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[House Report 108-779]
[From the U.S. Government Publishing Office]

108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-779
======================================================================

 
    INDIVIDUALS WITH DISABILITIES EDUCATION IMPROVEMENT ACT OF 2004

                                _______
                                

               November 17, 2004.--Ordered to be printed

                                _______
                                

 Mr. Boehner, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 1350]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
1350), an Act to reauthorize the Individuals with Disabilities 
Education Act, and for other purposes, having met, after full 
and free conference, have agreed to recommend and do recommend 
to their respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate to the text of the bill and agree to 
the same with an amendment as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

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. 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.

  ``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 
        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 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.
            ``(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.

``SEC. 602. 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 
                        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;
                    ``(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 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.
            ``(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.
            ``(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 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).

``SEC. 603. OFFICE OF SPECIAL EDUCATION PROGRAMS.

    ``(a) Establishment.--There shall be, within the Office of 
Special Education and Rehabilitative Services in the Department 
of Education, an Office of Special Education Programs, which 
shall be the principal agency in 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. 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. 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. 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. 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.
    ``(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) 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.

``SEC. 608. 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. 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 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. 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. 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--
                            ``(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.--
            ``(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:
                            ``(i) Preceding year allocation.--
                        No State's allocation shall be less 
                        than its allocation under this section 
                        for the preceding fiscal year.
                            ``(ii) Minimum.--No State's 
                        allocation shall be less than the 
                        greatest of--
                                    ``(I) the sum of--
                                            ``(aa) the amount 
                                        the State received 
                                        under this section for 
                                        fiscal year 1999; and
                                            ``(bb) \1/3\ of 1 
                                        percent of the amount 
                                        by which the amount 
                                        appropriated under 
                                        subsection (i) for the 
                                        fiscal year exceeds the 
                                        amount appropriated for 
                                        this section for fiscal 
                                        year 1999;
                                    ``(II) the sum of--
                                            ``(aa) the amount 
                                        the State received 
                                        under this section for 
                                        the preceding fiscal 
                                        year; and
                                            ``(bb) that amount 
                                        multiplied by the 
                                        percentage by which the 
                                        increase in the funds 
                                        appropriated for this 
                                        section from the 
                                        preceding fiscal year 
                                        exceeds 1.5 percent; or
                                    ``(III) the sum of--
                                            ``(aa) the amount 
                                        the State received 
                                        under this section for 
                                        the preceding fiscal 
                                        year; and
                                            ``(bb) that amount 
                                        multiplied by 90 
                                        percent of the 
                                        percentage increase in 
                                        the amount appropriated 
                                        for this section from 
                                        the preceding fiscal 
                                        year.
                            ``(iii) Maximum.--Notwithstanding 
                        clause (ii), no State's allocation 
                        under this paragraph shall exceed the 
                        sum of--
                                    ``(I) the amount the State 
                                received under this section for 
                                the preceding fiscal year; and
                                    ``(II) that amount 
                                multiplied by the sum of 1.5 
                                percent and the percentage 
                                increase in the amount 
                                appropriated under this section 
                                from the preceding fiscal year.
                    ``(C) Ratable reduction.--If the amount 
                available for allocations under this paragraph 
                is insufficient to pay those allocations in 
                full, those allocations shall be ratably 
                reduced, subject to subparagraph (B)(i).
            ``(4) Decrease in funds.--If the amount available 
        for allocations to States under paragraph (1) for a 
        fiscal year is less than the amount allocated to the 
        States under this section for the preceding fiscal 
        year, those allocations shall be calculated as follows:
                    ``(A) Amounts greater than fiscal year 1999 
                allocations.--If the amount available for 
                allocations is greater than the amount 
                allocated to the States for fiscal year 1999, 
                each State shall be allocated the sum of--
                            ``(i) the amount the State received 
                        under this section for fiscal year 
                        1999; and
                            ``(ii) an amount that bears the 
                        same relation to any remaining funds as 
                        the increase the State received under 
                        this section for the preceding fiscal 
                        year over fiscal year 1999 bears to the 
                        total of all such increases for all 
                        States.
                    ``(B) Amounts equal to or less than fiscal 
                year 1999 allocations.--
                            ``(i) In general.--If the amount 
                        available for allocations under this 
                        paragraph is equal to or less than the 
                        amount allocated to the States for 
                        fiscal year 1999, each State shall be 
                        allocated the amount the State received 
                        for fiscal year 1999.
                            ``(ii) Ratable reduction.--If the 
                        amount available for allocations under 
                        this paragraph is insufficient to make 
                        the allocations described in clause 
                        (i), those allocations shall be ratably 
                        reduced.
    ``(e) State-Level Activities.--
            ``(1) State administration.--
                    ``(A) In general.--For the purpose of 
                administering this part, including paragraph 
                (3), section 619, and the coordination of 
                activities under this part with, and providing 
                technical assistance to, other programs that 
                provide services to children with 
                disabilities--
                            ``(i) each State may reserve 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 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.
                            ``(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)--
                                    ``(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) 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;
                                    ``(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) 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 
                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.
            ``(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.--
                    ``(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;
                    ``(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 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 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. STATE ELIGIBILITY.

    ``(a) In General.--A State is eligible for assistance under 
this part for a fiscal year if the State submits a plan that 
provides assurances to the Secretary that the State has in 
effect policies and procedures to ensure that the State meets 
each of the following conditions:
            ``(1) Free appropriate public education.--
                    ``(A) In general.--A free appropriate 
                public education is available to all children 
                with disabilities residing in the State between 
                the ages of 3 and 21, inclusive, including 
                children with disabilities who have been 
                suspended or expelled from school.
                    ``(B) Limitation.--The obligation to make a 
                free appropriate public education available to 
                all children with disabilities does not apply 
                with respect to children--
                            ``(i) aged 3 through 5 and 18 
                        through 21 in a State to the extent 
                        that its application to those children 
                        would be inconsistent with State law or 
                        practice, or the order of any court, 
                        respecting the provision of public 
                        education to children in those age 
                        ranges; and
                            ``(ii) aged 18 through 21 to the 
                        extent that State law does not require 
                        that special education and related 
                        services under this part be provided to 
                        children with disabilities who, in the 
                        educational placement prior to their 
                        incarceration in an adult correctional 
                        facility--
                                    ``(I) were not actually 
                                identified as being a child 
                                with a disability under section 
                                602; 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.--
                            ``(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 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).
                                    ``(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 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.
                            ``(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
                                    ``(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.--
                    ``(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 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 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) 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.
                    ``(D) 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) 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 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.
                    ``(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 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--
                            ``(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) 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 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).
    ``(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 to 
        paragraph (3), an application submitted by a State in 
        accordance with this section shall remain in effect 
        until the State submits to the Secretary such 
        modifications as the State determines necessary. This 
        section shall apply to a modification to an application 
        to the same extent and in the same manner as this 
        section applies to the original plan.
            ``(3) Modifications required by the secretary.--If, 
        after the effective date of the Individuals with 
        Disabilities Education Improvement Act of 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) In general.--If the Secretary determines that 
        a State is eligible to receive a grant under this part, 
        the Secretary shall notify the State of that 
        determination.
            ``(2) Notice and hearing.--The Secretary shall not 
        make a final determination that a State is not eligible 
        to receive a grant under this part until after 
        providing the State--
                    ``(A) with reasonable notice; and
                    ``(B) with an opportunity for a hearing.
    ``(e) Assistance Under Other Federal Programs.--Nothing in 
this title permits a State to reduce medical and other 
assistance available, or to alter eligibility, under titles V 
and XIX of the Social Security Act with respect to the 
provision of a free appropriate public education for children 
with disabilities in the State.
    ``(f) By-Pass for Children in Private Schools.--
            ``(1) In general.--If, on the date of enactment of 
        the Education of the Handicapped Act Amendments of 
        1983, a State educational agency was prohibited by law 
        from providing for the equitable participation in 
        special programs of children with disabilities enrolled 
        in private elementary schools and secondary schools as 
        required by subsection (a)(10)(A), or if the Secretary 
        determines that a State educational agency, local 
        educational agency, or other entity has substantially 
        failed or is unwilling to provide for such equitable 
        participation, then the Secretary shall, 
        notwithstanding such provision of law, arrange for the 
        provision of services to such children through 
        arrangements 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) 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 
                evidence, and the Secretary may thereupon make 
                new or modified findings of fact and may modify 
                the Secretary's previous action, and shall file 
                in the court the record of the further 
                proceedings. Such new or modified findings of 
                fact shall likewise be conclusive if supported 
                by substantial evidence.
                    ``(D) Jurisdiction of court of appeals; 
                review by united states supreme court.--Upon 
                the filing of a petition under subparagraph 
                (B), the United States court of appeals shall 
                have jurisdiction to affirm the action of the 
                Secretary or to set it aside, in whole or in 
                part. The judgment of the court shall be 
                subject to review by the Supreme Court of the 
                United States upon certiorari or certification 
                as provided in section 1254 of title 28, United 
                States Code.

``SEC. 613. LOCAL EDUCATIONAL AGENCY ELIGIBILITY.

    ``(a) In General.--A local educational agency is eligible 
for assistance under this part for a fiscal year if such agency 
submits a plan that provides assurances to the State 
educational agency that the local educational agency meets each 
of the following conditions:
            ``(1) Consistency with state policies.--The local 
        educational agency, in providing for the education of 
        children with disabilities within its jurisdiction, has 
        in effect policies, procedures, and programs that are 
        consistent with the State policies and procedures 
        established under section 612.
            ``(2) Use of amounts.--
                    ``(A) In general.--Amounts provided to the 
                local educational agency under this part shall 
                be expended in accordance with the applicable 
                provisions of this part and--
                            ``(i) shall be used only to pay the 
                        excess costs of providing special 
                        education and related services to 
                        children with disabilities;
                            ``(ii) shall be used to supplement 
                        State, local, and other Federal funds 
                        and not to supplant such funds; and
                            ``(iii) shall not be used, except 
                        as provided in subparagraphs (B) and 
                        (C), to reduce the level of 
                        expenditures for the education of 
                        children with disabilities made by the 
                        local educational agency from local 
                        funds below the level of those 
                        expenditures for the preceding fiscal 
                        year.
                    ``(B) Exception.--Notwithstanding the 
                restriction in subparagraph (A)(iii), a local 
                educational agency may reduce the level of 
                expenditures where such reduction is 
                attributable to--
                            ``(i) the voluntary departure, by 
                        retirement or otherwise, or departure 
                        for just cause, of special education 
                        personnel;
                            ``(ii) a decrease in the enrollment 
                        of children with disabilities;
                            ``(iii) the termination of the 
                        obligation of the agency, consistent 
                        with this part, to provide a program of 
                        special education to a particular child 
                        with a disability that is an 
                        exceptionally costly program, as 
                        determined by the State educational 
                        agency, because the child--
                                    ``(I) has left the 
                                jurisdiction of the agency;
                                    ``(II) has reached the age 
                                at which the obligation of the 
                                agency to provide a free 
                                appropriate public education to 
                                the child has terminated; or
                                    ``(III) no longer needs 
                                such program of special 
                                education; or
                            ``(iv) the termination of costly 
                        expenditures for long-term purchases, 
                        such as the acquisition of equipment or 
                        the construction of school facilities.
                    ``(C) 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.
            ``(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
                            ``(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) 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 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 
                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
                    ``(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--
            ``(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 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. 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) 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.--
                                    ``(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 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
                            ``(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--
                    ``(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.
            ``(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--
                                            ``(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
                                    ``(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
                                    ``(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--
                            ``(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
                            ``(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.--
                    ``(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
                                            ``(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 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 achild with a disability and a local educational 
agency may agree to use alternative means of meeting participation, 
such as video conferences and conference calls.

``SEC. 615. PROCEDURAL SAFEGUARDS.

    ``(a) Establishment of Procedures.--Any State educational 
agency, State agency, or local educational agency that receives 
assistance under this part shall establish and maintain 
procedures in accordance with this section to ensure that 
children with disabilities and their parents are guaranteed 
procedural safeguards with respect to the provision of a free 
appropriate public education by such agencies.
    ``(b) Types of Procedures.--The procedures required by this 
section shall include the following:
            ``(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) 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 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.--
                            ``(i) Local educational agency 
                        response.--
                                    ``(I) 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) 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) Timing.--The party providing a 
                hearing officer notification under subparagraph 
                (A) shall provide the notification within 15 
                days of receiving the complaint.
                    ``(D) 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.--
            ``(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
                            ``(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) 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 
                        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) 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) 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) In general.--Not less than 5 business 
                days prior to a hearing conducted pursuant to 
                paragraph (1), each party shall disclose to all 
                other parties all evaluations completed by that 
                date, and recommendations based on the offering 
                party's evaluations, that the party intends to 
                use at the hearing.
                    ``(B) Failure to disclose.--A hearing 
                officer may bar any party that fails to comply 
                with subparagraph (A) from introducing the 
                relevant evaluation or recommendation at the 
                hearing without the consent of the other party.
            ``(3) Limitations on hearing.--
                    ``(A) Person conducting hearing.--A hearing 
                officer conducting a hearing pursuant to 
                paragraph (1)(A) shall, at a minimum--
                            ``(i) not be--
                                    ``(I) an employee of the 
                                State educational agency or the 
                                local educational agency 
                                involved in the education or 
                                care of the child; or
                                    ``(II) a person having a 
                                personal or professional 
                                interest that conflicts with 
                                the person's objectivity in the 
                                hearing;
                            ``(ii) possess 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 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.
                    ``(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--
                                    ``(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 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) 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 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, 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) 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 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 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) 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 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. 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.--
                    ``(A) 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) 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.--
            ``(1) 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) 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.
                    ``(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 
                        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) 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--
                            ``(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) 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. 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) 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 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, toimprove 
the capacity of States to meet the data collection requirements.

``SEC. 617. 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.
    ``(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) 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. 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.
            ``(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, 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. 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.
                    ``(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 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) 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 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.

            ``PART C--INFANTS AND TODDLERS WITH DISABILITIES

``SEC. 631. 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. 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;
                    ``(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
                    ``(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. GENERAL AUTHORITY.

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

``SEC. 634. ELIGIBILITY.

    ``In order to be eligible for a grant under section 633, a 
State shall provide assurances to the Secretary that the 
State--
            ``(1) has adopted a policy that appropriate early 
        intervention services are available to all infants and 
        toddlers with disabilities in the State and their 
        families, including Indian infants and toddlers with 
        disabilities and their families residing on a 
        reservation geographically located in the State, 
        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.

``SEC. 635. REQUIREMENTS FOR STATEWIDE SYSTEM.

    ``(a) In General.--A statewide system described in section 
633 shall include, at a minimum, the following components:
            ``(1) A 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 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.
            ``(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
                            ``(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 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. 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;
            ``(5) a statement of the natural environments in 
        which early intervention services will appropriately be 
        provided, including a justification of the extent, if 
        any, to which the services will not be provided in a 
        natural environment;
            ``(6) the projected dates for initiation of 
        services and the anticipated length, duration, and 
        frequency of the services;
            ``(7) the identification of the service coordinator 
        from the profession most immediately relevant to the 
        infant's or toddler's or family's needs (or who is 
        otherwise qualified to carry out all applicable 
        responsibilities under this part) who will be 
        responsible for the implementation of the plan and 
        coordination with other agencies and persons, including 
        transition services; and
            ``(8) the steps to be taken to support the 
        transition of the toddler with a disability to 
        preschool or other appropriate services.
    ``(e) Parental Consent.--The contents of the individualized 
family service plan shall be fully explained to the parents and 
informed written consent from the parents shall be obtained 
prior to the provision of early intervention services described 
in such plan. If the parents do not provide consent with 
respect to a particular early intervention service, then only 
the early intervention services to which consent is obtained 
shall be provided.

``SEC. 637. STATE APPLICATION AND ASSURANCES.

    ``(a) Application.--A State desiring to receive a grant 
under section 633 shall submit an application to the Secretary 
at such time and in such manner as the Secretary may reasonably 
require. The application shall contain--
            ``(1) a designation of the lead agency in the State 
        that will be responsible for the administration of 
        funds provided under section 633;
            ``(2) a 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;
            ``(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)--
            ``(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.
    ``(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. 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. 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 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 services currently being provided or, if applying 
for initial services, shall receive the services not in 
dispute.

``SEC. 640. 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
                    ``(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. 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.
                    ``(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
                    ``(D) prepare and submit an annual report 
                to the Governor and to the Secretary on the 
                status of early intervention programs for 
                infants and toddlers with disabilities and 
                their families operated within the State.
            ``(2) Authorized activity.--The council may advise 
        and assist the lead agency and the State educational 
        agency regarding the provision of appropriate services 
        for children from birth through age 5. The council may 
        advise appropriate agencies in the State with respect 
        to the integration of services for infants and toddlers 
        with disabilities and at-risk infants and toddlers and 
        their families, regardless of whether at-risk infants 
        and toddlers are eligible for early intervention 
        services in the State.
    ``(f) Conflict of Interest.--No member of the council shall 
cast a vote on any matter that 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. FEDERAL ADMINISTRATION.

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

``SEC. 643. ALLOCATION OF FUNDS.

    ``(a) Reservation of Funds for Outlying Areas.--
            ``(1) In general.--From the sums appropriated to 
        carry out this part for any fiscal year, the Secretary 
        may reserve 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 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.
            ``(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) 1st 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.
                    ``(B) 2d 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. 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. 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;
                    ``(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
                    ``(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. 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;
                    ``(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 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. 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
                    ``(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. 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;
            ``(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.
    ``(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. 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;
                    ``(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.
            ``(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.
            ``(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).
    ``(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. 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. 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. 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 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 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 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.
            ``(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.
                    ``(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 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 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.
    ``(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) 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 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 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. 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 
                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--
                    ``(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--
                    ``(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) 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. 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 
                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. 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 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. 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. 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).
    ``(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);
            ``(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) 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.
            ``(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. 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. 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 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. TECHNOLOGY DEVELOPMENT, DEMONSTRATION, AND UTILIZATION; 
                    MEDIA SERVICES; AND INSTRUCTIONAL MATERIALS.

    ``(a) Program Authorized.--
            ``(1) 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.
                    ``(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.
            ``(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
                    ``(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) 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.
            ``(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. 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. 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 entity to demonstrate how the 
        eligible entity will address the needs of children with 
        disabilities from minority backgrounds.
            ``(2) 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;
            ``(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 activitiespertaining to 
children aged 3 through 5, inclusive, unless the State is eligible to 
receive a grant under section 619(b).

``SEC. 682. 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;
                            ``(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:
                    ``(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. 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. 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 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. 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;
            ``(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
            ``(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).''.

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) 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) 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. TRANSITION.

    (a) Orderly Transition.--
            (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 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''.
    (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 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) (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) (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)''.
    (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) 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), by striking ``Individuals 
        With'' and inserting ``Individuals with''; and
            (3) 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 distributed exclusively for 
                use by blind or other persons with 
                disabilities.''.

      And the Senate agree to the same.

