subsection, the tribe, tribal organization, or consortium shall

submit such information to the Secretary of the Interior as is

needed to determine the amounts to be distributed under

paragraph (2).

``(4) Use of funds.--The funds received by a tribe, tribal

organization, or consortium shall be used to assist States in

child find, screening, and other procedures for the early

identification of Indian children under 3 years of age and for

parent training. Such funds may also be used to provide early

intervention services in accordance with this part. Such

activities may be carried out directly or through contracts or

cooperative agreements with the Bureau of Indian Affairs, local

educational agencies, and other public or private nonprofit

organizations. The tribe, tribal organization, or consortium is

encouraged to involve Indian parents in the development and

implementation of these activities. The above entities shall, as

appropriate, make referrals to local, State, or Federal entities

for the provision of services or further diagnosis.

``(5) Reports.--To be eligible to receive a payment under

paragraph (2), a tribe, tribal organization, or consortium shall

make a biennial report to the Secretary of the Interior of

activities undertaken under this subsection, including the

number of contracts and cooperative agreements entered into, the

number of infants and toddlers contacted and receiving services

for each year, and the estimated number of infants and toddlers

needing services during the 2 years following the year in which

the report is made. The Secretary of the Interior shall include

a summary of this information on a biennial basis to the

Secretary of Education along with such other information as

required under section 611(h)(3)(E). The Secretary of Education

may require any additional information from the Secretary of the

Interior.

``(6) Prohibited uses of funds.--None of the funds under

this subsection may be used by the Secretary of the Interior for

administrative purposes, including child count, and the

provision of technical assistance.

``(c) State Allotments.--

``(1) In general.--Except as provided in paragraphs (2) and

(3), from the funds remaining for each fiscal year after the

reservation and payments under subsections (a), (b), and (e),

the Secretary shall first allot to each State an amount that

bears the same ratio to the amount of such remainder as the

number of infants and toddlers in the State bears to the number

of infants and toddlers in all States.

[[Page 118 STAT. 2762]]

``(2) Minimum allotments.--Except as provided in paragraph

(3), no State shall receive an amount under this section for any

fiscal year that is less than the greater of--

``(A) 1/2 of 1 percent of the remaining amount

described in paragraph (1); or

``(B) $500,000.

``(3) Ratable reduction.--

``(A) In general.--If the sums made available under

this part for any fiscal year are insufficient to pay

the full amounts that all States are eligible to receive

under this subsection for such year, the Secretary shall

ratably reduce the allotments to such States for such

year.

``(B) Additional funds.--If additional funds become

available for making payments under this subsection for

a fiscal year, allotments that were reduced under

subparagraph (A) shall be increased on the same basis

the allotments were reduced.

``(4) Definitions.--In this subsection--

``(A) the terms `infants' and `toddlers' mean

children under 3 years of age; and

``(B) the term `State' means each of the 50 States,

the District of Columbia, and the Commonwealth of Puerto

Rico.

``(d) Reallotment of Funds.--If a State elects not to receive its

allotment under subsection (c), the Secretary shall reallot, among the

remaining States, amounts from such State in accordance with such

subsection.

``(e) Reservation for State Incentive Grants.--

``(1) In general.--For any fiscal year for which the amount

appropriated pursuant to the authorization of appropriations

under section 644 exceeds $460,000,000, the Secretary shall

reserve 15 percent of such appropriated amount to provide grants

to States that are carrying out the policy described in section

635(c) in order to facilitate the implementation of such policy.

``(2) Amount of grant.--

``(A) In general.--Notwithstanding paragraphs (2)

and (3) of subsection (c), the Secretary shall provide a

grant to each State under paragraph (1) in an amount

that bears the same ratio to the amount reserved under

such paragraph as the number of infants and toddlers in

the State bears to the number of infants and toddlers in

all States receiving grants under such paragraph.

``(B) Maximum amount.--No State shall receive a

grant under paragraph (1) for any fiscal year in an

amount that is greater than 20 percent of the amount

reserved under such paragraph for the fiscal year.

``(3) Carryover of amounts.--

``(A) First succeeding fiscal year.--Pursuant to

section 421(b) of the General Education Provisions Act,

amounts under a grant provided under paragraph (1) that

are not obligated and expended prior to the beginning of

the first fiscal year succeeding the fiscal year for

which such amounts were appropriated shall remain

available for obligation and expenditure during such

first succeeding fiscal year.

[[Page 118 STAT. 2763]]

``(B) Second succeeding fiscal year.--Amounts under

a grant provided under paragraph (1) that are not

obligated and expended prior to the beginning of the

second fiscal year succeeding the fiscal year for which

such amounts were appropriated shall be returned to the

Secretary and used to make grants to States under

section 633 (from their allotments under this section)

during such second succeeding fiscal year.

``SEC. 644. <<NOTE: 20 USC 1444.>> AUTHORIZATION OF APPROPRIATIONS.

``For the purpose of carrying out this part, there are authorized to

be appropriated such sums as may be necessary for each of the fiscal

years 2005 through 2010.

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

DISABILITIES

``SEC. 650. <<NOTE: 20 USC 1450.>> FINDINGS.

``Congress finds the following:

``(1) The Federal Government has an ongoing obligation to

support activities that contribute to positive results for

children with disabilities, enabling those children to lead

productive and independent adult lives.

``(2) Systemic change benefiting all students, including

children with disabilities, requires the involvement of States,

local educational agencies, parents, individuals with

disabilities and their families, teachers and other service

providers, and other interested individuals and organizations to

develop and implement comprehensive strategies that improve

educational results for children with disabilities.

``(3) State educational agencies, in partnership with local

educational agencies, parents of children with disabilities, and

other individuals and organizations, are in the best position to

improve education for children with disabilities and to address

their special needs.

``(4) An effective educational system serving students with

disabilities should--

``(A) maintain high academic achievement standards

and clear performance goals for children with

disabilities, consistent with the standards and

expectations for all students in the educational system,

and provide for appropriate and effective strategies and

methods to ensure that all children with disabilities

have the opportunity to achieve those standards and

goals;

``(B) clearly define, in objective, measurable

terms, the school and post-school results that children

with disabilities are expected to achieve; and

``(C) promote transition services and coordinate

State and local education, social, health, mental

health, and other services, in addressing the full range

of student needs, particularly the needs of children

with disabilities who need significant levels of support

to participate and learn in school and the community.

``(5) The availability of an adequate number of qualified

personnel is critical--

``(A) to serve effectively children with

disabilities;

[[Page 118 STAT. 2764]]

``(B) to assume leadership positions in

administration and direct services;

``(C) to provide teacher training; and

``(D) to conduct high quality research to improve

special education.

``(6) High quality, comprehensive professional development

programs are essential to ensure that the persons responsible

for the education or transition of children with disabilities

possess the skills and knowledge necessary to address the

educational and related needs of those children.

``(7) Models of professional development should be

scientifically based and reflect successful practices, including

strategies for recruiting, preparing, and retaining personnel.

``(8) Continued support is essential for the development and

maintenance of a coordinated and high quality program of

research to inform successful teaching practices and model

curricula for educating children with disabilities.

``(9) Training, technical assistance, support, and

dissemination activities are necessary to ensure that parts B

and C are fully implemented and achieve high quality early

intervention, educational, and transitional results for children

with disabilities and their families.

``(10) Parents, teachers, administrators, and related

services personnel need technical assistance and information in

a timely, coordinated, and accessible manner in order to improve

early intervention, educational, and transitional services and

results at the State and local levels for children with

disabilities and their families.

``(11) Parent training and information activities assist

parents of a child with a disability in dealing with the

multiple pressures of parenting such a child and are of

particular importance in--

``(A) playing a vital role in creating and

preserving constructive relationships between parents of

children with disabilities and schools by facilitating

open communication between the parents and schools;

encouraging dispute resolution at the earliest possible

point in time; and discouraging the escalation of an

adversarial process between the parents and schools;

``(B) ensuring the involvement of parents in

planning and decisionmaking with respect to early

intervention, educational, and transitional services;

``(C) achieving high quality early intervention,

educational, and transitional results for children with

disabilities;

``(D) providing such parents information on their

rights, protections, and responsibilities under this

title to ensure improved early intervention,

educational, and transitional results for children with

disabilities;

``(E) assisting such parents in the development of

skills to participate effectively in the education and

development of their children and in the transitions

described in section 673(b)(6);

``(F) supporting the roles of such parents as

participants within partnerships seeking to improve

early intervention, educational, and transitional

services and results for children with disabilities and

their families; and

[[Page 118 STAT. 2765]]

``(G) supporting such parents who may have limited

access to services and supports, due to economic,

cultural, or linguistic barriers.

``(12) Support is needed to improve technological resources

and integrate technology, including universally designed

technologies, into the lives of children with disabilities,

parents of children with disabilities, school personnel, and

others through curricula, services, and assistive technologies.

``Subpart 1--State Personnel Development Grants

``SEC. 651. <<NOTE: 20 USC 1451.>> PURPOSE; DEFINITION OF PERSONNEL;

PROGRAM AUTHORITY.

``(a) Purpose.--The purpose of this subpart is to assist State

educational agencies in reforming and improving their systems for

personnel preparation and professional development in early

intervention, educational, and transition services in order to improve

results for children with disabilities.

``(b) Definition of Personnel.--In this subpart the term `personnel'

means special education teachers, regular education teachers,

principals, administrators, related services personnel,

paraprofessionals, and early intervention personnel serving infants,

toddlers, preschoolers, or children with disabilities, except where a

particular category of personnel, such as related services personnel, is

identified.

``(c) Competitive Grants.--

``(1) In general.--Except as provided in subsection (d), for

any fiscal year for which the amount appropriated under section

655, that remains after the Secretary reserves funds under

subsection (e) for the fiscal year, is less than $100,000,000,

the Secretary shall award grants, on a competitive basis, to

State educational agencies to carry out the activities described

in the State plan submitted under section 653.

``(2) Priority.--In awarding grants under paragraph (1), the

Secretary may give priority to State educational agencies that--

``(A) are in States with the greatest personnel

shortages; or

``(B) demonstrate the greatest difficulty meeting

the requirements of section 612(a)(14).

``(3) Minimum amount.--The Secretary shall make a grant to

each State educational agency selected under paragraph (1) in an

amount for each fiscal year that is--

``(A) not less than $500,000, nor more than

$4,000,000, in the case of the 50 States, the District

of Columbia, and the Commonwealth of Puerto Rico; and

``(B) not less than $80,000 in the case of an

outlying area.

``(4) Increase in amount.--The Secretary may increase the

amounts of grants under paragraph (4) to account for inflation.

``(5) Factors.--The Secretary shall determine the amount of

a grant under paragraph (1) after considering--

``(A) the amount of funds available for making the

grants;

``(B) the relative population of the State or

outlying area;

[[Page 118 STAT. 2766]]

``(C) the types of activities proposed by the State

or outlying area;

``(D) the alignment of proposed activities with

section 612(a)(14);

``(E) the alignment of proposed activities with the

State plans and applications submitted under sections

1111 and 2112, respectively, of the Elementary and

Secondary Education Act of 1965; and

``(F) the use, as appropriate, of scientifically

based research activities.

``(d) Formula Grants.--

``(1) In general.--Except as provided in paragraphs (2) and

(3), for the first fiscal year for which the amount appropriated

under section 655, that remains after the Secretary reserves

funds under subsection (e) for the fiscal year, is equal to or

greater than $100,000,000, and for each fiscal year thereafter,

the Secretary shall allot to each State educational agency,

whose application meets the requirements of this subpart, an

amount that bears the same relation to the amount remaining as

the amount the State received under section 611(d) for that

fiscal year bears to the amount of funds received by all States

(whose applications meet the requirements of this subpart) under

section 611(d) for that fiscal year.

``(2) Minimum allotments for states that received

competitive grants.--

``(A) In general.--The amount allotted under this

subsection to any State educational agency that received

a competitive multi-year grant under subsection (c) for

which the grant period has not expired shall be not less

than the amount specified for that fiscal year in the

State educational agency's grant award document under

that subsection.

``(B) Special rule.--Each such State educational

agency shall use the minimum amount described in

subparagraph (A) for the activities described in the

State educational agency's competitive grant award

document for that year, unless the Secretary approves a

request from the State educational agency to spend the

funds on other activities.

``(3) Minimum allotment.--The amount of any State

educational agency's allotment under this subsection for any

fiscal year shall not be less than--

``(A) the greater of $500,000 or 1/2 of 1 percent

of the total amount available under this subsection for

that year, in the case of each of the 50 States, the

District of Columbia, and the Commonwealth of Puerto

Rico; and

``(B) $80,000, in the case of an outlying area.

``(4) Direct benefit.--In using grant funds allotted under

paragraph (1), a State educational agency shall, through grants,

contracts, or cooperative agreements, undertake activities that

significantly and directly benefit the local educational

agencies in the State.

``(e) Continuation Awards.--

``(1) In general.--Notwithstanding any other provision of

this subpart, from funds appropriated under section 655 for each

fiscal year, the Secretary shall reserve the amount that

[[Page 118 STAT. 2767]]

is necessary to make a continuation award to any State

educational agency (at the request of the State educational

agency) that received a multi-year award under this part (as

this part was in effect on the day before the date of enactment

of the Individuals with Disabilities Education Improvement Act

of 2004), to enable the State educational agency to carry out

activities in accordance with the terms of the multi-year award.

