```

[108th Congress Public Law 446]
[From the U.S. Government Printing Office]

[[Page 118 STAT. 2647]]

Public Law 108-446
108th Congress

                                 An Act

 
To reauthorize the Individuals with Disabilities Education Act, and for 
         other purposes. <<NOTE: Dec. 3, 2004 -  [H.R. 1350]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Individuals with 
Disabilities Education Improvement Act of 2004. 20 USC 1400 note.>> 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Individuals with Disabilities 
Education Improvement Act of 2004''.

SEC. 2. ORGANIZATION OF THE ACT.

    This Act is organized into the following titles:
            Title I--Amendments to the Individuals With Disabilities 
        Education Act.
            Title II--National Center for Special Education Research.
            Title III--Miscellaneous Provisions.

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

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

    Parts A through D of the Individuals with Disabilities Education Act 
(20 U.S.C. 1400 et seq.) are amended to read as follows:

                      ``PART A--GENERAL PROVISIONS

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

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

                      ``Part A--General Provisions

        ``Sec. 601. Short title; table of contents; findings; purposes.
        ``Sec. 602. Definitions.
        ``Sec. 603. Office of Special Education Programs.
        ``Sec. 604. Abrogation of State sovereign immunity.
        ``Sec. 605. Acquisition of equipment; construction or alteration 
                            of facilities.
        ``Sec. 606. Employment of individuals with disabilities.
        ``Sec. 607. Requirements for prescribing regulations.
        ``Sec. 608. State administration.
        ``Sec. 609. Paperwork reduction.
        ``Sec. 610. Freely associated states.

[[Page 118 STAT. 2648]]

  ``Part B--Assistance for Education of All Children With Disabilities

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

            ``Part C--Infants and Toddlers With Disabilities

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

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

        ``Sec. 650. Findings.
             ``subpart 1--state personnel development grants

        ``Sec. 651. Purpose; definition of personnel; program authority.
        ``Sec. 652. Eligibility and collaborative process.
        ``Sec. 653. Applications.
        ``Sec. 654. Use of funds.
        ``Sec. 655. Authorization of appropriations.
    ``subpart 2--personnel preparation, technical assistance, model 
        demonstration projects, and dissemination of information

        ``Sec. 661. Purpose; definition of eligible entity.
        ``Sec. 662. Personnel development to improve services and 
                            results for children with disabilities.
        ``Sec. 663. Technical assistance, demonstration projects, 
                            dissemination of information, and 
                            implementation of scientifically based 
                            research.
        ``Sec. 664. Studies and evaluations.
        ``Sec. 665. Interim alternative educational settings, behavioral 
                            supports, and systemic school interventions.
        ``Sec. 667. Authorization of appropriations.
 ``subpart 3--supports to improve results for children with disabilities

        ``Sec. 670. Purposes.
        ``Sec. 671. Parent training and information centers.
        ``Sec. 672. Community parent resource centers.
        ``Sec. 673. Technical assistance for parent training and 
                            information centers.
        ``Sec. 674. Technology development, demonstration, and 
                            utilization; and media services.
        ``Sec. 675. Authorization of appropriations.
                     ``subpart 4--general provisions

        ``Sec. 681. Comprehensive plan for subparts 2 and 3.
        ``Sec. 682. Administrative provisions.

    ``(c) Findings.--Congress finds the following:
            ``(1) Disability is a natural part of the human experience 
        and in no way diminishes the right of individuals to participate 
        in or contribute to society. Improving educational results for 
        children with disabilities is an essential element of our 
        national

[[Page 118 STAT. 2649]]

        policy of ensuring equality of opportunity, full participation, 
        independent living, and economic self-sufficiency for 
        individuals with disabilities.
            ``(2) Before the date of enactment of the Education for All 
        Handicapped Children Act of 1975 (Public Law 94-142), the 
        educational needs of millions of children with disabilities were 
        not being fully met because--
                    ``(A) the children did not receive appropriate 
                educational services;
                    ``(B) the children were excluded entirely from the 
                public school system and from being educated with their 
                peers;
                    ``(C) undiagnosed disabilities prevented the 
                children from having a successful educational 
                experience; or
                    ``(D) a lack of adequate resources within the public 
                school system forced families to find services outside 
                the public school system.
            ``(3) Since the enactment and implementation of the 
        Education for All Handicapped Children Act of 1975, this title 
        has been successful in ensuring children with disabilities and 
        the families of such children access to a free appropriate 
        public education and in improving educational results for 
        children with disabilities.
            ``(4) However, the implementation of this title has been 
        impeded by low expectations, and an insufficient focus on 
        applying replicable research on proven methods of teaching and 
        learning for children with disabilities.
            ``(5) Almost 30 years of research and experience has 
        demonstrated that the education of children with disabilities 
        can be made more effective by--
                    ``(A) having high expectations for such children and 
                ensuring their access to the general education 
                curriculum in the regular classroom, to the maximum 
                extent possible, in order to--
                          ``(i) meet developmental goals and, to the 
                      maximum extent possible, the challenging 
                      expectations that have been established for all 
                      children; and
                          ``(ii) be prepared to lead productive and 
                      independent adult lives, to the maximum extent 
                      possible;
                    ``(B) strengthening the role and responsibility of 
                parents and ensuring that families of such children have 
                meaningful opportunities to participate in the education 
                of their children at school and at home;
                    ``(C) coordinating this title with other local, 
                educational service agency, State, and Federal school 
                improvement efforts, including improvement efforts under 
                the Elementary and Secondary Education Act of 1965, in 
                order to ensure that such children benefit from such 
                efforts and that special education can become a service 
                for such children rather than a place where such 
                children are sent;
                    ``(D) providing appropriate special education and 
                related services, and aids and supports in the regular 
                classroom, to such children, whenever appropriate;
                    ``(E) supporting high-quality, intensive preservice 
                preparation and professional development for all 
                personnel who work with children with disabilities in 
                order to ensure that such personnel have the skills and 
                knowledge necessary to improve the academic achievement 
                and functional

[[Page 118 STAT. 2650]]

                performance of children with disabilities, including the 
                use of scientifically based instructional practices, to 
                the maximum extent possible;
                    ``(F) providing incentives for whole-school 
                approaches, scientifically based early reading programs, 
                positive behavioral interventions and supports, and 
                early intervening services to reduce the need to label 
                children as disabled in order to address the learning 
                and behavioral needs of such children;
                    ``(G) focusing resources on teaching and learning 
                while reducing paperwork and requirements that do not 
                assist in improving educational results; and
                    ``(H) supporting the development and use of 
                technology, including assistive technology devices and 
                assistive technology services, to maximize accessibility 
                for children with disabilities.
            ``(6) While States, local educational agencies, and 
        educational service agencies are primarily responsible for 
        providing an education for all children with disabilities, it is 
        in the national interest that the Federal Government have a 
        supporting role in assisting State and local efforts to educate 
        children with disabilities in order to improve results for such 
        children and to ensure equal protection of the law.
            ``(7) A more equitable allocation of resources is essential 
        for the Federal Government to meet its responsibility to provide 
        an equal educational opportunity for all individuals.
            ``(8) Parents and schools should be given expanded 
        opportunities to resolve their disagreements in positive and 
        constructive ways.
            ``(9) Teachers, schools, local educational agencies, and 
        States should be relieved of irrelevant and unnecessary 
        paperwork burdens that do not lead to improved educational 
        outcomes.
            ``(10)(A) The Federal Government must be responsive to the 
        growing needs of an increasingly diverse society.
            ``(B) America's ethnic profile is rapidly changing. In 2000, 
        1 of every 3 persons in the United States was a member of a 
        minority group or was limited English proficient.
            ``(C) Minority children comprise an increasing percentage of 
        public school students.
            ``(D) With such changing demographics, recruitment efforts 
        for special education personnel should focus on increasing the 
        participation of minorities in the teaching profession in order 
        to provide appropriate role models with sufficient knowledge to 
        address the special education needs of these students.
            ``(11)(A) The limited English proficient population is the 
        fastest growing in our Nation, and the growth is occurring in 
        many parts of our Nation.
            ``(B) Studies have documented apparent discrepancies in the 
        levels of referral and placement of limited English proficient 
        children in special education.
            ``(C) Such discrepancies pose a special challenge for 
        special education in the referral of, assessment of, and 
        provision of services for, our Nation's students from non-
        English language backgrounds.

[[Page 118 STAT. 2651]]

            ``(12)(A) Greater efforts are needed to prevent the 
        intensification of problems connected with mislabeling and high 
        dropout rates among minority children with disabilities.
            ``(B) More minority children continue to be served in 
        special education than would be expected from the percentage of 
        minority students in the general school population.
            ``(C) African-American children are identified as having 
        mental retardation and emotional disturbance at rates greater 
        than their White counterparts.
            ``(D) In the 1998-1999 school year, African-American 
        children represented just 14.8 percent of the population aged 6 
        through 21, but comprised 20.2 percent of all children with 
        disabilities.
            ``(E) Studies have found that schools with predominately 
        White students and teachers have placed disproportionately high 
        numbers of their minority students into special education.
            ``(13)(A) As the number of minority students in special 
        education increases, the number of minority teachers and related 
        services personnel produced in colleges and universities 
        continues to decrease.
            ``(B) The opportunity for full participation by minority 
        individuals, minority organizations, and Historically Black 
        Colleges and Universities in awards for grants and contracts, 
        boards of organizations receiving assistance under this title, 
        peer review panels, and training of professionals in the area of 
        special education is essential to obtain greater success in the 
        education of minority children with disabilities.
            ``(14) As the graduation rates for children with 
        disabilities continue to climb, providing effective transition 
        services to promote successful post-school employment or 
        education is an important measure of accountability for children 
        with disabilities.

    ``(d) Purposes.--The purposes of this title are--
            ``(1)(A) to ensure that all children with disabilities have 
        available to them a free appropriate public education that 
        emphasizes special education and related services designed to 
        meet their unique needs and prepare them for further education, 
        employment, and independent living;
            ``(B) to ensure that the rights of children with 
        disabilities and parents of such children are protected; and
            ``(C) to assist States, localities, educational service 
        agencies, and Federal agencies to provide for the education of 
        all children with disabilities;
            ``(2) to assist States in the implementation of a statewide, 
        comprehensive, coordinated, multidisciplinary, interagency 
        system of early intervention services for infants and toddlers 
        with disabilities and their families;
            ``(3) to ensure that educators and parents have the 
        necessary tools to improve educational results for children with 
        disabilities by supporting system improvement activities; 
        coordinated research and personnel preparation; coordinated 
        technical assistance, dissemination, and support; and technology 
        development and media services; and
            ``(4) to assess, and ensure the effectiveness of, efforts to 
        educate children with disabilities.

[[Page 118 STAT. 2652]]

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

    ``Except as otherwise provided, in this title:
            ``(1) Assistive technology device.--
                    ``(A) In general.--The term `assistive technology 
                device' means any item, piece of equipment, or product 
                system, whether acquired commercially off the shelf, 
                modified, or customized, that is used to increase, 
                maintain, or improve functional capabilities of a child 
                with a disability.
                    ``(B) Exception.--The term does not include a 
                medical device that is surgically implanted, or the 
                replacement of such device.
            ``(2) Assistive technology service.--The term `assistive 
        technology service' means any service that directly assists a 
        child with a disability in the selection, acquisition, or use of 
        an assistive technology device. Such term includes--
                    ``(A) the evaluation of the needs of such child, 
                including a functional evaluation of the child in the 
                child's customary environment;
                    ``(B) purchasing, leasing, or otherwise providing 
                for the acquisition of assistive technology devices by 
                such child;
                    ``(C) selecting, designing, fitting, customizing, 
                adapting, applying, maintaining, repairing, or replacing 
                assistive technology devices;
                    ``(D) coordinating and using other therapies, 
                interventions, or services with assistive technology 
                devices, such as those associated with existing 
                education and rehabilitation plans and programs;
                    ``(E) training or technical assistance for such 
                child, or, where appropriate, the family of such child; 
                and
                    ``(F) training or technical assistance for 
                professionals (including individuals providing education 
                and rehabilitation services), employers, or other 
                individuals who provide services to, employ, or are 
                otherwise substantially involved in the major life 
                functions of such child.
            ``(3) Child with a disability.--
                    ``(A) In general.--The term `child with a 
                disability' means a child--
                          ``(i) with mental retardation, hearing 
                      impairments (including deafness), speech or 
                      language impairments, visual impairments 
                      (including blindness), serious emotional 
                      disturbance (referred to in this title as 
                      `emotional disturbance'), orthopedic impairments, 
                      autism, traumatic brain injury, other health 
                      impairments, or specific learning disabilities; 
                      and
                          ``(ii) who, by reason thereof, needs special 
                      education and related services.
                    ``(B) Child aged 3 through 9.--The term `child with 
                a disability' for a child aged 3 through 9 (or any 
                subset of that age range, including ages 3 through 5), 
                may, at the discretion of the State and the local 
                educational agency, include a child--
                          ``(i) experiencing developmental delays, as 
                      defined by the State and as measured by 
                      appropriate diagnostic

[[Page 118 STAT. 2653]]

                      instruments and procedures, in 1 or more of the 
                      following areas: physical development; cognitive 
                      development; communication development; social or 
                      emotional development; or adaptive development; 
                      and
                          ``(ii) who, by reason thereof, needs special 
                      education and related services.
            ``(4) Core academic subjects.--The term `core academic 
        subjects' has the meaning given the term in section 9101 of the 
        Elementary and Secondary Education Act of 1965.
            ``(5) Educational service agency.--The term `educational 
        service agency'--
                    ``(A) means a regional public multiservice agency--
                          ``(i) authorized by State law to develop, 
                      manage, and provide services or programs to local 
                      educational agencies; and
                          ``(ii) recognized as an administrative agency 
                      for purposes of the provision of special education 
                      and related services provided within public 
                      elementary schools and secondary schools of the 
                      State; and
                    ``(B) includes any other public institution or 
                agency having administrative control and direction over 
                a public elementary school or secondary school.
            ``(6) Elementary school.--The term `elementary school' means 
        a nonprofit institutional day or residential school, including a 
        public elementary charter school, that provides elementary 
        education, as determined under State law.
            ``(7) Equipment.--The term `equipment' includes--
                    ``(A) machinery, utilities, and built-in equipment, 
                and any necessary enclosures or structures to house such 
                machinery, utilities, or equipment; and
                    ``(B) all other items necessary for the functioning 
                of a particular facility as a facility for the provision 
                of educational services, including items such as 
                instructional equipment and necessary furniture; 
                printed, published, and audio-visual instructional 
                materials; telecommunications, sensory, and other 
                technological aids and devices; and books, periodicals, 
                documents, and other related materials.
            ``(8) Excess costs.--The term `excess costs' means those 
        costs that are in excess of the average annual per-student 
        expenditure in a local educational agency during the preceding 
        school year for an elementary school or secondary school 
        student, as may be appropriate, and which shall be computed 
        after deducting--
                    ``(A) amounts received--
                          ``(i) under part B;
                          ``(ii) under part A of title I of the 
                      Elementary and Secondary Education Act of 1965; 
                      and
                          ``(iii) under parts A and B of title III of 
                      that Act; and
                    ``(B) any State or local funds expended for programs 
                that would qualify for assistance under any of those 
                parts.
            ``(9) Free appropriate public education.--The term `free 
        appropriate public education' means special education and 
        related services that--
                    ``(A) have been provided at public expense, under 
                public supervision and direction, and without charge;

[[Page 118 STAT. 2654]]

                    ``(B) meet the standards of the State educational 
                agency;
                    ``(C) include an appropriate preschool, elementary 
                school, or secondary school education in the State 
                involved; and
                    ``(D) are provided in conformity with the 
                individualized education program required under section 
                614(d).
            ``(10) Highly qualified.--
                    ``(A) In general.--For any special education 
                teacher, the term `highly qualified' has the meaning 
                given the term in section 9101 of the Elementary and 
                Secondary Education Act of 1965, except that such term 
                also--
                          ``(i) includes the requirements described in 
                      subparagraph (B); and
                          ``(ii) includes the option for teachers to 
                      meet the requirements of section 9101 of such Act 
                      by meeting the requirements of subparagraph (C) or 
                      (D).
                    ``(B) Requirements for special education teachers.--
                When used with respect to any public elementary school 
                or secondary school special education teacher teaching 
                in a State, such term means that--
                          ``(i) the teacher has obtained full State 
                      certification as a special education teacher 
                      (including certification obtained through 
                      alternative routes to certification), or passed 
                      the State special education teacher licensing 
                      examination, and holds a license to teach in the 
                      State as a special education teacher, except that 
                      when used with respect to any teacher teaching in 
                      a public charter school, the term means that the 
                      teacher meets the requirements set forth in the 
                      State's public charter school law;
                          ``(ii) the teacher has not had special 
                      education certification or licensure requirements 
                      waived on an emergency, temporary, or provisional 
                      basis; and
                          ``(iii) the teacher holds at least a 
                      bachelor's degree.
                    ``(C) Special education teachers teaching to 
                alternate achievement standards.--When used with respect 
                to a special education teacher who teaches core academic 
                subjects exclusively to children who are assessed 
                against alternate achievement standards established 
                under the regulations promulgated under section 
                1111(b)(1) of the Elementary and Secondary Education Act 
                of 1965, such term means the teacher, whether new or not 
                new to the profession, may either--
                          ``(i) meet the applicable requirements of 
                      section 9101 of such Act for any elementary, 
                      middle, or secondary school teacher who is new or 
                      not new to the profession; or
                          ``(ii) meet the requirements of subparagraph 
                      (B) or (C) of section 9101(23) of such Act as 
                      applied to an elementary school teacher, or, in 
                      the case of instruction above the elementary 
                      level, has subject matter knowledge appropriate to 
                      the level of instruction being provided, as 
                      determined by the State, needed to effectively 
                      teach to those standards.
                    ``(D) Special education teachers teaching multiple 
                subjects.--When used with respect to a special education

[[Page 118 STAT. 2655]]

                teacher who teaches 2 or more core academic subjects 
                exclusively to children with disabilities, such term 
                means that the teacher may either--
                          ``(i) meet the applicable requirements of 
                      section 9101 of the Elementary and Secondary 
                      Education Act of 1965 for any elementary, middle, 
                      or secondary school teacher who is new or not new 
                      to the profession;
                          ``(ii) in the case of a teacher who is not new 
                      to the profession, demonstrate competence in all 
                      the core academic subjects in which the teacher 
                      teaches in the same manner as is required for an 
                      elementary, middle, or secondary school teacher 
                      who is not new to the profession under section 
                      9101(23)(C)(ii) of such Act, which may include a 
                      single, high objective uniform State standard of 
                      evaluation covering multiple subjects; or
                          ``(iii) in the case of a new special education 
                      teacher who teaches multiple subjects and who is 
                      highly qualified in mathematics, language arts, or 
                      science, demonstrate competence in the other core 
                      academic subjects in which the teacher teaches in 
                      the same manner as is required for an elementary, 
                      middle, or secondary school teacher under section 
                      9101(23)(C)(ii) of such Act, which may include a 
                      single, high objective uniform State standard of 
                      evaluation covering multiple subjects, not later 
                      than 2 years after the date of employment.
                    ``(E) Rule of construction.--Notwithstanding any 
                other individual right of action that a parent or 
                student may maintain under this part, nothing in this 
                section or part shall be construed to create a right of 
                action on behalf of an individual student or class of 
                students for the failure of a particular State 
                educational agency or local educational agency employee 
                to be highly qualified.
                    ``(F) Definition for purposes of the esea.--A 
                teacher who is highly qualified under this paragraph 
                shall be considered highly qualified for purposes of the 
                Elementary and Secondary Education Act of 1965.
            ``(11) Homeless children.--The term `homeless children' has 
        the meaning given the term `homeless children and youths' in 
        section 725 of the McKinney-Vento Homeless Assistance Act (42 
        U.S.C. 11434a).
            ``(12) Indian.--The term `Indian' means an individual who is 
        a member of an Indian tribe.
            ``(13) Indian tribe.--The term `Indian tribe' means any 
        Federal or State Indian tribe, band, rancheria, pueblo, colony, 
        or community, including any Alaska Native village or regional 
        village corporation (as defined in or established under the 
        Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.)).
            ``(14) Individualized education program; IEP.--The term 
        `individualized education program' or `IEP' means a written 
        statement for each child with a disability that is developed, 
        reviewed, and revised in accordance with section 614(d).
            ``(15) Individualized family service plan.--The term 
        `individualized family service plan' has the meaning given the 
        term in section 636.

[[Page 118 STAT. 2656]]

            ``(16) Infant or toddler with a disability.--The term 
        `infant or toddler with a disability' has the meaning given the 
        term in section 632.
            ``(17) Institution of higher education.--The term 
        `institution of higher education'--
                    ``(A) has the meaning given the term in section 101 
                of the Higher Education Act of 1965; and
                    ``(B) also includes any community college receiving 
                funding from the Secretary of the Interior under the 
                Tribally Controlled College or University Assistance Act 
                of 1978.
            ``(18) Limited english proficient.--The term `limited 
        English proficient' has the meaning given the term in section 
        9101 of the Elementary and Secondary Education Act of 1965.
            ``(19) Local educational agency.--
                    ``(A) In general.--The term `local educational 
                agency' means a public board of education or other 
                public authority legally constituted within a State for 
                either administrative control or direction of, or to 
                perform a service function for, public elementary 
                schools or secondary schools in a city, county, 
                township, school district, or other political 
                subdivision of a State, or for such combination of 
                school districts or counties as are recognized in a 
                State as an administrative agency for its public 
                elementary schools or secondary schools.
                    ``(B) Educational service agencies and other public 
                institutions or agencies.--The term includes--
                          ``(i) an educational service agency; and
                          ``(ii) any other public institution or agency 
                      having administrative control and direction of a 
                      public elementary school or secondary school.
                    ``(C) BIA funded schools.--The term includes an 
                elementary school or secondary school funded by the 
                Bureau of Indian Affairs, but only to the extent that 
                such inclusion makes the school eligible for programs 
                for which specific eligibility is not provided to the 
                school in another provision of law and the school does 
                not have a student population that is smaller than the 
                student population of the local educational agency 
                receiving assistance under this title with the smallest 
                student population, except that the school shall not be 
                subject to the jurisdiction of any State educational 
                agency other than the Bureau of Indian Affairs.
            ``(20) Native language.--The term `native language', when 
        used with respect to an individual who is limited English 
        proficient, means the language normally used by the individual 
        or, in the case of a child, the language normally used by the 
        parents of the child.
            ``(21) Nonprofit.--The term `nonprofit', as applied to a 
        school, agency, organization, or institution, means a school, 
        agency, organization, or institution owned and operated by 1 or 
        more nonprofit corporations or associations no part of the net 
        earnings of which inures, or may lawfully inure, to the benefit 
        of any private shareholder or individual.
            ``(22) Outlying area.--The term `outlying area' means the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.

[[Page 118 STAT. 2657]]

            ``(23) Parent.--The term `parent' means--
                    ``(A) a natural, adoptive, or foster parent of a 
                child (unless a foster parent is prohibited by State law 
                from serving as a parent);
                    ``(B) a guardian (but not the State if the child is 
                a ward of the State);
                    ``(C) an individual acting in the place of a natural 
                or adoptive parent (including a grandparent, stepparent, 
                or other relative) with whom the child lives, or an 
                individual who is legally responsible for the child's 
                welfare; or
                    ``(D) except as used in sections 615(b)(2) and 
                639(a)(5), an individual assigned under either of those 
                sections to be a surrogate parent.
            ``(24) Parent organization.--The term `parent organization' 
        has the meaning given the term in section 671(g).
            ``(25) Parent training and information center.--The term 
        `parent training and information center' means a center assisted 
        under section 671 or 672.
            ``(26) Related services.--
                    ``(A) In general.--The term `related services' means 
                transportation, and such developmental, corrective, and 
                other supportive services (including speech-language 
                pathology and audiology services, interpreting services, 
                psychological services, physical and occupational 
                therapy, recreation, including therapeutic recreation, 
                social work services, school nurse services designed to 
                enable a child with a disability to receive a free 
                appropriate public education as described in the 
                individualized education program of the child, 
                counseling services, including rehabilitation 
                counseling, orientation and mobility services, and 
                medical services, except that such medical services 
                shall be for diagnostic and evaluation purposes only) as 
                may be required to assist a child with a disability to 
                benefit from special education, and includes the early 
                identification and assessment of disabling conditions in 
                children.
                    ``(B) Exception.--The term does not include a 
                medical device that is surgically implanted, or the 
                replacement of such device.
            ``(27) Secondary school.--The term `secondary school' means 
        a nonprofit institutional day or residential school, including a 
        public secondary charter school, that provides secondary 
        education, as determined under State law, except that it does 
        not include any education beyond grade 12.
            ``(28) Secretary.--The term `Secretary' means the Secretary 
        of Education.
            ``(29) Special education.--The term `special education' 
        means specially designed instruction, at no cost to parents, to 
        meet the unique needs of a child with a disability, including--
                    ``(A) instruction conducted in the classroom, in the 
                home, in hospitals and institutions, and in other 
                settings; and
                    ``(B) instruction in physical education.
            ``(30) Specific learning disability.--
                    ``(A) In general.--The term `specific learning 
                disability' means a disorder in 1 or more of the basic 
                psychological processes involved in understanding or in 
                using

[[Page 118 STAT. 2658]]

                language, spoken or written, which disorder may manifest 
                itself in the imperfect ability to listen, think, speak, 
                read, write, spell, or do mathematical calculations.
                    ``(B) Disorders included.--Such term includes such 
                conditions as perceptual disabilities, brain injury, 
                minimal brain dysfunction, dyslexia, and developmental 
                aphasia.
                    ``(C) Disorders not included.--Such term does not 
                include a learning problem that is primarily the result 
                of visual, hearing, or motor disabilities, of mental 
                retardation, of emotional disturbance, or of 
                environmental, cultural, or economic disadvantage.
            ``(31) State.--The term `State' means each of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, and 
        each of the outlying areas.
            ``(32) State educational agency.--The term `State 
        educational agency' means the State board of education or other 
        agency or officer primarily responsible for the State 
        supervision of public elementary schools and secondary schools, 
        or, if there is no such officer or agency, an officer or agency 
        designated by the Governor or by State law.
            ``(33) Supplementary aids and services.--The term 
        `supplementary aids and services' means aids, services, and 
        other supports that are provided in regular education classes or 
        other education-related settings to enable children with 
        disabilities to be educated with nondisabled children to the 
        maximum extent appropriate in accordance with section 612(a)(5).
            ``(34) Transition services.--The term `transition services' 
        means a coordinated set of activities for a child with a 
        disability that--
                    ``(A) is designed to be within a results-oriented 
                process, that is focused on improving the academic and 
                functional achievement of the child with a disability to 
                facilitate the child's movement from school to post-
                school activities, including post-secondary education, 
                vocational education, integrated employment (including 
                supported employment), continuing and adult education, 
                adult services, independent living, or community 
                participation;
                    ``(B) is based on the individual child's needs, 
                taking into account the child's strengths, preferences, 
                and interests; and
                    ``(C) includes instruction, related services, 
                community experiences, the development of employment and 
                other post-school adult living objectives, and, when 
                appropriate, acquisition of daily living skills and 
                functional vocational evaluation.
            ``(35) Universal design.--The term `universal design' has 
        the meaning given the term in section 3 of the Assistive 
        Technology Act of 1998 (29 U.S.C. 3002).
            ``(36) Ward of the state.--
                    ``(A) In general.--The term `ward of the State' 
                means a child who, as determined by the State where the 
                child resides, is a foster child, is a ward of the 
                State, or is in the custody of a public child welfare 
                agency.
                    ``(B) Exception.--The term does not include a foster 
                child who has a foster parent who meets the definition 
                of a parent in paragraph (23).

[[Page 118 STAT. 2659]]

``SEC. 603. <<NOTE: 20 USC 1402.>> OFFICE OF SPECIAL EDUCATION PROGRAMS.

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

``SEC. 604. <<NOTE: 20 USC 1403.>> ABROGATION OF STATE SOVEREIGN 
            IMMUNITY.

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

``SEC. 605. <<NOTE: 20 USC 1404.>> ACQUISITION OF EQUIPMENT; 
            CONSTRUCTION OR ALTERATION OF FACILITIES.

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

``SEC. 606. <<NOTE: 20 USC 1405.>> EMPLOYMENT OF INDIVIDUALS WITH 
            DISABILITIES.

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

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

    ``(a) In General.--In carrying out the provisions of this title, the 
Secretary shall issue regulations under this title only to the extent 
that such regulations are necessary to ensure that there is compliance 
with the specific requirements of this title.

[[Page 118 STAT. 2660]]

    ``(b) Protections Provided to Children.--The Secretary may not 
implement, or publish in final form, any regulation prescribed pursuant 
to this title that--
            ``(1) violates or contradicts any provision of this title; 
        or
            ``(2) procedurally or substantively lessens the protections 
        provided to children with disabilities under this title, as 
        embodied in regulations in effect on July 20, 1983 (particularly 
        as such protections related to parental consent to initial 
        evaluation or initial placement in special education, least 
        restrictive environment, related services, timelines, attendance 
        of evaluation personnel at individualized education program 
        meetings, or qualifications of personnel), except to the extent 
        that such regulation reflects the clear and unequivocal intent 
        of Congress in legislation.

    ``(c) Public Comment Period.--The Secretary shall provide a public 
comment period of not less than 75 days on any regulation proposed under 
part B or part C on which an opportunity for public comment is otherwise 
required by law.
    ``(d) Policy Letters and Statements.--The Secretary may not issue 
policy letters or other statements (including letters or statements 
regarding issues of national significance) that--
            ``(1) violate or contradict any provision of this title; or
            ``(2) establish a rule that is required for compliance with, 
        and eligibility under, this title without following the 
        requirements of section 553 of title 5, United States Code.

    ``(e) Explanation and Assurances.--Any written response by the 
Secretary under subsection (d) regarding a policy, question, or 
interpretation under part B shall include an explanation in the written 
response that--
            ``(1) such response is provided as informal guidance and is 
        not legally binding;
            ``(2) when required, such response is issued in compliance 
        with the requirements of section 553 of title 5, United States 
        Code; and
            ``(3) such response represents the interpretation by the 
        Department of Education of the applicable statutory or 
        regulatory requirements in the context of the specific facts 
        presented.

    ``(f) Correspondence From Department of Education Describing 
Interpretations of This Title.--
            ``(1) <<NOTE: Federal Register, publication.>> In general.--
        The Secretary shall, on a quarterly basis, publish in the 
        Federal Register, and widely disseminate to interested entities 
        through various additional forms of communication, a list of 
        correspondence from the Department of Education received by 
        individuals during the previous quarter that describes the 
        interpretations of the Department of Education of this title or 
        the regulations implemented pursuant to this title.
            ``(2) Additional information.--For each item of 
        correspondence published in a list under paragraph (1), the 
        Secretary shall--
                    ``(A) identify the topic addressed by the 
                correspondence and shall include such other summary 
                information as the Secretary determines to be 
                appropriate; and
                    ``(B) ensure that all such correspondence is issued, 
                where applicable, in compliance with the requirements of 
                section 553 of title 5, United States Code.

[[Page 118 STAT. 2661]]

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

    ``(a) Rulemaking.--Each State that receives funds under this title 
shall--
            ``(1) ensure that any State rules, regulations, and policies 
        relating to this title conform to the purposes of this title;
            ``(2) identify in writing to local educational agencies 
        located in the State and the Secretary any such rule, 
        regulation, or policy as a State-imposed requirement that is not 
        required by this title and Federal regulations; and
            ``(3) minimize the number of rules, regulations, and 
        policies to which the local educational agencies and schools 
        located in the State are subject under this title.

    ``(b) Support and Facilitation.--State rules, regulations, and 
policies under this title shall support and facilitate local educational 
agency and school-level system improvement designed to enable children 
with disabilities to meet the challenging State student academic 
achievement standards.

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

    ``(a) Pilot Program.--
            ``(1) Purpose.--The purpose of this section is to provide an 
        opportunity for States to identify ways to reduce paperwork 
        burdens and other administrative duties that are directly 
        associated with the requirements of this title, in order to 
        increase the time and resources available for instruction and 
        other activities aimed at improving educational and functional 
        results for children with disabilities.
            ``(2) Authorization.--
                    ``(A) In general.--In order to carry out the purpose 
                of this section, the Secretary is authorized to grant 
                waivers of statutory requirements of, or regulatory 
                requirements relating to, part B for a period of time 
                not to exceed 4 years with respect to not more than 15 
                States based on proposals submitted by States to reduce 
                excessive paperwork and noninstructional time burdens 
                that do not assist in improving educational and 
                functional results for children with disabilities.
                    ``(B) Exception.--The Secretary shall not waive 
                under this section any statutory requirements of, or 
                regulatory requirements relating to, applicable civil 
                rights requirements.
                    ``(C) Rule of construction.--Nothing in this section 
                shall be construed to--
                          ``(i) affect the right of a child with a 
                      disability to receive a free appropriate public 
                      education under part B; and
                          ``(ii) permit a State or local educational 
                      agency to waive procedural safeguards under 
                      section 615.
            ``(3) Proposal.--
                    ``(A) In general.--A State desiring to participate 
                in the program under this section shall submit a 
                proposal to the Secretary at such time and in such 
                manner as the Secretary may reasonably require.
                    ``(B) Content.--The proposal shall include--
                          ``(i) a list of any statutory requirements of, 
                      or regulatory requirements relating to, part B 
                      that the State

[[Page 118 STAT. 2662]]

                      desires the Secretary to waive, in whole or in 
                      part; and
                          ``(ii) a list of any State requirements that 
                      the State proposes to waive or change, in whole or 
                      in part, to carry out a waiver granted to the 
                      State by the Secretary.
            ``(4) Termination of waiver.--The Secretary shall terminate 
        a State's waiver under this section if the Secretary determines 
        that the State--
                    ``(A) needs assistance under section 
                616(d)(2)(A)(ii) and that the waiver has contributed to 
                or caused such need for assistance;
                    ``(B) needs intervention under section 
                616(d)(2)(A)(iii) or needs substantial intervention 
                under section 616(d)(2)(A)(iv); or
                    ``(C) failed to appropriately implement its waiver.

    ``(b) Report.--Beginning 2 years after the date of enactment of the 
Individuals with Disabilities Education Improvement Act of 2004, the 
Secretary shall include in the annual report to Congress submitted 
pursuant to section 426 of the Department of Education Organization Act 
information related to the effectiveness of waivers granted under 
subsection (a), including any specific recommendations for broader 
implementation of such waivers, in--
            ``(1) reducing--
                    ``(A) the paperwork burden on teachers, principals, 
                administrators, and related service providers; and
                    ``(B) noninstructional time spent by teachers in 
                complying with part B;
            ``(2) enhancing longer-term educational planning;
            ``(3) improving positive outcomes for children with 
        disabilities;
            ``(4) promoting collaboration between IEP Team members; and
            ``(5) ensuring satisfaction of family members.

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

    ``The Republic of the Marshall Islands, the Federated States of 
Micronesia, and the Republic of Palau shall continue to be eligible for 
competitive grants administered by the Secretary under this title to the 
extent that such grants continue to be available to States and local 
educational agencies under this title.

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

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

    ``(a) Grants to States.--
            ``(1) Purpose of grants.--The Secretary shall make grants to 
        States, outlying areas, and freely associated States, and 
        provide funds to the Secretary of the Interior, to assist them 
        to provide special education and related services to children 
        with disabilities in accordance with this part.
            ``(2) Maximum amount.--The maximum amount of the grant a 
        State may receive under this section--
                    ``(A) for fiscal years 2005 and 2006 is--

[[Page 118 STAT. 2663]]

                          ``(i) the number of children with disabilities 
                      in the State who are receiving special education 
                      and related services--
                                    ``(I) aged 3 through 5 if the State 
                                is eligible for a grant under section 
                                619; and
                                    ``(II) aged 6 through 21; multiplied 
                                by
                          ``(ii) 40 percent of the average per-pupil 
                      expenditure in public elementary schools and 
                      secondary schools in the United States; and
                    ``(B) for fiscal year 2007 and subsequent fiscal 
                years is--
                          ``(i) the number of children with disabilities 
                      in the 2004-2005 school year in the State who 
                      received special education and related services--
                                    ``(I) aged 3 through 5 if the State 
                                is eligible for a grant under section 
                                619; and
                                    ``(II) aged 6 through 21; multiplied 
                                by
                          ``(ii) 40 percent of the average per-pupil 
                      expenditure in public elementary schools and 
                      secondary schools in the United States; adjusted 
                      by
                          ``(iii) the rate of annual change in the sum 
                      of--
                                    ``(I) 85 percent of such State's 
                                population described in subsection 
                                (d)(3)(A)(i)(II); and
                                    ``(II) 15 percent of such State's 
                                population described in subsection 
                                (d)(3)(A)(i)(III).

    ``(b) Outlying Areas and Freely Associated States; Secretary of the 
Interior.--
            ``(1) Outlying areas and freely associated states.--
                    ``(A) Funds reserved.--From the amount appropriated 
                for any fiscal year under subsection (i), the Secretary 
                shall reserve not more than 1 percent, which shall be 
                used--
                          ``(i) to provide assistance to the outlying 
                      areas in accordance with their respective 
                      populations of individuals aged 3 through 21; and
                          ``(ii) to provide each freely associated State 
                      a grant in the amount that such freely associated 
                      State received for fiscal year 2003 under this 
                      part, but only if the freely associated State 
                      meets the applicable requirements of this part, as 
                      well as the requirements of section 611(b)(2)(C) 
                      as such section was in effect on the day before 
                      the date of enactment of the Individuals with 
                      Disabilities Education Improvement Act of 2004.
                    ``(B) Special rule.--The provisions of Public Law 
                95-134, permitting the consolidation of grants by the 
                outlying areas, shall not apply to funds provided to the 
                outlying areas or the freely associated States under 
                this section.
                    ``(C) Definition.--In this paragraph, the term 
                `freely associated States' means the Republic of the 
                Marshall Islands, the Federated States of Micronesia, 
                and the Republic of Palau.
            ``(2) Secretary of the interior.--From the amount 
        appropriated for any fiscal year under subsection (i), the 
        Secretary shall reserve 1.226 percent to provide assistance to 
        the Secretary of the Interior in accordance with subsection (h).

    ``(c) Technical Assistance.--

[[Page 118 STAT. 2664]]

            ``(1) In general.--The Secretary may reserve not more than 
        \1/2\ of 1 percent of the amounts appropriated under this part 
        for each fiscal year to provide technical assistance activities 
        authorized under section 616(i).
            ``(2) Maximum amount.--The maximum amount the Secretary may 
        reserve under paragraph (1) for any fiscal year is $25,000,000, 
        cumulatively adjusted by the rate of inflation as measured by 
        the percentage increase, if any, from the preceding fiscal year 
        in the Consumer Price Index For All Urban Consumers, published 
        by the Bureau of Labor Statistics of the Department of Labor.

    ``(d) Allocations to States.--
            ``(1) In general.--After reserving funds for technical 
        assistance, and for payments to the outlying areas, the freely 
        associated States, and the Secretary of the Interior under 
        subsections (b) and (c) for a fiscal year, the Secretary shall 
        allocate the remaining amount among the States in accordance 
        with this subsection.
            ``(2) Special rule for use of fiscal year 1999 amount.--If a 
        State received any funds under this section for fiscal year 1999 
        on the basis of children aged 3 through 5, but does not make a 
        free appropriate public education available to all children with 
        disabilities aged 3 through 5 in the State in any subsequent 
        fiscal year, the Secretary shall compute the State's amount for 
        fiscal year 1999, solely for the purpose of calculating the 
        State's allocation in that subsequent year under paragraph (3) 
        or (4), by subtracting the amount allocated to the State for 
        fiscal year 1999 on the basis of those children.
            ``(3) Increase in funds.--If the amount available for 
        allocations to States under paragraph (1) for a fiscal year is 
        equal to or greater than the amount allocated to the States 
        under this paragraph for the preceding fiscal year, those 
        allocations shall be calculated as follows:
                    ``(A) Allocation of increase.--
                          ``(i) In general.--Except as provided in 
                      subparagraph (B), the Secretary shall allocate for 
                      the fiscal year--
                                    ``(I) to each State the amount the 
                                State received under this section for 
                                fiscal year 1999;
                                    ``(II) 85 percent of any remaining 
                                funds to States on the basis of the 
                                States' relative populations of children 
                                aged 3 through 21 who are of the same 
                                age as children with disabilities for 
                                whom the State ensures the availability 
                                of a free appropriate public education 
                                under this part; and
                                    ``(III) 15 percent of those 
                                remaining funds to States on the basis 
                                of the States' relative populations of 
                                children described in subclause (II) who 
                                are living in poverty.
                          ``(ii) Data.--For the purpose of making grants 
                      under this paragraph, the Secretary shall use the 
                      most recent population data, including data on 
                      children living in poverty, that are available and 
                      satisfactory to the Secretary.
                    ``(B) Limitations.--Notwithstanding subparagraph 
                (A), allocations under this paragraph shall be subject 
                to the following:

[[Page 118 STAT. 2665]]

                          ``(i) Preceding year allocation.--No State's 
                      allocation shall be less than its allocation under 
                      this section for the preceding fiscal year.
                          ``(ii) Minimum.--No State's allocation shall 
                      be less than the greatest of--
                                    ``(I) the sum of--
                                            ``(aa) the amount the State 
                                        received under this section for 
                                        fiscal year 1999; and
                                            ``(bb) \1/3\ of 1 percent of 
                                        the amount by which the amount 
                                        appropriated under subsection 
                                        (i) for the fiscal year exceeds 
                                        the amount appropriated for this 
                                        section for fiscal year 1999;
                                    ``(II) the sum of--
                                            ``(aa) the amount the State 
                                        received under this section for 
                                        the preceding fiscal year; and
                                            ``(bb) that amount 
                                        multiplied by the percentage by 
                                        which the increase in the funds 
                                        appropriated for this section 
                                        from the preceding fiscal year 
                                        exceeds 1.5 percent; or
                                    ``(III) the sum of--
                                            ``(aa) the amount the State 
                                        received under this section for 
                                        the preceding fiscal year; and
                                            ``(bb) that amount 
                                        multiplied by 90 percent of the 
                                        percentage increase in the 
                                        amount appropriated for this 
                                        section from the preceding 
                                        fiscal year.
                          ``(iii) Maximum.--Notwithstanding clause (ii), 
                      no State's allocation under this paragraph shall 
                      exceed the sum of--
                                    ``(I) the amount the State received 
                                under this section for the preceding 
                                fiscal year; and
                                    ``(II) that amount multiplied by the 
                                sum of 1.5 percent and the percentage 
                                increase in the amount appropriated 
                                under this section from the preceding 
                                fiscal year.
                    ``(C) Ratable reduction.--If the amount available 
                for allocations under this paragraph is insufficient to 
                pay those allocations in full, those allocations shall 
                be ratably reduced, subject to subparagraph (B)(i).
            ``(4) Decrease in funds.--If the amount available for 
        allocations to States under paragraph (1) for a fiscal year is 
        less than the amount allocated to the States under this section 
        for the preceding fiscal year, those allocations shall be 
        calculated as follows:
                    ``(A) Amounts greater than fiscal year 1999 
                allocations.--If the amount available for allocations is 
                greater than the amount allocated to the States for 
                fiscal year 1999, each State shall be allocated the sum 
                of--
                          ``(i) the amount the State received under this 
                      section for fiscal year 1999; and
                          ``(ii) an amount that bears the same relation 
                      to any remaining funds as the increase the State 
                      received under this section for the preceding 
                      fiscal year over fiscal year 1999 bears to the 
                      total of all such increases for all States.

[[Page 118 STAT. 2666]]

                    ``(B) Amounts equal to or less than fiscal year 1999 
                allocations.--
                          ``(i) In general.--If the amount available for 
                      allocations under this paragraph is equal to or 
                      less than the amount allocated to the States for 
                      fiscal year 1999, each State shall be allocated 
                      the amount the State received for fiscal year 
                      1999.
                          ``(ii) Ratable reduction.--If the amount 
                      available for allocations under this paragraph is 
                      insufficient to make the allocations described in 
                      clause (i), those allocations shall be ratably 
                      reduced.

    ``(e) State-Level Activities.--
            ``(1) State administration.--
                    ``(A) In general.--For the purpose of administering 
                this part, including paragraph (3), section 619, and the 
                coordination of activities under this part with, and 
                providing technical assistance to, other programs that 
                provide services to children with disabilities--
                          ``(i) each State may reserve for each fiscal 
                      year not more than the maximum amount the State 
                      was eligible to reserve for State administration 
                      under this section for fiscal year 2004 or 
                      $800,000 (adjusted in accordance with subparagraph 
                      (B)), whichever is greater; and
                          ``(ii) each outlying area may reserve for each 
                      fiscal year not more than 5 percent of the amount 
                      the outlying area receives under subsection (b)(1) 
                      for the fiscal year or $35,000, whichever is 
                      greater.
                    ``(B) Cumulative annual adjustments.--For each 
                fiscal year beginning with fiscal year 2005, the 
                Secretary shall cumulatively adjust--
                          ``(i) the maximum amount the State was 
                      eligible to reserve for State administration under 
                      this part for fiscal year 2004; and
                          ``(ii) $800,000,
                by the rate of inflation as measured by the percentage 
                increase, if any, from the preceding fiscal year in the 
                Consumer Price Index For All Urban Consumers, published 
                by the Bureau of Labor Statistics of the Department of 
                Labor.
                    ``(C) Certification.--Prior to expenditure of funds 
                under this paragraph, the State shall certify to the 
                Secretary that the arrangements to establish 
                responsibility for services pursuant to section 
                612(a)(12)(A) are current.
                    ``(D) Part C.--Funds reserved under subparagraph (A) 
                may be used for the administration of part C, if the 
                State educational agency is the lead agency for the 
                State under such part.
            ``(2) Other state-level activities.--
                    ``(A) State-level activities.--
                          ``(i) In general.--Except as provided in 
                      clause (iii), for the purpose of carrying out 
                      State-level activities, each State may reserve for 
                      each of the fiscal years 2005 and 2006 not more 
                      than 10 percent from the amount of the State's 
                      allocation under subsection (d) for each of the 
                      fiscal years 2005 and 2006, respectively. For 
                      fiscal year 2007 and each subsequent fiscal

[[Page 118 STAT. 2667]]

                      year, the State may reserve the maximum amount the 
                      State was eligible to reserve under the preceding 
                      sentence for fiscal year 2006 (cumulatively 
                      adjusted by the rate of inflation as measured by 
                      the percentage increase, if any, from the 
                      preceding fiscal year in the Consumer Price Index 
                      For All Urban Consumers, published by the Bureau 
                      of Labor Statistics of the Department of Labor).
                          ``(ii) Small state adjustment.--
                      Notwithstanding clause (i) and except as provided 
                      in clause (iii), in the case of a State for which 
                      the maximum amount reserved for State 
                      administration is not greater than $850,000, the 
                      State may reserve for the purpose of carrying out 
                      State-level activities for each of the fiscal 
                      years 2005 and 2006, not more than 10.5 percent 
                      from the amount of the State's allocation under 
                      subsection (d) for each of the fiscal years 2005 
                      and 2006, respectively. For fiscal year 2007 and 
                      each subsequent fiscal year, such State may 
                      reserve the maximum amount the State was eligible 
                      to reserve under the preceding sentence for fiscal 
                      year 2006 (cumulatively adjusted by the rate of 
                      inflation as measured by the percentage increase, 
                      if any, from the preceding fiscal year in the 
                      Consumer Price Index For All Urban Consumers, 
                      published by the Bureau of Labor Statistics of the 
                      Department of Labor).
                          ``(iii) Exception.--If a State does not 
                      reserve funds under paragraph (3) for a fiscal 
                      year, then--
                                    ``(I) in the case of a State that is 
                                not described in clause (ii), for fiscal 
                                year 2005 or 2006, clause (i) shall be 
                                applied by substituting `9.0 percent' 
                                for `10 percent'; and
                                    ``(II) in the case of a State that 
                                is described in clause (ii), for fiscal 
                                year 2005 or 2006, clause (ii) shall be 
                                applied by substituting `9.5 percent' 
                                for `10.5 percent'.
                    ``(B) Required activities.--Funds reserved under 
                subparagraph (A) shall be used to carry out the 
                following activities:
                          ``(i) For monitoring, enforcement, and 
                      complaint investigation.
                          ``(ii) To establish and implement the 
                      mediation process required by section 615(e), 
                      including providing for the cost of mediators and 
                      support personnel.
                    ``(C) Authorized activities.--Funds reserved under 
                subparagraph (A) may be used to carry out the following 
                activities:
                          ``(i) For support and direct services, 
                      including technical assistance, personnel 
                      preparation, and professional development and 
                      training.
                          ``(ii) To support paperwork reduction 
                      activities, including expanding the use of 
                      technology in the IEP process.
                          ``(iii) To assist local educational agencies 
                      in providing positive behavioral interventions and 
                      supports and appropriate mental health services 
                      for children with disabilities.

[[Page 118 STAT. 2668]]

                          ``(iv) To improve the use of technology in the 
                      classroom by children with disabilities to enhance 
                      learning.
                          ``(v) To support the use of technology, 
                      including technology with universal design 
                      principles and assistive technology devices, to 
                      maximize accessibility to the general education 
                      curriculum for children with disabilities.
                          ``(vi) Development and implementation of 
                      transition programs, including coordination of 
                      services with agencies involved in supporting the 
                      transition of children with disabilities to 
                      postsecondary activities.
                          ``(vii) To assist local educational agencies 
                      in meeting personnel shortages.
                          ``(viii) To support capacity building 
                      activities and improve the delivery of services by 
                      local educational agencies to improve results for 
                      children with disabilities.
                          ``(ix) Alternative programming for children 
                      with disabilities who have been expelled from 
                      school, and services for children with 
                      disabilities in correctional facilities, children 
                      enrolled in State-operated or State-supported 
                      schools, and children with disabilities in charter 
                      schools.