                From the Committee on Education and the 
                Workforce, of reconsideration of the House bill 
                and the Senate amendment, and modifications 
                committed to conference:
                                   John Boehner,
                                   Michael N. Castle,
                                   Vernon J. Ehlers,
                                   Ric Keller,
                                   Joe Wilson,
                                   George Miller,
                                   Lynn C. Woolsey,
                                   Major R. Owens,
                From the Committee on Energy and Commerce, for 
                consideration of sec. 101 and title V of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Joe Barton,
                                   Michael Bilirakis,
                                   John D. Dingell,
                From the Committee on the Judiciary, for 
                consideration of sec. 205 of the House bill, 
                and sec. 101 of the Senate amendment, and 
                modifications committed to conference:
                                   F. James Sensenbrenner, Jr.,
                                   Lamar Smith,
                                   John Conyers,
                                 Managers on the Part of the House.

                                   Judd Gregg,
                                   Bill Frist,
                                   Michael B. Enzi,
                                   Lamar Alexander,
                                   Christopher Bond,
                                   Mike DeWine,
                                   Pat Roberts,
                                   Jeff Sessions,
                                   John Ensign,
                                   Lindsey Graham,
                                   John Warner,
                                   Edward Kennedy,
                                   Christopher J. Dodd,
                                   Tom Harkin,
                                   Barbara A. Mikulski,
                                   Jeff Bingaman,
                                   Patty Murray,
                                   Jack Reed,
                                   John Edwards,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 1350), an Act to 
reauthorize the Individuals with Disabilities Education Act, 
and for other purposes, submit the following joint statement to 
the House and the Senate in explanation of the effect of the 
action agreed upon by managers and recommended in the 
accompanying conference report:

                            Recommendations

Enacting Clause, Short Title, and Organization
      (1) The House bill and Senate amendment have different 
titles and different organization systems.
HR
      (2) The House bill includes this technical language as 
part of its structure to keep section 604 as current law. The 
Senate amendment replaces the entire existing law.
HR/LC
Title I, Part A
      (3) There are no significant differences between the 
House bill and Senate amendment.
HR/LC
      (4) The House bill and Senate amendment have different 
sections and headings in Part A and Part D. In Part D the 
Senate amendment has a subpart IV that is not in the House 
bill.
LC
      (5) There are no significant differences between House 
(c)(1) and Senate (c)(1).
LC
      (6) The Senate amendment goes into greater detail on how 
the needs of special education students were not being met 
prior to PL 94-142.
HR
      (7) The House bill does not include the Senate findings 
on implementation or providing services.
HR
      (8) There are no significant differences between the 
House bill and Senate amendment.
LC
      (9) The House bill does not include these Senate 
findings.
HR
      (10) There are no significant differences between the 
House bill and Senate amendment.
LC
      (11) There are no significant differences between the 
House and Senate amendments.
LC
      (12) There are minor wording differences between the 
House bill and the Senate amendment regarding full 
participation of minority individuals.
SR
      (13) The House bill does not include this Senate finding.
HR
      (14) The House bill refers to ``system improvement 
activities'' while the Senate bill refers to ``systemic-change 
activities.''
SR
      (15) The Senate amendment, but not the House bill, 
includes a clarification that certain medical devices are not 
required to be provided under the Act.
HR
      (16) There are no significant differences between the 
House bill and Senate amendment.
LC
      (17) The Senate amendment, but not the House bill, adds 
this new definition.
HR
      (18) There are no differences between the House bill and 
Senate amendment.
LC
      (19) The Senate amendment, not the House bill, has 
greater detail in citing ESEA programs. There are also minor 
wording differences between the bills in describing the impact 
of State or local funds.
HR
      (20) The House bill and Senate amendment are largely 
similar except the House bill includes language designed to 
place a limitation on the extent of the services provided under 
the Act. The Senate amendment does not include this provision.
HR
      (21) The House bill applies the requirements for a highly 
qualified teacher in NCLB to special education teachers. The 
Senate amendment mirrors the NCLB definition of a highly 
qualified teacher, with these exceptions:
      1. Requires all special education teachers to be 
certified as special education teachers.
      2. Exempts teachers who only provide consultative 
services from demonstrating subject knowledge/competency.
      3. Requires middle/high school teachers, who primarily 
teach children with significant cognitive disabilities to 
demonstrate knowledge of elementary curriculum rather than high 
level competition in each of the subjects they teach.
HR with an amendment to read as follows:
            ``(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 such Act, 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 requirement 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 teacher who teaches 2 or more 
                core academic subjects exclusively to children 
                with disabilities, such term means that the 
                teacher may--
                            ``(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 additional 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.''

      Report language: ``The Conference Committee intends to 
clarify that, for the purposes of the Elementary and Secondary 
Education Act of 1965 and the Individuals with Disabilities 
Education Act, a special education teacher who provides only 
consultative services to a highly qualified teacher (as such 
term is defined in section 9101 (23) of the Elementary and 
Secondary Education Act of 1965) should be considered a highly 
qualified special education teacher if such teacher meets the 
requirements of section 602(10)(A) of this legislation. Such 
consultative services do not include instruction in core 
academic subjects, but may include adjustments to the learning 
environment, modifications of instructional methods, adaptation 
of curricula, the use of positive behavioral supports and 
interventions, or the use of appropriate accommodations to meet 
the needs of individual children.''
      Report language: ``Under the Elementary and Secondary 
Education Act of 1965, each state was charged with developing a 
`high, objective, uniform state standard of evaluation' 
(HOUSSE) to provide teachers with another avenue through which 
to demonstrate the subject mastery requirements of the `highly 
qualified' definition. Some states have developed HOUSSE 
standards for special education teachers. With the passage of 
this legislation, the Conference committee intends to clarify 
that under the Elementary and Secondary Education Act of 1965, 
states may allow special education teachers to utilize a HOUSSE 
which applies to all teachers or adapt a HOUSSE to accommodate 
special education teachers, including a HOUSSE that consists of 
a single evaluation to cover multiple subjects. Such 
adaptations or accommodations must not, however, establish a 
lesser standard for the content knowledge requirements of 
special education teachers compared to the standards for 
general education teachers. The Conference committee encourages 
all states to explore these options.''
      Report language: ``It is the conferees' intent that any 
new special education teacher teaching one core academic 
subject shall demonstrate competency by passing a rigorous 
State academic subject test in that subject, or successful 
completion in that subject of an academic major, a graduate 
degree, coursework equivalent to an undergraduate academic 
major, or advanced certification or credentialing. Any special 
education teacher who is not new to the profession and who 
teaches one core academic subject must, by the end of the 2005-
2006 school year, pass a rigorous State academic subject test 
in that subject, complete in that subject an academic major, a 
graduate degree, coursework equivalent to an undergraduate 
academic major, or advanced certification or credentialing, or 
complete a high objective uniform State standard of 
evaluation.''
      Report language: ``The bill requires special education 
teachers to have obtained full State certification as special 
education teachers, but it does not prevent general education 
and other teachers who are highly qualified in particular 
subjects from providing instruction in core academic subjects 
to children with disabilities in those subjects. For example, a 
reading specialist who is highly qualified in reading 
instruction, but who is not certified as a special education 
teacher, would not be prohibited by this provision from 
providing reading instruction to children with disabilities.''
      Report language: ``In special cases where such children 
also receive instruction in one or more core academic subjects 
at an instructional level above the basic elementary school 
curriculum, the Conferees fully intend for such instruction to 
be provided by a highly qualified teacher demonstrating a high 
level of competency in each of the core academic subjects 
taught. Such instruction could be provided by a highly 
qualified teacher in the general education classroom or by such 
teacher providing instruction in a self-contained classroom. 
Such competency shall be demonstrated consistent with the 
requirements of this section and with those of section 9101 of 
the Elementary and Secondary Education Act of 1965.''

      (22) There are no significant differences between the 
House bill and the Senate amendment.
LC
      (23) The Senate amendment, but not the House bill, adds 
this new definition.
HR
      (24) There are no significant differences between the 
House bill and the Senate amendment.
LC
      (25) There are no significant differences between the 
House bill and the Senate amendment. Both the House bill and 
the Senate amendment include this definition of outlying area.
LC
      (26) The Senate amendment, but not the House bill, 
includes extensive language regarding the different types of 
people that can be deemed a parent of a child with a 
disability.
SR with an amendment to read as follows:
            ``(22) Parent.--The term `parent' means--
                    ``(i) a natural, adoptive or foster parent 
                of a child (unless prohibited by State law);
                    ``(ii) a guardian (but not the State if the 
                child is a ward of the State);
                    ``(iii) 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
                    ``(iv) 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.''

      (27) The House bill and Senate amendment are largely 
similar except the Senate amendment includes an exception 
regarding certain medical devices and the Senate amendment 
includes interpreting services, school health services, and 
travel training instruction as listed related services. The 
Senate amendment, but not the House bill, includes an exception 
for medical devices that are surgically implemented or its 
replacement.
HR with an amendment:
      Strike ``school health services'' and insert ``school 
nurse services designed to enable the child to receive FAPE as 
described in the IEP'' and strike ``travel training 
instruction,''.

      Report language: ``The Conferees intend that `orientation 
and mobility services' include travel training instruction.''

      (28) There are no significant differences between the 
House bill and the Senate amendment.
LC
      (29) There are no differences between the House bill and 
the Senate amendment.
LC
      (30) There are no significant differences between the 
House bill and the Senate amendment.
LC
      (31) The House bill focuses on ``academic and 
developmental achievement'' and the Senate amendment focuses on 
``academic and functional achievement.''
HR
      (32) The Senate amendment, but not the House bill, 
includes these definitions for military children, homeless 
children, and wards of the State.
SR with an amendment to read as follows:
            ``(34) 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.
            ``(35) Ward of the state.--
                    ``(A) The term `ward of the State' means a 
                child who, as defined by the State where the 
                child resides, is a foster child, a ward of the 
                State or is in the custody of a public child 
                welfare agency; and
                    ``(B) Not withstanding subparagraph (A), 
                the term does not include a foster child who 
                has a foster parent covered by the definition 
                of ``parent'' in section 602 (22).''

      (33) There are no differences between the House bill and 
the Senate amendment.
LC
      (34) Neither the House bill nor Senate amendment make 
changes to current law.
HR
      (35) The House bill includes this technical language as 
part of its structure to keep section 604 as current law. The 
Senate amendment replaces the entire existing law.
LC
      (36) There are no differences between the House bill and 
the Senate amendment.
LC
      (37) The House bill, but not the Senate amendment, 
provides examples of jobs in which recipients of funds should 
try to employ people with disabilities.
HR
      (38) There are minor wording differences between the 
House bill and the Senate amendment.
HR
      (39) The House bill requires a public comment period of 
60 days while the Senate amendment limits the comment period to 
90 days.
SR with an amendment:
      Strike ``60'' and insert ``75''.

      (40) There are minor wording differences between the 
House bill and the Senate amendment, but the content is the 
same.
HR
      (41) The House and Senate have the same language, but the 
Senate amendment places this in (f) (see note 43).
HR
      (42) The House bill and Senate amendment are similar with 
minor wording differences, except that the Senate amendment and 
not the House bill includes a provision that any letters are 
provided as guidance and are not legally binding.
HR
      (43) The House and Senate have similar language, but the 
House bill places this in (e) (see note 41).
HR
      (44) The House bill includes this technical language as 
part of its structure to keep parts of current law. The Senate 
amendment replaces the entire existing law.
LC
      (45) The House bill and Senate amendment contain similar 
provisions regarding State support and facilitation of 
regulations. But the House bill, not the Senate amendment, 
requires States to minimize the number of regulations under the 
Act while the Senate amendment, not the House bill, requires 
States to identify in writing any rule, regulation, or policy 
that is generated by the State, not the Act or its regulations.
HR with an amendment:
        Insert paragraph (2) of House bill.

      (46) The Senate amendment allows up to 15 States to 
participate in a paperwork reduction pilot. The House bill 
allows the participation of up to 10 States in note 263.
HR
      (47) The House bill contains a request for GAO to report 
on the paperwork burden of the Act every 2 years, with an 
initial 2 year deadline.
HR
      (48) The House bill also includes requests for GAO to 
report on disability definitions in the States, distance 
learning for professional development programs, and the impact 
of the Act on limited English proficient students. The Senate 
amendment does not include these reports.
HR
      (49a) The Senate amendment, but not the House bill, 
specifies that the Freely Associated States shall continue to 
be eligible for competitive grants administered by the 
Secretary.
HR
Part B
      (49) The House bill includes this technical language as 
part of its structure to keep parts of current law. The Senate 
amendment replaces the entire existing law.
LC
      (50) There are no differences between the House bill and 
the Senate amendment.
LC
      (51) The House bill places a cap on the maximum grant 
that is based on the number of students in the State. The 
Senate amendment bases the formula for the maximum total cap on 
the number of children with disabilities in the 02-03 school 
year and adjusts the formula by the change in the population 
and poverty rates in the State.
SR with an amendment:
      Rewrite (a)(2) to read as follows:
            ``(2) Maximum amounts.--The maximum amount of the 
        grant a State may receive under this section for any 
        fiscal year is--
                    ``(A) for fiscal years 2005 and 2006 is--
                            ``(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 APPE in 
                        public elementary and secondary schools 
                        in the United States; and
                    ``(B) for fiscal year 2007 and subsequent 
                fiscal years--
                            ``(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 APPE in 
                        public elementary 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).''

      (52) The Senate amendment includes the Freely Associated 
States as eligible entities under this Act. The House bill does 
not.
HR
      (53) There are no differences between the House bill and 
Senate amendment.
LC
      (54) The Senate amendment allows funds to be allocated to 
the Freely Associated States and for studies and evaluations 
under Part B. The FAS's are not eligible entities under the 
House bill, and the House bill allocates funds for studies and 
evaluations in Part D.
HR with amendment:
      Insert:
                            ``(i) Technical assistance.--
                                    ``(A) 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.
                                    ``(B) Maximum amount.--The 
                                maximum amount the Secretary 
                                may reserve under (A) for any 
                                fiscal year is $25,000,000, 
                                increased by the cumulative 
                                rate of inflation since fiscal 
                                year 2004.''

      (55) The House bill and Senate amendment have different 
language to recalculate the 1999 base amount if a State that 
served 3-5 year olds in that year does not serve them in a 
subsequent year.
HR
      (56) There are minor technical differences between the 
House and Senate amendments, but the content is the same.
HR
      (57) There are minor technical and wording differences 
between the House and Senate amendments, but the content is the 
same.
HR
      (58) There are no differences between the House bill and 
Senate amendment.
HR/LC
      (59) There are minor technical and wording differences 
between the House and Senate amendments, but the content is the 
same.
HR/LC
      (60) The House bill limits the amount of funds for State-
level activities to 25% of its FY 97 State grant, adjusted by 
inflation or the percent increase of the Federal appropriation, 
and allows these funds to be used without regard to commingling 
or supplantation requirements. The Senate amendment allows 
States in FY 04 and 05 to reserve 10% off their State grant for 
State-level activities, after reserving funds for 
administration. After FY 05, this figure is then increased by 
the inflation rate. Small States are allowed to reserve 12% 
until FY 05, and then adjust that level by inflation (see note 
(62)). Both House and Senate allow commingling. See note (66).
HR
      (61) The House bill allows States to use up to 20% of its 
State set-aside for administration, or $750,000. The Senate 
amendment allows States to use their FY 03 level for 
administration, or $800,000, adjusted for inflation each year.
      The Senate amendment, but not the House bill, also 
requires States to certify that they meet the requirements of 
designating financial responsibilities for services.
SR with an amendment to read as follows:
            ``(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 part 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) 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) Part c.--Funds reserved under 
                subparagraph (A) may be used for the 
                administration of part C, if the State 
                educational agency is the lead agency for the 
                State under that part.
                    ``(D) Certification.--Prior to expenditure 
                of funds under this paragraph, the State shall 
                provide assurances to the Secretary that the 
                arrangements to establish responsibility for 
                services pursuant to section 612(a)(12(A) are 
                current.''

      (62) The Senate amendment allows States in FY 04 and 05 
to reserve 10% off their State grant for State-level 
activities, after reserving funds for administration. After FY 
05, this figure is then increased by the inflation rate. Small 
States are allowed to reserve 12% until FY 05, and then adjust 
that level by inflation. The House bill limits the amount of 
funds for State-level activities to 25% of its FY 97 State 
grant, adjusted by inflation or the percent increase of the 
Federal appropriation, and allows these funds to be used 
without regard to commingling or supplantation requirements. 
See note (66).
SR with an amendment to read as follows:
            ``(2) Other state-level activities.--
                    ``(A) State-level activities.--
                            ``(i) In general.--For the purpose 
                        of carrying out State-level activities, 
                        each State may reserve for each of the 
                        fiscal years 2005 and 2006 not more 
                        than 10 percent from the amount of the 
                        State's allocation under subsection (d) 
                        for fiscal year 2005 and 2006, 
                        respectively. For fiscal year 2007 and 
                        each subsequent fiscal year, the State 
                        may reserve the maximum amount the 
                        State was eligible to reserve under the 
                        preceding sentence for fiscal year 2006 
                        (adjusted by the cumulative rate of 
                        inflation since fiscal year 2006 as 
                        measured by the percentage increase, if 
                        any in the Consumer Price Index For All 
                        Urban Consumers, published by the 
                        Bureau of Labor Statistics of the 
                        Department of Labor.
                            ``(ii) Small state adjustment.--
                        Notwithstanding clause (i), in the case 
                        of a state for which the maximum amount 
                        reserved for State administration 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 fiscal year 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 
                        (adjusted by the cumulative rate of 
                        inflation since fiscal year 2006 as 
                        measured by the percentage increase, if 
                        any, in the Consumer Price Index For 
                        All Urban Consumers, published by the 
                        Bureau of Labor Statistics of the 
                        Department of Labor).''.

      (63) The Senate amendment establishes a list of required 
activities that States must support with their State-level 
funds to support. The House bill has no similar requirement.
SR with an amendment to read as follows:
                    ``(B) Required activities.--Funds reserved 
                under subparagraph (A) shall be used to carry 
                out the following activities:
                            ``(i) For monitoring, enforcement 
                        and complaint investigation.
                            ``(ii) To establish and implement 
                        the mediation, processes required by 
                        section 615(e)(1), including providing 
                        for the costs of mediators, support 
                        personnel.''