``(2) Prohibition.--A State educational agency that receives

a continuation award under paragraph (1) for any fiscal year may

not receive any other award under this subpart for that fiscal

year.

``SEC. 652. <<NOTE: 20 USC 1452.>> ELIGIBILITY AND COLLABORATIVE

PROCESS.

``(a) Eligible Applicants.--A State educational agency may apply for

a grant under this subpart for a grant period of not less than 1 year

and not more than 5 years.

``(b) Partners.--

``(1) In general.--In order to be considered for a grant

under this subpart, a State educational agency shall establish a

partnership with local educational agencies and other State

agencies involved in, or concerned with, the education of

children with disabilities, including--

``(A) not less than 1 institution of higher

education; and

``(B) the State agencies responsible for

administering part C, early education, child care, and

vocational rehabilitation programs.

``(2) Other partners.--In order to be considered for a grant

under this subpart, a State educational agency shall work in

partnership with other persons and organizations involved in,

and concerned with, the education of children with disabilities,

which may include--

``(A) the Governor;

``(B) parents of children with disabilities ages

birth through 26;

``(C) parents of nondisabled children ages birth

through 26;

``(D) individuals with disabilities;

``(E) parent training and information centers or

community parent resource centers funded under sections

671 and 672, respectively;

``(F) community based and other nonprofit

organizations involved in the education and employment

of individuals with disabilities;

``(G) personnel as defined in section 651(b);

``(H) the State advisory panel established under

part B;

``(I) the State interagency coordinating council

established under part C;

``(J) individuals knowledgeable about vocational

education;

``(K) the State agency for higher education;

``(L) public agencies with jurisdiction in the areas

of health, mental health, social services, and juvenile

justice;

``(M) other providers of professional development

that work with infants, toddlers, preschoolers, and

children with disabilities; and

[[Page 118 STAT. 2768]]

``(N) other individuals.

``(3) Required partner.--If State law assigns responsibility

for teacher preparation and certification to an individual,

entity, or agency other than the State educational agency, the

State educational agency shall--

``(A) include that individual, entity, or agency as

a partner in the partnership under this subsection; and

``(B) ensure that any activities the State

educational agency will carry out under this subpart

that are within that partner's jurisdiction (which may

include activities described in section 654(b)) are

carried out by that partner.

``SEC. 653. <<NOTE: 20 USC 1453.>> APPLICATIONS.

``(a) In General.--

``(1) Submission.--A State educational agency that desires

to receive a grant under this subpart shall submit to the

Secretary an application at such time, in such manner, and

including such information as the Secretary may require.

``(2) State plan.--The application shall include a plan that

identifies and addresses the State and local needs for the

personnel preparation and professional development of personnel,

as well as individuals who provide direct supplementary aids and

services to children with disabilities, and that--

``(A) is designed to enable the State to meet the

requirements of section 612(a)(14) and section 635(a)

(8) and (9);

``(B) is based on an assessment of State and local

needs that identifies critical aspects and areas in need

of improvement related to the preparation, ongoing

training, and professional development of personnel who

serve infants, toddlers, preschoolers, and children with

disabilities within the State, including--

``(i) current and anticipated personnel

vacancies and shortages; and

``(ii) the number of preservice and inservice

programs; and

``(C) is integrated and aligned, to the maximum

extent possible, with State plans and activities under

the Elementary and Secondary Education Act of 1965, the

Rehabilitation Act of 1973, and the Higher Education Act

of 1965.

``(3) Requirement.--The State application shall contain an

assurance that the State educational agency will carry out each

of the strategies described in subsection (b)(4).

``(b) Elements of State Personnel Development Plan.--Each State

personnel development plan under subsection (a)(2) shall--

``(1) describe a partnership agreement that is in effect for

the period of the grant, which agreement shall specify--

``(A) the nature and extent of the partnership

described in section 652(b) and the respective roles of

each member of the partnership, including the partner

described in section 652(b)(3) if applicable; and

``(B) how the State educational agency will work

with other persons and organizations involved in, and

concerned with, the education of children with

disabilities, including the respective roles of each of

the persons and organizations;

[[Page 118 STAT. 2769]]

``(2) describe how the strategies and activities described

in paragraph (4) will be coordinated with activities supported

with other public resources (including part B and part C funds

retained for use at the State level for personnel and

professional development purposes) and private resources;

``(3) describe how the State educational agency will align

its personnel development plan under this subpart with the plan

and application submitted under sections 1111 and 2112,

respectively, of the Elementary and Secondary Education Act of

1965;

``(4) describe those strategies the State educational agency

will use to address the professional development and personnel

needs identified under subsection (a)(2) and how such strategies

will be implemented, including--

``(A) a description of the programs and activities

to be supported under this subpart that will provide

personnel with the knowledge and skills to meet the

needs of, and improve the performance and achievement

of, infants, toddlers, preschoolers, and children with

disabilities; and

``(B) how such strategies will be integrated, to the

maximum extent possible, with other activities supported

by grants funded under section 662;

``(5) provide an assurance that the State educational agency

will provide technical assistance to local educational agencies

to improve the quality of professional development available to

meet the needs of personnel who serve children with

disabilities;

``(6) provide an assurance that the State educational agency

will provide technical assistance to entities that provide

services to infants and toddlers with disabilities to improve

the quality of professional development available to meet the

needs of personnel serving such children;

``(7) describe how the State educational agency will recruit

and retain highly qualified teachers and other qualified

personnel in geographic areas of greatest need;

``(8) describe the steps the State educational agency will

take to ensure that poor and minority children are not taught at

higher rates by teachers who are not highly qualified; and

``(9) describe how the State educational agency will assess,

on a regular basis, the extent to which the strategies

implemented under this subpart have been effective in meeting

the performance goals described in section 612(a)(15).

``(c) Peer Review.--

``(1) In general.--The Secretary shall use a panel of

experts who are competent, by virtue of their training,

expertise, or experience, to evaluate applications for grants

under section 651(c)(1).

``(2) Composition of panel.--A majority of a panel described

in paragraph (1) shall be composed of individuals who are not

employees of the Federal Government.

``(3) Payment of fees and expenses of certain members.--The

Secretary may use available funds appropriated to carry out this

subpart to pay the expenses and fees of panel members who are

not employees of the Federal Government.

[[Page 118 STAT. 2770]]

``(d) Reporting Procedures.--Each State educational agency that

receives a grant under this subpart shall submit annual performance

reports to the Secretary. The reports shall--

``(1) describe the progress of the State educational agency

in implementing its plan;

``(2) analyze the effectiveness of the State educational

agency's activities under this subpart and of the State

educational agency's strategies for meeting its goals under

section 612(a)(15); and

``(3) identify changes in the strategies used by the State

educational agency and described in subsection (b)(4), if any,

to improve the State educational agency's performance.

``SEC. 654. <<NOTE: 20 USC 1454.>> USE OF FUNDS.

``(a) Professional Development Activities.--A State educational

agency that receives a grant under this subpart shall use the grant

funds to support activities in accordance with the State's plan

described in section 653, including 1 or more of the following:

``(1) Carrying out programs that provide support to both

special education and regular education teachers of children

with disabilities and principals, such as programs that--

``(A) provide teacher mentoring, team teaching,

reduced class schedules and case loads, and intensive

professional development;

``(B) use standards or assessments for guiding

beginning teachers that are consistent with challenging

State student academic achievement and functional

standards and with the requirements for professional

development, as defined in section 9101 of the

Elementary and Secondary Education Act of 1965; and

``(C) encourage collaborative and consultative

models of providing early intervention, special

education, and related services.

``(2) Encouraging and supporting the training of special

education and regular education teachers and administrators to

effectively use and integrate technology--

``(A) into curricula and instruction, including

training to improve the ability to collect, manage, and

analyze data to improve teaching, decisionmaking, school

improvement efforts, and accountability;

``(B) to enhance learning by children with

disabilities; and

``(C) to effectively communicate with parents.

``(3) Providing professional development activities that--

``(A) improve the knowledge of special education and

regular education teachers concerning--

``(i) the academic and developmental or

functional needs of students with disabilities; or

``(ii) effective instructional strategies,

methods, and skills, and the use of State academic

content standards and student academic achievement

and functional standards, and State assessments,

to improve teaching practices and student academic

achievement;

[[Page 118 STAT. 2771]]

``(B) improve the knowledge of special education and

regular education teachers and principals and, in

appropriate cases, paraprofessionals, concerning

effective instructional practices, and that--

``(i) provide training in how to teach and

address the needs of children with different

learning styles and children who are limited

English proficient;

``(ii) involve collaborative groups of

teachers, administrators, and, in appropriate

cases, related services personnel;

``(iii) provide training in methods of--

``(I) positive behavioral

interventions and supports to improve

student behavior in the classroom;

``(II) scientifically based reading

instruction, including early literacy

instruction;

``(III) early and appropriate

interventions to identify and help

children with disabilities;

``(IV) effective instruction for

children with low incidence

disabilities;

``(V) successful transitioning to

postsecondary opportunities; and

``(VI) using classroom-based

techniques to assist children prior to

referral for special education;

``(iv) provide training to enable personnel to

work with and involve parents in their child's

education, including parents of low income and

limited English proficient children with

disabilities;

``(v) provide training for special education

personnel and regular education personnel in

planning, developing, and implementing effective

and appropriate IEPs; and

``(vi) provide training to meet the needs of

students with significant health, mobility, or

behavioral needs prior to serving such students;

``(C) train administrators, principals, and other

relevant school personnel in conducting effective IEP

meetings; and

``(D) train early intervention, preschool, and

related services providers, and other relevant school

personnel, in conducting effective individualized family

service plan (IFSP) meetings.

``(4) Developing and implementing initiatives to promote the

recruitment and retention of highly qualified special education

teachers, particularly initiatives that have been proven

effective in recruiting and retaining highly qualified teachers,

including programs that provide--

``(A) teacher mentoring from exemplary special

education teachers, principals, or superintendents;

``(B) induction and support for special education

teachers during their first 3 years of employment as

teachers; or

``(C) incentives, including financial incentives, to

retain special education teachers who have a record of

success in helping students with disabilities.

[[Page 118 STAT. 2772]]

``(5) Carrying out programs and activities that are designed

to improve the quality of personnel who serve children with

disabilities, such as--

``(A) innovative professional development programs

(which may be provided through partnerships that include

institutions of higher education), including programs

that train teachers and principals to integrate

technology into curricula and instruction to improve

teaching, learning, and technology literacy, which

professional development shall be consistent with the

definition of professional development in section 9101

of the Elementary and Secondary Education Act of 1965;

and

``(B) the development and use of proven, cost

effective strategies for the implementation of

professional development activities, such as through the

use of technology and distance learning.

``(6) Carrying out programs and activities that are designed

to improve the quality of early intervention personnel,

including paraprofessionals and primary referral sources, such

as--

``(A) professional development programs to improve

the delivery of early intervention services;

``(B) initiatives to promote the recruitment and

retention of early intervention personnel; and

``(C) interagency activities to ensure that early

intervention personnel are adequately prepared and

trained.

``(b) Other Activities.--A State educational agency that receives a

grant under this subpart shall use the grant funds to support activities

in accordance with the State's plan described in section 653, including

1 or more of the following:

``(1) Reforming special education and regular education

teacher certification (including recertification) or licensing

requirements to ensure that--

``(A) special education and regular education

teachers have--

``(i) the training and information necessary

to address the full range of needs of children

with disabilities across disability categories;

and

``(ii) the necessary subject matter knowledge

and teaching skills in the academic subjects that

the teachers teach;

``(B) special education and regular education

teacher certification (including recertification) or

licensing requirements are aligned with challenging

State academic content standards; and

``(C) special education and regular education

teachers have the subject matter knowledge and teaching

skills, including technology literacy, necessary to help

students with disabilities meet challenging State

student academic achievement and functional standards.

``(2) Programs that establish, expand, or improve

alternative routes for State certification of special education

teachers for highly qualified individuals with a baccalaureate

or master's degree, including mid-career professionals from

other occupations, paraprofessionals, and recent college or

university graduates with records of academic distinction who

demonstrate the potential to become highly effective special

education teachers.

[[Page 118 STAT. 2773]]

``(3) Teacher advancement initiatives for special education

teachers that promote professional growth and emphasize multiple

career paths (such as paths to becoming a career teacher, mentor

teacher, or exemplary teacher) and pay differentiation.

``(4) Developing and implementing mechanisms to assist local

educational agencies and schools in effectively recruiting and

retaining highly qualified special education teachers.

``(5) Reforming tenure systems, implementing teacher testing

for subject matter knowledge, and implementing teacher testing

for State certification or licensing, consistent with title II

of the Higher Education Act of 1965.

``(6) Funding projects to promote reciprocity of teacher

certification or licensing between or among States for special

education teachers, except that no reciprocity agreement

developed under this paragraph or developed using funds provided

under this subpart may lead to the weakening of any State

teaching certification or licensing requirement.

``(7) Assisting local educational agencies to serve children

with disabilities through the development and use of proven,

innovative strategies to deliver intensive professional

development programs that are both cost effective and easily

accessible, such as strategies that involve delivery through the

use of technology, peer networks, and distance learning.

``(8) Developing, or assisting local educational agencies in

developing, merit based performance systems, and strategies that

provide differential and bonus pay for special education

teachers.

``(9) Supporting activities that ensure that teachers are

able to use challenging State academic content standards and

student academic achievement and functional standards, and State

assessments for all children with disabilities, to improve

instructional practices and improve the academic achievement of

children with disabilities.