                          ``(x) To support the development and provision 
                      of appropriate accommodations for children with 
                      disabilities, or the development and provision of 
                      alternate assessments that are valid and reliable 
                      for assessing the performance of children with 
                      disabilities, in accordance with sections 1111(b) 
                      and 6111 of the Elementary and Secondary Education 
                      Act of 1965.
                          ``(xi) To provide technical assistance to 
                      schools and local educational agencies, and direct 
                      services, including supplemental educational 
                      services as defined in 1116(e) of the Elementary 
                      and Secondary Education Act of 1965 to children 
                      with disabilities, in schools or local educational 
                      agencies identified for improvement under section 
                      1116 of the Elementary and Secondary Education Act 
                      of 1965 on the sole basis of the assessment 
                      results of the disaggregated subgroup of children 
                      with disabilities, including providing 
                      professional development to special and regular 
                      education teachers, who teach children with 
                      disabilities, based on scientifically based 
                      research to improve educational instruction, in 
                      order to improve academic achievement to meet or 
                      exceed the objectives established by the State 
                      under section 1111(b)(2)(G) the Elementary and 
                      Secondary Education Act of 1965.
            ``(3) Local educational agency risk pool.--
                    ``(A) In general.--
                          ``(i) Reservation of funds.--For the purpose 
                      of assisting local educational agencies (including 
                      a charter school that is a local educational 
                      agency or a consortium of local educational 
                      agencies) in addressing the needs of high need 
                      children with disabilities, each State shall have 
                      the option to reserve for each fiscal year 10 
                      percent of the amount of funds the State reserves 
                      for State-level activities under paragraph 
                      (2)(A)--

[[Page 118 STAT. 2669]]

                                    ``(I) to establish and make 
                                disbursements from the high cost fund to 
                                local educational agencies in accordance 
                                with this paragraph during the first and 
                                succeeding fiscal years of the high cost 
                                fund; and
                                    ``(II) to support innovative and 
                                effective ways of cost sharing by the 
                                State, by a local educational agency, or 
                                among a consortium of local educational 
                                agencies, as determined by the State in 
                                coordination with representatives from 
                                local educational agencies, subject to 
                                subparagraph (B)(ii).
                          ``(ii) Definition of local educational 
                      agency.--In this paragraph the term `local 
                      educational agency' includes a charter school that 
                      is a local educational agency, or a consortium of 
                      local educational agencies.
                    ``(B) Limitation on uses of funds.--
                          ``(i) Establishment of high cost fund.--A 
                      State shall not use any of the funds the State 
                      reserves pursuant to subparagraph (A)(i), but may 
                      use the funds the State reserves under paragraph 
                      (1), to establish and support the high cost fund.
                          ``(ii) Innovative and effective cost 
                      sharing.--A State shall not use more than 5 
                      percent of the funds the State reserves pursuant 
                      to subparagraph (A)(i) for each fiscal year to 
                      support innovative and effective ways of cost 
                      sharing among consortia of local educational 
                      agencies.
                    ``(C) State plan for high cost fund.--
                          ``(i) Definition.--The State educational 
                      agency shall establish the State's definition of a 
                      high need child with a disability, which 
                      definition shall be developed in consultation with 
                      local educational agencies.
                          ``(ii) <<NOTE: Deadline.>> State plan.--The 
                      State educational agency shall develop, not later 
                      than 90 days after the State reserves funds under 
                      this paragraph, annually review, and amend as 
                      necessary, a State plan for the high cost fund. 
                      Such State plan shall--
                                    ``(I) establish, in coordination 
                                with representatives from local 
                                educational agencies, a definition of a 
                                high need child with a disability that, 
                                at a minimum--
                                            ``(aa) addresses the 
                                        financial impact a high need 
                                        child with a disability has on 
                                        the budget of the child's local 
                                        educational agency; and
                                            ``(bb) ensures that the cost 
                                        of the high need child with a 
                                        disability is greater than 3 
                                        times the average per pupil 
                                        expenditure (as defined in 
                                        section 9101 of the Elementary 
                                        and Secondary Education Act of 
                                        1965) in that State;
                                    ``(II) establish eligibility 
                                criteria for the participation of a 
                                local educational agency that, at a 
                                minimum, takes into account the number 
                                and percentage of high need children 
                                with disabilities served by a local 
                                educational agency;

[[Page 118 STAT. 2670]]

                                    ``(III) develop a funding mechanism 
                                that provides distributions each fiscal 
                                year to local educational agencies that 
                                meet the criteria developed by the State 
                                under subclause (II); and
                                    ``(IV) establish an annual schedule 
                                by which the State educational agency 
                                shall make its distributions from the 
                                high cost fund each fiscal year.
                          ``(iii) <<NOTE: Deadline.>> Public 
                      availability.--The State shall make its final 
                      State plan publicly available not less than 30 
                      days before the beginning of the school year, 
                      including dissemination of such information on the 
                      State website.
                    ``(D) Disbursements from the high cost fund.--
                          ``(i) In general.--Each State educational 
                      agency shall make all annual disbursements from 
                      the high cost fund established under subparagraph 
                      (A)(i) in accordance with the State plan published 
                      pursuant to subparagraph (C).
                          ``(ii) Use of disbursements.--Each State 
                      educational agency shall make annual disbursements 
                      to eligible local educational agencies in 
                      accordance with its State plan under subparagraph 
                      (C)(ii).
                          ``(iii) Appropriate costs.--The costs 
                      associated with educating a high need child with a 
                      disability under subparagraph (C)(i) are only 
                      those costs associated with providing direct 
                      special education and related services to such 
                      child that are identified in such child's IEP.
                    ``(E) Legal fees.--The disbursements under 
                subparagraph (D) shall not support legal fees, court 
                costs, or other costs associated with a cause of action 
                brought on behalf of a child with a disability to ensure 
                a free appropriate public education for such child.
                    ``(F) Assurance of a free appropriate public 
                education.--Nothing in this paragraph shall be 
                construed--
                          ``(i) to limit or condition the right of a 
                      child with a disability who is assisted under this 
                      part to receive a free appropriate public 
                      education pursuant to section 612(a)(1) in the 
                      least restrictive environment pursuant to section 
                      612(a)(5); or
                          ``(ii) to authorize a State educational agency 
                      or local educational agency to establish a limit 
                      on what may be spent on the education of a child 
                      with a disability.
                    ``(G) Special rule for risk pool and high need 
                assistance programs in effect as of january 1, 2004.--
                Notwithstanding the provisions of subparagraphs (A) 
                through (F), a State may use funds reserved pursuant to 
                this paragraph for implementing a placement neutral cost 
                sharing and reimbursement program of high need, low 
                incidence, catastrophic, or extraordinary aid to local 
                educational agencies that provides services to high need 
                students based on eligibility criteria for such programs 
                that were created not later than January 1, 2004, and 
                are currently in operation, if such program serves 
                children that meet the requirement of the definition of 
                a high need

[[Page 118 STAT. 2671]]

                child with a disability as described in subparagraph 
                (C)(ii)(I).
                    ``(H) Medicaid services not affected.--Disbursements 
                provided under this paragraph shall not be used to pay 
                costs that otherwise would be reimbursed as medical 
                assistance for a child with a disability under the State 
                medicaid program under title XIX of the Social Security 
                Act.
                    ``(I) Remaining funds.--Funds reserved under 
                subparagraph (A) in any fiscal year but not expended in 
                that fiscal year pursuant to subparagraph (D) shall be 
                allocated to local educational agencies for the 
                succeeding fiscal year in the same manner as funds are 
                allocated to local educational agencies under subsection 
                (f) for the succeeding fiscal year.
            ``(4) Inapplicability of certain prohibitions.--A State may 
        use funds the State reserves under paragraphs (1) and (2) 
        without regard to--
                    ``(A) the prohibition on commingling of funds in 
                section 612(a)(17)(B); and
                    ``(B) the prohibition on supplanting other funds in 
                section 612(a)(17)(C).
            ``(5) Report on use of funds.--As part of the information 
        required to be submitted to the Secretary under section 612, 
        each State shall annually describe how amounts under this 
        section--
                    ``(A) will be used to meet the requirements of this 
                title; and
                    ``(B) will be allocated among the activities 
                described in this section to meet State priorities based 
                on input from local educational agencies.
            ``(6) Special rule for increased funds.--A State may use 
        funds the State reserves under paragraph (1)(A) as a result of 
        inflationary increases under paragraph (1)(B) to carry out 
        activities authorized under clause (i), (iii), (vii), or (viii) 
        of paragraph (2)(C).
            ``(7) Flexibility in using funds for part c.--Any State 
        eligible to receive a grant under section 619 may use funds made 
        available under paragraph (1)(A), subsection (f)(3), or section 
        619(f)(5) to develop and implement a State policy jointly with 
        the lead agency under part C and the State educational agency to 
        provide early intervention services (which shall include an 
        educational component that promotes school readiness and 
        incorporates preliteracy, language, and numeracy skills) in 
        accordance with part C to children with disabilities who are 
        eligible for services under section 619 and who previously 
        received services under part C until such children enter, or are 
        eligible under State law to enter, kindergarten, or elementary 
        school as appropriate.

    ``(f) Subgrants to Local Educational Agencies.--
            ``(1) Subgrants required.--Each State that receives a grant 
        under this section for any fiscal year shall distribute any 
        funds the State does not reserve under subsection (e) to local 
        educational agencies (including public charter schools that 
        operate as local educational agencies) in the State that have 
        established their eligibility under section 613 for use in 
        accordance with this part.

[[Page 118 STAT. 2672]]

            ``(2) Procedure for allocations to local educational 
        agencies.--For each fiscal year for which funds are allocated to 
        States under subsection (d), each State shall allocate funds 
        under paragraph (1) as follows:
                    ``(A) Base payments.--The State shall first award 
                each local educational agency described in paragraph (1) 
                the amount the local educational agency would have 
                received under this section for fiscal year 1999, if the 
                State had distributed 75 percent of its grant for that 
                year under section 611(d) as section 611(d) was then in 
                effect.
                    ``(B) Allocation of remaining funds.--After making 
                allocations under subparagraph (A), the State shall--
                          ``(i) allocate 85 percent of any remaining 
                      funds to those local educational agencies on the 
                      basis of the relative numbers of children enrolled 
                      in public and private elementary schools and 
                      secondary schools within the local educational 
                      agency's jurisdiction; and
                          ``(ii) allocate 15 percent of those remaining 
                      funds to those local educational agencies in 
                      accordance with their relative numbers of children 
                      living in poverty, as determined by the State 
                      educational agency.
            ``(3) Reallocation of funds.--If a State educational agency 
        determines that a local educational agency is adequately 
        providing a free appropriate public education to all children 
        with disabilities residing in the area served by that local 
        educational agency with State and local funds, the State 
        educational agency may reallocate any portion of the funds under 
        this part that are not needed by that local educational agency 
        to provide a free appropriate public education to other local 
        educational agencies in the State that are not adequately 
        providing special education and related services to all children 
        with disabilities residing in the areas served by those other 
        local educational agencies.

    ``(g) Definitions.--In this section:
            ``(1) Average per-pupil expenditure in public elementary 
        schools and secondary schools in the united states.--The term 
        `average per-pupil expenditure in public elementary schools and 
        secondary schools in the United States' means--
                    ``(A) without regard to the source of funds--
                          ``(i) the aggregate current expenditures, 
                      during the second fiscal year preceding the fiscal 
                      year for which the determination is made (or, if 
                      satisfactory data for that year are not available, 
                      during the most recent preceding fiscal year for 
                      which satisfactory data are available) of all 
                      local educational agencies in the 50 States and 
                      the District of Columbia; plus
                          ``(ii) any direct expenditures by the State 
                      for the operation of those agencies; divided by
                    ``(B) the aggregate number of children in average 
                daily attendance to whom those agencies provided free 
                public education during that preceding year.
            ``(2) State.--The term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.

    ``(h) Use of Amounts by Secretary of the Interior.--
            ``(1) Provision of amounts for assistance.--

[[Page 118 STAT. 2673]]

                    ``(A) In general.--The Secretary of Education shall 
                provide amounts to the Secretary of the Interior to meet 
                the need for assistance for the education of children 
                with disabilities on reservations aged 5 to 21, 
                inclusive, enrolled in elementary schools and secondary 
                schools for Indian children operated or funded by the 
                Secretary of the Interior. The amount of such payment 
                for any fiscal year shall be equal to 80 percent of the 
                amount allotted under subsection (b)(2) for that fiscal 
                year. Of the amount described in the preceding 
                sentence--
                          ``(i) 80 percent shall be allocated to such 
                      schools by July 1 of that fiscal year; and
                          ``(ii) 20 percent shall be allocated to such 
                      schools by September 30 of that fiscal year.
                    ``(B) Calculation of number of children.--In the 
                case of Indian students aged 3 to 5, inclusive, who are 
                enrolled in programs affiliated with the Bureau of 
                Indian Affairs (referred to in this subsection as the 
                `BIA') schools and that are required by the States in 
                which such schools are located to attain or maintain 
                State accreditation, and which schools have such 
                accreditation prior to the date of enactment of the 
                Individuals with Disabilities Education Act Amendments 
                of 1991, the school shall be allowed to count those 
                children for the purpose of distribution of the funds 
                provided under this paragraph to the Secretary of the 
                Interior. The Secretary of the Interior shall be 
                responsible for meeting all of the requirements of this 
                part for those children, in accordance with paragraph 
                (2).
                    ``(C) Additional requirement.--With respect to all 
                other children aged 3 to 21, inclusive, on reservations, 
                the State educational agency shall be responsible for 
                ensuring that all of the requirements of this part are 
                implemented.
            ``(2) Submission of information.--The Secretary of Education 
        may provide the Secretary of the Interior amounts under 
        paragraph (1) for a fiscal year only if the Secretary of the 
        Interior submits to the Secretary of Education information 
        that--
                    ``(A) demonstrates that the Department of the 
                Interior meets the appropriate requirements, as 
                determined by the Secretary of Education, of sections 
                612 (including monitoring and evaluation activities) and 
                613;
                    ``(B) includes a description of how the Secretary of 
                the Interior will coordinate the provision of services 
                under this part with local educational agencies, tribes 
                and tribal organizations, and other private and Federal 
                service providers;
                    ``(C) includes an assurance that there are public 
                hearings, adequate notice of such hearings, and an 
                opportunity for comment afforded to members of tribes, 
                tribal governing bodies, and affected local school 
                boards before the adoption of the policies, programs, 
                and procedures related to the requirements described in 
                subparagraph (A);
                    ``(D) includes an assurance that the Secretary of 
                the Interior will provide such information as the 
                Secretary of Education may require to comply with 
                section 618;

[[Page 118 STAT. 2674]]

                    ``(E) includes an assurance that the Secretary of 
                the Interior and the Secretary of Health and Human 
                Services have entered into a memorandum of agreement, to 
                be provided to the Secretary of Education, for the 
                coordination of services, resources, and personnel 
                between their respective Federal, State, and local 
                offices and with State and local educational agencies 
                and other entities to facilitate the provision of 
                services to Indian children with disabilities residing 
                on or near reservations (such agreement shall provide 
                for the apportionment of responsibilities and costs, 
                including child find, evaluation, diagnosis, remediation 
                or therapeutic measures, and (where appropriate) 
                equipment and medical or personal supplies as needed for 
                a child to remain in school or a program); and
                    ``(F) includes an assurance that the Department of 
                the Interior will cooperate with the Department of 
                Education in its exercise of monitoring and oversight of 
                this application, and any agreements entered into 
                between the Secretary of the Interior and other entities 
                under this part, and will fulfill its duties under this 
                part.
            ``(3) Applicability.--The Secretary shall withhold payments 
        under this subsection with respect to the information described 
        in paragraph (2) in the same manner as the Secretary withholds 
        payments under section 616(e)(6).
            ``(4) Payments for education and services for indian 
        children with disabilities aged 3 through 5.--
                    ``(A) In general.--With funds appropriated under 
                subsection (i), the Secretary of Education shall make 
                payments to the Secretary of the Interior to be 
                distributed to tribes or tribal organizations (as 
                defined under section 4 of the Indian Self-Determination 
                and Education Assistance Act) or consortia of tribes or 
                tribal organizations to provide for the coordination of 
                assistance for special education and related services 
                for children with disabilities aged 3 through 5 on 
                reservations served by elementary schools and secondary 
                schools for Indian children operated or funded by the 
                Department of the Interior. The amount of such payments 
                under subparagraph (B) for any fiscal year shall be 
                equal to 20 percent of the amount allotted under 
                subsection (b)(2).
                    ``(B) Distribution of funds.--The Secretary of the 
                Interior shall distribute the total amount of the 
                payment under subparagraph (A) by allocating to each 
                tribe, tribal organization, or consortium an amount 
                based on the number of children with disabilities aged 3 
                through 5 residing on reservations as reported annually, 
                divided by the total of those children served by all 
                tribes or tribal organizations.
                    ``(C) Submission of information.--To receive a 
                payment under this paragraph, the tribe or tribal 
                organization shall submit such figures to the Secretary 
                of the Interior as required to determine the amounts to 
                be allocated under subparagraph (B). This information 
                shall be compiled and submitted to the Secretary of 
                Education.
                    ``(D) Use of funds.--The funds received by a tribe 
                or tribal organization shall be used to assist in child 
                find, screening, and other procedures for the early 
                identification

[[Page 118 STAT. 2675]]

                of children aged 3 through 5, parent training, and the 
                provision of direct services. These activities may be 
                carried out directly or through contracts or cooperative 
                agreements with the BIA, local educational agencies, and 
                other public or private nonprofit organizations. The 
                tribe or tribal organization is encouraged to involve 
                Indian parents in the development and implementation of 
                these activities. The tribe or tribal organization 
                shall, as appropriate, make referrals to local, State, 
                or Federal entities for the provision of services or 
                further diagnosis.
                    ``(E) Biennial report.--To be eligible to receive a 
                grant pursuant to subparagraph (A), the tribe or tribal 
                organization shall provide to the Secretary of the 
                Interior a biennial report of activities undertaken 
                under this paragraph, including the number of contracts 
                and cooperative agreements entered into, the number of 
                children contacted and receiving services for each year, 
                and the estimated number of children needing services 
                during the 2 years following the year in which the 
                report is made. The Secretary of the Interior shall 
                include a summary of this information on a biennial 
                basis in the report to the Secretary of Education 
                required under this subsection. The Secretary of 
                Education may require any additional information from 
                the Secretary of the Interior.
                    ``(F) Prohibitions.--None of the funds allocated 
                under this paragraph may be used by the Secretary of the 
                Interior for administrative purposes, including child 
                count and the provision of technical assistance.
            ``(5) Plan for coordination of services.--The Secretary of 
        the Interior shall develop and implement a plan for the 
        coordination of services for all Indian children with 
        disabilities residing on reservations covered under this title. 
        Such plan shall provide for the coordination of services 
        benefiting those children from whatever source, including 
        tribes, the Indian Health Service, other BIA divisions, and 
        other Federal agencies. In developing the plan, the Secretary of 
        the Interior shall consult with all interested and involved 
        parties. The plan shall be based on the needs of the children 
        and the system best suited for meeting those needs, and may 
        involve the establishment of cooperative agreements between the 
        BIA, other Federal agencies, and other entities. The plan shall 
        also be distributed upon request to States, State educational 
        agencies and local educational agencies, and other agencies 
        providing services to infants, toddlers, and children with 
        disabilities, to tribes, and to other interested parties.
            ``(6) Establishment of advisory board.--To meet the 
        requirements of section 612(a)(21), the Secretary of the 
        Interior shall establish, under the BIA, an advisory board 
        composed of individuals involved in or concerned with the 
        education and provision of services to Indian infants, toddlers, 
        children, and youth with disabilities, including Indians with 
        disabilities, Indian parents or guardians of such children, 
        teachers, service providers, State and local educational 
        officials, representatives of tribes or tribal organizations, 
        representatives from State Interagency Coordinating Councils 
        under section 641 in States having reservations, and other 
        members representing the various divisions and entities of the 
        BIA. The chairperson shall

[[Page 118 STAT. 2676]]

        be selected by the Secretary of the Interior. The advisory board 
        shall--
                    ``(A) assist in the coordination of services within 
                the BIA and with other local, State, and Federal 
                agencies in the provision of education for infants, 
                toddlers, and children with disabilities;
                    ``(B) advise and assist the Secretary of the 
                Interior in the performance of the Secretary of the 
                Interior's responsibilities described in this 
                subsection;
                    ``(C) develop and recommend policies concerning 
                effective inter- and intra-agency collaboration, 
                including modifications to regulations, and the 
                elimination of barriers to inter- and intra-agency 
                programs and activities;
                    ``(D) provide assistance and disseminate information 
                on best practices, effective program coordination 
                strategies, and recommendations for improved early 
                intervention services or educational programming for 
                Indian infants, toddlers, and children with 
                disabilities; and
                    ``(E) provide assistance in the preparation of 
                information required under paragraph (2)(D).
            ``(7) Annual reports.--
                    ``(A) In general.--The advisory board established 
                under paragraph (6) shall prepare and submit to the 
                Secretary of the Interior and to Congress an annual 
                report containing a description of the activities of the 
                advisory board for the preceding year.
                    ``(B) Availability.--The Secretary of the Interior 
                shall make available to the Secretary of Education the 
                report described in subparagraph (A).

    ``(i) Authorization of Appropriations.--For the purpose of carrying 
out this part, other than section 619, there are authorized to be 
appropriated--
            ``(1) $12,358,376,571 for fiscal year 2005;
            ``(2) $14,648,647,143 for fiscal year 2006;
            ``(3) $16,938,917,714 for fiscal year 2007;
            ``(4) $19,229,188,286 for fiscal year 2008;
            ``(5) $21,519,458,857 for fiscal year 2009;
            ``(6) $23,809,729,429 for fiscal year 2010;
            ``(7) $26,100,000,000 for fiscal year 2011; and
            ``(8) such sums as may be necessary for fiscal year 2012 and 
        each succeeding fiscal year.

``SEC. 612. <<NOTE: 20 USC 1412.>> STATE ELIGIBILITY.

    ``(a) In General.--A State is eligible for assistance under this 
part for a fiscal year if the State submits a plan that provides 
assurances to the Secretary that the State has in effect policies and 
procedures to ensure that the State meets each of the following 
conditions:
            ``(1) Free appropriate public education.--
                    ``(A) In general.--A free appropriate public 
                education is available to all children with disabilities 
                residing in the State between the ages of 3 and 21, 
                inclusive, including children with disabilities who have 
                been suspended or expelled from school.
                    ``(B) Limitation.--The obligation to make a free 
                appropriate public education available to all children 
                with disabilities does not apply with respect to 
                children--

[[Page 118 STAT. 2677]]

                          ``(i) aged 3 through 5 and 18 through 21 in a 
                      State to the extent that its application to those 
                      children would be inconsistent with State law or 
                      practice, or the order of any court, respecting 
                      the provision of public education to children in 
                      those age ranges; and
                          ``(ii) aged 18 through 21 to the extent that 
                      State law does not require that special education 
                      and related services under this part be provided 
                      to children with disabilities who, in the 
                      educational placement prior to their incarceration 
                      in an adult correctional facility--
                                    ``(I) were not actually identified 
                                as being a child with a disability under 
                                section 602; or
                                    ``(II) did not have an 
                                individualized education program under 
                                this part.
                    ``(C) State flexibility.--A State that provides 
                early intervention services in accordance with part C to 
                a child who is eligible for services under section 619, 
                is not required to provide such child with a free 
                appropriate public education.
            ``(2) Full educational opportunity goal.--The State has 
        established a goal of providing full educational opportunity to 
        all children with disabilities and a detailed timetable for 
        accomplishing that goal.
            ``(3) Child find.--
                    ``(A) In general.--All children with disabilities 
                residing in the State, including children with 
                disabilities who are homeless children or are wards of 
                the State and children with disabilities attending 
                private schools, regardless of the severity of their 
                disabilities, and who are in need of special education 
                and related services, are identified, located, and 
                evaluated and a practical method is developed and 
                implemented to determine which children with 
                disabilities are currently receiving needed special 
                education and related services.
                    ``(B) Construction.--Nothing in this title requires 
                that children be classified by their disability so long 
                as each child who has a disability listed in section 602 
                and who, by reason of that disability, needs special 
                education and related services is regarded as a child 
                with a disability under this part.
            ``(4) Individualized education program.--An individualized 
        education program, or an individualized family service plan that 
        meets the requirements of section 636(d), is developed, 
        reviewed, and revised for each child with a disability in 
        accordance with section 614(d).
            ``(5) Least restrictive environment.--
                    ``(A) In general.--To the maximum extent 
                appropriate, children with disabilities, including 
                children in public or private institutions or other care 
                facilities, are educated with children who are not 
                disabled, and special classes, separate schooling, or 
                other removal of children with disabilities from the 
                regular educational environment occurs only when the 
                nature or severity of the disability of a child is such 
                that education in regular classes with the use of 
                supplementary aids and services cannot be achieved 
                satisfactorily.
                    ``(B) Additional requirement.--

[[Page 118 STAT. 2678]]

                          ``(i) In general.--A State funding mechanism 
                      shall not result in placements that violate the 
                      requirements of subparagraph (A), and a State 
                      shall not use a funding mechanism by which the 
                      State distributes funds on the basis of the type 
                      of setting in which a child is served that will 
                      result in the failure to provide a child with a 
                      disability a free appropriate public education 
                      according to the unique needs of the child as 
                      described in the child's IEP.
                          ``(ii) Assurance.--If the State does not have 
                      policies and procedures to ensure compliance with 
                      clause (i), the State shall provide the Secretary 
                      an assurance that the State will revise the 
                      funding mechanism as soon as feasible to ensure 
                      that such mechanism does not result in such 
                      placements.
            ``(6) Procedural safeguards.--
                    ``(A) In general.--Children with disabilities and 
                their parents are afforded the procedural safeguards 
                required by section 615.
                    ``(B) Additional procedural safeguards.--Procedures 
                to ensure that testing and evaluation materials and 
                procedures utilized for the purposes of evaluation and 
                placement of children with disabilities for services 
                under this title will be selected and administered so as 
                not to be racially or culturally discriminatory. Such 
                materials or procedures shall be provided and 
                administered in the child's native language or mode of 
                communication, unless it clearly is not feasible to do 
                so, and no single procedure shall be the sole criterion 
                for determining an appropriate educational program for a 
                child.
            ``(7) Evaluation.--Children with disabilities are evaluated 
        in accordance with subsections (a) through (c) of section 614.
            ``(8) Confidentiality.--Agencies in the State comply with 
        section 617(c) (relating to the confidentiality of records and 
        information).
            ``(9) Transition from part c to preschool programs.--
        Children participating in early intervention programs assisted 
        under part C, and who will participate in preschool programs 
        assisted under this part, experience a smooth and effective 
        transition to those preschool programs in a manner consistent 
        with section 637(a)(9). By the third birthday of such a child, 
        an individualized education program or, if consistent with 
        sections 614(d)(2)(B) and 636(d), an individualized family 
        service plan, has been developed and is being implemented for 
        the child. The local educational agency will participate in 
        transition planning conferences arranged by the designated lead 
        agency under section 635(a)(10).
            ``(10) Children in private schools.--
                    ``(A) Children enrolled in private schools by their 
                parents.--
                          ``(i) In general.--To the extent consistent 
                      with the number and location of children with 
                      disabilities in the State who are enrolled by 
                      their parents in private elementary schools and 
                      secondary schools in the school district served by 
                      a local educational agency, provision is made for 
                      the participation of those children in the program 
                      assisted or carried out under this part

[[Page 118 STAT. 2679]]

                      by providing for such children special education 
                      and related services in accordance with the 
                      following requirements, unless the Secretary has 
                      arranged for services to those children under 
                      subsection (f):
                                    ``(I) Amounts to be expended for the 
                                provision of those services (including 
                                direct services to parentally placed 
                                private school children) by the local 
                                educational agency shall be equal to a 
                                proportionate amount of Federal funds 
                                made available under this part.
                                    ``(II) In calculating the 
                                proportionate amount of Federal funds, 
                                the local educational agency, after 
                                timely and meaningful consultation with 
                                representatives of private schools as 
                                described in clause (iii), shall conduct 
                                a thorough and complete child find 
                                process to determine the number of 
                                parentally placed children with 
                                disabilities attending private schools 
                                located in the local educational agency.
                                    ``(III) Such services to parentally 
                                placed private school children with 
                                disabilities may be provided to the 
                                children on the premises of private, 
                                including religious, schools, to the 
                                extent consistent with law.
                                    ``(IV) State and local funds may 
                                supplement and in no case shall supplant 
                                the proportionate amount of Federal 
                                funds required to be expended under this 
                                subparagraph.
                                    ``(V) Each local educational agency 
                                shall maintain in its records and 
                                provide to the State educational agency 
                                the number of children evaluated under 
                                this subparagraph, the number of 
                                children determined to be children with 
                                disabilities under this paragraph, and 
                                the number of children served under this 
                                paragraph.
                          ``(ii) Child find requirement.--
                                    ``(I) In general.--The requirements 
                                of paragraph (3) (relating to child 
                                find) shall apply with respect to 
                                children with disabilities in the State 
                                who are enrolled in private, including 
                                religious, elementary schools and 
                                secondary schools.
                                    ``(II) Equitable participation.--The 
                                child find process shall be designed to 
                                ensure the equitable participation of 
                                parentally placed private school 
                                children with disabilities and an 
                                accurate count of such children.
                                    ``(III) Activities.--In carrying out 
                                this clause, the local educational 
                                agency, or where applicable, the State 
                                educational agency, shall undertake 
                                activities similar to those activities 
                                undertaken for the agency's public 
                                school children.
                                    ``(IV) Cost.--The cost of carrying 
                                out this clause, including individual 
                                evaluations, may not be considered in 
                                determining whether a local educational 
                                agency has met its obligations under 
                                clause (i).

[[Page 118 STAT. 2680]]

                                    ``(V) Completion period.--Such child 
                                find process shall be completed in a 
                                time period comparable to that for other 
                                students attending public schools in the 
                                local educational agency.
                          ``(iii) Consultation.--To ensure timely and 
                      meaningful consultation, a local educational 
                      agency, or where appropriate, a State educational 
                      agency, shall consult with private school 
                      representatives and representatives of parents of 
                      parentally placed private school children with 
                      disabilities during the design and development of 
                      special education and related services for the 
                      children, including regarding--
                                    ``(I) the child find process and how 
                                parentally placed private school 
                                children suspected of having a 
                                disability can participate equitably, 
                                including how parents, teachers, and 
                                private school officials will be 
                                informed of the process;
                                    ``(II) the determination of the 
                                proportionate amount of Federal funds 
                                available to serve parentally placed 
                                private school children with 
                                disabilities under this subparagraph, 
                                including the determination of how the 
                                amount was calculated;
                                    ``(III) the consultation process 
                                among the local educational agency, 
                                private school officials, and 
                                representatives of parents of parentally 
                                placed private school children with 
                                disabilities, including how such process 
                                will operate throughout the school year 
                                to ensure that parentally placed private 
                                school children with disabilities 
                                identified through the child find 
                                process can meaningfully participate in 
                                special education and related services;
                                    ``(IV) how, where, and by whom 
                                special education and related services 
                                will be provided for parentally placed 
                                private school children with 
                                disabilities, including a discussion of 
                                types of services, including direct 
                                services and alternate service delivery 
                                mechanisms, how such services will be 
                                apportioned if funds are insufficient to 
                                serve all children, and how and when 
                                these decisions will be made; and
                                    ``(V) how, if the local educational 
                                agency disagrees with the views of the 
                                private school officials on the 
                                provision of services or the types of 
                                services, whether provided directly or 
                                through a contract, the local 
                                educational agency shall provide to the 
                                private school officials a written 
                                explanation of the reasons why the local 
                                educational agency chose not to provide 
                                services directly or through a contract.
                          ``(iv) Written affirmation.--When timely and 
                      meaningful consultation as required by clause 
                      (iii) has occurred, the local educational agency 
                      shall obtain a written affirmation signed by the 
                      representatives of participating private schools, 
                      and if such representatives do not provide such 
                      affirmation within a reasonable period of time, 
                      the local educational agency shall

[[Page 118 STAT. 2681]]

                      forward the documentation of the consultation 
                      process to the State educational agency.
                          ``(v) Compliance.--
                                    ``(I) In general.--A private school 
                                official shall have the right to submit 
                                a complaint to the State educational 
                                agency that the local educational agency 
                                did not engage in consultation that was 
                                meaningful and timely, or did not give 
                                due consideration to the views of the 
                                private school official.
                                    ``(II) Procedure.--If the private 
                                school official wishes to submit a 
                                complaint, the official shall provide 
                                the basis of the noncompliance with this 
                                subparagraph by the local educational 
                                agency to the State educational agency, 
                                and the local educational agency shall 
                                forward the appropriate documentation to 
                                the State educational agency. If the 
                                private school official is dissatisfied 
                                with the decision of the State 
                                educational agency, such official may 
                                submit a complaint to the Secretary by 
                                providing the basis of the noncompliance 
                                with this subparagraph by the local 
                                educational agency to the Secretary, and 
                                the State educational agency shall 
                                forward the appropriate documentation to 
                                the Secretary.
                          ``(vi) Provision of equitable services.--
                                    ``(I) Directly or through 
                                contracts.--The provision of services 
                                pursuant to this subparagraph shall be 
                                provided--
                                            ``(aa) by employees of a 
                                        public agency; or
                                            ``(bb) through contract by 
                                        the public agency with an 
                                        individual, association, agency, 
                                        organization, or other entity.
                                    ``(II) Secular, neutral, 
                                nonideological.--Special education and 
                                related services provided to parentally 
                                placed private school children with 
                                disabilities, including materials and 
                                equipment, shall be secular, neutral, 
                                and nonideological.
                          ``(vii) Public control of funds.--The control 
                      of funds used to provide special education and 
                      related services under this subparagraph, and 
                      title to materials, equipment, and property 
                      purchased with those funds, shall be in a public 
                      agency for the uses and purposes provided in this 
                      title, and a public agency shall administer the 
                      funds and property.
                    ``(B) Children placed in, or referred to, private 
                schools by public agencies.--
                          ``(i) In general.--Children with disabilities 
                      in private schools and facilities are provided 
                      special education and related services, in 
                      accordance with an individualized education 
                      program, at no cost to their parents, if such 
                      children are placed in, or referred to, such 
                      schools or facilities by the State or appropriate 
                      local educational agency as the means of carrying 
                      out the requirements of this part or any other 
                      applicable law requiring the provision of special 
                      education and related services to all children 
                      with disabilities within such State.

[[Page 118 STAT. 2682]]

                          ``(ii) Standards.--In all cases described in 
                      clause (i), the State educational agency shall 
                      determine whether such schools and facilities meet 
                      standards that apply to State educational agencies 
                      and local educational agencies and that children 
                      so served have all the rights the children would 
                      have if served by such agencies.
                    ``(C) Payment for education of children enrolled in 
                private schools without consent of or referral by the 
                public agency.--
                          ``(i) In general.--Subject to subparagraph 
                      (A), this part does not require a local 
                      educational agency to pay for the cost of 
                      education, including special education and related 
                      services, of a child with a disability at a 
                      private school or facility if that agency made a 
                      free appropriate public education available to the 
                      child and the parents elected to place the child 
                      in such private school or facility.
                          ``(ii) Reimbursement for private school 
                      placement.--If the parents of a child with a 
                      disability, who previously received special 
                      education and related services under the authority 
                      of a public agency, enroll the child in a private 
                      elementary school or secondary school without the 
                      consent of or referral by the public agency, a 
                      court or a hearing officer may require the agency 
                      to reimburse the parents for the cost of that 
                      enrollment if the court or hearing officer finds 
                      that the agency had not made a free appropriate 
                      public education available to the child in a 
                      timely manner prior to that enrollment.
                          ``(iii) Limitation on reimbursement.--The cost 
                      of reimbursement described in clause (ii) may be 
                      reduced or denied--
                                    ``(I) if--
                                            ``(aa) at the most recent 
                                        IEP meeting that the parents 
                                        attended prior to removal of the 
                                        child from the public school, 
                                        the parents did not inform the 
                                        IEP Team that they were 
                                        rejecting the placement proposed 
                                        by the public agency to provide 
                                        a free appropriate public 
                                        education to their child, 
                                        including stating their concerns 
                                        and their intent to enroll their 
                                        child in a private school at 
                                        public expense; or
                                            ``(bb) 10 business days 
                                        (including any holidays that 
                                        occur on a business day) prior 
                                        to the removal of the child from 
                                        the public school, the parents 
                                        did not give written notice to 
                                        the public agency of the 
                                        information described in item 
                                        (aa);
                                    ``(II) if, prior to the parents' 
                                removal of the child from the public 
                                school, the public agency informed the 
                                parents, through the notice requirements 
                                described in section 615(b)(3), of its 
                                intent to evaluate the child (including 
                                a statement of the purpose of the 
                                evaluation that was appropriate and 
                                reasonable), but the parents did not 
                                make the child available for such 
                                evaluation; or

[[Page 118 STAT. 2683]]

                                    ``(III) upon a judicial finding of 
                                unreasonableness with respect to actions 
                                taken by the parents.
                          ``(iv) Exception.--Notwithstanding the notice 
                      requirement in clause (iii)(I), the cost of 
                      reimbursement--
                                    ``(I) shall not be reduced or denied 
                                for failure to provide such notice if--
                                            ``(aa) the school prevented 
                                        the parent from providing such 
                                        notice;
                                            ``(bb) the parents had not 
                                        received notice, pursuant to 
                                        section 615, of the notice 
                                        requirement in clause (iii)(I); 
                                        or
                                            ``(cc) compliance with 
                                        clause (iii)(I) would likely 
                                        result in physical harm to the 
                                        child; and
                                    ``(II) may, in the discretion of a 
                                court or a hearing officer, not be 
                                reduced or denied for failure to provide 
                                such notice if--
                                            ``(aa) the parent is 
                                        illiterate or cannot write in 
                                        English; or
                                            ``(bb) compliance with 
                                        clause (iii)(I) would likely 
                                        result in serious emotional harm 
                                        to the child.
            ``(11) State educational agency responsible for general 
        supervision.--
                    ``(A) In general.--The State educational agency is 
                responsible for ensuring that--
                          ``(i) the requirements of this part are met;
                          ``(ii) all educational programs for children 
                      with disabilities in the State, including all such 
                      programs administered by any other State agency or 
                      local agency--
                                    ``(I) are under the general 
                                supervision of individuals in the State 
                                who are responsible for educational 
                                programs for children with disabilities; 
                                and
                                    ``(II) meet the educational 
                                standards of the State educational 
                                agency; and
                          ``(iii) in carrying out this part with respect 
                      to homeless children, the requirements of subtitle 
                      B of title VII of the McKinney-Vento Homeless 
                      Assistance Act (42 U.S.C. 11431 et seq.) are met.
                    ``(B) Limitation.--Subparagraph (A) shall not limit 
                the responsibility of agencies in the State other than 
                the State educational agency to provide, or pay for some 
                or all of the costs of, a free appropriate public 
                education for any child with a disability in the State.
                    ``(C) Exception.--Notwithstanding subparagraphs (A) 
                and (B), the Governor (or another individual pursuant to 
                State law), consistent with State law, may assign to any 
                public agency in the State the responsibility of 
                ensuring that the requirements of this part are met with 
                respect to children with disabilities who are convicted 
                as adults under State law and incarcerated in adult 
                prisons.
            ``(12) Obligations related to and methods of ensuring 
        services.--

[[Page 118 STAT. 2684]]

                    ``(A) Establishing responsibility for services.--The 
                Chief Executive Officer of a State or designee of the 
                officer shall ensure that an interagency agreement or 
                other mechanism for interagency coordination is in 
                effect between each public agency described in 
                subparagraph (B) and the State educational agency, in 
                order to ensure that all services described in 
                subparagraph (B)(i) that are needed to ensure a free 
                appropriate public education are provided, including the 
                provision of such services during the pendency of any 
                dispute under clause (iii). Such agreement or mechanism 
                shall include the following:
                          ``(i) Agency financial responsibility.--An 
                      identification of, or a method for defining, the 
                      financial responsibility of each agency for 
                      providing services described in subparagraph 
                      (B)(i) to ensure a free appropriate public 
                      education to children with disabilities, provided 
                      that the financial responsibility of each public 
                      agency described in subparagraph (B), including 
                      the State medicaid agency and other public 
                      insurers of children with disabilities, shall 
                      precede the financial responsibility of the local 
                      educational agency (or the State agency 
                      responsible for developing the child's IEP).
                          ``(ii) Conditions and terms of 
                      reimbursement.--The conditions, terms, and 
                      procedures under which a local educational agency 
                      shall be reimbursed by other agencies.
                          ``(iii) Interagency disputes.--Procedures for 
                      resolving interagency disputes (including 
                      procedures under which local educational agencies 
                      may initiate proceedings) under the agreement or 
                      other mechanism to secure reimbursement from other 
                      agencies or otherwise implement the provisions of 
                      the agreement or mechanism.
                          ``(iv) Coordination of services procedures.--
                      Policies and procedures for agencies to determine 
                      and identify the interagency coordination 
                      responsibilities of each agency to promote the 
                      coordination and timely and appropriate delivery 
                      of services described in subparagraph (B)(i).
                    ``(B) Obligation of public agency.--
                          ``(i) In general.--If any public agency other 
                      than an educational agency is otherwise obligated 
                      under Federal or State law, or assigned 
                      responsibility under State policy pursuant to 
                      subparagraph (A), to provide or pay for any 
                      services that are also considered special 
                      education or related services (such as, but not 
                      limited to, services described in section 602(1) 
                      relating to assistive technology devices, 602(2) 
                      relating to assistive technology services, 602(26) 
                      relating to related services, 602(33) relating to 
                      supplementary aids and services, and 602(34) 
                      relating to transition services) that are 
                      necessary for ensuring a free appropriate public 
                      education to children with disabilities within the 
                      State, such public agency shall fulfill that 
                      obligation or responsibility, either directly or 
                      through contract or

[[Page 118 STAT. 2685]]

                      other arrangement pursuant to subparagraph (A) or 
                      an agreement pursuant to subparagraph (C).
                          ``(ii) Reimbursement for services by public 
                      agency.--If a public agency other than an 
                      educational agency fails to provide or pay for the 
                      special education and related services described 
                      in clause (i), the local educational agency (or 
                      State agency responsible for developing the 
                      child's IEP) shall provide or pay for such 
                      services to the child. Such local educational 
                      agency or State agency is authorized to claim 
                      reimbursement for the services from the public 
                      agency that failed to provide or pay for such 
                      services and such public agency shall reimburse 
                      the local educational agency or State agency 
                      pursuant to the terms of the interagency agreement 
                      or other mechanism described in subparagraph 
                      (A)(i) according to the procedures established in 
                      such agreement pursuant to subparagraph (A)(ii).
                    ``(C) Special rule.--The requirements of 
                subparagraph (A) may be met through--
                          ``(i) State statute or regulation;
                          ``(ii) signed agreements between respective 
                      agency officials that clearly identify the 
                      responsibilities of each agency relating to the 
                      provision of services; or
                          ``(iii) other appropriate written methods as 
                      determined by the Chief Executive Officer of the 
                      State or designee of the officer and approved by 
                      the Secretary.
            ``(13) Procedural requirements relating to local educational 
        agency eligibility.--The State educational agency will not make 
        a final determination that a local educational agency is not 
        eligible for assistance under this part without first affording 
        that agency reasonable notice and an opportunity for a hearing.
            ``(14) Personnel qualifications.--
                    ``(A) In general.--The State educational agency has 
                established and maintains qualifications to ensure that 
                personnel necessary to carry out this part are 
                appropriately and adequately prepared and trained, 
                including that those personnel have the content 
                knowledge and skills to serve children with 
                disabilities.
                    ``(B) Related services personnel and 
                paraprofessionals.--The qualifications under 
                subparagraph (A) include qualifications for related 
                services personnel and paraprofessionals that--
                          ``(i) are consistent with any State-approved 
                      or State-recognized certification, licensing, 
                      registration, or other comparable requirements 
                      that apply to the professional discipline in which 
                      those personnel are providing special education or 
                      related services;
                          ``(ii) ensure that related services personnel 
                      who deliver services in their discipline or 
                      profession meet the requirements of clause (i) and 
                      have not had certification or licensure 
                      requirements waived on an emergency, temporary, or 
                      provisional basis; and
                          ``(iii) allow paraprofessionals and assistants 
                      who are appropriately trained and supervised, in 
                      accordance with State law, regulation, or written 
                      policy, in

[[Page 118 STAT. 2686]]

                      meeting the requirements of this part to be used 
                      to assist in the provision of special education 
                      and related services under this part to children 
                      with disabilities.
                    ``(C) Qualifications for special education 
                teachers.--The qualifications described in subparagraph 
                (A) shall ensure that each person employed as a special 
                education teacher in the State who teaches elementary 
                school, middle school, or secondary school is highly 
                qualified by the deadline established in section 
                1119(a)(2) of the Elementary and Secondary Education Act 
                of 1965.
                    ``(D) Policy.--In implementing this section, a State 
                shall adopt a policy that includes a requirement that 
                local educational agencies in the State take measurable 
                steps to recruit, hire, train, and retain highly 
                qualified personnel to provide special education and 
                related services under this part to children with 
                disabilities.
                    ``(E) Rule of construction.--Notwithstanding any 
                other individual right of action that a parent or 
                student may maintain under this part, nothing in this 
                paragraph shall be construed to create a right of action 
                on behalf of an individual student for the failure of a 
                particular State educational agency or local educational 
                agency staff person to be highly qualified, or to 
                prevent a parent from filing a complaint about staff 
                qualifications with the State educational agency as 
                provided for under this part.
            ``(15) Performance goals and indicators.--The State--
                    ``(A) has established goals for the performance of 
                children with disabilities in the State that--
                          ``(i) promote the purposes of this title, as 
                      stated in section 601(d);
                          ``(ii) are the same as the State's definition 
                      of adequate yearly progress, including the State's 
                      objectives for progress by children with 
                      disabilities, under section 1111(b)(2)(C) of the 
                      Elementary and Secondary Education Act of 1965;
                          ``(iii) address graduation rates and dropout 
                      rates, as well as such other factors as the State 
                      may determine; and
                          ``(iv) are consistent, to the extent 
                      appropriate, with any other goals and standards 
                      for children established by the State;
                    ``(B) has established performance indicators the 
                State will use to assess progress toward achieving the 
                goals described in subparagraph (A), including 
                measurable annual objectives for progress by children 
                with disabilities under section 1111(b)(2)(C)(v)(II)(cc) 
                of the Elementary and Secondary Education Act of 1965; 
                and
                    ``(C) <<NOTE: Reports.>> will annually report to the 
                Secretary and the public on the progress of the State, 
                and of children with disabilities in the State, toward 
                meeting the goals established under subparagraph (A), 
                which may include elements of the reports required under 
                section 1111(h) of the Elementary and Secondary 
                Education Act of 1965.
            ``(16) Participation in assessments.--
                    ``(A) In general.--All children with disabilities 
                are included in all general State and districtwide 
                assessment programs, including assessments described 
                under section

[[Page 118 STAT. 2687]]

                1111 of the Elementary and Secondary Education Act of 
                1965, with appropriate accommodations and alternate 
                assessments where necessary and as indicated in their 
                respective individualized education programs.
                    ``(B) Accommodation guidelines.--The State (or, in 
                the case of a districtwide assessment, the local 
                educational agency) has developed guidelines for the 
                provision of appropriate accommodations.
                    ``(C) Alternate assessments.--
                          ``(i) In general.--The State (or, in the case 
                      of a districtwide assessment, the local 
                      educational agency) has developed and implemented 
                      guidelines for the participation of children with 
                      disabilities in alternate assessments for those 
                      children who cannot participate in regular 
                      assessments under subparagraph (A) with 
                      accommodations as indicated in their respective 
                      individualized education programs.
                          ``(ii) Requirements for alternate 
                      assessments.--The guidelines under clause (i) 
                      shall provide for alternate assessments that--
                                    ``(I) are aligned with the State's 
                                challenging academic content standards 
                                and challenging student academic 
                                achievement standards; and
                                    ``(II) if the State has adopted 
                                alternate academic achievement standards 
                                permitted under the regulations 
                                promulgated to carry out section 
                                1111(b)(1) of the Elementary and 
                                Secondary Education Act of 1965, measure 
                                the achievement of children with 
                                disabilities against those standards.
                          ``(iii) Conduct of alternate assessments.--The 
                      State conducts the alternate assessments described 
                      in this subparagraph.
                    ``(D) Reports.--The State educational agency (or, in 
                the case of a districtwide assessment, the local 
                educational agency) makes available to the public, and 
                reports to the public with the same frequency and in the 
                same detail as it reports on the assessment of 
                nondisabled children, the following:
                          ``(i) The number of children with disabilities 
                      participating in regular assessments, and the 
                      number of those children who were provided 
                      accommodations in order to participate in those 
                      assessments.
                          ``(ii) The number of children with 
                      disabilities participating in alternate 
                      assessments described in subparagraph (C)(ii)(I).
                          ``(iii) The number of children with 
                      disabilities participating in alternate 
                      assessments described in subparagraph (C)(ii)(II).
                          ``(iv) The performance of children with 
                      disabilities on regular assessments and on 
                      alternate assessments (if the number of children 
                      with disabilities participating in those 
                      assessments is sufficient to yield statistically 
                      reliable information and reporting that 
                      information will not reveal personally 
                      identifiable information about an individual 
                      student), compared with the achievement of all 
                      children, including children with disabilities, on 
                      those assessments.

[[Page 118 STAT. 2688]]

                    ``(E) Universal design.--The State educational 
                agency (or, in the case of a districtwide assessment, 
                the local educational agency) shall, to the extent 
                feasible, use universal design principles in developing 
                and administering any assessments under this paragraph.