      (64) The Senate amendment establishes a list of 
authorized activities that States may conduct with State-level 
funds. The House bill includes Senate activities (i), (ii), 
(vii), and (viii) in note 67 and adds monitoring and complaint 
investigation, mediation and voluntary binding arbitration, 
support to meet State goals in 612(a)(15), prereferral 
services, and subgrants to LEAs designated as in need of 
improvement due to the scores of students with disabilities. 
Activities (iii)-(vi), (ix), and (x) in the Senate amendment 
are not included in the House bill.
SR with an amendment to read as follows:
                    ``(C) Authorized activities.--Funds 
                reserved under subparagraph (A) may be used to 
                carry out the following activities:
                            ``(i) For support and direct 
                        services, including technical 
                        assistance, personnel preparation, and 
                        professional development and training.
                            ``(ii) To support paperwork 
                        reduction activities, including 
                        expanding the use of technology in the 
                        IEP process.
                            ``(iii) To assist local educational 
                        agencies in providing positive 
                        behavioral interventions and supports 
                        and mental health services for children 
                        with disabilities.
                            ``(iv) To improve the use of 
                        technology in the classroom by children 
                        with disabilities to enhance learning.
                            ``(v) To support the use of 
                        technology, including universally 
                        designed technology and assistive 
                        technology devices, to maximize 
                        accessibility to the general curriculum 
                        for children with disabilities.
                            ``(vi) Development and 
                        implementation of transition programs, 
                        including coordination of services with 
                        agencies involved in supporting the 
                        transition of students with 
                        disabilities to post-secondary 
                        activities.
                            ``(vii) To assist local educational 
                        agencies in meeting personnel 
                        shortages.
                            ``(viii) To support capacity 
                        building activities and improve the 
                        delivery of services by local 
                        educational agencies to improve results 
                        for children with disabilities.
                            ``(ix) Alternative programming for 
                        children who have been expelled from 
                        school, and services for children in 
                        correctional facilities, children 
                        enrolled in State-operated or State-
                        supported schools, and children in 
                        charter schools.
                            ``(x) To support the development 
                        and provision of appropriate 
                        accommodations for children with 
                        disabilities, or the development and 
                        provision of alternate assessments that 
                        are valid and reliable for assessing 
                        the performance of children with 
                        disabilities, in accordance with 
                        sections 1111(b) and 6111 of the 
                        Elementary and Secondary Education Act 
                        of 1965.
                            ``(xi) To provide technical 
                        assistance to schools and local 
                        educational agencies, and direct 
                        services, including supplemental 
                        educational services, to students with 
                        disabilities, in schools or local 
                        educational agencies identified as 
                        being in need of improvement under 
                        section 1116 of the Elementary and 
                        Secondary Education Act of 1965 on the 
                        basis, in whole, of the assessment 
                        results of the disaggregated subgroup 
                        of students with disabilities, 
                        including providing professional 
                        development to special and regular 
                        education teachers, that teach students 
                        with disabilities, based on 
                        scientifically based research to 
                        improve educational instruction, in 
                        order to improve academic achievement 
                        to meet the goals in section 1111.''

      (65) The House bill allows States to reserve up to 40% of 
its state-level funds to establish a fund for high cost special 
education services. The Senate requires States to reserve 2% of 
their State grant (after reserving funds for administration) to 
establish a LEA risk pool and distribute those funds to LEAs. 
The Senate requires the State to pay 75% of the costs that 
exceed 4 times the national APPE for every student in each LEA 
that applies. This amount is ratably reduced if there are not 
sufficient funds. The Senate amendment requires LEA 
applications to ensure that the State funds do not supplant 
State medicaid payments for appropriate services. The Senate 
amendment also allows pre-existing State programs to override 
the required elements established in the Senate amendment.
HR with an amendment to read as follows:
            ``(3) Local educational agency risk pool.--
                    ``(A) In general.--For the purpose of 
                assisting local educational agencies (and 
                charter schools that are local educational 
                agencies, and consortia of local educational 
                agencies) in addressing the needs of high-need 
                children, each State shall reserve for each 
                fiscal year 10 percent from the amount of the 
                State's reservation for state-level activities 
                under paragraph (2)(A), to--
                            ``(i) establish a high-cost fund, 
                        but only during the initial fiscal year 
                        of the fund;
                            ``(ii) make disbursements from the 
                        high-cost fund to local educational 
                        agencies in accordance with this 
                        paragraph; and
                            ``(iii) support innovative and 
                        effective ways of cost-sharing by the 
                        State, by a local educational agency, 
                        or among a consortia of local 
                        educational agencies, as determined by 
                        the State in coordination with 
                        representatives from local educational 
                        agencies (including charter schools 
                        that are local educational agencies, 
                        and consortia of local educational 
                        agencies).
                    ``(B) Limitation on uses of funds.--
                            ``(i) The funds used pursuant to 
                        subparagraph (A)(i) to establish a 
                        high-cost fund shall not exceed five 
                        percent of the reservation in the 
                        initial fiscal year of the fund.
                            ``(ii) The funds used pursuant to 
                        subparagraph (A)(iii) to support the 
                        innovative and effective ways of cost-
                        sharing among a consortia of local 
                        educational agencies shall be not more 
                        than five percent of the reservation.
                    ``(C) State plan for high-cost fund.--
                            ``(i) The State educational agency 
                        shall establish a plan, including the 
                        State's definition of a `high need' 
                        child with a disability, which is 
                        developed in consultation with local 
                        educational agencies (including charter 
                        schools thatare local educational 
agencies, and consortia of local educational agencies) within 90 days 
of the reservation of funds under this subsection.
                            ``(ii) Such plan shall--
                                    ``(I) Establish, in 
                                coordination with 
                                representatives from local 
                                educational agencies (including 
                                charter schools that are local 
                                educational agencies, and 
                                consortia of local educational 
                                agencies), the definition of a 
                                `high need' child with a 
                                disability that, at a minimum--
                                            ``(aa) addresses 
                                        the financial impact 
                                        the specific `high 
                                        need' child with a 
                                        disability has on that 
                                        child's local 
                                        educational agency 
                                        budget, and
                                            ``(bb) ensures that 
                                        the cost of any such 
                                        `high need' child with 
                                        a disability is greater 
                                        than three times the 
                                        average per pupil 
                                        expenditure (as defined 
                                        in ESEA) in a local 
                                        educational agency 
                                        during the preceding 
                                        school year for an 
                                        elementary or secondary 
                                        school student, as may 
                                        be appropriate;
                                    ``(II) Establish 
                                eligibility criteria for the 
                                participation of local 
                                educational agencies (including 
                                charter schools that are local 
                                educational agencies, and 
                                consortia of local educational 
                                agencies) that, at a minimum, 
                                takes into account the number 
                                and percentage of `high need' 
                                children with disabilities in a 
                                local educational agency;
                                    ``(III) Develop a funding 
                                mechanism that provides 
                                distributions each fiscal year 
                                to eligible local educational 
                                agencies (including charter 
                                schools that are local 
                                educational agencies, and 
                                consortia of 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 fund 
                                each fiscal year.
                            ``(iii) The State shall make its 
                        final plan publicly available at least 
                        30 days prior to 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 fund 
                        established under subparagraph (A)(i) 
                        in accordance with the 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 plan under (C)(ii).
                            ``(iii) Appropriate costs.--The 
                        costs associated with educating a high 
                        need child under clause (ii) 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 such child 
                to ensure a free appropriate public education 
                for such child.
                    ``(F) Assurance of a free appropriate 
                public education.--Nothing in this section 
                shall be construed--
                            ``(i) to limit or condition the 
                        right of a child with a disability who 
                        is assisted under this part to receive 
                        a free appropriate public education 
                        pursuant to section 612(a)(1) in a 
                        least restrictive environment pursuant 
                        to section 612(a)(5); or
                            ``(ii) to authorize a State 
                        educational agency or local educational 
                        agency to establish a limit on what may 
                        be spent on the education of a child 
                        with a disability.
                    ``(G) Medicaid services not affected.--
                Disbursements provided under this subsection 
                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.
                    ``(H) Special rule for risk pool and high-
                need assistance programs in effect as of 
                january 1, 2004.--Notwithstanding the 
                provisions of subparagraphs (A) through (G), 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 students eligible 
                under this part based on eligibility criteria 
                for such programs that were created not later 
                than January 1, 2004 and are currently in 
                operation, provided such program meets the 
                minimum definition of a `high need' child with 
                a disability in subparagraph (C)(2)(I).
                    ``(I) Remaining funds.--Funds reserved 
                under subparagraph (A) in any fiscal year but 
                not expended in that fiscal year pursuant to 
                subparagraph (D) or subparagraph (F) shall be 
                allocated to local educational agencies in the 
                same manner as funds are allocated to local 
                educational agencies under subsection (f).''

      (66) The Senate amendment allows State-level funds to be 
used without regard to commingling or supplantation 
requirements. See note (60), which includes identical language 
from the House bill.
HR with an amendment:
      Strike ``, and (3)'' and insert ``and'' before (2) in 
paragraph (4).

      (67) The House bill establishes a list of authorized 
activities that States may conduct with State-level funds. The 
Senate amendment only includes House activities (A), (D), (F), 
and (H) in note 64 and adds positive behavioral supports and 
mental health services, use of technology, transition programs, 
alternative programming for expelled students, and support for 
appropriate accommodations and alternate assessments.
HR
      (68) The House bill, but not the Senate amendment, 
requires States to use any increase in State-level funds that 
exceeds the rate of inflation to be used to provide subgrants 
to LEAs designated as in need of improvement due to the scores 
of students with disabilities to improve results for students 
with disabilities in those LEAs.
HR
      (69) There are minor wording differences between the 
House and Senate amendments, and the House bill includes a 
requirement that the report include information on the 
percentage of funds distributed by formula to LEAs.
HR
      (70) The Senate amendment allows States to use State-
level funds under Part B and the 619 program to support a State 
policy to allow children to remain in Part C instead of moving 
to the 619 program until kindergarten. The House bill does not 
include this provision.
HR
      (71) There are minor wording differences between the 
House and Senate amendments, but the content is the same.
LC
      (72) There are minor wording differences between the 
House and Senate amendments. Note: the reference to subsection 
(e) in (2) of the House bill should be a reference to 
subsection (d).
LC
      (73) There are no differences between the House bill and 
Senate amendment.
LC
      (74) The House bill places a cap on the amount of funds 
for State-level activities to the FY 03 level, except that the 
amount may increase by the rate of inflation for the purpose of 
making subgrants to LEAs designated as in need of improvement 
due to the assessment scores of students with disabilities.
HR with an amendment:
      Add the following language to section 611(e) as paragraph 
(5):
            ``(5) Special rule for increased funds.--The State 
        may use funds it reserves as a result of inflationary 
        increases under section 611(e)(1)(B) to carry out 
        activities authorized by sections 611(e)(2)(C)(i), 
        (iii), (vii), and (viii).''
      (75) There are no differences between the House bill and 
Senate amendment.
LC
      (76) The House bill and the Senate amendment are the 
same, except the House bill includes a requirement that the BIA 
distribute 80% of its funds to BIA schools by July 1 of the 
fiscal year and 20% of the funds by September 30 of the fiscal 
year.
SR
      (77) There are minor wording differences between the 
House bill and Senate amendment, but the content is the same.
LC
      (78) There are no significant differences between the 
House and Senate amendments, except the House bill requires an 
annual report from the Secretary of the Interior while the 
Senate amendment requires a biennial report.
HR
      (79) There are minor wording differences between the 
House and Senate amendments but the content is the same.
LC
      (80) There are no significant differences between the 
House and Senate amendments, except for differences in section 
numbers between the two bills.
LC
      (81) There are no significant differences between the 
House and Senate amendments, except for differences in section 
numbers between the two bills.
LC
      (82) The House bill and Senate amendment establish 
slightly different patterns toward reaching the 40% goal.
HR
      (83) There are no differences between the House bill and 
Senate amendment.
LC
      (84) The House bill requires State plans to ``reasonably 
demonstrate'' that the plan meets the requirements of the law. 
The Senate amendment requires States to ``provide assurances'' 
that the plan meets the requirements of the law.
HR
      (85) The House bill includes this technical language as 
part of its structure to keep section 612(a)(12) as current 
law. The Senate amendment replaces the entire existing law.
LC
      (86) There are no differences between the House bill and 
Senate amendment.
LC
      (87) The Senate amendment exempts States from FAPE 
requirements if the State provides services to children through 
the part C program that are eligible for the 619 program. The 
House bill has similar language as part C.
HR
      (88) The Senate amendment, but not the House bill, 
includes language regarding children with disabilities who are 
homeless or are wards of the State.
HR
      (89) The House bill and Senate amendment have the same 
definition of least restrictive environment. The House bill 
requires that if a State distributes funds through a mechanism 
based on the child's setting, such formula cannot result in 
violations of the LRE requirements. The House bill also 
requires States to modify funding mechanisms that do not comply 
with that requirement. The Senate amendment prohibits a funding 
mechanism that violates the LRE requirements and requires 
States to revise any funding mechanism that violates that 
requirement.
HR
      Report language: ``The conferees are concerned that some 
States continue to use funding mechanisms that provide 
financial incentives for, and disincentives against, certain 
placements. It is the intent of the changes to Section 
612(a)(5)(B) to prevent State funding mechanisms from affecting 
appropriate placement decisions for students with disabilities.
      ``The law requires that each public agency shall ensure 
that a continuum of alternative placements (instruction in 
regular classes, special classes, special schools, home 
instruction, and instruction in hospitals and institutions) is 
available to meet the needs of children with disabilities for 
special education and related services. State funding 
mechanisms are in place to ensure funding is available to 
support the requirements of this provision, not to provide an 
incentive or disincentive for placement. Part B's LRE principle 
is intended to ensure that a child with a disability is served 
in a setting where the child can be educated successfully in 
the least restrictive environment. Through the Individual 
Education Plan (IEP) process the Team shall make placement 
decisions that are individually determined on the basis of each 
child's abilities and needs. The new provisions in this section 
were added to prohibit States from maintaining funding 
mechanisms that violate appropriate placement decisions, not to 
require States to change funding mechanisms that support 
appropriate placements decisions.''

      (90) The House bill and Senate amendment are 
substantially the same except the House bill, but not the 
Senate amendment, requires that children with disabilities also 
be evaluated in accordance with section 614(c).
SR
      (91) The House bill and Senate amendment are similar, 
with the Senate amendment adding a clause referring to the 
Senate language allowing a child to stay in the Part C program 
until kindergarten, instead of moving to the Section 619 
program at age 3.
HR
      (92) The House bill and Senate amendment include similar 
requirement, except the Senate amendment requires a written 
explanation by LEAs when they disagree with private school 
officials, a written affirmation from private school officials 
about consultation, and the provision of direct services (to 
the extent practicable) private schools. Also, the Senate 
amendment does not include the supplement, not supplant 
language included in the House bill. The House bill also 
contains specific sections regarding thorough child find when 
calculating the proportionate share of Federal funds and 
regarding services to be provided by employees of a public 
agency or through a contract by a public agency.
SR with an amendment to read as follows:
            ``(10) Children in private schools.--
                    ``(A) Children enrolled in private schools 
                by their parents.--
                            ``(i) In general.--To the extent 
                        consistent with the number and location 
                        of children with disabilities in the 
                        State who are enrolled by their parents 
                        in private elementary and secondary 
                        schools in the school district served 
                        by a local educational agency, 
                        provision is made for the participation 
                        of those children in the program 
                        assisted or carried out under this part 
                        by providing for such children special 
                        education and related services in 
                        accordance with the following 
                        requirements, unless the Secretary has 
                        arranged for services to those children 
                        under subsection (f):
                                    ``(I) Amounts to be 
                                expended for the provision of 
                                those services (including 
                                direct services to parentally-
                                placed children) by the local 
                                educational agency shall be 
                                equal to a proportionate amount 
                                of Federal funds made available 
                                under this part.
                                    ``(II) In calculating the 
                                proportionate share 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 
                                district.
                                    ``(III) Such services to 
                                children with disabilities 
                                parentally-placed may be 
                                provided to children with 
                                disabilities on the premises of 
                                private, including religious, 
                                schools, to the extent 
                                consistent with law.
                                    ``(IV) State and local 
                                funds may supplement and in no 
                                case shall supplant the 
                                proportionate amount of Federal 
                                funds required to be expended 
                                under this paragraph.
                                    ``(V) Each local 
                                educational agency shall 
                                maintain in its records and 
                                provide to the State 
                                educational agency the number 
                                of children evaluated under 
                                this paragraph, the number of 
                                children determined to be 
                                children with disabilities, and 
                                the number of children served 
                                under this subsection.
                            ``(ii) Child-find requirement.--
                                    ``(I) In general.--The 
                                requirements of paragraph (3) 
                                of this subsection (relating to 
                                child find) shall apply with 
                                respect to children with 
                                disabilities in the State who 
                                are enrolled in private, 
                                including religious, elementary 
                                and secondary schools.
                                    ``(II) Equitable 
                                participation.--The child-find 
                                process shall be designed to 
                                ensure the equitable 
                                participation of parentally-
                                placed private school children 
                                and an accurate count of such 
                                children.
                                    ``(III) Activities.--In 
                                carrying out this clause, the 
                                local educational agency, or 
                                where applicable, the State 
                                educational agency, shall 
                                undertake activities similar to 
                                those activities undertaken for 
                                its public school children.
                                    ``(IV) Cost.--The cost of 
                                carrying out this clause, 
                                including individual 
                                evaluations, may not be 
                                considered in determining 
                                whether a local educational 
                                agency has met its obligations 
                                under clause (i).
                                    ``(V) Completion period.--
                                Such child-find process shall 
                                be completed in a time period 
                                comparable to that for other 
                                students attending public 
                                schools in the local 
                                educational agency.
                            ``(iii) Consultation.--To ensure 
                        timely and meaningful consultation, a 
                        local educational agency, or where 
                        appropriate, a state educational 
                        agency, shall consult with 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 
                        these children including--
                                    ``(I) the child-find 
                                process and how parentally-
                                placed private school children 
                                suspected of having a 
                                disability can participate 
                                equitably, including how 
                                parents, teachers, and private 
                                school officials will be 
                                informed of the process;
                                    ``(II) the determination of 
                                the proportionate share of 
                                Federal funds available to 
                                serve parentally-placed private 
                                school children with 
                                disabilities under this 
                                paragraph, including the 
                                determination of how those 
                                funds were calculated;
                                    ``(III) the consultation 
                                process among the 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 children with 
                                disabilities identified through 
                                the child find process can 
                                meaningfully participate in 
                                special education and related 
                                services;
                                    ``(IV) how, where, and by 
                                whom special education and 
                                related services will be 
                                provided for parentally-placed 
                                private school children, 
                                including a discussion of 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 this section 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 forward the documentation of the 
                        consultation process to the State 
                        educational agency.
                            ``(v) Compliance.--
                                    ``(I) In general.--A 
                                private school official shall 
                                have the right to complain to 
                                the State educational agency 
                                that the local educational 
                                agency did not engage in 
                                consultation that was 
                                meaningful and timely, or did 
                                not give due consideration to 
                                the views of the private school 
                                official.
                                    ``(II) Procedure.--If the 
                                private school official wishes 
                                to complain, the official shall 
                                provide the basis of the 
                                noncompliance with this section 
                                by the local educational agency 
                                to the State educational 
                                agency, and the local 
                                educational agency shall 
                                forward the appropriate 
                                documentation to the State 
                                educational agency. If the 
                                private school official is 
                                dissatisfied with the decision 
                                of the State educational 
                                agency, such official may 
                                complain to the Secretary by 
                                providing the basis of the 
                                noncompliance with this section 
                                by the local educational agency 
                                to the Secretary, and the State 
                                educational agency shall 
                                forward the appropriate 
                                documentation to the Secretary.
                            ``(vi) Provision of equitable 
                        services.--
                                    ``(I) Directly or through 
                                contracts.--The provision of 
                                services under this Act shall 
                                be provided--
                                            ``(aa) by employees 
                                        of a public agency; or
                                            ``(bb) through 
                                        contract by the public 
                                        agency with an 
                                        individual, 
                                        association, agency, 
                                        organization, or other 
                                        entity.
                                    ``(II) Secular, neutral, 
                                nonideological.--Special 
                                education and related services 
                                provided to children with 
                                disabilities attending private 
                                schools, including materials 
                                and equipment, shall be 
                                secular, neutral, and 
                                nonideological.
                            ``(vii) Public control of funds.--
                        The control of funds used to provide 
                        special education and related services 
                        under this section, and title to 
                        materials, equipment, and property 
                        purchased with those funds, shall be in 
                        a public agency for the uses and 
                        purposes provided in this Act, and a 
                        public agency shall administer the 
                        funds and property.
                    ``(B) Children placed in, or referred to, 
                private schools by public agencies.--
                            ``(i) In general.--Children with 
                        disabilities in private schools and 
                        facilities are provided special 
                        education and related services, in 
                        accordance with an individualized 
                        education program, at no cost to their 
                        parents, if such children are placed 
                        in, or referred to, such schools or 
                        facilities by the State or appropriate 
                        local educational agency as the means 
                        of carrying out the requirements of 
                        this part or any other applicable law 
                        requiring the provision of special 
                        education and related services to all 
                        children with disabilities within such 
                        State.
                            ``(ii) Standards.--In all cases 
                        described in clause (i), the State 
                        educational agency shall determine 
                        whether such schools and facilities 
                        meet standards that apply to State and 
                        local educational agencies and that 
                        children so served have all the rights 
                        they would have if served by such 
                        agencies.
                    ``(C) Payment for education of children 
                enrolled in private schools without consent of 
                or referral by the public agency.--
                            ``(i) In general.--Subject to 
                        subparagraph (A), this part does not 
                        require a local educational agency to 
                        pay for the cost of education, 
                        including special education and related 
                        services, of a child with a disability 
                        at a private school or facility if that 
                        agency made a free appropriate public 
                        education available to the child and 
                        theparents elected to place the child 
in such private school or facility.
                            ``(ii) Reimbursement for private 
                        school placement.--If the parents of a 
                        child with a disability, who previously 
                        received special education and related 
                        services under the authority of a 
                        public agency, enroll the child in a 
                        private elementary or secondary school 
                        without the consent of or referral by 
                        the public agency, a court or a hearing 
                        officer may require the agency to 
                        reimburse the parents for the cost of 
                        that enrollment if the court or hearing 
                        officer finds that the agency had not 
                        made a free appropriate public 
                        education available to the child in a 
                        timely manner prior to that enrollment.
                            ``(iii) Limitation on 
                        reimbursement.--The cost of 
                        reimbursement described in clause (ii) 
                        may be reduced or denied--
                                    ``(I) if--
                                            ``(aa) at the most 
                                        recent IEP meeting that 
                                        the parents attended 
                                        prior to removal of the 
                                        child from the public 
                                        school, the parents did 
                                        not inform the IEP Team 
                                        that they were 
                                        rejecting the placement 
                                        proposed by the public 
                                        agency to provide a 
                                        free appropriate public 
                                        education to their 
                                        child, including 
                                        stating their concerns 
                                        and their intent to 
                                        enroll their child in a 
                                        private school at 
                                        public expense; or
                                            ``(bb) 10 business 
                                        days (including any 
                                        holidays that occur on 
                                        a business day) prior 
                                        to the removal of the 
                                        child from the public 
                                        school, the parents did 
                                        not give written notice 
                                        to the public agency of 
                                        the information 
                                        described in division 
                                        (aa);
                                    ``(II) if, prior to the 
                                parents' removal of the child 
                                from the public school, the 
                                public agency informed the 
                                parents, through the notice 
                                requirements described in 
                                section [615(b)(7)], of its 
                                intent to evaluate the child 
                                (including a statement of the 
                                purpose of the evaluation that 
                                was appropriate and 
                                reasonable), but the parents 
                                did not make the child 
                                available for such evaluation; 
                                or
                                    ``(III) upon a judicial 
                                finding of unreasonableness 
                                with respect to actions taken 
                                by the parents.
                            ``(iv) Exception.--Notwithstanding 
                        the notice requirement in clause 
                        (iii)(I), the cost of reimbursement--
                                    ``(I) shall not be reduced 
                                or denied for failure to 
                                provide such notice if--
                                            ``(aa) the school 
                                        prevented the parent 
                                        from providing such 
                                        notice; or
                                            ``(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.''