``(10) When applicable, coordinating with, and expanding

centers established under, section 2113(c)(18) of the Elementary

and Secondary Education Act of 1965 to benefit special education

teachers.

``(c) Contracts and Subgrants.--A State educational agency that

receives a grant under this subpart--

``(1) shall award contracts or subgrants to local

educational agencies, institutions of higher education, parent

training and information centers, or community parent resource

centers, as appropriate, to carry out its State plan under this

subpart; and

``(2) may award contracts and subgrants to other public and

private entities, including the lead agency under part C, to

carry out the State plan.

``(d) Use of Funds for Professional Development.--A State

educational agency that receives a grant under this subpart shall use--

``(1) not less than 90 percent of the funds the State

educational agency receives under the grant for any fiscal year

for activities under subsection (a); and

``(2) not more than 10 percent of the funds the State

educational agency receives under the grant for any fiscal year

for activities under subsection (b).

[[Page 118 STAT. 2774]]

``(e) Grants to Outlying Areas.--Public Law 95-134, permitting the

consolidation of grants to the outlying areas, shall not apply to funds

received under this subpart.

``SEC. 655. <<NOTE: 20 USC 1455.>> AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated to carry out this subpart

such sums as may be necessary for each of the fiscal years 2005 through

2010.

``Subpart 2--Personnel Preparation, Technical Assistance, Model

Demonstration Projects, and Dissemination of Information

``SEC. 661. <<NOTE: 20 USC 1461.>> PURPOSE; DEFINITION OF ELIGIBLE

ENTITY.

``(a) Purpose.--The purpose of this subpart is--

``(1) to provide Federal funding for personnel preparation,

technical assistance, model demonstration projects, information

dissemination, and studies and evaluations, in order to improve

early intervention, educational, and transitional results for

children with disabilities; and

``(2) to assist State educational agencies and local

educational agencies in improving their education systems for

children with disabilities.

``(b) Definition of Eligible Entity.--

``(1) In general.--In this subpart, the term `eligible

entity' means--

``(A) a State educational agency;

``(B) a local educational agency;

``(C) a public charter school that is a local

educational agency under State law;

``(D) an institution of higher education;

``(E) a public agency not described in subparagraphs

(A) through (D);

``(F) a private nonprofit organization;

``(G) an outlying area;

``(H) an Indian tribe or a tribal organization (as

defined under section 4 of the Indian Self-Determination

and Education Assistance Act); or

``(I) a for-profit organization, if the Secretary

finds it appropriate in light of the purposes of a

particular competition for a grant, contract, or

cooperative agreement under this subpart.

``(2) Special rule.--The Secretary may limit which eligible

entities described in paragraph (1) are eligible for a grant,

contract, or cooperative agreement under this subpart to 1 or

more of the categories of eligible entities described in

paragraph (1).

``SEC. 662. <<NOTE: 20 USC 1462.>> PERSONNEL DEVELOPMENT TO IMPROVE

SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES.

``(a) In General.--The Secretary, on a competitive basis, shall

award grants to, or enter into contracts or cooperative agreements with,

eligible entities to carry out 1 or more of the following objectives:

``(1) To help address the needs identified in the State plan

described in section 653(a)(2) for highly qualified personnel,

as defined in section 651(b), to work with infants or toddlers

[[Page 118 STAT. 2775]]

with disabilities, or children with disabilities, consistent

with the qualifications described in section 612(a)(14).

``(2) To ensure that those personnel have the necessary

skills and knowledge, derived from practices that have been

determined, through scientifically based research, to be

successful in serving those children.

``(3) To encourage increased focus on academics and core

content areas in special education personnel preparation

programs.

``(4) To ensure that regular education teachers have the

necessary skills and knowledge to provide instruction to

students with disabilities in the regular education classroom.

``(5) To ensure that all special education teachers are

highly qualified.

``(6) To ensure that preservice and in-service personnel

preparation programs include training in--

``(A) the use of new technologies;

``(B) the area of early intervention, educational,

and transition services;

``(C) effectively involving parents; and

``(D) positive behavioral supports.

``(7) To provide high-quality professional development for

principals, superintendents, and other administrators, including

training in--

``(A) instructional leadership;

``(B) behavioral supports in the school and

classroom;

``(C) paperwork reduction;

``(D) promoting improved collaboration between

special education and general education teachers;

``(E) assessment and accountability;

``(F) ensuring effective learning environments; and

``(G) fostering positive relationships with parents.

``(b) Personnel Development; Enhanced Support for Beginning Special

Educators.--

``(1) In general.--In carrying out this section, the

Secretary shall support activities--

``(A) for personnel development, including

activities for the preparation of personnel who will

serve children with high incidence and low incidence

disabilities, to prepare special education and general

education teachers, principals, administrators, and

related services personnel (and school board members,

when appropriate) to meet the diverse and individualized

instructional needs of children with disabilities and

improve early intervention, educational, and

transitional services and results for children with

disabilities, consistent with the objectives described

in subsection (a); and

``(B) for enhanced support for beginning special

educators, consistent with the objectives described in

subsection (a).

``(2) Personnel development.--In carrying out paragraph

(1)(A), the Secretary shall support not less than 1 of the

following activities:

``(A) Assisting effective existing, improving

existing, or developing new, collaborative personnel

preparation activities undertaken by institutions of

higher education, local educational agencies, and other

local entities that

[[Page 118 STAT. 2776]]

incorporate best practices and scientifically based

research, where applicable, in providing special

education and general education teachers, principals,

administrators, and related services personnel with the

knowledge and skills to effectively support students

with disabilities, including--

``(i) working collaboratively in regular

classroom settings;

``(ii) using appropriate supports,

accommodations, and curriculum modifications;

``(iii) implementing effective teaching

strategies, classroom-based techniques, and

interventions to ensure appropriate identification

of students who may be eligible for special

education services, and to prevent the

misidentification, inappropriate

overidentification, or underidentification of

children as having a disability, especially

minority and limited English proficient children;

``(iv) effectively working with and involving

parents in the education of their children;

``(v) utilizing strategies, including positive

behavioral interventions, for addressing the

conduct of children with disabilities that impedes

their learning and that of others in the

classroom;

``(vi) effectively constructing IEPs,

participating in IEP meetings, and implementing

IEPs;

``(vii) preparing children with disabilities

to participate in statewide assessments (with or

without accommodations) and alternate assessments,

as appropriate, and to ensure that all children

with disabilities are a part of all accountability

systems under the Elementary and Secondary

Education Act of 1965; and

``(viii) working in high need elementary

schools and secondary schools, including urban

schools, rural schools, and schools operated by an

entity described in section 7113(d)(1)(A)(ii) of

the Elementary and Secondary Education Act of

1965, and schools that serve high numbers or

percentages of limited English proficient

children.

``(B) Developing, evaluating, and disseminating

innovative models for the recruitment, induction,

retention, and assessment of new, highly qualified

teachers to reduce teacher shortages, especially from

groups that are underrepresented in the teaching

profession, including individuals with disabilities.

``(C) Providing continuous personnel preparation,

training, and professional development designed to

provide support and ensure retention of special

education and general education teachers and personnel

who teach and provide related services to children with

disabilities.

``(D) Developing and improving programs for

paraprofessionals to become special education teachers,

related services personnel, and early intervention

personnel, including interdisciplinary training to

enable the paraprofessionals to improve early

intervention, educational, and transitional results for

children with disabilities.

``(E) In the case of principals and superintendents,

providing activities to promote instructional leadership

and

[[Page 118 STAT. 2777]]

improved collaboration between general educators,

special education teachers, and related services

personnel.

``(F) Supporting institutions of higher education

with minority enrollments of not less than 25 percent

for the purpose of preparing personnel to work with

children with disabilities.

``(G) Developing and improving programs to train

special education teachers to develop an expertise in

autism spectrum disorders.

``(H) Providing continuous personnel preparation,

training, and professional development designed to

provide support and improve the qualifications of

personnel who provide related services to children with

disabilities, including to enable such personnel to

obtain advanced degrees.

``(3) Enhanced support for beginning special educators.--In

carrying out paragraph (1)(B), the Secretary shall support not

less than 1 of the following activities:

``(A) Enhancing and restructuring existing programs

or developing preservice teacher education programs to

prepare special education teachers, at colleges or

departments of education within institutions of higher

education, by incorporating an extended (such as an

additional 5th year) clinical learning opportunity,

field experience, or supervised practicum into such

programs.

``(B) Creating or supporting teacher-faculty

partnerships (such as professional development schools)

that--

``(i) consist of not less than--

``(I) 1 or more institutions of

higher education with special education

personnel preparation programs;

``(II) 1 or more local educational

agencies that serve high numbers or

percentages of low-income students; or

``(III) 1 or more elementary schools

or secondary schools, particularly

schools that have failed to make

adequate yearly progress on the basis,

in whole and in part, of the assessment

results of the disaggregated subgroup of

students with disabilities;

``(ii) may include other entities eligible for

assistance under this part; and

``(iii) provide--

``(I) high-quality mentoring and

induction opportunities with ongoing

support for beginning special education

teachers; or

``(II) inservice professional

development to beginning and veteran

special education teachers through the

ongoing exchange of information and

instructional strategies with faculty.

``(c) Low Incidence Disabilities; Authorized Activities.--

``(1) In general.--In carrying out this section, the

Secretary shall support activities, consistent with the

objectives described in subsection (a), that benefit children

with low incidence disabilities.

[[Page 118 STAT. 2778]]

``(2) Authorized activities.--Activities that may be carried

out under this subsection include activities such as the

following:

``(A) Preparing persons who--

``(i) have prior training in educational and

other related service fields; and

``(ii) are studying to obtain degrees,

certificates, or licensure that will enable the

persons to assist children with low incidence

disabilities to achieve the objectives set out in

their individualized education programs described

in section 614(d), or to assist infants and

toddlers with low incidence disabilities to

achieve the outcomes described in their

individualized family service plans described in

section 636.

``(B) Providing personnel from various disciplines

with interdisciplinary training that will contribute to

improvement in early intervention, educational, and

transitional results for children with low incidence

disabilities.

``(C) Preparing personnel in the innovative uses and

application of technology, including universally

designed technologies, assistive technology devices, and

assistive technology services--

``(i) to enhance learning by children with low

incidence disabilities through early intervention,

educational, and transitional services; and

``(ii) to improve communication with parents.

``(D) Preparing personnel who provide services to

visually impaired or blind children to teach and use

Braille in the provision of services to such children.

``(E) Preparing personnel to be qualified

educational interpreters, to assist children with low

incidence disabilities, particularly deaf and hard of

hearing children in school and school related

activities, and deaf and hard of hearing infants and

toddlers and preschool children in early intervention

and preschool programs.

``(F) Preparing personnel who provide services to

children with significant cognitive disabilities and

children with multiple disabilities.

``(G) Preparing personnel who provide services to

children with low incidence disabilities and limited

English proficient children.

``(3) Definition.--In this section, the term `low incidence

disability' means--

``(A) a visual or hearing impairment, or

simultaneous visual and hearing impairments;

``(B) a significant cognitive impairment; or

``(C) any impairment for which a small number of

personnel with highly specialized skills and knowledge

are needed in order for children with that impairment to

receive early intervention services or a free

appropriate public education.

``(4) Selection of recipients.--In selecting eligible

entities for assistance under this subsection, the Secretary may

give preference to eligible entities submitting applications

that include 1 or more of the following:

``(A) A proposal to prepare personnel in more than 1

low incidence disability, such as deafness and

blindness.

[[Page 118 STAT. 2779]]

``(B) A demonstration of an effective collaboration

between an eligible entity and a local educational

agency that promotes recruitment and subsequent

retention of highly qualified personnel to serve

children with low incidence disabilities.

``(5) Preparation in use of braille.--The Secretary shall

ensure that all recipients of awards under this subsection who

will use that assistance to prepare personnel to provide

services to visually impaired or blind children that can

appropriately be provided in Braille, will prepare those

individuals to provide those services in Braille.

``(d) Leadership Preparation; Authorized Activities.--

``(1) In general.--In carrying out this section, the

Secretary shall support leadership preparation activities that

are consistent with the objectives described in subsection (a).

``(2) Authorized activities.--Activities that may be carried

out under this subsection include activities such as the

following:

``(A) Preparing personnel at the graduate, doctoral,

and postdoctoral levels of training to administer,

enhance, or provide services to improve results for

children with disabilities.

``(B) Providing interdisciplinary training for

various types of leadership personnel, including teacher

preparation faculty, related services faculty,

administrators, researchers, supervisors, principals,

and other persons whose work affects early intervention,

educational, and transitional services for children with

disabilities, including children with disabilities who

are limited English proficient children.

``(e) Applications.--

``(1) In general.--An eligible entity that wishes to receive

a grant, or enter into a contract or cooperative agreement,

under this section shall submit an application to the Secretary

at such time, in such manner, and containing such information as

the Secretary may require.

``(2) Identified state needs.--

``(A) Requirement to address identified needs.--An

application for assistance under subsection (b), (c), or

(d) shall include information demonstrating to the

satisfaction of the Secretary that the activities

described in the application will address needs

identified by the State or States the eligible entity

proposes to serve.

``(B) Cooperation with state educational agencies.--

An eligible entity that is not a local educational

agency or a State educational agency shall include in

the eligible entity's application information

demonstrating to the satisfaction of the Secretary that

the eligible entity and 1 or more State educational

agencies or local educational agencies will cooperate in

carrying out and monitoring the proposed project.

