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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1986 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                H. R. 1986

To reauthorize and improve the Individuals with Disabilities Education 
                                  Act.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 30, 1995

Mr. Kildee (for himself, Mr. Clay, Mr. Owens, Mr. Miller of California, 
Mr. Sawyer, Ms. Woolsey, Mr. Williams, and Mr. Martinez) introduced the 
  following bill; which was referred to the Committee on Economic and 
                       Educational Opportunities

_______________________________________________________________________

                                 A BILL

 
To reauthorize and improve the Individuals with Disabilities Education 
                                  Act.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
That this Act may be cited as the ``Individuals with Disabilities 
Education Act Amendments of 1995''.

                        organization of the act

    Sec. 2. This Act is organized into the following titles:
            Title I--Amendments to part A of the IDEA.
            Title II--Amendments to part B of the IDEA.
            Title III--Discretionary programs.
            Title IV--Amendments to part H of the IDEA.

                      effective dates; transition

    Sec. 3. (a) Effective Dates.--(1) Except as provided otherwise in 
this Act--
            (A) the amendments made by titles I, II, and IV of this Act 
        to parts A, B, and H of the Individuals with Disabilities 
        Education Act (20 U.S.C. 1400 et seq.; hereafter in this Act 
        referred to as the ``IDEA'') shall take effect on July 1, 1996;
            (B) the amendments to parts C through G of the IDEA made by 
        section 301 shall take effect on enactment; and
            (C) the amendments to parts C through G of the IDEA made by 
        section 302 shall take effect on October 1, 1996.
    (2) Notwithstanding paragraph (1) or any other provision of this 
Act, each State receiving assistance under parts B or H of the IDEA 
shall comply with each of the following provisions of the IDEA, as 
amended by this Act, a soon as possible after July 1, 1996, but by no 
later than the following dates:
            (A) By July 1, 1997, each of the following:
                    (i) Section 602(11), relating to the contents of 
                individualized education programs (IEPs). In the 
                interim, the State (and local educational agencies and 
                affected State agencies in the State) shall comply with 
                the provisions of the IDEA relating to the contents of 
                IEPs as in effect before the enactment of this Act.
                    (ii) Section 612(a)(16), relating to State 
                performance goals and indicators.
                    (iii) Sections 615(b)(5). 615(d), and 680(a)(8), 
                relating to mediation.
            (B) By July 1, 1998: section 614(d)(2)(C), relating to the 
        participation of regular education teachers in IEP teams.
    (b) Transition.--Notwithstanding any other provision of law, the 
Secretary may use funds appropriated for parts C through G of the IDEA 
beginning with fiscal year 1997 to make continuation awards for 
projects that were initially funded under those parts as in effect 
prior to that fiscal year.

               TITLE I--AMENDMENTS TO PART A OF THE IDEA

             short title; statement of findings and purpose

    Sec. 101. Section 601 of the IDEA is amended to read as follows:
               ``short title; policy; findings; purposes

    ``Sec. 601. (a) Short Title.--This Act may be cited as the 
`Individuals With Disabilities Education Act'.
    ``(b) Policy.--The Congress declares it to be the policy of the 
United States that all children with disabilities should have the 
opportunity to--
            ``(1) meet developmental goals and, to the maximum extent 
        possible, those challenging standards that have been 
        established for all children; and
            ``(2) be prepared to lead productive, independent, adult 
        lives, to the maximum extent possible.
    ``(c) Findings.--The Congress finds as follows:
            ``(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 enactment of Public Law 94-142, the 
        Education for All Handicapped Children Act of 1975--
                    ``(A) the special educational needs of children 
                with disabilities were not being fully met;
                    ``(B) more than half of the children with 
                disabilities in the United States did not receive 
                appropriate educational services that would enable them 
                to have full equality of opportunity;
                    ``(C) one million of the children with disabilities 
                in the United States were excluded entirely from the 
                public school system and did not go through the 
                educational process with their peers;
                    ``(D) there were many children with disabilities 
                throughout the United States participating in regular 
                school programs whose disabilities prevented them from 
                having a successful educational experience because 
                their disabilities were undetected; and
                    ``(E) because of the lack of adequate services 
                within the public school system, families were often 
                forced to find services outside the public school 
                system, often at great distance from their residence 
                and at their own expense.
            ``(3) Since the enactment of Public Law 94-142, this Act 
        has been successful in ensuring children with disabilities and 
        their families access to a free and appropriate education and 
        in improving educational results for children with 
        disabilities.
            ``(4) However, the implementation of this Act has been 
        impeded by low expectations, watered-down curriculum, 
        categorical approaches, and an insufficient focus on teaching 
        and learning.
            ``(5) Based on 20 years of research and experience, we have 
        learned that the education of children with disabilities can be 
        made more effective by--
                    ``(A) having high expectations for children with 
                disabilities and ensuring their access to the general 
                curriculum to the maximum extent possible;
                    ``(B) aligning this Act with other local, State, 
                and Federal school improvement efforts, including the 
                Goals 2000: Educate America Act, the Improving 
                America's Schools Act of 1994, and the School-to-Work 
                Act of 1994, in order to ensure that children with 
                disabilities benefit from those reforms and that 
                special education can become a service for children 
                rather than a place where they are sent;
                    ``(C) providing appropriate special education and 
                related services and aids and supports in the regular 
                classroom, whenever appropriate;
                    ``(D) promoting noncategorical approaches that 
                focus on individual strengths and needs rather than 
                labels;
                    ``(E) ensuring that families have meaningful 
                opportunities to participate in the education of their 
                children at school and at home;
                    ``(F) supporting high-quality, intensive 
                professional development for all personnel who work 
                with children with disabilities in order to ensure that 
                they have the skills and knowledge necessary to enable 
                them to--
                            ``(i) meet developmental goals and, to the 
                        maximum extent possible, those challenging 
                        standards that have been established for all 
                        children; and
                            ``(ii) be prepared to lead productive, 
                        independent, adult lives, to the maximum extent 
                        possible;
                    ``(G) providing incentives for whole-school 
                approaches and early intervention to reduce the need to 
                label children as disabled in order to address their 
                learning needs; and
                    ``(H) focusing resources on teaching and learning 
                while reducing paperwork and requirements that do not 
                assist in improving educational results.
            ``(6) While States and local educational agencies are 
        responsible for providing an education for all children with 
        disabilities, it is in the national interest that the Federal 
        Government have a role in assisting State and local efforts to 
        educate children with disabilities in order to improve results 
        for those children and to ensure equal protection of the law.
    ``(d) Purposes.--The purposes of this Act are to--
            ``(1) ensure that all children with disabilities have 
        available to them a free appropriate public education that 
        emphasizes special education and related services designed to 
        meet their unique needs and prepare them for employment and 
        independent living;
            ``(2) ensure that the rights of children with disabilities 
        and their parents are protected;
            ``(3) assist States and localities to provide for the 
        education of all children with disabilities; and
            ``(4) assess, and ensure the effectiveness of, efforts to 
        educate children with disabilities.''.

                              definitions

    Sec. 102. Section 602 of the IDEA is amended--
            (1) by striking out subsection (b);
            (2) by striking out the subsection designation ``(a)'';
            (3) by striking out ``As used in this title'' and inserting 
        in lieu thereof ``Except as otherwise provided, the following 
        terms have the following meanings as used in this Act:'';
            (4) by amending paragraph (1) to read as follows:
    ``(1) Child With a Disability.--(A) The term `child with a 
disability' means a child--
            ``(i) who has a physical or mental impairment; and
            ``(ii) who, by reason of that impairment, needs special 
        education and related services.
    ``(B) The term `physical or mental impairment' means--
            ``(i) mental retardation;
            ``(ii) a hearing impairment, including deafness;
            ``(iii) a speech or language impairment;
            ``(iv) a visual impairment, including blindness;
            ``(v) an emotional disturbance;
            ``(vi) an orthopedic impairment;
            ``(vii) autism;
            ``(viii) traumatic brain injury;
            ``(ix) other health impairments; or
            ``(x) a specific learning disability, as defined in 
        paragraph (23).
    ``(C) Nothing in this paragraph requires that children be 
classified by their impairment provided that each child with an 
impairment listed in subparagraph (B) who, by reason of that 
impairment, needs special education and related services, is regarded 
as a child with a disability under subparagraph (A).
    ``(D) At a State's discretion, the term `child with a disability' 
also includes a child aged three, four, or five--
            ``(i) who is experiencing a developmental delay, as defined 
        by the State and as measured by appropriate diagnostic 
        instruments and procedures, in one or more of the following 
        areas:
                    ``(I) physical development;
                    ``(II) cognitive development;
                    ``(III) communication development;
                    ``(IV) social or emotional development; or
                    ``(V) adaptive development; and
            ``(ii) who, by reason of that developmental delay, needs 
        special education and related services.'';
            (5) by amending paragraph (6) to read as follows:
    ``(6) 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.'';
            (6) by amending paragraph (8) to read as follows:
    ``(8) Local Educational Agency.--The term `local educational 
agency' means--
            ``(A) a public board of education or other public authority 
        legally constituted within a State for either administrative 
        control or direction of, or to perform a service function for, 
        public elementary or secondary schools in a city, county, 
        township, school district, or other political subdivision of a 
        State, or for a combination of school districts or counties as 
        are recognized in a State as an administrative agency for its 
        public elementary or secondary schools;
            ``(B) any other public institution or agency having 
        administrative control and direction of a public elementary or 
        secondary school; or
            ``(C) an intermediate educational unit, as defined in 
        paragraph (13).'';
            (7) by amending paragraph (11) to read as follows:
    ``(11) Institution of Higher Education.--The term `institution of 
higher education'--
            ``(A) has the meaning given that term in section 1201(a) of 
        the Higher Education Act of 1965; and
            ``(B) also includes any community college receiving funding 
        from the Secretary of the Interior under the Tribally 
        Controlled Community College Assistance Act of 1978.'';
            (8) by striking out paragraph (13);
            (9) in paragraph (15)--
                    (A) by designating the sentences therein as 
                subparagraphs (A), (B), and (C);
                    (B) in subparagraph (A) as so designated, by 
                striking out ``The term `children with specific 
                learning disabilities' means those children who have'' 
                and inserting in lieu thereof ``The term `specific 
                learning disability' means'';
                    (C) in subparagraph (B), as designated by 
                subparagraph (A), by striking out ``Such disorders 
                include'' and inserting in lieu thereof ``The term 
                includes''; and
                    (D) in subparagraph (C), as designated by 
                subparagraph (A) by striking out ``Such term does not 
                include children who have learning problems which are'' 
                and inserting in lieu thereof ``The term does not 
                include a learning problem that is'';
            (10) in paragraph (16), by striking out ``or guardians'';
            (11) in paragraph (17), by inserting ``orientation and 
        mobility services,'' after ``rehabilitation counseling,'';
            (12) in paragraph (18), by striking out ``section 
        614(a)(5)'' and inserting in lieu thereof ``section 614(d)'';
            (13) by amending paragraph (20) to read as follows:
    ``(20) Individualized Education Program.--The term `individualized 
education program' means a written statement for each child with a 
disability that is developed, reviewed, and revised in accordance with 
section 614(d) and that includes--
            ``(A) a statement of the child's present levels of 
        educational performance, including--
                    ``(i) how the child's impairment affects the 
                child's participation and progress in the general 
                curriculum; or
                    ``(ii) for preschool children, as appropriate, how 
                the impairment affects the child's access to 
                developmentally appropriate activities;
            ``(B) a statement of measurable annual objectives related 
        to--
                    ``(i) meeting the child's needs that result from 
                the child's impairment, to enable the child to 
                participate in the general curriculum; and
                    ``(ii) meeting each of the child's other 
                educational needs, if any, that result from the child's 
                impairment;
            ``(C)(i) a statement of the special education and related 
        services and supplementary aids and services to be provided to 
        the child and any program modifications necessary for the child 
        to--
                    ``(I) attain the annual objectives; and
                    ``(II) participate in the general curriculum and in 
                extracurricular and other nonacademic activities;
            ``(ii) a justification of the extent, if any, to which the 
        child will not be educated with nondisabled children; and
            (iii) a justification of the extent, if any, to which the 
        child will not participate in extracurricular and other 
        nonacademic activities with nondisabled children;
            ``(D)(i) a statement of any modifications in the 
        administration of State or districtwide assessments that are 
        needed in order for the child to participate in the assessment; 
        and
            ``(ii) if the IEP team established under section 614(d)(2) 
        determines that the child will not participate in a particular 
        State or districtwide assessment (or part of such an 
        assessment), a statement of--
                    ``(I) why that assessment is not appropriate for 
                the child; and
                    ``(II) how the child will be assessed;
            ``(E) the projected date for the beginning of the services 
        and modifications described in subparagraph (C), and the 
        anticipated frequency and duration of those services and 
        modifications;
            ``(F) in order to ensure that each student completes 
        secondary school prepared for employment or postsecondary 
        education and independent living, and understands their rights 
        under this Act on attaining the age or majority (if the State 
        provides for the transfer of those rights from the parents)--
                    ``(i) beginning at age 14 (or younger, if 
                determined appropriate by the IEP team) and updated 
                annually, a plan for the student's transition from 
                secondary school that focuses on the student's courses 
                of study (such as participation in advanced-placement 
                courses or a vocational education or school-to-work 
                program) including, when appropriate, a statement of 
                the interagency responsibilities or any needed linkages 
                (or both) before the student leaves the school setting;
                    ``(ii) beginning at age 16 (or younger, if 
                determined appropriate by the IEP team), a statement of 
                needed transition services; and
                    ``(iii) beginning at least one year before the 
                student reaches the age of majority under State law, a 
                statement about the rights under this Act, if any, that 
                will transfer to the student on reaching the age of 
                majority under section 615(j); and
            ``(G) a statement of--
                    ``(i) how the child's progress toward the 
                measurable annual objectives will be measured; and
                    ``(ii) how the child's parents will be regularly 
                informed (by such means as periodic report cards), at 
                least as often as parents are informed of their 
                nondisabled children's progress, of--
                            ``(I) their child's progress toward the 
                        measurable annual objectives; and
                            ``(II) the extent to which that progress is 
                        sufficient to enable the child to achieve the 
                        objectives by the end of the year.'';
            (14) in paragraph (21)--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by striking out ``this 
                        part'' and inserting in lieu thereof ``part B 
                        of this Act'';
                            (ii) in clause (ii), by inserting ``part A 
                        of'' after ``under''; and
                            (iii) in clause (iii), by striking out 
                        ``title VII of the Elementary and Secondary 
                        Education Act of 1965'' and inserting in lieu 
                        thereof ``part A of the Bilingual Education 
                        Act''; and
                    (B) in subparagraph (B), by striking out ``such 
                part, chapter, or title'' and inserting in lieu thereof 
                ``those parts'';
            (15) in paragraph (22), by striking out ``section 
        7003(a)(2)'' and inserting in lieu thereof ``section 
        7501(11)'';
            (16) in paragraph (23), by inserting ``described in 
        subparagraphs (A) and (B) of paragraph (14)'' after ``local 
        educational agency'';
            (17) in paragraph (24)--
                    (A) by striking out subparagraph (A); and
                    (B) in subparagraph (B), by striking out ``The 
                terms `Indian', `American Indian', and `Indian 
                American' mean'' and inserting in lieu thereof ``The 
                term `Indian' means'';
            (18) by striking out paragraph (27);
            (19) by redesignating paragraphs (1), (5), (6), (7), (8), 
        (9), (10), (11), (12), (14), (15), (16), (17), (18), (19), 
        (20), (21), (22), (23), (24)(B), (24)(C), (25), and (26) as 
        paragraphs (3), (6), (24), (25), (14), (5), (20), (12), (16), 
        (21), (23), (22), (19), (8), (26), (11), (7), (15), (13), (9), 
        (10), (1), and (2), respectively;
            (20) by inserting the following paragraph headings in 
        paragraphs (1), (2), (4), (5), (6), (7), (8), (9), (10), (13), 
        (15), (16), (19), (20), (21), (22), (23), (25), and (26), as 
        redesignated by paragraph (19): ``Assistive Technology 
        Device.'', ``Assistive Technology Service.'', 
        ``Construction.'', ``Elementary School.'', ``Equipment.'', 
        ``Excess Costs.'', ``Free Appropriate Public Education.'', 
        ``Indian.'', ``Indian Tribe.'', ``Intermediate Educational 
        Unit.'', ``Native Language.'', ``Nonprofit.'', ``Related 
        Services.'', ``Secondary School.'', ``Secretary.'', ``Special 
        Education.'', ``Specific Learning Disability.'', ``State 
        Educational Agency.'', and ``Transition Services.'', 
        respectively; and
            (21) by inserting paragraphs (17) and (18) after paragraph 
        (16), as redesignated by paragraph (19), to read as follows:
    ``(17) Outlying Area.--The term `outlying area' means the Virgin 
Islands, Guam, American Samoa, and the Commonwealth of the Northern 
Mariana Islands.
    ``(18) Parent.--The term `parent' includes a legal guardian.''.