      (93) There are no differences between the House bill and 
Senate amendment.
SR with an amendment:
      Add an (11)(A)(iii):
                            ``(iii) in carrying out this part 
                        with respect to homeless children and 
                        youth, the requirements of subtitle B 
                        of the McKinney-Vento Homeless 
                        Assistance Act are met.''

      (94) The House bill did not make any changes to current 
law in this section. The Senate amendment includes minor 
technical changes to current law regarding authority to claim 
reimbursement, methods of determining responsibility, and 
updated section numbers.
HR
      (95) The House bill includes this technical language as 
part of its structure to keep section 612(a)(12) as current 
law. The Senate amendment replaces the entire existing law.
LC
      (96) There are no differences between the House bill and 
Senate amendment.
LC
      (97) The House bill requires the State plan to include 
standards to ensure that all special education teachers are 
highly qualified in core academic subjects; that standards for 
all related services personnel and paraprofessionals are set to 
ensure the providers are qualified to provide services, and 
that the SEA develops innovative strategies for professional 
development. The Senate amendment requires all special 
education teachers to be highly qualified by the end of the 
2006-2007 school year, requires States to inform parents about 
the qualifications of the teachers, requires States to adopt 
policies to recruit, train, and retain highly qualified 
personnel, and establishes that those requirements do not 
create a right to action.
HR with an amendment:
      Strike references to ``standards'' and replace with 
``qualifications'' throughout and strike ``not later than the 
end of the 2006-2007 school year.'' in (C)(i) and in (ii)(II).

      Report language: ``Conferees are cognizant of the 
difficulties that some local educational agencies have 
experienced in recruiting and retaining qualified related 
services providers and have provided greater flexibility to 
State educational agencies to establish appropriate personnel 
standards.
      ``Conferees are concerned that language in current law 
regarding the qualifications of related services providers has 
established an unreasonable standard for State educational 
agencies to meet, and as a result, has led to a shortage of the 
availability of related services for students with 
disabilities.
      ``Conferees intend for State educational agencies to 
establish rigorous qualifications for related services 
providers to ensure that students with disabilities receive the 
appropriate quality and quantity of care. State educational 
agencies are encouraged to consult withlocal educational 
agencies, other State agencies, the disability community, and 
professional organizations to determine the appropriate qualifications 
for related service providers, including the use of consultative, 
supervisory, and collaborative models to ensure that students with 
disabilities receive the services described in their individual 
IEP's.''

      (98) The House bill and Senate amendment are the same 
except the Senate amendment adds a requirement that States 
establish performance goals for graduation rates.
HR with an amendment:
      Insert ``which may include elements of the reports 
required under section 1111(h) of the Elementary and Secondary 
Education Act of 1965.'' at the end of subparagraph (C).

      (99) The House bill and Senate amendment include similar 
requirements except the Senate amendment adds requirements for 
alternate assessments, reporting requirements relating to 
students with disabilities taking alternate assessments, and 
requirements regarding universal design. Both the House bill 
and Senate amendment require that alternate assessments have 
been developed and conducted.
HR with an amendment:
      Strike ``accountability systems'' throughout.

      (100) The House bill requires States to develop voluntary 
binding arbitration system. The Senate amendment does not 
include this requirement.
HR
      (101) There are no significant differences between the 
House bill and Senate amendment.
HR/LC
      (102) There are no significant differences between the 
House bill and Senate amendment.
HR/LC with an amendment:
      Strike paragraph (20) and insert the following, and 
renumber subsequent paragraphs:

            ``(20) Rule of construction.--In complying with 
        paragraphs 612(a)(18) and (19), a state may not use 
        funds paid to it under this part to satisfy state-law 
        mandated funding obligations for local educational 
        agencies, including funding based on student attendance 
        or enrollment, or inflation.''

      (103) There are no significant differences between the 
House bill and Senate amendment.
HR/LC
      (104) The House bill requires the panel to be comprised 
of a majority of individuals with disabilities or parents of 
children with disabilities ages birth through 26. The Senate 
amendment requires the panel to be comprised of a majority of 
individuals with disabilities ages birth through 26 or parents 
of children with disabilities ages birth through 26.
      The Senate amendment, but not the House bill, adds 
requirements of the types of parents that must be on the panel.
      The Senate amendment, but not the House bill, adds 
additional parties that must be represented on the panel.
SR with an amendment:
      Strike clause (v) from the House bill and insert clause 
(v) from the Senate amendment. Insert ``(xi) a representative 
from the State child welfare agency responsible for foster 
care.''

      (105) The House bill, but not the Senate amendment, 
requires suspension and expulsion rates to be disaggregated by 
race and ethnicity.
SR
      (106) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (107) The House bill and Senate amendment include similar 
language requiring States to adopt the national instructional 
materials accessibility standard and requiring States to modify 
their contracts to obtain accessible materials.
      The House bill, but not the Senate amendment, has a 
definition of instructional materials.
      The Senate amendment, not the House bill, includes a 
requirement for the establishment of a national center for 
instructional materials.
HR with an amendment as follows:
      Strike ``675(a)'' and insert ``674(d)(3)(A)'' in 
subparagraph (A).
HR with an amendment as follows:
      Insert subparagraph (B) to read as follows, and 
redesignate the other paragraphs accordingly:

                    ``(B) Rights of state educational agency.--
                Nothing in this paragraph shall be construed to 
                require any State educational agency to 
                participate in the National Instructional 
                Materials Access Center. If a State educational 
                agency chooses not to participate, such agency 
                shall provide an assurance to the Secretary 
                that it will provide instructional materials to 
                blind persons or other persons with print 
                disabilities in a timely manner.''
HR with an amendment to strike the new (C) and insert the following:
                    ``(C) Preparation and delivery of files.--
                If a State educational agency chooses to 
                participate in 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--not sure we need since we have an 
                enactment clause?], such agency, as part of any 
                print instructional materials adoption process, 
                procurement contract, or other practice or 
                instrument used for purchase of print 
                instructional materials, enters into a written 
                contract with the publisher of the print 
                instructional materials to--
                            ``(i) prepare, and on or before 
                        delivery of the print instructional 
                        materials, provide to the National 
                        Instructional Materials Access Center, 
                        established pursuant to section 674(d), 
                        electronic files containing the 
                        contents of the print instructional 
                        materials using the Instructional 
                        Materials Accessibility Standard; or
                            ``(ii) purchase instructional 
                        materials from a publisher that are 
                        produced in or may be rendered in the 
                        specialized formats described in 
                        section 674(d)(3)(C).''

      (108) The House bill, but not the Senate amendment, 
requires States to adopt policies to prevent overidentification 
by race or ethnicity.
SR with an amendment:
      Insert ``(c)'' after ``618'' and strike ``the 
identification of children as''.

      (109) The House bill, but not the Senate amendment, 
requires States to adopt policies regarding psychotropic 
medication.
HR with an amendment to read as follows:
            ``(25) Prohibition on mandatory medication.
                    ``(a) In general.--The State educational 
                agency shall prohibit State and local 
                educational personnel from requiring a child to 
                obtain a prescription for substances covered by 
                the Controlled Substances Act as a condition of 
                attending school, receiving an evaluation under 
                section 614 (a) and (c) or receiving services.
                    ``(b) Rule of construction.--Nothing in 
                subsection (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 section 612(a)(3).''

      (110) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (111) There are no differences between the House bill and 
Senate amendment.
HR/LC
      (112) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (113) There are no significant differences between the 
House bill and Senate amendment.
LC
      (114) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (115) There are no differences between the House bill and 
Senate amendment.
LC
      (116) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
LC
      (117) There are no differences between the House bill and 
Senate amendment.
LC
      (118) The House bill makes no changes to current law in 
this section. The Senate amendment largely follows current law, 
except that the Senate amendment makes changes to require the 
Secretary to determine whether the State has failed or is 
unwilling to provide for the equitable participation of private 
school students.
HR
      (119) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
LC
      (120) The House bill requires the LEA to ``reasonably 
demonstrate'' that the LEA meets the conditions, while the 
Senate amendment requires the LEA to ``provide assurances'' 
that the LEA meets the conditions.
HR
      (121) There are no differences between the House bill and 
Senate amendment.
LC
      (122) The House bill allows LEAs to treat 20% of the 
increase from one year to the next as local funds to be used 
for educational programs authorized under ESEA, unless the SEA 
determines that the LEA has not provided FAPE to its students 
with disabilities. The Senate amendment allows LEAs to treat 8% 
of their funds as local funds each year. The Senate amendment 
allows LEAs to treat not more than 40% of their funds as local 
funds in any year that the maximum amount for State grants is 
provided under 611. The Senate amendment requires any LEA that 
exercises this authority to include that in its calculation of 
funds reserved for prereferral services.
SR with an amendment to read as follows:
                    ``(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).''

      Report language: ``The Conferees intend for school 
districts to have meaningful flexibility to use local funds 
that are generated from their reduction in the maintenance of 
effort. The Conferees do not intend that school districts have 
to use these local funds for programs exclusively authorized 
under the Elementary and Secondary Act of 1965. The conferees 
recognize that most state and local education programs are 
consistent with the broad flexibility that is provided in 
section 5131 of the Elementary and Secondary Education Act of 
1965.
      ``The Conferees intend that in any fiscal year in which 
the local educational agency or State educational agency 
reduces expenditures pursuant to section 613(a)(2)(C) or 
section 613(j), the reduced level of effort shall be considered 
the new base for purposes of determining the required level of 
fiscal effort for the succeeding year.''
      (123) The Senate amendment, but not the House bill, 
allows these Federal funds to be treated as local funds in 
calculating local shares under Medicaid.
      The Senate amendment also requires LEAs to report to SEAs 
on the amount of funds treated as local funds each year.
SR
      (124) The House bill and Senate amendment refer to 
different sections of ESEA regarding programs of personnel 
development.
HR
      (125) The House bill and Senate amendment include similar 
allowable uses of funds for LEAs, except the House bill also 
allows funds to be used for high cost reserve funds and 
supplemental services provided under ESEA.
HR with an amendment:
      Insert subparagraph (C) from House bill.
      (126) The House bill and Senate amendment are essentially 
the same.
HR with an amendment:
      Rewrite subparagraph (B) to read as follows:
                    ``(B) provides funds under this part to 
                those charter schools on the same basis as it 
                provides those funds to its other public 
                schools, including proportional distribution 
                based on relative enrollment of children with 
                disabilities, and at the same time as such 
                agency distributes other Federal funds to its 
                other schools, consistent with State's charter 
                school law.''

      (127) The House bill and Senate amendment include a 
similar requirement requiring LEAs to use the national 
instructional materials accessibility standard when purchasing 
instructional materials.
HR with an amendment to read as follows:
            ``(6) Instructional materials.--
                  ``(A) Purchase.--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 
                participate in the National Instructional 
                Materials Access Center, such agency, when 
                purchasing print instructional materials, 
                acquires these instructional materials in the 
                same manner as a State educational agency 
                described in section 612(a)(22).
                    ``(B) rights of local educational agency.--
                Nothing in this paragraph shall be construed to 
                require any local educational agency to 
                participate in the National Instructional 
                Materials Access Center. If a local educational 
                agency chooses not to participate, such agency 
                shall provide an assurance to the State 
                educational agency that it will provide 
                instructional materials to blind persons or 
                other persons with print disabilities in a 
                timely manner.''

      (128) There are no significant differences between the 
House and Senate amendments.
LC
      (129) There are no significant differences between the 
House bill and Senate amendment.
LC
      (130) There are no differences between the House bill and 
Senate amendment.
HR/LC
      (131) There are no differences between the House bill and 
Senate amendment.
LC
      (132) There are no differences between the House bill and 
Senate amendment.
LC
      (133) There are no differences between the House bill and 
Senate amendment.
LC
      (134) Using different names and different methods of 
identifying children as eligible for these activities, both the 
House bill and Senate amendment allow LEAs to use up to 15% of 
their funds to provide services to students before they are 
identified with a disability.
HR with an amendment:
      Strike ``who do not meet the definition of a child with a 
disability under section 602(3)'' and insert ``who have not 
been identified as needing special education or related 
services''.

      (135) The House bill and Senate amendment allow similar 
activities such as professional development evaluations, and 
behavioral supports. The Senate amendment also allows LEAs to 
use funds to develop and implement interagency financing 
structures.
HR with an amendment:
      Strike paragraph (C).

      (136) There are no differences between the House bill and 
Senate amendment.
LC
      (137) The House bill and Senate amendment require similar 
reporting requirements, with the House bill adding a 
requirement that LEAs report on children served for two years.
SR
      Report language: ``The Conferees want to ensure that 
information is provided on the impact that the early 
intervening services have on children to determine if these 
activities have reduced the numbers of referrals to special 
education. Local educational agencies are required to report on 
the number of students who are served under this activity for 
two years to determine if the provision of services under this 
activity reduces the number of overall referrals to special 
education and related services. The Conferees intend that the 
two-year period apply to the two years after the child has 
received services under this activity.''

      (138) The House bill and Senate amendment allow funds 
used in the section to be aligned with ESEA activities so long 
as the IDEA funds supplement, but not supplant, other Federal 
funds for those activities.
HR with an amendment:
      Strike ``Certain Projects Under'' from heading.

      (139) The House bill does not include this GAO study.
SR
      (140) There are no differences between the House bill and 
Senate amendment.
LC
      (141) There are no differences between the House bill and 
Senate amendment.
LC
      (142) The Senate amendment, but not the House bill, gives 
States that are the providers of special education or pay for 
80% or more of the non-federal share of special education 
costs, the same options that LEAs have to treat a certain 
portion of its IDEA funds if the State adheres to the 
requirements of the Act.
SR with an amendment to read as follows:
      ``(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 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.''

      (143) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR
      (144) The House bill and Senate amendment are similar, 
with the House bill adding parental consent in the heading.
SR
      (145) The House bill and Senate amendment have similar 
language regarding initial evaluations, with the Senate 
amendment requiring that such evaluations take place within 60 
days unless the State has an existing established time frame.
HR with an amendment to read as follows:
                    ``(C) Procedures.--
                            ``(i) In general.--Such initial 
                        evaluation shall consist of 
                        procedures--
                                    ``(I) to determine whether 
                                a child is a child with a 
                                disability (as defined in 
                                section 602(3)) within 60 days 
                                of receiving parental consent 
                                for the evaluation, or, if the 
                                State 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 subparagraph (i)(I) shall 
                        not apply to a local educational agency 
                        if--
                                    ``(I) a child enrolls at a 
                                local educational agency after 
                                the relevant timeframe in 
                                subparagraph (i)(I) has begun 
                                and prior to a determination by 
                                the child's previous local 
                                educational agency as to 
                                whether a child is a child with 
                                a disability (as defined in 
                                section 602(3)), provided that 
                                the local educational agency is 
                                making sufficient progress to 
                                ensure a prompt completion of 
                                the evaluation, and the parent 
                                and 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.''

      (146a) The House bill provides guidance to parents and 
LEAs if the parent refuses consent for evaluation or initial 
services. The Senate amendment provides that the LEA is not in 
violation of FAPE if the parent refuses services.
SR with an amendment to read as follows:
                            ``(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 
                                a child refuses to consent to 
                                the receipt of special 
                                education and related services, 
                                or the parent fails to respond 
                                to a request to provide the 
                                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 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 
                                        services for which the 
                                        local educational 
                                        agency requests such 
                                        consent.''