``(3) Acceptance by states of personnel preparation

requirements.--The Secretary may require eligible entities to

provide in the eligible entities' applications assurances from 1

or more States that such States intend to accept successful

completion of the proposed personnel preparation program as

meeting State personnel standards or other requirements in

[[Page 118 STAT. 2780]]

State law or regulation for serving children with disabilities

or serving infants and toddlers with disabilities.

``(f) Selection of Recipients.--

``(1) Impact of project.--In selecting eligible entities for

assistance under this section, the Secretary shall consider the

impact of the proposed project described in the application in

meeting the need for personnel identified by the States.

``(2) Requirement for eligible entities to meet state and

professional qualifications.--

The <<NOTE: Grants. Contracts.>> Secretary shall make grants and

enter into contracts and cooperative agreements under this

section only to eligible entities that meet State and

professionally recognized qualifications for the preparation of

special education and related services personnel, if the purpose

of the project is to assist personnel in obtaining degrees.

``(3) Preferences.--In selecting eligible entities for

assistance under this section, the Secretary may give preference

to eligible entities that are institutions of higher education

that are--

``(A) educating regular education personnel to meet

the needs of children with disabilities in integrated

settings;

``(B) educating special education personnel to work

in collaboration with regular educators in integrated

settings; and

``(C) successfully recruiting and preparing

individuals with disabilities and individuals from

groups that are underrepresented in the profession for

which the institution of higher education is preparing

individuals.

``(g) Scholarships.--The Secretary may include funds for

scholarships, with necessary stipends and allowances, in awards under

subsections (b), (c), and (d).

``(h) Service Obligation.--

``(1) In general.--Each application for assistance under

subsections (b), (c), and (d) shall include an assurance that

the eligible entity will ensure that individuals who receive a

scholarship under the proposed project agree to subsequently

provide special education and related services to children with

disabilities, or in the case of leadership personnel to

subsequently work in the appropriate field, for a period of 2

years for every year for which the scholarship was received or

repay all or part of the amount of the scholarship, in

accordance with regulations issued by the Secretary.

``(2) Special rule.--Notwithstanding paragraph (1), the

Secretary may reduce or waive the service obligation requirement

under paragraph (1) if the Secretary determines that the service

obligation is acting as a deterrent to the recruitment of

students into special education or a related field.

``(3) Secretary's responsibility.--The Secretary--

``(A) shall ensure that individuals described in

paragraph (1) comply with the requirements of that

paragraph; and

``(B) may use not more than 0.5 percent of the funds

appropriated under subsection (i) for each fiscal year,

to carry out subparagraph (A), in addition to any other

funds that are available for that purpose.

[[Page 118 STAT. 2781]]

``(i) Authorization of Appropriations.--There are authorized to be

appropriated to carry out this section such sums as may be necessary for

each of the fiscal years 2005 through 2010.

``SEC. 663. TECHNICAL ASSISTANCE, DEMONSTRATION PROJECTS, DISSEMINATION

OF INFORMATION, AND IMPLEMENTATION OF SCIENTIFICALLY BASED

RESEARCH.

``(a) <<NOTE: Grants. Contracts. 20 USC 1463.>> In General.--The

Secretary shall make competitive grants to, or enter into contracts or

cooperative agreements with, eligible entities to provide technical

assistance, support model demonstration projects, disseminate useful

information, and implement activities that are supported by

scientifically based research.

``(b) Required Activities.--Funds received under this section shall

be used to support activities to improve services provided under this

title, including the practices of professionals and others involved in

providing such services to children with disabilities, that promote

academic achievement and improve results for children with disabilities

through--

``(1) implementing effective strategies for addressing

inappropriate behavior of students with disabilities in schools,

including strategies to prevent children with emotional and

behavioral problems from developing emotional disturbances that

require the provision of special education and related services;

``(2) improving the alignment, compatibility, and

development of valid and reliable assessments and alternate

assessments for assessing adequate yearly progress, as described

under section 1111(b)(2)(B) of the Elementary and Secondary

Education Act of 1965;

``(3) providing training for both regular education teachers

and special education teachers to address the needs of students

with different learning styles;

``(4) disseminating information about innovative, effective,

and efficient curricula designs, instructional approaches, and

strategies, and identifying positive academic and social

learning opportunities, that--

``(A) provide effective transitions between

educational settings or from school to post school

settings; and

``(B) improve educational and transitional results

at all levels of the educational system in which the

activities are carried out and, in particular, that

improve the progress of children with disabilities, as

measured by assessments within the general education

curriculum involved; and

``(5) applying scientifically based findings to facilitate

systemic changes, related to the provision of services to

children with disabilities, in policy, procedure, practice, and

the training and use of personnel.

``(c) Authorized Activities.--Activities that may be carried out

under this section include activities to improve services provided under

this title, including the practices of professionals and others involved

in providing such services to children with disabilities, that promote

academic achievement and improve results for children with disabilities

through--

``(1) applying and testing research findings in typical

settings where children with disabilities receive services to

determine the usefulness, effectiveness, and general

applicability

[[Page 118 STAT. 2782]]

of such research findings in such areas as improving

instructional methods, curricula, and tools, such as textbooks

and media;

``(2) supporting and promoting the coordination of early

intervention and educational services for children with

disabilities with services provided by health, rehabilitation,

and social service agencies;

``(3) promoting improved alignment and compatibility of

general and special education reforms concerned with curricular

and instructional reform, and evaluation of such reforms;

``(4) enabling professionals, parents of children with

disabilities, and other persons to learn about, and implement,

the findings of scientifically based research, and successful

practices developed in model demonstration projects, relating to

the provision of services to children with disabilities;

``(5) conducting outreach, and disseminating information,

relating to successful approaches to overcoming systemic

barriers to the effective and efficient delivery of early

intervention, educational, and transitional services to

personnel who provide services to children with disabilities;

``(6) assisting States and local educational agencies with

the process of planning systemic changes that will promote

improved early intervention, educational, and transitional

results for children with disabilities;

``(7) promoting change through a multistate or regional

framework that benefits States, local educational agencies, and

other participants in partnerships that are in the process of

achieving systemic-change outcomes;

``(8) focusing on the needs and issues that are specific to

a population of children with disabilities, such as providing

single-State and multi-State technical assistance and in-service

training--

``(A) to schools and agencies serving deaf-blind

children and their families;

``(B) to programs and agencies serving other groups

of children with low incidence disabilities and their

families;

``(C) addressing the postsecondary education needs

of individuals who are deaf or hard-of-hearing; and

``(D) to schools and personnel providing special

education and related services for children with autism

spectrum disorders;

``(9) demonstrating models of personnel preparation to

ensure appropriate placements and services for all students and

to reduce disproportionality in eligibility, placement, and

disciplinary actions for minority and limited English proficient

children; and

``(10) disseminating information on how to reduce

inappropriate racial and ethnic disproportionalities identified

under section 618.

``(d) Balance Among Activities and Age Ranges.--In carrying out this

section, the Secretary shall ensure that there is an appropriate balance

across all age ranges of children with disabilities.

``(e) Linking States to Information Sources.--In carrying out this

section, the Secretary shall support projects that link States to

technical assistance resources, including special education and general

education resources, and shall make research and

[[Page 118 STAT. 2783]]

related products available through libraries, electronic networks,

parent training projects, and other information sources, including

through the activities of the National Center for Education Evaluation

and Regional Assistance established under part D of the Education

Sciences Reform Act of 2002.

``(f) Applications.--

``(1) In general.--An eligible entity that wishes to receive

a grant, or enter into a contract or cooperative agreement,

under this section shall submit an application to the Secretary

at such time, in such manner, and containing such information as

the Secretary may require.

``(2) Standards.--To the maximum extent feasible, each

eligible entity shall demonstrate that the project described in

the eligible entity's application is supported by scientifically

valid research that has been carried out in accordance with the

standards for the conduct and evaluation of all relevant

research and development established by the National Center for

Education Research.

``(3) Priority.--As appropriate, the Secretary shall give

priority to applications that propose to serve teachers and

school personnel directly in the school environment.

``SEC. 664. <<NOTE: 20 USC 1464.>> STUDIES AND EVALUATIONS.

``(a) Studies and Evaluations.--

``(1) Delegation.--The Secretary shall delegate to the

Director of the Institute of Education Sciences responsibility

to carry out this section, other than subsections (d) and (f).

``(2) Assessment.--The Secretary shall, directly or through

grants, contracts, or cooperative agreements awarded to eligible

entities on a competitive basis, assess the progress in the

implementation of this title, including the effectiveness of

State and local efforts to provide--

``(A) a free appropriate public education to

children with disabilities; and

``(B) early intervention services to infants and

toddlers with disabilities, and infants and toddlers who

would be at risk of having substantial developmental

delays if early intervention services were not provided

to the infants and toddlers.

``(b) Assessment of National Activities.--

``(1) In general.--The Secretary shall carry out a national

assessment of activities carried out with Federal funds under

this title in order--

``(A) to determine the effectiveness of this title

in achieving the purposes of this title;

``(B) to provide timely information to the

President, Congress, the States, local educational

agencies, and the public on how to implement this title

more effectively; and

``(C) to provide the President and Congress with

information that will be useful in developing

legislation to achieve the purposes of this title more

effectively.

``(2) Scope of assessment.--The national assessment shall

assess activities supported under this title, including--

``(A) the implementation of programs assisted under

this title and the impact of such programs on addressing

the developmental needs of, and improving the academic

[[Page 118 STAT. 2784]]

achievement of, children with disabilities to enable the

children to reach challenging developmental goals and

challenging State academic content standards based on

State academic assessments;

``(B) the types of programs and services that have

demonstrated the greatest likelihood of helping students

reach the challenging State academic content standards

and developmental goals;

``(C) the implementation of the professional

development activities assisted under this title and the

impact on instruction, student academic achievement, and

teacher qualifications to enhance the ability of special

education teachers and regular education teachers to

improve results for children with disabilities; and

``(D) the effectiveness of schools, local

educational agencies, States, other recipients of

assistance under this title, and the Secretary in

achieving the purposes of this title by--

``(i) improving the academic achievement of

children with disabilities and their performance

on regular statewide assessments as compared to

nondisabled children, and the performance of

children with disabilities on alternate

assessments;

``(ii) improving the participation of children

with disabilities in the general education

curriculum;

``(iii) improving the transitions of children

with disabilities at natural transition points;

``(iv) placing and serving children with

disabilities, including minority children, in the

least restrictive environment appropriate;

``(v) preventing children with disabilities,

especially children with emotional disturbances

and specific learning disabilities, from dropping

out of school;

``(vi) addressing the reading and literacy

needs of children with disabilities;

``(vii) reducing the inappropriate

overidentification of children, especially

minority and limited English proficient children,

as having a disability;

``(viii) improving the participation of

parents of children with disabilities in the

education of their children; and

``(ix) resolving disagreements between

education personnel and parents through alternate

dispute resolution activities, including

mediation.

``(3) Interim and final reports.--The Secretary shall submit

to the President and Congress--

``(A) an interim report that summarizes the

preliminary findings of the assessment not later than 3

years after the date of enactment of the Individuals

with Disabilities Education Improvement Act of 2004; and

``(B) a final report of the findings of the

assessment not later than 5 years after the date of

enactment of such Act.

``(c) Study on Ensuring Accountability for Students Who Are Held to

Alternative Achievement Standards.--The Secretary shall carry out a

national study or studies to examine--

``(1) the criteria that States use to determine--

[[Page 118 STAT. 2785]]

``(A) eligibility for alternate assessments; and

``(B) the number and type of children who take those

assessments and are held accountable to alternative

achievement standards;

``(2) the validity and reliability of alternate assessment

instruments and procedures;

``(3) the alignment of alternate assessments and alternative

achievement standards to State academic content standards in

reading, mathematics, and science; and

``(4) the use and effectiveness of alternate assessments in

appropriately measuring student progress and outcomes specific

to individualized instructional need.

``(d) Annual Report.--The Secretary shall provide an annual report

to Congress that--

``(1) summarizes the research conducted under part E of the

Education Sciences Reform Act of 2002;

``(2) analyzes and summarizes the data reported by the

States and the Secretary of the Interior under section 618;

``(3) summarizes the studies and evaluations conducted under

this section and the timeline for their completion;

``(4) describes the extent and progress of the assessment of

national activities; and

``(5) describes the findings and determinations resulting

from reviews of State implementation of this title.

``(e) Authorized Activities.--In carrying out this section, the

Secretary may support objective studies, evaluations, and assessments,

including studies that--

``(1) analyze measurable impact, outcomes, and results

achieved by State educational agencies and local educational

agencies through their activities to reform policies,

procedures, and practices designed to improve educational and

transitional services and results for children with

disabilities;

``(2) analyze State and local needs for professional

development, parent training, and other appropriate activities

that can reduce the need for disciplinary actions involving

children with disabilities;

``(3) assess educational and transitional services and

results for children with disabilities from minority

backgrounds, including--

``(A) data on--

``(i) the number of minority children who are

referred for special education evaluation;

``(ii) the number of minority children who are

receiving special education and related services

and their educational or other service placement;

``(iii) the number of minority children who

graduated from secondary programs with a regular

diploma in the standard number of years; and

``(iv) the number of minority children who

drop out of the educational system; and

``(B) the performance of children with disabilities

from minority backgrounds on State assessments and other

performance indicators established for all students;

``(4) measure educational and transitional services and

results for children with disabilities served under this title,

including longitudinal studies that--

[[Page 118 STAT. 2786]]

``(A) examine educational and transitional services

and results for children with disabilities who are 3

through 17 years of age and are receiving special

education and related services under this title, using a

national, representative sample of distinct age cohorts

and disability categories; and

``(B) examine educational results, transition

services, postsecondary placement, and employment status

for individuals with disabilities, 18 through 21 years

of age, who are receiving or have received special

education and related services under this title; and

``(5) identify and report on the placement of children with

disabilities by disability category.