                  office of special education programs

    Sec. 103. Section 603 of the IDEA is amended by adding at the end 
thereof a new subsection (c) to read as follows:
    ``(c) Notwithstanding section 1342 of title 31, United States Code, 
the Secretary is authorized to accept voluntary and uncompensated 
services in furtherance of the purposes of this Act.''.

                requirements for prescribing regulations

    Sec. 104. Section 608(a) of the IDEA is amended to read as follows:
    ``(a) The Secretary shall provide a public-comment period of at 
least 90 days on any regulation proposed under part B of this Act on 
which an opportunity for public comment is otherwise required by 
law.''.

                  eligibility for financial assistance

    Sec. 105. Section 609 of the IDEA is amended to read as follows:

                 ``eligibility for financial assistance

    ``Sec. 609. The Secretary shall not make a grant under parts C 
through G of this Act to a State, or to any local educational agency or 
other public institution or agency in the State, that relates 
exclusively to programs, projects, and activities pertaining to 
children aged three through five unless the State is eligible to 
receive a grant under section 619.''.

       administrative provisions applicable to parts c through g

    Sec. 106. Except as otherwise provided, effective on October 1, 
1996, section 610 of the IDEA is amended to read as follows:

      ``administrative provisions applicable to parts c through g

    ``Sec. 610. (a) Findings.--With respect to this section and parts D 
through G, the Congress finds as follows:
            ``(1)(A) The Federal Government must be responsive to the 
        growing needs of an increasingly more diverse society. A more 
        equitable allocation of resources is essential for the Federal 
        Government to meet its responsibility to provide an equal 
        educational opportunity for all individuals.
            ``(B) America's racial profile is rapidly changing. Between 
        1980 and 1990, the rate of increase in the population for white 
        Americans was 6.0 percent, while the rate of increase for 
        racial and ethnic minorities was much higher: 53.0 percent for
         Hispanics, 13.2 percent for African Americans, and 107.8 
percent for Asians.
            ``(C) By the year 2000, this Nation will have 260 million 
        people, one of every three of whom will be either African 
        American, Hispanic, or Asian American.
            ``(D) Taken together as a group, minority children are 
        comprising an ever larger percentage of public school students. 
        Large city school populations are overwhelmingly minority; for 
        example, for school year 1992-1993, the figure for Miami is 83 
        percent; for Chicago, 88 percent; for Philadelphia, 77 percent; 
        for Baltimore, 83.5 percent; for Houston, 87 percent; and for 
        Los Angeles, 87 percent.
            ``(E) The population of individuals with limited English 
        proficiency is the fastest growing in our Nation, and the 
        growth is occurring in many parts of our Nation. In the 
        Nation's two largest school districts, nearly half of the 
        children entering kindergarten have limited English 
        proficiency. Children with disabilities who are also limited-
        English-proficient face very significant obstacles in seeking 
        to take advantage of their opportunity to receive an education 
        that will enable them to participate fully in American society. 
        These obstacles include inappropriate referral and evaluation 
        procedures for special education services; the limited English 
        proficiency of their parents, which hinders the parents' 
        ability to fully participate in the education of their 
        children; and a shortage of teachers and other staff who are 
        professionally qualified to serve these children.
            ``(2)(A) Greater efforts are needed to prevent the 
        intensification of problems connected with mislabeling and to 
        improve post-school results among minority children with 
        disabilities.
            ``(B) More minority children continue to be served in 
        special education than would be expected from the percentage of 
        minority students in the general school population.
            ``(C) Poor African American children are 2.5 times more 
        likely to be identified by their school as mentally retarded 
        than are their white counterparts.
            ``(D) Although African Americans represent 16 percent of 
        elementary and secondary enrollments, they constitute 24 
        percent of total enrollments in special education.
            ``(E) The percentage of students with disabilities who are 
        white who go on to college is 18; for African American students 
        with disabilities, that percentage is 11; and for Hispanic 
        students with disabilities, 14 percent.
            ``(F) Up to five years after leaving high school, over 46 
        percent of white youth with disabilities were employed at jobs 
        paying over six dollars per hour, while less than 14 percent of 
        African American youth with disabilities and just 25 percent of 
        Hispanic youth with disabilities were employed at or above that 
        rate.
            ``(3)(A) There is a compelling national interest in aiding 
        those institutions of higher education that have historically 
        served students who have been denied access to postsecondary 
        education because of race or national origin and whose 
        participation in the American system of higher education is in 
        the Nation's interest so that equality of access and the 
        quality of postsecondary education is enhanced for all 
        students.
            ``(B) As recently as 1991, Historically Black Colleges and 
        Universities (HBCUs) enrolled 44 percent of the African 
        American teacher trainees in the Nation. However, in 1993, 
        HBCUs received only four percent of the discretionary funds for 
        special education and related services personnel training under 
        this Act.
            ``(C) HBCUs and other institutions of higher education with 
        substantial minority enrollments have played an important role 
        in preparing special education teachers and other professionals 
        who provide services to children with disabilities in inner-
        city urban and rural areas that have experienced significant 
        shortages in qualified teachers and service providers. In 1990-
        91, 38 percent of all schools had teaching vacancies in special 
        education; schools that were 20 percent of more minority were 
        more likely to have teaching vacancies than those with lower 
        percentages of minority enrollments.
            ``(D) HBCUs and other institutions of higher education with 
        substantial minority enrollments play an important role in the 
        development of a professional workforce in special
         education that reflects the full participation of all members 
of society by providing access and high-quality education to low-income 
and minority students who will enter special education and related 
fields.
            ``(E) As the number of African American and Hispanic 
        students in schools, and in special education, continues to 
        rise, the number of minority teachers and related service 
        personnel produced in our colleges and universities continues 
        to decrease. In 1992-1993, 90 percent of those receiving 
        bachelor's degrees in education were white, while only five 
        percent were African American and less than three percent were 
        Hispanic. In 1980-81, when almost the same total number of 
        bachelor's degrees in education were conferred, 87 percent of 
        those receiving education degrees were white, 9 percent were 
        African American, and three percent were Hispanic.
    ``(b) Comprehensive Plan.--(1) The Secretary shall develop and 
implement a comprehensive plan for activities under parts D through G 
of this Act in order to assist States and local educational agencies in 
providing educational, related, and early intervention services to 
children with disabilities under parts B and H of this Act.
    ``(2) In developing the plan described in paragraph (1), the 
Secretary shall involve individuals with disabilities; parents of 
children with disabilities; appropriate professionals; and 
representatives of State and local educational agencies, private 
school, institutions of higher education, other Federal agencies, the 
National Council on Disabilities, and national organizations with an 
interest in, and expertise in, providing services to children with 
disabilities and their families.
    ``(c) Eligible Applicants.--(1) Except as otherwise provided, those 
eligible to apply for awards under parts D through G are--
            ``(A) institutions of higher education;
            ``(B) State educational agencies;
            ``(C) local educational agencies;
            ``(D) other public agencies;
            ``(E) private nonprofit organizations;
            ``(F) Indian tribes, the Bureau of Indian Affairs (when 
        acting on behalf of schools operated by the Bureau for children 
        and students on Indian reservations), and tribally controlled 
        schools funded by the Bureau; and
            ``(G) when the Secretary finds it appropriate in light of 
        the purposes of a particular competition, forprofit 
        organizations.
    ``(2) The Secretary may limit individual competitions to one or 
more categories of eligible entities listed in paragraph (1).
    ``(d) Special Populations.--(1) In making awards under parts D 
through G, the Secretary shall, as appropriate, require applicants to 
demonstrate how they will address the needs of children with 
disabilities from minority backgrounds.
    ``(2) Notwithstanding any other provision of this Act, beginning 
with fiscal year 1996, the Secretary--
            ``(A) shall ensure that at least one percent of the total 
        amount of funds appropriated for parts D through G (and, for 
        fiscal year 1996, for parts C through G) is used--
                    ``(i) for outreach and technical assistance to 
                Historically Black Colleges and Universities (HBCUs), 
                and to institutions of higher education with minority 
                enrollments of at least 25 percent, to promote their 
                participation in activities under those parts; and
                    ``(ii) to enable those HBCUs and institutions to 
                assist others in improving educational results for 
                children with disabilities; and
            ``(B) may reserve funds appropriated under parts D through 
        G (and, for fiscal year 1996, for parts C through G) to meet 
        the requirement of subparagraph (A).
    ``(e) Priorities.--In making awards under parts D through G, the 
Secretary may, without rulemaking under section 553 of title 5, United 
States Code, limit competitions to, or otherwise give priority to--
            ``(1) projects that address one or more--
                    ``(A) age ranges;
                    ``(B) disabilities;
                    ``(C) grades in school;
                    ``(D) types of educational placements or early 
                intervention environments;
                    ``(E) types of services; or
                    ``(F) content areas such as reading;
            ``(2) projects that address the needs of children with 
        disabilities who are of a single gender;
            ``(3) projects that address the needs of children based on 
        the severity of their disability;
            ``(4) projects that address the needs of--
                    ``(A) low-achieving students;
                    ``(B) underserved populations;
                    ``(C) children from low-income families;
                    ``(D) children with limited English proficiency;
                    ``(E) unserved and underserved areas; or
                    ``(F) particular types of geographic areas, such as 
                inner-city and rural areas;
            ``(5) projects in particular areas of the country, to 
        ensure broad geographic coverage; and
            ``(6) any activity that is expressly authorized in the 
        applicable part.
    ``(f) Applicant and Recipient Responsibilities.--(1) The Secretary 
shall require that applicants for, and recipients of, awards under 
parts D through G--
            ``(A) involve individuals with disabilities and parents of 
        individuals with disabilities in planning, implementing, and 
        evaluating projects; and
            ``(B) where appropriate, determine their projects' 
        potential for replication and widespread adoption.
    ``(2) The Secretary may require that applicants for, and recipients 
of, awards under parts D through G--
            ``(A) share in the cost of projects;
            ``(B) prepare their findings and products in formats useful 
        for specific audiences, including parents, administrators, 
        teachers, early intervention personnel, related services 
        personnel, and individuals with disabilities;
            ``(C) disseminate their findings and products; and
            ``(D) collaborate with other recipients.
    ``(g) Peer Review.--(1) The Secretary shall use panels of experts 
who are competent, by virtue of their training, expertise, or 
experience, to evaluate applications under parts D through G that 
request more than $75,000.
    ``(2) A majority of each panel under paragraph (1) shall be 
individuals who are not employees of the Federal Government.
    ``(3) The Secretary may use funds available under parts D through G 
to pay the expenses and fees of non-Federal panel members.
    ``(h) Program Evaluation.--The Secretary may use funds appropriated 
to carry out parts C through G to evaluate activities carried out under 
those parts.
    ``(i) Indirect Costs.--The Secretary--
            ``(1) shall not permit any recipient of funds under parts C 
        through G to use more than 25 percent of those funds for 
        indirect costs; and
            ``(2) may further limit the extent to which any such 
        recipient may use those funds for those costs.
    ``(j) Minimum Funding Required.--(1) The Secretary shall ensure 
that, for each fiscal year, at least the following amounts are provided 
for activities under parts D through G:
            ``(A) $12,832,000 to address the educational, related 
        services, transitional, and early intervention needs of 
        children with deaf-blindness.
            ``(B) $4,147,000 to address the educational, related 
        services, transitional, and early intervention needs of 
        children with an emotional disturbance, and to prevent children 
        with behavioral problems from developing an emotional 
        disturbance.
            ``(C) $10,030,000 to address the educational, related 
        services, transitional, and early intervention needs of 
        children with sever disabilities.
            ``(D) $4,000,000 to address the postsecondary, vocational, 
        technical, continuing, and adult education needs of individuals 
        with deafness.
    ``(2) If the total amount appropriated for any fiscal year for 
parts C through G is less than $254,034,000, the amounts listed in 
paragraph (1) shall be proportionately reduced.''.
               TITLE II--AMENDMENTS TO PART B OF THE IDEA