            ``(17) Supplementation of state, local, and other federal 
        funds.--
                    ``(A) Expenditures.--Funds paid to a State under 
                this part will be expended in accordance with all the 
                provisions of this part.
                    ``(B) Prohibition against commingling.--Funds paid 
                to a State under this part will not be commingled with 
                State funds.
                    ``(C) Prohibition against supplantation and 
                conditions for waiver by secretary.--Except as provided 
                in section 613, funds paid to a State under this part 
                will be used to supplement the level of Federal, State, 
                and local funds (including funds that are not under the 
                direct control of State or local educational agencies) 
                expended for special education and related services 
                provided to children with disabilities under this part 
                and in no case to supplant such Federal, State, and 
                local funds, except that, where the State provides clear 
                and convincing evidence that all children with 
                disabilities have available to them a free appropriate 
                public education, the Secretary may waive, in whole or 
                in part, the requirements of this subparagraph if the 
                Secretary concurs with the evidence provided by the 
                State.
            ``(18) Maintenance of state financial support.--
                    ``(A) In general.--The State does not reduce the 
                amount of State financial support for special education 
                and related services for children with disabilities, or 
                otherwise made available because of the excess costs of 
                educating those children, below the amount of that 
                support for the preceding fiscal year.
                    ``(B) Reduction of funds for failure to maintain 
                support.--The Secretary shall reduce the allocation of 
                funds under section 611 for any fiscal year following 
                the fiscal year in which the State fails to comply with 
                the requirement of subparagraph (A) by the same amount 
                by which the State fails to meet the requirement.
                    ``(C) Waivers for exceptional or uncontrollable 
                circumstances.--The Secretary may waive the requirement 
                of subparagraph (A) for a State, for 1 fiscal year at a 
                time, if the Secretary determines that--
                          ``(i) granting a waiver would be equitable due 
                      to exceptional or uncontrollable circumstances 
                      such as a natural disaster or a precipitous and 
                      unforeseen decline in the financial resources of 
                      the State; or
                          ``(ii) the State meets the standard in 
                      paragraph (17)(C) for a waiver of the requirement 
                      to supplement, and not to supplant, funds received 
                      under this part.
                    ``(D) Subsequent years.--If, for any year, a State 
                fails to meet the requirement of subparagraph (A), 
                including any year for which the State is granted a 
                waiver under subparagraph (C), the financial support 
                required of the State in future years under subparagraph 
                (A) shall

[[Page 118 STAT. 2689]]

                be the amount that would have been required in the 
                absence of that failure and not the reduced level of the 
                State's support.
            ``(19) Public participation.--Prior to the adoption of any 
        policies and procedures needed to comply with this section 
        (including any amendments to such policies and procedures), the 
        State ensures that there are public hearings, adequate notice of 
        the hearings, and an opportunity for comment available to the 
        general public, including individuals with disabilities and 
        parents of children with disabilities.
            ``(20) Rule of construction.--In complying with paragraphs 
        (17) and (18), a State may not use funds paid to it under this 
        part to satisfy State-law mandated funding obligations to local 
        educational agencies, including funding based on student 
        attendance or enrollment, or inflation.
            ``(21) State advisory panel.--
                    ``(A) In general.--The State has established and 
                maintains an advisory panel for the purpose of providing 
                policy guidance with respect to special education and 
                related services for children with disabilities in the 
                State.
                    ``(B) Membership.--Such advisory panel shall consist 
                of members appointed by the Governor, or any other 
                official authorized under State law to make such 
                appointments, be representative of the State population, 
                and be composed of individuals involved in, or concerned 
                with, the education of children with disabilities, 
                including--
                          ``(i) parents of children with disabilities 
                      (ages birth through 26);
                          ``(ii) individuals with disabilities;
                          ``(iii) teachers;
                          ``(iv) representatives of institutions of 
                      higher education that prepare special education 
                      and related services personnel;
                          ``(v) State and local education officials, 
                      including officials who carry out activities under 
                      subtitle B of title VII of the McKinney-Vento 
                      Homeless Assistance Act (42 U.S.C. 11431 et seq.);
                          ``(vi) administrators of programs for children 
                      with disabilities;
                          ``(vii) representatives of other State 
                      agencies involved in the financing or delivery of 
                      related services to children with disabilities;
                          ``(viii) representatives of private schools 
                      and public charter schools;
                          ``(ix) not less than 1 representative of a 
                      vocational, community, or business organization 
                      concerned with the provision of transition 
                      services to children with disabilities;
                          ``(x) a representative from the State child 
                      welfare agency responsible for foster care; and
                          ``(xi) representatives from the State juvenile 
                      and adult corrections agencies.
                    ``(C) Special rule.--A majority of the members of 
                the panel shall be individuals with disabilities or 
                parents of children with disabilities (ages birth 
                through 26).
                    ``(D) Duties.--The advisory panel shall--

[[Page 118 STAT. 2690]]

                          ``(i) advise the State educational agency of 
                      unmet needs within the State in the education of 
                      children with disabilities;
                          ``(ii) comment publicly on any rules or 
                      regulations proposed by the State regarding the 
                      education of children with disabilities;
                          ``(iii) advise the State educational agency in 
                      developing evaluations and reporting on data to 
                      the Secretary under section 618;
                          ``(iv) advise the State educational agency in 
                      developing corrective action plans to address 
                      findings identified in Federal monitoring reports 
                      under this part; and
                          ``(v) advise the State educational agency in 
                      developing and implementing policies relating to 
                      the coordination of services for children with 
                      disabilities.
            ``(22) Suspension and expulsion rates.--
                    ``(A) In general.--The State educational agency 
                examines data, including data disaggregated by race and 
                ethnicity, to determine if significant discrepancies are 
                occurring in the rate of long-term suspensions and 
                expulsions of children with disabilities--
                          ``(i) among local educational agencies in the 
                      State; or
                          ``(ii) compared to such rates for nondisabled 
                      children within such agencies.
                    ``(B) Review and revision of policies.--If such 
                discrepancies are occurring, the State educational 
                agency reviews and, if appropriate, revises (or requires 
                the affected State or local educational agency to 
                revise) its policies, procedures, and practices relating 
                to the development and implementation of IEPs, the use 
                of positive behavioral interventions and supports, and 
                procedural safeguards, to ensure that such policies, 
                procedures, and practices comply with this title.
            ``(23) Access to instructional materials.--
                    ``(A) In general.--The State adopts the National 
                Instructional Materials Accessibility Standard for the 
                purposes of providing instructional materials to blind 
                persons or other persons with print disabilities, in a 
                timely manner after the publication of the National 
                Instructional Materials Accessibility Standard in the 
                Federal Register.
                    ``(B) Rights of state educational agency.--Nothing 
                in this paragraph shall be construed to require any 
                State educational agency to coordinate with the National 
                Instructional Materials Access Center. If a State 
                educational agency chooses not to coordinate with the 
                National Instructional Materials Access Center, such 
                agency shall provide an assurance to the Secretary that 
                the agency will provide instructional materials to blind 
                persons or other persons with print disabilities in a 
                timely manner.
                    ``(C) <<NOTE: Deadline. Contracts.>> Preparation and 
                delivery of files.--If a State educational agency 
                chooses to coordinate with the National Instructional 
                Materials Access Center, not later than 2 years after 
                the date of enactment of the Individuals with 
                Disabilities Education Improvement Act of 2004, the

[[Page 118 STAT. 2691]]

                agency, as part of any print instructional materials 
                adoption process, procurement contract, or other 
                practice or instrument used for purchase of print 
                instructional materials, shall enter into a written 
                contract with the publisher of the print instructional 
                materials to--
                          ``(i) require the publisher to prepare and, on 
                      or before delivery of the print instructional 
                      materials, provide to the National Instructional 
                      Materials Access Center electronic files 
                      containing the contents of the print instructional 
                      materials using the National Instructional 
                      Materials Accessibility Standard; or
                          ``(ii) purchase instructional materials from 
                      the publisher that are produced in, or may be 
                      rendered in, specialized formats.
                    ``(D) Assistive technology.--In carrying out this 
                paragraph, the State educational agency, to the maximum 
                extent possible, shall work collaboratively with the 
                State agency responsible for assistive technology 
                programs.
                    ``(E) Definitions.--In this paragraph:
                          ``(i) National instructional materials access 
                      center.--The term `National Instructional 
                      Materials Access Center' means the center 
                      established pursuant to section 674(e).
                          ``(ii) National instructional materials 
                      accessibility standard.--The term `National 
                      Instructional Materials Accessibility Standard' 
                      has the meaning given the term in section 
                      674(e)(3)(A).
                          ``(iii) Specialized formats.--The term 
                      `specialized formats' has the meaning given the 
                      term in section 674(e)(3)(D).
            ``(24) Overidentification and disproportionality.--The State 
        has in effect, consistent with the purposes of this title and 
        with section 618(d), policies and procedures designed to prevent 
        the inappropriate overidentification or disproportionate 
        representation by race and ethnicity of children as children 
        with disabilities, including children with disabilities with a 
        particular impairment described in section 602.
            ``(25) Prohibition on mandatory medication.--
                    ``(A) In general.--The State educational agency 
                shall prohibit State and local educational agency 
                personnel from requiring a child to obtain a 
                prescription for a substance covered by the Controlled 
                Substances Act (21 U.S.C. 801 et seq.) as a condition of 
                attending school, receiving an evaluation under 
                subsection (a) or (c) of section 614, or receiving 
                services under this title.
                    ``(B) Rule of construction.--Nothing in subparagraph 
                (A) shall be construed to create a Federal prohibition 
                against teachers and other school personnel consulting 
                or sharing classroom-based observations with parents or 
                guardians regarding a student's academic and functional 
                performance, or behavior in the classroom or school, or 
                regarding the need for evaluation for special education 
                or related services under paragraph (3).

[[Page 118 STAT. 2692]]

    ``(b) State Educational Agency as Provider of Free Appropriate 
Public Education or Direct Services.--If the State educational agency 
provides free appropriate public education to children with 
disabilities, or provides direct services to such children, such 
agency--
            ``(1) shall comply with any additional requirements of 
        section 613(a), as if such agency were a local educational 
        agency; and
            ``(2) may use amounts that are otherwise available to such 
        agency under this part to serve those children without regard to 
        section 613(a)(2)(A)(i) (relating to excess costs).

    ``(c) Exception for Prior State Plans.--
            ``(1) In general.--If a State has on file with the Secretary 
        policies and procedures that demonstrate that such State meets 
        any requirement of subsection (a), including any policies and 
        procedures filed under this part as in effect before the 
        effective date of the Individuals with Disabilities Education 
        Improvement Act of 2004, the Secretary shall consider such State 
        to have met such requirement for purposes of receiving a grant 
        under this part.
            ``(2) Modifications made by state.--
        Subject <<NOTE: Termination date.>> to paragraph (3), an 
        application submitted by a State in accordance with this section 
        shall remain in effect until the State submits to the Secretary 
        such modifications as the State determines 
        necessary. <<NOTE: Applicability.>> This section shall apply to 
        a modification to an application to the same extent and in the 
        same manner as this section applies to the original plan.
            ``(3) Modifications required by the secretary.--If, after 
        the effective date of the Individuals with Disabilities 
        Education Improvement Act of 2004, the provisions of this title 
        are amended (or the regulations developed to carry out this 
        title are amended), there is a new interpretation of this title 
        by a Federal court or a State's highest court, or there is an 
        official finding of noncompliance with Federal law or 
        regulations, then the Secretary may require a State to modify 
        its application only to the extent necessary to ensure the 
        State's compliance with this part.

    ``(d) Approval by the Secretary.--
            ``(1) <<NOTE: Notification.>> In general.--If the Secretary 
        determines that a State is eligible to receive a grant under 
        this part, the Secretary shall notify the State of that 
        determination.
            ``(2) Notice and hearing.--The Secretary shall not make a 
        final determination that a State is not eligible to receive a 
        grant under this part until after providing the State--
                    ``(A) with reasonable notice; and
                    ``(B) with an opportunity for a hearing.

    ``(e) Assistance Under Other Federal Programs.--Nothing in this 
title permits a State to reduce medical and other assistance available, 
or to alter eligibility, under titles V and XIX of the Social Security 
Act with respect to the provision of a free appropriate public education 
for children with disabilities in the State.
    ``(f) By-Pass for Children in Private Schools.--
            ``(1) In general.--If, on the date of enactment of the 
        Education of the Handicapped Act Amendments of 1983, a State 
        educational agency was prohibited by law from providing for the 
        equitable participation in special programs of children with

[[Page 118 STAT. 2693]]

        disabilities enrolled in private elementary schools and 
        secondary schools as required by subsection (a)(10)(A), or if 
        the Secretary determines that a State educational agency, local 
        educational agency, or other entity has substantially failed or 
        is unwilling to provide for such equitable participation, then 
        the Secretary shall, notwithstanding such provision of law, 
        arrange for the provision of services to such children through 
        arrangements that shall be subject to the requirements of such 
        subsection.
            ``(2) Payments.--
                    ``(A) Determination of amounts.--If the Secretary 
                arranges for services pursuant to this subsection, the 
                Secretary, after consultation with the appropriate 
                public and private school officials, shall pay to the 
                provider of such services for a fiscal year an amount 
                per child that does not exceed the amount determined by 
                dividing--
                          ``(i) the total amount received by the State 
                      under this part for such fiscal year; by
                          ``(ii) the number of children with 
                      disabilities served in the prior year, as reported 
                      to the Secretary by the State under section 618.
                    ``(B) Withholding of certain amounts.--Pending final 
                resolution of any investigation or complaint that may 
                result in a determination under this subsection, the 
                Secretary may withhold from the allocation of the 
                affected State educational agency the amount the 
                Secretary estimates will be necessary to pay the cost of 
                services described in subparagraph (A).
                    ``(C) Period of payments.--The period under which 
                payments are made under subparagraph (A) shall continue 
                until the Secretary determines that there will no longer 
                be any failure or inability on the part of the State 
                educational agency to meet the requirements of 
                subsection (a)(10)(A).
            ``(3) <<NOTE: Deadlines.>> Notice and hearing.--
                    ``(A) In general.--The Secretary shall not take any 
                final action under this subsection until the State 
                educational agency affected by such action has had an 
                opportunity, for not less than 45 days after receiving 
                written notice thereof, to submit written objections and 
                to appear before the Secretary or the Secretary's 
                designee to show cause why such action should not be 
                taken.
                    ``(B) Review of action.--If a State educational 
                agency is dissatisfied with the Secretary's final action 
                after a proceeding under subparagraph (A), such agency 
                may, not later than 60 days after notice of such action, 
                file with the United States court of appeals for the 
                circuit in which such State is located a petition for 
                review of that action. A copy of the petition shall be 
                forthwith transmitted by the clerk of the court to the 
                Secretary. The Secretary thereupon shall file in the 
                court the record of the proceedings on which the 
                Secretary based the Secretary's action, as provided in 
                section 2112 of title 28, United States Code.
                    ``(C) Review of findings of fact.--The findings of 
                fact by the Secretary, if supported by substantial 
                evidence, shall be conclusive, but the court, for good 
                cause shown, may remand the case to the Secretary to 
                take further

[[Page 118 STAT. 2694]]

                evidence, and the Secretary may thereupon make new or 
                modified findings of fact and may modify the Secretary's 
                previous action, and shall file in the court the record 
                of the further proceedings. Such new or modified 
                findings of fact shall likewise be conclusive if 
                supported by substantial evidence.
                    ``(D) Jurisdiction of court of appeals; review by 
                united states supreme court.--Upon the filing of a 
                petition under subparagraph (B), the United States court 
                of appeals shall have jurisdiction to affirm the action 
                of the Secretary or to set it aside, in whole or in 
                part. The judgment of the court shall be subject to 
                review by the Supreme Court of the United States upon 
                certiorari or certification as provided in section 1254 
                of title 28, United States Code.

``SEC. 613. <<NOTE: 20 USC 1413.>> LOCAL EDUCATIONAL AGENCY ELIGIBILITY.

    ``(a) In General.--A local educational agency is eligible for 
assistance under this part for a fiscal year if such agency submits a 
plan that provides assurances to the State educational agency that the 
local educational agency meets each of the following conditions:
            ``(1) Consistency with state policies.--The local 
        educational agency, in providing for the education of children 
        with disabilities within its jurisdiction, has in effect 
        policies, procedures, and programs that are consistent with the 
        State policies and procedures established under section 612.
            ``(2) Use of amounts.--
                    ``(A) In general.--Amounts provided to the local 
                educational agency under this part shall be expended in 
                accordance with the applicable provisions of this part 
                and--
                          ``(i) shall be used only to pay the excess 
                      costs of providing special education and related 
                      services to children with disabilities;
                          ``(ii) shall be used to supplement State, 
                      local, and other Federal funds and not to supplant 
                      such funds; and
                          ``(iii) shall not be used, except as provided 
                      in subparagraphs (B) and (C), to reduce the level 
                      of expenditures for the education of children with 
                      disabilities made by the local educational agency 
                      from local funds below the level of those 
                      expenditures for the preceding fiscal year.
                    ``(B) Exception.--Notwithstanding the restriction in 
                subparagraph (A)(iii), a local educational agency may 
                reduce the level of expenditures where such reduction is 
                attributable to--
                          ``(i) the voluntary departure, by retirement 
                      or otherwise, or departure for just cause, of 
                      special education personnel;
                          ``(ii) a decrease in the enrollment of 
                      children with disabilities;
                          ``(iii) the termination of the obligation of 
                      the agency, consistent with this part, to provide 
                      a program of special education to a particular 
                      child with a disability that is an exceptionally 
                      costly program, as determined by the State 
                      educational agency, because the child--

[[Page 118 STAT. 2695]]

                                    ``(I) has left the jurisdiction of 
                                the agency;
                                    ``(II) has reached the age at which 
                                the obligation of the agency to provide 
                                a free appropriate public education to 
                                the child has terminated; or
                                    ``(III) no longer needs such program 
                                of special education; or
                          ``(iv) the termination of costly expenditures 
                      for long-term purchases, such as the acquisition 
                      of equipment or the construction of school 
                      facilities.
                    ``(C) Adjustment to local fiscal effort in certain 
                fiscal years.--
                          ``(i) Amounts in excess.--Notwithstanding 
                      clauses (ii) and (iii) of subparagraph (A), for 
                      any fiscal year for which the allocation received 
                      by a local educational agency under section 611(f) 
                      exceeds the amount the local educational agency 
                      received for the previous fiscal year, the local 
                      educational agency may reduce the level of 
                      expenditures otherwise required by subparagraph 
                      (A)(iii) by not more than 50 percent of the amount 
                      of such excess.
                          ``(ii) Use of amounts to carry out activities 
                      under esea.--If a local educational agency 
                      exercises the authority under clause (i), the 
                      agency shall use an amount of local funds equal to 
                      the reduction in expenditures under clause (i) to 
                      carry out activities authorized under the 
                      Elementary and Secondary Education Act of 1965.
                          ``(iii) State prohibition.--Notwithstanding 
                      clause (i), if a State educational agency 
                      determines that a local educational agency is 
                      unable to establish and maintain programs of free 
                      appropriate public education that meet the 
                      requirements of subsection (a) or the State 
                      educational agency has taken action against the 
                      local educational agency under section 616, the 
                      State educational agency shall prohibit the local 
                      educational agency from reducing the level of 
                      expenditures under clause (i) for that fiscal 
                      year.
                          ``(iv) Special rule.--The amount of funds 
                      expended by a local educational agency under 
                      subsection (f) shall count toward the maximum 
                      amount of expenditures such local educational 
                      agency may reduce under clause (i).
                    ``(D) Schoolwide programs under title i of the 
                esea.--Notwithstanding subparagraph (A) or any other 
                provision of this part, a local educational agency may 
                use funds received under this part for any fiscal year 
                to carry out a schoolwide program under section 1114 of 
                the Elementary and Secondary Education Act of 1965, 
                except that the amount so used in any such program shall 
                not exceed--
                          ``(i) the number of children with disabilities 
                      participating in the schoolwide program; 
                      multiplied by
                          ``(ii)(I) the amount received by the local 
                      educational agency under this part for that fiscal 
                      year; divided by
                          ``(II) the number of children with 
                      disabilities in the jurisdiction of that agency.

[[Page 118 STAT. 2696]]

            ``(3) Personnel development.--The local educational agency 
        shall ensure that all personnel necessary to carry out this part 
        are appropriately and adequately prepared, subject to the 
        requirements of section 612(a)(14) and section 2122 of the 
        Elementary and Secondary Education Act of 1965.
            ``(4) Permissive use of funds.--
                    ``(A) Uses.--Notwithstanding paragraph (2)(A) or 
                section 612(a)(17)(B) (relating to commingled funds), 
                funds provided to the local educational agency under 
                this part may be used for the following activities:
                          ``(i) Services and aids that also benefit 
                      nondisabled children.--For the costs of special 
                      education and related services, and supplementary 
                      aids and services, provided in a regular class or 
                      other education-related setting to a child with a 
                      disability in accordance with the individualized 
                      education program of the child, even if 1 or more 
                      nondisabled children benefit from such services.
                          ``(ii) Early intervening services.--To develop 
                      and implement coordinated, early intervening 
                      educational services in accordance with subsection 
                      (f).
                          ``(iii) High cost education and related 
                      services.--To establish and implement cost or risk 
                      sharing funds, consortia, or cooperatives for the 
                      local educational agency itself, or for local 
                      educational agencies working in a consortium of 
                      which the local educational agency is a part, to 
                      pay for high cost special education and related 
                      services.
                    ``(B) Administrative case management.--A local 
                educational agency may use funds received under this 
                part to purchase appropriate technology for 
                recordkeeping, data collection, and related case 
                management activities of teachers and related services 
                personnel providing services described in the 
                individualized education program of children with 
                disabilities, that is needed for the implementation of 
                such case management activities.
            ``(5) Treatment of charter schools and their students.--In 
        carrying out this part with respect to charter schools that are 
        public schools of the local educational agency, the local 
        educational agency--
                    ``(A) serves children with disabilities attending 
                those charter schools in the same manner as the local 
                educational agency serves children with disabilities in 
                its other schools, including providing supplementary and 
                related services on site at the charter school to the 
                same extent to which the local educational agency has a 
                policy or practice of providing such services on the 
                site to its other public schools; and
                    ``(B) provides funds under this part to those 
                charter schools--
                          ``(i) on the same basis as the local 
                      educational agency provides funds to the local 
                      educational agency's other public schools, 
                      including proportional distribution based on 
                      relative enrollment of children with disabilities; 
                      and

[[Page 118 STAT. 2697]]

                          ``(ii) at the same time as the agency 
                      distributes other Federal funds to the agency's 
                      other public schools, consistent with the State's 
                      charter school law.
            ``(6) Purchase of instructional materials.--
                    ``(A) <<NOTE: Deadline.>> In general.--Not later 
                than 2 years after the date of enactment of the 
                Individuals with Disabilities Education Improvement Act 
                of 2004, a local educational agency that chooses to 
                coordinate with the National Instructional Materials 
                Access Center, when purchasing print instructional 
                materials, shall acquire the print instructional 
                materials in the same manner and subject to the same 
                conditions as a State educational agency acquires print 
                instructional materials under section 612(a)(23).
                    ``(B) Rights of local educational agency.--Nothing 
                in this paragraph shall be construed to require a local 
                educational agency to coordinate with the National 
                Instructional Materials Access Center. If a local 
                educational agency chooses not to coordinate with the 
                National Instructional Materials Access Center, the 
                local educational agency shall provide an assurance to 
                the State educational agency that the local educational 
                agency will provide instructional materials to blind 
                persons or other persons with print disabilities in a 
                timely manner.
            ``(7) Information for state educational agency.--The local 
        educational agency shall provide the State educational agency 
        with information necessary to enable the State educational 
        agency to carry out its duties under this part, including, with 
        respect to paragraphs (15) and (16) of section 612(a), 
        information relating to the performance of children with 
        disabilities participating in programs carried out under this 
        part.
            ``(8) Public information.--The local educational agency 
        shall make available to parents of children with disabilities 
        and to the general public all documents relating to the 
        eligibility of such agency under this part.
            ``(9) Records regarding migratory children with 
        disabilities.--The local educational agency shall cooperate in 
        the Secretary's efforts under section 1308 of the Elementary and 
        Secondary Education Act of 1965 to ensure the linkage of records 
        pertaining to migratory children with a disability for the 
        purpose of electronically exchanging, among the States, health 
        and educational information regarding such children.

    ``(b) Exception for Prior Local Plans.--
            ``(1) In general.--If a local educational agency or State 
        agency has on file with the State educational agency policies 
        and procedures that demonstrate that such local educational 
        agency, or such State agency, as the case may be, meets any 
        requirement of subsection (a), including any policies and 
        procedures filed under this part as in effect before the 
        effective date of the Individuals with Disabilities Education 
        Improvement Act of 2004, the State educational agency shall 
        consider such local educational agency or State agency, as the 
        case may be, to have met such requirement for purposes of 
        receiving assistance under this part.
            ``(2) Modification made by local educational agency.--
        Subject to paragraph (3), an application submitted by a local 
        educational agency in accordance with this section shall remain

[[Page 118 STAT. 2698]]

        in effect until the local educational agency submits to the 
        State educational agency such modifications as the local 
        educational agency determines necessary.
            ``(3) Modifications required by state educational agency.--
        If, after the effective date of the Individuals with 
        Disabilities Education Improvement Act of 2004, the provisions 
        of this title are amended (or the regulations developed to carry 
        out this title are amended), there is a new interpretation of 
        this title by Federal or State courts, or there is an official 
        finding of noncompliance with Federal or State law or 
        regulations, then the State educational agency may require a 
        local educational agency to modify its application only to the 
        extent necessary to ensure the local educational agency's 
        compliance with this part or State law.

    ``(c) Notification of Local Educational Agency or State Agency in 
Case of Ineligibility.--If the State educational agency determines that 
a local educational agency or State agency is not eligible under this 
section, then the State educational agency shall notify the local 
educational agency or State agency, as the case may be, of that 
determination and shall provide such local educational agency or State 
agency with reasonable notice and an opportunity for a hearing.
    ``(d) Local Educational Agency Compliance.--
            ``(1) In general.--If the State educational agency, after 
        reasonable notice and an opportunity for a hearing, finds that a 
        local educational agency or State agency that has been 
        determined to be eligible under this section is failing to 
        comply with any requirement described in subsection (a), the 
        State educational agency shall reduce or shall not provide any 
        further payments to the local educational agency or State agency 
        until the State educational agency is satisfied that the local 
        educational agency or State agency, as the case may be, is 
        complying with that requirement.
            ``(2) Additional requirement.--Any State agency or local 
        educational agency in receipt of a notice described in paragraph 
        (1) shall, by means of public notice, take such measures as may 
        be necessary to bring the pendency of an action pursuant to this 
        subsection to the attention of the public within the 
        jurisdiction of such agency.
            ``(3) Consideration.--In carrying out its responsibilities 
        under paragraph (1), the State educational agency shall consider 
        any decision made in a hearing held under section 615 that is 
        adverse to the local educational agency or State agency involved 
        in that decision.

    ``(e) Joint Establishment of Eligibility.--
            ``(1) Joint establishment.--
                    ``(A) In general.--A State educational agency may 
                require a local educational agency to establish its 
                eligibility jointly with another local educational 
                agency if the State educational agency determines that 
                the local educational agency will be ineligible under 
                this section because the local educational agency will 
                not be able to establish and maintain programs of 
                sufficient size and scope to effectively meet the needs 
                of children with disabilities.
                    ``(B) Charter school exception.--A State educational 
                agency may not require a charter school that is a local 
                educational agency to jointly establish its eligibility 
                under

[[Page 118 STAT. 2699]]

                subparagraph (A) unless the charter school is explicitly 
                permitted to do so under the State's charter school law.
            ``(2) Amount of payments.--If a State educational agency 
        requires the joint establishment of eligibility under paragraph 
        (1), the total amount of funds made available to the affected 
        local educational agencies shall be equal to the sum of the 
        payments that each such local educational agency would have 
        received under section 611(f) if such agencies were eligible for 
        such payments.
            ``(3) Requirements.--Local educational agencies that 
        establish joint eligibility under this subsection shall--
                    ``(A) adopt policies and procedures that are 
                consistent with the State's policies and procedures 
                under section 612(a); and
                    ``(B) be jointly responsible for implementing 
                programs that receive assistance under this part.
            ``(4) Requirements for educational service agencies.--
                    ``(A) In general.--If an educational service agency 
                is required by State law to carry out programs under 
                this part, the joint responsibilities given to local 
                educational agencies under this subsection shall--
                          ``(i) not apply to the administration and 
                      disbursement of any payments received by that 
                      educational service agency; and
                          ``(ii) be carried out only by that educational 
                      service agency.
                    ``(B) Additional requirement.--Notwithstanding any 
                other provision of this subsection, an educational 
                service agency shall provide for the education of 
                children with disabilities in the least restrictive 
                environment, as required by section 612(a)(5).

    ``(f) Early Intervening Services.--
            ``(1) In general.--A local educational agency may not use 
        more than 15 percent of the amount such agency receives under 
        this part for any fiscal year, less any amount reduced by the 
        agency pursuant to subsection (a)(2)(C), if any, in combination 
        with other amounts (which may include amounts other than 
        education funds), to develop and implement coordinated, early 
        intervening services, which may include interagency financing 
        structures, for students in kindergarten through grade 12 (with 
        a particular emphasis on students in kindergarten through grade 
        3) who have not been identified as needing special education or 
        related services but who need additional academic and behavioral 
        support to succeed in a general education environment.
            ``(2) Activities.--In implementing coordinated, early 
        intervening services under this subsection, a local educational 
        agency may carry out activities that include--
                    ``(A) professional development (which may be 
                provided by entities other than local educational 
                agencies) for teachers and other school staff to enable 
                such personnel to deliver scientifically based academic 
                instruction and behavioral interventions, including 
                scientifically based literacy instruction, and, where 
                appropriate, instruction on the use of adaptive and 
                instructional software; and

[[Page 118 STAT. 2700]]

                    ``(B) providing educational and behavioral 
                evaluations, services, and supports, including 
                scientifically based literacy instruction.
            ``(3) Construction.--Nothing in this subsection shall be 
        construed to limit or create a right to a free appropriate 
        public education under this part.
            ``(4) Reporting.--Each local educational agency that 
        develops and maintains coordinated, early intervening services 
        under this subsection shall annually report to the State 
        educational agency on--
                    ``(A) the number of students served under this 
                subsection; and
                    ``(B) the number of students served under this 
                subsection who subsequently receive special education 
                and related services under this title during the 
                preceding 2-year period.
            ``(5) Coordination with elementary and secondary education 
        act of 1965.--Funds made available to carry out this subsection 
        may be used to carry out coordinated, early intervening services 
        aligned with activities funded by, and carried out under, the 
        Elementary and Secondary Education Act of 1965 if such funds are 
        used to supplement, and not supplant, funds made available under 
        the Elementary and Secondary Education Act of 1965 for the 
        activities and services assisted under this subsection.

    ``(g) Direct Services by the State Educational Agency.--
            ``(1) In general.--A State educational agency shall use the 
        payments that would otherwise have been available to a local 
        educational agency or to a State agency to provide special 
        education and related services directly to children with 
        disabilities residing in the area served by that local 
        educational agency, or for whom that State agency is 
        responsible, if the State educational agency determines that the 
        local educational agency or State agency, as the case may be--
                    ``(A) has not provided the information needed to 
                establish the eligibility of such local educational 
                agency or State agency under this section;
                    ``(B) is unable to establish and maintain programs 
                of free appropriate public education that meet the 
                requirements of subsection (a);
                    ``(C) is unable or unwilling to be consolidated with 
                1 or more local educational agencies in order to 
                establish and maintain such programs; or
                    ``(D) has 1 or more children with disabilities who 
                can best be served by a regional or State program or 
                service delivery system designed to meet the needs of 
                such children.
            ``(2) Manner and location of education and services.--The 
        State educational agency may provide special education and 
        related services under paragraph (1) in such manner and at such 
        locations (including regional or State centers) as the State 
        educational agency considers appropriate. Such education and 
        services shall be provided in accordance with this part.

    ``(h) State Agency Eligibility.--Any State agency that desires to 
receive a subgrant for any fiscal year under section 611(f) shall 
demonstrate to the satisfaction of the State educational agency that--

[[Page 118 STAT. 2701]]

            ``(1) all children with disabilities who are participating 
        in programs and projects funded under this part receive a free 
        appropriate public education, and that those children and their 
        parents are provided all the rights and procedural safeguards 
        described in this part; and
            ``(2) the agency meets such other conditions of this section 
        as the Secretary determines to be appropriate.

    ``(i) Disciplinary Information.--The State may require that a local 
educational agency include in the records of a child with a disability a 
statement of any current or previous disciplinary action that has been 
taken against the child and transmit such statement to the same extent 
that such disciplinary information is included in, and transmitted with, 
the student records of nondisabled children. The statement may include a 
description of any behavior engaged in by the child that required 
disciplinary action, a description of the disciplinary action taken, and 
any other information that is relevant to the safety of the child and 
other individuals involved with the child. If the State adopts such a 
policy, and the child transfers from 1 school to another, the 
transmission of any of the child's records shall include both the 
child's current individualized education program and any such statement 
of current or previous disciplinary action that has been taken against 
the child.
    ``(j) State Agency Flexibility.--
            ``(1) Adjustment to state fiscal effort in certain fiscal 
        years.--For any fiscal year for which the allotment received by 
        a State under section 611 exceeds the amount the State received 
        for the previous fiscal year and if the State in school year 
        2003-2004 or any subsequent school year pays or reimburses all 
        local educational agencies within the State from State revenue 
        100 percent of the non-Federal share of the costs of special 
        education and related services, the State educational agency, 
        notwithstanding paragraphs (17) and (18) of section 612(a) and 
        section 612(b), may reduce the level of expenditures from State 
        sources for the education of children with disabilities by not 
        more than 50 percent of the amount of such excess.
            ``(2) Prohibition.--Notwithstanding paragraph (1), if the 
        Secretary determines that a State educational agency is unable 
        to establish, maintain, or oversee programs of free appropriate 
        public education that meet the requirements of this part, or 
        that the State needs assistance, intervention, or substantial 
        intervention under section 616(d)(2)(A), the Secretary shall 
        prohibit the State educational agency from exercising the 
        authority in paragraph (1).
            ``(3) Education activities.--If a State educational agency 
        exercises the authority under paragraph (1), the agency shall 
        use funds from State sources, in an amount equal to the amount 
        of the reduction under paragraph (1), to support activities 
        authorized under the Elementary and Secondary Education Act of 
        1965 or to support need based student or teacher higher 
        education programs.
            ``(4) Report.--For each fiscal year for which a State 
        educational agency exercises the authority under paragraph (1), 
        the State educational agency shall report to the Secretary the 
        amount of expenditures reduced pursuant to such paragraph

[[Page 118 STAT. 2702]]

        and the activities that were funded pursuant to paragraph (3).
            ``(5) Limitation.--Notwithstanding paragraph (1), a State 
        educational agency may not reduce the level of expenditures 
        described in paragraph (1) if any local educational agency in 
        the State would, as a result of such reduction, receive less 
        than 100 percent of the amount necessary to ensure that all 
        children with disabilities served by the local educational 
        agency receive a free appropriate public education from the 
        combination of Federal funds received under this title and State 
        funds received from the State educational agency.

``SEC. 614. <<NOTE: 20 USC 1414.>> EVALUATIONS, ELIGIBILITY 
            DETERMINATIONS, INDIVIDUALIZED EDUCATION PROGRAMS, AND 
            EDUCATIONAL PLACEMENTS.

    ``(a) Evaluations, Parental Consent, and Reevaluations.--
            ``(1) Initial evaluations.--
                    ``(A) In general.--A State educational agency, other 
                State agency, or local educational agency shall conduct 
                a full and individual initial evaluation in accordance 
                with this paragraph and subsection (b), before the 
                initial provision of special education and related 
                services to a child with a disability under this part.
                    ``(B) Request for initial evaluation.--Consistent 
                with subparagraph (D), either a parent of a child, or a 
                State educational agency, other State agency, or local 
                educational agency may initiate a request for an initial 
                evaluation to determine if the child is a child with a 
                disability.
                    ``(C) Procedures.--
                          ``(i) In general.--Such initial evaluation 
                      shall consist of procedures--
                                    ``(I) <<NOTE: Deadline.>> to 
                                determine whether a child is a child 
                                with a disability (as defined in section 
                                602) within 60 days of receiving 
                                parental consent for the evaluation, or, 
                                if the State establishes a timeframe 
                                within which the evaluation must be 
                                conducted, within such timeframe; and
                                    ``(II) to determine the educational 
                                needs of such child.
                          ``(ii) Exception.--The relevant timeframe in 
                      clause (i)(I) shall not apply to a local 
                      educational agency if--
                                    ``(I) a child enrolls in a school 
                                served by the local educational agency 
                                after the relevant timeframe in clause 
                                (i)(I) has begun and prior to a 
                                determination by the child's previous 
                                local educational agency as to whether 
                                the child is a child with a disability 
                                (as defined in section 602), but only if 
                                the subsequent local educational agency 
                                is making sufficient progress to ensure 
                                a prompt completion of the evaluation, 
                                and the parent and subsequent local 
                                educational agency agree to a specific 
                                time when the evaluation will be 
                                completed; or
                                    ``(II) the parent of a child 
                                repeatedly fails or refuses to produce 
                                the child for the evaluation.
                    ``(D) Parental consent.--
                          ``(i) In general.--

[[Page 118 STAT. 2703]]

                                    ``(I) Consent for initial 
                                evaluation.--The agency proposing to 
                                conduct an initial evaluation to 
                                determine if the child qualifies as a 
                                child with a disability as defined in 
                                section 602 shall obtain informed 
                                consent from the parent of such child 
                                before conducting the evaluation. 
                                Parental consent for evaluation shall 
                                not be construed as consent for 
                                placement for receipt of special 
                                education and related services.
                                    ``(II) Consent for services.--An 
                                agency that is responsible for making a 
                                free appropriate public education 
                                available to a child with a disability 
                                under this part shall seek to obtain 
                                informed consent from the parent of such 
                                child before providing special education 
                                and related services to the child.
                          ``(ii) Absence of consent.--
                                    ``(I) For initial evaluation.--If 
                                the parent of such child does not 
                                provide consent for an initial 
                                evaluation under clause (i)(I), or the 
                                parent fails to respond to a request to 
                                provide the consent, the local 
                                educational agency may pursue the 
                                initial evaluation of the child by 
                                utilizing the procedures described in 
                                section 615, except to the extent 
                                inconsistent with State law relating to 
                                such parental consent.
                                    ``(II) For services.--If the parent 
                                of such child refuses to consent to 
                                services under clause (i)(II), the local 
                                educational agency shall not provide 
                                special education and related services 
                                to the child by utilizing the procedures 
                                described in section 615.
                                    ``(III) Effect on agency 
                                obligations.--If the parent of such 
                                child refuses to consent to the receipt 
                                of special education and related 
                                services, or the parent fails to respond 
                                to a request to provide such consent--
                                            ``(aa) the local educational 
                                        agency shall not be considered 
                                        to be in violation of the 
                                        requirement to make available a 
                                        free appropriate public 
                                        education to the child for the 
                                        failure to provide such child 
                                        with the special education and 
                                        related services for which the 
                                        local educational agency 
                                        requests such consent; and
                                            ``(bb) the local educational 
                                        agency shall not be required to 
                                        convene an IEP meeting or 
                                        develop an IEP under this 
                                        section for the child for the 
                                        special education and related 
                                        services for which the local 
                                        educational agency requests such 
                                        consent.
                          ``(iii) Consent for wards of the state.--
                                    ``(I) In general.--If the child is a 
                                ward of the State and is not residing 
                                with the child's parent, the agency 
                                shall make reasonable efforts to obtain 
                                the informed consent from the parent (as 
                                defined in section 602) of the child for 
                                an

[[Page 118 STAT. 2704]]

                                initial evaluation to determine whether 
                                the child is a child with a disability.
                                    ``(II) Exception.--The agency shall 
                                not be required to obtain informed 
                                consent from the parent of a child for 
                                an initial evaluation to determine 
                                whether the child is a child with a 
                                disability if--
                                            ``(aa) despite reasonable 
                                        efforts to do so, the agency 
                                        cannot discover the whereabouts 
                                        of the parent of the child;
                                            ``(bb) the rights of the 
                                        parents of the child have been 
                                        terminated in accordance with 
                                        State law; or
                                            ``(cc) the rights of the 
                                        parent to make educational 
                                        decisions have been subrogated 
                                        by a judge in accordance with 
                                        State law and consent for an 
                                        initial evaluation has been 
                                        given by an individual appointed 
                                        by the judge to represent the 
                                        child.
                    ``(E) Rule of construction.--The screening of a 
                student by a teacher or specialist to determine 
                appropriate instructional strategies for curriculum 
                implementation shall not be considered to be an 
                evaluation for eligibility for special education and 
                related services.
            ``(2) Reevaluations.--
                    ``(A) In general.--A local educational agency shall 
                ensure that a reevaluation of each child with a 
                disability is conducted in accordance with subsections 
                (b) and (c)--
                          ``(i) if the local educational agency 
                      determines that the educational or related 
                      services needs, including improved academic 
                      achievement and functional performance, of the 
                      child warrant a reevaluation; or
                          ``(ii) if the child's parents or teacher 
                      requests a reevaluation.
                    ``(B) Limitation.--A reevaluation conducted under 
                subparagraph (A) shall occur--
                          ``(i) not more frequently than once a year, 
                      unless the parent and the local educational agency 
                      agree otherwise; and
                          ``(ii) at least once every 3 years, unless the 
                      parent and the local educational agency agree that 
                      a reevaluation is unnecessary.

    ``(b) Evaluation Procedures.--
            ``(1) Notice.--The local educational agency shall provide 
        notice to the parents of a child with a disability, in 
        accordance with subsections (b)(3), (b)(4), and (c) of section 
        615, that describes any evaluation procedures such agency 
        proposes to conduct.
            ``(2) Conduct of evaluation.--In conducting the evaluation, 
        the local educational agency shall--
                    ``(A) use a variety of assessment tools and 
                strategies to gather relevant functional, developmental, 
                and academic information, including information provided 
                by the parent, that may assist in determining--
                          ``(i) whether the child is a child with a 
                      disability; and

[[Page 118 STAT. 2705]]

                          ``(ii) the content of the child's 
                      individualized education program, including 
                      information related to enabling the child to be 
                      involved in and progress in the general education 
                      curriculum, or, for preschool children, to 
                      participate in appropriate activities;
                    ``(B) not use any single measure or assessment as 
                the sole criterion for determining whether a child is a 
                child with a disability or determining an appropriate 
                educational program for the child; and
                    ``(C) use technically sound instruments that may 
                assess the relative contribution of cognitive and 
                behavioral factors, in addition to physical or 
                developmental factors.
            ``(3) Additional requirements.--Each local educational 
        agency shall ensure that--
                    ``(A) assessments and other evaluation materials 
                used to assess a child under this section--
                          ``(i) are selected and administered so as not 
                      to be discriminatory on a racial or cultural 
                      basis;
                          ``(ii) are provided and administered in the 
                      language and form most likely to yield accurate 
                      information on what the child knows and can do 
                      academically, developmentally, and functionally, 
                      unless it is not feasible to so provide or 
                      administer;
                          ``(iii) are used for purposes for which the 
                      assessments or measures are valid and reliable;
                          ``(iv) are administered by trained and 
                      knowledgeable personnel; and
                          ``(v) are administered in accordance with any 
                      instructions provided by the producer of such 
                      assessments;
                    ``(B) the child is assessed in all areas of 
                suspected disability;
                    ``(C) assessment tools and strategies that provide 
                relevant information that directly assists persons in 
                determining the educational needs of the child are 
                provided; and
                    ``(D) assessments of children with disabilities who 
                transfer from 1 school district to another school 
                district in the same academic year are coordinated with 
                such children's prior and subsequent schools, as 
                necessary and as expeditiously as possible, to ensure 
                prompt completion of full evaluations.
            ``(4) Determination of eligibility and educational need.--
        Upon completion of the administration of assessments and other 
        evaluation measures--
                    ``(A) the determination of whether the child is a 
                child with a disability as defined in section 602(3) and 
                the educational needs of the child shall be made by a 
                team of qualified professionals and the parent of the 
                child in accordance with paragraph (5); and
                    ``(B) a copy of the evaluation report and the 
                documentation of determination of eligibility shall be 
                given to the parent.
            ``(5) Special rule for eligibility determination.--In making 
        a determination of eligibility under paragraph (4)(A), a child 
        shall not be determined to be a child with a disability if the 
        determinant factor for such determination is--

[[Page 118 STAT. 2706]]

                    ``(A) lack of appropriate instruction in reading, 
                including in the essential components of reading 
                instruction (as defined in section 1208(3) of the 
                Elementary and Secondary Education Act of 1965);
                    ``(B) lack of instruction in math; or
                    ``(C) limited English proficiency.
            ``(6) Specific learning disabilities.--
                    ``(A) In general.--Notwithstanding section 607(b), 
                when determining whether a child has a specific learning 
                disability as defined in section 602, a local 
                educational agency shall not be required to take into 
                consideration whether a child has a severe discrepancy 
                between achievement and intellectual ability in oral 
                expression, listening comprehension, written expression, 
                basic reading skill, reading comprehension, mathematical 
                calculation, or mathematical reasoning.
                    ``(B) Additional authority.--In determining whether 
                a child has a specific learning disability, a local 
                educational agency may use a process that determines if 
                the child responds to scientific, research-based 
                intervention as a part of the evaluation procedures 
                described in paragraphs (2) and (3).

    ``(c) Additional Requirements For Evaluation and Reevaluations.--
            ``(1) Review of existing evaluation data.--As part of an 
        initial evaluation (if appropriate) and as part of any 
        reevaluation under this section, the IEP Team and other 
        qualified professionals, as appropriate, shall--
                    ``(A) review existing evaluation data on the child, 
                including--
                          ``(i) evaluations and information provided by 
                      the parents of the child;
                          ``(ii) current classroom-based, local, or 
                      State assessments, and classroom-based 
                      observations; and
                          ``(iii) observations by teachers and related 
                      services providers; and
                    ``(B) on the basis of that review, and input from 
                the child's parents, identify what additional data, if 
                any, are needed to determine--
                          ``(i) whether the child is a child with a 
                      disability as defined in section 602(3), and the 
                      educational needs of the child, or, in case of a 
                      reevaluation of a child, whether the child 
                      continues to have such a disability and such 
                      educational needs;
                          ``(ii) the present levels of academic 
                      achievement and related developmental needs of the 
                      child;
                          ``(iii) whether the child needs special 
                      education and related services, or in the case of 
                      a reevaluation of a child, whether the child 
                      continues to need special education and related 
                      services; and
                          ``(iv) whether any additions or modifications 
                      to the special education and related services are 
                      needed to enable the child to meet the measurable 
                      annual goals set out in the individualized 
                      education program of the child and to participate, 
                      as appropriate, in the general education 
                      curriculum.

[[Page 118 STAT. 2707]]

            ``(2) Source of data.--The local educational agency shall 
        administer such assessments and other evaluation measures as may 
        be needed to produce the data identified by the IEP Team under 
        paragraph (1)(B).
            ``(3) Parental consent.--Each local educational agency shall 
        obtain informed parental consent, in accordance with subsection 
        (a)(1)(D), prior to conducting any reevaluation of a child with 
        a disability, except that such informed parental consent need 
        not be obtained if the local educational agency can demonstrate 
        that it had taken reasonable measures to obtain such consent and 
        the child's parent has failed to respond.
            ``(4) Requirements if additional data are not needed.--If 
        the IEP Team and other qualified professionals, as appropriate, 
        determine that no additional data are needed to determine 
        whether the child continues to be a child with a disability and 
        to determine the child's educational needs, the local 
        educational agency--
                    ``(A) shall notify the child's parents of--
                          ``(i) that determination and the reasons for 
                      the determination; and
                          ``(ii) the right of such parents to request an 
                      assessment to determine whether the child 
                      continues to be a child with a disability and to 
                      determine the child's educational needs; and
                    ``(B) shall not be required to conduct such an 
                assessment unless requested to by the child's parents.
            ``(5) Evaluations before change in eligibility.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a local educational agency shall 
                evaluate a child with a disability in accordance with 
                this section before determining that the child is no 
                longer a child with a disability.
                    ``(B) Exception.--
                          ``(i) In general.--The evaluation described in 
                      subparagraph (A) shall not be required before the 
                      termination of a child's eligibility under this 
                      part due to graduation from secondary school with 
                      a regular diploma, or due to exceeding the age 
                      eligibility for a free appropriate public 
                      education under State law.
                          ``(ii) Summary of performance.--For a child 
                      whose eligibility under this part terminates under 
                      circumstances described in clause (i), a local 
                      educational agency shall provide the child with a 
                      summary of the child's academic achievement and 
                      functional performance, which shall include 
                      recommendations on how to assist the child in 
                      meeting the child's postsecondary goals.