``(f) <<NOTE: Reports.>> Study.--The Secretary shall study, and

report to Congress regarding, the extent to which States adopt policies

described in section 635(c)(1) and on the effects of those policies.

``SEC. 665. <<NOTE: 20 USC 1465.>> INTERIM ALTERNATIVE EDUCATIONAL

SETTINGS, BEHAVIORAL SUPPORTS, AND SYSTEMIC SCHOOL

INTERVENTIONS.

``(a) Program Authorized.--The Secretary may award grants, and enter

into contracts and cooperative agreements, to support safe learning

environments that support academic achievement for all students by--

``(1) improving the quality of interim alternative

educational settings; and

``(2) providing increased behavioral supports and research-

based, systemic interventions in schools.

``(b) Authorized Activities.--In carrying out this section, the

Secretary may support activities to--

``(1) establish, expand, or increase the scope of behavioral

supports and systemic interventions by providing for effective,

research-based practices, including--

``(A) training for school staff on early

identification, prereferral, and referral procedures;

``(B) training for administrators, teachers, related

services personnel, behavioral specialists, and other

school staff in positive behavioral interventions and

supports, behavioral intervention planning, and

classroom and student management techniques;

``(C) joint training for administrators, parents,

teachers, related services personnel, behavioral

specialists, and other school staff on effective

strategies for positive behavioral interventions and

behavior management strategies that focus on the

prevention of behavior problems;

``(D) developing or implementing specific curricula,

programs, or interventions aimed at addressing

behavioral problems;

``(E) stronger linkages between school-based

services and community-based resources, such as

community mental health and primary care providers; or

``(F) using behavioral specialists, related services

personnel, and other staff necessary to implement

behavioral supports; or

``(2) improve interim alternative educational settings by--

``(A) improving the training of administrators,

teachers, related services personnel, behavioral

specialists, and other

[[Page 118 STAT. 2787]]

school staff (including ongoing mentoring of new

teachers) in behavioral supports and interventions;

``(B) attracting and retaining a high quality,

diverse staff;

``(C) providing for referral to counseling services;

``(D) utilizing research-based interventions,

curriculum, and practices;

``(E) allowing students to use instructional

technology that provides individualized instruction;

``(F) ensuring that the services are fully

consistent with the goals of the individual student's

IEP;

``(G) promoting effective case management and

collaboration among parents, teachers, physicians,

related services personnel, behavioral specialists,

principals, administrators, and other school staff;

``(H) promoting interagency coordination and

coordinated service delivery among schools, juvenile

courts, child welfare agencies, community mental health

providers, primary care providers, public recreation

agencies, and community-based organizations; or

``(I) providing for behavioral specialists to help

students transitioning from interim alternative

educational settings reintegrate into their regular

classrooms.

``(c) Definition of Eligible Entity.--In this section, the term

``eligible entity'' means--

``(1) a local educational agency; or

``(2) a consortium consisting of a local educational agency

and 1 or more of the following entities:

``(A) Another local educational agency.

``(B) A community-based organization with a

demonstrated record of effectiveness in helping children

with disabilities who have behavioral challenges

succeed.

``(C) An institution of higher education.

``(D) A community mental health provider.

``(E) An educational service agency.

``(d) Applications.--Any eligible entity that wishes to receive a

grant, or enter into a contract or cooperative agreement, under this

section shall--

``(1) submit an application to the Secretary at such time,

in such manner, and containing such information as the Secretary

may require; and

``(2) involve parents of participating students in the

design and implementation of the activities funded under this

section.

``(e) Report and Evaluation.--Each eligible entity receiving a grant

under this section shall prepare and submit annually to the Secretary a

report on the outcomes of the activities assisted under the grant.

``SEC. 667. <<NOTE: 20 USC 1466.>> AUTHORIZATION OF APPROPRIATIONS.

``(a) In General.--There are authorized to be appropriated to carry

out this subpart (other than section 662) such sums as may be necessary

for each of the fiscal years 2005 through 2010.

``(b) Reservation.--From amounts appropriated under subsection (a)

for fiscal year 2005, the Secretary shall reserve $1,000,000 to carry

out the study authorized in section 664(c). From amounts appropriated

under subsection (a) for a succeeding fiscal year, the Secretary may

reserve an additional amount to

[[Page 118 STAT. 2788]]

carry out such study if the Secretary determines the additional amount

is necessary.

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

``SEC. 670. <<NOTE: 20 USC 1470.>> PURPOSES.

``The purposes of this subpart are to ensure that--

``(1) children with disabilities and their parents receive

training and information designed to assist the children in

meeting developmental and functional goals and challenging

academic achievement goals, and in preparing to lead productive

independent adult lives;

``(2) children with disabilities and their parents receive

training and information on their rights, responsibilities, and

protections under this title, in order to develop the skills

necessary to cooperatively and effectively participate in

planning and decision making relating to early intervention,

educational, and transitional services;

``(3) parents, teachers, administrators, early intervention

personnel, related services personnel, and transition personnel

receive coordinated and accessible technical assistance and

information to assist such personnel in improving early

intervention, educational, and transitional services and results

for children with disabilities and their families; and

``(4) appropriate technology and media are researched,

developed, and demonstrated, to improve and implement early

intervention, educational, and transitional services and results

for children with disabilities and their families.

``SEC. 671. <<NOTE: 20 USC 1471.>> PARENT TRAINING AND INFORMATION

CENTERS.

``(a) Program Authorized.--

``(1) In general.--The Secretary may award grants to, and

enter into contracts and cooperative agreements with, parent

organizations to support parent training and information centers

to carry out activities under this section.

``(2) Definition of parent organization.--In this section,

the term `parent organization' means a private nonprofit

organization (other than an institution of higher education)

that--

``(A) has a board of directors--

``(i) the majority of whom are parents of

children with disabilities ages birth through 26;

``(ii) that includes--

``(I) individuals working in the

fields of special education, related

services, and early intervention; and

``(II) individuals with

disabilities; and

``(iii) the parent and professional members of

which are broadly representative of the population

to be served, including low-income parents and

parents of limited English proficient children;

and

``(B) has as its mission serving families of

children with disabilities who--

``(i) are ages birth through 26; and

``(ii) have the full range of disabilities

described in section 602(3).

[[Page 118 STAT. 2789]]

``(b) Required Activities.--Each parent training and information

center that receives assistance under this section shall--

``(1) provide training and information that meets the needs

of parents of children with disabilities living in the area

served by the center, particularly underserved parents and

parents of children who may be inappropriately identified, to

enable their children with disabilities to--

``(A) meet developmental and functional goals, and

challenging academic achievement goals that have been

established for all children; and

``(B) be prepared to lead productive independent

adult lives, to the maximum extent possible;

``(2) serve the parents of infants, toddlers, and children

with the full range of disabilities described in section 602(3);

``(3) ensure that the training and information provided

meets the needs of low-income parents and parents of limited

English proficient children;

``(4) assist parents to--

``(A) better understand the nature of their

children's disabilities and their educational,

developmental, and transitional needs;

``(B) communicate effectively and work

collaboratively with personnel responsible for providing

special education, early intervention services,

transition services, and related services;

``(C) participate in decisionmaking processes and

the development of individualized education programs

under part B and individualized family service plans

under part C;

``(D) obtain appropriate information about the

range, type, and quality of--

``(i) options, programs, services,

technologies, practices and interventions based on

scientifically based research, to the extent

practicable; and

``(ii) resources available to assist children

with disabilities and their families in school and

at home;

``(E) understand the provisions of this title for

the education of, and the provision of early

intervention services to, children with disabilities;

``(F) participate in activities at the school level

that benefit their children; and

``(G) participate in school reform activities;

``(5) in States where the State elects to contract with the

parent training and information center, contract with State

educational agencies to provide, consistent with subparagraphs

(B) and (D) of section 615(e)(2), individuals who meet with

parents to explain the mediation process to the parents;

``(6) assist parents in resolving disputes in the most

expeditious and effective way possible, including encouraging

the use, and explaining the benefits, of alternative methods of

dispute resolution, such as the mediation process described in

section 615(e);

``(7) assist parents and students with disabilities to

understand their rights and responsibilities under this title,

including those under section 615(m) upon the student's reaching

the age of majority (as appropriate under State law);

[[Page 118 STAT. 2790]]

``(8) assist parents to understand the availability of, and

how to effectively use, procedural safeguards under this title,

including the resolution session described in section 615(e);

``(9) assist parents in understanding, preparing for, and

participating in, the process described in section 615(f)(1)(B);

``(10) establish cooperative partnerships with community

parent resource centers funded under section 672;

``(11) network with appropriate clearinghouses, including

organizations conducting national dissemination activities under

section 663 and the Institute of Education Sciences, and with

other national, State, and local organizations and agencies,

such as protection and advocacy agencies, that serve parents and

families of children with the full range of disabilities

described in section 602(3); and

``(12) <<NOTE: Reports. Deadlines.>> annually report to the

Secretary on--

``(A) the number and demographics of parents to whom

the center provided information and training in the most

recently concluded fiscal year;

``(B) the effectiveness of strategies used to reach

and serve parents, including underserved parents of

children with disabilities; and

``(C) the number of parents served who have resolved

disputes through alternative methods of dispute

resolution.

``(c) Optional Activities.--A parent training and information center

that receives assistance under this section may provide information to

teachers and other professionals to assist the teachers and

professionals in improving results for children with disabilities.

``(d) Application Requirements.--Each application for assistance

under this section shall identify with specificity the special efforts

that the parent organization will undertake--

``(1) to ensure that the needs for training and information

of underserved parents of children with disabilities in the area

to be served are effectively met; and

``(2) to work with community based organizations, including

community based organizations that work with low-income parents

and parents of limited English proficient children.

``(e) Distribution of Funds.--

``(1) In general.--The Secretary shall--

``(A) make not less than 1 award to a parent

organization in each State for a parent training and

information center that is designated as the statewide

parent training and information center; or

``(B) in the case of a large State, make awards to

multiple parent training and information centers, but

only if the centers demonstrate that coordinated

services and supports will occur among the multiple

centers.

``(2) Selection requirement.--The Secretary shall select

among applications submitted by parent organizations in a State

in a manner that ensures the most effective assistance to

parents, including parents in urban and rural areas, in the

State.

``(f) Quarterly Review.--

``(1) Meetings.--The board of directors of each parent

organization that receives an award under this section shall

meet not less than once in each calendar quarter to review the

activities for which the award was made.

[[Page 118 STAT. 2791]]

``(2) Continuation award.--When a parent organization

requests a continuation award under this section, the board of

directors shall submit to the Secretary a written review of the

parent training and information program conducted by the parent

organization during the preceding fiscal year.

``SEC. 672. <<NOTE: 20 USC 1472.>> COMMUNITY PARENT RESOURCE CENTERS.

``(a) Program Authorized.--

``(1) In general.--The Secretary may award grants to, and

enter into contracts and cooperative agreements with, local

parent organizations to support community parent resource

centers that will help ensure that underserved parents of

children with disabilities, including low income parents,

parents of limited English proficient children, and parents with

disabilities, have the training and information the parents need

to enable the parents to participate effectively in helping

their children with disabilities--

``(A) to meet developmental and functional goals,

and challenging academic achievement goals that have

been established for all children; and

``(B) to be prepared to lead productive independent

adult lives, to the maximum extent possible.

``(2) Definition of local parent organization.--In this

section, the term `local parent organization' means a parent

organization, as defined in section 671(a)(2), that--

``(A) has a board of directors the majority of whom

are parents of children with disabilities ages birth

through 26 from the community to be served; and

``(B) has as its mission serving parents of children

with disabilities who--

``(i) are ages birth through 26; and

``(ii) have the full range of disabilities

described in section 602(3).

``(b) Required Activities.--Each community parent resource center

assisted under this section shall--

``(1) provide training and information that meets the

training and information needs of parents of children with

disabilities proposed to be served by the grant, contract, or

cooperative agreement;

``(2) carry out the activities required of parent training

and information centers under paragraphs (2) through (9) of

section 671(b);

``(3) establish cooperative partnerships with the parent

training and information centers funded under section 671; and

``(4) be designed to meet the specific needs of families who

experience significant isolation from available sources of

information and support.

``SEC. 673. <<NOTE: 20 USC 1473.>> TECHNICAL ASSISTANCE FOR PARENT

TRAINING AND INFORMATION CENTERS.

``(a) Program Authorized.--

``(1) In general.--The Secretary may, directly or through

awards to eligible entities, provide technical assistance for

developing, assisting, and coordinating parent training and

information programs carried out by parent training and

information centers receiving assistance under section 671 and

[[Page 118 STAT. 2792]]

community parent resource centers receiving assistance under

section 672.

``(2) Definition of eligible entity.--In this section, the

term `eligible entity' has the meaning given the term in section

661(b).