                              allocations

    Sec. 201. (a) Allocations.--Subsections (a) through (e) of section 
611 of the IDEA are amended to read as follows:
    ``(a) Grants to States.--
            ``(1) Purpose of grants.--The Secretary shall make grants 
        to States and the outlying areas, and provide funds to the 
        Secretary of the Interior, to assist them to provide special 
        education and related services to children with disabilities in 
        accordance with this part.
            ``(2) Outlying areas.--(A) From the amount appropriated for 
        any fiscal year under subsection (g), the Secretary shall 
        reserve not more than one percent to provide assistance to the 
        outlying areas in accordance with their respective populations 
        of individuals aged three through 21.
            ``(B) 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 section.
            ``(3) Secretary of the interior.--From the amount 
        appropriated for any fiscal year under subsection (g), the 
        Secretary shall reserve 1.25 percent to provide assistance to 
        the Secretary of the Interior in accordance with subsection 
        (f).
            ``(4) Hold-harmless payments.--(A) After reserving funds 
        for studies and evaluations under section 646(b), and for 
        payments to the outlying areas and the Secretary of the 
        Interior under paragraphs (2) and (3), the Secretary shall 
        allocate to each State an amount equal to the amount it 
        received under this section for fiscal year 1995, as then in 
        effect.
            ``(B) If a State received any funds under this section for 
        fiscal year 1995 on the basis of children aged three through 
        five, but does not make a free appropriate public education 
        available to all children with disabilities aged three through 
        five in the State, the Secretary shall reduce the amount 
        allocated to the State under subparagraph (A) by the amount so 
        received on that basis.
            ``(C)(i) If the sums available to make allocations to 
        States under this paragraph are insufficient to make the full 
        allocations determined under subparagraphs (A) and (B), the 
        Secretary shall--
                    ``(I) first, reduce the allocation of any State 
                whose number of children in the age range described in 
                paragraph (5) is less than the number of those children 
                in fiscal year 1995 by the same percentage by which 
                that number declined from 1995; and
                    ``(II) second, if necessary, ratably reduce the 
                allocations of all States, including those allocations 
                reduced under subclause (I).
            ``(ii) If additional funds become available to make 
        allocations under this paragraph, the allocations that were 
        reduced under clause (i) shall be increased on the same basis 
        as they were reduced.
            ``(5) Allocation of remaining funds.--After making 
        allocations under paragraph (4), the Secretary shall allocate 
        any remaining funds to States on the basis of their relative 
        population 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.
            ``(6) Puerto Rico.--Notwithstanding any other provision of 
        this section, the percentage of all funds allocated to the 
        States, the outlying areas, and the Secretary of the Interior 
        under paragraphs (2) through (5) of this subsection that is 
        allocated to the Commonwealth of Puerto Rico for any fiscal 
        year shall not exceed the percentage allocated to Puerto Rico 
        of all funds allocated to the States, the outlying areas, and 
        the Secretary of the Interior under this section for fiscal 
        year 1995, as then in effect.
            ``(7) Determination of population figures.--For the purpose 
        of making grants under this section, the Secretary shall use 
        the most recent population data that are available and 
        satisfactory to the Secretary.
    ``(b) State-Level Activities.--
            ``(1) General.--(A) Each State may retain up to 25 percent 
        of the grant it receives under this section for administration 
        and other State-level activities in accordance with paragraphs 
        (2) and (3).
            ``(B) A State may use funds it retains under subparagraph 
        (A) without regard to--
                    ``(i) the prohibition on commingling of funds in 
                section 612(a)(18)(B); and
                    ``(ii) the prohibition on supplanting other funds 
                in section 612(a)(18)(C)(i).
            ``(2) State administration.--(A) For the purpose of 
        administering this part, including section 619 (including the 
        coordination of activities under this part with, and providing 
        technical assistance to, other programs that provide services 
        to children with disabilities)--
                    ``(i) each State may use up to five percent of the 
                amount it receives under this section for any fiscal 
                year or $450,000, whichever is greater; and
                    ``(ii) each outlying area may use up to five 
                percent of the amount it receives under this section 
                for any fiscal year or $35,000, whichever is greater.
            ``(B) Funds described in subparagraph (A) may also be used 
        for the administration of part H of this Act, if the State 
        educational agency is the lead agency for the State under that 
        part.
            ``(3) Other state-level activities.--Each State shall use 
        any funds it retains under paragraph (1) and does not use for 
        administration under paragraph (2)--
                    ``(A) for support and direct services;
                    ``(B) for administrative costs of monitoring and 
                complaint investigation, but only to the extent that 
                those costs exceed the costs incurred for those 
                activities during fiscal year 1985;
                    ``(C) to establish and implement the mediation 
                process required by section 615(d);
                    ``(D) to develop a State Improvement Plan under 
                part C of this Act;
                    ``(E) for activities at the State and local levels 
                to meet the performance goals established by the State 
                under section 612(a)(16) and to support implementation 
                of the State Improvement Plan under part C if the State 
                receives funds under that part; or
                    ``(F) 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 to exceed one percent of the amount 
                received by the State under this section. This system 
                shall be coordinated with and, to the extent 
                appropriate, build on the system of coordinated 
                services developed by the State under part H of this 
                Act.
    ``(c) Subgrants to Local Educational Agencies.--
            ``(1) Subgrants required.--Each State that receives a grant 
        under this section for any fiscal year shall distribute at 
        least 75 percent of the grant funds to local educational 
        agencies in the State that have established their eligibility 
        under section 613, and to State agencies that received funds 
        under section 614A(a) of this Act for fiscal year 1995 and have 
        established their eligibility under section 613, for use in 
        accordance with this part.
            ``(2) Methods of distribution.--A State may distribute 
        funds under paragraph (1) on the basis of--
                    ``(A) population;
                    ``(B) school enrollment;
                    ``(C) numbers of children with disabilities 
                receiving a free appropriate public education;
                    ``(D) allocations for previous fiscal years;
                    ``(E) any two or more of the factors described in 
                subparagraphs (A) through (D); or
                    ``(F) poverty, in combination with one or more of 
                the factors described in subparagraphs (A) through (D).
            ``(3) Former chapter 1 state agencies.--To the extent 
        necessary, the State--
                    ``(i) shall use funds that are available under 
                subsection (b)(1)(A) to ensure that each State agency 
                that received fiscal year 1994 funds under subpart 2 of 
                part D of chapter 1 of title I of the Elementary and 
                Secondary Education Act of 1965 receives, from the 
                combination of funds under subsection (b)(1)(A) and 
                funds provided under paragraph (1) of this subsection, 
                an amount equal to--
                            ``(I) the number of children with 
                        disabilities, aged 6 through 21, to whom the 
                        agency was providing special education and 
                        related services on December 1 of the
                         fiscal year for which the funds were 
appropriated, subject to the limitation in subparagraph (B); multiplied 
by
                            ``(II) the per-child amount provided under 
                        such subpart for fiscal year 1994; and
                    ``(ii) may use those funds to ensure that each 
                local educational agency that received fiscal year 1994 
                funds under that subpart for children who had 
                transferred from a State-operated or State-supported 
                school or program assisted under that subpart receives, 
                from the combination of funds available under 
                subsection (b)(1)(A) and funds provided under paragraph 
                (1) of this subsection, an amount for each such child, 
                aged 3 through 21 to whom the agency was providing 
                special education and related services on December 1 of 
                the fiscal year for which the funds were appropriated, 
                equal to the per-child amount the agency received under 
                that subpart for fiscal year 1994.
                    ``(B) The number of children counted under 
                subparagraph (A)(i)(I) shall not exceed the number of 
                children aged 3 through 21 for whom the agency received 
                fiscal year 1994 funds under subpart 2 of part D of 
                chapter 1 of title I of the Elementary and Secondary 
                Education Act of 1965.
            ``(4) Reallocation of funds.--If a State educational agency 
        determines that a local educational agency is adequately 
        providing a free appropriate public education to all children 
        with disabilities residing in the area served by that agency 
        with State and local funds, the State educational agency may 
        reallocate any portion of the funds under this part that are 
        not needed by that local agency to provide a free appropriate 
        public education to other local educational agencies in the 
        State that are not adequately providing special education and 
        related services to all children with disabilities residing in 
        the areas they serve.
    ``(d) Minimum Subgrants.--(1) A State may elect not to distribute 
funds to any local educational agency under this section or under 
section 619 for any fiscal year if the total amount it would receive, 
from the combination of funds under this section and section 619, is 
less than $7,500.
    ``(2) When a State elects to use its authority under paragraph (1), 
it shall use the funds that would otherwise be provided to the local 
educational agency to ensure the provision of a free appropriate public 
education to children with disabilities residing in the area served by 
that agency.
    ``(3) A State's authority under paragraph (1) does not apply to a 
State agency that is eligible for a payment under section 611(c) or 
section 619(i).
    ``(e) Definition.--For the purpose of this section, the term 
`State' means each of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico.''.
    (b) Secretary of the Interior.--Section 611(f) of the IDEA is 
amended--
            (1) in paragraph (1), by striking out ``aggregate amounts'' 
        and all that follows through ``section'' and inserting in lieu 
        thereof ``amount appropriated under subsection (g)'';
            (2) in paragraph (3)--
                    (A) by striking out ``an application'' and 
                inserting in lieu thereof ``information'';
                    (B) in subparagraph (A)--
                            (i) by inserting ``demonstrates that the 
                        Department of the Interior'' before ``meets''; 
                        and
                            (ii) by striking out ``activities), 613, 
                        and 614(a)'' and inserting in lieu thereof 
                        ``activities) and 613'';
                    (C) in subparagraph (D), by striking out ``section 
                618(b)(1)'' and all that follows through ``section 
                618(g)'' and inserting in lieu thereof ``section 618 or 
                part E of this Act''; and
                    (D) in the sentence following subparagraph (F), by 
                striking out ``any such application'' and inserting in 
                lieu thereof ``the information described in this 
                paragraph'';
            (3) in paragraph (4)--
                    (A) in subparagraph (a)--
                            (i) by striking out ``Beginning with'' and 
                        inserting in lieu thereof ``With'';
                            (ii) by striking out ``section 611(a) for 
                        fiscal year 1992'' and inserting in lieu 
                        thereof ``section 611''; and
                            (iii) by striking out ``aggregate amounts'' 
                        and all that follows through ``section'' and 
                        inserting in lieu thereof ``amount appropriated 
                        under subsection (g)''; and
                    (B) in subparagraph (B), by striking out ``in the 
                following manner'' and all that follows through ``shall 
                receive'' in clause (ii) thereof and inserting in lieu 
                thereof ``by allocating to each tribe or tribal 
                organization''; and
            (4) in paragraph (6), by striking out ``section 
        613(a)(12)'' and inserting in lieu thereof ``section 
        612(a)(20)''.
    (c) Authorization of Appropriations.--Section 611 of the IDEA is 
further amended--
            (1) by striking out subsection (g);
            (2) by redesignating subsection (h) as subsection (g); and
            (3) by amending subsection (g), as so redesignated, to read 
        as follows:
    ``(g) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated such sums as 
may be necessary.''.

                           state eligibility

    Sec. 202. (a) Section 612 of the IDEA is amended to read as 
follows:

                          ``state eligibility

    ``Sec. 612. (a) State Eligibility.--A State is eligible for 
assistance under this part for any fiscal year if it demonstrates to 
the satisfaction of the Secretary that it has in effect policies and 
procedures to ensure that it meets each of the following conditions:
            ``(1) Free appropriate public education.--(A) A free 
        appropriate public education is available to all children with 
        disabilities residing in the State between the ages of 3 and 
        21, inclusive.
            ``(B) Subparagraph (A) does not apply with respect to 
        children 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.
            ``(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.--All children with disabilities residing 
        in the State are identified, located, and evaluated, regardless 
        of the severity of their disability.
            ``(4) Individualized education program.--An individualized 
        education program, or an individualized family service plan 
        that meets the requirements of section 676(d) of this Act, is 
        developed, reviewed, and revised for each child with a 
        disability in accordance with section 614(d).
            ``(5) Least restrictive environment.--(A) To the maximum 
        extent appropriate--
                    ``(i) children with disabilities, including 
                children in public or private institutions or other 
                care facilities, are educated with children who are not 
                disabled; and
                    ``(ii) special classes, separate schooling, or 
                other removal of children with disabilities from the 
                regular educational environment occurs only when the 
                nature or severity of a child's disability means that 
                education in regular classes with the use of 
                supplementary aids and services cannot be achieved 
                satisfactorily.
            ``(B)(i) If the State distributes State funds on the basis 
        of the type of setting in which a child is served, that funding 
        mechanism does not result in placements that violate the 
        requirements of subparagraph (A).
            ``(ii) If the State does not have policies and procedures 
        to ensure compliance with clause (i), the State shall provide 
        the Secretary an assurance that it will revise that funding 
        mechanism as soon as feasible to ensure that it does not result 
        in such placements.''.
            ``(6) Procedural safeguards.--Children with disabilities 
        and their parents are afforded the procedural safeguards 
        required by section 615.
            ``(7) Evaluation.--Children with disabilities are evaluated 
        in accordance with section 614 (a) through (c).
            ``(8) Confidentiality.--Agencies in the State comply with 
        section 617(c), relating to the confidentiality of records and 
        information.
            ``(9) Transition from part h to preschool programs.--(A) 
        Children participating in early-intervention programs assisted 
        under part H of this Act, and who will participate in preschool 
        programs assisted under this part, experience a smooth 
        transition to those preschool programs; and
            ``(B) by the child's third birthday, an individualized 
        education program or, if consistent with sections 614(d)(1)(B) 
        and 676(d), an individualized family service plan, has been 
        developed and is being implemented.
            ``(10) Children in private schools.--
                    ``(A) Children placed in private schools by their 
                parents.--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, those children participate in the 
                program assisted under this part by providing them 
                special education and related services, except when the 
                Secretary has arranged for services to those children 
                under subsection (f) of this section.
                    ``(B) Children placed in, or referred to, private 
                schools by public agencies.--(i) 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 they are placed in, or 
                referred to, those schools or facilities by the State 
                or a local educational agency in order to comply with 
                this part or with any other law requiring the provision 
                of special education and related services to all 
                children with disabilities in the State; and
                    ``(ii) in all cases described in clause (i), 
                children with disabilities are placed in, or referred 
                to, only those private schools and facilities that the 
                State educational agency determines meet standards that 
                apply to State and local educational agencies, and 
                children served in private schools or facilities have 
                all the rights they would have if served by those 
                agencies.
            ``(11) SEA responsible for general supervision.--(A) The 
        State educational agency is responsible for ensuring that--
                    ``(i) the requirements of this part are carried 
                out; and
                    ``(ii) all educational programs for children with 
                disabilities in the State, including all such programs 
                administered by any other State or local agency--
                            ``(I) are under the general supervision of 
                        the persons in the State educational agency who 
                        are responsible for educational programs for 
                        children with disabilities; and
                            ``(II) meet educational standards of the 
                        State educational agency.
            ``(B) Subparagraph (A) does not limit the responsibility of 
        agencies other than educational agencies 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.
            ``(12) Methods of ensuring services.--(A) If any public 
        agency other than an educational agency is responsible for 
        providing, or paying for, any of the services that are 
        necessary for the provision of a free appropriate public 
        education to children with disabilities within the State (such 
        as mental health services, transition services, and health 
        services for children with special needs), there is an 
        effective mechanism for interagency coordination, in order to 
        ensure that all required services are provided, which shall 
        include--
                    ``(i) an identification of, or a method for 
                defining, the financial responsibility of each agency 
                for providing a free appropriate public education to 
                children with disabilities; and
                    ``(ii) procedures for resolving interagency 
                disputes, including procedures under which local 
                educational agencies may obtain reimbursement from 
                other agencies.
            ``(B) The requirements of subparagraph (A) may be met 
        through--
                    ``(i) State statute or regulation;
                    ``(ii) signed agreements between respective agency 
                officials; or
                    ``(iii) other appropriate methods.
            ``(13) Local educational agency eligibility.--The State 
        educational agency will not finally determine that a local
         educational agency is not eligible under this part without 
first affording that agency reasonable notice and an opportunity for a 
hearing.
            ``(14) Comprehensive system of personnel development.--The 
        State has in effect, consistent with the purposes of this Act 
        and with section 676(b)(8), a comprehensive system of personnel 
        development that is designed to ensure an adequate supply of 
        qualified special education and related services personnel 
        necessary to carry out this part, including--
                    ``(A) a statewide, coordinated personnel-
                development plan that meets the personnel development 
                requirements of a State Improvement Plan under section 
                624 of this Act, as amended by section 302 of the 
                Individuals with Disabilities Education Act Amendments 
                of 1995; or
                    ``(B) a personnel-development plan developed in 
                consultation with parents of children with 
                disabilities, State and local educational agencies, 
                institutions of higher education, and professional 
                associations that--
                            ``(i) addresses current and projected needs 
                        for special education and related services 
                        personnel throughout the State;
                            ``(ii) addresses the need for the pre-
                        service and in-service preparation of personnel 
                        throughout the State, including regular 
                        education personnel, to provide educational 
                        services to children with disabilities;
                            ``(iii) includes a system or procedures for 
                        recruiting, preparing, and retaining qualified 
                        personnel, including personnel with 
                        disabilities and personnel from groups that are 
                        underrepresented in the field of special 
                        education and related services; and
                            ``(iv) is integrated, to the maximum extent 
                        possible, with other professional development 
                        plans and activities, including those developed 
                        or carried out under titles I and II of the 
                        Elementary and Secondary Education Act of 1965 
                        and title III of the Goals 2000: Educate 
                        America Act.
            ``(15) Personnel standards.--(A) The State educational 
        agency has established and maintains standards to ensure that 
        personnel necessary to carry out this part, including 
        paraprofessional personnel, are appropriately and adequately 
        prepared and trained, including--
                    ``(i) standards that are consistent with any State-
                approved or State-recognized certification, licensing, 
                registration, or other comparable requirements that 
                apply to the area in which those personnel are 
                providing special education or related services; and
                    ``(ii) to the extent the standards described in 
                clause (i) are not based on the highest requirements in 
                the State applicable to a specific profession or 
                discipline, the State is taking steps to require the 
                retraining or hiring of personnel that meet appropriate 
                professional requirements in the State.
            ``(B) Nothing in this Act, including subparagraph (A) of 
        this paragraph, prohibits the use of paraprofessionals who are 
        appropriately trained and supervised, in meeting the 
        requirements of this part.
            ``(16) Performance goals and indicators.--The State--
                    ``(A) has established goals for the performance of 
                children with disabilities in the State that--
                            ``(i) will promote the national policy 
                        stated in section 601(b) and the purposes of 
                        this Act stated in section 601(d)(1); and
                            ``(ii) are consistent, to the maximum 
                        extent appropriate, with other goals and 
                        standards established by the State, including 
                        those established under the Goals 2000: Educate 
                        America Act, the Elementary and Secondary 
                        Education Act of 1965, the School-to-Work 
                        Opportunities Act of 1994, and other relevant 
                        programs;
                    ``(B) has established performance indicators the 
                State will use to assess progress toward achieving 
                those goals that, at a minimum, address the performance 
                of children with disabilities on assessments; drop-out 
                rates; and graduation rates;
                    ``(C) will 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) every two years; and
                    ``(D) based on its assessment of that progress, 
                will revise its State Improvement Plan under part C as 
                may be needed to improve its performance, if it 
                receives funds under that part.
            ``(17) Participation in assessments.--(A)(i) Children with 
        disabilities are included in general State and district-wide 
        assessment programs, with appropriate accommodations, where 
        necessary; and
            ``(ii) as appropriate, the State or local educational 
        agency--
                    ``(I) develops guidelines for the participation of 
                children with disabilities in alternate assessments for 
                those children who cannot participate in State and 
                district-wide assessment programs; and
                    ``(II) develops and, beginning no later than July 
                1, 1999, conducts those alternate assessments.
            ``(B) The State educational agency makes available to the 
        public, and reports to the public with the same frequency and 
        in the same detail as it reports on the assessment of 
        nondisabled children--
                    ``(i) the number of children with disabilities 
                participating in regular assessments;
                    ``(ii) the number of those children participating 
                in alternate assessments; and
                    ``(iii) the performance of those children on 
                regular assessments (beginning no later than July 1, 
                1997) and on alternate assessments (no later than July 
                1, 1999), when doing so would be statistically sound 
                and would not result in the disclosure of performance 
                results identifiable to individual children.
            ``(18) Use of funds.--Funds paid to the State under this 
        part--
                    ``(A) will be expended in accordance with all 
                provisions of this part;
                    ``(B) will not be commingled with State funds; and
                    ``(C)(i) except as provided in clause (ii), will be 
                used to supplement State, local, and other Federal 
                funds (including funds not under the direct control of 
                State or local educational agencies) expended for 
                special education and related services, and not to 
                supplant those funds.
                    ``(ii) The Secretary may waive, in part, the 
                requirements of clause (i) if the Secretary determines 
                that the State has provided clear and convincing 
                evidence that all children with disabilities in the 
                State have available a free appropriate public 
                education.
            ``(19) Public participation.--Before the adoption of any 
        policies and procedures needed to comply with this section 
        (including any amendments to those policies and procedures), 
        there are public hearings, adequate notice of the hearings, and 
        an opportunity for comment available to the general public, 
        including individuals with disabilities and parents of children 
        with disabilities.
            ``(20) State advisory panel.--(A) The State has an advisory 
        panel, appointed by the Governor or any other official 
        authorized under State law to make such appointments, that is 
        representative of the State population and that is composed of 
        individuals involved in, or concerned with, the education of 
        children with disabilities, including--
                    ``(i) parents of children with disabilities;
                    ``(ii) individuals with disabilities;
                    ``(iii) teachers;
                    ``(iv) representatives of institutions of higher 
                education that prepare special education and related 
                services personnel;
                    ``(v) State and local education officials;
                    ``(vi) administrators of programs for children with 
                disabilities;
                    ``(vii) representatives of other State agencies 
                involved in the financing or delivery of related 
                services to children with disabilities; and
                    ``(viii) at least one representative of a 
                vocational, community, or business organization 
                concerned with the provision of transition services to 
                children with disabilities.
            ``(B) A majority of the members of the panel are 
        individuals with disabilities or parents of children with 
        disabilities.
            ``(C) The advisory panel--
                    ``(i) advises the State educational agency of unmet 
                needs within the State in the education of children 
                with disabilities;
                    ``(ii) comments publicly on any rules or 
                regulations proposed by the State regarding--
                            ``(I) the education of children with 
                        disabilities; and
                            ``(II) the procedures for distribution of 
                        funds received by the State under this part;
                    ``(iii) advises the State educational agency in 
                developing evaluations and reporting on data to the 
                Secretary under section 618;
                    ``(iv) advises the State educational agency in 
                developing corrective action plans to address findings 
                identified in Federal monitoring reports under this 
                part; and
                    ``(v) advises the State educational agency in 
                developing and implementing policies relating to the 
                coordination of services for children with 
                disabilities.
    ``(b) SEA as Provider of FAPE or Direct Services.--If the State 
educational agency provides free appropriate public education to 
children with disabilities, or provides them direct services, it--
            ``(1) shall comply with any additional requirements of 
        section 613(a) as if it were a local educational agency; and
            ``(2) may use funds that are otherwise available to it 
        under this part to serve those children without regard to 
        section 613(a)(3)(B) relating to excess costs.
    ``(c) Submission of Information; Prior State Plans.--(1) Except as 
provided in paragraph (2), a State that wishes to establish its 
eligibility under this section shall submit to the Secretary such 
information as the Secretary may reasonably require.
    ``(2) If a State has on file with the Secretary policies and 
procedures that demonstrate that it meets any requirement of this 
section, including any policies and procedures filed under this part as 
in effect before enactment of the Individuals with Disabilities 
Education Act Amendments of 1995, the Secretary shall treat the State 
as meeting that requirement.
    ``(d) Secretarial Approval.--(1) If the Secretary determines that a 
State is eligible under this section, the Secretary shall notify the 
State of that determination.
    ``(2) The Secretary shall not finally determine that a State is not 
eligible under this section until after providing the State--
            ``(A) reasonable notice; and
            ``(B) an opportunity for a hearing.
    ``(e) Assistance Under Other Federal Programs.--Nothing in this Act 
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 within the State.''.
    (b)(1) Section 613(d) of the IDEA is redesignated as subsection (f) 
of section 612.
    (2) Section 612(f) of the IDEA, as redesignated by paragraph (1), 
is amended--
            (A) by inserting the subsection heading ``By-Pass for 
        Children in Private Schools.'' after ``(f)'';
            (B) in paragraph (1)--
                    (i) by striking out ``by subsection (a)(4)'' and 
                inserting in lieu thereof ``by subsection (a)(10)''; 
                and
                    (ii) by striking out ``of subsection (a)(4)'' and 
                inserting in lieu thereof ``of that subsection''; and
            (C) in paragraph (2)--
                    (i) in subparagraph (A), by striking out ``which 
                may not exceed'' and all that follows through the end 
                thereof and inserting in lieu thereof ``that does not 
                exceed the amount determined by dividing--
                            (i) the total amount received by the State 
                        under this part; by
                            ``(ii) the number of children with 
                        disabilities served in the prior year as 
                        reported to the Secretary under section 618.''; 
                        and
                            (ii) in subparagraph (C), by striking out 
                        ``subsection (a)(4)'' and inserting in lieu 
                        thereof ``subsection (a)(10)''.
                  local educational agency eligibility

    Sec. 203 (a) Section 613 of the IDEA is amended to read as follows:

                 ``local educational agency eligibility

    ``Sec. 613 (a) Local Educational Agency Eligibility.--A local 
educational agency is eligible for assistance under this part for any 
fiscal year if it demonstrates to the satisfaction of the State 
educational agency that it meets each of the following conditions:
            ``(1) Consistency with state policies.--The local 
        educational agency, in providing for the education of children 
        with disabilities within its jurisdiction, has in effect 
        policies, procedures, and programs that are consistent with the 
        State policies and procedures established under section 612 
        relating to--
                    ``(A) the availability of a free appropriate public 
                education, under section 612(a)(1);
                    ``(B) the goal of providing full educational 
                opportunity to all children with disabilities, under 
                section 612(a)(2);
                    ``(C) child find, under section 612(a)(3);
                    ``(D) individualized education programs, under 
                section 612(a)(4);
                    ``(E) education of children in the least 
                restrictive environment, under section 612(a)(5);
                    ``(F) procedural safeguards, under section 
                612(a)(6);
                    ``(G) evaluation, under section 612(a)(7);
                    ``(H) confidentiality, under section 612(a)(8);
                    ``(I) transition from part H to preschool programs, 
                under section 612(a)(9); and
                    ``(J) children in private schools, under section 
                612(a)(10).
            ``(2) Comprehensive system of personnel development.--The 
        local educational agency has in effect procedures for the 
        implementation and use of the State's comprehensive system of 
        personnel development established under section 612(a)(14) or 
        under the State Improvement Plan developed under part C of this 
        Act, as in effect beginning with fiscal year 1997.
            ``(3) Use of funds.--Funds paid to the local educational 
        agency under this part--
                    ``(A) will be expended in accordance with all 
                applicable provisions of this part;
                    ``(B) will be used only to pay the excess costs of 
                providing special education and related services to 
                children with disabilities;
                    ``(C) will be used to supplement State, local, and 
                other Federal funds and not to supplant those funds;
                    ``(D) will not be used to reduce the level of 
                expenditures for the education of children with 
                disabilities made by the local educational agency from 
                State or local funds below the level of those 
                expenditures for the preceding fiscal year;
                    ``(E) may be used, notwithstanding subparagraph (B) 
                or any other provision of this part, for the costs of 
                special education and related services provided in a 
                regular class to a child with a disability in 
                accordance with the child's individualized education 
                program, even if one or more nondisabled children 
                benefit from those services; and
                    ``(F) may be used, in accordance with subsection 
                (f) and notwithstanding subparagraph (B) or any other 
                provision of this part, to develop and implement a 
                coordinated services system.
            ``(4) Information for state educational agency.--The local 
        educational agency provides the State educational agency 
        information necessary to enable the State educational agency to 
        perform its duties under this part, including, with respect to 
        section 612(a) (16) and (17), information relating to the 
        performance of children with disabilities participating in 
        programs carried out under this part.
            ``(5) Public information.--The local educational agency 
        makes available to parents of children with disabilities and to 
        the general public all documents relating to its eligibility 
        under this part.
            ``(6) Supports for the teacher.--At the start of each 
        school year, and as often as appropriate, the local educational 
        agency considers what supports are needed for each teacher of
         children with disabilities in order to help them implement 
those children's individualized education programs.
    ``(b) Submission of Information; Prior LEA Applications.--(1) 
Except as provided in paragraph (2), a local educational agency that 
wishes to establish its eligibility under this section shall submit to 
the State educational agency information demonstrating that it meets 
the requirements of subsection (a).
    ``(2) If a local educational agency or State agency has on file 
with the State educational agency policies and procedures that meet any 
requirement of this section, including any policies, procedures, or 
applications filed under this part as in effect before enactment of the 
Individuals with Disabilities Education Act Amendments of 1995, the 
State educational agency may treat the agency as meeting that 
requirement.
    ``(c) State Educational Agency Approval.--(1)(A) If the State 
educational agency determines that a local educational agency or State 
agency is eligible under this section, the State educational agency 
shall notify the agency of that determination.
    ``(B) A State educational agency shall not give the notice 
described in subparagraph (A) until the Secretary has notified the 
State educational agency that the State is eligible under section 612.
    ``(2) The State educational agency shall not finally determine that 
a local educational agency or State agency is not eligible under this 
section until after providing the agency--
            ``(A) reasonable notice; and
            ``(B) an opportunity for a hearing.
    ``(d) Local Educational Agency Compliance.--(1) 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 found eligible under this section is failing to comply with any 
requirement described in subsection (a), it shall make no further 
payments to the agency under section 620 until the State educational 
agency is satisfied that the agency is complying with that requirement.
    ``(2) The last sentence of section 616(a) applies to any agency 
that receives a notice from the State educational agency under this 
subsection.
    ``(3) 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) 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 would 
be ineligible under this section because--
            ``(A) it would not be able to establish and maintain 
        programs of sufficient size and scope to effectively meet the 
        needs of children with disabilities; or
            ``(B) it does not qualify for the minimum grant under 
        section 611(d)(1), if the State elects to use its authority 
        under that section.
    ``(2)(A) 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 
equal the sum of the payments that each such local educational agency 
would have received under section 611(c) if they were eligible for such 
payments.
    ``(B) Local educational agencies that establish joint eligibility 
under this subsection shall--
            ``(i) adopt policies and procedures that are consistent 
        with the State's policies and procedures under section 612(a); 
        and
            ``(ii) be jointly responsible for implementing programs 
        receiving assistance under this part.
    ``(C)(i) If an intermediate educational unit is required by State 
law to carry out this part, the joint responsibilities given to local 
educational agencies under subparagraph (B)(ii) shall--
            ``(I) not apply to the administration and disbursement of 
        any payments received by that unit; and
            ``(II) be carried out only by that unit.
    ``(ii) Nothing in clause (i) or elsewhere in this subsection 
relieves an intermediate educational unit of its responsibility to 
provide for the education of children with disabilities in the least 
restrictive environment, as required by section 612(a)(5) and 
subsection (a)(1)(E) of this section.
    ``(f) Coordinated Services System.--(1) A local educational agency 
may use up to five percent of the amount it receives under this part 
for any fiscal year, in combination with other funds (which shall 
include funds other than education funds), to develop and implement a 
coordinated services system designed to improve results for children 
and families, including children with disabilities and their families.
    ``(2) Activities that a local educational agency may carry out 
under this subsection include--
            ``(A) improving the effectiveness and efficiency of service 
        delivery, including developing strategies that promote 
        accountability for results;
            ``(B) service coordination and case management that 
        facilitates the linkage of individualized education programs 
        under this part and individualized family service plans under 
        part H with individualized service plans under multiple Federal 
        and State programs, such as title I of the Rehabilitation Act 
        of 1973 (vocational rehabilitation), title XIX of the Social 
        Security Act (Medicaid), and title XVI of the Social Security 
        Act (supplemental security income);
            ``(C) developing and implementing interagency financing 
        strategies for the provision of education, health, mental 
        health, and social services, including transition services and 
        related services under this Act; and
            ``(D) interagency personnel development for those working 
        on coordinated services.
    ``(3) If a local educational agency is carrying out a coordinated 
services project under title XI of the Elementary and Secondary 
Education Act of 1965 and a coordinated services project under this 
part in the same schools, it shall use funds under this subsection in 
accordance with that title.
    ``(g) Direct Services by the State Educational Agency.--(1) A State 
educational agency shall use the payments that would otherwise have 
been available to a local educational agency or to a State agency to 
provide special education and related services directly to children 
with disabilities residing in the area served by that local agency, or 
for whom that State agency is responsible, if the State educational 
agency determines that the agency--
            ``(A) has not provided the information needed to establish 
        its eligibility under this section;
            ``(B) is unable to establish and maintain programs of free 
        appropriate public education that meet the requirements of 
        subsection (a) of this section;
            ``(C) is unable or unwilling to be consolidated with other 
        local educational agencies in order to establish and maintain 
        such programs; or
            ``(D) has one or more children with disabilities who can 
        best be served by a regional or State program or service 
        delivery system designed to meet the needs of those children.
    ``(2) 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 it considers 
appropriate, so long as the education and services are 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(c) or section 
619(i) 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 finds appropriate.''.
    (b) Section 614A of the IDEA is repealed.
  evaluations, reevaluations, individualized education programs, and 
                         educational placements