    ``(d) Individualized Education Programs.--
            ``(1) Definitions.--In this title:
                    ``(A) Individualized education program.--
                          ``(i) In general.--The term `individualized 
                      education program' or `IEP' means a written 
                      statement for each child with a disability that is 
                      developed, reviewed, and revised in accordance 
                      with this section and that includes--
                                    ``(I) a statement of the child's 
                                present levels of academic achievement 
                                and functional performance, including--

[[Page 118 STAT. 2708]]

                                            ``(aa) how the child's 
                                        disability affects the child's 
                                        involvement and progress in the 
                                        general education curriculum;
                                            ``(bb) for preschool 
                                        children, as appropriate, how 
                                        the disability affects the 
                                        child's participation in 
                                        appropriate activities; and
                                            ``(cc) for children with 
                                        disabilities who take alternate 
                                        assessments aligned to alternate 
                                        achievement standards, a 
                                        description of benchmarks or 
                                        short-term objectives;
                                    ``(II) a statement of measurable 
                                annual goals, including academic and 
                                functional goals, designed to--
                                            ``(aa) meet the child's 
                                        needs that result from the 
                                        child's disability to enable the 
                                        child to be involved in and make 
                                        progress in the general 
                                        education curriculum; and
                                            ``(bb) meet each of the 
                                        child's other educational needs 
                                        that result from the child's 
                                        disability;
                                    ``(III) a description of how the 
                                child's progress toward meeting the 
                                annual goals described in subclause (II) 
                                will be measured and when periodic 
                                reports on the progress the child is 
                                making toward meeting the annual goals 
                                (such as through the use of quarterly or 
                                other periodic reports, concurrent with 
                                the issuance of report cards) will be 
                                provided;
                                    ``(IV) a statement of the special 
                                education and related services and 
                                supplementary aids and services, based 
                                on peer-reviewed research to the extent 
                                practicable, to be provided to the 
                                child, or on behalf of the child, and a 
                                statement of the program modifications 
                                or supports for school personnel that 
                                will be provided for the child--
                                            ``(aa) to advance 
                                        appropriately toward attaining 
                                        the annual goals;
                                            ``(bb) to be involved in and 
                                        make progress in the general 
                                        education curriculum in 
                                        accordance with subclause (I) 
                                        and to participate in 
                                        extracurricular and other 
                                        nonacademic activities; and
                                            ``(cc) to be educated and 
                                        participate with other children 
                                        with disabilities and 
                                        nondisabled children in the 
                                        activities described in this 
                                        subparagraph;
                                    ``(V) an explanation of the extent, 
                                if any, to which the child will not 
                                participate with nondisabled children in 
                                the regular class and in the activities 
                                described in subclause (IV)(cc);
                                    ``(VI)(aa) a statement of any 
                                individual appropriate accommodations 
                                that are necessary to measure the 
                                academic achievement and functional 
                                performance of the child on State and 
                                districtwide assessments consistent with 
                                section 612(a)(16)(A); and

[[Page 118 STAT. 2709]]

                                    ``(bb) if the IEP Team determines 
                                that the child shall take an alternate 
                                assessment on a particular State or 
                                districtwide assessment of student 
                                achievement, a statement of why--
                                            ``(AA) the child cannot 
                                        participate in the regular 
                                        assessment; and
                                            ``(BB) the particular 
                                        alternate assessment selected is 
                                        appropriate for the child;
                                    ``(VII) the projected date for the 
                                beginning of the services and 
                                modifications described in subclause 
                                (IV), and the anticipated frequency, 
                                location, and duration of those services 
                                and modifications; and
                                    ``(VIII) beginning not later than 
                                the first IEP to be in effect when the 
                                child is 16, and updated annually 
                                thereafter--
                                            ``(aa) appropriate 
                                        measurable postsecondary goals 
                                        based upon age appropriate 
                                        transition assessments related 
                                        to training, education, 
                                        employment, and, where 
                                        appropriate, independent living 
                                        skills;
                                            ``(bb) the transition 
                                        services (including courses of 
                                        study) needed to assist the 
                                        child in reaching those goals; 
                                        and
                                            ``(cc) beginning not later 
                                        than 1 year before the child 
                                        reaches the age of majority 
                                        under State law, a statement 
                                        that the child has been informed 
                                        of the child's rights under this 
                                        title, if any, that will 
                                        transfer to the child on 
                                        reaching the age of majority 
                                        under section 615(m).
                          ``(ii) Rule of construction.--Nothing in this 
                      section shall be construed to require--
                                    ``(I) that additional information be 
                                included in a child's IEP beyond what is 
                                explicitly required in this section; and
                                    ``(II) the IEP Team to include 
                                information under 1 component of a 
                                child's IEP that is already contained 
                                under another component of such IEP.
                    ``(B) Individualized education program team.--The 
                term `individualized education program team' or `IEP 
                Team' means a group of individuals composed of--
                          ``(i) the parents of a child with a 
                      disability;
                          ``(ii) not less than 1 regular education 
                      teacher of such child (if the child is, or may be, 
                      participating in the regular education 
                      environment);
                          ``(iii) not less than 1 special education 
                      teacher, or where appropriate, not less than 1 
                      special education provider of such child;
                          ``(iv) a representative of the local 
                      educational agency who--
                                    ``(I) is qualified to provide, or 
                                supervise the provision of, specially 
                                designed instruction to meet the unique 
                                needs of children with disabilities;
                                    ``(II) is knowledgeable about the 
                                general education curriculum; and

[[Page 118 STAT. 2710]]

                                    ``(III) is knowledgeable about the 
                                availability of resources of the local 
                                educational agency;
                          ``(v) an individual who can interpret the 
                      instructional implications of evaluation results, 
                      who may be a member of the team described in 
                      clauses (ii) through (vi);
                          ``(vi) at the discretion of the parent or the 
                      agency, other individuals who have knowledge or 
                      special expertise regarding the child, including 
                      related services personnel as appropriate; and
                          ``(vii) whenever appropriate, the child with a 
                      disability.
                    ``(C) IEP team attendance.--
                          ``(i) Attendance not necessary.--A member of 
                      the IEP Team shall not be required to attend an 
                      IEP meeting, in whole or in part, if the parent of 
                      a child with a disability and the local 
                      educational agency agree that the attendance of 
                      such member is not necessary because the member's 
                      area of the curriculum or related services is not 
                      being modified or discussed in the meeting.
                          ``(ii) Excusal.--A member of the IEP Team may 
                      be excused from attending an IEP meeting, in whole 
                      or in part, when the meeting involves a 
                      modification to or discussion of the member's area 
                      of the curriculum or related services, if--
                                    ``(I) the parent and the local 
                                educational agency consent to the 
                                excusal; and
                                    ``(II) the member submits, in 
                                writing to the parent and the IEP Team, 
                                input into the development of the IEP 
                                prior to the meeting.
                          ``(iii) Written agreement and consent 
                      required.--A parent's agreement under clause (i) 
                      and consent under clause (ii) shall be in writing.
                    ``(D) IEP team transition.--In the case of a child 
                who was previously served under part C, an invitation to 
                the initial IEP meeting shall, at the request of the 
                parent, be sent to the part C service coordinator or 
                other representatives of the part C system to assist 
                with the smooth transition of services.
            ``(2) Requirement that program be in effect.--
                    ``(A) In general.--At the beginning of each school 
                year, each local educational agency, State educational 
                agency, or other State agency, as the case may be, shall 
                have in effect, for each child with a disability in the 
                agency's jurisdiction, an individualized education 
                program, as defined in paragraph (1)(A).
                    ``(B) Program for child aged 3 through 5.--In the 
                case of a child with a disability aged 3 through 5 (or, 
                at the discretion of the State educational agency, a 2-
                year-old child with a disability who will turn age 3 
                during the school year), the IEP Team shall consider the 
                individualized family service plan that contains the 
                material described in section 636, and that is developed 
                in accordance with this section, and the individualized 
                family service plan may serve as the IEP of the child if 
                using that plan as the IEP is--

[[Page 118 STAT. 2711]]

                          ``(i) consistent with State policy; and
                          ``(ii) agreed to by the agency and the child's 
                      parents.
                    ``(C) Program for children who transfer school 
                districts.--
                          ``(i) In general.--
                                    ``(I) Transfer within the same 
                                state.--In the case of a child with a 
                                disability who transfers school 
                                districts within the same academic year, 
                                who enrolls in a new school, and who had 
                                an IEP that was in effect in the same 
                                State, the local educational agency 
                                shall provide such child with a free 
                                appropriate public education, including 
                                services comparable to those described 
                                in the previously held IEP, in 
                                consultation with the parents until such 
                                time as the local educational agency 
                                adopts the previously held IEP or 
                                develops, adopts, and implements a new 
                                IEP that is consistent with Federal and 
                                State law.
                                    ``(II) Transfer outside state.--In 
                                the case of a child with a disability 
                                who transfers school districts within 
                                the same academic year, who enrolls in a 
                                new school, and who had an IEP that was 
                                in effect in another State, the local 
                                educational agency shall provide such 
                                child with a free appropriate public 
                                education, including services comparable 
                                to those described in the previously 
                                held IEP, in consultation with the 
                                parents until such time as the local 
                                educational agency conducts an 
                                evaluation pursuant to subsection 
                                (a)(1), if determined to be necessary by 
                                such agency, and develops a new IEP, if 
                                appropriate, that is consistent with 
                                Federal and State law.
                          ``(ii) Transmittal of records.--To facilitate 
                      the transition for a child described in clause 
                      (i)--
                                    ``(I) the new school in which the 
                                child enrolls shall take reasonable 
                                steps to promptly obtain the child's 
                                records, including the IEP and 
                                supporting documents and any other 
                                records relating to the provision of 
                                special education or related services to 
                                the child, from the previous school in 
                                which the child was enrolled, pursuant 
                                to section 99.31(a)(2) of title 34, Code 
                                of Federal Regulations; and
                                    ``(II) the previous school in which 
                                the child was enrolled shall take 
                                reasonable steps to promptly respond to 
                                such request from the new school.
            ``(3) Development of iep.--
                    ``(A) In general.--In developing each child's IEP, 
                the IEP Team, subject to subparagraph (C), shall 
                consider--
                          ``(i) the strengths of the child;
                          ``(ii) the concerns of the parents for 
                      enhancing the education of their child;
                          ``(iii) the results of the initial evaluation 
                      or most recent evaluation of the child; and

[[Page 118 STAT. 2712]]

                          ``(iv) the academic, developmental, and 
                      functional needs of the child.
                    ``(B) Consideration of special factors.--The IEP 
                Team shall--
                          ``(i) in the case of a child whose behavior 
                      impedes the child's learning or that of others, 
                      consider the use of positive behavioral 
                      interventions and supports, and other strategies, 
                      to address that behavior;
                          ``(ii) in the case of a child with limited 
                      English proficiency, consider the language needs 
                      of the child as such needs relate to the child's 
                      IEP;
                          ``(iii) in the case of a child who is blind or 
                      visually impaired, provide for instruction in 
                      Braille and the use of Braille unless the IEP Team 
                      determines, after an evaluation of the child's 
                      reading and writing skills, needs, and appropriate 
                      reading and writing media (including an evaluation 
                      of the child's future needs for instruction in 
                      Braille or the use of Braille), that instruction 
                      in Braille or the use of Braille is not 
                      appropriate for the child;
                          ``(iv) consider the communication needs of the 
                      child, and in the case of a child who is deaf or 
                      hard of hearing, consider the child's language and 
                      communication needs, opportunities for direct 
                      communications with peers and professional 
                      personnel in the child's language and 
                      communication mode, academic level, and full range 
                      of needs, including opportunities for direct 
                      instruction in the child's language and 
                      communication mode; and
                          ``(v) consider whether the child needs 
                      assistive technology devices and services.
                    ``(C) Requirement with respect to regular education 
                teacher.--A regular education teacher of the child, as a 
                member of the IEP Team, shall, to the extent 
                appropriate, participate in the development of the IEP 
                of the child, including the determination of appropriate 
                positive behavioral interventions and supports, and 
                other strategies, and the determination of supplementary 
                aids and services, program modifications, and support 
                for school personnel consistent with paragraph 
                (1)(A)(i)(IV).
                    ``(D) Agreement.--In making changes to a child's IEP 
                after the annual IEP meeting for a school year, the 
                parent of a child with a disability and the local 
                educational agency may agree not to convene an IEP 
                meeting for the purposes of making such changes, and 
                instead may develop a written document to amend or 
                modify the child's current IEP.
                    ``(E) Consolidation of iep team meetings.--To the 
                extent possible, the local educational agency shall 
                encourage the consolidation of reevaluation meetings for 
                the child and other IEP Team meetings for the child.
                    ``(F) Amendments.--Changes to the IEP may be made 
                either by the entire IEP Team or, as provided in 
                subparagraph (D), by amending the IEP rather than by 
                redrafting the entire IEP. Upon request, a parent shall 
                be provided with a revised copy of the IEP with the 
                amendments incorporated.
            ``(4) Review and revision of iep.--

[[Page 118 STAT. 2713]]

                    ``(A) In general.--The local educational agency 
                shall ensure that, subject to subparagraph (B), the IEP 
                Team--
                          ``(i) reviews the child's IEP periodically, 
                      but not less frequently than annually, to 
                      determine whether the annual goals for the child 
                      are being achieved; and
                          ``(ii) revises the IEP as appropriate to 
                      address--
                                    ``(I) any lack of expected progress 
                                toward the annual goals and in the 
                                general education curriculum, where 
                                appropriate;
                                    ``(II) the results of any 
                                reevaluation conducted under this 
                                section;
                                    ``(III) information about the child 
                                provided to, or by, the parents, as 
                                described in subsection (c)(1)(B);
                                    ``(IV) the child's anticipated 
                                needs; or
                                    ``(V) other matters.
                    ``(B) Requirement with respect to regular education 
                teacher.--A regular education teacher of the child, as a 
                member of the IEP Team, shall, consistent with paragraph 
                (1)(C), participate in the review and revision of the 
                IEP of the child.
            ``(5) Multi-year iep demonstration.--
                    ``(A) Pilot program.--
                          ``(i) Purpose.--The purpose of this paragraph 
                      is to provide an opportunity for States to allow 
                      parents and local educational agencies the 
                      opportunity for long-term planning by offering the 
                      option of developing a comprehensive multi-year 
                      IEP, not to exceed 3 years, that is designed to 
                      coincide with the natural transition points for 
                      the child.
                          ``(ii) Authorization.--In order to carry out 
                      the purpose of this paragraph, the Secretary is 
                      authorized to approve not more than 15 proposals 
                      from States to carry out the activity described in 
                      clause (i).
                          ``(iii) Proposal.--
                                    ``(I) In general.--A State desiring 
                                to participate in the program under this 
                                paragraph shall submit a proposal to the 
                                Secretary at such time and in such 
                                manner as the Secretary may reasonably 
                                require.
                                    ``(II) Content.--The proposal shall 
                                include--
                                            ``(aa) assurances that the 
                                        development of a multi-year IEP 
                                        under this paragraph is optional 
                                        for parents;
                                            ``(bb) assurances that the 
                                        parent is required to provide 
                                        informed consent before a 
                                        comprehensive multi-year IEP is 
                                        developed;
                                            ``(cc) a list of required 
                                        elements for each multi-year 
                                        IEP, including--``(AA) 
                                        measurable goals pursuant to 
                                        paragraph (1)(A)(i)(II), 
                                        coinciding with natural 
                                        transition points for the child, 
                                        that will enable the child to be 
                                        involved in and make progress in 
                                        the general education curriculum 
                                        and that will meet the child's 
                                        other needs that result from the 
                                        child's disability; and

[[Page 118 STAT. 2714]]

                                    ``(BB) measurable annual goals for 
                                determining progress toward meeting the 
                                goals described in subitem (AA); and
                                            ``(dd) a description of the 
                                        process for the review and 
                                        revision of each multi-year IEP, 
                                        including--
                                    ``(AA) a review by the IEP Team of 
                                the child's multi-year IEP at each of 
                                the child's natural transition points;
                                    ``(BB) in years other than a child's 
                                natural transition points, an annual 
                                review of the child's IEP to determine 
                                the child's current levels of progress 
                                and whether the annual goals for the 
                                child are being achieved, and a 
                                requirement to amend the IEP, as 
                                appropriate, to enable the child to 
                                continue to meet the measurable goals 
                                set out in the IEP;
                                    ``(CC) if the IEP Team determines on 
                                the basis of a review that the child is 
                                not making sufficient progress toward 
                                the goals described in the multi-year 
                                IEP, a requirement that the local 
                                educational agency shall ensure that the 
                                IEP Team carries out a more thorough 
                                review of the IEP in accordance with 
                                paragraph (4) within 30 calendar days; 
                                and
                                    ``(DD) at the request of the parent, 
                                a requirement that the IEP Team shall 
                                conduct a review of the child's multi-
                                year IEP rather than or subsequent to an 
                                annual review.
                    ``(B) Report.--Beginning 2 years after the date of 
                enactment of the Individuals with Disabilities Education 
                Improvement Act of 2004, the Secretary shall submit an 
                annual report to the Committee on Education and the 
                Workforce of the House of Representatives and the 
                Committee on Health, Education, Labor, and Pensions of 
                the Senate regarding the effectiveness of the program 
                under this paragraph and any specific recommendations 
                for broader implementation of such program, including--
                          ``(i) reducing--
                                    ``(I) the paperwork burden on 
                                teachers, principals, administrators, 
                                and related service providers; and
                                    ``(II) noninstructional time spent 
                                by teachers in complying with this part;
                          ``(ii) enhancing longer-term educational 
                      planning;
                          ``(iii) improving positive outcomes for 
                      children with disabilities;
                          ``(iv) promoting collaboration between IEP 
                      Team members; and
                          ``(v) ensuring satisfaction of family members.
                    ``(C) Definition.--In this paragraph, the term 
                `natural transition points' means those periods that are 
                close in time to the transition of a child with a 
                disability from preschool to elementary grades, from 
                elementary grades

[[Page 118 STAT. 2715]]

                to middle or junior high school grades, from middle or 
                junior high school grades to secondary school grades, 
                and from secondary school grades to post-secondary 
                activities, but in no case a period longer than 3 years.
            ``(6) Failure to meet transition objectives.--If a 
        participating agency, other than the local educational agency, 
        fails to provide the transition services described in the IEP in 
        accordance with paragraph (1)(A)(i)(VIII), the local educational 
        agency shall reconvene the IEP Team to identify alternative 
        strategies to meet the transition objectives for the child set 
        out in the IEP.
            ``(7) Children with disabilities in adult prisons.--
                    ``(A) In general.--The following requirements shall 
                not apply to children with disabilities who are 
                convicted as adults under State law and incarcerated in 
                adult prisons:
                          ``(i) The requirements contained in section 
                      612(a)(16) and paragraph (1)(A)(i)(VI) (relating 
                      to participation of children with disabilities in 
                      general assessments).
                          ``(ii) The requirements of items (aa) and (bb) 
                      of paragraph (1)(A)(i)(VIII) (relating to 
                      transition planning and transition services), do 
                      not apply with respect to such children whose 
                      eligibility under this part will end, because of 
                      such children's age, before such children will be 
                      released from prison.
                    ``(B) Additional requirement.--If a child with a 
                disability is convicted as an adult under State law and 
                incarcerated in an adult prison, the child's IEP Team 
                may modify the child's IEP or placement notwithstanding 
                the requirements of sections 612(a)(5)(A) and paragraph 
                (1)(A) if the State has demonstrated a bona fide 
                security or compelling penological interest that cannot 
                otherwise be accommodated.

    ``(e) Educational Placements.--Each local educational agency or 
State educational agency shall ensure that the parents of each child 
with a disability are members of any group that makes decisions on the 
educational placement of their child.
    ``(f) Alternative Means of Meeting Participation.--When conducting 
IEP team meetings and placement meetings pursuant to this section, 
section 615(e), and section 615(f)(1)(B), and carrying out 
administrative matters under section 615 (such as scheduling, exchange 
of witness lists, and status conferences), the parent of a child with a 
disability and a local educational agency may agree to use alternative 
means of meeting participation, such as video conferences and conference 
calls.

``SEC. 615. <<NOTE: 20 USC 1415.>> PROCEDURAL SAFEGUARDS.

    ``(a) Establishment of Procedures.--Any State educational agency, 
State agency, or local educational agency that receives assistance under 
this part shall establish and maintain procedures in accordance with 
this section to ensure that children with disabilities and their parents 
are guaranteed procedural safeguards with respect to the provision of a 
free appropriate public education by such agencies.
    ``(b) Types of Procedures.--The procedures required by this section 
shall include the following:

[[Page 118 STAT. 2716]]

            ``(1) An opportunity for the parents of a child with a 
        disability to examine all records relating to such child and to 
        participate in meetings with respect to the identification, 
        evaluation, and educational placement of the child, and the 
        provision of a free appropriate public education to such child, 
        and to obtain an independent educational evaluation of the 
        child.
            ``(2)(A) Procedures to protect the rights of the child 
        whenever the parents of the child are not known, the agency 
        cannot, after reasonable efforts, locate the parents, or the 
        child is a ward of the State, including the assignment of an 
        individual to act as a surrogate for the parents, which 
        surrogate shall not be an employee of the State educational 
        agency, the local educational agency, or any other agency that 
        is involved in the education or care of the child. In the case 
        of--
                    ``(i) a child who is a ward of the State, such 
                surrogate may alternatively be appointed by the judge 
                overseeing the child's care provided that the surrogate 
                meets the requirements of this paragraph; and
                    ``(ii) an unaccompanied homeless youth as defined in 
                section 725(6) of the McKinney-Vento Homeless Assistance 
                Act (42 U.S.C. 11434a(6)), the local educational agency 
                shall appoint a surrogate in accordance with this 
                paragraph.
            ``(B) The State shall make reasonable efforts to ensure the 
        assignment of a surrogate not more than 30 days after there is a 
        determination by the agency that the child needs a surrogate.
            ``(3) Written prior notice to the parents of the child, in 
        accordance with subsection (c)(1), whenever the local 
        educational agency--
                    ``(A) proposes to initiate or change; or
                    ``(B) refuses to initiate or change,
        the identification, evaluation, or educational placement of the 
        child, or the provision of a free appropriate public education 
        to the child.
            ``(4) Procedures designed to ensure that the notice required 
        by paragraph (3) is in the native language of the parents, 
        unless it clearly is not feasible to do so.
            ``(5) An opportunity for mediation, in accordance with 
        subsection (e).
            ``(6) An opportunity for any party to present a complaint--
                    ``(A) with respect to any matter relating to the 
                identification, evaluation, or educational placement of 
                the child, or the provision of a free appropriate public 
                education to such child; and
                    ``(B) <<NOTE: Applicability.>> which sets forth an 
                alleged violation that occurred not more than 2 years 
                before the date the parent or public agency knew or 
                should have known about the alleged action that forms 
                the basis of the complaint, or, if the State has an 
                explicit time limitation for presenting such a complaint 
                under this part, in such time as the State law allows, 
                except that the exceptions to the timeline described in 
                subsection (f)(3)(D) shall apply to the timeline 
                described in this subparagraph.
            ``(7)(A) Procedures that require either party, or the 
        attorney representing a party, to provide due process complaint 
        notice

[[Page 118 STAT. 2717]]

        in accordance with subsection (c)(2) (which shall remain 
        confidential)--
                    ``(i) to the other party, in the complaint filed 
                under paragraph (6), and forward a copy of such notice 
                to the State educational agency; and
                    ``(ii) that shall include--
                          ``(I) the name of the child, the address of 
                      the residence of the child (or available contact 
                      information in the case of a homeless child), and 
                      the name of the school the child is attending;
                          ``(II) in the case of a homeless child or 
                      youth (within the meaning of section 725(2) of the 
                      McKinney-Vento Homeless Assistance Act (42 U.S.C. 
                      11434a(2)), available contact information for the 
                      child and the name of the school the child is 
                      attending;
                          ``(III) a description of the nature of the 
                      problem of the child relating to such proposed 
                      initiation or change, including facts relating to 
                      such problem; and
                          ``(IV) a proposed resolution of the problem to 
                      the extent known and available to the party at the 
                      time.
            ``(B) A requirement that a party may not have a due process 
        hearing until the party, or the attorney representing the party, 
        files a notice that meets the requirements of subparagraph 
        (A)(ii).
            ``(8) Procedures that require the State educational agency 
        to develop a model form to assist parents in filing a complaint 
        and due process complaint notice in accordance with paragraphs 
        (6) and (7), respectively.

    ``(c) Notification Requirements.--
            ``(1) Content of prior written notice.--The notice required 
        by subsection (b)(3) shall include--
                    ``(A) a description of the action proposed or 
                refused by the agency;
                    ``(B) an explanation of why the agency proposes or 
                refuses to take the action and a description of each 
                evaluation procedure, assessment, record, or report the 
                agency used as a basis for the proposed or refused 
                action;
                    ``(C) a statement that the parents of a child with a 
                disability have protection under the procedural 
                safeguards of this part and, if this notice is not an 
                initial referral for evaluation, the means by which a 
                copy of a description of the procedural safeguards can 
                be obtained;
                    ``(D) sources for parents to contact to obtain 
                assistance in understanding the provisions of this part;
                    ``(E) a description of other options considered by 
                the IEP Team and the reason why those options were 
                rejected; and
                    ``(F) a description of the factors that are relevant 
                to the agency's proposal or refusal.
            ``(2) Due process complaint notice.--
                    ``(A) Complaint.--The due process complaint notice 
                required under subsection (b)(7)(A) shall be deemed to 
                be sufficient unless the party receiving the notice 
                notifies the hearing officer and the other party in 
                writing that the receiving party believes the notice has 
                not met the requirements of subsection (b)(7)(A).
                    ``(B) Response to complaint.--

[[Page 118 STAT. 2718]]

                          ``(i) Local educational agency response.--
                                    ``(I) <<NOTE: Deadline.>> In 
                                general.--If the local educational 
                                agency has not sent a prior written 
                                notice to the parent regarding the 
                                subject matter contained in the parent's 
                                due process complaint notice, such local 
                                educational agency shall, within 10 days 
                                of receiving the complaint, send to the 
                                parent a response that shall include--
                                            ``(aa) an explanation of why 
                                        the agency proposed or refused 
                                        to take the action raised in the 
                                        complaint;
                                            ``(bb) a description of 
                                        other options that the IEP Team 
                                        considered and the reasons why 
                                        those options were rejected;
                                            ``(cc) a description of each 
                                        evaluation procedure, 
                                        assessment, record, or report 
                                        the agency used as the basis for 
                                        the proposed or refused action; 
                                        and
                                            ``(dd) a description of the 
                                        factors that are relevant to the 
                                        agency's proposal or refusal.
                                    ``(II) Sufficiency.--A response 
                                filed by a local educational agency 
                                pursuant to subclause (I) shall not be 
                                construed to preclude such local 
                                educational agency from asserting that 
                                the parent's due process complaint 
                                notice was insufficient where 
                                appropriate.
                          ``(ii) <<NOTE: Deadline.>> Other party 
                      response.--Except as provided in clause (i), the 
                      non-complaining party shall, within 10 days of 
                      receiving the complaint, send to the complaint a 
                      response that specifically addresses the issues 
                      raised in the complaint.
                    ``(C) <<NOTE: Deadline.>> Timing.--The party 
                providing a hearing officer notification under 
                subparagraph (A) shall provide the notification within 
                15 days of receiving the complaint.
                    ``(D) <<NOTE: Deadline.>> Determination.--Within 5 
                days of receipt of the notification provided under 
                subparagraph (C), the hearing officer shall make a 
                determination on the face of the notice of whether the 
                notification meets the requirements of subsection 
                (b)(7)(A), and shall immediately notify the parties in 
                writing of such determination.
                    ``(E) Amended complaint notice.--
                          ``(i) In general.--A party may amend its due 
                      process complaint notice only if--
                                    ``(I) the other party consents in 
                                writing to such amendment and is given 
                                the opportunity to resolve the complaint 
                                through a meeting held pursuant to 
                                subsection (f)(1)(B); or
                                    ``(II) the hearing officer grants 
                                permission, except that the hearing 
                                officer may only grant such permission 
                                at any time not later than 5 days before 
                                a due process hearing occurs.
                          ``(ii) Applicable timeline.--The applicable 
                      timeline for a due process hearing under this part 
                      shall recommence at the time the party files an 
                      amended notice, including the timeline under 
                      subsection (f)(1)(B).

    ``(d) Procedural Safeguards Notice.--

[[Page 118 STAT. 2719]]

            ``(1) In general.--
                    ``(A) Copy to parents.--A copy of the procedural 
                safeguards available to the parents of a child with a 
                disability shall be given to the parents only 1 time a 
                year, except that a copy also shall be given to the 
                parents--
                          ``(i) upon initial referral or parental 
                      request for evaluation;
                          ``(ii) upon the first occurrence of the filing 
                      of a complaint under subsection (b)(6); and
                          ``(iii) upon request by a parent.
                    ``(B) Internet website.--A local educational agency 
                may place a current copy of the procedural safeguards 
                notice on its Internet website if such website exists.
            ``(2) Contents.--The procedural safeguards notice shall 
        include a full explanation of the procedural safeguards, written 
        in the native language of the parents (unless it clearly is not 
        feasible to do so) and written in an easily understandable 
        manner, available under this section and under regulations 
        promulgated by the Secretary relating to--
                    ``(A) independent educational evaluation;
                    ``(B) prior written notice;
                    ``(C) parental consent;
                    ``(D) access to educational records;
                    ``(E) the opportunity to present and resolve 
                complaints, including--
                          ``(i) the time period in which to make a 
                      complaint;
                          ``(ii) the opportunity for the agency to 
                      resolve the complaint; and
                          ``(iii) the availability of mediation;
                    ``(F) the child's placement during pendency of due 
                process proceedings;
                    ``(G) procedures for students who are subject to 
                placement in an interim alternative educational setting;
                    ``(H) requirements for unilateral placement by 
                parents of children in private schools at public 
                expense;
                    ``(I) due process hearings, including requirements 
                for disclosure of evaluation results and 
                recommendations;
                    ``(J) State-level appeals (if applicable in that 
                State);
                    ``(K) civil actions, including the time period in 
                which to file such actions; and
                    ``(L) attorneys' fees.

    ``(e) Mediation.--
            ``(1) In general.--Any State educational agency or local 
        educational agency that receives assistance under this part 
        shall ensure that procedures are established and implemented to 
        allow parties to disputes involving any matter, including 
        matters arising prior to the filing of a complaint pursuant to 
        subsection (b)(6), to resolve such disputes through a mediation 
        process.
            ``(2) Requirements.--Such procedures shall meet the 
        following requirements:
                    ``(A) The procedures shall ensure that the mediation 
                process--
                          ``(i) is voluntary on the part of the parties;
                          ``(ii) is not used to deny or delay a parent's 
                      right to a due process hearing under subsection 
                      (f), or to deny any other rights afforded under 
                      this part; and

[[Page 118 STAT. 2720]]

                          ``(iii) is conducted by a qualified and 
                      impartial mediator who is trained in effective 
                      mediation techniques.
                    ``(B) Opportunity to meet with a disinterested 
                party.--A local educational agency or a State agency may 
                establish procedures to offer to parents and schools 
                that choose not to use the mediation process, an 
                opportunity to meet, at a time and location convenient 
                to the parents, with a disinterested party who is under 
                contract with--
                          ``(i) a parent training and information center 
                      or community parent resource center in the State 
                      established under section 671 or 672; or
                          ``(ii) an appropriate alternative dispute 
                      resolution entity,
                to encourage the use, and explain the benefits, of the 
                mediation process to the parents.
                    ``(C) List of qualified mediators.--The State shall 
                maintain a list of individuals who are qualified 
                mediators and knowledgeable in laws and regulations 
                relating to the provision of special education and 
                related services.
                    ``(D) Costs.--The State shall bear the cost of the 
                mediation process, including the costs of meetings 
                described in subparagraph (B).
                    ``(E) Scheduling and location.--Each session in the 
                mediation process shall be scheduled in a timely manner 
                and shall be held in a location that is convenient to 
                the parties to the dispute.
                    ``(F) Written agreement.--In the case that a 
                resolution is reached to resolve the complaint through 
                the mediation process, the parties shall execute a 
                legally binding agreement that sets forth such 
                resolution and that--
                          ``(i) states that all discussions that 
                      occurred during the mediation process shall be 
                      confidential and may not be used as evidence in 
                      any subsequent due process hearing or civil 
                      proceeding;
                          ``(ii) is signed by both the parent and a 
                      representative of the agency who has the authority 
                      to bind such agency; and
                          ``(iii) is enforceable in any State court of 
                      competent jurisdiction or in a district court of 
                      the United States.
                    ``(G) <<NOTE: Confidential information.>> Mediation 
                discussions.--Discussions that occur during the 
                mediation process shall be confidential and may not be 
                used as evidence in any subsequent due process hearing 
                or civil proceeding.

    ``(f) Impartial Due Process Hearing.--
            ``(1) In general.--
                    ``(A) Hearing.--Whenever a complaint has been 
                received under subsection (b)(6) or (k), the parents or 
                the local educational agency involved in such complaint 
                shall have an opportunity for an impartial due process 
                hearing, which shall be conducted by the State 
                educational agency or by the local educational agency, 
                as determined by State law or by the State educational 
                agency.
                    ``(B) Resolution session.--
                          ``(i) Preliminary meeting.--Prior to the 
                      opportunity for an impartial due process hearing 
                      under subparagraph (A), the local educational 
                      agency shall

[[Page 118 STAT. 2721]]

                      convene a meeting with the parents and the 
                      relevant member or members of the IEP Team who 
                      have specific knowledge of the facts identified in 
                      the complaint--
                                    ``(I) <<NOTE: Deadline.>> within 15 
                                days of receiving notice of the parents' 
                                complaint;
                                    ``(II) which shall include a 
                                representative of the agency who has 
                                decisionmaking authority on behalf of 
                                such agency;
                                    ``(III) which may not include an 
                                attorney of the local educational agency 
                                unless the parent is accompanied by an 
                                attorney; and
                                    ``(IV) where the parents of the 
                                child discuss their complaint, and the 
                                facts that form the basis of the 
                                complaint, and the local educational 
                                agency is provided the opportunity to 
                                resolve the complaint,
                      unless the parents and the local educational 
                      agency agree in writing to waive such meeting, or 
                      agree to use the mediation process described in 
                      subsection (e).
                          ``(ii) <<NOTE: Deadline.>> Hearing.--If the 
                      local educational agency has not resolved the 
                      complaint to the satisfaction of the parents 
                      within 30 days of the receipt of the complaint, 
                      the due process hearing may occur, and all of the 
                      applicable timelines for a due process hearing 
                      under this part shall commence.
                          ``(iii) Written settlement agreement.--In the 
                      case that a resolution is reached to resolve the 
                      complaint at a meeting described in clause (i), 
                      the parties shall execute a legally binding 
                      agreement that is--
                                    ``(I) signed by both the parent and 
                                a representative of the agency who has 
                                the authority to bind such agency; and
                                    ``(II) enforceable in any State 
                                court of competent jurisdiction or in a 
                                district court of the United States.
                          ``(iv) Review period.--If the parties execute 
                      an agreement pursuant to clause (iii), a party may 
                      void such agreement within 3 business days of the 
                      agreement's execution.
            ``(2) Disclosure of evaluations and recommendations.--
                    ``(A) <<NOTE: Deadline.>> In general.--Not less than 
                5 business days prior to a hearing conducted pursuant to 
                paragraph (1), each party shall disclose to all other 
                parties all evaluations completed by that date, and 
                recommendations based on the offering party's 
                evaluations, that the party intends to use at the 
                hearing.
                    ``(B) Failure to disclose.--A hearing officer may 
                bar any party that fails to comply with subparagraph (A) 
                from introducing the relevant evaluation or 
                recommendation at the hearing without the consent of the 
                other party.
            ``(3) Limitations on hearing.--
                    ``(A) Person conducting hearing.--A hearing officer 
                conducting a hearing pursuant to paragraph (1)(A) shall, 
                at a minimum--
                          ``(i) not be--

[[Page 118 STAT. 2722]]

                                    ``(I) an employee of the State 
                                educational agency or the local 
                                educational agency involved in the 
                                education or care of the child; or
                                    ``(II) a person having a personal or 
                                professional interest that conflicts 
                                with the person's objectivity in the 
                                hearing;
                          ``(ii) possess knowledge of, and the ability 
                      to understand, the provisions of this title, 
                      Federal and State regulations pertaining to this 
                      title, and legal interpretations of this title by 
                      Federal and State courts;
                          ``(iii) possess the knowledge and ability to 
                      conduct hearings in accordance with appropriate, 
                      standard legal practice; and
                          ``(iv) possess the knowledge and ability to 
                      render and write decisions in accordance with 
                      appropriate, standard legal practice.
                    ``(B) Subject matter of hearing.--The party 
                requesting the due process hearing shall not be allowed 
                to raise issues at the due process hearing that were not 
                raised in the notice filed under subsection (b)(7), 
                unless the other party agrees otherwise.
                    ``(C) Timeline for requesting hearing.--A parent or 
                agency shall request an impartial due process hearing 
                within 2 years of the date the parent or agency knew or 
                should have known about the alleged action that forms 
                the basis of the complaint, or, if the State has an 
                explicit time limitation for requesting such a hearing 
                under this part, in such time as the State law allows.
                    ``(D) Exceptions to the timeline.--The timeline 
                described in subparagraph (C) shall not apply to a 
                parent if the parent was prevented from requesting the 
                hearing due to--
                          ``(i) specific misrepresentations by the local 
                      educational agency that it had resolved the 
                      problem forming the basis of the complaint; or
                          ``(ii) the local educational agency's 
                      withholding of information from the parent that 
                      was required under this part to be provided to the 
                      parent.
                    ``(E) Decision of hearing officer.--
                          ``(i) In general.--Subject to clause (ii), a 
                      decision made by a hearing officer shall be made 
                      on substantive grounds based on a determination of 
                      whether the child received a free appropriate 
                      public education.
                          ``(ii) Procedural issues.--In matters alleging 
                      a procedural violation, a hearing officer may find 
                      that a child did not receive a free appropriate 
                      public education only if the procedural 
                      inadequacies--
                                    ``(I) impeded the child's right to a 
                                free appropriate public education;
                                    ``(II) significantly impeded the 
                                parents' opportunity to participate in 
                                the decisionmaking process regarding the 
                                provision of a free appropriate public 
                                education to the parents' child; or
                                    ``(III) caused a deprivation of 
                                educational benefits.
                          ``(iii) Rule of construction.--Nothing in this 
                      subparagraph shall be construed to preclude a 
                      hearing

[[Page 118 STAT. 2723]]

                      officer from ordering a local educational agency 
                      to comply with procedural requirements under this 
                      section.
                    ``(F) Rule of construction.--Nothing in this 
                paragraph shall be construed to affect the right of a 
                parent to file a complaint with the State educational 
                agency.

    ``(g) Appeal.--
            ``(1) In general.--If the hearing required by subsection (f) 
        is conducted by a local educational agency, any party aggrieved 
        by the findings and decision rendered in such a hearing may 
        appeal such findings and decision to the State educational 
        agency.
            ``(2) Impartial review and independent decision.--The State 
        educational agency shall conduct an impartial review of the 
        findings and decision appealed under paragraph (1). The officer 
        conducting such review shall make an independent decision upon 
        completion of such review.

    ``(h) Safeguards.--Any party to a hearing conducted pursuant to 
subsection (f) or (k), or an appeal conducted pursuant to subsection 
(g), shall be accorded--
            ``(1) the right to be accompanied and advised by counsel and 
        by individuals with special knowledge or training with respect 
        to the problems of children with disabilities;
            ``(2) the right to present evidence and confront, cross-
        examine, and compel the attendance of witnesses;
            ``(3) the right to a written, or, at the option of the 
        parents, electronic verbatim record of such hearing; and
            ``(4) the right to written, or, at the option of the 
        parents, electronic findings of fact and decisions, which 
        findings and decisions--
                    ``(A) shall be made available to the public 
                consistent with the requirements of section 617(b) 
                (relating to the confidentiality of data, information, 
                and records); and
                    ``(B) shall be transmitted to the advisory panel 
                established pursuant to section 612(a)(21).

    ``(i) Administrative Procedures.--
            ``(1) In general.--
                    ``(A) Decision made in hearing.--A decision made in 
                a hearing conducted pursuant to subsection (f) or (k) 
                shall be final, except that any party involved in such 
                hearing may appeal such decision under the provisions of 
                subsection (g) and paragraph (2).
                    ``(B) Decision made at appeal.--A decision made 
                under subsection (g) shall be final, except that any 
                party may bring an action under paragraph (2).
            ``(2) Right to bring civil action.--
                    ``(A) In general.--Any party aggrieved by the 
                findings and decision made under subsection (f) or (k) 
                who does not have the right to an appeal under 
                subsection (g), and any party aggrieved by the findings 
                and decision made under this subsection, shall have the 
                right to bring a civil action with respect to the 
                complaint presented pursuant to this section, which 
                action may be brought in any State court of competent 
                jurisdiction or in a district court of the United 
                States, without regard to the amount in controversy.

[[Page 118 STAT. 2724]]

                    ``(B) Limitation.--The party bringing the action 
                shall have 90 days from the date of the decision of the 
                hearing officer to bring such an action, or, if the 
                State has an explicit time limitation for bringing such 
                action under this part, in such time as the State law 
                allows.
                    ``(C) Additional requirements.--In any action 
                brought under this paragraph, the court--
                          ``(i) shall receive the records of the 
                      administrative proceedings;
                          ``(ii) shall hear additional evidence at the 
                      request of a party; and
                          ``(iii) basing its decision on the 
                      preponderance of the evidence, shall grant such 
                      relief as the court determines is appropriate.
            ``(3) Jurisdiction of district courts; attorneys' fees.--
                    ``(A) In general.--The district courts of the United 
                States shall have jurisdiction of actions brought under 
                this section without regard to the amount in 
                controversy.
                    ``(B) Award of attorneys' fees.--
                          ``(i) In general.--In any action or proceeding 
                      brought under this section, the court, in its 
                      discretion, may award reasonable attorneys' fees 
                      as part of the costs--
                                    ``(I) to a prevailing party who is 
                                the parent of a child with a disability;
                                    ``(II) to a prevailing party who is 
                                a State educational agency or local 
                                educational agency against the attorney 
                                of a parent who files a complaint or 
                                subsequent cause of action that is 
                                frivolous, unreasonable, or without 
                                foundation, or against the attorney of a 
                                parent who continued to litigate after 
                                the litigation clearly became frivolous, 
                                unreasonable, or without foundation; or
                                    ``(III) to a prevailing State 
                                educational agency or local educational 
                                agency against the attorney of a parent, 
                                or against the parent, if the parent's 
                                complaint or subsequent cause of action 
                                was presented for any improper purpose, 
                                such as to harass, to cause unnecessary 
                                delay, or to needlessly increase the 
                                cost of litigation.
                          ``(ii) Rule of construction.--Nothing in this 
                      subparagraph shall be construed to affect section 
                      327 of the District of Columbia Appropriations 
                      Act, 2005.
                    ``(C) Determination of amount of attorneys' fees.--
                Fees awarded under this paragraph shall be based on 
                rates prevailing in the community in which the action or 
                proceeding arose for the kind and quality of services 
                furnished. No bonus or multiplier may be used in 
                calculating the fees awarded under this subsection.
                    ``(D) Prohibition of attorneys' fees and related 
                costs for certain services.--
                          ``(i) In general.--Attorneys' fees may not be 
                      awarded and related costs may not be reimbursed in 
                      any action or proceeding under this section for 
                      services performed subsequent to the time of a 
                      written offer of settlement to a parent if--

[[Page 118 STAT. 2725]]

                                    ``(I) the offer is made within the 
                                time prescribed by Rule 68 of the 
                                Federal Rules of Civil Procedure or, in 
                                the case of an administrative 
                                proceeding, at any time more than 10 
                                days before the proceeding begins;
                                    ``(II) the offer is not accepted 
                                within 10 days; and
                                    ``(III) the court or administrative 
                                hearing officer finds that the relief 
                                finally obtained by the parents is not 
                                more favorable to the parents than the 
                                offer of settlement.
                          ``(ii) IEP team meetings.--Attorneys' fees may 
                      not be awarded relating to any meeting of the IEP 
                      Team unless such meeting is convened as a result 
                      of an administrative proceeding or judicial 
                      action, or, at the discretion of the State, for a 
                      mediation described in subsection (e).
                          ``(iii) Opportunity to resolve complaints.--A 
                      meeting conducted pursuant to subsection 
                      (f)(1)(B)(i) shall not be considered--
                                    ``(I) a meeting convened as a result 
                                of an administrative hearing or judicial 
                                action; or
                                    ``(II) an administrative hearing or 
                                judicial action for purposes of this 
                                paragraph.
                    ``(E) Exception to prohibition on attorneys' fees 
                and related costs.--Notwithstanding subparagraph (D), an 
                award of attorneys' fees and related costs may be made 
                to a parent who is the prevailing party and who was 
                substantially justified in rejecting the settlement 
                offer.
                    ``(F) Reduction in amount of attorneys' fees.--
                Except as provided in subparagraph (G), whenever the 
                court finds that--
                          ``(i) the parent, or the parent's attorney, 
                      during the course of the action or proceeding, 
                      unreasonably protracted the final resolution of 
                      the controversy;
                          ``(ii) the amount of the attorneys' fees 
                      otherwise authorized to be awarded unreasonably 
                      exceeds the hourly rate prevailing in the 
                      community for similar services by attorneys of 
                      reasonably comparable skill, reputation, and 
                      experience;
                          ``(iii) the time spent and legal services 
                      furnished were excessive considering the nature of 
                      the action or proceeding; or
                          ``(iv) the attorney representing the parent 
                      did not provide to the local educational agency 
                      the appropriate information in the notice of the 
                      complaint described in subsection (b)(7)(A),
                the court shall reduce, accordingly, the amount of the 
                attorneys' fees awarded under this section.
                    ``(G) Exception to reduction in amount of attorneys' 
                fees.--The provisions of subparagraph (F) shall not 
                apply in any action or proceeding if the court finds 
                that the State or local educational agency unreasonably 
                protracted the final resolution of the action or 
                proceeding or there was a violation of this section.

    ``(j) Maintenance of Current Educational Placement.--Except as 
provided in subsection (k)(4), during the pendency of

[[Page 118 STAT. 2726]]

any proceedings conducted pursuant to this section, unless the State or 
local educational agency and the parents otherwise agree, the child 
shall remain in the then-current educational placement of the child, or, 
if applying for initial admission to a public school, shall, with the 
consent of the parents, be placed in the public school program until all 
such proceedings have been completed.
    ``(k) Placement in Alternative Educational Setting.--
            ``(1) Authority of school personnel.--
                    ``(A) Case-by-case determination.--School personnel 
                may consider any unique circumstances on a case-by-case 
                basis when determining whether to order a change in 
                placement for a child with a disability who violates a 
                code of student conduct.
                    ``(B) Authority.--School personnel under this 
                subsection may remove a child with a disability who 
                violates a code of student conduct from their current 
                placement to an appropriate interim alternative 
                educational setting, another setting, or suspension, for 
                not more than 10 school days (to the extent such 
                alternatives are applied to children without 
                disabilities).
                    ``(C) Additional authority.--If school personnel 
                seek to order a change in placement that would exceed 10 
                school days and the behavior that gave rise to the 
                violation of the school code is determined not to be a 
                manifestation of the child's disability pursuant to 
                subparagraph (E), the relevant disciplinary procedures 
                applicable to children without disabilities may be 
                applied to the child in the same manner and for the same 
                duration in which the procedures would be applied to 
                children without disabilities, except as provided in 
                section 612(a)(1) although it may be provided in an 
                interim alternative educational setting.
                    ``(D) Services.--A child with a disability who is 
                removed from the child's current placement under 
                subparagraph (G) (irrespective of whether the behavior 
                is determined to be a manifestation of the child's 
                disability) or subparagraph (C) shall--
                          ``(i) continue to receive educational 
                      services, as provided in section 612(a)(1), so as 
                      to enable the child to continue to participate in 
                      the general education curriculum, although in 
                      another setting, and to progress toward meeting 
                      the goals set out in the child's IEP; and
                          ``(ii) receive, as appropriate, a functional 
                      behavioral assessment, behavioral intervention 
                      services and modifications, that are designed to 
                      address the behavior violation so that it does not 
                      recur.
                    ``(E) Manifestation determination.--
                          ``(i) <<NOTE: Deadline.>> In general.--Except 
                      as provided in subparagraph (B), within 10 school 
                      days of any decision to change the placement of a 
                      child with a disability because of a violation of 
                      a code of student conduct, the local educational 
                      agency, the parent, and relevant members of the 
                      IEP Team (as determined by the parent and the 
                      local educational agency) shall review all 
                      relevant information in the student's file, 
                      including the

[[Page 118 STAT. 2727]]

                      child's IEP, any teacher observations, and any 
                      relevant information provided by the parents to 
                      determine--
                                    ``(I) if the conduct in question was 
                                caused by, or had a direct and 
                                substantial relationship to, the child's 
                                disability; or
                                    ``(II) if the conduct in question 
                                was the direct result of the local 
                                educational agency's failure to 
                                implement the IEP.
                          ``(ii) Manifestation.--If the local 
                      educational agency, the parent, and relevant 
                      members of the IEP Team determine that either 
                      subclause (I) or (II) of clause (i) is applicable 
                      for the child, the conduct shall be determined to 
                      be a manifestation of the child's disability.
                    ``(F) Determination that behavior was a 
                manifestation.--If the local educational agency, the 
                parent, and relevant members of the IEP Team make the 
                determination that the conduct was a manifestation of 
                the child's disability, the IEP Team shall--
                          ``(i) conduct a functional behavioral 
                      assessment, and implement a behavioral 
                      intervention plan for such child, provided that 
                      the local educational agency had not conducted 
                      such assessment prior to such determination before 
                      the behavior that resulted in a change in 
                      placement described in subparagraph (C) or (G);
                          ``(ii) in the situation where a behavioral 
                      intervention plan has been developed, review the 
                      behavioral intervention plan if the child already 
                      has such a behavioral intervention plan, and 
                      modify it, as necessary, to address the behavior; 
                      and
                          ``(iii) except as provided in subparagraph 
                      (G), return the child to the placement from which 
                      the child was removed, unless the parent and the 
                      local educational agency agree to a change of 
                      placement as part of the modification of the 
                      behavioral intervention plan.
                    ``(G) Special circumstances.--School personnel may 
                remove a student to an interim alternative educational 
                setting for not more than 45 school days without regard 
                to whether the behavior is determined to be a 
                manifestation of the child's disability, in cases where 
                a child--
                          ``(i) carries or possesses a weapon to or at 
                      school, on school premises, or to or at a school 
                      function under the jurisdiction of a State or 
                      local educational agency;
                          ``(ii) knowingly possesses or uses illegal 
                      drugs, or sells or solicits the sale of a 
                      controlled substance, while at school, on school 
                      premises, or at a school function under the 
                      jurisdiction of a State or local educational 
                      agency; or
                          ``(iii) has inflicted serious bodily injury 
                      upon another person while at school, on school 
                      premises, or at a school function under the 
                      jurisdiction of a State or local educational 
                      agency.