``(b) Authorized Activities.--The Secretary may provide technical

assistance to a parent training and information center or a community

parent resource center under this section in areas such as--

``(1) effective coordination of parent training efforts;

``(2) dissemination of scientifically based research and

information;

``(3) promotion of the use of technology, including

assistive technology devices and assistive technology services;

``(4) reaching underserved populations, including parents of

low-income and limited English proficient children with

disabilities;

``(5) including children with disabilities in general

education programs;

``(6) facilitation of transitions from--

``(A) early intervention services to preschool;

``(B) preschool to elementary school;

``(C) elementary school to secondary school; and

``(D) secondary school to postsecondary

environments; and

``(7) promotion of alternative methods of dispute

resolution, including mediation.

``(c) Collaboration With the Resource Centers.--Each eligible entity

receiving an award under subsection (a) shall develop collaborative

agreements with the geographically appropriate regional resource center

and, as appropriate, the regional educational laboratory supported under

section 174 of the Education Sciences Reform Act of 2002, to further

parent and professional collaboration.

``SEC. 674. <<NOTE: 20 USC 1474.>> TECHNOLOGY DEVELOPMENT,

DEMONSTRATION, AND UTILIZATION; MEDIA SERVICES; AND

INSTRUCTIONAL MATERIALS.

``(a) Program Authorized.--

``(1) <<NOTE: Grants. Contracts.>> In general.--The

Secretary, on a competitive basis, shall award grants to, and

enter into contracts and cooperative agreements with, eligible

entities to support activities described in subsections (b) and

(c).

``(2) Definition of eligible entity.--In this section, the

term `eligible entity' has the meaning given the term in section

661(b).

``(b) Technology Development, Demonstration, and Use.--

``(1) In general.--In carrying out this section, the

Secretary shall support activities to promote the development,

demonstration, and use of technology.

``(2) Authorized activities.--The following activities may

be carried out under this subsection:

``(A) Conducting research on and promoting the

demonstration and use of innovative, emerging, and

universally designed technologies for children with

disabilities, by improving the transfer of technology

from research and development to practice.

[[Page 118 STAT. 2793]]

``(B) Supporting research, development, and

dissemination of technology with universal design

features, so that the technology is accessible to the

broadest range of individuals with disabilities without

further modification or adaptation.

``(C) Demonstrating the use of systems to provide

parents and teachers with information and training

concerning early diagnosis of, intervention for, and

effective teaching strategies for, young children with

reading disabilities.

``(D) Supporting the use of Internet-based

communications for students with cognitive disabilities

in order to maximize their academic and functional

skills.

``(c) Educational Media Services.--

``(1) In general.--In carrying out this section, the

Secretary shall support--

``(A) educational media activities that are designed

to be of educational value in the classroom setting to

children with disabilities;

``(B) providing video description, open captioning,

or closed captioning, that is appropriate for use in the

classroom setting, of--

``(i) television programs;

``(ii) videos;

``(iii) other materials, including programs

and materials associated with new and emerging

technologies, such as CDs, DVDs, video streaming,

and other forms of multimedia; or

``(iv) news (but only until September 30,

2006);

``(C) distributing materials described in

subparagraphs (A) and (B) through such mechanisms as a

loan service; and

``(D) providing free educational materials,

including textbooks, in accessible media for visually

impaired and print disabled students in elementary

schools and secondary schools, postsecondary schools,

and graduate schools.

``(2) Limitation.--The video description, open captioning,

or closed captioning described in paragraph (1)(B) shall be

provided only when the description or captioning has not been

previously provided by the producer or distributor, or has not

been fully funded by other sources.

``(d) Applications.--

``(1) In general.--Any eligible entity that wishes to

receive a grant, or enter into a contract or cooperative

agreement, under subsection (b) or (c) shall submit an

application to the Secretary at such time, in such manner, and

containing such information as the Secretary may require.

``(2) Special rule.--For the purpose of an application for

an award to carry out activities described in subsection

(c)(1)(D), such eligible entity shall--

``(A) be a national, nonprofit entity with a proven

track record of meeting the needs of students with print

disabilities through services described in subsection

(c)(1)(D);

``(B) have the capacity to produce, maintain, and

distribute in a timely fashion, up-to-date textbooks in

digital audio formats to qualified students; and

[[Page 118 STAT. 2794]]

``(C) have a demonstrated ability to significantly

leverage Federal funds through other public and private

contributions, as well as through the expansive use of

volunteers.

``(e) National Instructional Materials Access Center.--

``(1) <<NOTE: Establishment. Deadline.>> In general.--The

Secretary shall establish and support, through the American

Printing House for the Blind, a center to be known as the

`National Instructional Materials Access Center' not later than

1 year after the date of enactment of the Individuals with

Disabilities Education Improvement Act of 2004.

``(2) Duties.--The duties of the National Instructional

Materials Access Center are the following:

``(A) To receive and maintain a catalog of print

instructional materials prepared in the National

Instructional Materials Accessibility Standard, as

established by the Secretary, made available to such

center by the textbook publishing industry, State

educational agencies, and local educational agencies.

``(B) To provide access to print instructional

materials, including textbooks, in accessible media,

free of charge, to blind or other persons with print

disabilities in elementary schools and secondary

schools, in accordance with such terms and procedures as

the National Instructional Materials Access Center may

prescribe.

``(C) To develop, adopt and publish procedures to

protect against copyright infringement, with respect to

the print instructional materials provided under

sections 612(a)(23) and 613(a)(6).

``(3) Definitions.--In this subsection:

``(A) Blind or other persons with print

disabilities.--The term `blind or other persons with

print disabilities' means children served under this Act

and who may qualify in accordance with the Act entitled

`An Act to provide books for the adult blind', approved

March 3, 1931 (2 U.S.C. 135a; 46 Stat. 1487) to receive

books and other publications produced in specialized

formats.

``(B) National instructional materials accessibility

standard.--The term `National Instructional Materials

Accessibility Standard' means the standard established

by the Secretary to be used in the preparation of

electronic files suitable and used solely for efficient

conversion into specialized formats.

``(C) Print instructional materials.--The term

`print instructional materials' means printed textbooks

and related printed core materials that are written and

published primarily for use in elementary school and

secondary school instruction and are required by a State

educational agency or local educational agency for use

by students in the classroom.

``(D) Specialized formats.--The term `specialized

formats' has the meaning given the term in section

121(d)(3) of title 17, United States Code.

``(4) Applicability.--This subsection shall apply to print

instructional materials published after the date on which the

final rule establishing the National Instructional Materials

Accessibility Standard was published in the Federal Register.

[[Page 118 STAT. 2795]]

``(5) Liability of the secretary.--Nothing in this

subsection shall be construed to establish a private right of

action against the Secretary for failure to provide

instructional materials directly, or for failure by the National

Instructional Materials Access Center to perform the duties of

such center, or to otherwise authorize a private right of action

related to the performance by such center, including through the

application of the rights of children and parents established

under this Act.

``(6) Inapplicability.--Subsections (a) through (d) shall

not apply to this subsection.

``SEC. 675. <<NOTE: 20 USC 1475.>> AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated to carry out this subpart

such sums as may be necessary for each of the fiscal years 2005 through

2010.

``Subpart 4--General Provisions

``SEC. 681. <<NOTE: 20 USC 1481.>> COMPREHENSIVE PLAN FOR SUBPARTS 2 AND

3.

``(a) Comprehensive Plan.--

``(1) In general.--After receiving input from interested

individuals with relevant expertise, the Secretary shall develop

and implement a comprehensive plan for activities carried out

under subparts 2 and 3 in order to enhance the provision of

early intervention services, educational services, related

services, and transitional services to children with

disabilities under parts B and C. To the extent practicable, the

plan shall be coordinated with the plan developed pursuant to

section 178(c) of the Education Sciences Reform Act of 2002 and

shall include mechanisms to address early intervention,

educational, related service and transitional needs identified

by State educational agencies in applications submitted for

State personnel development grants under subpart 1 and for

grants under subparts 2 and 3.

``(2) Public comment.--The Secretary shall provide a public

comment period of not less than 45 days on the plan.

``(3) Distribution of funds.--In implementing the plan, the

Secretary shall, to the extent appropriate, ensure that funds

awarded under subparts 2 and 3 are used to carry out activities

that benefit, directly or indirectly, children with the full

range of disabilities and of all ages.

``(4) Reports to congress.--The Secretary shall annually

report to Congress on the Secretary's activities under subparts

2 and 3, including an initial report not later than 12 months

after the date of enactment of the Individuals with Disabilities

Education Improvement Act of 2004.

``(b) Assistance Authorized.--The Secretary is authorized to award

grants to, or enter into contracts or cooperative agreements with,

eligible entities to enable the eligible entities to carry out the

purposes of such subparts in accordance with the comprehensive plan

described in subsection (a).

``(c) Special Populations.--

``(1) Application requirement.--In making an award of a

grant, contract, or cooperative agreement under subpart 2 or 3,

the Secretary shall, as appropriate, require an eligible

[[Page 118 STAT. 2796]]

entity to demonstrate how the eligible entity will address the

needs of children with disabilities from minority backgrounds.

``(2) <<NOTE: Historically Black colleges and

universities.>> Required outreach and technical assistance.--

Notwithstanding any other provision of this title, the Secretary

shall reserve not less than 2 percent of the total amount of

funds appropriated to carry out subparts 2 and 3 for either or

both of the following activities:

``(A) Providing outreach and technical assistance to

historically Black colleges and universities, and to

institutions of higher education with minority

enrollments of not less than 25 percent, to promote the

participation of such colleges, universities, and

institutions in activities under this subpart.

``(B) Enabling historically Black colleges and

universities, and the institutions described in

subparagraph (A), to assist other colleges,

universities, institutions, and agencies in improving

educational and transitional results for children with

disabilities, if the historically Black colleges and

universities and the institutions of higher education

described in subparagraph (A) meet the criteria

established by the Secretary under this subpart.

``(d) Priorities.--The Secretary, in making an award of a grant,

contract, or cooperative agreement under subpart 2 or 3, may, without

regard to the rulemaking procedures under section 553 of title 5, United

States Code, limit competitions to, or otherwise give priority to--

``(1) projects that address 1 or more--

``(A) age ranges;

``(B) disabilities;

``(C) school grades;

``(D) types of educational placements or early

intervention environments;

``(E) types of services;

``(F) content areas, such as reading; or

``(G) effective strategies for helping children with

disabilities learn appropriate behavior in the school

and other community based educational settings;

``(2) projects that address the needs of children based on

the severity or incidence of their disability;

``(3) projects that address the needs of--

``(A) low achieving students;

``(B) underserved populations;

``(C) children from low income families;

``(D) limited English proficient children;

``(E) unserved and underserved areas;

``(F) rural or urban areas;

``(G) children whose behavior interferes with their

learning and socialization;

``(H) children with reading difficulties;

``(I) children in public charter schools;

``(J) children who are gifted and talented; or

``(K) children with disabilities served by local

educational agencies that receive payments under title

VIII of the Elementary and Secondary Education Act of

1965;

``(4) projects to reduce inappropriate identification of

children as children with disabilities, particularly among

minority children;

[[Page 118 STAT. 2797]]

``(5) projects that are carried out in particular areas of

the country, to ensure broad geographic coverage;

``(6) projects that promote the development and use of

technologies with universal design, assistive technology

devices, and assistive technology services to maximize children

with disabilities' access to and participation in the general

education curriculum; and

``(7) any activity that is authorized in subpart 2 or 3.

``(e) Eligibility for Financial Assistance.--No State or local

educational agency, or other public institution or agency, may receive a

grant or enter into a contract or cooperative agreement under subpart 2

or 3 that relates exclusively to programs, projects, and activities

pertaining to children aged 3 through 5, inclusive, unless the State is

eligible to receive a grant under section 619(b).

``SEC. 682. <<NOTE: 20 USC 1482.>> ADMINISTRATIVE PROVISIONS.

``(a) Applicant and Recipient Responsibilities.--

``(1) Development and assessment of projects.--The Secretary

shall require that an applicant for, and a recipient of, a

grant, contract, or cooperative agreement for a project under

subpart 2 or 3--

``(A) involve individuals with disabilities or

parents of individuals with disabilities ages birth

through 26 in planning, implementing, and evaluating the

project; and

``(B) where appropriate, determine whether the

project has any potential for replication and adoption

by other entities.

``(2) Additional responsibilities.--The Secretary may

require a recipient of a grant, contract, or cooperative

agreement under subpart 2 or 3 to--

``(A) share in the cost of the project;

``(B) prepare any findings and products from the

project in formats that are useful for specific

audiences, including parents, administrators, teachers,

early intervention personnel, related services

personnel, and individuals with disabilities;

``(C) disseminate such findings and products; and

``(D) collaborate with other such recipients in

carrying out subparagraphs (B) and (C).

``(b) Application Management.--

``(1) Standing panel.--

``(A) In general.--The Secretary shall establish and

use a standing panel of experts who are qualified, by

virtue of their training, expertise, or experience, to

evaluate each application under subpart 2 or 3 that

requests more than $75,000 per year in Federal financial

assistance.

``(B) Membership.--The standing panel shall include,

at a minimum--

``(i) individuals who are representatives of

institutions of higher education that plan,

develop, and carry out high quality programs of

personnel preparation;

``(ii) individuals who design and carry out

scientifically based research targeted to the

improvement of special education programs and

services;

[[Page 118 STAT. 2798]]

``(iii) individuals who have recognized

experience and knowledge necessary to integrate

and apply scientifically based research findings

to improve educational and transitional results

for children with disabilities;

``(iv) individuals who administer programs at

the State or local level in which children with

disabilities participate;

``(v) individuals who prepare parents of

children with disabilities to participate in

making decisions about the education of their

children;

``(vi) individuals who establish policies that

affect the delivery of services to children with

disabilities;

``(vii) individuals who are parents of

children with disabilities ages birth through 26

who are benefiting, or have benefited, from

coordinated research, personnel preparation, and

technical assistance; and

``(viii) individuals with disabilities.