    Sec. 204. Section 614 of the IDEA is amended to read as follows:

  ``evaluations reevaluations, individualized education programs, and 
                         educational placements

    ``Sec. 614. (a) Evaluations.--
            ``(1) Initial evaluations.--(A) A State educational agency, 
        other State agency, or local educational agency shall conduct 
        an 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.
            ``(B) An initial evaluation shall consist of procedures 
        to--
                    ``(i) determine whether a child is a child with a 
                disability as defined in section 602(3); and
                    ``(ii) determine the child's educational needs.
            ``(2) Reevaluations.--(A) A local educational agency shall 
        ensure that a reevaluation of each child with a disability is 
        conducted--
                    ``(i) whenever conditions warrant a reevaluation;
                    ``(ii) whenever the child's parent or teacher 
                requests a reevaluation; and
                    ``(iii) at least once every three years.
            ``(B) Each reevaluation shall be conducted in accordance 
        with subsections (b) and (c) of this section.
    ``(b) Evaluation Procedures.--(1) The local educational agency 
shall provide notice to the parents of a child with a disability, in 
accordance with section 615(b)(3), (b)(4), and (c), that describes any 
evaluation procedures it proposes to conduct.
    ``(2) In conducting the evaluation, the local educational agency 
shall--
            ``(A) use a variety of assessment tools and strategies to 
        gather relevant functional and developmental information that 
        may assist in determining whether the child is a child with a 
        disability and the content of the child's individualized 
        education program, including information related to enabling 
        the child to participate and achieve in the general curriculum 
        or, for preschool children, in developmentally appropriate 
        activities; and
            ``(B) not use any single procedure as the sole criterion 
        for determining--
                    ``(i) whether a child is a child with a disability; 
                or
                    ``(ii) an appropriate educational program for the 
                child.
    ``(3) Each local educational agency shall ensure that--
            ``(A) tests and other evaluation materials used to assess a 
        child under this section are--
                    ``(i) selected and administered so as not to be 
                racially or culturally discriminatory; and
                    ``(ii) provided and administered in the child's 
                native language or other mode of communication, unless 
                it is clearly not feasible to do so; and
            ``(B) any standardized tests that are given to the child--
                    ``(i) have been validated for the specific purpose 
                for which they are used;
                    ``(ii) are administered by trained personnel; and
                    ``(iii) are administered in accordance with any 
                instructions provided by their producer.
    ``(c) Additional Requirements for Reevaluations.--(1) As part of 
any reevaluation under this section, the evaluation team shall--
            ``(A) review existing evaluation data on the child, 
        including current classroom-based assessments and teacher 
        observation; and
            ``(B) on the basis of that review, the team's professional 
        judgment, and input from the child's parents, identify what 
        additional data, if any, are needed to determine--
                    ``(i) whether the child continues to have an 
                impairment under section 602 (3) (A) (i);
                    ``(ii) the child's present levels of performance 
                and educational needs; and
                    ``(iii)(I) whether the child continues to need 
                special education and related services; and
                    ``(II) if so, any additions or modifications to the 
                special education and related services to enable the 
                child to meet the objectives set out in the child's 
                individualized education program and to participate, as 
                appropriate, in the general curriculum.
    ``(2) The local educational agency shall administer such tests and 
other evaluation materials as may be needed to produce the data 
identified by the evaluation team under paragraph (1)(B).
    ``(3) If the evaluation team determines that no additional data are 
needed to determine whether the child continues to be a child with a 
disability, the local educational agency--
            ``(A) shall notify the child's parents of--
                    ``(i) that determination and the reasons for it; 
                and
                    ``(ii) their right to request an assessment to 
                determine whether the child continues to be a child 
                with a disability; and
            ``(B) is not required to conduct such an assessment unless 
        requested to by the parents.
    ``(d) Individualized Education Programs.--(1)(A) At the beginning 
of each school year, each public agency shall have in effect, for each 
child with a disability in its jurisdiction, an individualized 
education program (hereafter in this section referred to as an 
``IEP''), as defined in section 602(11).
    ``(B) In the case of a child with a disability aged three, four, or 
five, an individualized family service plan that contains the material 
described in section 676(d), and that is developed in accordance with 
this section, may serve as the child's IEP 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.
    ``(2) Each IEP referred to in paragraph (1) shall be developed in a 
meeting by a team (hereafter in this section referred to as the ``IEP 
team''), composed of--
            ``(A) a representative of the local educational agency who 
        is--
                    ``(i) qualified to provide, or supervise the 
                provision of, specially designed instruction to meet 
                the unique needs of children with disabilities; and
                    ``(ii) knowledgeable about the general curriculum;
            ``(B) at least one special education provider;
            ``(C) at least one regular education teacher, if the 
        student is, or may be, participating in the regular education 
        environment;
            ``(D) the child's parents;
            ``(E) whenever appropriate, the child; and
            ``(F) other individuals, at the discretion of the parent or 
        the agency.
    ``(3) In developing an IEP, the IEP team shall--
            ``(A) consider the child's strengths and the parents' 
        concerns for enhancing their child's education;
            ``(B) consider the results of the initial evaluation or 
        most recent reevaluation;
            ``(C) in the case of a child whose behavior impedes his or 
        her learning or that of others, consider strategies, including 
        behavioral management plans, to address that behavior;
            ``(D) in the case of a child with limited English 
        proficiency, consider the language needs of the child as they 
        relate to the child's IEP;
            ``(E) in the case of a child who is blind or visually 
        impaired, consider whether the child needs instruction in 
        braille or in the use of braille; and
            ``(F) in the case of a child who is deaf or hard of 
        hearing, consider the communication needs of the child.
    ``(4) The local educational agency shall ensure that the IEP team--
            ``(A) reviews each IEP at least once a year to determine 
        whether the annual objectives for the child are being achieved; 
        and
            ``(B) revises the IEP to address any lack of expected 
        progress toward the annual objectives and in the general 
        curriculum, where appropriate; the results of any
         reevaluation conducted under this section; information about 
the child provided to the parents under section 602(11)(G)(ii); the 
child's anticipated needs; or as otherwise appropriate.
    ``(5) If a participating agency, other than the local educational 
agency, fails to provide the transition services described in the IEP 
in accordance with section 602(11)(F)(ii), the local educational agency 
shall reconvene the IEP team to identify alternative strategies to meet 
the transition objectives for the student set out in that program.
    ``(e) Placements.--Each public 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.''.

                         procedural safeguards

    Sec. 205. (a) Section 615 of the IDEA is amended--
            (1) by redesignating subsections (c) through (f) as 
        subsections (f) through (i), respectively; and
            (2) by redesignating subsection (b)(2) as subsection (e).
    (b) Section 615(a) of the IDEA is amended--
            (1) by striking out ``Any State educational agency, any 
        local educational agency, and any intermediate educational unit 
        which'' and inserting in lieu thereof ``Any State educational 
        agency or local educational agency that'';
            (2) by striking out ``subsection (b) through subsection (e) 
        of'';
            (3) by striking out ``or guardians''; and
            (4) by striking out ``and units''.
    (c) Section 615(b) of the IDEA is amended--
            (1) by striking out the paragraph designation ``(1)'';
            (2) by redesignating subparagraphs (A) through (E) as 
        paragraphs (1) through (4) and (6), respectively;
            (3) in paragraph (1), as so redesignated, by striking out 
        ``our guardian'';
            (4) in paragraph (2), as redesignated by paragraph (2)--
                    (A) by striking out ``or guardian'' each place it 
                appears;
                    (B) by striking out ``unavailable'' and inserting 
                in lieu thereof ``the agency cannot, after reasonable 
                efforts, locate the parents'';
                    (C) by inserting ``the'' before ``local educational 
                agency''; and
                    (D) by striking out ``intermediate educational 
                unit'' and inserting in lieu thereof ``any other agency 
                that is'';
            (5) in paragraph (3), as redesignated by paragraph (2)--
                    (A) by striking out ``our guardian'';
                    (B) by striking out ``or unit'';
                    (C) by inserting a comma and ``in accordance with 
                subsection (c),'' after ``of the child''; and
                    (D) by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B);
            (6) in paragraph (4), as redesignated by paragraph (2)--
                    (A) by striking out ``clause (C)'' and all that 
                follows through ``or guardian,'' and inserting in lieu 
                thereof ``paragraph (3) and subsection (c) is'';
                    (B) by striking out ``or guardian's''; and
                    (C) by striking out ``so,'' and all that follows 
                through the end thereof and inserting in lieu thereof 
                ``so;'' and
            (7) by inserting after paragraph (4) a new paragraph (5) to 
        read as follows:
            ``(5) an opportunity for mediation in accordance with 
        subsection (d); and''.
    (d) Section 615 of the IDEA is further amended by inserting, after 
subsection (b), new subsections (c) and (d) to read as follows:
    ``(c) Content of Notice.--
            ``(1) Basic notice.--The notice required by subsection 
        (b)(3) shall--
                    ``(A) include--
                            ``(i) a description of the action proposed 
                        or refused by the agency;
                            (ii) an explanation of why the agency 
                        proposed or refuses to take the action; and
                            ``(iii) a description of any other options 
                        that the agency considered and the reasons why 
                        those options were rejected;
                    ``(B) describe each evaluation procedure, test, 
                record, or report the agency used as a basis for the 
                proposed or refused action;
                    ``(C) describe any other factors that are relevant 
                to the agency's proposal or refusal;
                    ``(D) include a full explanation of the procedural 
                safeguards available under this section, and under the 
                Secretary's regulations, relating to independent 
                educational evaluations, notice, parental consent, 
                mediation, and the child's placement during the 
                pendency of due-process proceedings;
                    ``(E) include at least a brief summary of the 
                procedural safeguards under this section relating to 
                due-process hearings, State-level appeals (if 
                applicable in that State), civil actions, and attorney 
                fees; and
                    ``(F) include a statement that the agency will 
                provide a full explanation of the procedural safeguards 
                available to parents under this section, and under the 
                Secretary's regulations, relating to--
                            ``(i) access to educational records, 
                        whenever requested by the parents; and
                            ``(ii) the subjects described in 
                        subparagraph (E) whenever the parents request 
                        that notice or present a complaint under 
                        subsection (b)(6).
            ``(2) Supplemental notices.--Each State educational agency 
        and local educational agency that receives assistance under 
        this part shall provide the notices described in paragraph 
        (1)(F) in the situations described in that provision.
    ``(d) Mediation.--(1) Whenever a hearing has been requested on any 
matter in dispute under this section and the dispute has not been 
finally resolved, the parents shall be offered an opportunity for 
mediation to resolve the dispute.
    ``(2) Each State educational agency shall--
            ``(A) ensure that impartial mediation is provided at no 
        cost to parents when requested under paragraph (1);
            ``(B) compile and maintain a list of individuals who are--
                    ``(i) trained in mediation; and
                    ``(ii) knowledgeable about--
                            ``(I) the educational needs of children 
                        with disabilities; and
                            ``(II) applicable statutes and regulations 
                        relating to the educational rights of those 
                        children, including the requirements of this 
                        part and the Secretary's regulations under this 
                        part; and
            ``(C) ensure that mediators are appointed from that list.
    ``(3) No statements made by either party during mediation under 
this subsection shall be offered or used as evidence in any hearing, 
review of a hearing decision, or civil action under this section.
    ``(4) A public agency may not use mediation to deny or delay the 
parents' right to a due-process hearing under subsection (e) or to deny 
the parents any other rights afforded under this part.
    ``(5) Mediation may be ended--
            ``(A) by the parents at any time; and
            ``(B) by the participating agency at any time after the 
        first mediation session.
    ``(6) The mediator shall ensure that any agreement that is reached 
as a result of mediation is put in writing.''.
    (e) Subsection (e) of section 615 of the IDEA, as redesignated by 
subsection (a)(2), is amended--
            (1) by striking out ``paragraph (1) of this subsection,'' 
        and inserting in lieu thereof ``subsection (b)(6)'';
            (2) by striking out ``or guardian'';
            (3) by striking out ``or intermediate educational unit'';
            (4) by striking out ``this paragraph'' and inserting in 
        lieu thereof ``this subsection''; and
            (5) by striking out ``or unit''.
    (f) Subsection (f) of section 615 of the IDEA, as redesignated by 
subsection (a)(1), is amended--
            (1) by striking out ``paragraph (2) of subsection (b)'' and 
        inserting in lieu thereof ``subsection (e)''; and
            (2) by striking out ``or an intermediate educational 
        unit''.
    (g) Subsection (g) of section 615 of the IDEA, as redesignated by 
subsection (a)(1), is amended--
            (1) by striking out ``subsections (b) and (c)'' and 
        inserting in lieu thereof ``subsections (e) and (f)''; and
            (2) by striking out ``section 613(a)(12)'' and inserting in 
        lieu thereof ``section 612(a)(20)''.
    (h) Subsection (h) of section 615 of the IDEA, as redesignated by 
subsection (a)(1), is amended--
            (1) in paragraph (1)--
                    (A) by striking out ``paragraph (2) of subsection 
                (b)'' and inserting in lieu thereof ``subsection (e)''; 
                and
                    (B) by striking out ``subsection (c)'' each place 
                it appears and inserting in lieu thereof ``subsection 
                (f)'';
            (2) in paragraph (2)--
                    (A) by striking out ``subsection (b)'' and 
                inserting in lieu thereof ``subsection (e)''; and
                    (B) by striking out ``subsection (c)'' each place 
                it appears and inserting in lieu thereof ``subsection 
                (f)'';
            (3) in paragraph (3)--
                    (A) in subparagraph (A)--
                            (i) by striking out ``subparagraph (B)'' 
                        and inserting in lieu thereof ``subparagraphs 
                        (B) and (C)''; and
                            (ii) by striking out ``or guardian'' each 
                        place it appears;
                    (B) in subparagraph (B)--
                            (i) in clause (ii), by striking out 
                        ``individuals described in section 602(a)(20)'' 
                        and inserting in lieu thereof ``IEP team 
                        described in section 614(d)(2)'';
                            (ii) in clause (iii)--
                                    (I) by striking out ``or 
                                guardian'';
                                    (II) by striking out ``paragraph 
                                (2) of subsection (b)'' and inserting 
                                in lieu thereof ``subsection (e)''; and
                                    (III) by inserting ``State or'' 
                                before ``local educational agency''; 
                                and
                            (iii) in clause (iv)--
                                    (I) by striking out ``a firearm'' 
                                and inserting in lieu thereof ``a 
                                dangerous weapon''; and
                                    (II) by striking out ``section 
                                921'' and inserting in lieu thereof 
                                ``section 930(g)(2)''; and
                    (C) by adding at the end thereof a new subparagraph 
                (C) to read as follows:
                    ``(C)(i) A hearing officer under this section may, 
                to the same extent as a court, order a change in the 
                placement of a child with a disability to an interim 
                alternative educational setting for not more than 45 
                days, if the public agency demonstrates, by substantial 
                evidence, that maintaining the child in his or her 
                current placement is substantially likely to result in 
                injury to himself or herself, or to others.
                    ``(ii) The State or local educational agency shall 
                arrange for an expedited hearing in any case described 
                in clause (i).
                    ``(iii) If a parent of a child described in clause 
                (i) requests a hearing pursuant to subsection (e), the 
                child shall remain in the alternative educational 
                setting described in that clause during the pendency of 
                any proceedings under this section, unless the parents 
                and the State or local educational agency agree 
                otherwise.''; and
            (4) in paragraph (4)--
                    (A) by striking out ``or guardian'' each place it 
                appears; and
                    (B) in subparagraph (G), by striking out ``section 
                615 of this Act'' and inserting in lieu thereof ``this 
                section''.
    (i) Subsection (i) of section 615 of the IDEA, as redesignated by 
subsection (a)(1), is amended by striking out ``subsections (b)(2) and 
(c)'' and inserting in lieu thereof ``subsections (e) and (f)''.
    (j) Section 615 of the IDEA is further amended by adding at the end 
thereof a new subsection (j) to read as follows:
    ``(j) Transfer of Parental Rights at Age of Majority.--Any State 
that receives funds under this part may provide that, when
 an individual with a disability reaches the age of majority under 
State law--
            ``(1) the public agency shall provide any notice required 
        by this section to both the individual and the parents;
            ``(2) all other rights accorded to parents under this part 
        transfer to the child; and
            ``(3) the agency shall notify the individual and the 
        parents of the transfer of rights.''.
    (k) Section 314(a)(2) of the Improving America's Schools Act of 
1994 is repealed.