                    ``(H) Notification.--Not later than the date on 
                which the decision to take disciplinary action is made, 
                the local educational agency shall notify the parents of 
                that decision,

[[Page 118 STAT. 2728]]

                and of all procedural safeguards accorded under this 
                section.
            ``(2) Determination of setting.--The interim alternative 
        educational setting in subparagraphs (C) and (G) of paragraph 
        (1) shall be determined by the IEP Team.
            ``(3) Appeal.--
                    ``(A) In general.--The parent of a child with a 
                disability who disagrees with any decision regarding 
                placement, or the manifestation determination under this 
                subsection, or a local educational agency that believes 
                that maintaining the current placement of the child is 
                substantially likely to result in injury to the child or 
                to others, may request a hearing.
                    ``(B) Authority of hearing officer.--
                          ``(i) In general.--A hearing officer shall 
                      hear, and make a determination regarding, an 
                      appeal requested under subparagraph (A).
                          ``(ii) Change of placement order.--In making 
                      the determination under clause (i), the hearing 
                      officer may order a change in placement of a child 
                      with a disability. In such situations, the hearing 
                      officer may--
                                    ``(I) return a child with a 
                                disability to the placement from which 
                                the child was removed; or
                                    ``(II) order a change in placement 
                                of a child with a disability to an 
                                appropriate interim alternative 
                                educational setting for not more than 45 
                                school days if the hearing officer 
                                determines that maintaining the current 
                                placement of such child is substantially 
                                likely to result in injury to the child 
                                or to others.
            ``(4) Placement during appeals.--When an appeal under 
        paragraph (3) has been requested by either the parent or the 
        local educational agency--
                    ``(A) the child shall remain in the interim 
                alternative educational setting pending the decision of 
                the hearing officer or until the expiration of the time 
                period provided for in paragraph (1)(C), whichever 
                occurs first, unless the parent and the State or local 
                educational agency agree otherwise; and
                    ``(B) <<NOTE: Deadlines.>> the State or local 
                educational agency shall arrange for an expedited 
                hearing, which shall occur within 20 school days of the 
                date the hearing is requested and shall result in a 
                determination within 10 school days after the hearing.
            ``(5) Protections for children not yet eligible for special 
        education and related services.--
                    ``(A) In general.--A child who has not been 
                determined to be eligible for special education and 
                related services under this part and who has engaged in 
                behavior that violates a code of student conduct, may 
                assert any of the protections provided for in this part 
                if the local educational agency had knowledge (as 
                determined in accordance with this paragraph) that the 
                child was a child with a disability before the behavior 
                that precipitated the disciplinary action occurred.
                    ``(B) Basis of knowledge.--A local educational 
                agency shall be deemed to have knowledge that a child is 
                a child

[[Page 118 STAT. 2729]]

                with a disability if, before the behavior that 
                precipitated the disciplinary action occurred--
                          ``(i) the parent of the child has expressed 
                      concern in writing to supervisory or 
                      administrative personnel of the appropriate 
                      educational agency, or a teacher of the child, 
                      that the child is in need of special education and 
                      related services;
                          ``(ii) the parent of the child has requested 
                      an evaluation of the child pursuant to section 
                      614(a)(1)(B); or
                          ``(iii) the teacher of the child, or other 
                      personnel of the local educational agency, has 
                      expressed specific concerns about a pattern of 
                      behavior demonstrated by the child, directly to 
                      the director of special education of such agency 
                      or to other supervisory personnel of the agency.
                    ``(C) Exception.--A local educational agency shall 
                not be deemed to have knowledge that the child is a 
                child with a disability if the parent of the child has 
                not allowed an evaluation of the child pursuant to 
                section 614 or has refused services under this part or 
                the child has been evaluated and it was determined that 
                the child was not a child with a disability under this 
                part.
                    ``(D) Conditions that apply if no basis of 
                knowledge.--
                          ``(i) In general.--If a local educational 
                      agency does not have knowledge that a child is a 
                      child with a disability (in accordance with 
                      subparagraph (B) or (C)) prior to taking 
                      disciplinary measures against the child, the child 
                      may be subjected to disciplinary measures applied 
                      to children without disabilities who engaged in 
                      comparable behaviors consistent with clause (ii).
                          ``(ii) Limitations.--If a request is made for 
                      an evaluation of a child during the time period in 
                      which the child is subjected to disciplinary 
                      measures under this subsection, the evaluation 
                      shall be conducted in an expedited manner. If the 
                      child is determined to be a child with a 
                      disability, taking into consideration information 
                      from the evaluation conducted by the agency and 
                      information provided by the parents, the agency 
                      shall provide special education and related 
                      services in accordance with this part, except 
                      that, pending the results of the evaluation, the 
                      child shall remain in the educational placement 
                      determined by school authorities.
            ``(6) Referral to and action by law enforcement and judicial 
        authorities.--
                    ``(A) Rule of construction.--Nothing in this part 
                shall be construed to prohibit an agency from reporting 
                a crime committed by a child with a disability to 
                appropriate authorities or to prevent State law 
                enforcement and judicial authorities from exercising 
                their responsibilities with regard to the application of 
                Federal and State law to crimes committed by a child 
                with a disability.
                    ``(B) Transmittal of records.--An agency reporting a 
                crime committed by a child with a disability shall 
                ensure that copies of the special education and 
                disciplinary records

[[Page 118 STAT. 2730]]

                of the child are transmitted for consideration by the 
                appropriate authorities to whom the agency reports the 
                crime.
            ``(7) Definitions.--In this subsection:
                    ``(A) Controlled substance.--The term `controlled 
                substance' means a drug or other substance identified 
                under schedule I, II, III, IV, or V in section 202(c) of 
                the Controlled Substances Act (21 U.S.C. 812(c)).
                    ``(B) Illegal drug.--The term `illegal drug' means a 
                controlled substance but does not include a controlled 
                substance that is legally possessed or used under the 
                supervision of a licensed health-care professional or 
                that is legally possessed or used under any other 
                authority under that Act or under any other provision of 
                Federal law.
                    ``(C) Weapon.--The term `weapon' has the meaning 
                given the term `dangerous weapon' under section 
                930(g)(2) of title 18, United States Code.
                    ``(D) Serious bodily injury.--The term `serious 
                bodily injury' has the meaning given the term `serious 
                bodily injury' under paragraph (3) of subsection (h) of 
                section 1365 of title 18, United States Code.

    ``(l) Rule of Construction.--Nothing in this title shall be 
construed to restrict or limit the rights, procedures, and remedies 
available under the Constitution, the Americans with Disabilities Act of 
1990, title V of the Rehabilitation Act of 1973, or other Federal laws 
protecting the rights of children with disabilities, except that before 
the filing of a civil action under such laws seeking relief that is also 
available under this part, the procedures under subsections (f) and (g) 
shall be exhausted to the same extent as would be required had the 
action been brought under this part.
    ``(m) Transfer of Parental Rights at Age of Majority.--
            ``(1) In general.--A State that receives amounts from a 
        grant under this part may provide that, when a child with a 
        disability reaches the age of majority under State law (except 
        for a child with a disability who has been determined to be 
        incompetent under State law)--
                    ``(A) <<NOTE: Notification.>> the agency shall 
                provide any notice required by this section to both the 
                individual and the parents;
                    ``(B) all other rights accorded to parents under 
                this part transfer to the child;
                    ``(C) the agency shall notify the individual and the 
                parents of the transfer of rights; and
                    ``(D) all rights accorded to parents under this part 
                transfer to children who are incarcerated in an adult or 
                juvenile Federal, State, or local correctional 
                institution.
            ``(2) Special rule.--If, under State law, a child with a 
        disability who has reached the age of majority under State law, 
        who has not been determined to be incompetent, but who is 
        determined not to have the ability to provide informed consent 
        with respect to the educational program of the child, the State 
        shall establish procedures for appointing the parent of the 
        child, or if the parent is not available, another appropriate 
        individual, to represent the educational interests of the child 
        throughout the period of eligibility of the child under this 
        part.

    ``(n) Electronic mail.--A parent of a child with a disability may 
elect to receive notices required under this section by an

[[Page 118 STAT. 2731]]

electronic mail (e-mail) communication, if the agency makes such option 
available.
    ``(o) Separate Complaint.--Nothing in this section shall be 
construed to preclude a parent from filing a separate due process 
complaint on an issue separate from a due process complaint already 
filed.

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

    ``(a) Federal and State Monitoring.--
            ``(1) In general.--The Secretary shall--
                    ``(A) monitor implementation of this part through--
                          ``(i) oversight of the exercise of general 
                      supervision by the States, as required in section 
                      612(a)(11); and
                          ``(ii) the State performance plans, described 
                      in subsection (b);
                    ``(B) enforce this part in accordance with 
                subsection (e); and
                    ``(C) require States to--
                          ``(i) monitor implementation of this part by 
                      local educational agencies; and
                          ``(ii) enforce this part in accordance with 
                      paragraph (3) and subsection (e).
            ``(2) Focused monitoring.--The primary focus of Federal and 
        State monitoring activities described in paragraph (1) shall be 
        on--
                    ``(A) improving educational results and functional 
                outcomes for all children with disabilities; and
                    ``(B) ensuring that States meet the program 
                requirements under this part, with a particular emphasis 
                on those requirements that are most closely related to 
                improving educational results for children with 
                disabilities.
            ``(3) Monitoring priorities.--The Secretary shall monitor 
        the States, and shall require each State to monitor the local 
        educational agencies located in the State (except the State 
        exercise of general supervisory responsibility), using 
        quantifiable indicators in each of the following priority areas, 
        and using such qualitative indicators as are needed to 
        adequately measure performance in the following priority areas:
                    ``(A) Provision of a free appropriate public 
                education in the least restrictive environment.
                    ``(B) State exercise of general supervisory 
                authority, including child find, effective monitoring, 
                the use of resolution sessions, mediation, voluntary 
                binding arbitration, and a system of transition services 
                as defined in sections 602(34) and 637(a)(9).
                    ``(C) Disproportionate representation of racial and 
                ethnic groups in special education and related services, 
                to the extent the representation is the result of 
                inappropriate identification.
            ``(4) Permissive areas of review.--The Secretary shall 
        consider other relevant information and data, including data 
        provided by States under section 618.

    ``(b) State Performance Plans.--
            ``(1) Plan.--

[[Page 118 STAT. 2732]]

                    ``(A) <<NOTE: Deadline.>> In general.--Not later 
                than 1 year after the date of enactment of the 
                Individuals with Disabilities Education Improvement Act 
                of 2004, each State shall have in place a performance 
                plan that evaluates that State's efforts to implement 
                the requirements and purposes of this part and describes 
                how the State will improve such implementation.
                    ``(B) Submission for approval.--Each State shall 
                submit the State's performance plan to the Secretary for 
                approval in accordance with the approval process 
                described in subsection (c).
                    ``(C) <<NOTE: Deadline.>> Review.--Each State shall 
                review its State performance plan at least once every 6 
                years and submit any amendments to the Secretary.
            ``(2) Targets.--
                    ``(A) In general.--As a part of the State 
                performance plan described under paragraph (1), each 
                State shall establish measurable and rigorous targets 
                for the indicators established under the priority areas 
                described in subsection (a)(3).
                    ``(B) Data collection.--
                          ``(i) In general.--Each State shall collect 
                      valid and reliable information as needed to report 
                      annually to the Secretary on the priority areas 
                      described in subsection (a)(3).
                          ``(ii) Rule of construction.--Nothing in this 
                      title shall be construed to authorize the 
                      development of a nationwide database of personally 
                      identifiable information on individuals involved 
                      in studies or other collections of data under this 
                      part.
                    ``(C) Public reporting and privacy.--
                          ``(i) In general.--The State shall use the 
                      targets established in the plan and priority areas 
                      described in subsection (a)(3) to analyze the 
                      performance of each local educational agency in 
                      the State in implementing this part.
                          ``(ii) Report.--
                                    ``(I) Public report.--The State 
                                shall report annually to the public on 
                                the performance of each local 
                                educational agency located in the State 
                                on the targets in the State's 
                                performance plan. The State shall make 
                                the State's performance plan available 
                                through public means, including by 
                                posting on the website of the State 
                                educational agency, distribution to the 
                                media, and distribution through public 
                                agencies.
                                    ``(II) State performance report.--
                                The State shall report annually to the 
                                Secretary on the performance of the 
                                State under the State's performance 
                                plan.
                          ``(iii) Privacy.--The State shall not report 
                      to the public or the Secretary any information on 
                      performance that would result in the disclosure of 
                      personally identifiable information about 
                      individual children or where the available data is 
                      insufficient to yield statistically reliable 
                      information.

    ``(c) Approval Process.--

[[Page 118 STAT. 2733]]

            ``(1) <<NOTE: Deadline.>> Deemed approval.--The Secretary 
        shall review (including the specific provisions described in 
        subsection (b)) each performance plan submitted by a State 
        pursuant to subsection (b)(1)(B) and the plan shall be deemed to 
        be approved by the Secretary unless the Secretary makes a 
        written determination, prior to the expiration of the 120-day 
        period beginning on the date on which the Secretary received the 
        plan, that the plan does not meet the requirements of this 
        section, including the specific provisions described in 
        subsection (b).
            ``(2) Disapproval.--The Secretary shall not finally 
        disapprove a performance plan, except after giving the State 
        notice and an opportunity for a hearing.
            ``(3) Notification.--If the Secretary finds that the plan 
        does not meet the requirements, in whole or in part, of this 
        section, the Secretary shall--
                    ``(A) give the State notice and an opportunity for a 
                hearing; and
                    ``(B) notify the State of the finding, and in such 
                notification shall--
                          ``(i) cite the specific provisions in the plan 
                      that do not meet the requirements; and
                          ``(ii) request additional information, only as 
                      to the provisions not meeting the requirements, 
                      needed for the plan to meet the requirements of 
                      this section.
            ``(4) <<NOTE: Deadlines.>> Response.--If the State responds 
        to the Secretary's notification described in paragraph (3)(B) 
        during the 30-day period beginning on the date on which the 
        State received the notification, and resubmits the plan with the 
        requested information described in paragraph (3)(B)(ii), the 
        Secretary shall approve or disapprove such plan prior to the 
        later of--
                    ``(A) the expiration of the 30-day period beginning 
                on the date on which the plan is resubmitted; or
                    ``(B) the expiration of the 120-day period described 
                in paragraph (1).
            ``(5) Failure to respond.--If the State does not respond to 
        the Secretary's notification described in paragraph (3)(B) 
        during the 30-day period beginning on the date on which the 
        State received the notification, such plan shall be deemed to be 
        disapproved.

    ``(d) Secretary's Review and Determination.--
            ``(1) Review.--The Secretary shall annually review the State 
        performance report submitted pursuant to subsection 
        (b)(2)(C)(ii)(II) in accordance with this section.
            ``(2) Determination.--
                    ``(A) In general.--Based on the information provided 
                by the State in the State performance report, 
                information obtained through monitoring visits, and any 
                other public information made available, the Secretary 
                shall determine if the State--
                          ``(i) meets the requirements and purposes of 
                      this part;
                          ``(ii) needs assistance in implementing the 
                      requirements of this part;
                          ``(iii) needs intervention in implementing the 
                      requirements of this part; or
                          ``(iv) needs substantial intervention in 
                      implementing the requirements of this part.

[[Page 118 STAT. 2734]]

                    ``(B) Notice and opportunity for a hearing.--For 
                determinations made under clause (iii) or (iv) of 
                subparagraph (A), the Secretary shall provide reasonable 
                notice and an opportunity for a hearing on such 
                determination.

    ``(e) Enforcement.--
            ``(1) Needs assistance.--If the Secretary determines, for 2 
        consecutive years, that a State needs assistance under 
        subsection (d)(2)(A)(ii) in implementing the requirements of 
        this part, the Secretary shall take 1 or more of the following 
        actions:
                    ``(A) Advise the State of available sources of 
                technical assistance that may help the State address the 
                areas in which the State needs assistance, which may 
                include assistance from the Office of Special Education 
                Programs, other offices of the Department of Education, 
                other Federal agencies, technical assistance providers 
                approved by the Secretary, and other federally funded 
                nonprofit agencies, and require the State to work with 
                appropriate entities. Such technical assistance may 
                include--
                          ``(i) the provision of advice by experts to 
                      address the areas in which the State needs 
                      assistance, including explicit plans for 
                      addressing the area for concern within a specified 
                      period of time;
                          ``(ii) assistance in identifying and 
                      implementing professional development, 
                      instructional strategies, and methods of 
                      instruction that are based on scientifically based 
                      research;
                          ``(iii) designating and using distinguished 
                      superintendents, principals, special education 
                      administrators, special education teachers, and 
                      other teachers to provide advice, technical 
                      assistance, and support; and
                          ``(iv) devising additional approaches to 
                      providing technical assistance, such as 
                      collaborating with institutions of higher 
                      education, educational service agencies, national 
                      centers of technical assistance supported under 
                      part D, and private providers of scientifically 
                      based technical assistance.
                    ``(B) Direct the use of State-level funds under 
                section 611(e) on the area or areas in which the State 
                needs assistance.
                    ``(C) Identify the State as a high-risk grantee and 
                impose special conditions on the State's grant under 
                this part.
            ``(2) Needs intervention.--If the Secretary determines, for 
        3 or more consecutive years, that a State needs intervention 
        under subsection (d)(2)(A)(iii) in implementing the requirements 
        of this part, the following shall apply:
                    ``(A) The Secretary may take any of the actions 
                described in paragraph (1).
                    ``(B) The Secretary shall take 1 or more of the 
                following actions:
                          ``(i) Require the State to prepare a 
                      corrective action plan or improvement plan if the 
                      Secretary determines that the State should be able 
                      to correct the problem within 1 year.
                          ``(ii) Require the State to enter into a 
                      compliance agreement under section 457 of the 
                      General Education

[[Page 118 STAT. 2735]]

                      Provisions Act, if the Secretary has reason to 
                      believe that the State cannot correct the problem 
                      within 1 year.
                          ``(iii) For each year of the determination, 
                      withhold not less than 20 percent and not more 
                      than 50 percent of the State's funds under section 
                      611(e), until the Secretary determines the State 
                      has sufficiently addressed the areas in which the 
                      State needs intervention.
                          ``(iv) Seek to recover funds under section 452 
                      of the General Education Provisions Act.
                          ``(v) Withhold, in whole or in part, any 
                      further payments to the State under this part 
                      pursuant to paragraph (5).
                          ``(vi) Refer the matter for appropriate 
                      enforcement action, which may include referral to 
                      the Department of Justice.
            ``(3) Needs substantial intervention.--Notwithstanding 
        paragraph (1) or (2), at any time that the Secretary determines 
        that a State needs substantial intervention in implementing the 
        requirements of this part or that there is a substantial failure 
        to comply with any condition of a State educational agency's or 
        local educational agency's eligibility under this part, the 
        Secretary shall take 1 or more of the following actions:
                    ``(A) Recover funds under section 452 of the General 
                Education Provisions Act.
                    ``(B) Withhold, in whole or in part, any further 
                payments to the State under this part.
                    ``(C) Refer the case to the Office of the Inspector 
                General at the Department of Education.
                    ``(D) Refer the matter for appropriate enforcement 
                action, which may include referral to the Department of 
                Justice.
            ``(4) Opportunity for hearing.--
                    ``(A) <<NOTE: Notification.>> Withholding funds.--
                Prior to withholding any funds under this section, the 
                Secretary shall provide reasonable notice and an 
                opportunity for a hearing to the State educational 
                agency involved.
                    ``(B) Suspension.--Pending the outcome of any 
                hearing to withhold payments under subsection (b), the 
                Secretary may suspend payments to a recipient, suspend 
                the authority of the recipient to obligate funds under 
                this part, or both, after such recipient has been given 
                reasonable notice and an opportunity to show cause why 
                future payments or authority to obligate funds under 
                this part should not be suspended.
            ``(5) Report to congress.--The Secretary shall report to the 
        Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate within 30 days of taking enforcement 
        action pursuant to paragraph (1), (2), or (3), on the specific 
        action taken and the reasons why enforcement action was taken.
            ``(6) Nature of withholding.--
                    ``(A) Limitation.--If the Secretary withholds 
                further payments pursuant to paragraph (2) or (3), the 
                Secretary may determine--

[[Page 118 STAT. 2736]]

                          ``(i) that such withholding will be limited to 
                      programs or projects, or portions of programs or 
                      projects, that affected the Secretary's 
                      determination under subsection (d)(2); or
                          ``(ii) that the State educational agency shall 
                      not make further payments under this part to 
                      specified State agencies or local educational 
                      agencies that caused or were involved in the 
                      Secretary's determination under subsection (d)(2).
                    ``(B) Withholding until rectified.--Until the 
                Secretary is satisfied that the condition that caused 
                the initial withholding has been substantially 
                rectified--
                          ``(i) payments to the State under this part 
                      shall be withheld in whole or in part; and
                          ``(ii) payments by the State educational 
                      agency under this part shall be limited to State 
                      agencies and local educational agencies whose 
                      actions did not cause or were not involved in the 
                      Secretary's determination under subsection (d)(2), 
                      as the case may be.
            ``(7) Public attention.--Any State that has received notice 
        under subsection (d)(2) shall, by means of a public notice, take 
        such measures as may be necessary to bring the pendency of an 
        action pursuant to this subsection to the attention of the 
        public within the State.
            ``(8) Judicial review.--
                    ``(A) <<NOTE: Deadline.>> In general.--If any State 
                is dissatisfied with the Secretary's action with respect 
                to the eligibility of the State under section 612, such 
                State may, not later than 60 days after notice of such 
                action, file with the United States court of appeals for 
                the circuit in which such State is located a petition 
                for review of that action. A copy of the petition shall 
                be transmitted by the clerk of the court to the 
                Secretary. <<NOTE: Records.>> The Secretary thereupon 
                shall file in the court the record of the proceedings 
                upon which the Secretary's action was based, as provided 
                in section 2112 of title 28, United States Code.
                    ``(B) Jurisdiction; review by united states supreme 
                court.--Upon the filing of such petition, the court 
                shall have jurisdiction to affirm the action of the 
                Secretary or to set it aside, in whole or in part. The 
                judgment of the court shall be subject to review by the 
                Supreme Court of the United States upon certiorari or 
                certification as provided in section 1254 of title 28, 
                United States Code.
                    ``(C) <<NOTE: Records.>> Standard of review.--The 
                findings of fact by the Secretary, if supported by 
                substantial evidence, shall be conclusive, but the 
                court, for good cause shown, may remand the case to the 
                Secretary to take further evidence, and the Secretary 
                may thereupon make new or modified findings of fact and 
                may modify the Secretary's previous action, and shall 
                file in the court the record of the further proceedings. 
                Such new or modified findings of fact shall be 
                conclusive if supported by substantial evidence.

    ``(f) State Enforcement.--If a State educational agency determines 
that a local educational agency is not meeting the requirements of this 
part, including the targets in the State's performance

[[Page 118 STAT. 2737]]

plan, the State educational agency shall prohibit the local educational 
agency from reducing the local educational agency's maintenance of 
effort under section 613(a)(2)(C) for any fiscal year.
    ``(g) Rule of Construction.--Nothing in this section shall be 
construed to restrict the Secretary from utilizing any authority under 
the General Education Provisions Act to monitor and enforce the 
requirements of this title.
    ``(h) Divided State Agency Responsibility.--For purposes of this 
section, where responsibility for ensuring that the requirements of this 
part are met with respect to children with disabilities who are 
convicted as adults under State law and incarcerated in adult prisons is 
assigned to a public agency other than the State educational agency 
pursuant to section 612(a)(11)(C), the Secretary, in instances where the 
Secretary finds that the failure to comply substantially with the 
provisions of this part are related to a failure by the public agency, 
shall take appropriate corrective action to ensure compliance with this 
part, except that--
            ``(1) any reduction or withholding of payments to the State 
        shall be proportionate to the total funds allotted under section 
        611 to the State as the number of eligible children with 
        disabilities in adult prisons under the supervision of the other 
        public agency is proportionate to the number of eligible 
        individuals with disabilities in the State under the supervision 
        of the State educational agency; and
            ``(2) any withholding of funds under paragraph (1) shall be 
        limited to the specific agency responsible for the failure to 
        comply with this part.

    ``(i) Data Capacity and Technical Assistance Review.--The Secretary 
shall--
            ``(1) review the data collection and analysis capacity of 
        States to ensure that data and information determined necessary 
        for implementation of this section is collected, analyzed, and 
        accurately reported to the Secretary; and
            ``(2) provide technical assistance (from funds reserved 
        under section 611(c)), where needed, to improve the capacity of 
        States to meet the data collection requirements.

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

    ``(a) Responsibilities of Secretary.--The Secretary shall--
            ``(1) cooperate with, and (directly or by grant or contract) 
        furnish technical assistance necessary to, a State in matters 
        relating to--
                    ``(A) the education of children with disabilities; 
                and
                    ``(B) carrying out this part; and
            ``(2) provide short-term training programs and institutes.

    ``(b) Prohibition Against Federal Mandates, Direction, or Control.--
Nothing in this title shall be construed to authorize an officer or 
employee of the Federal Government to mandate, direct, or control a 
State, local educational agency, or school's specific instructional 
content, academic achievement standards and assessments, curriculum, or 
program of instruction.
    ``(c) Confidentiality.--The Secretary shall take appropriate action, 
in accordance with section 444 of the General Education Provisions Act, 
to ensure the protection of the confidentiality of any personally 
identifiable data, information, and records collected or maintained by 
the Secretary and by State educational agencies and local educational 
agencies pursuant to this part.

[[Page 118 STAT. 2738]]

    ``(d) Personnel.--The Secretary is authorized to hire qualified 
personnel necessary to carry out the Secretary's duties under subsection 
(a), under section 618, and under subpart 4 of part D, without regard to 
the provisions of title 5, United States Code, relating to appointments 
in the competitive service and without regard to chapter 51 and 
subchapter III of chapter 53 of such title relating to classification 
and general schedule pay rates, except that no more than 20 such 
personnel shall be employed at any time.
    ``(e) <<NOTE: Deadline. Public information.>> Model Forms.--Not 
later than the date that the Secretary publishes final regulations under 
this title, to implement amendments made by the Individuals with 
Disabilities Education Improvement Act of 2004, the Secretary shall 
publish and disseminate widely to States, local educational agencies, 
and parent and community training and information centers--
            ``(1) a model IEP form;
            ``(2) a model individualized family service plan (IFSP) 
        form;
            ``(3) a model form of the notice of procedural safeguards 
        described in section 615(d); and
            ``(4) a model form of the prior written notice described in 
        subsections (b)(3) and (c)(1) of section 615 that is consistent 
        with the requirements of this part and is sufficient to meet 
        such requirements.

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

    ``(a) In General.--Each State that receives assistance under this 
part, and the Secretary of the Interior, shall provide data each year to 
the Secretary of Education and the public on the following:
            ``(1)(A) The number and percentage of children with 
        disabilities, by race, ethnicity, limited English proficiency 
        status, gender, and disability category, who are in each of the 
        following separate categories:
                    ``(i) Receiving a free appropriate public education.
                    ``(ii) Participating in regular education.
                    ``(iii) In separate classes, separate schools or 
                facilities, or public or private residential facilities.
                    ``(iv) For each year of age from age 14 through 21, 
                stopped receiving special education and related services 
                because of program completion (including graduation with 
                a regular secondary school diploma), or other reasons, 
                and the reasons why those children stopped receiving 
                special education and related services.
                    ``(v)(I) Removed to an interim alternative 
                educational setting under section 615(k)(1).
                          ``(II) The acts or items precipitating those 
                      removals.
                          ``(III) The number of children with 
                      disabilities who are subject to long-term 
                      suspensions or expulsions.
            ``(B) The number and percentage of children with 
        disabilities, by race, gender, and ethnicity, who are receiving 
        early intervention services.
            ``(C) The number and percentage of children with 
        disabilities, by race, gender, and ethnicity, who, from birth 
        through age 2, stopped receiving early intervention services 
        because of program completion or for other reasons.

[[Page 118 STAT. 2739]]

            ``(D) The incidence and duration of disciplinary actions by 
        race, ethnicity, limited English proficiency status, gender, and 
        disability category, of children with disabilities, including 
        suspensions of 1 day or more.
            ``(E) The number and percentage of children with 
        disabilities who are removed to alternative educational settings 
        or expelled as compared to children without disabilities who are 
        removed to alternative educational settings or expelled.
            ``(F) The number of due process complaints filed under 
        section 615 and the number of hearings conducted.
            ``(G) The number of hearings requested under section 615(k) 
        and the number of changes in placements ordered as a result of 
        those hearings.
            ``(H) The number of mediations held and the number of 
        settlement agreements reached through such mediations.
            ``(2) The number and percentage of infants and toddlers, by 
        race, and ethnicity, who are at risk of having substantial 
        developmental delays (as defined in section 632), and who are 
        receiving early intervention services under part C.
            ``(3) Any other information that may be required by the 
        Secretary.

    ``(b) Data Reporting.--
            ``(1) Protection of identifiable data.--The data described 
        in subsection (a) shall be publicly reported by each State in a 
        manner that does not result in the disclosure of data 
        identifiable to individual children.
            ``(2) Sampling.--The Secretary may permit States and the 
        Secretary of the Interior to obtain the data described in 
        subsection (a) through sampling.

    ``(c) Technical Assistance.--The Secretary may provide technical 
assistance to States to ensure compliance with the data collection and 
reporting requirements under this title.
    ``(d) Disproportionality.--
            ``(1) In general.--Each State that receives assistance under 
        this part, and the Secretary of the Interior, shall provide for 
        the collection and examination of data to determine if 
        significant disproportionality based on race and ethnicity is 
        occurring in the State and the local educational agencies of the 
        State with respect to--
                    ``(A) the identification of children as children 
                with disabilities, including the identification of 
                children as children with disabilities in accordance 
                with a particular impairment described in section 
                602(3);
                    ``(B) the placement in particular educational 
                settings of such children; and
                    ``(C) the incidence, duration, and type of 
                disciplinary actions, including suspensions and 
                expulsions.
            ``(2) Review and revision of policies, practices, and 
        procedures.--In the case of a determination of significant 
        disproportionality with respect to the identification of 
        children as children with disabilities, or the placement in 
        particular educational settings of such children, in accordance 
        with paragraph (1), the State or the Secretary of the Interior, 
        as the case may be, shall--
                    ``(A) provide for the review and, if appropriate, 
                revision of the policies, procedures, and practices used 
                in such identification or placement to ensure that such 
                policies,

[[Page 118 STAT. 2740]]

                procedures, and practices comply with the requirements 
                of this title;
                    ``(B) require any local educational agency 
                identified under paragraph (1) to reserve the maximum 
                amount of funds under section 613(f) to provide 
                comprehensive coordinated early intervening services to 
                serve children in the local educational agency, 
                particularly children in those groups that were 
                significantly overidentified under paragraph (1); and
                    ``(C) require the local educational agency to 
                publicly report on the revision of policies, practices, 
                and procedures described under subparagraph (A).

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

    ``(a) In General.--The Secretary shall provide grants under this 
section to assist States to provide special education and related 
services, in accordance with this part--
            ``(1) to children with disabilities aged 3 through 5, 
        inclusive; and
            ``(2) at the State's discretion, to 2-year-old children with 
        disabilities who will turn 3 during the school year.

    ``(b) Eligibility.--A State shall be eligible for a grant under this 
section if such State--
            ``(1) is eligible under section 612 to receive a grant under 
        this part; and
            ``(2) makes a free appropriate public education available to 
        all children with disabilities, aged 3 through 5, residing in 
        the State.

    ``(c) Allocations to States.--
            ``(1) In general.--The Secretary shall allocate the amount 
        made available to carry out this section for a fiscal year among 
        the States in accordance with paragraph (2) or (3), as the case 
        may be.
            ``(2) Increase in funds.--If the amount available for 
        allocations to States under paragraph (1) for a fiscal year is 
        equal to or greater than the amount allocated to the States 
        under this section for the preceding fiscal year, those 
        allocations shall be calculated as follows:
                    ``(A) Allocation.--
                          ``(i) In general.--Except as provided in 
                      subparagraph (B), the Secretary shall--
                                    ``(I) allocate to each State the 
                                amount the State received under this 
                                section for fiscal year 1997;
                                    ``(II) allocate 85 percent of any 
                                remaining funds to States on the basis 
                                of the States' relative populations of 
                                children aged 3 through 5; and
                                    ``(III) allocate 15 percent of those 
                                remaining funds to States on the basis 
                                of the States' relative populations of 
                                all children aged 3 through 5 who are 
                                living in poverty.
                          ``(ii) Data.--For the purpose of making grants 
                      under this paragraph, the Secretary shall use the 
                      most recent population data, including data on 
                      children living in poverty, that are available and 
                      satisfactory to the Secretary.

[[Page 118 STAT. 2741]]

                    ``(B) Limitations.--Notwithstanding subparagraph 
                (A), allocations under this paragraph shall be subject 
                to the following:
                          ``(i) Preceding years.--No State's allocation 
                      shall be less than its allocation under this 
                      section for the preceding fiscal year.
                          ``(ii) Minimum.--No State's allocation shall 
                      be less than the greatest of--
                                    ``(I) the sum of--
                                            ``(aa) the amount the State 
                                        received under this section for 
                                        fiscal year 1997; and
                                            ``(bb) \1/3\ of 1 percent of 
                                        the amount by which the amount 
                                        appropriated under subsection 
                                        (j) for the fiscal year exceeds 
                                        the amount appropriated for this 
                                        section for fiscal year 1997;
                                    ``(II) the sum of--
                                            ``(aa) the amount the State 
                                        received under this section for 
                                        the preceding fiscal year; and
                                            ``(bb) that amount 
                                        multiplied by the percentage by 
                                        which the increase in the funds 
                                        appropriated under this section 
                                        from the preceding fiscal year 
                                        exceeds 1.5 percent; or
                                    ``(III) the sum of--
                                            ``(aa) the amount the State 
                                        received under this section for 
                                        the preceding fiscal year; and
                                            ``(bb) that amount 
                                        multiplied by 90 percent of the 
                                        percentage increase in the 
                                        amount appropriated under this 
                                        section from the preceding 
                                        fiscal year.
                          ``(iii) Maximum.--Notwithstanding clause (ii), 
                      no State's allocation under this paragraph shall 
                      exceed the sum of--
                                    ``(I) the amount the State received 
                                under this section for the preceding 
                                fiscal year; and
                                    ``(II) that amount multiplied by the 
                                sum of 1.5 percent and the percentage 
                                increase in the amount appropriated 
                                under this section from the preceding 
                                fiscal year.
                    ``(C) Ratable reductions.--If the amount available 
                for allocations under this paragraph is insufficient to 
                pay those allocations in full, those allocations shall 
                be ratably reduced, subject to subparagraph (B)(i).
            ``(3) Decrease in funds.--If the amount available for 
        allocations to States under paragraph (1) for a fiscal year is 
        less than the amount allocated to the States under this section 
        for the preceding fiscal year, those allocations shall be 
        calculated as follows:
                    ``(A) Allocations.--If the amount available for 
                allocations is greater than the amount allocated to the 
                States for fiscal year 1997, each State shall be 
                allocated the sum of--
                          ``(i) the amount the State received under this 
                      section for fiscal year 1997; and
                          ``(ii) an amount that bears the same relation 
                      to any remaining funds as the increase the State 
                      received under this section for the preceding 
                      fiscal year over

[[Page 118 STAT. 2742]]

                      fiscal year 1997 bears to the total of all such 
                      increases for all States.
                    ``(B) Ratable reductions.--If the amount available 
                for allocations is equal to or less than the amount 
                allocated to the States for fiscal year 1997, each State 
                shall be allocated the amount the State received for 
                fiscal year 1997, ratably reduced, if necessary.

    ``(d) Reservation for State Activities.--
            ``(1) In general.--Each State may reserve not more than the 
        amount described in paragraph (2) for administration and other 
        State-level activities in accordance with subsections (e) and 
        (f).
            ``(2) <<NOTE: Reports.>> Amount described.--For each fiscal 
        year, the Secretary shall determine and report to the State 
        educational agency an amount that is 25 percent of the amount 
        the State received under this section for fiscal year 1997, 
        cumulatively adjusted by the Secretary for each succeeding 
        fiscal year by the lesser of--
                    ``(A) the percentage increase, if any, from the 
                preceding fiscal year in the State's allocation under 
                this section; or
                    ``(B) the percentage increase, if any, from the 
                preceding fiscal year in the Consumer Price Index For 
                All Urban Consumers published by the Bureau of Labor 
                Statistics of the Department of Labor.

    ``(e) State Administration.--
            ``(1) In general.--For the purpose of administering this 
        section (including the coordination of activities under this 
        part with, and providing technical assistance to, other programs 
        that provide services to children with disabilities) a State may 
        use not more than 20 percent of the maximum amount the State may 
        reserve under subsection (d) for any fiscal year.
            ``(2) Administration of part c.--Funds described in 
        paragraph (1) may also be used for the administration of part C.

    ``(f) Other State-Level Activities.--Each State shall use any funds 
the State reserves under subsection (d) and does not use for 
administration under subsection (e)--
            ``(1) for support services (including establishing and 
        implementing the mediation process required by section 615(e)), 
        which may benefit children with disabilities younger than 3 or 
        older than 5 as long as those services also benefit children 
        with disabilities aged 3 through 5;
            ``(2) for direct services for children eligible for services 
        under this section;
            ``(3) for activities at the State and local levels to meet 
        the performance goals established by the State under section 
        612(a)(15);
            ``(4) to supplement other funds used to develop and 
        implement a statewide coordinated services system designed to 
        improve results for children and families, including children 
        with disabilities and their families, but not more than 1 
        percent of the amount received by the State under this section 
        for a fiscal year;
            ``(5) to provide early intervention services (which shall 
        include an educational component that promotes school readiness 
        and incorporates preliteracy, language, and numeracy

[[Page 118 STAT. 2743]]

        skills) in accordance with part C to children with disabilities 
        who are eligible for services under this section and who 
        previously received services under part C until such children 
        enter, or are eligible under State law to enter, kindergarten; 
        or
            ``(6) at the State's discretion, to continue service 
        coordination or case management for families who receive 
        services under part C.

    ``(g) Subgrants to Local Educational Agencies.--
            ``(1) Subgrants required.--Each State that receives a grant 
        under this section for any fiscal year shall distribute all of 
        the grant funds that the State does not reserve under subsection 
        (d) to local educational agencies in the State that have 
        established their eligibility under section 613, as follows:
                    ``(A) Base payments.--The State shall first award 
                each local educational agency described in paragraph (1) 
                the amount that agency would have received under this 
                section for fiscal year 1997 if the State had 
                distributed 75 percent of its grant for that year under 
                section 619(c)(3), as such section was then in effect.
                    ``(B) Allocation of remaining funds.--After making 
                allocations under subparagraph (A), the State shall--
                          ``(i) allocate 85 percent of any remaining 
                      funds to those local educational agencies on the 
                      basis of the relative numbers of children enrolled 
                      in public and private elementary schools and 
                      secondary schools within the local educational 
                      agency's jurisdiction; and
                          ``(ii) allocate 15 percent of those remaining 
                      funds to those local educational agencies in 
                      accordance with their relative numbers of children 
                      living in poverty, as determined by the State 
                      educational agency.
            ``(2) Reallocation of funds.--If a State educational agency 
        determines that a local educational agency is adequately 
        providing a free appropriate public education to all children 
        with disabilities aged 3 through 5 residing in the area served 
        by the local educational agency with State and local funds, the 
        State educational agency may reallocate any portion of the funds 
        under this section that are not needed by that local educational 
        agency to provide a free appropriate public education to other 
        local educational agencies in the State that are not adequately 
        providing special education and related services to all children 
        with disabilities aged 3 through 5 residing in the areas the 
        other local educational agencies serve.

    ``(h) Part C Inapplicable.--Part C does not apply to any child with 
a disability receiving a free appropriate public education, in 
accordance with this part, with funds received under this section.
    ``(i) State Defined.--In this section, the term `State' means each 
of the 50 States, the District of Columbia, and the Commonwealth of 
Puerto Rico.
    ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary.

[[Page 118 STAT. 2744]]

            ``PART C--INFANTS AND TODDLERS WITH DISABILITIES

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

    ``(a) Findings.--Congress finds that there is an urgent and 
substantial need--
            ``(1) to enhance the development of infants and toddlers 
        with disabilities, to minimize their potential for developmental 
        delay, and to recognize the significant brain development that 
        occurs during a child's first 3 years of life;
            ``(2) to reduce the educational costs to our society, 
        including our Nation's schools, by minimizing the need for 
        special education and related services after infants and 
        toddlers with disabilities reach school age;
            ``(3) to maximize the potential for individuals with 
        disabilities to live independently in society;
            ``(4) to enhance the capacity of families to meet the 
        special needs of their infants and toddlers with disabilities; 
        and
            ``(5) to enhance the capacity of State and local agencies 
        and service providers to identify, evaluate, and meet the needs 
        of all children, particularly minority, low-income, inner city, 
        and rural children, and infants and toddlers in foster care.

    ``(b) Policy.--It is the policy of the United States to provide 
financial assistance to States--
            ``(1) to develop and implement a statewide, comprehensive, 
        coordinated, multidisciplinary, interagency system that provides 
        early intervention services for infants and toddlers with 
        disabilities and their families;
            ``(2) to facilitate the coordination of payment for early 
        intervention services from Federal, State, local, and private 
        sources (including public and private insurance coverage);
            ``(3) to enhance State capacity to provide quality early 
        intervention services and expand and improve existing early 
        intervention services being provided to infants and toddlers 
        with disabilities and their families; and
            ``(4) to encourage States to expand opportunities for 
        children under 3 years of age who would be at risk of having 
        substantial developmental delay if they did not receive early 
        intervention services.

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

    ``In this part:
            ``(1) At-risk infant or toddler.--The term `at-risk infant 
        or toddler' means an individual under 3 years of age who would 
        be at risk of experiencing a substantial developmental delay if 
        early intervention services were not provided to the individual.
            ``(2) Council.--The term `council' means a State interagency 
        coordinating council established under section 641.
            ``(3) Developmental delay.--The term `developmental delay', 
        when used with respect to an individual residing in a State, has 
        the meaning given such term by the State under section 
        635(a)(1).
            ``(4) Early intervention services.--The term `early 
        intervention services' means developmental services that--
                    ``(A) are provided under public supervision;

[[Page 118 STAT. 2745]]

                    ``(B) are provided at no cost except where Federal 
                or State law provides for a system of payments by 
                families, including a schedule of sliding fees;
                    ``(C) are designed to meet the developmental needs 
                of an infant or toddler with a disability, as identified 
                by the individualized family service plan team, in any 1 
                or more of the following areas:
                          ``(i) physical development;
                          ``(ii) cognitive development;
                          ``(iii) communication development;
                          ``(iv) social or emotional development; or
                          ``(v) adaptive development;
                    ``(D) meet the standards of the State in which the 
                services are provided, including the requirements of 
                this part;
                    ``(E) include--
                          ``(i) family training, counseling, and home 
                      visits;
                          ``(ii) special instruction;
                          ``(iii) speech-language pathology and 
                      audiology services, and sign language and cued 
                      language services;
                          ``(iv) occupational therapy;
                          ``(v) physical therapy;
                          ``(vi) psychological services;
                          ``(vii) service coordination services;
                          ``(viii) medical services only for diagnostic 
                      or evaluation purposes;
                          ``(ix) early identification, screening, and 
                      assessment services;
                          ``(x) health services necessary to enable the 
                      infant or toddler to benefit from the other early 
                      intervention services;
                          ``(xi) social work services;
                          ``(xii) vision services;
                          ``(xiii) assistive technology devices and 
                      assistive technology services; and
                          ``(xiv) transportation and related costs that 
                      are necessary to enable an infant or toddler and 
                      the infant's or toddler's family to receive 
                      another service described in this paragraph;
                    ``(F) are provided by qualified personnel, 
                including--
                          ``(i) special educators;
                          ``(ii) speech-language pathologists and 
                      audiologists;
                          ``(iii) occupational therapists;
                          ``(iv) physical therapists;
                          ``(v) psychologists;
                          ``(vi) social workers;
                          ``(vii) nurses;
                          ``(viii) registered dietitians;
                          ``(ix) family therapists;
                          ``(x) vision specialists, including 
                      ophthalmologists and optometrists;
                          ``(xi) orientation and mobility specialists; 
                      and
                          ``(xii) pediatricians and other physicians;
                    ``(G) to the maximum extent appropriate, are 
                provided in natural environments, including the home, 
                and community settings in which children without 
                disabilities participate; and

[[Page 118 STAT. 2746]]

                    ``(H) are provided in conformity with an 
                individualized family service plan adopted in accordance 
                with section 636.
            ``(5) Infant or toddler with a disability.--The term `infant 
        or toddler with a disability'--
                    ``(A) means an individual under 3 years of age who 
                needs early intervention services because the 
                individual--
                          ``(i) is experiencing developmental delays, as 
                      measured by appropriate diagnostic instruments and 
                      procedures in 1 or more of the areas of cognitive 
                      development, physical development, communication 
                      development, social or emotional development, and 
                      adaptive development; or
                          ``(ii) has a diagnosed physical or mental 
                      condition that has a high probability of resulting 
                      in developmental delay; and
                    ``(B) may also include, at a State's discretion--
                          ``(i) at-risk infants and toddlers; and
                          ``(ii) children with disabilities who are 
                      eligible for services under section 619 and who 
                      previously received services under this part until 
                      such children enter, or are eligible under State 
                      law to enter, kindergarten or elementary school, 
                      as appropriate, provided that any programs under 
                      this part serving such children shall include--
                                    ``(I) an educational component that 
                                promotes school readiness and 
                                incorporates pre-literacy, language, and 
                                numeracy skills; and
                                    ``(II) a written notification to 
                                parents of their rights and 
                                responsibilities in determining whether 
                                their child will continue to receive 
                                services under this part or participate 
                                in preschool programs under section 619.

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

    ``The Secretary shall, in accordance with this part, make grants to 
States (from their allotments under section 643) to assist each State to 
maintain and implement a statewide, comprehensive, coordinated, 
multidisciplinary, interagency system to provide early intervention 
services for infants and toddlers with disabilities and their families.

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

    ``In order to be eligible for a grant under section 633, a State 
shall provide assurances to the Secretary that the State--
            ``(1) has adopted a policy that appropriate early 
        intervention services are available to all infants and toddlers 
        with disabilities in the State and their families, including 
        Indian infants and toddlers with disabilities and their families 
        residing on a reservation geographically located in the State, 
        infants and toddlers with disabilities who are homeless children 
        and their families, and infants and toddlers with disabilities 
        who are wards of the State; and
            ``(2) has in effect a statewide system that meets the 
        requirements of section 635.

[[Page 118 STAT. 2747]]

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

    ``(a) In General.--A statewide system described in section 633 shall 
include, at a minimum, the following components:
            ``(1) A rigorous definition of the term `developmental 
        delay' that will be used by the State in carrying out programs 
        under this part in order to appropriately identify infants and 
        toddlers with disabilities that are in need of services under 
        this part.
            ``(2) A State policy that is in effect and that ensures that 
        appropriate early intervention services based on scientifically 
        based research, to the extent practicable, are available to all 
        infants and toddlers with disabilities and their families, 
        including Indian infants and toddlers with disabilities and 
        their families residing on a reservation geographically located 
        in the State and infants and toddlers with disabilities who are 
        homeless children and their families.
            ``(3) A timely, comprehensive, multidisciplinary evaluation 
        of the functioning of each infant or toddler with a disability 
        in the State, and a family-directed identification of the needs 
        of each family of such an infant or toddler, to assist 
        appropriately in the development of the infant or toddler.
            ``(4) For each infant or toddler with a disability in the 
        State, an individualized family service plan in accordance with 
        section 636, including service coordination services in 
        accordance with such service plan.
            ``(5) A comprehensive child find system, consistent with 
        part B, including a system for making referrals to service 
        providers that includes timelines and provides for participation 
        by primary referral sources and that ensures rigorous standards 
        for appropriately identifying infants and toddlers with 
        disabilities for services under this part that will reduce the 
        need for future services.
            ``(6) A public awareness program focusing on early 
        identification of infants and toddlers with disabilities, 
        including the preparation and dissemination by the lead agency 
        designated or established under paragraph (10) to all primary 
        referral sources, especially hospitals and physicians, of 
        information to be given to parents, especially to inform parents 
        with premature infants, or infants with other physical risk 
        factors associated with learning or developmental complications, 
        on the availability of early intervention services under this 
        part and of services under section 619, and procedures for 
        assisting such sources in disseminating such information to 
        parents of infants and toddlers with disabilities.
            ``(7) A central directory that includes information on early 
        intervention services, resources, and experts available in the 
        State and research and demonstration projects being conducted in 
        the State.
            ``(8) A comprehensive system of personnel development, 
        including the training of paraprofessionals and the training of 
        primary referral sources with respect to the basic components of 
        early intervention services available in the State that--
                    ``(A) shall include--
                          ``(i) implementing innovative strategies and 
                      activities for the recruitment and retention of 
                      early education service providers;
                          ``(ii) promoting the preparation of early 
                      intervention providers who are fully and 
                      appropriately qualified

[[Page 118 STAT. 2748]]

                      to provide early intervention services under this 
                      part; and
                          ``(iii) training personnel to coordinate 
                      transition services for infants and toddlers 
                      served under this part from a program providing 
                      early intervention services under this part and 
                      under part B (other than section 619), to a 
                      preschool program receiving funds under section 
                      619, or another appropriate program; and
                    ``(B) may include--
                          ``(i) training personnel to work in rural and 
                      inner-city areas; and
                          ``(ii) training personnel in the emotional and 
                      social development of young children.