``(C) Term.--No individual shall serve on the

standing panel for more than 3 consecutive years.

``(2) Peer-review panels for particular competitions.--

``(A) Composition.--The Secretary shall ensure that

each subpanel selected from the standing panel that

reviews an application under subpart 2 or 3 includes--

``(i) individuals with knowledge and expertise

on the issues addressed by the activities

described in the application; and

``(ii) to the extent practicable, parents of

children with disabilities ages birth through 26,

individuals with disabilities, and persons from

diverse backgrounds.

``(B) Federal employment limitation.--A majority of

the individuals on each subpanel that reviews an

application under subpart 2 or 3 shall be individuals

who are not employees of the Federal Government.

``(3) Use of discretionary funds for administrative

purposes.--

``(A) Expenses and fees of non-federal panel

members.--The Secretary may use funds available under

subpart 2 or 3 to pay the expenses and fees of the panel

members who are not officers or employees of the Federal

Government.

``(B) Administrative support.--The Secretary may use

not more than 1 percent of the funds appropriated to

carry out subpart 2 or 3 to pay non-Federal entities for

administrative support related to management of

applications submitted under subpart 2 or 3,

respectively.

``(c) Program Evaluation.--The Secretary may use funds made

available to carry out subpart 2 or 3 to evaluate activities carried out

under subpart 2 or 3, respectively.

``(d) Minimum Funding Required.--

``(1) In general.--Subject to paragraph (2), the Secretary

shall ensure that, for each fiscal year, not less than the

following amounts are provided under subparts 2 and 3 to address

the following needs:

[[Page 118 STAT. 2799]]

``(A) $12,832,000 to address the educational,

related services, transitional, and early intervention

needs of children with deaf-blindness.

``(B) $4,000,000 to address the postsecondary,

vocational, technical, continuing, and adult education

needs of individuals with deafness.

``(C) $4,000,000 to address the educational, related

services, and transitional needs of children with an

emotional disturbance and those who are at risk of

developing an emotional disturbance.

``(2) Ratable reduction.--If the sum of the amount

appropriated to carry out subparts 2 and 3, and part E of the

Education Sciences Reform Act of 2002 for any fiscal year is

less than $130,000,000, the amounts listed in paragraph (1)

shall be ratably reduced for the fiscal year.''.

TITLE II--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

SEC. 201. NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH.

(a) Amendment.--The Education Sciences Reform Act of 2002 (20 U.S.C.

9501 et seq.) is amended--

(1) by redesignating part E as part F; and

(2) by inserting after part D the following:

``PART E--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

``SEC. 175. <<NOTE: 20 USC 9567.>> ESTABLISHMENT.

``(a) Establishment.--There is established in the Institute a

National Center for Special Education Research (in this part referred to

as the `Special Education Research Center').

``(b) Mission.--The mission of the Special Education Research Center

is--

``(1) to sponsor research to expand knowledge and

understanding of the needs of infants, toddlers, and children

with disabilities in order to improve the developmental,

educational, and transitional results of such individuals;

``(2) to sponsor research to improve services provided

under, and support the implementation of, the Individuals with

Disabilities Education Act (20 U.S.C. 1400 et seq.); and

``(3) to evaluate the implementation and effectiveness of

the Individuals with Disabilities Education Act in coordination

with the National Center for Education Evaluation and Regional

Assistance.

``(c) Applicability of Education Sciences Reform Act of 2002.--Parts

A and F, and the standards for peer review of applications and for the

conduct and evaluation of research under sections 133(a) and 134,

respectively, shall apply to the Secretary, the Director, and the

Commissioner in carrying out this part.

``SEC. 176. <<NOTE: 20 USC 9567a.>> COMMISSIONER FOR SPECIAL EDUCATION

RESEARCH.

``The Special Education Research Center shall be headed by a

Commissioner for Special Education Research (in this part referred to as

the `Special Education Research Commissioner') who

[[Page 118 STAT. 2800]]

shall have substantial knowledge of the Special Education Research

Center's activities, including a high level of expertise in the fields

of research, research management, and the education of children with

disabilities.

``SEC. 177. <<NOTE: 20 USC 9567b.>> DUTIES.

``(a) General Duties.--The Special Education Research Center shall

carry out research activities under this part consistent with the

mission described in section 175(b), such as activities that--

``(1) improve services provided under the Individuals with

Disabilities Education Act in order to improve--

``(A) academic achievement, functional outcomes, and

educational results for children with disabilities; and

``(B) developmental outcomes for infants or toddlers

with disabilities;

``(2) identify scientifically based educational practices

that support learning and improve academic achievement,

functional outcomes, and educational results for all students

with disabilities;

``(3) examine the special needs of preschool aged children,

infants, and toddlers with disabilities, including factors that

may result in developmental delays;

``(4) identify scientifically based related services and

interventions that promote participation and progress in the

general education curriculum and general education settings;

``(5) improve the alignment, compatibility, and development

of valid and reliable assessments, including alternate

assessments, as required by section 1111(b) of the Elementary

and Secondary Education Act of 1965 (20 U.S.C. 6311(b));

``(6) examine State content standards and alternate

assessments for students with significant cognitive impairment

in terms of academic achievement, individualized instructional

need, appropriate education settings, and improved post-school

results;

``(7) examine the educational, developmental, and

transitional needs of children with high incidence and low

incidence disabilities;

``(8) examine the extent to which overidentification and

underidentification of children with disabilities occurs, and

the causes thereof;

``(9) improve reading and literacy skills of children with

disabilities;

``(10) examine and improve secondary and postsecondary

education and transitional outcomes and results for children

with disabilities;

``(11) examine methods of early intervention for children

with disabilities, including children with multiple or complex

developmental delays;

``(12) examine and incorporate universal design concepts in

the development of standards, assessments, curricula, and

instructional methods to improve educational and transitional

results for children with disabilities;

``(13) improve the preparation of personnel, including early

intervention personnel, who provide educational and related

services to children with disabilities to increase the academic

achievement and functional performance of students with

disabilities;

[[Page 118 STAT. 2801]]

``(14) examine the excess costs of educating a child with a

disability and expenses associated with high cost special

education and related services;

``(15) help parents improve educational results for their

children, particularly related to transition issues;

``(16) address the unique needs of children with significant

cognitive disabilities; and

``(17) examine the special needs of limited English

proficient children with disabilities.

``(b) Standards.--The Special Education Research Commissioner shall

ensure that activities assisted under this section--

``(1) conform to high standards of quality, integrity,

accuracy, validity, and reliability;

``(2) are carried out in accordance with the standards for

the conduct and evaluation of all research and development

established by the National Center for Education Research; and

``(3) are objective, secular, neutral, and nonideological,

and are free of partisan political influence, and racial,

cultural, gender, regional, or disability bias.

``(c) Plan.--The Special Education Research Commissioner shall

propose to the Director a research plan, developed in collaboration with

the Assistant Secretary for Special Education and Rehabilitative

Services, that--

``(1) is consistent with the priorities and mission of the

Institute and the mission of the Special Education Research

Center;

``(2) is carried out, updated, and modified, as appropriate;

``(3) is consistent with the purposes of the Individuals

with Disabilities Education Act;

``(4) contains an appropriate balance across all age ranges

and types of children with disabilities;

``(5) provides for research that is objective and uses

measurable indicators to assess its progress and results; and

``(6) is coordinated with the comprehensive plan developed

under section 681 of the Individuals with Disabilities Education

Act.

``(d) Grants, Contracts, and Cooperative Agreements.--

``(1) In general.--In carrying out the duties under this

section, the Director may award grants to, or enter into

contracts or cooperative agreements with, eligible applicants.

``(2) Eligible applicants.--Activities carried out under

this subsection through contracts, grants, or cooperative

agreements shall be carried out only by recipients with the

ability and capacity to conduct scientifically valid research.

``(3) Applications.--An eligible applicant that wishes to

receive a grant, or enter into a contract or cooperative

agreement, under this section shall submit an application to the

Director at such time, in such manner, and containing such

information as the Director may require.

``(e) Dissemination.--The Special Education Research Center shall--

``(1) synthesize and disseminate, through the National

Center for Education Evaluation and Regional Assistance, the

findings and results of special education research conducted or

supported by the Special Education Research Center; and

[[Page 118 STAT. 2802]]

``(2) assist the Director in the preparation of a biennial

report, as described in section 119.

``(f) Authorization of Appropriations.--There are authorized to be

appropriated to carry out this part such sums as may be necessary for

each of fiscal years 2005 through 2010.''.

(b) Conforming Amendments.--

(1) Amendments to the table of contents.--The table of

contents in section 1 of the Act entitled ``An Act to provide

for improvement of Federal education research, statistics,

evaluation, information, and dissemination, and for other

purposes'', approved November 5, 2002 (116 Stat. 1940; Public

Law 107-279), is amended--

(A) by redesignating the item relating to part E as

the item relating to part F; and

(B) by inserting after the item relating to section

174 the following:

``Part E--National Center for Special Education Research

``Sec. 175. Establishment.

``Sec. 176. Commissioner for Special Education Research.

``Sec. 177. Duties.''.

(2) Education sciences reform act of 2002.--The Education

Sciences Reform Act of 2002 (20 U.S.C. 9501 et seq.) is

amended--

(A) in section 111(b)(1)(A) (20 U.S.C.

9511(b)(1)(A)), by inserting ``and special education''

after ``early childhood education'';

(B) in section 111(c)(3) (20 U.S.C. 9511(c)(3))--

(i) in subparagraph (B), by striking ``and''

after the semicolon;

(ii) in subparagraph (C), by striking the

period and inserting ``; and''; and

(iii) by adding at the end the following:

``(D) the National Center for Special Education

Research (as described in part E).'';

(C) in section 115(a) (20 U.S.C. 9515(a)), by

striking ``including those'' and all that follows

through ``such as'' and inserting ``including those

associated with the goals and requirements of the

Elementary and Secondary Education Act of 1965 (20

U.S.C. 6301 et seq.), the Individuals with Disabilities

Education Act (20 U.S.C. 1400 et seq.), and the Higher

Education Act of 1965 (20 U.S.C. 1001 et seq.), such

as''; and

(D) in section 116(c)(4)(A)(ii) (20 U.S.C.

9516(c)(4)(A)(ii), by inserting ``special education

experts,'' after ``early childhood experts,''.

(3) Elementary and secondary education act of 1965.--Section

1117(a)(3) of the Elementary and Secondary Education Act of 1965

(20 U.S.C. 6317(a)(3)) is amended by striking ``part E'' and

inserting ``part D''.

SEC. 202. NATIONAL BOARD FOR EDUCATION SCIENCES.

Section 116(c)(9) of the Education Sciences Reform Act of 2002 (20

U.S.C. 9516(c)(9)) is amended by striking the third sentence and

inserting the following: ``Meetings of the Board are subject to section

552b of title 5, United States Code (commonly referred to as the

Government in the Sunshine Act).''.

[[Page 118 STAT. 2803]]

SEC. 203. REGIONAL ADVISORY COMMITTEES.

Section 206(d)(3) of the Educational Technical Assistance Act of

2002 (20 U.S.C. 9605(d)(3)) is amended by striking ``Academy'' and

inserting ``Institute''.

TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. AMENDMENT TO CHILDREN'S HEALTH ACT OF 2000.

Section 1004 of the Children's Health Act of 2000 (42 U.S.C. 285g

note) is amended--

(1) in subsection (b), by striking ``Agency'' and inserting

``Agency, and the Department of Education''; and

(2) in subsection (c)--

(A) in paragraph (2), by striking ``and'' after the

semicolon;

(B) in paragraph (3), by striking the period at the

end and inserting ``; and''; and

(C) by adding at the end the following:

``(4) be conducted in compliance with section 444 of the

General Education Provisions Act (20 U.S.C. 1232g), including

the requirement of prior parental consent for the disclosure of

any education records, except without the use of authority or

exceptions granted to authorized representatives of the

Secretary of Education for the evaluation of Federally-supported

education programs or in connection with the enforcement of the

Federal legal requirements that relate to such programs.''.

SEC. 302. EFFECTIVE DATES.

(a) <<NOTE: 20 USC 1400 note.>> Parts A, B, and C, and subpart 1 of

part D.--

(1) In general.--Except as provided in paragraph (2), parts

A, B, and C, and subpart 1 of part D, of the Individuals with

Disabilities Education Act, as amended by title I, shall take

effect on July 1, 2005.

(2) Highly qualified definition.--Subparagraph (A), and

subparagraphs (C) through (F), of section 602(10) of the

Individuals with Disabilities Education Act, as amended by title

I, shall take effect on the date of enactment of this Act for

purposes of the Elementary and Secondary Education Act of 1965.

(b) Subparts 2, 3, and 4 of part D.--Subparts 2, 3, and 4 of part D

of the Individuals with Disabilities Education Act, as amended by title

I, shall take effect on the date of enactment of this Act.

(c) <<NOTE: 20 USC 9567b note.>> Education Sciences Reform Act of

2002.--

(1) National center for special education research.--

Sections 175, 176, and 177 (other than section 177(c)) of the

Education Sciences Reform Act of 2002, as enacted by section

201(a)(2) of this Act, shall take effect on the date of

enactment of this Act.