                    withholding and judicial review

    Sec. 206. (a) Section 616(a) of the IDEA is amended--
            (1) in the first sentence thereof--
                    (A) by striking out ``or intermediate educational 
                unit'' and inserting in lieu thereof ``or State 
                agency'';
                    (B) in paragraph (1)--
                            (i) by inserting ``by the State'' after 
                        ``failure''; and
                            (ii) by striking out ``section 612 or 
                        section 613'' and inserting in lieu thereof 
                        ``this part''; and
                    (C) by striking out paragraph (2) and all that 
                follows through the end of that sentence and inserting 
                in lieu thereof the following:
            ``(2) that there is a failure to comply with any condition 
        of a local educational agency's or State agency's eligibility 
        under this part, the Secretary shall, after notifying the State 
        educational agency, withhold any further payments to the State 
        under this part.'';
            (2) in the second sentence thereof--
                    (A) by striking out ``clause (A) or clause (B)'' 
                and inserting in lieu thereof ``the previous 
                sentence,'';
                    (B) by striking out ``under the State plan''; and
                    (C) by striking out ``intermediate educational 
                units'' and inserting in lieu thereof ``State 
                agencies'';
            (3) in the third sentence thereof--
                    (A) by striking out ``or under'' and all that 
                follows through ``with disabilities''; and
                    (B) by striking out ``intermediate educational 
                units'' and inserting in lieu thereof ``State 
                agencies''; and
            (4) in the fourth sentence thereof--
                    (A) by striking out ``State educational agency, 
                local educational agency, or intermediate educational 
                unit'' and inserting in lieu thereof ``State 
                educational agency, State agency, or local educational 
                agency''; and
                    (B) by striking out ``or unit''.
    (b) Section 616(b)(1) of the IDEA is amended by striking out 
``State plan submitted under section 613'' and inserting in lieu 
thereof ``eligibility under section 612''.

                             administration

    Sec. 207. (a) Section 617(a) of the Individuals with Disabilities 
Education Act is amended to read as follows:
    ``(a) Secretary's Responsibilities.--In carrying out this part, the 
Secretary shall--
            ``(1) cooperate with, and (directly or by grant or 
        contract) furnish technical assistance necessary to, the State 
        in matters relating to--
                    ``(A) the education of children with disabilities;
                    ``(B) carrying out this part; and
            ``(2) provide short-term training programs and institutes; 
        and
            ``(3) disseminate information about, and otherwise promote, 
        the education of all children with disabilities in the 
        States.''.
    (b) Section 617(c) of the IDEA is amended by striking out ``section 
438'' and inserting in lieu thereof ``section 444''.
    (c) Section 617(d) of the IDEA is amended by striking out 
``required by subsections'' and all that follows through ``this 
subsection'' and inserting in lieu thereof ``authorized by subsection 
(a) of this section, section 618, and part E of this Act''.

                   evaluation and program information

    Sec. 208. (a) Fiscal Year 1996.--Section 618 of the IDEA is 
amended--
            (1) in subsection (e)(2), by striking out ``1994'' and 
        inserting in lieu thereof ``1996''; and
            (2) in subsection (h), by striking out ``1994'' and 
        inserting in lieu thereof ``1996''.
    (b) Fiscal Years Beginning With Fiscal Year 1997.--Effective on 
October 1, 1996, section 618 of the IDEA is amended to read as follows:

                         ``program information

    ``Sec. 618. Each State that receives assistance under this part, 
and the Secretary of the Interior, shall provide data each year to the 
Secretary on--
            ``(1) the number of children who are receiving--
                    ``(A) a free appropriate public education;
                    ``(B) early intervention services because--
                            ``(i) they have developmental delays; or
                            ``(ii) they have a diagnosed physical or 
                        mental condition that has a high probability of 
                        resulting in developmental delay; or
                    ``(C) early intervention services because they are 
                at risk of having substantial developmental delays if 
                those services are not provided and--
                            ``(i) they are being served as infants and 
                        toddlers with disabilities under part H; or
                            ``(ii) they are being served as at-risk 
                        infants and toddlers under section 677;
            ``(2) the types of early intervention services provided, 
        which may be based on a sampling of data;
            ``(3) the number of children with disabilities--
                    ``(A) participating in regular education programs;
                    ``(B) in separate classes, separate schools or 
                facilities, or public or private residential 
                facilities;
                    ``(C) who have been otherwise removed from the 
                regular education environment; and
                    ``(D) in various early intervention settings;
            ``(4) for each year of age from 14 through 21, the number 
        of children with disabilities who, because of program 
        completion or for other reasons, stopped receiving special 
        education;
            ``(5) the number of children with disabilities, from birth 
        through two, who, because of program completion or for other 
        reasons, stopped receiving early intervention services; and
            ``(6) other information required by the Secretary.''.

                            preschool grants

    Sec. 209. Section 619 of the Individuals with Disabilities 
Education Act is amended to read as follows:

                           ``preschool grants

    ``Sec. 619. (a) Purpose of Grants.--The Secretary shall make grants 
under this section to assist States and the outlying areas to provide 
special education and related services, in accordance with this part--
            ``(1) to children with disabilities aged three, four, and 
        five; and
            ``(2) at the State's discretion, to 2-year-old children 
        with disabilities who will turn three during the school year.
    ``(b) Eligibility.--A State or outlying area is eligible for a 
grant under this section if it--
            ``(1) has established its eligibility under section 612; 
        and
            ``(2) makes a free appropriate public education available 
        to all children with disabilities, aged three through five, 
        residing in its jurisdiction.
    ``(c) Hold-Harmless Payments.--(1) From the amount appropriated for 
any fiscal year under subsection (m), the Secretary shall allocate to 
each eligible State and outlying area the amount it received for fiscal 
year 1995 under this section, as then in effect.
    ``(2)(A) If the sums available to make allocations to States and 
outlying areas under this section are insufficient to make the full 
allocations described in paragraph (1), the Secretary shall--
            ``(i) first, reduce the allocation of any State whose 
        number of children aged three through five is less than the 
        number of those children in fiscal year 1995 by the same 
        percentage by which that number declined from 1995; and
            ``(ii) second, if necessary, ratably reduce the allocations 
        of all States, including those allocations reduced under clause 
        (i).
    ``(B) If additional funds become available to make allocations 
under this section, the allocations that were reduced under 
subparagraph (A) shall be increased on the same basis as they were 
reduced.
    ``(d) Allocation of Remaining Funds.--(1) After making allocations 
under subsection (c), the Secretary shall allocate any remaining funds 
to eligible States and outlying areas on the basis of their relative 
population of children aged 3 through 5.
    ``(2) Notwithstanding any other provision of this section, the 
percentage of funds appropriated under this section for any fiscal year 
that is allocated to the Commonwealth of Puerto Rico shall not exceed 
the percentage allocated to Puerto Rico of all funds appropriated under 
this section for fiscal year 1995, as then in effect.
    ``(e) Determination of Population Figures.--For the purpose of 
making grants under this section, the Secretary shall use the most 
recent population data that are available and satisfactory to the 
Secretary.
    ``(f) State-Level Activities.--
            (1) General.--Each State may retain up to 25 percent of the 
        grant it receives under this section for administration and 
        other State-level activities in accordance with subsections (g) 
        and (h).
            ``(2) Inapplicability of certain requirements.--A State may 
        use funds it retains under paragraph (1) without regard to--
                    ``(A) the prohibition on commingling of funds in 
                section 612(a)(18)(B); and
                    ``(B) the prohibition on supplanting other funds in 
                section 612(a)(18)(C)(i).
    ``(g) State Administration.--(1) Each State and outlying area may 
use up to five percent of the grant it receives under this section for 
any fiscal year for the purpose of administering this part, including 
the coordination of activities under this part with, and providing 
technical assistance to, other programs that provide services to 
children with disabilities.
    ``(2) Funds described in paragraph (1) may also be used for the 
administration of part H of this Act, if the State educational agency 
is the lead agency for the State under that part.
    ``(h) Other State-Level Activities.--Each State shall use any funds 
it retains under subsection (f) and does not use for administration 
under subsection (g)--
            ``(1) for support services (including establishing and 
        implementing the mediation process required by section 615(d)), 
        which may benefit children with disabilities younger than three 
        and older than five as long as those services also benefit 
        children with disabilities aged three through five;
            ``(2) for direct services for children eligible for 
        services under this section;
            ``(3) to develop a State Improvement Plan under part C;
            ``(4) for activities at the State and local levels to meet 
        the performance goals established by the State under section 
        612(a)(16) and to support implementation of the State 
        Improvement Plan under part C if the State receives funds under 
        that part; or
            ``(5) to supplement other funds used to develop and 
        implement a Statewide coordinated services system designed to 
        improve results for children and families, including children 
        with disabilities and their families, but not to exceed one 
        percent of the amount received by the State under this section.
    ``(i) Subgrants to Local Educational Agencies.--
            (1) Requirement to make subgrants.--Each State that 
        receives a grant under this section for any fiscal year shall 
        distribute at least 75 percent of the grant funds to local 
        educational agencies in the State, and to State agencies that 
        received funds under section 614A(a) for fiscal year 1995, that 
        have established their eligibility under section 613 of this 
        part.
            ``(2) Methods of distribution.--A State may distribute 
        funds under paragraph (1) on the basis of--
                    ``(A) population;
                    ``(B) school enrollment;
                    ``(C) numbers of children with disabilities aged 
                three through five receiving a free appropriate public 
                education;
                    ``(D) allocations for previous fiscal years;
                    ``(E) any two or more of the factors described in 
                subparagraphs (A) through (D); or
                    ``(F) poverty, in combination with one or more of 
                the factors described in subparagraphs (A) through (D).
    ``(j) Part H Inapplicable.--Part H of this Act does not apply to 
any child with a disability receiving a free appropriate public 
education, in accordance with this part, with funds received under this 
section.
    ``(k) Outlying Areas.--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 section.
    ``(l) Definition of `State'.--For the purpose of this section, the 
term `State' means each of the 50 States, the District of Columbia, and 
the Commonwealth of Puerto Rico.
    ``(m) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated such sums as 
may be necessary.''.

                                payments

    Sec. 210. Section 620 of the IDEA is amended to read as follows:

                               ``payments

    ``Sec. 620. (a) Payments to States.--The Secretary shall make 
payments to each State that has demonstrated its eligibility under 
section 612, in amounts that the Secretary determines under sections 
611 and 619.
    ``(b) Payments to Local Educational Agencies and State Agencies.--
Any State educational agency receiving payments under this section 
shall distribute payments to local educational agencies (and to State 
agencies that received funds under section 614A for fiscal year 1995) 
in the State that the State educational agency has determined are 
eligible under section 613, in amounts determined under sections 611 
and 619.''.