      (146b) The Senate amendment, but not the House bill, 
allows the school district to not seek parental consent for 
wards of the State if consent has been given by an appropriate 
official.
SR with an amendment to read as follows:
                            ``(iv) Exception for Wards of the 
                        State.--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 parents, as 
                        defined in section 602(22), of a child 
                        for an initial evaluation to determine 
                        whether the child is a child with a 
                        disability. In cases where--
                                    ``(I) despite reasonable 
                                efforts to do so, the agency 
                                cannot discover the whereabouts 
                                of the parents of such child;
                                    ``(II) the rights of the 
                                parents have been terminated in 
                                accordance with State law; or
                                    ``(III) the rights of the 
                                parents to make educational 
                                decisions have been subrogated 
                                by a judge in accordance with 
                                State law and consent has been 
                                given by an individual 
                                appointed by the judge to 
                                represent the child
                        the agency shall not be required to 
                        obtain informed consent from the 
                        parents of a child for an initial 
                        evaluation to determine whether the 
                        child is a child with a disability.''

      Report language: ``The conferees intend that in the case 
of children who are wards of the State, consent may be provided 
by individuals legally responsible for the child's welfare or 
appointed by the judge to protect the rights of the child.''

      (147) The House bill, but not the Senate amendment, 
provides that the screening of a child by a teacher or 
specialist shall not be considered an evaluation.
SR
      (148) The House bill and Senate amendment have similar 
language regarding reevaluations, except the Senate amendment 
also allows that related service need to factor in the need for 
evaluation.
HR
      (149) There are no differences between the House bill and 
Senate amendment.
HR
      (150) The House bill and Senate amendment have similar 
requirements regarding the assessments used for evaluations. 
The House bill requires multiple up-to-date measures, while the 
Senate amendment requires a variety of assessment tools and 
strategies.
      The Senate amendment also requires that the LEA not use 
any single procedure, measure or assessment as the sole 
criteria, while the House bill requires that the LEA not use 
any single measure or assessment.
HR with an amendment:
      Strike ``procedure'' in 2(B).

      (151) The House bill and Senate amendment have similar 
requirements with the House bill focusing on ``assessments'' 
and the Senate amendment focusing on ``tests''.
      The Senate amendment, but not the House bill, adds 
additional requirements for homeless children, wards of the 
State, and military children.
HR with an amendment:
      Strike ``tests'' and insert ``assessments'' throughout.
      Strike (D) and insert a new (D) to read as follows:
                    ``(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.''

      Report language: ``The Conferees recognize that the high 
mobility rates of some children, including homeless children 
and youth and children and youth in the custody of a state 
child welfare agency, may cause delays in the assessment 
process and in the provision of a free appropriate public 
education. In order to minimize such delays, the Conferees 
intend that local education agencies ensure that assessments 
for these children and youth be completed expeditiously, taking 
into consideration the date on which such children and youth 
were first referred for assessment in any local educational 
agency. Such assessments shall be made in collaboration with 
parents (including foster parents) and, where applicable, 
surrogate parents, homeless liaisons designated under Section 
723(g)(1)(j)(ii) of the McKinney-Vento Homeless Assistance Act, 
court appointed special advocates, a guardian ad litem, or a 
judge.''

      (152) The House bill and Senate amendment have similar 
language except the House bill adds the requirement that the 
evaluation team and the parents determine the educational needs 
of the child.
SR
      Report language: ``Conferees intend the evaluation 
process for determining eligibility of a child under this Act 
to be a comprehensive process that determines whether the child 
has a disability, and as a result of that disability, whether 
the child has a need for special education and related 
services. As part of the evaluation process, conferees expect 
the multi-disciplinary evaluation team to address the 
educational needs of the child in order to fully inform the 
decisions made by the IEP Team when developing the educational 
components of the child's IEP. Conferees expect the IEP Team to 
independently review any determinations made by the evaluation 
team, and that the IEP Team will utilize the information 
gathered during the evaluation to appropriately inform the 
development of the IEP for the child.''

      (153) The House bill and Senate amendment have the 
similar language except the House bill expands on the 
definition of reading by referring to the ESEA definition of 
scientifically based reading practices.
SR with an amendment:
      Strike (A) and insert a new (A) to read as follows:
                    ``(A) lack of appropriate instruction in 
                reading, including in the essential components 
                of reading as defined in Sec. 1208(3) of ESEA 
                of 1965.''

      (154) The Senate amendment, but not the House bill, 
requires that the determination of the diagnosis of specific 
learning disability falls under the evaluation procedures.
HR
      (156) The House bill specifies that classroom-based 
assessments should be local or State assessments and requires 
the evaluation to determine whether the child continues to have 
educational needs based on the child's academic achievement. 
The Senate amendment requires the reevaluation to determine the 
particular category of disability.
SR with an amendment:
      Insert comma before ``local'' in (c)(1)(A).

      (157) The House bill and Senate amendment have similar 
language, except for the difference in referring to assessments 
in the House bill and tests in the Senate amendment, and the 
inclusion of procedures in the Senate amendment.
SR
      (158) There are no differences between the House bill and 
Senate amendment.
LC
      (159) The House bill and Senate amendment have similar 
language, except for the House bill requiring the evaluation to 
determine the educational need of the child.
SR
      (160) The House bill requires a reevaluation prior to 
graduation and before determining the child no longer has a 
disability only if the IEP Team is not in agreement regarding 
that decision. The Senate amendment requires a reevaluation 
prior to determining the child no longer has a disability. The 
Senate amendment requires the LEA to provide a summary of the 
child's performance to a student that is graduating or 
exceeding the age eligibility under State law.
HR
      (161) The House bill and Senate amendment have similar 
language except the Senate amendment also requires functional 
performance to be part of the present levels of performance.
HR
      (162) The House bill establishes requirements for the 
inclusion of benchmarks or short-term objectives in the child's 
IEP for students taking alternate assessments aligned to 
alternate standards.
SR with an amendment:
      Strike (d)(1)(A)(I)(cc) and replace with new 
(d)(1)(A)(I)(cc) to read as follows: ``for children with 
disabilities who take alternate assessments aligned to 
alternate achievement standards, a description of benchmarks or 
short-term objectives.''

      (163) The House bill and Senate amendment include similar 
language regarding annual goals, with the Senate amendment also 
requiring that the IEP include quarterly reporting on progress 
towards those annual goals. The House bill includes a regular 
reporting requirement in (VII), see note 166.
HR
      (164) The House bill and Senate amendment have similar 
requirements, with the House bill including a requirement that 
related services be based on peer-reviewed research to the 
extent practicable.
SR
      (165) The House bill requires the IEP team to explain why 
the regular assessment is not appropriate and how the child 
will be assessed. The Senate amendment requires the IEP team to 
explain why the child cannot participate in the regular 
assessment and why the alternate assessment is appropriate.
HR
      (166) The House bill requires the IEP team to plan for 
transition at age 14 and implement a transition plan by age 16. 
The Senate amendment requires all transition planning and 
services to start at age 14.
HR with an amendment:
      Strike ``14'' and insert ``16''.

      (167) The House bill requires the IEP to report progress 
toward the annual goals in the same frequency as LEAs report 
progress on non-disabled students. Senate has similar 
requirement in earlier provision (see note 163).
HR
      (168) There are no significant differences between the 
House bill and Senate amendments.
HR
      (169) There are no differences between the House bill and 
Senate amendment.
LC
      (170) Both the House bill and Senate amendment require a 
regular education teacher to be on the IEP team, but the House 
bill, and not the Senate amendment, allows the regular 
education teacher flexibility in which parts of the meetings 
they attend. The House bill also allows one regular education 
teacher to serve as a representative if the child has multiple 
regular education teachers. See note 172 for similar Senate 
provision.
HR
      (171) The House bill refers to the general education 
curriculum while the Senate amendment refers to the general 
curriculum.
      The Senate amendment, but not the House bill, specifies 
that a child who is a ward of the State may have an appropriate 
official at the IEP Team meeting.
SR
      (172) The Senate amendment allows an IEP team member 
flexibility in which parts of the meetings they attend so long 
as the parent and LEA agree and so long as the excused member 
submits input prior to the IEP meeting. See note 170 and 177 
for similar House provision.
HR with an amendment:
      Insert ``to the IEP team'' after ``submits'' in 
(C)(ii)(II).
HR with an amendment:
      Strike ``that member,'' in (C)(i) and (C)(ii)(I), and the 
``,'' after ``parent'' in (C)(ii)(I), and insert ``in writing 
to the parent and IEP team'' after ``input'' in (C)(ii)(II).
HR with an amendment:
      Insert (D) to read as follows:
                    ``(D) IEP Team Transition.--In the case of 
                a child who was previously served under Part C, 
                an invitation to the initial IEP meeting to the 
                Part C service coordinator or other 
                representatives of the Part C system to assist 
                with the smooth transition of services.''

      Report language: ``The Conferees recognize that ensuring 
that a smooth transition from the Part C system to the 
Preschool Program or to school is vital for a child's 
educational success. It is the Conferees' intent that during 
the initial IEP meeting for a child transferring from the Part 
C program the types of services the child received as part of 
the IFSP are discussed. The Conferees understand that services 
provided through the Part B program may differ in frequency, 
duration, and environment, however, the IEP Team should explain 
the changes in services in the initial IEP meeting. The 
Conferees do not intend that a State or district reduce any 
service a child would be otherwise eligible for under Part B.''

      (173) The House bill, but not the Senate amendment, 
requires the IEP team to consider the IFSP when developing an 
IEP.
      The Senate amendment, but not the House bill, requires 
that IEPs transfer with a child from one district to another, 
or State to State.
SR with an amendment:
      Insert (C) to read as follows:
                    ``(C) Program for children who transfer 
                school districts.--
                            ``(i) In general.--
                                    ``(I) 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) 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 section 
                                614(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 34 CFR 99.31(a)(2), 
                                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.''

      (174) The House bill and Senate amendment have similar 
language, in different order, and the Senate amendment adds a 
requirement that the functional needs of the child are 
considered.
HR
      Report language: ``The Conferees understand that the 
development of a child's IEP involves many considerations and 
decisions on how best to create an education program that 
serves the needs of the individual child. The Conferees intend 
that the uniqueness of each child help guide these decisions, 
including the child's strengths, characteristics, and 
background when developing the IEP.''

      (175) The Senate amendment, but not the House bill, 
requires that IEPs provide behavioral interventions for 
children whose behavior impedes their own learning or that of 
others. The Senate amendment also requires the IEP team to 
consider a larger list of services for blind students.
SR
      (176) The House bill, but not the Senate amendment, 
allows for the possibility that the regular education teacher 
may not be part of the IEP team if appropriately determined.
HR
      (177) The House bill allows an IEP team member 
flexibility in which parts of the meetings they attend so long 
as the parent and LEA agree and so long as the excused member 
submits written input prior to the IEP meeting. See note 172 
for similar Senate provision.
HR
      (178) The House bill encourages consolidation of IEP 
meetings while the Senate amendment encourages consolidation of 
reevaluations with the IEP Team meeting.
HR with an amendment:
      Strike (E) and insert new (E) to read as follows:
                    ``(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.''

      (179) The House bill, but not the Senate amendment, 
specifies that changes to the IEP can be done by amendment, 
instead of rewriting the entire IEP.
SR with an amendment:
      Insert ``Upon request, a parent shall be provided an 
executed copy of the IEP.'' at the end of subparagraph (G).

      (180) The House bill, but not the Senate amendment, 
allows for the possibility that the regular education teacher 
may not be part of the IEP team if appropriately determined.
HR
      (181) Both the House bill and the Senate amendment allow 
the LEA to offer to parents the ability to develop a 
comprehensive 3-year IEP, if the parents choose to develop such 
an IEP. The House bill allows this to be done for all children 
that receive special education. The Senate amendment restricts 
this option to students age 18 that stay within the educational 
system.
SR with an amendment to read as follows:
            ``(5) Multi-year iep demonstration.--
                    ``(A) Pilot program.--
                            ``(i) Purpose.--The purpose of this 
                        subsection 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 
                        subsection, the Secretary is authorized 
                        to approve not more than 15 States 
                        based on proposals submitted by 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.
                            ``(iii) Proposal.--
                                    ``(I) In general.--A State 
                                desiring to participate in the 
                                program under this subsection 
                                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 parent must 
                                        consent to the option 
                                        of developing a 
                                        comprehensive multi-
                                        year IEP;
                                            ``(bb) 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
                                            ``(BB) measurable 
                                        annual goals for 
                                        determining progress 
                                        toward meeting the 
                                        goals described in 
                                        subitem (AA); and
                                            ``(cc) 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 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 local 
                                        educational agency will 
                                        ensure that the IEP 
                                        Team reviews the IEP 
                                        within 30 calendar 
                                        days; and
                                            ``(DD) at the 
                                        request of the parent, 
                                        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, the Secretary shall submit 
                an annual report to the Committee on Education 
                and the Workforce in the House of 
                Representatives and the Health, Education, 
                Labor and Pensions Committee in the Senate 
                regarding the effectiveness of the program 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.--As used in this 
                paragraph, the term `natural transition points' 
                means those periods that are close in time to 
                the transition of a child with a disability 
                from preschool to elementary grades, from 
                elementary grades to middle or junior high 
                school grades, from middle or junior high 
                school grades to high school grades, and from 
                high school grades to post-secondary 
                activities, but in no case longer than 3 
                years.''

      (182) There are no significant differences between the 
House bill and Senate amendment.
LC
      (183) The Senate amendment, but not the House bill, 
requires that placements of homeless children with disabilities 
comply with the McKinney-Vento Homeless Assistance Act.
      The House bill, but not the Senate amendment, allows for 
alternative means of meeting participation for meetings under 
section 615.
SR with an amendment:
      Strike ``and 615'' in (f) and insert ``, 615(e) and 
(f)(1)(B), and administrative matters under 615 (such as 
scheduling, exchange of witness lists and status 
conferences)''.

      (184) The House bill includes a Sense of Congress 
regarding the need to have a disability diagnosis performed by 
a physician or licensed health care professional. The Senate 
amendment does not include this provision.
HR
      (185) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR
      (186) The Senate amendment, but not the House bill, 
includes language regarding children who are wards of the 
State.
SR
      (187) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (188) The House bill and Senate amendment include similar 
language, except the House bill modifies the need for an 
independent evaluation to be done as appropriate.
HR
      (189) The Senate amendment, but not the House bill, 
includes language regarding homeless children and children who 
are wards of the State.
SR with an amendment:
      Rewrite (b)(2) to read as follows:
      ``(b)(2)(A) In General.--procedures to protect the rights 
of the child whenever the parents of the child are not known, 
the agency cannot, after reasonable efforts, locate the parents 
or the child is a ward of the State, including the assignment 
of an individual (who shall not be an employee of the State 
educational agency, the local educational agency or any other 
agency that is involved in the education or care of the child) 
to act as a surrogate for the parents. 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;
            ``(ii) an unaccompanied homeless youth as defined 
        in Sec 725(6) of the McKinney-Vento Homeless Assistance 
        Act, the LEA shall appoint a surrogate in accordance 
        with this paragraph.
      ``(B) Time requirement.--The State shall make reasonable 
efforts to ensure the assignment of the surrogate not more than 
30 days after there is a determination made by the agency that 
the child needs a surrogate.''

      Report language: ``In light of the fact that 
unaccompanied homeless youth are a particularly mobile 
population, once the school district has made a determination 
that such youth require a surrogate, the Conferees encourage 
States or local educational agencies where allowed by law to 
quickly appoint a surrogate or refer the child to the child 
welfare system if consistent with State law. The Conferees 
recognize that, because the parents of homeless unaccompanied 
youth may be unavailable or unwilling to participate in the 
youth's education, homeless unaccompanied youth face unique 
problems in obtaining a free appropriate public education. 
Accordingly, the Conferees intend that the surrogate parent 
process be available for such youth, to ensure that they are 
provided with a free appropriate public education. Furthermore, 
the Conferees intend that appropriate staff members of 
emergency shelters, transitional shelters, independent living 
programs, and street outreach programs not be considered to be 
employees of agencies involved in the education or care of 
youth, for purposes of the prohibition of certain agency 
employees from acting as surrogates for parents as set forth in 
Sec. (b)(2)(A), provided that a such role is temporary until a 
surrogate can be appointed that meets the requirements and such 
role in no way conflicts with, or is in derogation of, the 
provision of a free appropriate public education to these 
youth.''

      (190) There are minor wording differences between the 
House and Senate amendments, but the content is the same.
LC
      (191) There are no differences between the House bill and 
Senate amendment.
LC
      (192) The House bill adds a requirement for voluntary 
binding arbitration that the Senate amendment does not include.
HR
      (193) The House bill and Senate amendment have similar 
language regarding the opportunity to present complaints, but 
the House bill, not the Senate amendment, includes language 
establishing a 1 year statute of limitations on the right to 
present complaints. Senate has a 2 year timeline for filing 
complaints at note 221.
SR with an amendment to read as follows:
            ``(6) an opportunity to present complaints--
                    ``(A) with respect to any matter relating 
                to the identification, evaluation, or 
                educational placement of the child, or the 
                provision of a free appropriate public 
                education to such child; and
                    ``(B) which set forth an alleged violation 
                that occurred not more than two 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.''

      (194) The Senate amendment, but not the House bill, 
allows for either party to file a due process complaint.
      The House bill requires the complaint to have a 
description of the specific issues while the Senate amendment 
requires a description of the nature of the problem.
HR
      (195) The Senate amendment, but not the House bill, 
requires the LEA to send a prior written notice to a parent if 
the LEA has not already done so, after a parent has filed a due 
process complaint.
SR
      (196) The Senate amendment, but not the House bill, 
requires the SEA to develop model forms for the complaint 
notice.
HR
      (197) The Senate amendment, but not the House bill, 
includes procedures for children who are wards of the State.
SR
      (198) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (199) The Senate amendment, but not the House bill, 
requires the notice to include what options the agency 
considered but did not include, and why. The Senate amendment, 
but not the House bill, requires a description of any other 
factors relevant to the agency's proposal or refusal.
SR with an amendment:
      Insert (C) as amended by striking ``any other options 
that the agency considered'' and inserting ``other options 
considered by the IEP team'' and insert (E) as amended by 
striking ``any other'' and inserting ``the''.

      (200) The Senate amendment, but not the House bill, 
presumes that the complaint is sufficient unless a party 
submits an objection to the notice, establishes timelines and 
procedures to support this rule, and requires the other party 
to receive the notice.
      The Senate amendment, but not the House bill, also allows 
parents to amend their complaint if the hearing officer or 
other party consents, with timelines restarting at the time the 
amendment is filed.
HR with an amendment:
      Strike ``only'' and insert ``not later than 5 days'' in 
(2)(D)(i)(II).
HR with an amendment:
      Insert ``, including the timeline under subsection 
(f)(1)(B)'' after ``notice'' in (2)(D)(ii).
HR with an amendment:
      Strike ``20'' and insert ``15'' in paragraph (B).
HR with an amendment:
      Modify (2)(A) as follows:
            ``(2) Due process complaint notice.--
                    ``(A)(i) Parent 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 that 
                subsection.
                  ``(ii) Response.--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 send to the parent a response 
                that shall include--
                          ``(I) an explanation of why the 
                        agency proposed or refused to take the 
                        action raised in the complaint;
                          ``(II) a description of other options 
                        that the IEP team considered and the 
                        reasons why those options were 
                        rejected;
                          ``(III) a description of each 
                        evaluation procedure, test, record or 
                        report the agency used as the basis for 
                        the proposed or refused action; and
                          (IV) a description of the factors 
                        that are relevant to the agency's 
                        proposal or refusal.
                  ``(iii) Sufficiency.--A response filed by a 
                local educational agency pursuant to clause 
                (ii) shall not be construed to preclude such 
                local educational agency from asserting that 
                the parent's due process complaint notice was 
                insufficient, where appropriate.''