(2) Plan.--Section 177(c) of the Education Sciences Reform

Act of 2002, as enacted by section 201(a)(2) of this Act, shall

take effect on October 1, 2005.

SEC. 303. <<NOTE: 20 USC 1400 note.>> TRANSITION.

(a) Orderly Transition.--

[[Page 118 STAT. 2804]]

(1) In general.--The Secretary of Education (in this section

referred to as ``the Secretary'') shall take such steps as are

necessary to provide for the orderly transition from the

Individuals with Disabilities Education Act, as such Act was in

effect on the day preceding the date of enactment of this Act,

to the Individuals with Disabilities Education Act and part E of

the Education Sciences Reform Act of 2002, as amended by this

Act.

(2) Limitation.--The Secretary's authority in paragraph (1)

shall terminate 1 year after the date of enactment of this Act.

(b) Multi-year Awards.--Notwithstanding any other provision of law,

the Secretary may use funds appropriated under part D of the Individuals

with Disabilities Education Act to make continuation awards for projects

that were funded under section 618, and part D, of the Individuals with

Disabilities Education Act (as such section and part were in effect on

September 30, 2004), in accordance with the terms of the original

awards.

(c) Research.--Notwithstanding section 302(b) or any other provision

of law, the Secretary may award funds that are appropriated under the

Department of Education Appropriations Act, 2005 for special education

research under either of the headings ``Special Education'' or

``Institute of Education Sciences'' in accordance with sections 672 and

674 of the Individuals with Disabilities Education Act, as such sections

were in effect on October 1, 2004.

SEC. 304. REPEALER.

Section 644 of the <<NOTE: 20 USC 1444.>> Individuals with

Disabilities Education Act, as such section was in effect on the day

before the enactment of this Act, is repealed.

SEC. 305. IDEA TECHNICAL AMENDMENTS TO OTHER LAWS.

(a) Title 10.--Section 2164(f) of title 10, United States Code is

amended--

(1) in paragraph (1)(B)--

(A) by striking ``infants and toddlers'' each place

the term appears and inserting ``infants or toddlers'';

(B) by striking ``part H'' and inserting ``part C'';

and

(C) by striking ``1471'' and inserting ``1431''; and

(2) in paragraph (3)--

(A) in subparagraph (A)--

(i) by striking ``602(a)(1)'' and inserting

``602''; and

(ii) by striking ``1401(a)(1)'' and inserting

``1401'';

(B) by striking subparagraph (B);

(C) by redesignating subparagraph (C) as

subparagraph (B); and

(D) in subparagraph (B) (as so redesignated)--

(i) by striking ``and toddlers'' and inserting

``or toddlers'';

(ii) by striking ``672(1)'' and inserting

``632''; and

(iii) by striking ``1472(1)'' and inserting

``1432''.

(b) Defense Dependents Education Act of 1978.--Section 1409(c)(2) of

the Defense Dependents Education Act of 1978 (20 U.S.C. 927(c)(2)) is

amended--

(1) by striking ``677'' and inserting ``636''; and

(2) by striking ``part H'' and inserting ``part C''.

[[Page 118 STAT. 2805]]

(c) Higher Education Act of 1965.--The Higher Education Act of 1965

(20 U.S.C. 1001 et seq.) is amended--

(1) in section 465(a)(2)(C) (20 U.S.C. 1087ee(a)(2)(C), by

striking ``Individuals With'' and inserting ``Individuals with''

and;

(2) in section 469(c) (20 U.S.C. 1087ii(c)), by striking

``602(a)(1) and 672(1)'' and inserting ``602 and 632''.

(d) Education of the Deaf Act.--The matter preceding subparagraph

(A) of section 104(b)(2) of the Education of the Deaf Act (20 U.S.C.

4304(b)(2)) is amended by striking ``618(a)(1)(A)'' and inserting

``618(a)(1)''.

(e) Goals 2000: Educate America Act.--Section 3(a)(9) of the Goals

2000: Educate America Act (20 U.S.C. 5802(a)(9)) is amended by striking

``602(a)(17)'' and inserting ``602''.

(f) School-to-Work Opportunities Act of 1994.--Section 4(15) of the

School-to-Work Opportunities Act of 1994 (20 U.S.C. 6103(15)) is

amended--

(1) by striking ``602(a)(17)'' and inserting ``602''; and

(2) by striking ``1401(17)'' and inserting ``1401''.

(g) Elementary and Secondary Education Act of 1965.--The Elementary

and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) is

amended--

(1) in section 1111(b)(2)(I)(ii) (20 U.S.C.

6311(b)(2)(I)(ii)), by striking ``612(a)(17)(A)'' and inserting

``612(a)(16)(A)'';

(2) in section 5208 (20 U.S.C. 7221g), by striking

``602(11)'' and inserting ``602''; and

(3) in section 5563(b)(8)(C) (20 U.S.C. 7273b(b)(8)(C)), by

striking ``682'' and inserting ``671''.

(h) Rehabilitation Act of 1973.--The Rehabilitation Act of 1973 (29

U.S.C. 701 et seq.) is amended--

(1) in section 101(a)(11)(D)(ii) (29 U.S.C.

721(a)(11)(D)(ii)), by striking ``(as added by section 101 of

Public Law 105-17)'';

(2) in section 105(b)(1)(A)(ii) (29 U.S.C.

725(b)(1)(A)(ii)), by striking ``682(a) of the Individuals with

Disabilities Education Act (as added by section 101 of the

Individuals with Disabilities Education Act Amendments of 1997;

Public Law 105-17)'' and inserting ``671 of the Individuals with

Disabilities Education Act'';

(3) in section 105(c)(6) (29 U.S.C. 725(c)(6))--

(A) by striking ``612(a)(21)'' and inserting

``612(a)(20)'';

(B) by striking ``Individual with'' and inserting

``Individuals with''; and

(C) by striking ``(as amended by section 101 of the

Individuals with Disabilities Education Act Amendments

of 1997; Public Law 105-17)'';

(4) in section 302(f)(1)(D)(ii) (29 U.S.C. 772

(f)(1)(D)(ii)), by striking ``(as amended by section 101 of the

Individuals with Disabilities Education Act Amendments of 1997

(Public Law 105-17))'';

(5) in section 303(c)(6) (29 U.S.C. 773(c)(6))--

(A) by striking ``682(a)'' and inserting ``671'';

and

(B) by striking ``(as added by section 101 of the

Individuals with Disabilities Education Act Amendments

of 1997; Public Law 105-17)''; and

(6) in section 303(c)(4)(A)(ii) (29 U.S.C.

773(c)(4)(A)(ii)), by striking ``682(a) of the Individuals with

Disabilities Education

[[Page 118 STAT. 2806]]

Act (as added by section 101 of the Individuals with

Disabilities Education Act Amendments of 1997; Public Law 105-

17)'' and inserting ``671 of the Individuals with Disabilities

Education Act''.

(i) Public Health Service Act.--The Public Health Service Act (42

U.S.C. 201 et seq.) is amended--

(1) in section 399A(f) <<NOTE: 42 USC 290bb-25.>> (42 U.S.C.

280d(f), by striking ``part H'' and inserting ``part C'';

(2) in section 399(n)(3) (42 U.S.C. 280c-6(n)(3)), by

striking ``part H'' and inserting ``part C'';

(3) in section 399A(b)(8) <<NOTE: 42 USC 290bb-25.>> (42

U.S.C. 280d(b)(8)), by striking ``part H'' and inserting ``part

C'';

(4) in section 562(d)(3)(B) (42 U.S.C. 290ff-1(d)(3)(B)), by

striking ``and H'' and inserting ``and C''; and

(5) in section 563(d)(2) (42 U.S.C. 290ff-2(d)(2)), by

striking ``602(a)(19)'' and inserting ``602''.

(j) Social Security Act.--The Social Security Act (42 U.S.C. 301 et

seq.) is amended--

(1) in section 1903(c) (42 U.S.C. 1396b(c)), by striking

``part H'' and inserting ``part C''; and

(2) in section 1915(c)(5)(C)(i) (42 U.S.C.

1396n(c)(5)(C)(i)), by striking ``(as defined in section 602(16)

and (17) of the Education of the Handicapped Act (20 U.S.C.

1401(16), (17))'' and inserting ``(as such terms are defined in

section 602 of the Individuals with Disabilities Education Act

(20 U.S.C. 1401))''.

(k) Domestic Volunteer Service Act of 1973.--Section 211(a) of the

Domestic Volunteer Service Act of 1973 (42 U.S.C. 5011(a)) is amended--

(1) by striking ``part H'' and inserting ``part C''; and

(2) by striking ``1471'' and inserting ``1431''.

(l) Head Start Act.--The Head Start Act (42 U.S.C. 9831 et seq.) is

amended--

(1) in section 640(a)(5)(C)(iv) (42 U.S.C.

9835(a)(5)(C)(iv)), by striking ``1445'' and inserting ``1444'';

(2) in section 640(d) (42 U.S.C. 9835(d))--

(A) by striking ``U.S.C'' and inserting ``U.S.C.'';

and

(B) by striking ``1445'' and inserting ``1444'';

(3) in section 641(d)(3) (42 U.S.C. 9836(d)(3)), by striking

``U.S.C 1431-1445'' and inserting ``U.S.C. 1431-1444''; and

(4) in section 642(c) (42 U.S.C. 9837(c)), by striking

``1445'' and inserting ``1444''.

(m) National and Community Service Act of 1990.--Section 101(21)(B)

of the National and Community Service Act of 1990 (42 U.S.C.

12511(21)(B)) is amended--

(1) by striking ``602(a)(1)'' and inserting ``602''; and

(2) by striking ``1401(a)(1)'' and inserting ``1401''.

(n) Developmental Disabilities Assistance and Bill of Rights Act of

2000.--The Developmental Disabilities Assistance and Bill of Rights Act

of 2000 (42 U.S.C. 15001 et seq.) is amended--

(1) in section 125(c)(5)(G)(i) (42 U.S.C.

15025(c)(5)(G)(i)), by striking ``subtitle C'' and inserting

``part C''; and

(2) in section 154(a)(3)(E)(ii)(VI) (42 U.S.C.

15064(a)(3)(E)(ii)(VI))--

(A) by striking ``682 or 683'' and inserting ``671

or 672''; and

(B) by striking ``(20 U.S.C. 1482, 1483)''.

[[Page 118 STAT. 2807]]

(o) District of Columbia School Reform Act of 1995.--The District of

Columbia School Reform Act of 1995 (Public Law 104-134) is amended--

(1) <<NOTE: 110 Stat. 1321-107.>> in section 2002(32)--

(A) by striking ``602(a)(1)'' and inserting ``602'';

and

(B) by striking ``1401(a)(1)'' and inserting

``1401'';

(2) in section 2202(19), <<NOTE: 110 Stat. 1321-116.>> by

striking ``Individuals With'' and inserting ``Individuals

with''; and

(3) <<NOTE: 110 Stat. 1321-125.>> in section 2210--

(A) in the heading for subsection (c), by striking

``With Disabilities'' and inserting ``with

Disabilities''; and

(B) in subsection (c), by striking ``Individuals

With'' and inserting ``Individuals with''.

SEC. 306. COPYRIGHT.

Section 121 of title 17, United States Code, is amended--

(1) by redesignating subsection (c) as subsection (d);

(2) by inserting after subsection (b) the following:

``(c) Notwithstanding the provisions of section 106, it is not an

infringement of copyright for a publisher of print instructional

materials for use in elementary or secondary schools to create and

distribute to the National Instructional Materials Access Center copies

of the electronic files described in sections 612(a)(23)(C), 613(a)(6),

and section 674(e) of the Individuals with Disabilities Education Act

that contain the contents of print instructional materials using the

National Instructional Material Accessibility Standard (as defined in

section 674(e)(3) of that Act), if--

``(1) the inclusion of the contents of such print

instructional materials is required by any State educational

agency or local educational agency;

``(2) the publisher had the right to publish such print

instructional materials in print formats; and

``(3) such copies are used solely for reproduction or

distribution of the contents of such print instructional

materials in specialized formats.''; and

(3) in subsection (d), as redesignated by this section--

(A) in paragraph (2), by striking ``and'' after the

semicolon; and

(B) by striking paragraph (3) and inserting the

following:

``(3) `print instructional materials' has the meaning given

under section 674(e)(3)(C) of the Individuals with Disabilities

Education Act; and

``(4) `specialized formats' means--

``(A) braille, audio, or digital text which is

exclusively for use by blind or other persons with

disabilities; and

``(B) with respect to print instructional materials,

includes large print formats when such materials are

[[Page 118 STAT. 2808]]

distributed exclusively for use by blind or other

persons with disabilities.''.

Approved December 3, 2004.

LEGISLATIVE HISTORY--H.R. 1350 (S. 1248):

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

HOUSE REPORTS: Nos. 108-77 (Comm. on Education and the Workforce) and

108-779 (Comm. of Conference).

SENATE REPORTS: No. 108-185 accompanying S. 1248 (Comm. on Health,

Education, Labor, and Pensions).

CONGRESSIONAL RECORD:

Vol. 149 (2003):

Apr. 30, considered and passed

House.

Vol. 150 (2004):

May 13, considered and passed

Senate, amended, in lieu of

S. 1248.

Nov. 19, House and Senate agreed to

conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 40 (2004):

Dec. 3, Presidential statement and remarks.

<all>