            ``(9) Policies and procedures relating to the establishment 
        and maintenance of qualifications to ensure that personnel 
        necessary to carry out this part are appropriately and 
        adequately prepared and trained, including the establishment and 
        maintenance of qualifications that are consistent with any 
        State-approved or recognized certification, licensing, 
        registration, or other comparable requirements that apply to the 
        area in which such personnel are providing early intervention 
        services, except that nothing in this part (including this 
        paragraph) shall be construed to prohibit the use of 
        paraprofessionals and assistants who are appropriately trained 
        and supervised in accordance with State law, regulation, or 
        written policy, to assist in the provision of early intervention 
        services under this part to infants and toddlers with 
        disabilities.
            ``(10) A single line of responsibility in a lead agency 
        designated or established by the Governor for carrying out--
                    ``(A) the general administration and supervision of 
                programs and activities receiving assistance under 
                section 633, and the monitoring of programs and 
                activities used by the State to carry out this part, 
                whether or not such programs or activities are receiving 
                assistance made available under section 633, to ensure 
                that the State complies with this part;
                    ``(B) the identification and coordination of all 
                available resources within the State from Federal, 
                State, local, and private sources;
                    ``(C) the assignment of financial responsibility in 
                accordance with section 637(a)(2) to the appropriate 
                agencies;
                    ``(D) the development of procedures to ensure that 
                services are provided to infants and toddlers with 
                disabilities and their families under this part in a 
                timely manner pending the resolution of any disputes 
                among public agencies or service providers;
                    ``(E) the resolution of intra- and interagency 
                disputes; and
                    ``(F) the entry into formal interagency agreements 
                that define the financial responsibility of each agency 
                for paying for early intervention services (consistent 
                with State law) and procedures for resolving disputes 
                and that include all additional components necessary to 
                ensure meaningful cooperation and coordination.

[[Page 118 STAT. 2749]]

            ``(11) A policy pertaining to the contracting or making of 
        other arrangements with service providers to provide early 
        intervention services in the State, consistent with the 
        provisions of this part, including the contents of the 
        application used and the conditions of the contract or other 
        arrangements.
            ``(12) A procedure for securing timely reimbursements of 
        funds used under this part in accordance with section 640(a).
            ``(13) Procedural safeguards with respect to programs under 
        this part, as required by section 639.
            ``(14) A system for compiling data requested by the 
        Secretary under section 618 that relates to this part.
            ``(15) A State interagency coordinating council that meets 
        the requirements of section 641.
            ``(16) Policies and procedures to ensure that, consistent 
        with section 636(d)(5)--
                    ``(A) to the maximum extent appropriate, early 
                intervention services are provided in natural 
                environments; and
                    ``(B) the provision of early intervention services 
                for any infant or toddler with a disability occurs in a 
                setting other than a natural environment that is most 
                appropriate, as determined by the parent and the 
                individualized family service plan team, only when early 
                intervention cannot be achieved satisfactorily for the 
                infant or toddler in a natural environment.

    ``(b) Policy.--In implementing subsection (a)(9), a State may adopt 
a policy that includes making ongoing good-faith efforts to recruit and 
hire appropriately and adequately trained personnel to provide early 
intervention services to infants and toddlers with disabilities, 
including, in a geographic area of the State where there is a shortage 
of such personnel, the most qualified individuals available who are 
making satisfactory progress toward completing applicable course work 
necessary to meet the standards described in subsection (a)(9).
    ``(c) Flexibility To Serve Children 3 Years of Age Until Entrance 
Into Elementary School.--
            ``(1) In general.--A statewide system described in section 
        633 may include a State policy, developed and implemented 
        jointly by the lead agency and the State educational agency, 
        under which parents of children with disabilities who are 
        eligible for services under section 619 and previously received 
        services under this part, may choose the continuation of early 
        intervention services (which shall include an educational 
        component that promotes school readiness and incorporates 
        preliteracy, language, and numeracy skills) for such children 
        under this part until such children enter, or are eligible under 
        State law to enter, kindergarten.
            ``(2) Requirements.--If a statewide system includes a State 
        policy described in paragraph (1), the statewide system shall 
        ensure that--
                    ``(A) parents of children with disabilities served 
                pursuant to this subsection are provided annual notice 
                that contains--
                          ``(i) a description of the rights of such 
                      parents to elect to receive services pursuant to 
                      this subsection or under part B; and

[[Page 118 STAT. 2750]]

                          ``(ii) an explanation of the differences 
                      between services provided pursuant to this 
                      subsection and services provided under part B, 
                      including--
                                    ``(I) types of services and the 
                                locations at which the services are 
                                provided;
                                    ``(II) applicable procedural 
                                safeguards; and
                                    ``(III) possible costs (including 
                                any fees to be charged to families as 
                                described in section 632(4)(B)), if any, 
                                to parents of infants or toddlers with 
                                disabilities;
                    ``(B) services provided pursuant to this subsection 
                include an educational component that promotes school 
                readiness and incorporates preliteracy, language, and 
                numeracy skills;
                    ``(C) the State policy will not affect the right of 
                any child served pursuant to this subsection to instead 
                receive a free appropriate public education under part 
                B;
                    ``(D) all early intervention services outlined in 
                the child's individualized family service plan under 
                section 636 are continued while any eligibility 
                determination is being made for services under this 
                subsection;
                    ``(E) the parents of infants or toddlers with 
                disabilities (as defined in section 632(5)(A)) provide 
                informed written consent to the State, before such 
                infants or toddlers reach 3 years of age, as to whether 
                such parents intend to choose the continuation of early 
                intervention services pursuant to this subsection for 
                such infants or toddlers;
                    ``(F) the requirements under section 637(a)(9) shall 
                not apply with respect to a child who is receiving 
                services in accordance with this subsection until not 
                less than 90 days (and at the discretion of the parties 
                to the conference, not more than 9 months) before the 
                time the child will no longer receive those services; 
                and
                    ``(G) there will be a referral for evaluation for 
                early intervention services of a child who experiences a 
                substantiated case of trauma due to exposure to family 
                violence (as defined in section 320 of the Family 
                Violence Prevention and Services Act).
            ``(3) Reporting requirement.--If a statewide system includes 
        a State policy described in paragraph (1), the State shall 
        submit to the Secretary, in the State's report under section 
        637(b)(4)(A), a report on the number and percentage of children 
        with disabilities who are eligible for services under section 
        619 but whose parents choose for such children to continue to 
        receive early intervention services under this part.
            ``(4) Available funds.--If a statewide system includes a 
        State policy described in paragraph (1), the policy shall 
        describe the funds (including an identification as Federal, 
        State, or local funds) that will be used to ensure that the 
        option described in paragraph (1) is available to eligible 
        children and families who provide the consent described in 
        paragraph (2)(E), including fees (if any) to be charged to 
        families as described in section 632(4)(B).
            ``(5) Rules of construction.--
                    ``(A) Services under part b.--If a statewide system 
                includes a State policy described in paragraph (1), a 
                State that provides services in accordance with this 
                subsection

[[Page 118 STAT. 2751]]

                to a child with a disability who is eligible for 
                services under section 619 shall not be required to 
                provide the child with a free appropriate public 
                education under part B for the period of time in which 
                the child is receiving services under this part.
                    ``(B) Services under this part.--Nothing in this 
                subsection shall be construed to require a provider of 
                services under this part to provide a child served under 
                this part with a free appropriate public education.

``SEC. 636. <<NOTE: 20 USC 1436.>> INDIVIDUALIZED FAMILY SERVICE PLAN.

    ``(a) Assessment and Program Development.--A statewide system 
described in section 633 shall provide, at a minimum, for each infant or 
toddler with a disability, and the infant's or toddler's family, to 
receive--
            ``(1) a multidisciplinary assessment of the unique strengths 
        and needs of the infant or toddler and the identification of 
        services appropriate to meet such needs;
            ``(2) a family-directed assessment of the resources, 
        priorities, and concerns of the family and the identification of 
        the supports and services necessary to enhance the family's 
        capacity to meet the developmental needs of the infant or 
        toddler; and
            ``(3) a written individualized family service plan developed 
        by a multidisciplinary team, including the parents, as required 
        by subsection (e), including a description of the appropriate 
        transition services for the infant or toddler.

    ``(b) Periodic Review.--The individualized family service plan shall 
be evaluated once a year and the family shall be provided a review of 
the plan at 6-month intervals (or more often where appropriate based on 
infant or toddler and family needs).
    ``(c) Promptness After Assessment.--The individualized family 
service plan shall be developed within a reasonable time after the 
assessment required by subsection (a)(1) is completed. With the parents' 
consent, early intervention services may commence prior to the 
completion of the assessment.
    ``(d) Content of Plan.--The individualized family service plan shall 
be in writing and contain--
            ``(1) a statement of the infant's or toddler's present 
        levels of physical development, cognitive development, 
        communication development, social or emotional development, and 
        adaptive development, based on objective criteria;
            ``(2) a statement of the family's resources, priorities, and 
        concerns relating to enhancing the development of the family's 
        infant or toddler with a disability;
            ``(3) a statement of the measurable results or outcomes 
        expected to be achieved for the infant or toddler and the 
        family, including pre-literacy and language skills, as 
        developmentally appropriate for the child, and the criteria, 
        procedures, and timelines used to determine the degree to which 
        progress toward achieving the results or outcomes is being made 
        and whether modifications or revisions of the results or 
        outcomes or services are necessary;
            ``(4) a statement of specific early intervention services 
        based on peer-reviewed research, to the extent practicable, 
        necessary to meet the unique needs of the infant or toddler and 
        the family, including the frequency, intensity, and method of 
        delivering services;

[[Page 118 STAT. 2752]]

            ``(5) a statement of the natural environments in which early 
        intervention services will appropriately be provided, including 
        a justification of the extent, if any, to which the services 
        will not be provided in a natural environment;
            ``(6) the projected dates for initiation of services and the 
        anticipated length, duration, and frequency of the services;
            ``(7) the identification of the service coordinator from the 
        profession most immediately relevant to the infant's or 
        toddler's or family's needs (or who is otherwise qualified to 
        carry out all applicable responsibilities under this part) who 
        will be responsible for the implementation of the plan and 
        coordination with other agencies and persons, including 
        transition services; and
            ``(8) the steps to be taken to support the transition of the 
        toddler with a disability to preschool or other appropriate 
        services.

    ``(e) Parental Consent.--The contents of the individualized family 
service plan shall be fully explained to the parents and informed 
written consent from the parents shall be obtained prior to the 
provision of early intervention services described in such plan. If the 
parents do not provide consent with respect to a particular early 
intervention service, then only the early intervention services to which 
consent is obtained shall be provided.

``SEC. 637. <<NOTE: 20 USC 1437.>> STATE APPLICATION AND ASSURANCES.

    ``(a) Application.--A State desiring to receive a grant under 
section 633 shall submit an application to the Secretary at such time 
and in such manner as the Secretary may reasonably require. The 
application shall contain--
            ``(1) a designation of the lead agency in the State that 
        will be responsible for the administration of funds provided 
        under section 633;
            ``(2) a certification to the Secretary that the arrangements 
        to establish financial responsibility for services provided 
        under this part pursuant to section 640(b) are current as of the 
        date of submission of the certification;
            ``(3) information demonstrating eligibility of the State 
        under section 634, including--
                    ``(A) information demonstrating to the Secretary's 
                satisfaction that the State has in effect the statewide 
                system required by section 633; and
                    ``(B) a description of services to be provided to 
                infants and toddlers with disabilities and their 
                families through the system;
            ``(4) if the State provides services to at-risk infants and 
        toddlers through the statewide system, a description of such 
        services;
            ``(5) a description of the uses for which funds will be 
        expended in accordance with this part;
            ``(6) a description of the State policies and procedures 
        that require the referral for early intervention services under 
        this part of a child under the age of 3 who--
                    ``(A) is involved in a substantiated case of child 
                abuse or neglect; or
                    ``(B) is identified as affected by illegal substance 
                abuse, or withdrawal symptoms resulting from prenatal 
                drug exposure;

[[Page 118 STAT. 2753]]

            ``(7) a description of the procedure used to ensure that 
        resources are made available under this part for all geographic 
        areas within the State;
            ``(8) a description of State policies and procedures that 
        ensure that, prior to the adoption by the State of any other 
        policy or procedure necessary to meet the requirements of this 
        part, there are public hearings, adequate notice of the 
        hearings, and an opportunity for comment available to the 
        general public, including individuals with disabilities and 
        parents of infants and toddlers with disabilities;
            ``(9) a description of the policies and procedures to be 
        used--
                    ``(A) to ensure a smooth transition for toddlers 
                receiving early intervention services under this part 
                (and children receiving those services under section 
                635(c)) to preschool, school, other appropriate 
                services, or exiting the program, including a 
                description of how--
                          ``(i) the families of such toddlers and 
                      children will be included in the transition plans 
                      required by subparagraph (C); and
                          ``(ii) the lead agency designated or 
                      established under section 635(a)(10) will--
                                    ``(I) notify the local educational 
                                agency for the area in which such a 
                                child resides that the child will 
                                shortly reach the age of eligibility for 
                                preschool services under part B, as 
                                determined in accordance with State law;
                                    ``(II) in the case of a child who 
                                may be eligible for such preschool 
                                services, with the approval of the 
                                family of the child, convene a 
                                conference among the lead agency, the 
                                family, and the local educational agency 
                                not less than 90 days (and at the 
                                discretion of all such parties, not more 
                                than 9 months) before the child is 
                                eligible for the preschool services, to 
                                discuss any such services that the child 
                                may receive; and
                                    ``(III) in the case of a child who 
                                may not be eligible for such preschool 
                                services, with the approval of the 
                                family, make reasonable efforts to 
                                convene a conference among the lead 
                                agency, the family, and providers of 
                                other appropriate services for children 
                                who are not eligible for preschool 
                                services under part B, to discuss the 
                                appropriate services that the child may 
                                receive;
                    ``(B) to review the child's program options for the 
                period from the child's third birthday through the 
                remainder of the school year; and
                    ``(C) to establish a transition plan, including, as 
                appropriate, steps to exit from the program;
            ``(10) a description of State efforts to promote 
        collaboration among Early Head Start programs under section 645A 
        of the Head Start Act, early education and child care programs, 
        and services under part C; and
            ``(11) such other information and assurances as the 
        Secretary may reasonably require.

    ``(b) Assurances.--The application described in subsection (a)--

[[Page 118 STAT. 2754]]

            ``(1) shall provide satisfactory assurance that Federal 
        funds made available under section 643 to the State will be 
        expended in accordance with this part;
            ``(2) shall contain an assurance that the State will comply 
        with the requirements of section 640;
            ``(3) shall provide satisfactory assurance that the control 
        of funds provided under section 643, and title to property 
        derived from those funds, will be in a public agency for the 
        uses and purposes provided in this part and that a public agency 
        will administer such funds and property;
            ``(4) shall provide for--
                    ``(A) making such reports in such form and 
                containing such information as the Secretary may require 
                to carry out the Secretary's functions under this part; 
                and
                    ``(B) keeping such reports and affording such access 
                to the reports as the Secretary may find necessary to 
                ensure the correctness and verification of those reports 
                and proper disbursement of Federal funds under this 
                part;
            ``(5) provide satisfactory assurance that Federal funds made 
        available under section 643 to the State--
                    ``(A) will not be commingled with State funds; and
                    ``(B) will be used so as to supplement the level of 
                State and local funds expended for infants and toddlers 
                with disabilities and their families and in no case to 
                supplant those State and local funds;
            ``(6) shall provide satisfactory assurance that such fiscal 
        control and fund accounting procedures will be adopted as may be 
        necessary to ensure proper disbursement of, and accounting for, 
        Federal funds paid under section 643 to the State;
            ``(7) shall provide satisfactory assurance that policies and 
        procedures have been adopted to ensure meaningful involvement of 
        underserved groups, including minority, low-income, homeless, 
        and rural families and children with disabilities who are wards 
        of the State, in the planning and implementation of all the 
        requirements of this part; and
            ``(8) shall contain such other information and assurances as 
        the Secretary may reasonably require by regulation.

    ``(c) Standard for Disapproval of Application.--The Secretary may 
not disapprove such an application unless the Secretary determines, 
after notice and opportunity for a hearing, that the application fails 
to comply with the requirements of this section.
    ``(d) Subsequent State Application.--If a State has on file with the 
Secretary a policy, procedure, or assurance that demonstrates that the 
State meets a requirement of this section, including any policy or 
procedure filed under this part (as in effect before the date of 
enactment of the Individuals with Disabilities Education Improvement Act 
of 2004), the Secretary shall consider the State to have met the 
requirement for purposes of receiving a grant under this part.
    ``(e) Modification of Application.--An application submitted by a 
State in accordance with this section shall remain in effect until the 
State submits to the Secretary such modifications as the State 
determines necessary. This section shall apply to a modification of an 
application to the same extent and in the same manner as this section 
applies to the original application.

[[Page 118 STAT. 2755]]

    ``(f) Modifications Required by the Secretary.--The Secretary may 
require a State to modify its application under this section, but only 
to the extent necessary to ensure the State's compliance with this part, 
if--
            ``(1) an amendment is made to this title, or a Federal 
        regulation issued under this title;
            ``(2) a new interpretation of this title is made by a 
        Federal court or the State's highest court; or
            ``(3) an official finding of noncompliance with Federal law 
        or regulations is made with respect to the State.

``SEC. 638. <<NOTE: 20 USC 1438.>> USES OF FUNDS.

    ``In addition to using funds provided under section 633 to maintain 
and implement the statewide system required by such section, a State may 
use such funds--
            ``(1) for direct early intervention services for infants and 
        toddlers with disabilities, and their families, under this part 
        that are not otherwise funded through other public or private 
        sources;
            ``(2) to expand and improve on services for infants and 
        toddlers and their families under this part that are otherwise 
        available;
            ``(3) to provide a free appropriate public education, in 
        accordance with part B, to children with disabilities from their 
        third birthday to the beginning of the following school year;
            ``(4) with the written consent of the parents, to continue 
        to provide early intervention services under this part to 
        children with disabilities from their 3rd birthday until such 
        children enter, or are eligible under State law to enter, 
        kindergarten, in lieu of a free appropriate public education 
        provided in accordance with part B; and
            ``(5) in any State that does not provide services for at-
        risk infants and toddlers under section 637(a)(4), to strengthen 
        the statewide system by initiating, expanding, or improving 
        collaborative efforts related to at-risk infants and toddlers, 
        including establishing linkages with appropriate public or 
        private community-based organizations, services, and personnel 
        for the purposes of--
                    ``(A) identifying and evaluating at-risk infants and 
                toddlers;
                    ``(B) making referrals of the infants and toddlers 
                identified and evaluated under subparagraph (A); and
                    ``(C) conducting periodic follow-up on each such 
                referral to determine if the status of the infant or 
                toddler involved has changed with respect to the 
                eligibility of the infant or toddler for services under 
                this part.

``SEC. 639. <<NOTE: 20 USC 1439.>> PROCEDURAL SAFEGUARDS.

    ``(a) Minimum Procedures.--The procedural safeguards required to be 
included in a statewide system under section 635(a)(13) shall provide, 
at a minimum, the following:
            ``(1) The timely administrative resolution of complaints by 
        parents. Any party aggrieved by the findings and decision 
        regarding an administrative complaint shall have the right to 
        bring a civil action with respect to the complaint in any State 
        court of competent jurisdiction or in a district court of the 
        United States without regard to the amount in controversy. In 
        any action brought under this paragraph, the court

[[Page 118 STAT. 2756]]

        shall receive the records of the administrative proceedings, 
        shall hear additional evidence at the request of a party, and, 
        basing its decision on the preponderance of the evidence, shall 
        grant such relief as the court determines is appropriate.
            ``(2) The right to confidentiality of personally 
        identifiable information, including the right of parents to 
        written notice of and written consent to the exchange of such 
        information among agencies consistent with Federal and State 
        law.
            ``(3) The right of the parents to determine whether they, 
        their infant or toddler, or other family members will accept or 
        decline any early intervention service under this part in 
        accordance with State law without jeopardizing other early 
        intervention services under this part.
            ``(4) The opportunity for parents to examine records 
        relating to assessment, screening, eligibility determinations, 
        and the development and implementation of the individualized 
        family service plan.
            ``(5) Procedures to protect the rights of the infant or 
        toddler whenever the parents of the infant or toddler are not 
        known or cannot be found or the infant or toddler is a ward of 
        the State, including the assignment of an individual (who shall 
        not be an employee of the State lead agency, or other State 
        agency, and who shall not be any person, or any employee of a 
        person, providing early intervention services to the infant or 
        toddler or any family member of the infant or toddler) to act as 
        a surrogate for the parents.
            ``(6) Written prior notice to the parents of the infant or 
        toddler with a disability whenever the State agency or service 
        provider proposes to initiate or change, or refuses to initiate 
        or change, the identification, evaluation, or placement of the 
        infant or toddler with a disability, or the provision of 
        appropriate early intervention services to the infant or 
        toddler.
            ``(7) Procedures designed to ensure that the notice required 
        by paragraph (6) fully informs the parents, in the parents' 
        native language, unless it clearly is not feasible to do so, of 
        all procedures available pursuant to this section.
            ``(8) The right of parents to use mediation in accordance 
        with section 615, except that--
                    ``(A) any reference in the section to a State 
                educational agency shall be considered to be a reference 
                to a State's lead agency established or designated under 
                section 635(a)(10);
                    ``(B) any reference in the section to a local 
                educational agency shall be considered to be a reference 
                to a local service provider or the State's lead agency 
                under this part, as the case may be; and
                    ``(C) any reference in the section to the provision 
                of a free appropriate public education to children with 
                disabilities shall be considered to be a reference to 
                the provision of appropriate early intervention services 
                to infants and toddlers with disabilities.

    ``(b) Services During Pendency of Proceedings.--During the pendency 
of any proceeding or action involving a complaint by the parents of an 
infant or toddler with a disability, unless the State agency and the 
parents otherwise agree, the infant or toddler shall continue to receive 
the appropriate early intervention

[[Page 118 STAT. 2757]]

services currently being provided or, if applying for initial services, 
shall receive the services not in dispute.

``SEC. 640. <<NOTE: 20 USC 1440.>> PAYOR OF LAST RESORT.

    ``(a) Nonsubstitution.--Funds provided under section 643 may not be 
used to satisfy a financial commitment for services that would have been 
paid for from another public or private source, including any medical 
program administered by the Secretary of Defense, but for the enactment 
of this part, except that whenever considered necessary to prevent a 
delay in the receipt of appropriate early intervention services by an 
infant, toddler, or family in a timely fashion, funds provided under 
section 643 may be used to pay the provider of services pending 
reimbursement from the agency that has ultimate responsibility for the 
payment.
    ``(b) Obligations Related to and Methods of Ensuring Services.--
            ``(1) Establishing financial responsibility for services.--
                    ``(A) In general.--The Chief Executive Officer of a 
                State or designee of the officer shall ensure that an 
                interagency agreement or other mechanism for interagency 
                coordination is in effect between each public agency and 
                the designated lead agency, in order to ensure--
                          ``(i) the provision of, and financial 
                      responsibility for, services provided under this 
                      part; and
                          ``(ii) such services are consistent with the 
                      requirements of section 635 and the State's 
                      application pursuant to section 637, including the 
                      provision of such services during the pendency of 
                      any such dispute.
                    ``(B) Consistency between agreements or mechanisms 
                under part b.--The Chief Executive Officer of a State or 
                designee of the officer shall ensure that the terms and 
                conditions of such agreement or mechanism are consistent 
                with the terms and conditions of the State's agreement 
                or mechanism under section 612(a)(12), where 
                appropriate.
            ``(2) Reimbursement for services by public agency.--
                    ``(A) In general.--If a public agency other than an 
                educational agency fails to provide or pay for the 
                services pursuant to an agreement required under 
                paragraph (1), the local educational agency or State 
                agency (as determined by the Chief Executive Officer or 
                designee) shall provide or pay for the provision of such 
                services to the child.
                    ``(B) Reimbursement.--Such local educational agency 
                or State agency is authorized to claim reimbursement for 
                the services from the public agency that failed to 
                provide or pay for such services and such public agency 
                shall reimburse the local educational agency or State 
                agency pursuant to the terms of the interagency 
                agreement or other mechanism required under paragraph 
                (1).
            ``(3) Special rule.--The requirements of paragraph (1) may 
        be met through--
                    ``(A) State statute or regulation;
                    ``(B) signed agreements between respective agency 
                officials that clearly identify the responsibilities of 
                each agency relating to the provision of services; or

[[Page 118 STAT. 2758]]

                    ``(C) other appropriate written methods as 
                determined by the Chief Executive Officer of the State 
                or designee of the officer and approved by the Secretary 
                through the review and approval of the State's 
                application pursuant to section 637.

    ``(c) Reduction of Other Benefits.--Nothing in this part shall be 
construed to permit the State to reduce medical or other assistance 
available or to alter eligibility under title V of the Social Security 
Act (relating to maternal and child health) or title XIX of the Social 
Security Act (relating to medicaid for infants or toddlers with 
disabilities) within the State.

``SEC. 641. <<NOTE: 20 USC 1441.>> STATE INTERAGENCY COORDINATING 
            COUNCIL.

    ``(a) Establishment.--
            ``(1) In general.--A State that desires to receive financial 
        assistance under this part shall establish a State interagency 
        coordinating council.
            ``(2) Appointment.--The council shall be appointed by the 
        Governor. In making appointments to the council, the Governor 
        shall ensure that the membership of the council reasonably 
        represents the population of the State.
            ``(3) Chairperson.--The Governor shall designate a member of 
        the council to serve as the chairperson of the council, or shall 
        require the council to so designate such a member. Any member of 
        the council who is a representative of the lead agency 
        designated under section 635(a)(10) may not serve as the 
        chairperson of the council.

    ``(b) Composition.--
            ``(1) In general.--The council shall be composed as follows:
                    ``(A) Parents.--Not less than 20 percent of the 
                members shall be parents of infants or toddlers with 
                disabilities or children with disabilities aged 12 or 
                younger, with knowledge of, or experience with, programs 
                for infants and toddlers with disabilities. Not less 
                than 1 such member shall be a parent of an infant or 
                toddler with a disability or a child with a disability 
                aged 6 or younger.
                    ``(B) Service providers.--Not less than 20 percent 
                of the members shall be public or private providers of 
                early intervention services.
                    ``(C) State legislature.--Not less than 1 member 
                shall be from the State legislature.
                    ``(D) Personnel preparation.--Not less than 1 member 
                shall be involved in personnel preparation.
                    ``(E) Agency for early intervention services.--Not 
                less than 1 member shall be from each of the State 
                agencies involved in the provision of, or payment for, 
                early intervention services to infants and toddlers with 
                disabilities and their families and shall have 
                sufficient authority to engage in policy planning and 
                implementation on behalf of such agencies.
                    ``(F) Agency for preschool services.--Not less than 
                1 member shall be from the State educational agency 
                responsible for preschool services to children with 
                disabilities and shall have sufficient authority to 
                engage in policy planning and implementation on behalf 
                of such agency.

[[Page 118 STAT. 2759]]

                    ``(G) State medicaid agency.--Not less than 1 member 
                shall be from the agency responsible for the State 
                medicaid program.
                    ``(H) Head start agency.--Not less than 1 member 
                shall be a representative from a Head Start agency or 
                program in the State.
                    ``(I) Child care agency.--Not less than 1 member 
                shall be a representative from a State agency 
                responsible for child care.
                    ``(J) Agency for health insurance.--Not less than 1 
                member shall be from the agency responsible for the 
                State regulation of health insurance.
                    ``(K) Office of the coordinator of education of 
                homeless children and youth.--Not less than 1 member 
                shall be a representative designated by the Office of 
                Coordinator for Education of Homeless Children and 
                Youths.
                    ``(L) State foster care representative.--Not less 
                than 1 member shall be a representative from the State 
                child welfare agency responsible for foster care.
                    ``(M) Mental health agency.--Not less than 1 member 
                shall be a representative from the State agency 
                responsible for children's mental health.
            ``(2) Other members.--The council may include other members 
        selected by the Governor, including a representative from the 
        Bureau of Indian Affairs (BIA), or where there is no BIA-
        operated or BIA-funded school, from the Indian Health Service or 
        the tribe or tribal council.

    ``(c) Meetings.--The council shall meet, at a minimum, on a 
quarterly basis, and in such places as the council determines necessary. 
The meetings shall be publicly announced, and, to the extent 
appropriate, open and accessible to the general public.
    ``(d) Management Authority.--Subject to the approval of the 
Governor, the council may prepare and approve a budget using funds under 
this part to conduct hearings and forums, to reimburse members of the 
council for reasonable and necessary expenses for attending council 
meetings and performing council duties (including child care for parent 
representatives), to pay compensation to a member of the council if the 
member is not employed or must forfeit wages from other employment when 
performing official council business, to hire staff, and to obtain the 
services of such professional, technical, and clerical personnel as may 
be necessary to carry out its functions under this part.
    ``(e) Functions of Council.--
            ``(1) Duties.--The council shall--
                    ``(A) advise and assist the lead agency designated 
                or established under section 635(a)(10) in the 
                performance of the responsibilities set forth in such 
                section, particularly the identification of the sources 
                of fiscal and other support for services for early 
                intervention programs, assignment of financial 
                responsibility to the appropriate agency, and the 
                promotion of the interagency agreements;
                    ``(B) advise and assist the lead agency in the 
                preparation of applications and amendments thereto;
                    ``(C) advise and assist the State educational agency 
                regarding the transition of toddlers with disabilities 
                to preschool and other appropriate services; and

[[Page 118 STAT. 2760]]

                    ``(D) <<NOTE: Reports.>> prepare and submit an 
                annual report to the Governor and to the Secretary on 
                the status of early intervention programs for infants 
                and toddlers with disabilities and their families 
                operated within the State.
            ``(2) Authorized activity.--The council may advise and 
        assist the lead agency and the State educational agency 
        regarding the provision of appropriate services for children 
        from birth through age 5. The council may advise appropriate 
        agencies in the State with respect to the integration of 
        services for infants and toddlers with disabilities and at-risk 
        infants and toddlers and their families, regardless of whether 
        at-risk infants and toddlers are eligible for early intervention 
        services in the State.

    ``(f) Conflict of Interest.--No member of the council shall cast a 
vote on any matter that is likely to provide a direct financial benefit 
to that member or otherwise give the appearance of a conflict of 
interest under State law.

``SEC. 642. <<NOTE: Applicability. 20 USC 1442.>> FEDERAL 
            ADMINISTRATION.

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

``SEC. 643. <<NOTE: 20 USC 1443.>> ALLOCATION OF FUNDS.

    ``(a) Reservation of Funds for Outlying Areas.--
            ``(1) In general.--From the sums appropriated to carry out 
        this part for any fiscal year, the Secretary may reserve not 
        more than 1 percent for payments to Guam, American Samoa, the 
        United States Virgin Islands, and the Commonwealth of the 
        Northern Mariana Islands in accordance with their respective 
        needs for assistance under this part.
            ``(2) Consolidation of funds.--The provisions of Public Law 
        95-134, permitting the consolidation of grants to the outlying 
        areas, shall not apply to funds those areas receive under this 
        part.

    ``(b) Payments to Indians.--
            ``(1) In general.--The Secretary shall, subject to this 
        subsection, make payments to the Secretary of the Interior to be 
        distributed to tribes, tribal organizations (as defined under 
        section 4 of the Indian Self-Determination and Education 
        Assistance Act), or consortia of the above entities for the 
        coordination of assistance in the provision of early 
        intervention services by the States to infants and toddlers with 
        disabilities and their families on reservations served by 
        elementary schools and secondary schools for Indian children 
        operated or funded by the Department of the Interior. The amount 
        of such payment

[[Page 118 STAT. 2761]]

        for any fiscal year shall be 1.25 percent of the aggregate of 
        the amount available to all States under this part for such 
        fiscal year.
            ``(2) Allocation.--For each fiscal year, the Secretary of 
        the Interior shall distribute the entire payment received under 
        paragraph (1) by providing to each tribe, tribal organization, 
        or consortium an amount based on the number of infants and 
        toddlers residing on the reservation, as determined annually, 
        divided by the total of such children served by all tribes, 
        tribal organizations, or consortia.
            ``(3) Information.--To receive a payment under this 
        subsection, the tribe, tribal organization, or consortium shall 
        submit such information to the Secretary of the Interior as is 
        needed to determine the amounts to be distributed under 
        paragraph (2).
            ``(4) Use of funds.--The funds received by a tribe, tribal 
        organization, or consortium shall be used to assist States in 
        child find, screening, and other procedures for the early 
        identification of Indian children under 3 years of age and for 
        parent training. Such funds may also be used to provide early 
        intervention services in accordance with this part. Such 
        activities may be carried out directly or through contracts or 
        cooperative agreements with the Bureau of Indian Affairs, local 
        educational agencies, and other public or private nonprofit 
        organizations. The tribe, tribal organization, or consortium is 
        encouraged to involve Indian parents in the development and 
        implementation of these activities. The above entities shall, as 
        appropriate, make referrals to local, State, or Federal entities 
        for the provision of services or further diagnosis.
            ``(5) Reports.--To be eligible to receive a payment under 
        paragraph (2), a tribe, tribal organization, or consortium shall 
        make a biennial report to the Secretary of the Interior of 
        activities undertaken under this subsection, including the 
        number of contracts and cooperative agreements entered into, the 
        number of infants and toddlers contacted and receiving services 
        for each year, and the estimated number of infants and toddlers 
        needing services during the 2 years following the year in which 
        the report is made. The Secretary of the Interior shall include 
        a summary of this information on a biennial basis to the 
        Secretary of Education along with such other information as 
        required under section 611(h)(3)(E). The Secretary of Education 
        may require any additional information from the Secretary of the 
        Interior.
            ``(6) Prohibited uses of funds.--None of the funds under 
        this subsection may be used by the Secretary of the Interior for 
        administrative purposes, including child count, and the 
        provision of technical assistance.

    ``(c) State Allotments.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), from the funds remaining for each fiscal year after the 
        reservation and payments under subsections (a), (b), and (e), 
        the Secretary shall first allot to each State an amount that 
        bears the same ratio to the amount of such remainder as the 
        number of infants and toddlers in the State bears to the number 
        of infants and toddlers in all States.

[[Page 118 STAT. 2762]]

            ``(2) Minimum allotments.--Except as provided in paragraph 
        (3), no State shall receive an amount under this section for any 
        fiscal year that is less than the greater of--
                    ``(A) \1/2\ of 1 percent of the remaining amount 
                described in paragraph (1); or
                    ``(B) $500,000.
            ``(3) Ratable reduction.--
                    ``(A) In general.--If the sums made available under 
                this part for any fiscal year are insufficient to pay 
                the full amounts that all States are eligible to receive 
                under this subsection for such year, the Secretary shall 
                ratably reduce the allotments to such States for such 
                year.
                    ``(B) Additional funds.--If additional funds become 
                available for making payments under this subsection for 
                a fiscal year, allotments that were reduced under 
                subparagraph (A) shall be increased on the same basis 
                the allotments were reduced.
            ``(4) Definitions.--In this subsection--
                    ``(A) the terms `infants' and `toddlers' mean 
                children under 3 years of age; and
                    ``(B) the term `State' means each of the 50 States, 
                the District of Columbia, and the Commonwealth of Puerto 
                Rico.

    ``(d) Reallotment of Funds.--If a State elects not to receive its 
allotment under subsection (c), the Secretary shall reallot, among the 
remaining States, amounts from such State in accordance with such 
subsection.
    ``(e) Reservation for State Incentive Grants.--
            ``(1) In general.--For any fiscal year for which the amount 
        appropriated pursuant to the authorization of appropriations 
        under section 644 exceeds $460,000,000, the Secretary shall 
        reserve 15 percent of such appropriated amount to provide grants 
        to States that are carrying out the policy described in section 
        635(c) in order to facilitate the implementation of such policy.
            ``(2) Amount of grant.--
                    ``(A) In general.--Notwithstanding paragraphs (2) 
                and (3) of subsection (c), the Secretary shall provide a 
                grant to each State under paragraph (1) in an amount 
                that bears the same ratio to the amount reserved under 
                such paragraph as the number of infants and toddlers in 
                the State bears to the number of infants and toddlers in 
                all States receiving grants under such paragraph.
                    ``(B) Maximum amount.--No State shall receive a 
                grant under paragraph (1) for any fiscal year in an 
                amount that is greater than 20 percent of the amount 
                reserved under such paragraph for the fiscal year.
            ``(3) Carryover of amounts.--
                    ``(A) First succeeding fiscal year.--Pursuant to 
                section 421(b) of the General Education Provisions Act, 
                amounts under a grant provided under paragraph (1) that 
                are not obligated and expended prior to the beginning of 
                the first fiscal year succeeding the fiscal year for 
                which such amounts were appropriated shall remain 
                available for obligation and expenditure during such 
                first succeeding fiscal year.

[[Page 118 STAT. 2763]]

                    ``(B) Second succeeding fiscal year.--Amounts under 
                a grant provided under paragraph (1) that are not 
                obligated and expended prior to the beginning of the 
                second fiscal year succeeding the fiscal year for which 
                such amounts were appropriated shall be returned to the 
                Secretary and used to make grants to States under 
                section 633 (from their allotments under this section) 
                during such second succeeding fiscal year.

``SEC. 644. <<NOTE: 20 USC 1444.>> AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are authorized to 
be appropriated such sums as may be necessary for each of the fiscal 
years 2005 through 2010.

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

``SEC. 650. <<NOTE: 20 USC 1450.>> FINDINGS.

    ``Congress finds the following:
            ``(1) The Federal Government has an ongoing obligation to 
        support activities that contribute to positive results for 
        children with disabilities, enabling those children to lead 
        productive and independent adult lives.
            ``(2) Systemic change benefiting all students, including 
        children with disabilities, requires the involvement of States, 
        local educational agencies, parents, individuals with 
        disabilities and their families, teachers and other service 
        providers, and other interested individuals and organizations to 
        develop and implement comprehensive strategies that improve 
        educational results for children with disabilities.
            ``(3) State educational agencies, in partnership with local 
        educational agencies, parents of children with disabilities, and 
        other individuals and organizations, are in the best position to 
        improve education for children with disabilities and to address 
        their special needs.
            ``(4) An effective educational system serving students with 
        disabilities should--
                    ``(A) maintain high academic achievement standards 
                and clear performance goals for children with 
                disabilities, consistent with the standards and 
                expectations for all students in the educational system, 
                and provide for appropriate and effective strategies and 
                methods to ensure that all children with disabilities 
                have the opportunity to achieve those standards and 
                goals;
                    ``(B) clearly define, in objective, measurable 
                terms, the school and post-school results that children 
                with disabilities are expected to achieve; and
                    ``(C) promote transition services and coordinate 
                State and local education, social, health, mental 
                health, and other services, in addressing the full range 
                of student needs, particularly the needs of children 
                with disabilities who need significant levels of support 
                to participate and learn in school and the community.
            ``(5) The availability of an adequate number of qualified 
        personnel is critical--
                    ``(A) to serve effectively children with 
                disabilities;

[[Page 118 STAT. 2764]]

                    ``(B) to assume leadership positions in 
                administration and direct services;
                    ``(C) to provide teacher training; and
                    ``(D) to conduct high quality research to improve 
                special education.
            ``(6) High quality, comprehensive professional development 
        programs are essential to ensure that the persons responsible 
        for the education or transition of children with disabilities 
        possess the skills and knowledge necessary to address the 
        educational and related needs of those children.
            ``(7) Models of professional development should be 
        scientifically based and reflect successful practices, including 
        strategies for recruiting, preparing, and retaining personnel.
            ``(8) Continued support is essential for the development and 
        maintenance of a coordinated and high quality program of 
        research to inform successful teaching practices and model 
        curricula for educating children with disabilities.
            ``(9) Training, technical assistance, support, and 
        dissemination activities are necessary to ensure that parts B 
        and C are fully implemented and achieve high quality early 
        intervention, educational, and transitional results for children 
        with disabilities and their families.
            ``(10) Parents, teachers, administrators, and related 
        services personnel need technical assistance and information in 
        a timely, coordinated, and accessible manner in order to improve 
        early intervention, educational, and transitional services and 
        results at the State and local levels for children with 
        disabilities and their families.
            ``(11) Parent training and information activities assist 
        parents of a child with a disability in dealing with the 
        multiple pressures of parenting such a child and are of 
        particular importance in--
                    ``(A) playing a vital role in creating and 
                preserving constructive relationships between parents of 
                children with disabilities and schools by facilitating 
                open communication between the parents and schools; 
                encouraging dispute resolution at the earliest possible 
                point in time; and discouraging the escalation of an 
                adversarial process between the parents and schools;
                    ``(B) ensuring the involvement of parents in 
                planning and decisionmaking with respect to early 
                intervention, educational, and transitional services;
                    ``(C) achieving high quality early intervention, 
                educational, and transitional results for children with 
                disabilities;
                    ``(D) providing such parents information on their 
                rights, protections, and responsibilities under this 
                title to ensure improved early intervention, 
                educational, and transitional results for children with 
                disabilities;
                    ``(E) assisting such parents in the development of 
                skills to participate effectively in the education and 
                development of their children and in the transitions 
                described in section 673(b)(6);
                    ``(F) supporting the roles of such parents as 
                participants within partnerships seeking to improve 
                early intervention, educational, and transitional 
                services and results for children with disabilities and 
                their families; and

[[Page 118 STAT. 2765]]

                    ``(G) supporting such parents who may have limited 
                access to services and supports, due to economic, 
                cultural, or linguistic barriers.
            ``(12) Support is needed to improve technological resources 
        and integrate technology, including universally designed 
        technologies, into the lives of children with disabilities, 
        parents of children with disabilities, school personnel, and 
        others through curricula, services, and assistive technologies.

             ``Subpart 1--State Personnel Development Grants

``SEC. 651. <<NOTE: 20 USC 1451.>> PURPOSE; DEFINITION OF PERSONNEL; 
            PROGRAM AUTHORITY.

    ``(a) Purpose.--The purpose of this subpart is to assist State 
educational agencies in reforming and improving their systems for 
personnel preparation and professional development in early 
intervention, educational, and transition services in order to improve 
results for children with disabilities.
    ``(b) Definition of Personnel.--In this subpart the term `personnel' 
means special education teachers, regular education teachers, 
principals, administrators, related services personnel, 
paraprofessionals, and early intervention personnel serving infants, 
toddlers, preschoolers, or children with disabilities, except where a 
particular category of personnel, such as related services personnel, is 
identified.
    ``(c) Competitive Grants.--
            ``(1) In general.--Except as provided in subsection (d), for 
        any fiscal year for which the amount appropriated under section 
        655, that remains after the Secretary reserves funds under 
        subsection (e) for the fiscal year, is less than $100,000,000, 
        the Secretary shall award grants, on a competitive basis, to 
        State educational agencies to carry out the activities described 
        in the State plan submitted under section 653.
            ``(2) Priority.--In awarding grants under paragraph (1), the 
        Secretary may give priority to State educational agencies that--
                    ``(A) are in States with the greatest personnel 
                shortages; or
                    ``(B) demonstrate the greatest difficulty meeting 
                the requirements of section 612(a)(14).
            ``(3) Minimum amount.--The Secretary shall make a grant to 
        each State educational agency selected under paragraph (1) in an 
        amount for each fiscal year that is--
                    ``(A) not less than $500,000, nor more than 
                $4,000,000, in the case of the 50 States, the District 
                of Columbia, and the Commonwealth of Puerto Rico; and
                    ``(B) not less than $80,000 in the case of an 
                outlying area.
            ``(4) Increase in amount.--The Secretary may increase the 
        amounts of grants under paragraph (4) to account for inflation.
            ``(5) Factors.--The Secretary shall determine the amount of 
        a grant under paragraph (1) after considering--
                    ``(A) the amount of funds available for making the 
                grants;
                    ``(B) the relative population of the State or 
                outlying area;

[[Page 118 STAT. 2766]]

                    ``(C) the types of activities proposed by the State 
                or outlying area;
                    ``(D) the alignment of proposed activities with 
                section 612(a)(14);
                    ``(E) the alignment of proposed activities with the 
                State plans and applications submitted under sections 
                1111 and 2112, respectively, of the Elementary and 
                Secondary Education Act of 1965; and
                    ``(F) the use, as appropriate, of scientifically 
                based research activities.

    ``(d) Formula Grants.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), for the first fiscal year for which the amount appropriated 
        under section 655, that remains after the Secretary reserves 
        funds under subsection (e) for the fiscal year, is equal to or 
        greater than $100,000,000, and for each fiscal year thereafter, 
        the Secretary shall allot to each State educational agency, 
        whose application meets the requirements of this subpart, an 
        amount that bears the same relation to the amount remaining as 
        the amount the State received under section 611(d) for that 
        fiscal year bears to the amount of funds received by all States 
        (whose applications meet the requirements of this subpart) under 
        section 611(d) for that fiscal year.
            ``(2) Minimum allotments for states that received 
        competitive grants.--
                    ``(A) In general.--The amount allotted under this 
                subsection to any State educational agency that received 
                a competitive multi-year grant under subsection (c) for 
                which the grant period has not expired shall be not less 
                than the amount specified for that fiscal year in the 
                State educational agency's grant award document under 
                that subsection.
                    ``(B) Special rule.--Each such State educational 
                agency shall use the minimum amount described in 
                subparagraph (A) for the activities described in the 
                State educational agency's competitive grant award 
                document for that year, unless the Secretary approves a 
                request from the State educational agency to spend the 
                funds on other activities.
            ``(3) Minimum allotment.--The amount of any State 
        educational agency's allotment under this subsection for any 
        fiscal year shall not be less than--
                    ``(A) the greater of $500,000 or \1/2\ of 1 percent 
                of the total amount available under this subsection for 
                that year, in the case of each of the 50 States, the 
                District of Columbia, and the Commonwealth of Puerto 
                Rico; and
                    ``(B) $80,000, in the case of an outlying area.
            ``(4) Direct benefit.--In using grant funds allotted under 
        paragraph (1), a State educational agency shall, through grants, 
        contracts, or cooperative agreements, undertake activities that 
        significantly and directly benefit the local educational 
        agencies in the State.

    ``(e) Continuation Awards.--
            ``(1) In general.--Notwithstanding any other provision of 
        this subpart, from funds appropriated under section 655 for each 
        fiscal year, the Secretary shall reserve the amount that

[[Page 118 STAT. 2767]]

        is necessary to make a continuation award to any State 
        educational agency (at the request of the State educational 
        agency) that received a multi-year award under this part (as 
        this part was in effect on the day before the date of enactment 
        of the Individuals with Disabilities Education Improvement Act 
        of 2004), to enable the State educational agency to carry out 
        activities in accordance with the terms of the multi-year award.
            ``(2) Prohibition.--A State educational agency that receives 
        a continuation award under paragraph (1) for any fiscal year may 
        not receive any other award under this subpart for that fiscal 
        year.

``SEC. 652. <<NOTE: 20 USC 1452.>> ELIGIBILITY AND COLLABORATIVE 
            PROCESS.

    ``(a) Eligible Applicants.--A State educational agency may apply for 
a grant under this subpart for a grant period of not less than 1 year 
and not more than 5 years.
    ``(b) Partners.--
            ``(1) In general.--In order to be considered for a grant 
        under this subpart, a State educational agency shall establish a 
        partnership with local educational agencies and other State 
        agencies involved in, or concerned with, the education of 
        children with disabilities, including--
                    ``(A) not less than 1 institution of higher 
                education; and
                    ``(B) the State agencies responsible for 
                administering part C, early education, child care, and 
                vocational rehabilitation programs.
            ``(2) Other partners.--In order to be considered for a grant 
        under this subpart, a State educational agency shall work in 
        partnership with other persons and organizations involved in, 
        and concerned with, the education of children with disabilities, 
        which may include--
                    ``(A) the Governor;
                    ``(B) parents of children with disabilities ages 
                birth through 26;
                    ``(C) parents of nondisabled children ages birth 
                through 26;
                    ``(D) individuals with disabilities;
                    ``(E) parent training and information centers or 
                community parent resource centers funded under sections 
                671 and 672, respectively;
                    ``(F) community based and other nonprofit 
                organizations involved in the education and employment 
                of individuals with disabilities;
                    ``(G) personnel as defined in section 651(b);
                    ``(H) the State advisory panel established under 
                part B;
                    ``(I) the State interagency coordinating council 
                established under part C;
                    ``(J) individuals knowledgeable about vocational 
                education;
                    ``(K) the State agency for higher education;
                    ``(L) public agencies with jurisdiction in the areas 
                of health, mental health, social services, and juvenile 
                justice;
                    ``(M) other providers of professional development 
                that work with infants, toddlers, preschoolers, and 
                children with disabilities; and

[[Page 118 STAT. 2768]]

                    ``(N) other individuals.
            ``(3) Required partner.--If State law assigns responsibility 
        for teacher preparation and certification to an individual, 
        entity, or agency other than the State educational agency, the 
        State educational agency shall--
                    ``(A) include that individual, entity, or agency as 
                a partner in the partnership under this subsection; and
                    ``(B) ensure that any activities the State 
                educational agency will carry out under this subpart 
                that are within that partner's jurisdiction (which may 
                include activities described in section 654(b)) are 
                carried out by that partner.

``SEC. 653. <<NOTE: 20 USC 1453.>> APPLICATIONS.

    ``(a) In General.--
            ``(1) Submission.--A State educational agency that desires 
        to receive a grant under this subpart shall submit to the 
        Secretary an application at such time, in such manner, and 
        including such information as the Secretary may require.