      (201) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (202) The Senate amendment, but not the House bill, 
requires a notice whenever a due process complaint is filed.
HR with an amendment:
      Rewrite (d)(1) to read as follows:
      ``(d) Procedural Safeguards Notice.--
            ``(1) In general.--
                    ``(A) 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 registration of a complaint under 
                        subsection (b)(6); and
                          (iii) upon request by a parent.
                    ``(B) The local educational agency may 
                place a current copy of the procedural 
                safeguards notice on its Internet website, if 
                such website exists.''

      (203) The House bill and Senate amendment contain similar 
language, except the House bill requires a description of the 
safeguards while the Senate amendment requires a full 
explanation.
HR
      (204) The Senate amendment, but not the House bill, 
requires the notice to include time period requirements and a 
description of the State-level appeal. The House bill does not 
include a State-level appeal system.
HR
      (205) The House bill, but not the Senate amendment, 
requires a description of the voluntary binding arbitration 
system. The Senate amendment does not include that option.
HR
      (206) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (207) The House bill, but not the Senate amendment, 
creates a Voluntary Binding Arbitration system in the title of 
this section.
HR
      (208) Senate amendment, but not House bill, specifies 
that a mediation agreement is enforceable in court.
HR with an amendment:
      Strike (F) and (G) and insert the following (F) and (G):
                    ``(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--
                            ``(I) states that all discussions 
                        that occur during the mediation process 
                        shall be confidential and may not be 
                        used as evidence in any subsequent due 
                        process hearings or civil proceedings;
                            ``(II) is signed by both the parent 
                        and a representative of the public 
                        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) Mediation discussions.--Discussions 
                that occur during the mediation process shall 
                be confidential and may not be used as evidence 
                in any subsequent due process hearings or civil 
                proceedings.''

      Report language: ``The conferees intend that the parties 
to the mediation process may be required to sign a 
confidentiality pledge prior to the commencement of such 
process to ensure that all discussions that occur during the 
mediation process remain confidential irrespective of whether 
the mediation results in a resolution.''

      (209) The House bill, but not the Senate amendment, 
requires States to develop a voluntary binding arbitration 
system for the resolution of disputes.
HR
      (210) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (211) The House bill does not provide for a State-level 
appeal system, so eliminates the dual-tier language. The Senate 
amendment maintains the State-level appeal.
HR
      (212) Both the House bill and Senate amendment require 
the LEA and parent of a child with a disability to meet within 
15 days of a parent's complaint being filed to attempt to 
resolve the complaint. The Senate amendment requires the 
meeting to include the IEP team and a person with decision 
making authority on behalf of the LEA. The House bill requires 
a meeting with the LEA and the parents. The House bill, but not 
the Senate amendment, operates within the regulatory 45 day 
timeline.
HR with an amendment:
      Strike ``Opportunity to Resolve Complaint'' and insert 
``Resolution Session'' in the heading.
HR with an amendment:
      Strike ``and the IEP Team'' and replace with ``and the 
relevant member or members of the IEP team with specific 
knowledge of the facts identified in the complaint'' in (B)(i).
HR with an amendment:
      Strike ``specific issues'' and insert ``facts'' in 
subparagraph (B)(i)(IV).
      Report language: ``The Committee intends that the 
relevant members be determined by the parents and LEA.''

      (216) The Senate amendment, but not the House bill, 
prevents the LEA from bringing an attorney to the preliminary 
meeting unless the parent brings their attorney. The House bill 
defines the resolution session as a non-administrative or 
judicial meeting, and the Senate amendment requires a written 
agreement to be signed by both parties if agreement is reached, 
and such agreement is to be enforceable in court.
HR with an amendment:
      Strike (iii) and insert the following (iii) and (iv):
                            ``(iii) Written settlement 
                        agreement.--In the case that a 
                        resolution is reached to resolve the 
                        complaint at such meeting, the parties 
                        shall execute a legally binding 
                        agreement that is--
                                    ``(I) signed by both the 
                                parent and a representative of 
                                the public 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), each party has the 
                        opportunity to void such agreement 
                        within 3 business days of its 
                        execution.''

      (217) The House bill and Senate amendment contain similar 
timeline requirements with the House bill requiring notice ``at 
least 5 business days prior'' and the Senate amendment 
requiring ``not less than 5 business days prior.''
HR
      (218) The House bill and Senate amendment include similar 
language regarding who cannot conduct a hearing. The Senate 
amendment, but not the House bill, adds additional requirements 
regarding the qualifications of hearing officers.
HR with an amendment:
      Rewrite (3)(A)(ii) to read as follows:
                            ``(ii) possess knowledge of, and 
                        the ability to understand, the 
                        provisions of this Act, Federal and 
                        State regulations pertaining to this 
                        Act, and legal interpretations of this 
                        Act by Federal and State courts;''

      (219) Both the House bill and Senate amendment include 
similar requirements about the subject matters that may be 
brought up during a hearing, but the Senate amendment, not the 
House bill, clarifies that either the parent or the LEA may 
request a due process hearing.
HR
      (220) The Senate amendment, but not the House bill, 
includes a rule of construction allowing parents to file 
separate due process hearings on separate issues.
HR
      Report language: ``The Conferees intend to encourage the 
consolidation of multiple issues into a single complaint where 
such issues are known at the time of the filing of the initial 
complaint.''

      (221) The Senate amendment establishes a 2-year statute 
of limitations unless State law already has a statute of 
limitations. The House bill includes a 1-year statute of 
limitations (see note 193).
HR/LC
      (222) The Senate amendment, but not the House bill, 
includes several exceptions to the requirements of a statue of 
limitations.
HR with an amendment to read as follows:
                    ``(E) Exception to the timeline.--The 
                timeline described in subparagraph (D) shall 
                not apply 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 parents that was required to be 
                        provided to parents under this part.''

      (223) The Senate amendment, but not the House bill, 
requires hearing officer decisions to be based on substantive 
grounds.
HR with an amendment:
      Strike ``compromised'' and insert ``impeded'' in 
(F)(ii)(I) and strike ``seriously hampered'' and insert 
``significantly impeded'' in (F)(ii)(II).

      (224) The Senate amendment, but not the House bill, 
allows procedural violations to rise to the level of a 
substantive violation under certain circumstances.
HR with an amendment:
      Strike ``compromised'' and insert ``impeded'' in 
(F)(ii)(I) and strike ``seriously hampered'' and insert 
``significantly impeded'' in (F)(ii)(II).

      (225) The Senate amendment, but not the House bill, 
allows for the existence of a State-level appeal system for due 
process hearings.
HR with an amendment:
      Strike (G) and insert the following:
                    ``(G) Rule of construction.--Nothing in 
                this section shall be construed to affect the 
                right of a parent to file a complaint with the 
                State educational agency, if such agency offers 
                and conducts such appeals.''
HR with an amendment:
      Insert ``if the State educational agency offers a state 
level appeals process'' at the end of the first sentence in 
(g).

      (226) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (227) The House bill, not the Senate amendment, allows 
for non-attorney advocates to represent parents at due process 
hearings. The Senate amendment, but not the House bill, allows 
for individuals with special knowledge to accompany and advise 
parents at due process hearings.
HR
      (228) The Senate amendment, but not the House bill, 
allows for a State-level appeal system, and requires the 
transmittal of records to the State advisory panel.
HR
      (229) The House bill includes technical changes to update 
language after removing the State-level appeal system. The 
Senate amendment replaces the entire existing law, but makes no 
changes in this section, except to add a 90 day limit for 
filing an appeal to court, unless State law provides for a 
different timeline.
HR
      (230) The House bill includes technical changes to update 
language after removing the State-level appeal system.
HR
      (231) The House bill requires the Governor to establish 
rates for attorney's fees and make those rates public. The 
Senate amendment places limitations on whether attorneys' fees 
can be awarded.
      The Senate amendment clarifies that meetings conducted 
under the opportunity to resolve provision are not eligible for 
reimbursement for attorney's fees.
HR
      (232) The Senate amendment clarifies that the parent's 
attorney's conduct may result in reduction of attorney's fees.
HR
      (233) The Senate amendment allows parents to represent 
their child in court.
SR
      (234) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (235) There are minor technical differences between the 
House bill and Senate amendment, but the content is the same.
LC
      (236) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
(237)-(245)
  HR with an amendment to read as follows:
      ``(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 section 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 (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) 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 parentand the local 
educational agency) shall review all relevant information in the 
student's file, including the 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 the 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; or
                            ``(ii) knowingly possesses or uses 
                        illegal drugs, or sells or solicits the 
                        sale of a controlled substance, while 
                        at school, on school premises, or 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, and 
                of all procedural safeguards accorded under 
                this section.
            (2) Determination of setting.--The interim 
        alternative educational setting in subparagraph (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) 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 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 refusedservices 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.''

      Report language: ``The Conferees intend to assure that 
the manifestation determination is done carefully and 
thoroughly with consideration of any rare or extraordinary 
circumstances presented. Additionally, it is the intention of 
the Conferees that when a student has violated a code of 
conduct school personnel may consider any unique circumstances 
on a case-by-case basis to determine to whether a change of 
placement for discipline purposes is appropriate. The Conferees 
intend that if a change in placement is proposed, the 
manifestation determination will analyze the child's behavior 
as demonstrated across settings and across time when 
determining whether the conduct in question is a direct result 
of the disability. The Conferees intend that in situations 
where the local educational agency, the parent and the relevant 
members of the IEP team determine that the conduct was the 
direct result of the child's disability, a child with a 
disability should not be subject to discipline in the same 
manner as a non-disabled child.
      ``The Conferees intend that in order to determine that 
the conduct in question was a manifestation of the child's 
disability, the local educational agency, the parent and the 
relevant members of the IEP team must determine the conduct in 
question be the direct result of the child's disability. It is 
intention of the Conferees that the conduct in question was 
caused by, or has a direct and substantial relationship to, the 
child's disability, and is not an attenuated association, such 
as low self-esteem, to the child's disability.''

      (246) There are no significant differences between the 
House bill and Senate amendment.
HR
      (247) The House bill does not include these definitions.
HR
      (248) The House bill includes this technical language as 
part of its structure. The Senate amendment adds language 
regarding the McKinney-Vento Act.
HR with an amendment:
      Strike ``or under subtitle B of title VII of the 
McKinney-Vento Homeless Assistance Act or parts B and E of 
title IV of the Social Security Act''.

      (249) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (250) There are no significant differences between the 
House bill and Senate amendment.
HR/LC
      (251) The Senate amendment allows parents to receive 
notices through email. The House bill does not include this 
provision.
HR
      (252) The Senate amendment, but not the House bill, 
includes language requiring the appointment of a surrogate 
parent if determined necessary by the LEA.
SR
      (253)-(258):
SR with an amendment to read as follows:

``SEC. 616. 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 its local educational agencies located in the 
        State (except the State exercise of general supervisory 
        responsibility), using quantifiable indicators, in 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 
                section 602(33) 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.--
                    ``(A) In general.--Not later than 1 year 
                after the date of the 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 Act 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) 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 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 Act 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 Act.
                    ``(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 
                                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.--
            ``(1) 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 the plan, except after giving the State 
        educational agency 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 to 
                        make the plan meet the requirements of 
                        this section.
            ``(4) Response.--If the State educational agency 
        responds to the Secretary's notification described in 
        paragraph (3)(B) during the 30-day period beginning on 
        the date on which the agency 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 educational 
        agency 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 agency 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.
                    ``(B) Notice and opportunity for a 
                hearing.--For any determinations made under 
                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)(ii) in implementing the 
        requirements of this Act, 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 partner 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)(iii) 
        in implementing the requirements of this Act, the 
        following shall apply:
                    ``(A) The Secretary may take any of the 
                actions in (1), and
                    ``(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 
                        Provisions Act, if the Secretary has 
                        reason to believe that the State cannot 
                        correct the problem within 1 year.
                            ``(iii) Each year of the 
                        determination withhold not less than 20 
                        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 
        Act 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) Withholding of 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 
        in the House of Representatives and the Committee on 
        Health, Education, Labor, and Pensions in 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 
                paragraphs (2) or (3), the Secretary may 
                determine--
                            ``(i) that such withholding will be 
                        limited to programs or projects, or 
                        portions thereof, that affected the 
                        Secretary's determination in (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 in subsection 
                        (d)(2).
                    ``(B) Withholding until rectified.--Until 
                the Secretary is satisfied that the conditions 
                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 toState agencies and 
local educational agencies whose actions did not cause or were not 
involved in the Secretary's determination in (d)(2), as the case may 
be.
            ``(7) Public attention.--Any State educational 
        agency 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) 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. 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) 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 plan, the State educational agency shall prohibit 
the local educational agency from reducing the local 
educational agency's maintenance of effort under this part as 
local funds under section 613(a)(2)(C) for any fiscal year.
      ``(g) Rule of Construction.--Nothing under 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 Act.''

      Report language: ``The Conferees believe that accurate 
decision making with regard to enforcement of the IDEA is 
required in order to: (1) ensure that federal dollars are being 
spent productively on education, and, (2) to ensure that 
monitoring and enforcement is administered fairly. It is our 
expectation that state performance plans, indicators, and 
targets will be developed with broad stakeholder input and 
public dissemination.
      ``The Secretary is directed to monitor states using 
rigorous targets and to request such information from states 
and stakeholders as is necessary to implement the purposes of 
IDEA, including the use of on-site monitoring visits and 
student file reviews, and to enforce the requirements of the 
IDEA.
      ``Conferees strongly encourage the Secretary to review 
all relevant and publicly available data, including the data 
gathered under Section 618, related to the targets and priority 
areas established for reviewing the efforts of States and local 
educational agencies to implement the requirements and purposes 
of IDEA. The Secretary is also authorized to use qualitative 
measures to inform his decision-making process in determining 
the efforts of the State or LEA in implementing IDEA.
      ``Conferees recommend that the Secretary diligently 
investigate any root causes prior to selecting enforcement 
options, so that enforcement options are appropriately selected 
and have the greatest likelihood in yielding improvement in 
that state. However, investigations must not unduly delay the 
enforcement action.''

      (259) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR
      (260) There are no differences between the House bill and 
Senate amendment.
HR
      (261) The House bill prohibits the Federal Government 
from dictating the content of curriculum or instruction. The 
Senate amendment does not include that provision.
SR
      (262) The Senate amendment, but not the House bill, 
includes authorization for the Secretary to hire personnel to 
carry out the Secretary's duties under section 664.
SR
      (263) The House bill allows the Secretary to grant 
waivers to 10 States to reduce paperwork. The Senate amendment 
includes this provision in note 46.
HR
      (264) The Senate amendment requires the development of a 
model IFSP form, the House bill does not include that 
provision.
HR
      (265) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR
      (266) The House bill and Senate amendment contain similar 
requirements regarding data collection, except the House bill, 
and not the Senate amendment requires LEAs to submit the same 
data as States, and requires data on voluntary binding 
arbitration and children served with early intervening funds 
under 613(f). The Senate amendment, but not the House bill, 
requires disaggregation by gender, and by LEP status and gender 
on several indicators, data collection on students suspended 
for one day or more, the numbers of students sent to alternate 
settings due to discipline violations, the number of due 
process complaints and hearings held, and other data regarding 
discipline provisions.
HR with an amendment:
      Strike (L).

      (267) The House bill allows the Secretary to obtain 
information through sampling. The Senate amendment requires 
that the data not be able to identify individual children.
HR with an amendment:
      Include both.

      (268) The Senate amendment allows the Secretary to 
provide technical assistance to States to collect data. The 
House bill does not include this provision.
HR
      (269) The House bill and Senate amendment contain similar 
language, except the House bill requires data to be examined on 
ethnicity as well.
      The House bill also requires States to use funds for 
prereferral services to address disproportionality if any is 
found and requires the LEA to publicly report on any revisions.
SR with an amendment:
      Strike ``preferral'' and insert ``early intervening'' in 
(2)(B).

      Report language: ``The Conferees believe that early 
intervening services should make use of supplemental 
instructional materials, where appropriate, to support student 
learning. Children targeted for early intervening services 
under IDEA are the very students who are most likely to need 
additional reinforcement to the core curriculum used in the 
regular classroom. These are in fact the additional 
instructional materials that have been developed to supplement 
and therefore strengthen the efficacy of comprehensive core 
curriculum. Per the requirements of NCLB, core curriculum must 
meet standards of scientific rigor. As supplementary materials 
to these core programs, they are aligned with and designed to 
reinforce the skills taught in these comprehensive research-
based texts.''

      (270) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (271) There are no differences between the House bill and 
Senate amendment.
LC
      (272) There are no significant differences between the 
House bill and Senate amendment.
LC
      (273) There are no significant differences between the 
House bill and Senate amendment.
LC
      (274) There are no differences between the House bill and 
Senate amendment.
SR with an amendment:
      Strike ``, if the State educational agency is the lead 
agency for the State under that part'' in (e)(2).

      (275) The House bill, but not the Senate amendment, 
allows funds to support the implementation of a State plan 
under Part D if the State receives a grant. The Senate 
amendment, but not the House bill, allows funds to be used to 
provide services to children with disabilities under the Part C 
program until the child attends kindergarten.
HR with an amendment:
      LC on ``it retains'' versus ``the State reserves''.
HR with an amendment:
      Insert new paragraph (6) to read as follows:
            ``(6) at the State's discretion, to continue 
        service coordination or case management for families 
        who receive services under part C.''

      (276) There are no significant differences between the 
House bill and Senate amendment.
LC
      (277) There are no differences between the House bill and 
Senate amendment.
LC
      (278) The House bill authorizes $500 million for FY 04 
and such sums thereafter, while the Senate amendment authorizes 
such sums.
HR
Part C
      (279) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR
      (280) The House bill and Senate amendment have virtually 
the same findings, but the Senate amendments contains 
additional language on brain development.
HR
      (281) There are no significant differences between the 
House and Senate amendments.
LC
      (282) There are no differences between the House bill and 
Senate amendment.
LC
      (283) The House bill requires services to be designed to 
address family-identified priorities, while the Senate 
amendment requires services to be designed to meet the 
developmental needs of the infant or toddler.
HR with an amendment to read as follows:
                    ``(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:''.

      (284) The House bill and Senate amendment include minor 
differences in the services provided with the House bill adding 
family therapy and the Senate amendment adding sign language 
and cued language services.
HR
      Report language: ``Conferees commend the Office of 
Special Education & Rehabilitative Services for developing 
updated early intervention materials that set out the full 
range of options for families with deaf and hard of hearing 
children who now have the potential to develop age appropriate 
language in whatever modality their parents choose. Dramatic 
improvements in hearing technology, both hearing aids and 
cochlear implants, provide new opportunities for families who 
wish to pursue spoken language for their child with hearing 
loss. These new materials and efforts further the goals of the 
IDEA that early intervention personnel actively provide 
comprehensive and bias-free information on the range of 
language options available to a child with hearing loss, 
including the benefits of early amplification and/or early 
implantation of a cochlear implant.''

