The Individuals with Disabilities Education Act
[[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.