            ``(2) State plan.--The application shall include a plan that 
        identifies and addresses the State and local needs for the 
        personnel preparation and professional development of personnel, 
        as well as individuals who provide direct supplementary aids and 
        services to children with disabilities, and that--
                    ``(A) is designed to enable the State to meet the 
                requirements of section 612(a)(14) and section 635(a) 
                (8) and (9);
                    ``(B) is based on an assessment of State and local 
                needs that identifies critical aspects and areas in need 
                of improvement related to the preparation, ongoing 
                training, and professional development of personnel who 
                serve infants, toddlers, preschoolers, and children with 
                disabilities within the State, including--
                          ``(i) current and anticipated personnel 
                      vacancies and shortages; and
                          ``(ii) the number of preservice and inservice 
                      programs; and
                    ``(C) is integrated and aligned, to the maximum 
                extent possible, with State plans and activities under 
                the Elementary and Secondary Education Act of 1965, the 
                Rehabilitation Act of 1973, and the Higher Education Act 
                of 1965.
            ``(3) Requirement.--The State application shall contain an 
        assurance that the State educational agency will carry out each 
        of the strategies described in subsection (b)(4).

    ``(b) Elements of State Personnel Development Plan.--Each State 
personnel development plan under subsection (a)(2) shall--
            ``(1) describe a partnership agreement that is in effect for 
        the period of the grant, which agreement shall specify--
                    ``(A) the nature and extent of the partnership 
                described in section 652(b) and the respective roles of 
                each member of the partnership, including the partner 
                described in section 652(b)(3) if applicable; and
                    ``(B) how the State educational agency will work 
                with other persons and organizations involved in, and 
                concerned with, the education of children with 
                disabilities, including the respective roles of each of 
                the persons and organizations;

[[Page 118 STAT. 2769]]

            ``(2) describe how the strategies and activities described 
        in paragraph (4) will be coordinated with activities supported 
        with other public resources (including part B and part C funds 
        retained for use at the State level for personnel and 
        professional development purposes) and private resources;
            ``(3) describe how the State educational agency will align 
        its personnel development plan under this subpart with the plan 
        and application submitted under sections 1111 and 2112, 
        respectively, of the Elementary and Secondary Education Act of 
        1965;
            ``(4) describe those strategies the State educational agency 
        will use to address the professional development and personnel 
        needs identified under subsection (a)(2) and how such strategies 
        will be implemented, including--
                    ``(A) a description of the programs and activities 
                to be supported under this subpart that will provide 
                personnel with the knowledge and skills to meet the 
                needs of, and improve the performance and achievement 
                of, infants, toddlers, preschoolers, and children with 
                disabilities; and
                    ``(B) how such strategies will be integrated, to the 
                maximum extent possible, with other activities supported 
                by grants funded under section 662;
            ``(5) provide an assurance that the State educational agency 
        will provide technical assistance to local educational agencies 
        to improve the quality of professional development available to 
        meet the needs of personnel who serve children with 
        disabilities;
            ``(6) provide an assurance that the State educational agency 
        will provide technical assistance to entities that provide 
        services to infants and toddlers with disabilities to improve 
        the quality of professional development available to meet the 
        needs of personnel serving such children;
            ``(7) describe how the State educational agency will recruit 
        and retain highly qualified teachers and other qualified 
        personnel in geographic areas of greatest need;
            ``(8) describe the steps the State educational agency will 
        take to ensure that poor and minority children are not taught at 
        higher rates by teachers who are not highly qualified; and
            ``(9) describe how the State educational agency will assess, 
        on a regular basis, the extent to which the strategies 
        implemented under this subpart have been effective in meeting 
        the performance goals described in section 612(a)(15).

    ``(c) Peer Review.--
            ``(1) In general.--The Secretary shall use a panel of 
        experts who are competent, by virtue of their training, 
        expertise, or experience, to evaluate applications for grants 
        under section 651(c)(1).
            ``(2) Composition of panel.--A majority of a panel described 
        in paragraph (1) shall be composed of individuals who are not 
        employees of the Federal Government.
            ``(3) Payment of fees and expenses of certain members.--The 
        Secretary may use available funds appropriated to carry out this 
        subpart to pay the expenses and fees of panel members who are 
        not employees of the Federal Government.

[[Page 118 STAT. 2770]]

    ``(d) Reporting Procedures.--Each State educational agency that 
receives a grant under this subpart shall submit annual performance 
reports to the Secretary. The reports shall--
            ``(1) describe the progress of the State educational agency 
        in implementing its plan;
            ``(2) analyze the effectiveness of the State educational 
        agency's activities under this subpart and of the State 
        educational agency's strategies for meeting its goals under 
        section 612(a)(15); and
            ``(3) identify changes in the strategies used by the State 
        educational agency and described in subsection (b)(4), if any, 
        to improve the State educational agency's performance.

``SEC. 654. <<NOTE: 20 USC 1454.>> USE OF FUNDS.

    ``(a) Professional Development Activities.--A State educational 
agency that receives a grant under this subpart shall use the grant 
funds to support activities in accordance with the State's plan 
described in section 653, including 1 or more of the following:
            ``(1) Carrying out programs that provide support to both 
        special education and regular education teachers of children 
        with disabilities and principals, such as programs that--
                    ``(A) provide teacher mentoring, team teaching, 
                reduced class schedules and case loads, and intensive 
                professional development;
                    ``(B) use standards or assessments for guiding 
                beginning teachers that are consistent with challenging 
                State student academic achievement and functional 
                standards and with the requirements for professional 
                development, as defined in section 9101 of the 
                Elementary and Secondary Education Act of 1965; and
                    ``(C) encourage collaborative and consultative 
                models of providing early intervention, special 
                education, and related services.
            ``(2) Encouraging and supporting the training of special 
        education and regular education teachers and administrators to 
        effectively use and integrate technology--
                    ``(A) into curricula and instruction, including 
                training to improve the ability to collect, manage, and 
                analyze data to improve teaching, decisionmaking, school 
                improvement efforts, and accountability;
                    ``(B) to enhance learning by children with 
                disabilities; and
                    ``(C) to effectively communicate with parents.
            ``(3) Providing professional development activities that--
                    ``(A) improve the knowledge of special education and 
                regular education teachers concerning--
                          ``(i) the academic and developmental or 
                      functional needs of students with disabilities; or
                          ``(ii) effective instructional strategies, 
                      methods, and skills, and the use of State academic 
                      content standards and student academic achievement 
                      and functional standards, and State assessments, 
                      to improve teaching practices and student academic 
                      achievement;

[[Page 118 STAT. 2771]]

                    ``(B) improve the knowledge of special education and 
                regular education teachers and principals and, in 
                appropriate cases, paraprofessionals, concerning 
                effective instructional practices, and that--
                          ``(i) provide training in how to teach and 
                      address the needs of children with different 
                      learning styles and children who are limited 
                      English proficient;
                          ``(ii) involve collaborative groups of 
                      teachers, administrators, and, in appropriate 
                      cases, related services personnel;
                          ``(iii) provide training in methods of--
                                    ``(I) positive behavioral 
                                interventions and supports to improve 
                                student behavior in the classroom;
                                    ``(II) scientifically based reading 
                                instruction, including early literacy 
                                instruction;
                                    ``(III) early and appropriate 
                                interventions to identify and help 
                                children with disabilities;
                                    ``(IV) effective instruction for 
                                children with low incidence 
                                disabilities;
                                    ``(V) successful transitioning to 
                                postsecondary opportunities; and
                                    ``(VI) using classroom-based 
                                techniques to assist children prior to 
                                referral for special education;
                          ``(iv) provide training to enable personnel to 
                      work with and involve parents in their child's 
                      education, including parents of low income and 
                      limited English proficient children with 
                      disabilities;
                          ``(v) provide training for special education 
                      personnel and regular education personnel in 
                      planning, developing, and implementing effective 
                      and appropriate IEPs; and
                          ``(vi) provide training to meet the needs of 
                      students with significant health, mobility, or 
                      behavioral needs prior to serving such students;
                    ``(C) train administrators, principals, and other 
                relevant school personnel in conducting effective IEP 
                meetings; and
                    ``(D) train early intervention, preschool, and 
                related services providers, and other relevant school 
                personnel, in conducting effective individualized family 
                service plan (IFSP) meetings.
            ``(4) Developing and implementing initiatives to promote the 
        recruitment and retention of highly qualified special education 
        teachers, particularly initiatives that have been proven 
        effective in recruiting and retaining highly qualified teachers, 
        including programs that provide--
                    ``(A) teacher mentoring from exemplary special 
                education teachers, principals, or superintendents;
                    ``(B) induction and support for special education 
                teachers during their first 3 years of employment as 
                teachers; or
                    ``(C) incentives, including financial incentives, to 
                retain special education teachers who have a record of 
                success in helping students with disabilities.

[[Page 118 STAT. 2772]]

            ``(5) Carrying out programs and activities that are designed 
        to improve the quality of personnel who serve children with 
        disabilities, such as--
                    ``(A) innovative professional development programs 
                (which may be provided through partnerships that include 
                institutions of higher education), including programs 
                that train teachers and principals to integrate 
                technology into curricula and instruction to improve 
                teaching, learning, and technology literacy, which 
                professional development shall be consistent with the 
                definition of professional development in section 9101 
                of the Elementary and Secondary Education Act of 1965; 
                and
                    ``(B) the development and use of proven, cost 
                effective strategies for the implementation of 
                professional development activities, such as through the 
                use of technology and distance learning.
            ``(6) Carrying out programs and activities that are designed 
        to improve the quality of early intervention personnel, 
        including paraprofessionals and primary referral sources, such 
        as--
                    ``(A) professional development programs to improve 
                the delivery of early intervention services;
                    ``(B) initiatives to promote the recruitment and 
                retention of early intervention personnel; and
                    ``(C) interagency activities to ensure that early 
                intervention personnel are adequately prepared and 
                trained.

    ``(b) Other Activities.--A State educational agency that receives a 
grant under this subpart shall use the grant funds to support activities 
in accordance with the State's plan described in section 653, including 
1 or more of the following:
            ``(1) Reforming special education and regular education 
        teacher certification (including recertification) or licensing 
        requirements to ensure that--
                    ``(A) special education and regular education 
                teachers have--
                          ``(i) the training and information necessary 
                      to address the full range of needs of children 
                      with disabilities across disability categories; 
                      and
                          ``(ii) the necessary subject matter knowledge 
                      and teaching skills in the academic subjects that 
                      the teachers teach;
                    ``(B) special education and regular education 
                teacher certification (including recertification) or 
                licensing requirements are aligned with challenging 
                State academic content standards; and
                    ``(C) special education and regular education 
                teachers have the subject matter knowledge and teaching 
                skills, including technology literacy, necessary to help 
                students with disabilities meet challenging State 
                student academic achievement and functional standards.
            ``(2) Programs that establish, expand, or improve 
        alternative routes for State certification of special education 
        teachers for highly qualified individuals with a baccalaureate 
        or master's degree, including mid-career professionals from 
        other occupations, paraprofessionals, and recent college or 
        university graduates with records of academic distinction who 
        demonstrate the potential to become highly effective special 
        education teachers.

[[Page 118 STAT. 2773]]

            ``(3) Teacher advancement initiatives for special education 
        teachers that promote professional growth and emphasize multiple 
        career paths (such as paths to becoming a career teacher, mentor 
        teacher, or exemplary teacher) and pay differentiation.
            ``(4) Developing and implementing mechanisms to assist local 
        educational agencies and schools in effectively recruiting and 
        retaining highly qualified special education teachers.
            ``(5) Reforming tenure systems, implementing teacher testing 
        for subject matter knowledge, and implementing teacher testing 
        for State certification or licensing, consistent with title II 
        of the Higher Education Act of 1965.
            ``(6) Funding projects to promote reciprocity of teacher 
        certification or licensing between or among States for special 
        education teachers, except that no reciprocity agreement 
        developed under this paragraph or developed using funds provided 
        under this subpart may lead to the weakening of any State 
        teaching certification or licensing requirement.
            ``(7) Assisting local educational agencies to serve children 
        with disabilities through the development and use of proven, 
        innovative strategies to deliver intensive professional 
        development programs that are both cost effective and easily 
        accessible, such as strategies that involve delivery through the 
        use of technology, peer networks, and distance learning.
            ``(8) Developing, or assisting local educational agencies in 
        developing, merit based performance systems, and strategies that 
        provide differential and bonus pay for special education 
        teachers.
            ``(9) Supporting activities that ensure that teachers are 
        able to use challenging State academic content standards and 
        student academic achievement and functional standards, and State 
        assessments for all children with disabilities, to improve 
        instructional practices and improve the academic achievement of 
        children with disabilities.
            ``(10) When applicable, coordinating with, and expanding 
        centers established under, section 2113(c)(18) of the Elementary 
        and Secondary Education Act of 1965 to benefit special education 
        teachers.

    ``(c) Contracts and Subgrants.--A State educational agency that 
receives a grant under this subpart--
            ``(1) shall award contracts or subgrants to local 
        educational agencies, institutions of higher education, parent 
        training and information centers, or community parent resource 
        centers, as appropriate, to carry out its State plan under this 
        subpart; and
            ``(2) may award contracts and subgrants to other public and 
        private entities, including the lead agency under part C, to 
        carry out the State plan.

    ``(d) Use of Funds for Professional Development.--A State 
educational agency that receives a grant under this subpart shall use--
            ``(1) not less than 90 percent of the funds the State 
        educational agency receives under the grant for any fiscal year 
        for activities under subsection (a); and
            ``(2) not more than 10 percent of the funds the State 
        educational agency receives under the grant for any fiscal year 
        for activities under subsection (b).

[[Page 118 STAT. 2774]]

    ``(e) Grants to Outlying Areas.--Public Law 95-134, permitting the 
consolidation of grants to the outlying areas, shall not apply to funds 
received under this subpart.

``SEC. 655. <<NOTE: 20 USC 1455.>> AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this subpart 
such sums as may be necessary for each of the fiscal years 2005 through 
2010.

    ``Subpart 2--Personnel Preparation, Technical Assistance, Model 
        Demonstration Projects, and Dissemination of Information

``SEC. 661. <<NOTE: 20 USC 1461.>> PURPOSE; DEFINITION OF ELIGIBLE 
            ENTITY.

    ``(a) Purpose.--The purpose of this subpart is--
            ``(1) to provide Federal funding for personnel preparation, 
        technical assistance, model demonstration projects, information 
        dissemination, and studies and evaluations, in order to improve 
        early intervention, educational, and transitional results for 
        children with disabilities; and
            ``(2) to assist State educational agencies and local 
        educational agencies in improving their education systems for 
        children with disabilities.

    ``(b) Definition of Eligible Entity.--
            ``(1) In general.--In this subpart, the term `eligible 
        entity' means--
                    ``(A) a State educational agency;
                    ``(B) a local educational agency;
                    ``(C) a public charter school that is a local 
                educational agency under State law;
                    ``(D) an institution of higher education;
                    ``(E) a public agency not described in subparagraphs 
                (A) through (D);
                    ``(F) a private nonprofit organization;
                    ``(G) an outlying area;
                    ``(H) an Indian tribe or a tribal organization (as 
                defined under section 4 of the Indian Self-Determination 
                and Education Assistance Act); or
                    ``(I) a for-profit organization, if the Secretary 
                finds it appropriate in light of the purposes of a 
                particular competition for a grant, contract, or 
                cooperative agreement under this subpart.
            ``(2) Special rule.--The Secretary may limit which eligible 
        entities described in paragraph (1) are eligible for a grant, 
        contract, or cooperative agreement under this subpart to 1 or 
        more of the categories of eligible entities described in 
        paragraph (1).

``SEC. 662. <<NOTE: 20 USC 1462.>> PERSONNEL DEVELOPMENT TO IMPROVE 
            SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES.

    ``(a) In General.--The Secretary, on a competitive basis, shall 
award grants to, or enter into contracts or cooperative agreements with, 
eligible entities to carry out 1 or more of the following objectives:
            ``(1) To help address the needs identified in the State plan 
        described in section 653(a)(2) for highly qualified personnel, 
        as defined in section 651(b), to work with infants or toddlers

[[Page 118 STAT. 2775]]

        with disabilities, or children with disabilities, consistent 
        with the qualifications described in section 612(a)(14).
            ``(2) To ensure that those personnel have the necessary 
        skills and knowledge, derived from practices that have been 
        determined, through scientifically based research, to be 
        successful in serving those children.
            ``(3) To encourage increased focus on academics and core 
        content areas in special education personnel preparation 
        programs.
            ``(4) To ensure that regular education teachers have the 
        necessary skills and knowledge to provide instruction to 
        students with disabilities in the regular education classroom.
            ``(5) To ensure that all special education teachers are 
        highly qualified.
            ``(6) To ensure that preservice and in-service personnel 
        preparation programs include training in--
                    ``(A) the use of new technologies;
                    ``(B) the area of early intervention, educational, 
                and transition services;
                    ``(C) effectively involving parents; and
                    ``(D) positive behavioral supports.
            ``(7) To provide high-quality professional development for 
        principals, superintendents, and other administrators, including 
        training in--
                    ``(A) instructional leadership;
                    ``(B) behavioral supports in the school and 
                classroom;
                    ``(C) paperwork reduction;
                    ``(D) promoting improved collaboration between 
                special education and general education teachers;
                    ``(E) assessment and accountability;
                    ``(F) ensuring effective learning environments; and
                    ``(G) fostering positive relationships with parents.

    ``(b) Personnel Development; Enhanced Support for Beginning Special 
Educators.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities--
                    ``(A) for personnel development, including 
                activities for the preparation of personnel who will 
                serve children with high incidence and low incidence 
                disabilities, to prepare special education and general 
                education teachers, principals, administrators, and 
                related services personnel (and school board members, 
                when appropriate) to meet the diverse and individualized 
                instructional needs of children with disabilities and 
                improve early intervention, educational, and 
                transitional services and results for children with 
                disabilities, consistent with the objectives described 
                in subsection (a); and
                    ``(B) for enhanced support for beginning special 
                educators, consistent with the objectives described in 
                subsection (a).
            ``(2) Personnel development.--In carrying out paragraph 
        (1)(A), the Secretary shall support not less than 1 of the 
        following activities:
                    ``(A) Assisting effective existing, improving 
                existing, or developing new, collaborative personnel 
                preparation activities undertaken by institutions of 
                higher education, local educational agencies, and other 
                local entities that

[[Page 118 STAT. 2776]]

                incorporate best practices and scientifically based 
                research, where applicable, in providing special 
                education and general education teachers, principals, 
                administrators, and related services personnel with the 
                knowledge and skills to effectively support students 
                with disabilities, including--
                          ``(i) working collaboratively in regular 
                      classroom settings;
                          ``(ii) using appropriate supports, 
                      accommodations, and curriculum modifications;
                          ``(iii) implementing effective teaching 
                      strategies, classroom-based techniques, and 
                      interventions to ensure appropriate identification 
                      of students who may be eligible for special 
                      education services, and to prevent the 
                      misidentification, inappropriate 
                      overidentification, or underidentification of 
                      children as having a disability, especially 
                      minority and limited English proficient children;
                          ``(iv) effectively working with and involving 
                      parents in the education of their children;
                          ``(v) utilizing strategies, including positive 
                      behavioral interventions, for addressing the 
                      conduct of children with disabilities that impedes 
                      their learning and that of others in the 
                      classroom;
                          ``(vi) effectively constructing IEPs, 
                      participating in IEP meetings, and implementing 
                      IEPs;
                          ``(vii) preparing children with disabilities 
                      to participate in statewide assessments (with or 
                      without accommodations) and alternate assessments, 
                      as appropriate, and to ensure that all children 
                      with disabilities are a part of all accountability 
                      systems under the Elementary and Secondary 
                      Education Act of 1965; and
                          ``(viii) working in high need elementary 
                      schools and secondary schools, including urban 
                      schools, rural schools, and schools operated by an 
                      entity described in section 7113(d)(1)(A)(ii) of 
                      the Elementary and Secondary Education Act of 
                      1965, and schools that serve high numbers or 
                      percentages of limited English proficient 
                      children.
                    ``(B) Developing, evaluating, and disseminating 
                innovative models for the recruitment, induction, 
                retention, and assessment of new, highly qualified 
                teachers to reduce teacher shortages, especially from 
                groups that are underrepresented in the teaching 
                profession, including individuals with disabilities.
                    ``(C) Providing continuous personnel preparation, 
                training, and professional development designed to 
                provide support and ensure retention of special 
                education and general education teachers and personnel 
                who teach and provide related services to children with 
                disabilities.
                    ``(D) Developing and improving programs for 
                paraprofessionals to become special education teachers, 
                related services personnel, and early intervention 
                personnel, including interdisciplinary training to 
                enable the paraprofessionals to improve early 
                intervention, educational, and transitional results for 
                children with disabilities.
                    ``(E) In the case of principals and superintendents, 
                providing activities to promote instructional leadership 
                and

[[Page 118 STAT. 2777]]

                improved collaboration between general educators, 
                special education teachers, and related services 
                personnel.
                    ``(F) Supporting institutions of higher education 
                with minority enrollments of not less than 25 percent 
                for the purpose of preparing personnel to work with 
                children with disabilities.
                    ``(G) Developing and improving programs to train 
                special education teachers to develop an expertise in 
                autism spectrum disorders.
                    ``(H) Providing continuous personnel preparation, 
                training, and professional development designed to 
                provide support and improve the qualifications of 
                personnel who provide related services to children with 
                disabilities, including to enable such personnel to 
                obtain advanced degrees.
            ``(3) Enhanced support for beginning special educators.--In 
        carrying out paragraph (1)(B), the Secretary shall support not 
        less than 1 of the following activities:
                    ``(A) Enhancing and restructuring existing programs 
                or developing preservice teacher education programs to 
                prepare special education teachers, at colleges or 
                departments of education within institutions of higher 
                education, by incorporating an extended (such as an 
                additional 5th year) clinical learning opportunity, 
                field experience, or supervised practicum into such 
                programs.
                    ``(B) Creating or supporting teacher-faculty 
                partnerships (such as professional development schools) 
                that--
                          ``(i) consist of not less than--
                                    ``(I) 1 or more institutions of 
                                higher education with special education 
                                personnel preparation programs;
                                    ``(II) 1 or more local educational 
                                agencies that serve high numbers or 
                                percentages of low-income students; or
                                    ``(III) 1 or more elementary schools 
                                or secondary schools, particularly 
                                schools that have failed to make 
                                adequate yearly progress on the basis, 
                                in whole and in part, of the assessment 
                                results of the disaggregated subgroup of 
                                students with disabilities;
                          ``(ii) may include other entities eligible for 
                      assistance under this part; and
                          ``(iii) provide--
                                    ``(I) high-quality mentoring and 
                                induction opportunities with ongoing 
                                support for beginning special education 
                                teachers; or
                                    ``(II) inservice professional 
                                development to beginning and veteran 
                                special education teachers through the 
                                ongoing exchange of information and 
                                instructional strategies with faculty.

    ``(c) Low Incidence Disabilities; Authorized Activities.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities, consistent with the 
        objectives described in subsection (a), that benefit children 
        with low incidence disabilities.

[[Page 118 STAT. 2778]]

            ``(2) Authorized activities.--Activities that may be carried 
        out under this subsection include activities such as the 
        following:
                    ``(A) Preparing persons who--
                          ``(i) have prior training in educational and 
                      other related service fields; and
                          ``(ii) are studying to obtain degrees, 
                      certificates, or licensure that will enable the 
                      persons to assist children with low incidence 
                      disabilities to achieve the objectives set out in 
                      their individualized education programs described 
                      in section 614(d), or to assist infants and 
                      toddlers with low incidence disabilities to 
                      achieve the outcomes described in their 
                      individualized family service plans described in 
                      section 636.
                    ``(B) Providing personnel from various disciplines 
                with interdisciplinary training that will contribute to 
                improvement in early intervention, educational, and 
                transitional results for children with low incidence 
                disabilities.
                    ``(C) Preparing personnel in the innovative uses and 
                application of technology, including universally 
                designed technologies, assistive technology devices, and 
                assistive technology services--
                          ``(i) to enhance learning by children with low 
                      incidence disabilities through early intervention, 
                      educational, and transitional services; and
                          ``(ii) to improve communication with parents.
                    ``(D) Preparing personnel who provide services to 
                visually impaired or blind children to teach and use 
                Braille in the provision of services to such children.
                    ``(E) Preparing personnel to be qualified 
                educational interpreters, to assist children with low 
                incidence disabilities, particularly deaf and hard of 
                hearing children in school and school related 
                activities, and deaf and hard of hearing infants and 
                toddlers and preschool children in early intervention 
                and preschool programs.
                    ``(F) Preparing personnel who provide services to 
                children with significant cognitive disabilities and 
                children with multiple disabilities.
                    ``(G) Preparing personnel who provide services to 
                children with low incidence disabilities and limited 
                English proficient children.
            ``(3) Definition.--In this section, the term `low incidence 
        disability' means--
                    ``(A) a visual or hearing impairment, or 
                simultaneous visual and hearing impairments;
                    ``(B) a significant cognitive impairment; or
                    ``(C) any impairment for which a small number of 
                personnel with highly specialized skills and knowledge 
                are needed in order for children with that impairment to 
                receive early intervention services or a free 
                appropriate public education.
            ``(4) Selection of recipients.--In selecting eligible 
        entities for assistance under this subsection, the Secretary may 
        give preference to eligible entities submitting applications 
        that include 1 or more of the following:
                    ``(A) A proposal to prepare personnel in more than 1 
                low incidence disability, such as deafness and 
                blindness.

[[Page 118 STAT. 2779]]

                    ``(B) A demonstration of an effective collaboration 
                between an eligible entity and a local educational 
                agency that promotes recruitment and subsequent 
                retention of highly qualified personnel to serve 
                children with low incidence disabilities.
            ``(5) Preparation in use of braille.--The Secretary shall 
        ensure that all recipients of awards under this subsection who 
        will use that assistance to prepare personnel to provide 
        services to visually impaired or blind children that can 
        appropriately be provided in Braille, will prepare those 
        individuals to provide those services in Braille.

    ``(d) Leadership Preparation; Authorized Activities.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall support leadership preparation activities that 
        are consistent with the objectives described in subsection (a).
            ``(2) Authorized activities.--Activities that may be carried 
        out under this subsection include activities such as the 
        following:
                    ``(A) Preparing personnel at the graduate, doctoral, 
                and postdoctoral levels of training to administer, 
                enhance, or provide services to improve results for 
                children with disabilities.
                    ``(B) Providing interdisciplinary training for 
                various types of leadership personnel, including teacher 
                preparation faculty, related services faculty, 
                administrators, researchers, supervisors, principals, 
                and other persons whose work affects early intervention, 
                educational, and transitional services for children with 
                disabilities, including children with disabilities who 
                are limited English proficient children.

    ``(e) Applications.--
            ``(1) In general.--An eligible entity that wishes to receive 
        a grant, or enter into a contract or cooperative agreement, 
        under this section shall submit an application to the Secretary 
        at such time, in such manner, and containing such information as 
        the Secretary may require.
            ``(2) Identified state needs.--
                    ``(A) Requirement to address identified needs.--An 
                application for assistance under subsection (b), (c), or 
                (d) shall include information demonstrating to the 
                satisfaction of the Secretary that the activities 
                described in the application will address needs 
                identified by the State or States the eligible entity 
                proposes to serve.
                    ``(B) Cooperation with state educational agencies.--
                An eligible entity that is not a local educational 
                agency or a State educational agency shall include in 
                the eligible entity's application information 
                demonstrating to the satisfaction of the Secretary that 
                the eligible entity and 1 or more State educational 
                agencies or local educational agencies will cooperate in 
                carrying out and monitoring the proposed project.
            ``(3) Acceptance by states of personnel preparation 
        requirements.--The Secretary may require eligible entities to 
        provide in the eligible entities' applications assurances from 1 
        or more States that such States intend to accept successful 
        completion of the proposed personnel preparation program as 
        meeting State personnel standards or other requirements in

[[Page 118 STAT. 2780]]

        State law or regulation for serving children with disabilities 
        or serving infants and toddlers with disabilities.

    ``(f) Selection of Recipients.--
            ``(1) Impact of project.--In selecting eligible entities for 
        assistance under this section, the Secretary shall consider the 
        impact of the proposed project described in the application in 
        meeting the need for personnel identified by the States.
            ``(2) Requirement for eligible entities to meet state and 
        professional qualifications.--
        The <<NOTE: Grants. Contracts.>> Secretary shall make grants and 
        enter into contracts and cooperative agreements under this 
        section only to eligible entities that meet State and 
        professionally recognized qualifications for the preparation of 
        special education and related services personnel, if the purpose 
        of the project is to assist personnel in obtaining degrees.
            ``(3) Preferences.--In selecting eligible entities for 
        assistance under this section, the Secretary may give preference 
        to eligible entities that are institutions of higher education 
        that are--
                    ``(A) educating regular education personnel to meet 
                the needs of children with disabilities in integrated 
                settings;
                    ``(B) educating special education personnel to work 
                in collaboration with regular educators in integrated 
                settings; and
                    ``(C) successfully recruiting and preparing 
                individuals with disabilities and individuals from 
                groups that are underrepresented in the profession for 
                which the institution of higher education is preparing 
                individuals.

    ``(g) Scholarships.--The Secretary may include funds for 
scholarships, with necessary stipends and allowances, in awards under 
subsections (b), (c), and (d).
    ``(h) Service Obligation.--
            ``(1) In general.--Each application for assistance under 
        subsections (b), (c), and (d) shall include an assurance that 
        the eligible entity will ensure that individuals who receive a 
        scholarship under the proposed project agree to subsequently 
        provide special education and related services to children with 
        disabilities, or in the case of leadership personnel to 
        subsequently work in the appropriate field, for a period of 2 
        years for every year for which the scholarship was received or 
        repay all or part of the amount of the scholarship, in 
        accordance with regulations issued by the Secretary.
            ``(2) Special rule.--Notwithstanding paragraph (1), the 
        Secretary may reduce or waive the service obligation requirement 
        under paragraph (1) if the Secretary determines that the service 
        obligation is acting as a deterrent to the recruitment of 
        students into special education or a related field.
            ``(3) Secretary's responsibility.--The Secretary--
                    ``(A) shall ensure that individuals described in 
                paragraph (1) comply with the requirements of that 
                paragraph; and
                    ``(B) may use not more than 0.5 percent of the funds 
                appropriated under subsection (i) for each fiscal year, 
                to carry out subparagraph (A), in addition to any other 
                funds that are available for that purpose.

[[Page 118 STAT. 2781]]

    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary for 
each of the fiscal years 2005 through 2010.

``SEC. 663. TECHNICAL ASSISTANCE, DEMONSTRATION PROJECTS, DISSEMINATION 
            OF INFORMATION, AND IMPLEMENTATION OF SCIENTIFICALLY BASED 
            RESEARCH.

    ``(a) <<NOTE: Grants. Contracts. 20 USC 1463.>> In General.--The 
Secretary shall make competitive grants to, or enter into contracts or 
cooperative agreements with, eligible entities to provide technical 
assistance, support model demonstration projects, disseminate useful 
information, and implement activities that are supported by 
scientifically based research.

    ``(b) Required Activities.--Funds received under this section shall 
be used to support activities to improve services provided under this 
title, including the practices of professionals and others involved in 
providing such services to children with disabilities, that promote 
academic achievement and improve results for children with disabilities 
through--
            ``(1) implementing effective strategies for addressing 
        inappropriate behavior of students with disabilities in schools, 
        including strategies to prevent children with emotional and 
        behavioral problems from developing emotional disturbances that 
        require the provision of special education and related services;
            ``(2) improving the alignment, compatibility, and 
        development of valid and reliable assessments and alternate 
        assessments for assessing adequate yearly progress, as described 
        under section 1111(b)(2)(B) of the Elementary and Secondary 
        Education Act of 1965;
            ``(3) providing training for both regular education teachers 
        and special education teachers to address the needs of students 
        with different learning styles;
            ``(4) disseminating information about innovative, effective, 
        and efficient curricula designs, instructional approaches, and 
        strategies, and identifying positive academic and social 
        learning opportunities, that--
                    ``(A) provide effective transitions between 
                educational settings or from school to post school 
                settings; and
                    ``(B) improve educational and transitional results 
                at all levels of the educational system in which the 
                activities are carried out and, in particular, that 
                improve the progress of children with disabilities, as 
                measured by assessments within the general education 
                curriculum involved; and
            ``(5) applying scientifically based findings to facilitate 
        systemic changes, related to the provision of services to 
        children with disabilities, in policy, procedure, practice, and 
        the training and use of personnel.

    ``(c) Authorized Activities.--Activities that may be carried out 
under this section include activities to improve services provided under 
this title, including the practices of professionals and others involved 
in providing such services to children with disabilities, that promote 
academic achievement and improve results for children with disabilities 
through--
            ``(1) applying and testing research findings in typical 
        settings where children with disabilities receive services to 
        determine the usefulness, effectiveness, and general 
        applicability

[[Page 118 STAT. 2782]]

        of such research findings in such areas as improving 
        instructional methods, curricula, and tools, such as textbooks 
        and media;
            ``(2) supporting and promoting the coordination of early 
        intervention and educational services for children with 
        disabilities with services provided by health, rehabilitation, 
        and social service agencies;
            ``(3) promoting improved alignment and compatibility of 
        general and special education reforms concerned with curricular 
        and instructional reform, and evaluation of such reforms;
            ``(4) enabling professionals, parents of children with 
        disabilities, and other persons to learn about, and implement, 
        the findings of scientifically based research, and successful 
        practices developed in model demonstration projects, relating to 
        the provision of services to children with disabilities;
            ``(5) conducting outreach, and disseminating information, 
        relating to successful approaches to overcoming systemic 
        barriers to the effective and efficient delivery of early 
        intervention, educational, and transitional services to 
        personnel who provide services to children with disabilities;
            ``(6) assisting States and local educational agencies with 
        the process of planning systemic changes that will promote 
        improved early intervention, educational, and transitional 
        results for children with disabilities;
            ``(7) promoting change through a multistate or regional 
        framework that benefits States, local educational agencies, and 
        other participants in partnerships that are in the process of 
        achieving systemic-change outcomes;
            ``(8) focusing on the needs and issues that are specific to 
        a population of children with disabilities, such as providing 
        single-State and multi-State technical assistance and in-service 
        training--
                    ``(A) to schools and agencies serving deaf-blind 
                children and their families;
                    ``(B) to programs and agencies serving other groups 
                of children with low incidence disabilities and their 
                families;
                    ``(C) addressing the postsecondary education needs 
                of individuals who are deaf or hard-of-hearing; and
                    ``(D) to schools and personnel providing special 
                education and related services for children with autism 
                spectrum disorders;
            ``(9) demonstrating models of personnel preparation to 
        ensure appropriate placements and services for all students and 
        to reduce disproportionality in eligibility, placement, and 
        disciplinary actions for minority and limited English proficient 
        children; and
            ``(10) disseminating information on how to reduce 
        inappropriate racial and ethnic disproportionalities identified 
        under section 618.

    ``(d) Balance Among Activities and Age Ranges.--In carrying out this 
section, the Secretary shall ensure that there is an appropriate balance 
across all age ranges of children with disabilities.
    ``(e) Linking States to Information Sources.--In carrying out this 
section, the Secretary shall support projects that link States to 
technical assistance resources, including special education and general 
education resources, and shall make research and

[[Page 118 STAT. 2783]]

related products available through libraries, electronic networks, 
parent training projects, and other information sources, including 
through the activities of the National Center for Education Evaluation 
and Regional Assistance established under part D of the Education 
Sciences Reform Act of 2002.
    ``(f) Applications.--
            ``(1) In general.--An eligible entity that wishes to receive 
        a grant, or enter into a contract or cooperative agreement, 
        under this section shall submit an application to the Secretary 
        at such time, in such manner, and containing such information as 
        the Secretary may require.
            ``(2) Standards.--To the maximum extent feasible, each 
        eligible entity shall demonstrate that the project described in 
        the eligible entity's application is supported by scientifically 
        valid research that has been carried out in accordance with the 
        standards for the conduct and evaluation of all relevant 
        research and development established by the National Center for 
        Education Research.
            ``(3) Priority.--As appropriate, the Secretary shall give 
        priority to applications that propose to serve teachers and 
        school personnel directly in the school environment.

``SEC. 664. <<NOTE: 20 USC 1464.>> STUDIES AND EVALUATIONS.

    ``(a) Studies and Evaluations.--
            ``(1) Delegation.--The Secretary shall delegate to the 
        Director of the Institute of Education Sciences responsibility 
        to carry out this section, other than subsections (d) and (f).
            ``(2) Assessment.--The Secretary shall, directly or through 
        grants, contracts, or cooperative agreements awarded to eligible 
        entities on a competitive basis, assess the progress in the 
        implementation of this title, including the effectiveness of 
        State and local efforts to provide--
                    ``(A) a free appropriate public education to 
                children with disabilities; and
                    ``(B) early intervention services to infants and 
                toddlers with disabilities, and infants and toddlers who 
                would be at risk of having substantial developmental 
                delays if early intervention services were not provided 
                to the infants and toddlers.

    ``(b) Assessment of National Activities.--
            ``(1) In general.--The Secretary shall carry out a national 
        assessment of activities carried out with Federal funds under 
        this title in order--
                    ``(A) to determine the effectiveness of this title 
                in achieving the purposes of this title;
                    ``(B) to provide timely information to the 
                President, Congress, the States, local educational 
                agencies, and the public on how to implement this title 
                more effectively; and
                    ``(C) to provide the President and Congress with 
                information that will be useful in developing 
                legislation to achieve the purposes of this title more 
                effectively.
            ``(2) Scope of assessment.--The national assessment shall 
        assess activities supported under this title, including--
                    ``(A) the implementation of programs assisted under 
                this title and the impact of such programs on addressing 
                the developmental needs of, and improving the academic

[[Page 118 STAT. 2784]]

                achievement of, children with disabilities to enable the 
                children to reach challenging developmental goals and 
                challenging State academic content standards based on 
                State academic assessments;
                    ``(B) the types of programs and services that have 
                demonstrated the greatest likelihood of helping students 
                reach the challenging State academic content standards 
                and developmental goals;
                    ``(C) the implementation of the professional 
                development activities assisted under this title and the 
                impact on instruction, student academic achievement, and 
                teacher qualifications to enhance the ability of special 
                education teachers and regular education teachers to 
                improve results for children with disabilities; and
                    ``(D) the effectiveness of schools, local 
                educational agencies, States, other recipients of 
                assistance under this title, and the Secretary in 
                achieving the purposes of this title by--
                          ``(i) improving the academic achievement of 
                      children with disabilities and their performance 
                      on regular statewide assessments as compared to 
                      nondisabled children, and the performance of 
                      children with disabilities on alternate 
                      assessments;
                          ``(ii) improving the participation of children 
                      with disabilities in the general education 
                      curriculum;
                          ``(iii) improving the transitions of children 
                      with disabilities at natural transition points;
                          ``(iv) placing and serving children with 
                      disabilities, including minority children, in the 
                      least restrictive environment appropriate;
                          ``(v) preventing children with disabilities, 
                      especially children with emotional disturbances 
                      and specific learning disabilities, from dropping 
                      out of school;
                          ``(vi) addressing the reading and literacy 
                      needs of children with disabilities;
                          ``(vii) reducing the inappropriate 
                      overidentification of children, especially 
                      minority and limited English proficient children, 
                      as having a disability;
                          ``(viii) improving the participation of 
                      parents of children with disabilities in the 
                      education of their children; and
                          ``(ix) resolving disagreements between 
                      education personnel and parents through alternate 
                      dispute resolution activities, including 
                      mediation.
            ``(3) Interim and final reports.--The Secretary shall submit 
        to the President and Congress--
                    ``(A) an interim report that summarizes the 
                preliminary findings of the assessment not later than 3 
                years after the date of enactment of the Individuals 
                with Disabilities Education Improvement Act of 2004; and
                    ``(B) a final report of the findings of the 
                assessment not later than 5 years after the date of 
                enactment of such Act.

    ``(c) Study on Ensuring Accountability for Students Who Are Held to 
Alternative Achievement Standards.--The Secretary shall carry out a 
national study or studies to examine--
            ``(1) the criteria that States use to determine--

[[Page 118 STAT. 2785]]

                    ``(A) eligibility for alternate assessments; and
                    ``(B) the number and type of children who take those 
                assessments and are held accountable to alternative 
                achievement standards;
            ``(2) the validity and reliability of alternate assessment 
        instruments and procedures;
            ``(3) the alignment of alternate assessments and alternative 
        achievement standards to State academic content standards in 
        reading, mathematics, and science; and
            ``(4) the use and effectiveness of alternate assessments in 
        appropriately measuring student progress and outcomes specific 
        to individualized instructional need.

    ``(d) Annual Report.--The Secretary shall provide an annual report 
to Congress that--
            ``(1) summarizes the research conducted under part E of the 
        Education Sciences Reform Act of 2002;
            ``(2) analyzes and summarizes the data reported by the 
        States and the Secretary of the Interior under section 618;
            ``(3) summarizes the studies and evaluations conducted under 
        this section and the timeline for their completion;
            ``(4) describes the extent and progress of the assessment of 
        national activities; and
            ``(5) describes the findings and determinations resulting 
        from reviews of State implementation of this title.

    ``(e) Authorized Activities.--In carrying out this section, the 
Secretary may support objective studies, evaluations, and assessments, 
including studies that--
            ``(1) analyze measurable impact, outcomes, and results 
        achieved by State educational agencies and local educational 
        agencies through their activities to reform policies, 
        procedures, and practices designed to improve educational and 
        transitional services and results for children with 
        disabilities;
            ``(2) analyze State and local needs for professional 
        development, parent training, and other appropriate activities 
        that can reduce the need for disciplinary actions involving 
        children with disabilities;
            ``(3) assess educational and transitional services and 
        results for children with disabilities from minority 
        backgrounds, including--
                    ``(A) data on--
                          ``(i) the number of minority children who are 
                      referred for special education evaluation;
                          ``(ii) the number of minority children who are 
                      receiving special education and related services 
                      and their educational or other service placement;
                          ``(iii) the number of minority children who 
                      graduated from secondary programs with a regular 
                      diploma in the standard number of years; and
                          ``(iv) the number of minority children who 
                      drop out of the educational system; and
                    ``(B) the performance of children with disabilities 
                from minority backgrounds on State assessments and other 
                performance indicators established for all students;
            ``(4) measure educational and transitional services and 
        results for children with disabilities served under this title, 
        including longitudinal studies that--

[[Page 118 STAT. 2786]]

                    ``(A) examine educational and transitional services 
                and results for children with disabilities who are 3 
                through 17 years of age and are receiving special 
                education and related services under this title, using a 
                national, representative sample of distinct age cohorts 
                and disability categories; and
                    ``(B) examine educational results, transition 
                services, postsecondary placement, and employment status 
                for individuals with disabilities, 18 through 21 years 
                of age, who are receiving or have received special 
                education and related services under this title; and
            ``(5) identify and report on the placement of children with 
        disabilities by disability category.

    ``(f) <<NOTE: Reports.>> Study.--The Secretary shall study, and 
report to Congress regarding, the extent to which States adopt policies 
described in section 635(c)(1) and on the effects of those policies.

``SEC. 665. <<NOTE: 20 USC 1465.>> INTERIM ALTERNATIVE EDUCATIONAL 
            SETTINGS, BEHAVIORAL SUPPORTS, AND SYSTEMIC SCHOOL 
            INTERVENTIONS.

    ``(a) Program Authorized.--The Secretary may award grants, and enter 
into contracts and cooperative agreements, to support safe learning 
environments that support academic achievement for all students by--
            ``(1) improving the quality of interim alternative 
        educational settings; and
            ``(2) providing increased behavioral supports and research-
        based, systemic interventions in schools.

    ``(b) Authorized Activities.--In carrying out this section, the 
Secretary may support activities to--
            ``(1) establish, expand, or increase the scope of behavioral 
        supports and systemic interventions by providing for effective, 
        research-based practices, including--
                    ``(A) training for school staff on early 
                identification, prereferral, and referral procedures;
                    ``(B) training for administrators, teachers, related 
                services personnel, behavioral specialists, and other 
                school staff in positive behavioral interventions and 
                supports, behavioral intervention planning, and 
                classroom and student management techniques;
                    ``(C) joint training for administrators, parents, 
                teachers, related services personnel, behavioral 
                specialists, and other school staff on effective 
                strategies for positive behavioral interventions and 
                behavior management strategies that focus on the 
                prevention of behavior problems;
                    ``(D) developing or implementing specific curricula, 
                programs, or interventions aimed at addressing 
                behavioral problems;
                    ``(E) stronger linkages between school-based 
                services and community-based resources, such as 
                community mental health and primary care providers; or
                    ``(F) using behavioral specialists, related services 
                personnel, and other staff necessary to implement 
                behavioral supports; or
            ``(2) improve interim alternative educational settings by--
                    ``(A) improving the training of administrators, 
                teachers, related services personnel, behavioral 
                specialists, and other

[[Page 118 STAT. 2787]]

                school staff (including ongoing mentoring of new 
                teachers) in behavioral supports and interventions;
                    ``(B) attracting and retaining a high quality, 
                diverse staff;
                    ``(C) providing for referral to counseling services;
                    ``(D) utilizing research-based interventions, 
                curriculum, and practices;
                    ``(E) allowing students to use instructional 
                technology that provides individualized instruction;
                    ``(F) ensuring that the services are fully 
                consistent with the goals of the individual student's 
                IEP;
                    ``(G) promoting effective case management and 
                collaboration among parents, teachers, physicians, 
                related services personnel, behavioral specialists, 
                principals, administrators, and other school staff;
                    ``(H) promoting interagency coordination and 
                coordinated service delivery among schools, juvenile 
                courts, child welfare agencies, community mental health 
                providers, primary care providers, public recreation 
                agencies, and community-based organizations; or
                    ``(I) providing for behavioral specialists to help 
                students transitioning from interim alternative 
                educational settings reintegrate into their regular 
                classrooms.

    ``(c) Definition of Eligible Entity.--In this section, the term 
``eligible entity'' means--
            ``(1) a local educational agency; or
            ``(2) a consortium consisting of a local educational agency 
        and 1 or more of the following entities:
                    ``(A) Another local educational agency.
                    ``(B) A community-based organization with a 
                demonstrated record of effectiveness in helping children 
                with disabilities who have behavioral challenges 
                succeed.
                    ``(C) An institution of higher education.
                    ``(D) A community mental health provider.
                    ``(E) An educational service agency.

    ``(d) Applications.--Any eligible entity that wishes to receive a 
grant, or enter into a contract or cooperative agreement, under this 
section shall--
            ``(1) submit an application to the Secretary at such time, 
        in such manner, and containing such information as the Secretary 
        may require; and
            ``(2) involve parents of participating students in the 
        design and implementation of the activities funded under this 
        section.

    ``(e) Report and Evaluation.--Each eligible entity receiving a grant 
under this section shall prepare and submit annually to the Secretary a 
report on the outcomes of the activities assisted under the grant.

``SEC. 667. <<NOTE: 20 USC 1466.>> AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this subpart (other than section 662) such sums as may be necessary 
for each of the fiscal years 2005 through 2010.
    ``(b) Reservation.--From amounts appropriated under subsection (a) 
for fiscal year 2005, the Secretary shall reserve $1,000,000 to carry 
out the study authorized in section 664(c). From amounts appropriated 
under subsection (a) for a succeeding fiscal year, the Secretary may 
reserve an additional amount to

[[Page 118 STAT. 2788]]

carry out such study if the Secretary determines the additional amount 
is necessary.

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

``SEC. 670. <<NOTE: 20 USC 1470.>> PURPOSES.

    ``The purposes of this subpart are to ensure that--
            ``(1) children with disabilities and their parents receive 
        training and information designed to assist the children in 
        meeting developmental and functional goals and challenging 
        academic achievement goals, and in preparing to lead productive 
        independent adult lives;
            ``(2) children with disabilities and their parents receive 
        training and information on their rights, responsibilities, and 
        protections under this title, in order to develop the skills 
        necessary to cooperatively and effectively participate in 
        planning and decision making relating to early intervention, 
        educational, and transitional services;
            ``(3) parents, teachers, administrators, early intervention 
        personnel, related services personnel, and transition personnel 
        receive coordinated and accessible technical assistance and 
        information to assist such personnel in improving early 
        intervention, educational, and transitional services and results 
        for children with disabilities and their families; and
            ``(4) appropriate technology and media are researched, 
        developed, and demonstrated, to improve and implement early 
        intervention, educational, and transitional services and results 
        for children with disabilities and their families.

``SEC. 671. <<NOTE: 20 USC 1471.>> PARENT TRAINING AND INFORMATION 
            CENTERS.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary may award grants to, and 
        enter into contracts and cooperative agreements with, parent 
        organizations to support parent training and information centers 
        to carry out activities under this section.
            ``(2) Definition of parent organization.--In this section, 
        the term `parent organization' means a private nonprofit 
        organization (other than an institution of higher education) 
        that--
                    ``(A) has a board of directors--
                          ``(i) the majority of whom are parents of 
                      children with disabilities ages birth through 26;
                          ``(ii) that includes--
                                    ``(I) individuals working in the 
                                fields of special education, related 
                                services, and early intervention; and
                                    ``(II) individuals with 
                                disabilities; and
                          ``(iii) the parent and professional members of 
                      which are broadly representative of the population 
                      to be served, including low-income parents and 
                      parents of limited English proficient children; 
                      and
                    ``(B) has as its mission serving families of 
                children with disabilities who--
                          ``(i) are ages birth through 26; and
                          ``(ii) have the full range of disabilities 
                      described in section 602(3).