      (285) The House bill and Senate amendment include minor 
differences in the personnel authorized to provide services 
with the House bill authorizing registered dietitians and the 
Senate amendment authorizing nutritionists. The Senate 
amendment also adds teachers of the deaf as a listed provider 
while the House bill does not.
SR
      Report Language: ``The conferees intend that the term 
`special educators' includes teachers of the deaf. The 
conferees recognize that with the recent dramatic rise in 
newborn hearing screening, more infants are being identified 
with hearing loss early and they need the services of teachers 
of the deaf who can meet their language and communication 
needs.''

      (286) The House bill allows the State to use the Part C 
program to provide services to infants and toddlers up through 
age 5 if the services include an educational component and 
parents are advised of their rights to choose to move to the 
Section 619 program. The Senate amendment contains a similar 
program for children ages 3-5. See Section 635(b) of the Senate 
amendment.
HR with an amendment:
      HR on structure of (5)(B) with an amendment to (5)(B)(ii) 
to read as follows:
                            ``(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; 
                        provided that any programs under this 
                        part serving these 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.''

      (287) The Senate amendment, but not the House bill, 
includes language regarding homeless children, wards of the 
State, and military children.
SR with an amendment:
      Insert ``, infants or toddlers with disabilities who are 
homeless children, infants or toddlers with disabilities who 
are wards of the State,'' after ``including Indian infants and 
toddlers with disabilities and their families residing on a 
reservation geographically located in the State,''.

      (288) The Senate amendment establishes minimum levels of 
developmental delay that States must cover. The House bill does 
not include this language.
SR with an amendment:
      Amend section 635(a)(1) to read ``A rigorous definition 
of the term developmental delay that will be used for the state 
in carrying out programs under this part in order to 
appropriately identify infants and toddlers that are in need of 
services under this part''.

      Report language: ``The Conferees intend that States 
establish rigorous standards for identifying and serving 
infants and toddlers with developmental delays. The Conferees 
believe that these standards should encompass a sufficient 
scope of developmental delays to ensure that these infants and 
toddlers receive the benefit of Part C services designed to 
lessen the infant or toddler's need for future or more 
extensive services.''

      (289) The House bill, but not the Senate amendment, 
requires that early intervention services be based on 
scientifically based research.
SR with an amendment:
      Rewrite (2) to read as follows:
            ``(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 and homeless infants and toddlers with 
        disabilities and their families.''
SR with an amendment:
      Add at the end of (5) ``and that ensures rigorous 
standards for appropriately identifying infants and toddlers 
for services under this part that will reduce the need for 
future services''

      (290) The House bill, but not the Senate amendment, 
requires an emphasis on informing parents of infants with risk 
factors on the availability of early intervention services.
      The Senate amendment, but not the House bill, expands the 
list of places the public awareness program should focus on 
delivering information.
SR
      Report Language: ``The Conferees intend that the public 
awareness program include a broad range of referral sources 
such as homeless family shelters, clinics and other health 
service related offices, public schools and officials and staff 
in the child welfare system.''

      (291) There are no differences between the House bill and 
Senate amendment.
LC
      (292) The House bill requires States to focus on three 
areas of personnel and allows States to focus on rural and 
inner city areas and emotional and social development areas. 
The Senate amendment permits States to focus on these areas and 
rural/urban areas.
SR
      (293) The Senate amendment, but not the House bill, 
includes a provision allowing States to allow paraprofessionals 
to provide services in accordance with State law, regulation, 
or written policy.
HR
      (294) There are no differences between the House bill and 
Senate amendment.
LC
      (295a) The House bill requires that services be provided 
in a setting other than the natural environment only when 
intervention cannot be achieved satisfactorily in that setting. 
The Senate amendment requires that services be provided in the 
natural setting unless a specific outcome cannot be met.
SR with an amendment to read as follows:
                    ``(B) the provision of early intervention 
                services for any infant or toddler 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.''

      Report language: ``The legislation amends current law to 
recognize that there may be instances when a child's 
individualized family service plan cannot be implemented 
satisfactorily in the natural environment. The Conferees intend 
that in these instances, the child's parents and the other 
members of the individualized family service plan team will 
together make this determination and then identify the most 
appropriate setting in which early intervention services can be 
provided.''

      (295b) The Senate amendment, but not the House bill, 
requires procedures for homeless children and wards of the 
State.
SR
      (296) The Senate amendment does not include this 
requirement.
SR with an amendment to strike ``consistent with State law within 3 
        years.''
      (297) Both the House bill and the Senate amendment allow 
States to continue to provide services to children aged 3-5 in 
the Part C program, if the parent chooses to keep their child 
in that system. The Senate amendment consolidates its language 
in this section. The House bill incorporates language in 
multiple areas.
HR with an amendment to read as follows:
      ``(b) 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 pre-
        literacy, 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--
                    ``(A) that parents of children served 
                pursuant to this subsection are provided with 
                annual notice that provides--
                            ``(i) a description of such 
                        parents' right to elect services 
                        pursuant to this subsection or under 
                        part B; and
                            ``(ii) an explanation of the 
                        differences between receiving services 
                        pursuant to this subsection and 
                        receiving services under part B, 
                        including--
                                    ``(I) the types and 
                                location of services available 
                                under both provisions;
                                    ``(II) applicable 
                                procedural safeguards under 
                                both provisions; and
                                    ``(III) the possible costs, 
                                if any (including any fees to 
                                be charged to families as 
                                described in section 632(4)(B)) 
                                to parents under both 
                                provisions;
                    ``(B) that services provided pursuant to 
                this subsection include an educational 
                component that promotes school readiness and 
                incorporates preliteracy, language, and 
                numeracy skills;
                    ``(C) that 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) the continuance of all early 
                intervention services outlined in the child's 
                individualized family service plan under 
                section 636 while any eligibility determination 
                is being made for services under this 
                subsection;
                    ``(E) that parents of infants or toddlers 
                with disabilities (as defined in section 
                632(5)(A)) provide informed written consent to 
                the State, before such infants and toddlers 
                reach 3 years of age, as to whether such 
                parents intend to choose the continuation of 
                early intervention services pursuant to the 
                subsection for such infants or toddlers; and
                    ``(F) that the requirements under section 
                637(a)(9) are deferred if the child is 
                receiving services in accordance with this 
                subsection until not less than 90 days (and at 
                the discretion of the parties to the conference 
                under section 637(a)(9)(A), not more than 9 
                months) before, the time the child will no 
                longer receive services under this subsection.
                    ``(G) the 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 309(1) of the Family Violence and 
                Protection 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; and
            ``(4) Rules of construction.--
                    ``(A) If a statewide system includes a 
                State policy described in paragraph (1), a 
                State that provides services in accordance with 
                this subsection to a child who is eligible for 
                services under section 619, shall not be 
                required to provide such child with a free 
                appropriate public education under part B for 
                the length of time in which such children are 
                receiving services under this part.
                    ``(B) 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.
            ``(5) 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).''

      (298) The Senate amendment, but not the House bill, 
includes this rule of construction regarding payment for 
certain procedures.
SR
      (299) There are no differences between the House bill and 
Senate amendment.
HR
      (300) There are no differences between the House bill and 
Senate amendment.
LC
      (301) There are no significant differences between the 
House bill and Senate amendment, except the House bill refers 
to major goals while the Senate amendment refers to measurable 
outcomes.
SR with an amendment:
      In paragraph (3), strike ``major'' and insert 
``measurable'', and strike all references to ``goals'' and 
insert ``results or outcomes''

      (302) There are no differences between the House bill and 
Senate amendment.
LC
      (303) The Senate amendment, but not the House bill 
requires States to demonstrate that they have in effect the 
statewide system required in section 633.
      The House bill specifically references effects of fetal 
exposure to alcohol, the Senate amendment does not.
      The House bill, but not the Senate amendment, requires a 
description of collaboration efforts with other early childhood 
programs in the State.
HR with an amendment:
      Strike ``for evaluation'' after ``require the referral'' 
and insert ``under this part'' after ``intervention services'' 
in (6) and insert:
            ``(11) a description of State efforts to promote 
        collaboration between Early Head Start programs, early 
        education and child care programs, and services under 
        part C of this Act.''

      Report language: ``The Conferees intend that every child 
described in 637(a)(6)(A) and (B) will be screened by a Part C 
provider or designated primary referral source to determine 
whether a referral for an evaluation for early intervention 
services under Part C is warranted. If the screening indicates 
the need for a referral, the Conferees expect a referral to be 
made. However, the Conferees do not intend this provision to 
require every child described in Section 637(a)(6)(A) and (B) 
to receive an evaluation or early intervention services under 
Part C.''
      (304) The House bill gives discretion of up to 6 months 
to develop a transition plan. The Senate amendment provides up 
to 9 months.
HR
      (305) Senate transition plan includes reference to ``as 
appropriate, steps to exit from the program.''
HR
      The Senate amendment, but not the House bill, includes a 
requirement for policies and procedures regarding homeless 
children and wards of the State.
SR
      (306) The Senate amendment, but not the House bill, 
requires assurances regarding homeless children and wards of 
the State.
HR
      (307) There are no significant differences between the 
House bill and Senate amendment.
LC
      (308) Both the House bill and the Senate amendment allow 
States to continue to provide services to children aged 3-5 in 
the Part C program, if the parent chooses to keep their child 
in that system. The Senate amendment requires the written 
consent of parents to continue to provide early intervention 
services.
HR with an amendment to (4) to read as follows:
            ``(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''.

      (309) Neither the House bill nor the Senate amendment 
make any changes in this section to current law.
HR
      (310) The House bill makes no changes to current law. The 
Senate amendment adds a provision requiring States to ensure 
that interagency agreements are in place to ensure that 
services are paid for by appropriate State agencies.
HR with an amendment to (b) to read as follows:
      ``(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
                    ``(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.''

      (311) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR
      (312) There are no differences between the House bill and 
Senate amendment.
LC
      (313) The House bill, but not the Senate amendment, 
requires the addition of representatives from the State mental 
health agency, child welfare agency, and the Office of the 
Coordinator of homeless children and youth to the State 
council.
      The Senate amendment, but not the House bill, requires 
parents of homeless children and representatives of wards of 
the State to be on the panel.
      The Senate amendment, but not the House bill, requires 
the addition of representatives from the State Medicaid agency 
to the State council, homeless children, the welfare agency, 
and foster children.
HR with an amendment:
      Strike 1(A) and replace with 1(A) from House bill and 
strike 1(M) and insert 1(J) from House bill.

      (314) There are no differences between the House bill and 
Senate amendment.
LC
      (315) There are no differences between the House bill and 
Senate amendment.
LC
      (316) There are no differences between the House bill and 
Senate amendment.
LC
      (317) There are no differences between the House bill and 
Senate amendment.
LC
      (318) The House bill requires the BIA to submit an annual 
report and the Senate amendment requires a biennial report.
HR
      (319) The Senate amendment includes the authorization of 
a new State bonus grant to States that develop birth -6 
programs, otherwise the State formulas are the same.
HR with an amendment:
      Amend (e) to read as follows:
      ``(e) Reservation for State Incentive Grants.--
            ``(1) The Secretary shall reserve 15 percent of the 
        amount appropriated under section 644 for any fiscal 
        year that such amount exceeds $460,000,000 to make 
        allotments to States that are carrying out the policy 
        described in section 635(b), by allotting to each State 
        an amount that bears the same ratio to the amount of 
        such reservation as the number of infants and toddlers 
        in the State bears to the number of infants and 
        toddlers in all participating States, without regard to 
        subsections (c)(2) and (3).
            ``(2) Maximum.--No State may receive an allotment 
        greater than 20 percent of the reservation pursuant to 
        this subsection.
            ``(3) Carryover of funds by states.--
        Notwithstanding section 421(b) of the General Education 
        Provisions Act or any other provision of law, a State 
        may carryover funds received from the Secretary under 
        this for one additional fiscal year.''

      (320) The House bill establishes a specific authorization 
level for the first year and such sums for the life of the 
authorization. The Senate amendment authorizes such sums for 
the entire authorization.
HR
Part D
      (321) The House bill includes this technical language as 
part of its structure. The Senate amendment replaces the entire 
existing law.
HR/LC
      (322) Except for minor wording differences, there are no 
differences between the House bill and Senate amendment.
HR
      (323) The House bill focuses on training for existing 
personnel while the Senate amendment also allows for education 
of future personnel and defines the term personnel.
HR with an amendment:
      Amend title to ``State Personnel Development Grants''.

      (324) The Senate amendment authorizes a formula grant 
program if the appropriation exceeds $100 million. The House 
bill keeps the program as a competitive grant.
HR with an amendment:
      Insert new (4) as follows and renumber accordingly:
            ``(4) direct benefit.--In utilizing the amount 
        provided under paragraph (1) and not reserved pursuant 
        to subsection (e), 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.''

      (325) The Senate amendment, but not the House bill, 
requires the inclusion as a partner of a State agency for 
teacher preparation and certification, if it is outside of the 
SEA. The Senate amendment also requires the inclusion of the 
State agency responsible for administering Part C, child care, 
and VR programs.
HR with an amendment:
      Strike ``institutions of higher education'' and insert 
``at least one institution of higher education'' in (b)(1).
HR with an amendment:
      Strike ``child care'' and insert ``early education, child 
care'' in (b)(1).

      Report language: ``This provision requires State 
educational agencies to establish partnerships with local 
educational agencies and other State agencies involved in, or 
concerned with, the education of children with disabilities, 
including at least one institution of higher education and the 
State agencies responsible for administering part C, child 
care, and vocational rehabilitation programs. The Conferees 
encourage State educational agencies, when establishing such 
partnerships and where feasible, to establish partnerships with 
multiple institutions of higher education.''

      (326) The House bill and Senate amendment have similar, 
but differing descriptions of PTIs (E), the State advisory 
panel, and personnel.
HR
      (327) Current law in Senate amendment lists other 
partners, the House bill lists optional partners.
HR
      (328) The Senate amendment includes a requirement that 
the plan assess vacancies and shortages, and the existence of 
preservice programs.
HR with an amendment:
      Insert ``and inservice'' after ``preservice'' in 
(a)(2)(B)(ii).

      (329) The House bill specifically mentions related 
services personnel, while the Senate amendment does not.
HR
      (330) The Senate amendment references meeting personnel 
requirements of Part C, while the House bill does not.
HR
      (331) The Senate amendment includes a requirement that 
the State will carry out each of the strategies in the plan. 
The House bill includes this requirement in (b)(5).
HR
      (332) The Senate amendment, but not the House bill, 
includes requirements relating to highly qualified teachers and 
teacher qualifications for poor and minority students.
HR with an amendment:
      Amend heading to ``Elements of State Personnel 
Development Plan''.

      (333) The House bill and Senate amendment have differing 
provisions on coordination of other public and private 
resources.
HR
      (334) The Senate amendment, but not the House bill, 
requires State plans to include information on integration with 
other activities (4)(B), provide technical assistance (5) and 
(6), recruit and retain highly qualified teachers (7), teachers 
of poor and minority children (8), and meeting performance 
goals in Section 612(a)(15).
HR with an amendment:
      Strike ``preservice and inservice''.

      (335) The House bill maintains this program as a 
competitive grant program. The Senate amendment converts this 
to a formula grant program if funds exceed $100 million.
HR
      (336) There are no significant differences between the 
House bill and Senate amendment, except the Senate language 
only applies if the program is competitive.
HR
      (337) The House bill, but not the Senate amendment, 
includes a requirement that the annual report identify 
necessary changes to the State plan to improve performance.
SR with an amendment to read as follows:
      ``(3) identify changes in such strategies, if any, to 
improve its performance''.

      (338) Similar provisions with the Senate amendment adding 
as an allowable activity the ability to improve personnel 
preparation programs, and including functional standards. The 
Senate amendment also includes principals as eligible 
personnel, while the House bill includes early intervention and 
related services personnel. The Senate amendment also includes 
training in implementing effective IEPs.
HR
      (339) The House bill and Senate amendment are similar 
except the Senate amendment refers to `` or more'' of the 
activities while the House bill does not.
HR
      (340) There are no significant differences between the 
House and Senate amendments.
HR/LC
      (341) The House bill requires that 90% of funds be spent 
on professional development, while the Senate amendment 
requires 75% be spent on professional development.
SR
      (342) There are no differences between the House bill and 
Senate amendment.
LC
      (343) The House bill maintains this as a competitive 
grant program and establishes a lower maximum grant award.
HR
      (344) The House bill authorizes $44 million for the first 
year while the Senate amendment authorizes ``such sums.''
HR
      (345) The Senate amendment, but not the House bill, 
includes a purpose to help SEAs and LEAs improve their 
educational systems.
HR with an amendment:
      Add term ``personnel prep'' to paragraph (1) and the term 
``for children with disabilities'' in paragraph (2).

      Report language: ``The committee believes that 
information and assistance to States and LEAs on the effective 
implementation of responsiveness to intervention models must be 
developed and made widely available as quickly as possible. 
Large-scale implementation of improved methodologies for the 
determination of and appropriate intervention for specific 
learning disabilities will be crucial to making needed reforms 
in this area. The Secretary is strongly encouraged to 
collaborate with leading organizations and researchers in the 
field of learning disabilities to assist with development and 
dissemination activities, including information and assistance 
for educators and parents. Such an entity would have existing 
capacity for national dissemination activities, proven 
effectiveness and efficiency in developing and delivering 
large-scale research-based informational and assistance 
programs, and have well established relationships with the 
education and parent communities.''

      (346) The Senate amendment requires the comprehensive 
plan be coordinated with the ESRA plan and that the Secretary 
solicit input from interested individuals. The House bill does 
not include these provisions.
      The Senate amendment also allows public comment of 60 
days, while the House bill requires 30 days for public comment.
HR with an amendment:
      Strike ``60'' and insert ``45'' in paragraph (2).

      (347) The House bill, but not the Senate amendment, 
allows the Secretary to determine whether to include for-profit 
entities in the competition.
HR
      (348) The House bill requires 2% of funds to be reserved 
for HBCU's, while the Senate amendment requires 1% of funds to 
be reserved. The Senate amendment, but not the House bill, 
expands the pool of funds that are eligible to include subparts 
3 and 4.
SR
      (349) The Senate amendment, but not the House bill, adds 
priorities for geographic diversity universal design and 
assistive technology, and gifted and talented children.
SR with an amendment:
      Insert the following definition at note 32:
            ``(34) Universal design.--The term `universal 
        design' has the meaning given that term under paragraph 
        (1) of section 3 of the Assistive Technology Act of 
        1998, (29 U.S.C. Sec. 3002).''

      The Senate amendment, but not the House bill, includes 
homeless children and wards of the State and Impact Aid 
children as being included in the list of children the 
Department can address the needs with projects under Part D.
SR on Senate 3(L) and (8)
      (350) There are no differences between the House bill and 
Senate amendment.
LC
      (351) The Senate amendment, but not the House bill, 
requires the Secretary to ensure that products are available in 
accessible formats for people with disabilities.
SR
      Report language: ``The Conferees intend that the 
Secretary shall ensure that recipients of grants under this 
part make products available in alternate formats, including 
electronically.''