                   TITLE III--DISCRETIONARY PROGRAMS

                           one-year extension

    Sec. 301. (a) Part C--Centers and Services To Meet Special Needs of 
Individuals With Disabilities.--Part C of the IDEA is amended--
            (1) in section 625(a)(6)--
                    (A) in the second sentence thereof, by striking out 
                ``1994'' and inserting in lieu thereof ``1996''; and
                    (B) by striking out the third sentence thereof; and
            (2) in each of subsections (a) through (h) of section 628, 
        by striking out ``fiscal year 1994'' and inserting in lieu 
        thereof ``each of the fiscal years 1994 through 1996''.
    (b) Part D--Training Personnel for the Education of Individuals 
With Disabilities.--(1) Each of paragraphs (1) through (4) of section 
635(a) of the IDEA is amended by striking out ``fiscal year 1994'' and 
inserting in lieu thereof ``each of the fiscal years 1994 through 
1996''.
    (2) Section 635(a) of the IDEA is further amended in each of 
paragraphs (1) and (3) by striking out ``631(d)'' and inserting in lieu 
thereof ``631(e)''.
    (c) Part E--Research in the Education of Individuals With 
Disabilities.--Section 643 of the IDEA is amended by striking out 
``fiscal year 1994'' and inserting in lieu thereof ``each of the fiscal 
years 1994 through 1996''.
    (d) Part F--Instructional Media for Individuals With 
Disabilities.--Section 653 of the IDEA is amended by striking out 
``fiscal year 1994'' and inserting in lieu thereof ``each of the fiscal 
years 1994 through 1996''.
    (e) Part G--Technology, Educational Media, and Materials for 
Individuals With Disabilities.--Section 662 of the IDEA is amended by 
striking out ``fiscal year 1994'' and inserting in lieu thereof ``each 
of the fiscal years 1994 through 1996''.
    (f) Cross-References.--For the purpose of carrying out parts C 
through G of the IDEA with funds appropriated for fiscal year 1996, 
references in those parts to any provision of parts A, B, or H of the 
IDEA shall be regarded as references to those provisions as in effect 
before enactment of this Act.

               reauthorization of discretionary programs

    Sec. 302. Effective October 1, 1996, parts C through G of the IDEA 
are amended to read as follows:

                      ``Part C--State Improvement

                               ``findings

    ``Sec. 621. The Congress finds as follows:
            ``(1) Many of the critical barriers to improving 
        educational results for children with disabilities are caused 
        by statewide and systemic problems, such as the exclusion of 
        children with disabilities from Statewide assessments, lack of 
        access to regular education programs, and finance systems that 
        promote inappropriate placements;
            ``(2) Previous efforts to improve the education of children 
        with disabilities have achieved some good results. However, 
        federally funded efforts have focused either on specific 
        disabilities or programs and have not focused on improvement of 
        results for children with all disabilities at all age levels. 
        Further, most Federal categorical program resources have not 
        concentrated on State and local agencies' efforts to improve 
        implementation of parts B and H of this Act.
            ``(3) State and local agencies are generally in the best 
        position to develop their own comprehensive strategies for 
        improving results for children with disabilities in the context 
        of their overall State education improvement efforts.
            ``(4) Educational systems that effectively serve children 
        with disabilities--
                    ``(A) have goals for the performance of children 
                with disabilities and performance indicators to measure 
                progress toward those goals; identify the needs that 
                must be addressed to meet those goals; and develop 
                effective strategies to address those needs;
                    ``(B) consider the needs of all students, including 
                students with disabilities, in planning, evaluation, 
                and educational reform activities such as those 
                supported under titles I and II of the Elementary and 
                Secondary Education Act of 1965, the Goals 2000: 
                Educate America Act, and the School-to-Work 
                Opportunities Act of 1994;
                    ``(C) have adequate numbers of appropriately 
                prepared personnel with the skills and knowledge 
                necessary to enable children with disabilities to meet 
                developmental goals and, to the maximum extent 
                possible, those challenging standards that have been 
                established for all children;
                    ``(D) hold school districts and schools accountable 
                for the academic progress of children with disabilities 
                in the same manner as they do for all children;
                    ``(E) develop IEPs that reflect high expectations 
                and promote access to the general curriculum for 
                children with disabilities;
                    ``(F) support family involvement to improve 
                learning;
                    ``(G) have financing systems that encourage 
                prevention and early intervention and discourage 
                inappropriately placing students in restrictive 
                settings;
                    ``(H) support successful transition from early 
                intervention services to preschool education, from 
                preschool education to elementary school, and from 
                secondary school to adult life;
                    ``(I) provide for the participation of children 
                with disabilities, including those with significant and 
                multiple disabilities, in the least restrictive 
                environments;
                    ``(J) promote the use of special education as 
                services and supports for students in the least 
                restrictive environment rather than as a place to send 
                children;
                    ``(K) have unified education system approaches that 
                promote individualization, flexibility, and 
                responsibility for all children at the school-building 
                level;
                    ``(L) coordinate education services with each other 
                and with health, social, and other services (including 
                mental health and vocational rehabilitation services), 
                and with the juvenile justice system, to meet the needs 
                of children with disabilities and their families; and
                    ``(M) provide technical assistance to school 
                districts and schools on how to improve results for 
                children with disabilities in the context of 
                comprehensive technical assistance efforts and ensure 
                that research and other knowledge regarding best 
                practices reaches personnel serving children with 
                disabilities;
            ``(5) the principles of professional development 
        disseminated by the Secretary in 1995 provide useful guidance 
        for States and local educational agencies in their efforts to 
        provide high-quality professional development for individuals 
        who work with children with disabilities; and
            ``(6) peer review of State efforts to address the needs of 
        children with disabilities can provide both an incentive for 
        systems change and a valuable resource for information that 
        States may draw on in seeking solutions to problems in serving 
        those children.
                               ``purpose

    ``Sec. 622. The purpose of this part is to assist States in 
reforming and improving systems for providing educational and early 
intervention services, including their systems for professional 
development, to help children with disabilities--
            ``(1) meet developmental goals and, to the maximum extent 
        possible, those challenging standards that have been 
        established for all children; and
            ``(2) be prepared to lead productive, independent adult 
        lives to the maximum extent possible.

                         ``eligible recipients

    ``Sec. 623. Each State educational agency may apply for a grant 
under this part.

                       ``state improvement plans

    ``Sec. 624. (a) General.--Any State desiring to receive a grant 
under this part shall submit to the Secretary a State Improvement Plan 
that--
            ``(1) is developed in consultation with parents of children 
        with disabilities; parents of non-disabled children; 
        individuals with disabilities; organizations representing 
        individuals with disabilities and their parents; early 
        intervention agencies; local educational agencies; general and 
        special education teachers; early intervention and related 
        services providers; administrators of general and special 
        education; individuals knowledgeable about vocational 
        education; the State agency for higher education; institutions 
        of higher education and schools of education; the State 
        vocational rehabilitation agency; public agencies with 
        jurisdiction in the areas of health, mental health, social 
        services, and juvenile justice; community-based and other 
        nonprofit organizations; the State advisory panel established 
        under part B; the State Interagency Coordinating Council 
        established under part H; and interested members of the general 
        public; and
            ``(2) is integrated, to the maximum extent possible, with 
        State plans under title III of the Goals 2000: Educate America 
        Act, the School-to-Work Opportunities Act of 1994, the 
        Elementary and Secondary Education Act of 1965, the 
        Rehabilitation Act of 1973, and other Act, as appropriate.
    ``(b) Determining Child and Program Needs.--(1) Each State 
Improvement Plan shall--
            ``(A) identify those critical aspects of early 
        intervention, general education, and special education programs 
        (including professional development, based on an assessment of 
        State and local needs) that must be improved to enable children 
        with disabilities to meet the goals established by the State 
        under section 612(a)(16); and
            ``(B) address the major findings of the Secretary's most 
        recent State compliance reviews as they relate to improving 
        results for children with disabilities.
    ``(2) To meet the requirements of paragraph (1)(A), the State 
Improvement Plan shall include at least--
            ``(A) an analysis of all information, reasonably available 
        to the State, on the performance of children with disabilities 
        in the State, including--
                    ``(i) their performance on State assessments and 
                other performance indicators established for all 
                children, including drop-out rates and graduation 
                rates;
                    ``(ii) their participation in postsecondary 
                education and employment; and
                    ``(iii) how their performance compares to that of 
                other children;
            ``(B) an analysis of State and local needs for professional 
        development for personnel to serve children with disabilities 
        that includes, at a minimum--
                    ``(i) the State's assessment of personnel needs 
                under the Elementary and Secondary Education Act of 
                1965; and
                    (ii) relevant information on current and 
                anticipated personnel shortages, and on the extent of 
                certification or retraining necessary for those 
                providing services to children with disabilities; and
            ``(C) an analysis of all other information, reasonably 
        available to the State, on the effectiveness of its systems of 
        early intervention, special education, and general education in 
        meeting the needs of children with disabilities, including the 
        extent to which children with disabilities are receiving a free 
        appropriate public education with appropriate
         supplementary aids and services in regular education 
environments.
    ``(c) Improvement Strategies.--Each State improvement plan shall--
            ``(1) describe the strategies the State will use to address 
        the needs identified under subsection (b), including--
                    ``(A) how it will hold school districts and schools 
                accountable for educational progress of children with 
                disabilities;
                    ``(B) how it will provide high-quality technical 
                assistance to school districts and schools to improve 
                results for children with disabilities in the context 
                of comprehensive technical assistance efforts and 
                ensure that research and other knowledge regarding best 
                practices reaches personnel servicing children with 
                disabilities;
                    ``(C) if the State is developing a statewide system 
                of coordinated services under section 611(b)(3)(F), how 
                it will implement and evaluate the results of that 
                effort;
                    ``(D) how it will change State policies and 
                procedures to address systemic barriers to improving 
                results for students with disabilities, such as--
                            ``(i) a lack of knowledge about best 
                        practices;
                            ``(ii) the failure to provide smooth 
                        transitions from one type of service or program 
                        to the next, such as from pre-school to school, 
                        or from school to employment;
                            ``(iii) the lack of coordinated services;
                            ``(iv) criteria and procedures for 
                        determining eligibility for special education;
                            ``(v) a dual general education-special 
                        education administrative structure;
                            ``(vi) the exclusion of children with 
                        disabilities from reforms in general education;
                            ``(vii) credentialing of teachers and other 
                        personnel; and
                            ``(viii) financing of general and special 
                        education;
                    ``(E) how it will address the identified needs for 
                pre-service and in-service preparation to ensure that 
                all personnel who will work with children with 
                disabilities (including both professional and 
                paraprofessional personnel who provide or will provide 
                early intervention services, special education, regular 
                education, or related services) have the skills and 
                knowledge necessary to enable children with 
                disabilities to meet developmental goals and, to the 
                maximum extent possible, those challenging standards 
                that have been established for all children, and be 
                prepared to lead productive, independent adult lives to 
                the maximum extent possible, including a description of 
                how--
                            ``(i) the State will work with institutions 
                        of higher education and other entities that 
                        prepare personnel who work with children with 
                        disabilities on both a pre-service and in-
                        service basis to ensure that those institutions 
                        and entities develop the capacity to support 
                        sustained, intensive, and high-quality 
                        professional development programs;
                            ``(ii) the State's requirements for 
                        licensure of teachers and administrators, 
                        including certification and recertification, 
                        support an adequate supply of personnel with 
                        the necessary skills and knowledge (including, 
                        where appropriate, strategies for developing 
                        reciprocal certification agreements and common 
                        certification requirements with other States);
                            ``(iii) the State will address State and 
                        local needs for personnel who meet 
                        certification, licensing, or other State 
                        personnel requirements;
                            ``(iv) the State will address State and 
                        local needs for in-service education of early 
                        intervention, general and special education, 
                        and related services personnel;
                            ``(v) the State will prepare special 
                        education and general education personnel with 
                        the content knowledge and collaborative skills 
                        needed to appropriately help children with 
                        disabilities achieve to challenging standards; 
                        and
                            ``(vi) significant knowledge derived from 
                        education research and other sources, as well 
                        as promising practices, materials, and 
                        technology, will be used in the professional 
                        development of teachers, administrators, and 
                        early intervention and related services 
                        personnel;
                    ``(F) strategies that will address systemic 
                problems identified in Federal compliance reviews, 
                including shortages of qualified personnel; and
                    ``(G) how the State will assess, on a regular 
                basis, the extent to which the strategies implemented 
                under this part have been effective in meeting the 
                performance goals established by the State under 
                section 612(a)(16);
            ``(2) describe the strategies and activities to be 
        supported under this part and how they will be coordinated 
        with--
                    ``(A) other activities conducted with Federal 
                funds, especially those received under parts B and H of 
                this Act, titles I and II of the Elementary and 
                Secondary Education Act of 1965, the Goals 2000: 
                Educate America Act, the School-to-Work Opportunities 
                Act of 1994, the Head Start Act, and the Rehabilitation 
                Act of 1973;
                    ``(B) other programs supported by State and local 
                funds;
                    ``(C) where appropriate, resources from business 
                and industry, to develop strategies to meet the 
                employment needs of disabled youth; and
                    ``(D) other private-sector resources; and
            ``(3) describe how the State will address improving results 
        for students with disabilities in the areas of greatest need, 
        including the State's inner-city and rural areas with the 
        greatest needs as determined by the State in its assessment 
        under subsection (b).
    ``(d) Reporting Procedures.--Each State educational agency that 
receives a grant under this part shall submit a performance report to 
the Secretary every two years that--
            ``(1) describes the progress of the State and of children 
        with disabilities in relation to the performance goals and 
        performance indicators established under section 612(a)(16);
            ``(2) analyzes the effectiveness of the State's strategies 
        in meeting those goals; and
            ``(3) identifies the strategies that need revision in order 
        to improve its performance.
    ``(e) Peer Review and Plan Approval.--
            ``(1) In general.--The Secretary shall approve a State 
        Improvement Plan under this section if it--
                    ``(A) meets the requirements of this section; and
                    ``(B) holds reasonable promise of enabling the 
                State to meet its performance goals under section 
                612(a)(16).
            ``(2) Peer review.--(A) In reviewing State Improvement 
        Plans under this section, the Secretary shall obtain the advice 
        of non-Federal experts (including individuals with disabilities 
        and individuals knowledgeable about the needs of children from 
        minority backgrounds) on personnel development and systems 
        change in education, including early intervention.
            ``(B) The peer review process for subsequent submissions of 
        State Improvement Plans shall include consideration of the 
        effectiveness of the State's improvement efforts, as described 
        in the State's Improvement Plan.
            ``(3) Available funds.--The Secretary may use funds 
        available under this part to pay the expenses and fees of non-
        Federal peer reviewers.
    ``(f) Duration of Plans.--(1) Each State Improvement Plan under 
this section shall be for a period determined by the State, but not 
longer than four years.
    ``(2) The Secretary may require amendments to a State's plan at any 
time as a result of the Secretary's compliance reviews under parts B 
and H of this Act, and shall not provide further funding under this 
part to the State until such amendments are submitted and approved.
    ``(3) If the State makes significant changes in its plan, it shall 
submit that information to the Secretary for approval.