[[Page 118 STAT. 2789]]

    ``(b) Required Activities.--Each parent training and information 
center that receives assistance under this section shall--
            ``(1) provide training and information that meets the needs 
        of parents of children with disabilities living in the area 
        served by the center, particularly underserved parents and 
        parents of children who may be inappropriately identified, to 
        enable their children with disabilities to--
                    ``(A) meet developmental and functional goals, and 
                challenging academic achievement goals that have been 
                established for all children; and
                    ``(B) be prepared to lead productive independent 
                adult lives, to the maximum extent possible;
            ``(2) serve the parents of infants, toddlers, and children 
        with the full range of disabilities described in section 602(3);
            ``(3) ensure that the training and information provided 
        meets the needs of low-income parents and parents of limited 
        English proficient children;
            ``(4) assist parents to--
                    ``(A) better understand the nature of their 
                children's disabilities and their educational, 
                developmental, and transitional needs;
                    ``(B) communicate effectively and work 
                collaboratively with personnel responsible for providing 
                special education, early intervention services, 
                transition services, and related services;
                    ``(C) participate in decisionmaking processes and 
                the development of individualized education programs 
                under part B and individualized family service plans 
                under part C;
                    ``(D) obtain appropriate information about the 
                range, type, and quality of--
                          ``(i) options, programs, services, 
                      technologies, practices and interventions based on 
                      scientifically based research, to the extent 
                      practicable; and
                          ``(ii) resources available to assist children 
                      with disabilities and their families in school and 
                      at home;
                    ``(E) understand the provisions of this title for 
                the education of, and the provision of early 
                intervention services to, children with disabilities;
                    ``(F) participate in activities at the school level 
                that benefit their children; and
                    ``(G) participate in school reform activities;
            ``(5) in States where the State elects to contract with the 
        parent training and information center, contract with State 
        educational agencies to provide, consistent with subparagraphs 
        (B) and (D) of section 615(e)(2), individuals who meet with 
        parents to explain the mediation process to the parents;
            ``(6) assist parents in resolving disputes in the most 
        expeditious and effective way possible, including encouraging 
        the use, and explaining the benefits, of alternative methods of 
        dispute resolution, such as the mediation process described in 
        section 615(e);
            ``(7) assist parents and students with disabilities to 
        understand their rights and responsibilities under this title, 
        including those under section 615(m) upon the student's reaching 
        the age of majority (as appropriate under State law);

[[Page 118 STAT. 2790]]

            ``(8) assist parents to understand the availability of, and 
        how to effectively use, procedural safeguards under this title, 
        including the resolution session described in section 615(e);
            ``(9) assist parents in understanding, preparing for, and 
        participating in, the process described in section 615(f)(1)(B);
            ``(10) establish cooperative partnerships with community 
        parent resource centers funded under section 672;
            ``(11) network with appropriate clearinghouses, including 
        organizations conducting national dissemination activities under 
        section 663 and the Institute of Education Sciences, and with 
        other national, State, and local organizations and agencies, 
        such as protection and advocacy agencies, that serve parents and 
        families of children with the full range of disabilities 
        described in section 602(3); and
            ``(12) <<NOTE: Reports. Deadlines.>> annually report to the 
        Secretary on--
                    ``(A) the number and demographics of parents to whom 
                the center provided information and training in the most 
                recently concluded fiscal year;
                    ``(B) the effectiveness of strategies used to reach 
                and serve parents, including underserved parents of 
                children with disabilities; and
                    ``(C) the number of parents served who have resolved 
                disputes through alternative methods of dispute 
                resolution.

    ``(c) Optional Activities.--A parent training and information center 
that receives assistance under this section may provide information to 
teachers and other professionals to assist the teachers and 
professionals in improving results for children with disabilities.
    ``(d) Application Requirements.--Each application for assistance 
under this section shall identify with specificity the special efforts 
that the parent organization will undertake--
            ``(1) to ensure that the needs for training and information 
        of underserved parents of children with disabilities in the area 
        to be served are effectively met; and
            ``(2) to work with community based organizations, including 
        community based organizations that work with low-income parents 
        and parents of limited English proficient children.

    ``(e) Distribution of Funds.--
            ``(1) In general.--The Secretary shall--
                    ``(A) make not less than 1 award to a parent 
                organization in each State for a parent training and 
                information center that is designated as the statewide 
                parent training and information center; or
                    ``(B) in the case of a large State, make awards to 
                multiple parent training and information centers, but 
                only if the centers demonstrate that coordinated 
                services and supports will occur among the multiple 
                centers.
            ``(2) Selection requirement.--The Secretary shall select 
        among applications submitted by parent organizations in a State 
        in a manner that ensures the most effective assistance to 
        parents, including parents in urban and rural areas, in the 
        State.

    ``(f) Quarterly Review.--
            ``(1) Meetings.--The board of directors of each parent 
        organization that receives an award under this section shall 
        meet not less than once in each calendar quarter to review the 
        activities for which the award was made.

[[Page 118 STAT. 2791]]

            ``(2) Continuation award.--When a parent organization 
        requests a continuation award under this section, the board of 
        directors shall submit to the Secretary a written review of the 
        parent training and information program conducted by the parent 
        organization during the preceding fiscal year.

``SEC. 672. <<NOTE: 20 USC 1472.>> COMMUNITY PARENT RESOURCE CENTERS.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary may award grants to, and 
        enter into contracts and cooperative agreements with, local 
        parent organizations to support community parent resource 
        centers that will help ensure that underserved parents of 
        children with disabilities, including low income parents, 
        parents of limited English proficient children, and parents with 
        disabilities, have the training and information the parents need 
        to enable the parents to participate effectively in helping 
        their children with disabilities--
                    ``(A) to meet developmental and functional goals, 
                and challenging academic achievement goals that have 
                been established for all children; and
                    ``(B) to be prepared to lead productive independent 
                adult lives, to the maximum extent possible.
            ``(2) Definition of local parent organization.--In this 
        section, the term `local parent organization' means a parent 
        organization, as defined in section 671(a)(2), that--
                    ``(A) has a board of directors the majority of whom 
                are parents of children with disabilities ages birth 
                through 26 from the community to be served; and
                    ``(B) has as its mission serving parents of children 
                with disabilities who--
                          ``(i) are ages birth through 26; and
                          ``(ii) have the full range of disabilities 
                      described in section 602(3).

    ``(b) Required Activities.--Each community parent resource center 
assisted under this section shall--
            ``(1) provide training and information that meets the 
        training and information needs of parents of children with 
        disabilities proposed to be served by the grant, contract, or 
        cooperative agreement;
            ``(2) carry out the activities required of parent training 
        and information centers under paragraphs (2) through (9) of 
        section 671(b);
            ``(3) establish cooperative partnerships with the parent 
        training and information centers funded under section 671; and
            ``(4) be designed to meet the specific needs of families who 
        experience significant isolation from available sources of 
        information and support.

``SEC. 673. <<NOTE: 20 USC 1473.>> TECHNICAL ASSISTANCE FOR PARENT 
            TRAINING AND INFORMATION CENTERS.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary may, directly or through 
        awards to eligible entities, provide technical assistance for 
        developing, assisting, and coordinating parent training and 
        information programs carried out by parent training and 
        information centers receiving assistance under section 671 and

[[Page 118 STAT. 2792]]

         community parent resource centers receiving assistance under 
        section 672.
            ``(2) Definition of eligible entity.--In this section, the 
        term `eligible entity' has the meaning given the term in section 
        661(b).

    ``(b) Authorized Activities.--The Secretary may provide technical 
assistance to a parent training and information center or a community 
parent resource center under this section in areas such as--
            ``(1) effective coordination of parent training efforts;
            ``(2) dissemination of scientifically based research and 
        information;
            ``(3) promotion of the use of technology, including 
        assistive technology devices and assistive technology services;
            ``(4) reaching underserved populations, including parents of 
        low-income and limited English proficient children with 
        disabilities;
            ``(5) including children with disabilities in general 
        education programs;
            ``(6) facilitation of transitions from--
                    ``(A) early intervention services to preschool;
                    ``(B) preschool to elementary school;
                    ``(C) elementary school to secondary school; and
                    ``(D) secondary school to postsecondary 
                environments; and
            ``(7) promotion of alternative methods of dispute 
        resolution, including mediation.

    ``(c) Collaboration With the Resource Centers.--Each eligible entity 
receiving an award under subsection (a) shall develop collaborative 
agreements with the geographically appropriate regional resource center 
and, as appropriate, the regional educational laboratory supported under 
section 174 of the Education Sciences Reform Act of 2002, to further 
parent and professional collaboration.

``SEC. 674. <<NOTE: 20 USC 1474.>> TECHNOLOGY DEVELOPMENT, 
            DEMONSTRATION, AND UTILIZATION; MEDIA SERVICES; AND 
            INSTRUCTIONAL MATERIALS.

    ``(a) Program Authorized.--
            ``(1) <<NOTE: Grants. Contracts.>> In general.--The 
        Secretary, on a competitive basis, shall award grants to, and 
        enter into contracts and cooperative agreements with, eligible 
        entities to support activities described in subsections (b) and 
        (c).
            ``(2) Definition of eligible entity.--In this section, the 
        term `eligible entity' has the meaning given the term in section 
        661(b).

    ``(b) Technology Development, Demonstration, and Use.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall support activities to promote the development, 
        demonstration, and use of technology.
            ``(2) Authorized activities.--The following activities may 
        be carried out under this subsection:
                    ``(A) Conducting research on and promoting the 
                demonstration and use of innovative, emerging, and 
                universally designed technologies for children with 
                disabilities, by improving the transfer of technology 
                from research and development to practice.

[[Page 118 STAT. 2793]]

                    ``(B) Supporting research, development, and 
                dissemination of technology with universal design 
                features, so that the technology is accessible to the 
                broadest range of individuals with disabilities without 
                further modification or adaptation.
                    ``(C) Demonstrating the use of systems to provide 
                parents and teachers with information and training 
                concerning early diagnosis of, intervention for, and 
                effective teaching strategies for, young children with 
                reading disabilities.
                    ``(D) Supporting the use of Internet-based 
                communications for students with cognitive disabilities 
                in order to maximize their academic and functional 
                skills.

    ``(c) Educational Media Services.--
            ``(1) In general.--In carrying out this section, the 
        Secretary shall support--
                    ``(A) educational media activities that are designed 
                to be of educational value in the classroom setting to 
                children with disabilities;
                    ``(B) providing video description, open captioning, 
                or closed captioning, that is appropriate for use in the 
                classroom setting, of--
                          ``(i) television programs;
                          ``(ii) videos;
                          ``(iii) other materials, including programs 
                      and materials associated with new and emerging 
                      technologies, such as CDs, DVDs, video streaming, 
                      and other forms of multimedia; or
                          ``(iv) news (but only until September 30, 
                      2006);
                    ``(C) distributing materials described in 
                subparagraphs (A) and (B) through such mechanisms as a 
                loan service; and
                    ``(D) providing free educational materials, 
                including textbooks, in accessible media for visually 
                impaired and print disabled students in elementary 
                schools and secondary schools, postsecondary schools, 
                and graduate schools.
            ``(2) Limitation.--The video description, open captioning, 
        or closed captioning described in paragraph (1)(B) shall be 
        provided only when the description or captioning has not been 
        previously provided by the producer or distributor, or has not 
        been fully funded by other sources.

    ``(d) Applications.--
            ``(1) In general.--Any eligible entity that wishes to 
        receive a grant, or enter into a contract or cooperative 
        agreement, under subsection (b) or (c) shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may require.
            ``(2) Special rule.--For the purpose of an application for 
        an award to carry out activities described in subsection 
        (c)(1)(D), such eligible entity shall--
                    ``(A) be a national, nonprofit entity with a proven 
                track record of meeting the needs of students with print 
                disabilities through services described in subsection 
                (c)(1)(D);
                    ``(B) have the capacity to produce, maintain, and 
                distribute in a timely fashion, up-to-date textbooks in 
                digital audio formats to qualified students; and

[[Page 118 STAT. 2794]]

                    ``(C) have a demonstrated ability to significantly 
                leverage Federal funds through other public and private 
                contributions, as well as through the expansive use of 
                volunteers.

    ``(e) National Instructional Materials Access Center.--
            ``(1) <<NOTE: Establishment. Deadline.>> In general.--The 
        Secretary shall establish and support, through the American 
        Printing House for the Blind, a center to be known as the 
        `National Instructional Materials Access Center' not later than 
        1 year after the date of enactment of the Individuals with 
        Disabilities Education Improvement Act of 2004.
            ``(2) Duties.--The duties of the National Instructional 
        Materials Access Center are the following:
                    ``(A) To receive and maintain a catalog of print 
                instructional materials prepared in the National 
                Instructional Materials Accessibility Standard, as 
                established by the Secretary, made available to such 
                center by the textbook publishing industry, State 
                educational agencies, and local educational agencies.
                    ``(B) To provide access to print instructional 
                materials, including textbooks, in accessible media, 
                free of charge, to blind or other persons with print 
                disabilities in elementary schools and secondary 
                schools, in accordance with such terms and procedures as 
                the National Instructional Materials Access Center may 
                prescribe.
                    ``(C) To develop, adopt and publish procedures to 
                protect against copyright infringement, with respect to 
                the print instructional materials provided under 
                sections 612(a)(23) and 613(a)(6).
            ``(3) Definitions.--In this subsection:
                    ``(A) Blind or other persons with print 
                disabilities.--The term `blind or other persons with 
                print disabilities' means children served under this Act 
                and who may qualify in accordance with the Act entitled 
                `An Act to provide books for the adult blind', approved 
                March 3, 1931 (2 U.S.C. 135a; 46 Stat. 1487) to receive 
                books and other publications produced in specialized 
                formats.
                    ``(B) National instructional materials accessibility 
                standard.--The term `National Instructional Materials 
                Accessibility Standard' means the standard established 
                by the Secretary to be used in the preparation of 
                electronic files suitable and used solely for efficient 
                conversion into specialized formats.
                    ``(C) Print instructional materials.--The term 
                `print instructional materials' means printed textbooks 
                and related printed core materials that are written and 
                published primarily for use in elementary school and 
                secondary school instruction and are required by a State 
                educational agency or local educational agency for use 
                by students in the classroom.
                    ``(D) Specialized formats.--The term `specialized 
                formats' has the meaning given the term in section 
                121(d)(3) of title 17, United States Code.
            ``(4) Applicability.--This subsection shall apply to print 
        instructional materials published after the date on which the 
        final rule establishing the National Instructional Materials 
        Accessibility Standard was published in the Federal Register.

[[Page 118 STAT. 2795]]

            ``(5) Liability of the secretary.--Nothing in this 
        subsection shall be construed to establish a private right of 
        action against the Secretary for failure to provide 
        instructional materials directly, or for failure by the National 
        Instructional Materials Access Center to perform the duties of 
        such center, or to otherwise authorize a private right of action 
        related to the performance by such center, including through the 
        application of the rights of children and parents established 
        under this Act.
            ``(6) Inapplicability.--Subsections (a) through (d) shall 
        not apply to this subsection.

``SEC. 675. <<NOTE: 20 USC 1475.>> AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this subpart 
such sums as may be necessary for each of the fiscal years 2005 through 
2010.

                     ``Subpart 4--General Provisions

``SEC. 681. <<NOTE: 20 USC 1481.>> COMPREHENSIVE PLAN FOR SUBPARTS 2 AND 
            3.

    ``(a) Comprehensive Plan.--
            ``(1) In general.--After receiving input from interested 
        individuals with relevant expertise, the Secretary shall develop 
        and implement a comprehensive plan for activities carried out 
        under subparts 2 and 3 in order to enhance the provision of 
        early intervention services, educational services, related 
        services, and transitional services to children with 
        disabilities under parts B and C. To the extent practicable, the 
        plan shall be coordinated with the plan developed pursuant to 
        section 178(c) of the Education Sciences Reform Act of 2002 and 
        shall include mechanisms to address early intervention, 
        educational, related service and transitional needs identified 
        by State educational agencies in applications submitted for 
        State personnel development grants under subpart 1 and for 
        grants under subparts 2 and 3.
            ``(2) Public comment.--The Secretary shall provide a public 
        comment period of not less than 45 days on the plan.
            ``(3) Distribution of funds.--In implementing the plan, the 
        Secretary shall, to the extent appropriate, ensure that funds 
        awarded under subparts 2 and 3 are used to carry out activities 
        that benefit, directly or indirectly, children with the full 
        range of disabilities and of all ages.
            ``(4) Reports to congress.--The Secretary shall annually 
        report to Congress on the Secretary's activities under subparts 
        2 and 3, including an initial report not later than 12 months 
        after the date of enactment of the Individuals with Disabilities 
        Education Improvement Act of 2004.

    ``(b) Assistance Authorized.--The Secretary is authorized to award 
grants to, or enter into contracts or cooperative agreements with, 
eligible entities to enable the eligible entities to carry out the 
purposes of such subparts in accordance with the comprehensive plan 
described in subsection (a).
    ``(c) Special Populations.--
            ``(1) Application requirement.--In making an award of a 
        grant, contract, or cooperative agreement under subpart 2 or 3, 
        the Secretary shall, as appropriate, require an eligible

[[Page 118 STAT. 2796]]

        entity to demonstrate how the eligible entity will address the 
        needs of children with disabilities from minority backgrounds.
            ``(2) <<NOTE: Historically Black colleges and 
        universities.>> Required outreach and technical assistance.--
        Notwithstanding any other provision of this title, the Secretary 
        shall reserve not less than 2 percent of the total amount of 
        funds appropriated to carry out subparts 2 and 3 for either or 
        both of the following activities:
                    ``(A) Providing outreach and technical assistance to 
                historically Black colleges and universities, and to 
                institutions of higher education with minority 
                enrollments of not less than 25 percent, to promote the 
                participation of such colleges, universities, and 
                institutions in activities under this subpart.
                    ``(B) Enabling historically Black colleges and 
                universities, and the institutions described in 
                subparagraph (A), to assist other colleges, 
                universities, institutions, and agencies in improving 
                educational and transitional results for children with 
                disabilities, if the historically Black colleges and 
                universities and the institutions of higher education 
                described in subparagraph (A) meet the criteria 
                established by the Secretary under this subpart.

    ``(d) Priorities.--The Secretary, in making an award of a grant, 
contract, or cooperative agreement under subpart 2 or 3, may, without 
regard to the rulemaking procedures under section 553 of title 5, United 
States Code, limit competitions to, or otherwise give priority to--
            ``(1) projects that address 1 or more--
                    ``(A) age ranges;
                    ``(B) disabilities;
                    ``(C) school grades;
                    ``(D) types of educational placements or early 
                intervention environments;
                    ``(E) types of services;
                    ``(F) content areas, such as reading; or
                    ``(G) effective strategies for helping children with 
                disabilities learn appropriate behavior in the school 
                and other community based educational settings;
            ``(2) projects that address the needs of children based on 
        the severity or incidence of their disability;
            ``(3) projects that address the needs of--
                    ``(A) low achieving students;
                    ``(B) underserved populations;
                    ``(C) children from low income families;
                    ``(D) limited English proficient children;
                    ``(E) unserved and underserved areas;
                    ``(F) rural or urban areas;
                    ``(G) children whose behavior interferes with their 
                learning and socialization;
                    ``(H) children with reading difficulties;
                    ``(I) children in public charter schools;
                    ``(J) children who are gifted and talented; or
                    ``(K) children with disabilities served by local 
                educational agencies that receive payments under title 
                VIII of the Elementary and Secondary Education Act of 
                1965;
            ``(4) projects to reduce inappropriate identification of 
        children as children with disabilities, particularly among 
        minority children;

[[Page 118 STAT. 2797]]

            ``(5) projects that are carried out in particular areas of 
        the country, to ensure broad geographic coverage;
            ``(6) projects that promote the development and use of 
        technologies with universal design, assistive technology 
        devices, and assistive technology services to maximize children 
        with disabilities' access to and participation in the general 
        education curriculum; and
            ``(7) any activity that is authorized in subpart 2 or 3.

    ``(e) Eligibility for Financial Assistance.--No State or local 
educational agency, or other public institution or agency, may receive a 
grant or enter into a contract or cooperative agreement under subpart 2 
or 3 that relates exclusively to programs, projects, and activities 
pertaining to children aged 3 through 5, inclusive, unless the State is 
eligible to receive a grant under section 619(b).

``SEC. 682. <<NOTE: 20 USC 1482.>> ADMINISTRATIVE PROVISIONS.

    ``(a) Applicant and Recipient Responsibilities.--
            ``(1) Development and assessment of projects.--The Secretary 
        shall require that an applicant for, and a recipient of, a 
        grant, contract, or cooperative agreement for a project under 
        subpart 2 or 3--
                    ``(A) involve individuals with disabilities or 
                parents of individuals with disabilities ages birth 
                through 26 in planning, implementing, and evaluating the 
                project; and
                    ``(B) where appropriate, determine whether the 
                project has any potential for replication and adoption 
                by other entities.
            ``(2) Additional responsibilities.--The Secretary may 
        require a recipient of a grant, contract, or cooperative 
        agreement under subpart 2 or 3 to--
                    ``(A) share in the cost of the project;
                    ``(B) prepare any findings and products from the 
                project in formats that are useful for specific 
                audiences, including parents, administrators, teachers, 
                early intervention personnel, related services 
                personnel, and individuals with disabilities;
                    ``(C) disseminate such findings and products; and
                    ``(D) collaborate with other such recipients in 
                carrying out subparagraphs (B) and (C).

    ``(b) Application Management.--
            ``(1) Standing panel.--
                    ``(A) In general.--The Secretary shall establish and 
                use a standing panel of experts who are qualified, by 
                virtue of their training, expertise, or experience, to 
                evaluate each application under subpart 2 or 3 that 
                requests more than $75,000 per year in Federal financial 
                assistance.
                    ``(B) Membership.--The standing panel shall include, 
                at a minimum--
                          ``(i) individuals who are representatives of 
                      institutions of higher education that plan, 
                      develop, and carry out high quality programs of 
                      personnel preparation;
                          ``(ii) individuals who design and carry out 
                      scientifically based research targeted to the 
                      improvement of special education programs and 
                      services;

[[Page 118 STAT. 2798]]

                          ``(iii) individuals who have recognized 
                      experience and knowledge necessary to integrate 
                      and apply scientifically based research findings 
                      to improve educational and transitional results 
                      for children with disabilities;
                          ``(iv) individuals who administer programs at 
                      the State or local level in which children with 
                      disabilities participate;
                          ``(v) individuals who prepare parents of 
                      children with disabilities to participate in 
                      making decisions about the education of their 
                      children;
                          ``(vi) individuals who establish policies that 
                      affect the delivery of services to children with 
                      disabilities;
                          ``(vii) individuals who are parents of 
                      children with disabilities ages birth through 26 
                      who are benefiting, or have benefited, from 
                      coordinated research, personnel preparation, and 
                      technical assistance; and
                          ``(viii) individuals with disabilities.
                    ``(C) Term.--No individual shall serve on the 
                standing panel for more than 3 consecutive years.
            ``(2) Peer-review panels for particular competitions.--
                    ``(A) Composition.--The Secretary shall ensure that 
                each subpanel selected from the standing panel that 
                reviews an application under subpart 2 or 3 includes--
                          ``(i) individuals with knowledge and expertise 
                      on the issues addressed by the activities 
                      described in the application; and
                          ``(ii) to the extent practicable, parents of 
                      children with disabilities ages birth through 26, 
                      individuals with disabilities, and persons from 
                      diverse backgrounds.
                    ``(B) Federal employment limitation.--A majority of 
                the individuals on each subpanel that reviews an 
                application under subpart 2 or 3 shall be individuals 
                who are not employees of the Federal Government.
            ``(3) Use of discretionary funds for administrative 
        purposes.--
                    ``(A) Expenses and fees of non-federal panel 
                members.--The Secretary may use funds available under 
                subpart 2 or 3 to pay the expenses and fees of the panel 
                members who are not officers or employees of the Federal 
                Government.
                    ``(B) Administrative support.--The Secretary may use 
                not more than 1 percent of the funds appropriated to 
                carry out subpart 2 or 3 to pay non-Federal entities for 
                administrative support related to management of 
                applications submitted under subpart 2 or 3, 
                respectively.

    ``(c) Program Evaluation.--The Secretary may use funds made 
available to carry out subpart 2 or 3 to evaluate activities carried out 
under subpart 2 or 3, respectively.
    ``(d) Minimum Funding Required.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall ensure that, for each fiscal year, not less than the 
        following amounts are provided under subparts 2 and 3 to address 
        the following needs:

[[Page 118 STAT. 2799]]

                    ``(A) $12,832,000 to address the educational, 
                related services, transitional, and early intervention 
                needs of children with deaf-blindness.
                    ``(B) $4,000,000 to address the postsecondary, 
                vocational, technical, continuing, and adult education 
                needs of individuals with deafness.
                    ``(C) $4,000,000 to address the educational, related 
                services, and transitional needs of children with an 
                emotional disturbance and those who are at risk of 
                developing an emotional disturbance.
            ``(2) Ratable reduction.--If the sum of the amount 
        appropriated to carry out subparts 2 and 3, and part E of the 
        Education Sciences Reform Act of 2002 for any fiscal year is 
        less than $130,000,000, the amounts listed in paragraph (1) 
        shall be ratably reduced for the fiscal year.''.

        TITLE II--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

SEC. 201. NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH.

    (a) Amendment.--The Education Sciences Reform Act of 2002 (20 U.S.C. 
9501 et seq.) is amended--
            (1) by redesignating part E as part F; and
            (2) by inserting after part D the following:

        ``PART E--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

``SEC. 175. <<NOTE: 20 USC 9567.>> ESTABLISHMENT.

    ``(a) Establishment.--There is established in the Institute a 
National Center for Special Education Research (in this part referred to 
as the `Special Education Research Center').
    ``(b) Mission.--The mission of the Special Education Research Center 
is--
            ``(1) to sponsor research to expand knowledge and 
        understanding of the needs of infants, toddlers, and children 
        with disabilities in order to improve the developmental, 
        educational, and transitional results of such individuals;
            ``(2) to sponsor research to improve services provided 
        under, and support the implementation of, the Individuals with 
        Disabilities Education Act (20 U.S.C. 1400 et seq.); and
            ``(3) to evaluate the implementation and effectiveness of 
        the Individuals with Disabilities Education Act in coordination 
        with the National Center for Education Evaluation and Regional 
        Assistance.

    ``(c) Applicability of Education Sciences Reform Act of 2002.--Parts 
A and F, and the standards for peer review of applications and for the 
conduct and evaluation of research under sections 133(a) and 134, 
respectively, shall apply to the Secretary, the Director, and the 
Commissioner in carrying out this part.

``SEC. 176. <<NOTE: 20 USC 9567a.>> COMMISSIONER FOR SPECIAL EDUCATION 
            RESEARCH.

    ``The Special Education Research Center shall be headed by a 
Commissioner for Special Education Research (in this part referred to as 
the `Special Education Research Commissioner') who

[[Page 118 STAT. 2800]]

shall have substantial knowledge of the Special Education Research 
Center's activities, including a high level of expertise in the fields 
of research, research management, and the education of children with 
disabilities.

``SEC. 177. <<NOTE: 20 USC 9567b.>> DUTIES.

    ``(a) General Duties.--The Special Education Research Center shall 
carry out research activities under this part consistent with the 
mission described in section 175(b), such as activities that--
            ``(1) improve services provided under the Individuals with 
        Disabilities Education Act in order to improve--
                    ``(A) academic achievement, functional outcomes, and 
                educational results for children with disabilities; and
                    ``(B) developmental outcomes for infants or toddlers 
                with disabilities;
            ``(2) identify scientifically based educational practices 
        that support learning and improve academic achievement, 
        functional outcomes, and educational results for all students 
        with disabilities;
            ``(3) examine the special needs of preschool aged children, 
        infants, and toddlers with disabilities, including factors that 
        may result in developmental delays;
            ``(4) identify scientifically based related services and 
        interventions that promote participation and progress in the 
        general education curriculum and general education settings;
            ``(5) improve the alignment, compatibility, and development 
        of valid and reliable assessments, including alternate 
        assessments, as required by section 1111(b) of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 6311(b));
            ``(6) examine State content standards and alternate 
        assessments for students with significant cognitive impairment 
        in terms of academic achievement, individualized instructional 
        need, appropriate education settings, and improved post-school 
        results;
            ``(7) examine the educational, developmental, and 
        transitional needs of children with high incidence and low 
        incidence disabilities;
            ``(8) examine the extent to which overidentification and 
        underidentification of children with disabilities occurs, and 
        the causes thereof;
            ``(9) improve reading and literacy skills of children with 
        disabilities;
            ``(10) examine and improve secondary and postsecondary 
        education and transitional outcomes and results for children 
        with disabilities;
            ``(11) examine methods of early intervention for children 
        with disabilities, including children with multiple or complex 
        developmental delays;
            ``(12) examine and incorporate universal design concepts in 
        the development of standards, assessments, curricula, and 
        instructional methods to improve educational and transitional 
        results for children with disabilities;
            ``(13) improve the preparation of personnel, including early 
        intervention personnel, who provide educational and related 
        services to children with disabilities to increase the academic 
        achievement and functional performance of students with 
        disabilities;

[[Page 118 STAT. 2801]]

            ``(14) examine the excess costs of educating a child with a 
        disability and expenses associated with high cost special 
        education and related services;
            ``(15) help parents improve educational results for their 
        children, particularly related to transition issues;
            ``(16) address the unique needs of children with significant 
        cognitive disabilities; and
            ``(17) examine the special needs of limited English 
        proficient children with disabilities.

    ``(b) Standards.--The Special Education Research Commissioner shall 
ensure that activities assisted under this section--
            ``(1) conform to high standards of quality, integrity, 
        accuracy, validity, and reliability;
            ``(2) are carried out in accordance with the standards for 
        the conduct and evaluation of all research and development 
        established by the National Center for Education Research; and
            ``(3) are objective, secular, neutral, and nonideological, 
        and are free of partisan political influence, and racial, 
        cultural, gender, regional, or disability bias.

    ``(c) Plan.--The Special Education Research Commissioner shall 
propose to the Director a research plan, developed in collaboration with 
the Assistant Secretary for Special Education and Rehabilitative 
Services, that--
            ``(1) is consistent with the priorities and mission of the 
        Institute and the mission of the Special Education Research 
        Center;
            ``(2) is carried out, updated, and modified, as appropriate;
            ``(3) is consistent with the purposes of the Individuals 
        with Disabilities Education Act;
            ``(4) contains an appropriate balance across all age ranges 
        and types of children with disabilities;
            ``(5) provides for research that is objective and uses 
        measurable indicators to assess its progress and results; and
            ``(6) is coordinated with the comprehensive plan developed 
        under section 681 of the Individuals with Disabilities Education 
        Act.

    ``(d) Grants, Contracts, and Cooperative Agreements.--
            ``(1) In general.--In carrying out the duties under this 
        section, the Director may award grants to, or enter into 
        contracts or cooperative agreements with, eligible applicants.
            ``(2) Eligible applicants.--Activities carried out under 
        this subsection through contracts, grants, or cooperative 
        agreements shall be carried out only by recipients with the 
        ability and capacity to conduct scientifically valid research.
            ``(3) Applications.--An eligible applicant that wishes to 
        receive a grant, or enter into a contract or cooperative 
        agreement, under this section shall submit an application to the 
        Director at such time, in such manner, and containing such 
        information as the Director may require.

    ``(e) Dissemination.--The Special Education Research Center shall--
            ``(1) synthesize and disseminate, through the National 
        Center for Education Evaluation and Regional Assistance, the 
        findings and results of special education research conducted or 
        supported by the Special Education Research Center; and

[[Page 118 STAT. 2802]]

            ``(2) assist the Director in the preparation of a biennial 
        report, as described in section 119.

    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part such sums as may be necessary for 
each of fiscal years 2005 through 2010.''.
    (b) Conforming Amendments.--
            (1) Amendments to the table of contents.--The table of 
        contents in section 1 of the Act entitled ``An Act to provide 
        for improvement of Federal education research, statistics, 
        evaluation, information, and dissemination, and for other 
        purposes'', approved November 5, 2002 (116 Stat. 1940; Public 
        Law 107-279), is amended--
                    (A) by redesignating the item relating to part E as 
                the item relating to part F; and
                    (B) by inserting after the item relating to section 
                174 the following:

        ``Part E--National Center for Special Education Research

``Sec. 175. Establishment.
``Sec. 176. Commissioner for Special Education Research.
``Sec. 177. Duties.''.

            (2) Education sciences reform act of 2002.--The Education 
        Sciences Reform Act of 2002 (20 U.S.C. 9501 et seq.) is 
        amended--
                    (A) in section 111(b)(1)(A) (20 U.S.C. 
                9511(b)(1)(A)), by inserting ``and special education'' 
                after ``early childhood education'';
                    (B) in section 111(c)(3) (20 U.S.C. 9511(c)(3))--
                          (i) in subparagraph (B), by striking ``and'' 
                      after the semicolon;
                          (ii) in subparagraph (C), by striking the 
                      period and inserting ``; and''; and
                          (iii) by adding at the end the following:
                    ``(D) the National Center for Special Education 
                Research (as described in part E).'';
                    (C) in section 115(a) (20 U.S.C. 9515(a)), by 
                striking ``including those'' and all that follows 
                through ``such as'' and inserting ``including those 
                associated with the goals and requirements of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6301 et seq.), the Individuals with Disabilities 
                Education Act (20 U.S.C. 1400 et seq.), and the Higher 
                Education Act of 1965 (20 U.S.C. 1001 et seq.), such 
                as''; and
                    (D) in section 116(c)(4)(A)(ii) (20 U.S.C. 
                9516(c)(4)(A)(ii), by inserting ``special education 
                experts,'' after ``early childhood experts,''.
            (3) Elementary and secondary education act of 1965.--Section 
        1117(a)(3) of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 6317(a)(3)) is amended by striking ``part E'' and 
        inserting ``part D''.

SEC. 202. NATIONAL BOARD FOR EDUCATION SCIENCES.

    Section 116(c)(9) of the Education Sciences Reform Act of 2002 (20 
U.S.C. 9516(c)(9)) is amended by striking the third sentence and 
inserting the following: ``Meetings of the Board are subject to section 
552b of title 5, United States Code (commonly referred to as the 
Government in the Sunshine Act).''.

[[Page 118 STAT. 2803]]

SEC. 203. REGIONAL ADVISORY COMMITTEES.

    Section 206(d)(3) of the Educational Technical Assistance Act of 
2002 (20 U.S.C. 9605(d)(3)) is amended by striking ``Academy'' and 
inserting ``Institute''.

                   TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. AMENDMENT TO CHILDREN'S HEALTH ACT OF 2000.

    Section 1004 of the Children's Health Act of 2000 (42 U.S.C. 285g 
note) is amended--
            (1) in subsection (b), by striking ``Agency'' and inserting 
        ``Agency, and the Department of Education''; and
            (2) in subsection (c)--
                    (A) in paragraph (2), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) be conducted in compliance with section 444 of the 
        General Education Provisions Act (20 U.S.C. 1232g), including 
        the requirement of prior parental consent for the disclosure of 
        any education records, except without the use of authority or 
        exceptions granted to authorized representatives of the 
        Secretary of Education for the evaluation of Federally-supported 
        education programs or in connection with the enforcement of the 
        Federal legal requirements that relate to such programs.''.

SEC. 302. EFFECTIVE DATES.

    (a) <<NOTE: 20 USC 1400 note.>> Parts A, B, and C, and subpart 1 of 
part D.--
            (1) In general.--Except as provided in paragraph (2), parts 
        A, B, and C, and subpart 1 of part D, of the Individuals with 
        Disabilities Education Act, as amended by title I, shall take 
        effect on July 1, 2005.
            (2) Highly qualified definition.--Subparagraph (A), and 
        subparagraphs (C) through (F), of section 602(10) of the 
        Individuals with Disabilities Education Act, as amended by title 
        I, shall take effect on the date of enactment of this Act for 
        purposes of the Elementary and Secondary Education Act of 1965.

    (b) Subparts 2, 3, and 4 of part D.--Subparts 2, 3, and 4 of part D 
of the Individuals with Disabilities Education Act, as amended by title 
I, shall take effect on the date of enactment of this Act.
    (c) <<NOTE: 20 USC 9567b note.>> Education Sciences Reform Act of 
2002.--
            (1) National center for special education research.--
        Sections 175, 176, and 177 (other than section 177(c)) of the 
        Education Sciences Reform Act of 2002, as enacted by section 
        201(a)(2) of this Act, shall take effect on the date of 
        enactment of this Act.
            (2) Plan.--Section 177(c) of the Education Sciences Reform 
        Act of 2002, as enacted by section 201(a)(2) of this Act, shall 
        take effect on October 1, 2005.

SEC. 303. <<NOTE: 20 USC 1400 note.>> TRANSITION.

    (a) Orderly Transition.--

[[Page 118 STAT. 2804]]

            (1) In general.--The Secretary of Education (in this section 
        referred to as ``the Secretary'') shall take such steps as are 
        necessary to provide for the orderly transition from the 
        Individuals with Disabilities Education Act, as such Act was in 
        effect on the day preceding the date of enactment of this Act, 
        to the Individuals with Disabilities Education Act and part E of 
        the Education Sciences Reform Act of 2002, as amended by this 
        Act.
            (2) Limitation.--The Secretary's authority in paragraph (1) 
        shall terminate 1 year after the date of enactment of this Act.

    (b) Multi-year Awards.--Notwithstanding any other provision of law, 
the Secretary may use funds appropriated under part D of the Individuals 
with Disabilities Education Act to make continuation awards for projects 
that were funded under section 618, and part D, of the Individuals with 
Disabilities Education Act (as such section and part were in effect on 
September 30, 2004), in accordance with the terms of the original 
awards.
    (c) Research.--Notwithstanding section 302(b) or any other provision 
of law, the Secretary may award funds that are appropriated under the 
Department of Education Appropriations Act, 2005 for special education 
research under either of the headings ``Special Education'' or 
``Institute of Education Sciences'' in accordance with sections 672 and 
674 of the Individuals with Disabilities Education Act, as such sections 
were in effect on October 1, 2004.

SEC. 304. REPEALER.

    Section 644 of the <<NOTE: 20 USC 1444.>> Individuals with 
Disabilities Education Act, as such section was in effect on the day 
before the enactment of this Act, is repealed.

SEC. 305. IDEA TECHNICAL AMENDMENTS TO OTHER LAWS.

    (a) Title 10.--Section 2164(f) of title 10, United States Code is 
amended--
            (1) in paragraph (1)(B)--
                    (A) by striking ``infants and toddlers'' each place 
                the term appears and inserting ``infants or toddlers'';
                    (B) by striking ``part H'' and inserting ``part C''; 
                and
                    (C) by striking ``1471'' and inserting ``1431''; and
            (2) in paragraph (3)--
                    (A) in subparagraph (A)--
                          (i) by striking ``602(a)(1)'' and inserting 
                      ``602''; and
                          (ii) by striking ``1401(a)(1)'' and inserting 
                      ``1401'';
                    (B) by striking subparagraph (B);
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B); and
                    (D) in subparagraph (B) (as so redesignated)--
                          (i) by striking ``and toddlers'' and inserting 
                      ``or toddlers'';
                          (ii) by striking ``672(1)'' and inserting 
                      ``632''; and
                          (iii) by striking ``1472(1)'' and inserting 
                      ``1432''.

    (b) Defense Dependents Education Act of 1978.--Section 1409(c)(2) of 
the Defense Dependents Education Act of 1978 (20 U.S.C. 927(c)(2)) is 
amended--
            (1) by striking ``677'' and inserting ``636''; and
            (2) by striking ``part H'' and inserting ``part C''.

[[Page 118 STAT. 2805]]

    (c) Higher Education Act of 1965.--The Higher Education Act of 1965 
(20 U.S.C. 1001 et seq.) is amended--
            (1) in section 465(a)(2)(C) (20 U.S.C. 1087ee(a)(2)(C), by 
        striking ``Individuals With'' and inserting ``Individuals with'' 
        and;
            (2) in section 469(c) (20 U.S.C. 1087ii(c)), by striking 
        ``602(a)(1) and 672(1)'' and inserting ``602 and 632''.

    (d) Education of the Deaf Act.--The matter preceding subparagraph 
(A) of section 104(b)(2) of the Education of the Deaf Act (20 U.S.C. 
4304(b)(2)) is amended by striking ``618(a)(1)(A)'' and inserting 
``618(a)(1)''.
    (e) Goals 2000: Educate America Act.--Section 3(a)(9) of the Goals 
2000: Educate America Act (20 U.S.C. 5802(a)(9)) is amended by striking 
``602(a)(17)'' and inserting ``602''.
    (f) School-to-Work Opportunities Act of 1994.--Section 4(15) of the 
School-to-Work Opportunities Act of 1994 (20 U.S.C. 6103(15)) is 
amended--
            (1) by striking ``602(a)(17)'' and inserting ``602''; and
            (2) by striking ``1401(17)'' and inserting ``1401''.

    (g) Elementary and Secondary Education Act of 1965.--The Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) is 
amended--
            (1) in section 1111(b)(2)(I)(ii) (20 U.S.C. 
        6311(b)(2)(I)(ii)), by striking ``612(a)(17)(A)'' and inserting 
        ``612(a)(16)(A)'';
            (2) in section 5208 (20 U.S.C. 7221g), by striking 
        ``602(11)'' and inserting ``602''; and
            (3) in section 5563(b)(8)(C) (20 U.S.C. 7273b(b)(8)(C)), by 
        striking ``682'' and inserting ``671''.

    (h) Rehabilitation Act of 1973.--The Rehabilitation Act of 1973 (29 
U.S.C. 701 et seq.) is amended--
            (1) in section 101(a)(11)(D)(ii) (29 U.S.C. 
        721(a)(11)(D)(ii)), by striking ``(as added by section 101 of 
        Public Law 105-17)'';
            (2) in section 105(b)(1)(A)(ii) (29 U.S.C. 
        725(b)(1)(A)(ii)), by striking ``682(a) of the Individuals with 
        Disabilities Education Act (as added by section 101 of the 
        Individuals with Disabilities Education Act Amendments of 1997; 
        Public Law 105-17)'' and inserting ``671 of the Individuals with 
        Disabilities Education Act'';
            (3) in section 105(c)(6) (29 U.S.C. 725(c)(6))--
                    (A) by striking ``612(a)(21)'' and inserting 
                ``612(a)(20)'';
                    (B) by striking ``Individual with'' and inserting 
                ``Individuals with''; and
                    (C) by striking ``(as amended by section 101 of the 
                Individuals with Disabilities Education Act Amendments 
                of 1997; Public Law 105-17)'';
            (4) in section 302(f)(1)(D)(ii) (29 U.S.C. 772 
        (f)(1)(D)(ii)), by striking ``(as amended by section 101 of the 
        Individuals with Disabilities Education Act Amendments of 1997 
        (Public Law 105-17))'';
            (5) in section 303(c)(6) (29 U.S.C. 773(c)(6))--
                    (A) by striking ``682(a)'' and inserting ``671''; 
                and
                    (B) by striking ``(as added by section 101 of the 
                Individuals with Disabilities Education Act Amendments 
                of 1997; Public Law 105-17)''; and
            (6) in section 303(c)(4)(A)(ii) (29 U.S.C. 
        773(c)(4)(A)(ii)), by striking ``682(a) of the Individuals with 
        Disabilities Education

[[Page 118 STAT. 2806]]

        Act (as added by section 101 of the Individuals with 
        Disabilities Education Act Amendments of 1997; Public Law 105-
        17)'' and inserting ``671 of the Individuals with Disabilities 
        Education Act''.

    (i) Public Health Service Act.--The Public Health Service Act (42 
U.S.C. 201 et seq.) is amended--
            (1) in section 399A(f) <<NOTE: 42 USC 290bb-25.>> (42 U.S.C. 
        280d(f), by striking ``part H'' and inserting ``part C'';
            (2) in section 399(n)(3) (42 U.S.C. 280c-6(n)(3)), by 
        striking ``part H'' and inserting ``part C'';
            (3) in section 399A(b)(8) <<NOTE: 42 USC 290bb-25.>> (42 
        U.S.C. 280d(b)(8)), by striking ``part H'' and inserting ``part 
        C'';
            (4) in section 562(d)(3)(B) (42 U.S.C. 290ff-1(d)(3)(B)), by 
        striking ``and H'' and inserting ``and C''; and
            (5) in section 563(d)(2) (42 U.S.C. 290ff-2(d)(2)), by 
        striking ``602(a)(19)'' and inserting ``602''.

    (j) Social Security Act.--The Social Security Act (42 U.S.C. 301 et 
seq.) is amended--
            (1) in section 1903(c) (42 U.S.C. 1396b(c)), by striking 
        ``part H'' and inserting ``part C''; and
            (2) in section 1915(c)(5)(C)(i) (42 U.S.C. 
        1396n(c)(5)(C)(i)), by striking ``(as defined in section 602(16) 
        and (17) of the Education of the Handicapped Act (20 U.S.C. 
        1401(16), (17))'' and inserting ``(as such terms are defined in 
        section 602 of the Individuals with Disabilities Education Act 
        (20 U.S.C. 1401))''.

    (k) Domestic Volunteer Service Act of 1973.--Section 211(a) of the 
Domestic Volunteer Service Act of 1973 (42 U.S.C. 5011(a)) is amended--
            (1) by striking ``part H'' and inserting ``part C''; and
            (2) by striking ``1471'' and inserting ``1431''.

    (l) Head Start Act.--The Head Start Act (42 U.S.C. 9831 et seq.) is 
amended--
            (1) in section 640(a)(5)(C)(iv) (42 U.S.C. 
        9835(a)(5)(C)(iv)), by striking ``1445'' and inserting ``1444'';
            (2) in section 640(d) (42 U.S.C. 9835(d))--
                    (A) by striking ``U.S.C'' and inserting ``U.S.C.''; 
                and
                    (B) by striking ``1445'' and inserting ``1444'';
            (3) in section 641(d)(3) (42 U.S.C. 9836(d)(3)), by striking 
        ``U.S.C 1431-1445'' and inserting ``U.S.C. 1431-1444''; and
            (4) in section 642(c) (42 U.S.C. 9837(c)), by striking 
        ``1445'' and inserting ``1444''.

    (m) National and Community Service Act of 1990.--Section 101(21)(B) 
of the National and Community Service Act of 1990 (42 U.S.C. 
12511(21)(B)) is amended--
            (1) by striking ``602(a)(1)'' and inserting ``602''; and
            (2) by striking ``1401(a)(1)'' and inserting ``1401''.

    (n) Developmental Disabilities Assistance and Bill of Rights Act of 
2000.--The Developmental Disabilities Assistance and Bill of Rights Act 
of 2000 (42 U.S.C. 15001 et seq.) is amended--
            (1) in section 125(c)(5)(G)(i) (42 U.S.C. 
        15025(c)(5)(G)(i)), by striking ``subtitle C'' and inserting 
        ``part C''; and
            (2) in section 154(a)(3)(E)(ii)(VI) (42 U.S.C. 
        15064(a)(3)(E)(ii)(VI))--
                    (A) by striking ``682 or 683'' and inserting ``671 
                or 672''; and
                    (B) by striking ``(20 U.S.C. 1482, 1483)''.

[[Page 118 STAT. 2807]]

    (o) District of Columbia School Reform Act of 1995.--The District of 
Columbia School Reform Act of 1995 (Public Law 104-134) is amended--
            (1) <<NOTE: 110 Stat. 1321-107.>> in section 2002(32)--
                    (A) by striking ``602(a)(1)'' and inserting ``602''; 
                and
                    (B) by striking ``1401(a)(1)'' and inserting 
                ``1401'';
            (2) in section 2202(19), <<NOTE: 110 Stat. 1321-116.>> by 
        striking ``Individuals With'' and inserting ``Individuals 
        with''; and
            (3) <<NOTE: 110 Stat. 1321-125.>> in section 2210--
                    (A) in the heading for subsection (c), by striking 
                ``With Disabilities'' and inserting ``with 
                Disabilities''; and
                    (B) in subsection (c), by striking ``Individuals 
                With'' and inserting ``Individuals with''.

SEC. 306. COPYRIGHT.

    Section 121 of title 17, United States Code, is amended--
            (1) by redesignating subsection (c) as subsection (d);
            (2) by inserting after subsection (b) the following:

    ``(c) Notwithstanding the provisions of section 106, it is not an 
infringement of copyright for a publisher of print instructional 
materials for use in elementary or secondary schools to create and 
distribute to the National Instructional Materials Access Center copies 
of the electronic files described in sections 612(a)(23)(C), 613(a)(6), 
and section 674(e) of the Individuals with Disabilities Education Act 
that contain the contents of print instructional materials using the 
National Instructional Material Accessibility Standard (as defined in 
section 674(e)(3) of that Act), if--
            ``(1) the inclusion of the contents of such print 
        instructional materials is required by any State educational 
        agency or local educational agency;
            ``(2) the publisher had the right to publish such print 
        instructional materials in print formats; and
            ``(3) such copies are used solely for reproduction or 
        distribution of the contents of such print instructional 
        materials in specialized formats.''; and
            (3) in subsection (d), as redesignated by this section--
                    (A) in paragraph (2), by striking ``and'' after the 
                semicolon; and
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) `print instructional materials' has the meaning given 
        under section 674(e)(3)(C) of the Individuals with Disabilities 
        Education Act; and
            ``(4) `specialized formats' means--
                    ``(A) braille, audio, or digital text which is 
                exclusively for use by blind or other persons with 
                disabilities; and
                    ``(B) with respect to print instructional materials, 
                includes large print formats when such materials are

[[Page 118 STAT. 2808]]

                distributed exclusively for use by blind or other 
                persons with disabilities.''.

    Approved December 3, 2004.

LEGISLATIVE HISTORY--H.R. 1350 (S. 1248):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 108-77 (Comm. on Education and the Workforce) and 
108-779 (Comm. of Conference).
SENATE REPORTS: No. 108-185 accompanying S. 1248 (Comm. on Health, 
Education, Labor, and Pensions).
CONGRESSIONAL RECORD:
                                                        Vol. 149 (2003):
                                    Apr. 30, considered and passed 
                                        House.
                                                        Vol. 150 (2004):
                                    May 13, considered and passed 
                                        Senate, amended, in lieu of 
                                        S. 1248.
                                    Nov. 19, House and Senate agreed to 
                                        conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 40 (2004):
            Dec. 3, Presidential statement and remarks.

                                  <all>
```