      (352) The Senate amendment, but not the House bill, 
expands the pool of funds considered as part of the amount for 
a ratable reduction, if necessary.
HR
      (353) The House bill and Senate amendment contain similar 
provisions creating a National Center for Special Education 
Research at the Institute for Education Science. However, the 
Senate amendment contains this language in Title III.
HR
      (354) The House bill and Senate amendment include similar 
provisions regarding authorized research activities with the 
House bill adding a focus on limited English proficient 
children with disabilities and the Senate amendment adding a 
focus on transition services. The Senate language is in Title 
III.
HR/SR to accept both new activities
      (355) The House bill and Senate amendment contain similar 
provisions regarding a research plan, with the House bill adds 
implementation criteria to ensure the plan is carried out. The 
Senate language is in Title III.
HR
      (356) The House bill and Senate amendment include similar 
provisions with the House bill adding as an allowable activity 
the ability to test and apply research findings in typical 
classroom settings.
SR with an amendment:
      Strike ``service'' and insert ``where children with 
disabilities receive services'' after ``settings'' in (c)(1).

      Report language: ``The conferees recognize that research-
based structured learning systems that are capable of using 
fine grained diagnostics to generate prescriptions, and 
incorporate community members and parents as mentors are highly 
effective in preventing school failure for children with 
disabilities. These programs are particularly effective as an 
early intervention strategy for children with disabilities, 
especially in reading and mathematics. When aligned to state 
standards such programs create a high level of accountability 
for local programs serving children with disabilities.
      ``The HOSTS Language Arts program, which is used widely 
in Texas, Ohio, Florida, Delaware, Michigan, Louisiana, and 
other states, is an example of such a program. HOSTS Learning 
programs have assisted schools in significantly improving 
student achievement and test results for all children, 
including children with disabilities. Research conducted by 
Bowling Green University has specifically demonstrated the 
efficacy of HOSTS Learning with children with disabilities and 
with children whose low achievement might otherwise cause them 
to be mislabeled as disabled.
      ``It has been demonstrated that these programs reduce 
academic failure, promote the integration of children with 
disabilities into the mainstream of educational success, 
decrease the incidence of school dropout, substance abuse, teen 
pregnancy, crime, and unemployment. This is instrumental in 
restoring trust in America's schools. Specifically, the 
conferees believe these intensive, research-based learning 
systems, that utilize teacher oversight, diagnostic and 
prescriptive tools, and community engagement, dramatically 
increase student achievement and implement the recommendations 
of the National Reading Panel for all children.''
      (357) The House bill and Senate amendment contain similar 
provisions with the Senate amendment adding activities to 
ensure the training of highly qualified teachers, and training 
on technology and transition services.
HR with an amendment:
      Move Sec. 664 to Note 353 and renumber Sections 
accordingly.

      (358) The House bill and Senate amendment include similar 
provisions with the Senate amendment adding activities to allow 
programs to support continuous personnel preparation, parental 
involvement, rural and high poverty schools, and highly 
qualified teachers.
HR with an amendment to read as follows:
      ``(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) Support effective existing, improve 
                existing, or develop new collaborative 
                personnel preparation activities undertaken by 
                institutions of higher education, local 
                educational agencies, and other local entities 
                that 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, 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 
                        such parents' 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.
                            ``(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 improved 
                collaboration between general educators, 
                special education teachers, and related 
                services personnel.
                    ``(F) Supporting institutions of higher 
                education with minority enrollments of at least 
                25 percent for the purpose of preparing 
                personnel to work with children with 
                disabilities.
                    ``(G) Developing and improving programs to 
                train special education teachers to develop an 
                expertise in autism spectrum disorders.
            ``(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; or
                    ``(B) Creating or supporting teacher-
                faculty partnerships (such as professional 
                development schools) that--
                            ``(i) consist of at least--
                                    ``(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;
                                    ``(III) 1 or more 
                                elementary 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; and
                            ``(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.''

      (359) The House bill and Senate amendment include similar 
provisions with the House bill adding as an allowable activity 
to focus on LEP students with low-incidence disabilities and 
the Senate amendment adding a new emphasis on communication and 
significant cognitive disabilities and multiple disabilities.
HR/SR to accept both
      (360) The House bill, but not the Senate amendment, adds 
as an allowable activity services that benefit leadership 
personnel that serve LEP students.
SR
      (361) The Senate amendment adds a new program to provide 
funds to colleges and universities to support and train special 
education teachers.
SR
      (362) The Senate amendment adds a new program to provide 
funds to colleges and universities to support and train general 
education teachers to work with students with disabilities.
SR
      (363) The House bill, but not the Senate amendment, adds 
a required assurance that the State needs personnel in the area 
of support.
SR with an amendment:
      Strike (3)(B).

      (364) The Senate amendment but not House bill allows the 
Secretary to give preferences to underrepresented groups.
HR
      (365) The House bill requires a service obligation of 2 
years for every year of assistance provided while the Senate 
amendment requires 1 year of service for one year of support. 
The House bill also contains a provision on leadership 
preparation. The Senate amendment, but not the House bill, 
allows scholarships for its new general educator program.
HR with an amendment to read as follows:
                            ``(i) Service obligation.--
                                    ``(I) In general.--Each 
                                application for funds under 
                                subsections (b), (c), and (d) 
                                shall include an assurance that 
                                the applicant will ensure that 
                                individuals who receive a 
                                scholarship under the proposed 
                                project will subsequently 
                                provide special education and 
                                related services to children 
                                with disabilities for a period 
                                of 2 years for every year for 
                                which assistance was received 
                                or repay all or part of the 
                                cost of that assistance, in 
                                accordance with regulations 
                                issued by the Secretary.
                                    ``(II) Special rule.--
                                Notwithstanding paragraph (1) 
                                of this subsection, the 
                                Secretary may reduce or waive 
                                the service obligation 
                                requirement 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.
                                    ``(III) Oversight.--The 
                                Secretary shall be responsible 
                                for ensuring that individuals 
                                participating in these programs 
                                fulfill their service 
                                obligations.''

      (366) The Senate amendment includes a separate 
authorization for this section, while the House bill contains 
an authorization for the entire subpart.
HR
      (367) The House bill and Senate amendment include similar 
provisions, except the Senate's list of authorized activities 
falls in subsection (e).
HR
      (368) The House bill and Senate amendment contain similar 
provisions, with the House bill requiring a comprehensive plan 
to be published for public comment and the Senate amendment 
requiring consultation with specified groups.
      The House bill requires an interim report be published in 
2 and \1/2\ years while the Senate amendment requires the 
interim report in 3 years.
SR with an amendment:
      Amend heading of (b) to ``Assessment of National 
Activities''.

HR on 3 years for interim report
      (369) The Senate amendment, but not the House bill, 
requires a study on alternate assessments and alternative 
achievement standards.
HR
      (370) There are no differences between the House bill and 
Senate amendment.
LC
      (371) The House bill and Senate amendment include similar 
provisions, except the House's list of authorized activities is 
in (b).
      The Senate amendment, but not the House bill, requires a 
study on the 0-6 program in Part C.
HR
      (372) The Senate amendment allows the Secretary to 
reserve funds under Parts B and C to pay for the studies and 
evaluations, while the House bill requires studies and 
evaluations to be paid out of the authorizations of 
appropriations for this subpart.
SR
      (373) The House bill includes one authorization of 
appropriations for this subpart, while the Senate amendment 
included authorizations for each section.
HR
      (374) There are no significant differences between the 
House and Senate amendments.
HR with an amendment:
      Insert a new paragraph (1) to read as follows and 
renumber accordingly:
            ``(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;''.

      (375) The House bill and Senate amendment contain similar 
provisions with the House bill adding as a required activity to 
meet the needs of low-income and limited English proficient 
students and the Senate amendment adding requirements for the 
center to explain mediation requirements to parents, assist 
parents and children of their rights upon reaching their 
majority, partner with community parent resource centers, and 
report on the number of parents served through alternative 
dispute resolution.
HR with an amendment:
      Insert as a new paragraph (3) to read as follows and 
renumber accordingly:
            ``(3) ensure that the training and information 
        provided meets the needs of low-income parents and 
        parents of children with limited English 
        proficiency;''.
HR with an amendment:
      Strike ``research based practices and interventions'' and 
insert ``practices and interventions based on scientifically 
based research, to the extent practicable,'' in (3)(D).
HR with an amendment:
      Insert as a new (F) to read as follows and reorder 
accordingly:
                    ``(F) participate in activities at the 
                school level that benefit their children;''.
HR with an amendment:
      Insert in paragraph (10) [not renumbered]: ``and the 
Institute of Education Sciences'' after ``section 663''.
HR with an amendment:
      Add ``as appropriate under state law'' after ``majority'' 
in paragraph (6).
HR with an amendment:
      Insert at the end of paragraph (7) [not renumbered]: ``, 
including the resolution session described in section 
615(e);''.

      (376) The House bill allows as an optional activity 
information to assist parents and children of their rights upon 
reaching their majority.
HR
      (377) The Senate amendment, but not the House bill, 
requires coordination of grantees in a large State.
HR with an amendment:
      Insert ``, including those that work with low-income 
parents and parents of children with limited English 
proficiency'' at the end of (d)(2).

      (378) The House bill, but not the Senate amendment, 
requires the advising board to advise the governing board of 
the organization.
HR
      (379) The House bill, but not the Senate amendment, 
requires that the board ensure that members include low-income 
parents and parents of limited English proficient students.
      The Senate amendment, but not the House bill, eliminates 
special governing committees. The House bill, but not the 
Senate amendment, requires the development of a memorandum 
explaining the role of the board and the center while the 
Senate amendment requires the center to develop a specific 
mission.
HR with an amendment:
      Insert ``, including low-income parents and parents of 
children with limited English proficiency'' at the end of 
(g)(1)(C).

      (380) The Senate amendment, but not the House bill, 
includes functional goals, and requires that a majority of 
members are parents of children with disabilities age birth 
through 26.
HR
      (381) The Senate amendment limits the national technical 
assistance grantee to one parent organization while the House 
bill allows multiple grants and a variety of eligible agencies.
SR
      (382) The Senate amendment, but not the House bill, 
includes extra requirements for a national and regional network 
of parent training and information technical assistance 
centers.
SR with amendment:
      Add Senate (d) to House bill.

      (383) The House bill, but not the Senate amendment, adds 
the support of implementation of research and the uses of 
technology and the Senate amendment, but not the House bill, 
adds support of internet based communications for students with 
cognitive disabilities.
HR with an amendment as follows:
      Strike ``and'' and insert ``, (c) and (d)'' after 
``subsections (b)'' in subsection (a).

      (384) The House bill allows the Secretary to support 
these activities and the Senate amendment requires the 
Secretary to support these activities. The Senate amendment 
also limits the captioning of programs only if captioning has 
not previously been provided or paid for.
HR with an amendment as follows:
      Insert ``; and Instructional Materials'' after 
``Activities'' in the heading of subsection (c).
HR with an amendment as follows:
      Strike (1)(D).
HR with an amendment as follows:
      Insert subsection (e) to read as follows:
      ``(e) National Instructional Materials Access Center.--
            ``(1) In General.--Notwithstanding subsection (d), 
        in carrying out this section, the Secretary shall 
        support, through the American Printing House for the 
        Blind, a center known as the Instructional Materials 
        Access Center not later than one year after the date of 
        enactment.
            ``(2) Responsibilities.--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 the 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 
                visually impaired and print disabled students 
                in elementary schools and secondary schools, in 
                accordance with such terms and procedures as 
                the National Instructional Materials Access 
                Center may prescribe; and
                    ``(C) To develop, adopt and publish 
                procedures to protect against copyright 
                infringement, with respect to the print 
                instructional materials provided under 
                612(a)(22) and section 613(a)(6).
                    ``(3) Definitions.--In this section--
                    ``(A) National instructional materials 
                accessibility standard.--The term `National 
                Instructional Materials Accessibility Standard' 
                means the technical standards described in 
                paragraph (2), to be used in the preparation of 
                electronic files suitable and used solely for 
                efficient conversion into specialized formats.
                    ``(B) 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.
                    ``(C) Specialized formats.--The term 
                `specialized formats' has the meaning given the 
                term in section 121(c)(3) of title 17, United 
                States Code.
                    ``(D) 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.
            ``(4) Applicability.--This section shall apply to 
        print instructional materials published after the date 
        on which the final rule establishing the National 
        Instructional Materials Accessibility Standard is 
        published in the Federal Register.
            ``(5) Liability of the secretary.--Nothing in this 
        subsection shall be construed to establish a private 
        right of action against the Secretary of Education for 
        failure to provide instructional materials directly, or 
        for failure by the National Instructional Materials 
        Access Center to perform the functions of such Center, 
        or to otherwise authorize a private right of action 
        related to the performance by theCenter, including 
through the application of the rights of children and parents 
established under this Act.''
HR with an amendment as follows:
      Insert ``not'' before ``been fully funded by other 
sources'' in paragraph (2).

      (385) The House bill, but not the Senate amendment, 
contains more specific requirements for eligible entities of 
the distributors of textbooks.
HR with an amendment as follows:
      Redesignate subsection (e) as subsection (f).

      (386) The House bill lays out set figures for 
authorizations for the subpart and for each section, while the 
Senate authorizes such sums for the section.
HR
      (387) The Senate amendment requires the Secretary to 
establish an electronic standard for the preparation of 
electronic files for instructional materials and creates a 
national center to disseminate instructional materials to some 
students with disabilities. The House bill does not include 
this provision.
SR with an amendment:
      Add at the end of this Act the following technical 
amendments in the miscellaneous provisions section to amend 17 
U.S.C. Sec. 121 as follows:
      Redesignate subsection (c) to (d)
      Insert new paragraph (c) to read as follows:
      ``(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 and secondary 
schools to create and distribute to the National Instructional 
Materials Access Center copies of the electronic files 
described in sections 612(a)(22)(B), 613(a)(6), and section 
674(d) of the Individuals with Disabilities Education Reform 
Act of 2004, containing the contents of print instructional 
materials using the Instructional Material Accessibility 
Standard (as defined in section 674(d) of said Act, when 
required to do so by any State or local educational agency, if 
the publisher had the right to publish such print instructional 
materials in print formats and if such copies are used solely 
for reproduction or distribution of the contents of such print 
instructional materials in specialized formats.''
SR with amendment as follows:
      Amend the definition of ``specialized formats'' in 
subsection (d) (currently subsection (c)) and add the 
definition from ``print instructional materials'' as follows:
      `` `Specialized formats' means braille, audio, or digital 
text which is exclusively for use by blind or other persons 
with disabilities. With respect to instructional materials, 
`specialized formats' also means large print formats when they 
are distributed exclusively for use by blind or other persons 
with disabilities.
      ``Print Instructional Materials.--The term `print 
instructional materials' has the meaning given to it under 
section 674(d)(3)((D) of the Individuals with Disabilities 
Education Reform Act of 2004.

      (388) The Senate amendment creates a new $50 million 
competitive program to make grants to LEAs to establish 
alternative educational settings and provide behavioral 
supports to students with disabilities. The House bill does not 
include this program.
HR with amendment:
      Insert the following at the end of Subpart 2:

``SEC. 674. INTERIM ALTERNATIVE EDUCATIONAL SETTINGS, BEHAVIORAL 
                    SUPPORTS, AND SYSTEMIC SCHOOL INTERVENTIONS.

      ``(a) Program Authorized.--The Secretary may award grants 
to, and enter into contracts and cooperative agreements to 
support safe learning environments that support academic 
achievement for all students by improving the quality of 
interim alternative educational settings, and 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) to improve interim alternative educational 
        settings by--
                    ``(A) improving the training of 
                administrators, teachers, related services 
                personnel, behavioral specialists, and other 
                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; 
                or
                    ``(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 Act shall prepare and submit 
annually to the Secretary of Education a report on the outcomes 
of the activities assisted under the grant.''

      Report language: ``The Conferees intend for this program 
to have a systemic impact on a school environment rather than 
provide isolated assistance to children with disabilities. The 
Conferees believe a systemic, research-based approach can 
greatly benefit special needs children while also providing an 
incidental benefit to non-disabled children, school staff, 
parents and others in the school community.
      ``The Conferees instruct the Department of Education to 
establish an easily accessible website with information on best 
practices for interim alternative educational settings, 
behavior supports, and systemic school interventions to help 
children with behavioral and emotional disabilities.''
Title II
      (389) The Senate amendment includes a new $50 million 
reservation of Rehabilitation Act State grants for States to 
provide transition services to students with disabilities 
through the VR system (beginning in the first year the amount 
appropriated exceeds the FY04 amount by $100,000,000). The 
House bill does not include this provision.
SR
Title V (House bill)
      (390) The House bill includes a sense of Congress that 
safe and drug free schools are essential for the learning and 
development of children with disabilities. The Senate amendment 
does not include this provision.
HR
      (391) The House bill requires a study on the costs to 
States of complying with IDEA. The Senate amendment does not 
include this provision.
HR
Title III
      (392) The House bill and Senate amendment contain similar 
provisions creating a National Center for Special Education 
Research at the Institute for Education Science. However, the 
House bill contains this language in Section 663.
HR
      (393) The Senate amendment, but not the House bill, 
contains a separate provision on the mission of the NCSER. The 
House bill and Senate amendment have differing language on the 
grant application process.
HR
      (394) The House bill lists similar authorized activities 
as the Senate amendment, which contains those activities under 
the ``duties'' section.
HR
      (395) The Senate amendment, but not the House bill, 
contains a ``standards'' section.
HR
      (396) The Senate amendment contains more detailed plan 
provisions than the House bill, and contains an implementation 
provision while the House does not.
HR
Title IV
      (397) The Senate amendment creates a commission on 
universal design and requires reports to be submitted to 
Congress on universal design and accessibility of instructional 
materials. The House bill does not include this provision.
SR
Title V
      (398) The Senate amendment, but not the House bill, 
includes an amendment to the Children's Health Act to include 
the Secretary of Education as a required partner in the 
longitudinal study and requires that the study be in compliance 
with FERPA requirements.
HR
      (399) The Senate amendment, but not the House bill, 
includes this required study on medication.
SR
General
      (400) Add enactment clause.
LC
                From the Committee on Education and the 
                Workforce, for consideration of the House bill 
                and the Senate amendment, and modifications 
                committed to conference:
                                   John Boehner,
                                   Michael N. Castle,
                                   Vernon J. Ehlers,
                                   Ric Keller,
                                   Joe Wilson,
                                   George Miller,
                                   Lynn C. Woolsey,
                                   Major R. Owens,
                From the Committee on Energy and Commerce, for 
                consideration of sec. 101 and title V of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Joe Barton,
                                   Michael Bilirakis,
                                   John D. Dingell,
                From the Committee on the Judiciary, for 
                consideration of sec. 205 of the House bill, 
                and sec. 101 of the Senate amendment, and 
                modifications committed to conference:
                                   F. James Sensenbrenner, Jr.,
                                   Lamar Smith,
                                   John Conyers,
                                 Managers on the Part of the House.

                                   Judd Gregg,
                                   Bill Frist,
                                   Michael B. Enzi,
                                   Lamar Alexander,
                                   Christopher Bond,
                                   Mike DeWine,
                                   Pat Roberts,
                                   Jeff Sessions,
                                   John Ensign,
                                   Lindsey Graham,
                                   John Warner,
                                   Edward Kennedy,
                                   Christopher J. Dodd,
                                   Tom Harkin,
                                   Barbara A. Mikulski,
                                   Jeff Bingaman,
                                   Patty Murray,
                                   Jack Reed,
                                   John Edwards,
                                Managers on the Part of the Senate.

                                  
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