                        ``distribution of funds

    ``Sec. 625. (a) Allocations.--The Secretary shall allocate funds 
available to carry out this part for any fiscal year to eligible States 
on the basis of their relative total populations of--
            ``(1) all children aged birth through two, if the State 
        receives a grant under part H of this Act; and
            ``(2) all children aged three 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 part B of this Act.
    ``(b) Minimum State Allocations.--Notwithstanding subsection (a), 
the Secretary shall make a grant under paragraph (1) of--
            ``(1) at least $400,000 to each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto Rico; and
            ``(2) at least $40,000 to each outlying area.
    ``(c) Outlying Areas.--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 section.

         ``mandatory use of funds for professional development

    ``Sec. 626. (a) Professional Development Generally.--Each State 
shall use at least 50 percent of the funds it receives under this part 
for any fiscal year to ensure that there is a sufficient supply of 
personnel who have the skills and knowledge necessary to enable 
children with disabilities to meet developmental goals and, to the 
maximum extent possible, those challenging standards that have been 
established for all children, including working with other States on 
common certification criteria.
    ``(b) Early Intervention Professional Development.--(1) Each State 
shall use at last 15 percent of the funds it uses for personnel 
development under this part to address personnel development needs in 
the area of early intervention.
    ``(2) Funds reserved under paragraph (1) shall be made available to 
the lead agency under part H of this Act or, at the lead agency's 
discretion, shall be retained by the State educational agency.

                        ``authorized activities

    ``Sec. 627. Authorized activities under this part are any 
activities, described in the State Improvement Plan, that are 
consistent with the purpose of this part, which may include the award 
of subgrants to local educational agencies and other appropriate 
entities.

                   ``authorization of appropriations

    ``Sec. 628. 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 1997 through 2001.

                   ``Part D--Professional Development

                               ``findings

    ``Sec. 631. The Congress finds that--
            ``(1) in order to serve children with disabilities 
        appropriately, both general and special education personnel 
        must be prepared to meet the special needs of those children, 
        and they must be prepared in how to work together effectively 
        to meet those needs;
            ``(2) in order to assist children with disabilities to meet 
        developmental goals and, to the maximum extent possible, those 
        challenging standards that have been established for all 
        children, personnel working with children with disabilities 
        must have the knowledge and skills necessary to address each 
        child's individual needs;
            ``(3) the Federal Government can play a critical role in 
        assisting States in meeting the need for highly-qualified 
        personnel by--
                    ``(A) supporting models of professional development 
                that reflect best practices, including strategies for 
                recruiting, preparing, and retaining personnel;
                    ``(B) supporting the development of, and 
                dissemination of information about, teaching standards; 
                and
                    ``(C) promoting the coordination and integration of 
                professional development for teachers of children with 
                disabilities with professional development supported 
                under the Goals 2000: Educate America Act and the 
                Elementary and Secondary Education Act of 1965;
            ``(4) national activities that promote greater consistency 
        in certification standards among States and reciprocity in 
        accepting teaching credentials can help reduce personnel 
        shortages and improve services;
            ``(5) institutions of higher education and individual 
        States are reluctant to support professional development 
        programs for personnel needed to serve children with low-
        incidence disabilities because of the small number of these 
        personnel needed in each State; therefore, Federal support is 
        needed to ensure an adequate supply of those personnel; and
            ``(6) Federal support is needed to ensure an adequate 
        supply of leadership personnel in education, related services, 
        and early intervention, including teacher-preparation faculty, 
        administrators, researchers, supervisors, and principals who 
        have the professional development they need to help children 
        with disabilities--
                    ``(A) meet developmental goals and, to the maximum 
                extent possible, those challenging standards that have 
                been established for all children; and
                    ``(B) be prepared to lead productive, independent 
                adult lives to the maximum extent possible.

                               ``purposes

    ``Sec. 632. The purposes of this part are to help ensure that--
            ``(1) personnel responsible for serving children with 
        disabilities, including general and special education 
        personnel, related services personnel, and early intervention 
        personnel, have the knowledge and skills necessary to help 
        those children--
                    ``(A) meet developmental goals and, to the maximum 
                extent possible, those challenging standards that have 
                been established for all children; and
                    ``(B) be prepared to lead productive, independent 
                adult lives to the maximum extent possible;
            ``(2) there are adequate numbers of those personnel to meet 
        the needs of children with disabilities; and
            ``(3) the skills and knowledge of personnel responsible for 
        serving children with disabilities reflect the best practices 
        as determined through research and experience, particularly 
        with respect to the inclusion of children with disabilities in 
        the regular education environment.

                         ``national activities

    ``Sec. 633. (a) Program Authorized.--The Secretary may make grants 
to, and enter into contracts and cooperative agreements with, eligible 
entities to support activities of national significance that--
            ``(1) have broad applicability; and
            ``(2) will help ensure that the purposes of this part are 
        met.
    ``(b) Authorized Activities.--In carrying out this section, the 
Secretary may support any activities that are consistent with 
subsection (a), including--
            ``(1) the development, evaluation, demonstration, or 
        dissemination of effective personnel preparation practices for 
        personnel to work with children with disabilities;
            ``(2) promoting the recruitment or retention of such 
        personnel, particularly in areas of greatest need, such as 
        inner-city and rural areas;
            ``(3) institutes that provide professional development that 
        addresses the needs of children with disabilities to--
                    ``(A) teachers or teams of teachers; and
                    ``(B) where appropriate, administrators, pupil-
                service personnel, and other staff from individual 
                schools;
            ``(4) encouraging the development of professional networks 
        that provide a forum for interaction among teachers of children 
        with disabilities;
            ``(5) efforts to prepare teachers and other personnel in 
        the innovative uses and applications of technology to enhance 
        learning by children with disabilities;
            ``(6) the development, evaluation, and dissemination of 
        model teaching standards for persons working with children with 
        disabilities;
            ``(7) the dissemination of information about--
                    ``(A) voluntary national content standards, State 
                content standards, voluntary national student-
                performance standards, and State student-performance 
                standards; and
                    ``(B) related models of high-quality professional 
                development;
            ``(8) efforts to prepare teachers and other personnel in 
        innovative instructional methodologies for children with 
        disabilities that are designed to meet the diverse learning 
        needs of individual students;
            ``(9) disseminating models of high-quality professional 
        development activities that prepare personnel in strategies, 
        techniques, methods, and practices for meeting the educational 
        needs of individuals with disabilities from different economic,
         cultural, and linguistic backgrounds, in order to ensure that 
all students have the opportunity to meet challenging standards;
            ``(10) promoting the transferability of licensure and 
        certification of teachers and administrators among State and 
        local jurisdictions;
            ``(11) supporting the development of voluntary teaching 
        standards;
            ``(12) developing activities to prepare teachers, and, 
        where appropriate, paraprofessionals, pupil-services personnel, 
        and other staff in the collaborative skills needed to 
        appropriately teach children with disabilities;
            ``(13) developing, evaluating, and disseminating innovative 
        models for recruitment, induction, retention, and assessment of 
        new, highly-qualified teachers, especially such teachers from 
        groups that are underrepresented in the teaching profession;
            ``(14) developing and disseminating models that prepare 
        teachers with strategies, including behavioral management 
        techniques, for addressing the conduct of children with 
        disabilities that impedes their learning and that of others in 
        the classroom; and
            ``(15) supporting Historically Black Colleges and 
        Universities and institutions of higher education with minority 
        enrollments of at least 25 percent for the purpose of preparing 
        personnel.

    ``professional development for personnel serving low-incidence 
                              populations

    ``Sec. 634. (a) Program Authorized.--The Secretary may make grants 
to, and enter into contracts and cooperative agreements with, eligible 
entities to meet the purposes of this part by supporting preparation 
for personnel who will provide educational and related services to 
children with low-incidence disabilities, and personnel who will 
provide early intervention services to infants and toddlers with 
disabilities.
    ``(b) Authorized Activities.--(1) Individuals who may be prepared 
under this section include personnel who are--
            ``(A) currently prepared in the fields of educational, 
        related, or early intervention services; and
            ``(B) studying to--
                    ``(i) obtain degrees, certification, licensure, or 
                endorsements in these fields; or
                    ``(ii) meet competency requirements in these 
                fields.
    ``(2) The Secretary may include funds for scholarships, with 
necessary stipends and allowances, in awards under this section.
    ``(c) Applications.--(1) Any eligible entity that wishes to receive 
a grant 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) Each such application shall propose to provide preparation 
that addresses a significant need, as shown by letters from one or more 
States stating that--
            ``(A) they intend to accept successful completion of the 
        proposed personnel preparation as meeting State personnel 
        standards for serving children with low-incidence disabilities, 
        or for serving infants and toddlers with disabilities; and
            ``(B) they need personnel in the area or areas in which the 
        applicant proposes to provide preparation, as identified in 
        their comprehensive systems of personnel development under 
        parts B and H, or in their State Improvement Plan under part C.
    ``(d) Selection of Recipients.--In making awards under this 
section, the Secretary--
            ``(1) shall apply such criteria as the Secretary finds 
        appropriate, including--
                    ``(A) the impact of the proposed project in meeting 
                the need for personnel identified by the States under 
                subsection (b)(2); and
                    ``(B) the extent to which applicants propose to 
                conduct training that incorporates best practices in 
                both--
                            ``(i) the preparation of personnel; and
                            ``(ii) the provision of educational, 
                        related, or early intervention services;
            ``(2) may give preference to applications that propose to 
        prepare personnel in more than one low-incidence disability, 
        such as deafness and blindness;
            ``(3) may consider past performance of the applicant in 
        carrying out previous projects under this Act; and
            ``(4) may ensure broad geographic coverage of activities 
        assisted under this section.
    ``(e) Definition.--As used in this section, the term `low incidence 
disability' means--
            ``(1) a visual or hearing impairment, or simultaneous 
        visual and hearing impairments;
            ``(2) a significant cognitive impairment; or
            ``(3) 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.

                         ``leadership personnel

    ``Sec. 635. (a) Program Authorized.--The Secretary may make grants 
to, and enter into contracts and cooperative agreements with, eligible 
entities to meet the purposes of this part by preparing educational, 
related service, and early intervention leadership personnel (including 
teacher-preparation faculty, administrators, researchers, supervisors, 
and principals) so that they are prepared to help children with 
disabilities--
            ``(1) meet developmental goals and, to the maximum extent 
        possible, those challenging standards that have been 
        established for all children; and
            ``(2) be prepared to lead productive, independent adult 
        lives to the maximum extent possible.
    ``(b) Authorized Activities.--(1) In carrying out this section, the 
Secretary may support any activities that are consistent with 
subsection (a), including--
            ``(A) preparation of personnel at the advanced graduate, 
        doctoral, or post-doctoral levels; and
            ``(B) professional development of leadership personnel.
    ``(2) The Secretary may include funds for scholarships, with 
necessary stipends and allowances, in awards under this section.
    ``(c) Preferences.--In making awards under this section, the 
Secretary--
            ``(1) shall give preference to projects at institutions of 
        higher education that have successfully integrated the 
        professional development of general and special education 
        personnel;
            ``(2) may give preference to projects at institutions of 
        higher education that--
                    ``(A) are making progress toward integrating the 
                professional development of general and special 
                education personnel; or
                    ``(B) have achieved coordination of their 
                professional development programs for general and 
                special education personnel; and
            ``(3) shall give preference to applicants that are 
        successfully recruiting and preparing individuals with 
        disabilities and individuals from groups that are 
        underrepresented in education leadership positions.

                          ``service obligation

    ``Sec. 636. Each application for funds under sections 634 and 635 
shall include an assurance that the applicant will ensure that 
individuals who are prepared under the proposed project will 
subsequently perform work related to their preparation or repay all or 
part of the cost of that preparation.

                   ``authorization of appropriations

    ``Sec. 637. 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 1997 through 2001.

                     ``Part E--Research to Practice

                               ``findings

    ``Sec. 641. Findings.--The Congress finds that--
            ``(1) as a result of more than 20 years of Federal support 
        for research, demonstrations, and related activities, there is 
        an important knowledge base for enhancing educational 
        opportunities for children with disabilities, and research in
         such areas as instructional and behavioral management 
interventions, learning strategies, and teaching has led to significant 
improvements in professional practice and educational results for 
children with disabilities;
            ``(2) Federal support for a coordinated and high-quality 
        program of research, demonstrations, dissemination, and 
        technical assistance is essential to enabling State and local 
        educational agencies to improve educational results for 
        children with disabilities;
            ``(3) States, local educational agencies, institutions of 
        higher education, schools, and Indian tribes, as well as 
        parents of children with disabilities, need information that is 
        based on current research, that is easily accessible, and that 
        is integrated with information that--
                    ``(A) helps administrators and teachers to serve 
                all children;
                    ``(B) helps families to improve educational results 
                for their children; and
                    ``(C) helps providers of various services 
                effectively coordinate those services;
            ``(4) there is an important Federal role in ensuring that 
        technical assistance is available to State and local 
        educational agencies, both through--
                    ``(A) directly providing technical assistance; and
                    ``(B) helping State and local educational agencies 
                identify and benefit from effective non-Federal sources 
                of technical assistance;
            ``(5) modern technology related to storing, gaining access 
        to, and distributing information provides unprecedented 
        opportunities for putting information into the hands of 
        individuals, including individuals working with children with 
        disabilities, families of children with disabilities, and 
        individuals with disabilities; and
            ``(6) a national assessment of general and special 
        education, related services, and early intervention services 
        for children with disabilities is needed in order to determine 
        the impact and effectiveness of Federal, State, and local 
        efforts supported under this Act, and to improve results for 
        children with disabilities.

                               ``purposes

    ``Sec. 642. The purposes of this part are to--
            ``(1) identify and produce knowledge to improve early 
        intervention and educational opportunities for children with 
        disabilities so that they can--
                    ``(A) meet developmental goals and, to the maximum 
                extent possible, those challenging standards that have 
                been established for all children; and
                    ``(B) be prepared to lead productive, independent 
                adult lives to the maximum extent possible;
            ``(2) advance the use of knowledge by administrators, 
        teachers, parents, and others who work with children with 
        disabilities, as well as by individuals with disabilities;
            ``(3) identify, produce, and promote the use of knowledge 
        to address the special needs of children with a high likelihood 
        of needing special education and related services in order to 
        reduce, through early intervention, the need for special 
        education services later in life; and
            ``(4) assist institutions of higher education to 
        appropriately serve individuals with disabilities, including 
        individuals who are deaf, in postsecondary programs.

                 ``research and improvement activities

    ``Sec. 643. The Secretary may make grants to, and enter into 
contracts and cooperative agreements with, eligible entities to support 
activities that will help meet the purposes of this part, including--
            ``(1) research and development projects that advance 
        knowledge about--
                    ``(A) the developmental and learning 
                characteristics of children with disabilities that will 
                improve the design and effectiveness of interventions 
                and instruction;
                    ``(B) assessment techniques, instruments (including 
                tests, inventories, and scales), and strategies for 
                measuring the progress of children with disabilities in 
                meeting developmental goals and, to the maximum extent 
                possible, those challenging standards that have been 
                established for all children;
                    ``(C) identifying and evaluating children with 
                disabilities for the purpose of determining--
                            ``(i) their eligibility for services under 
                        this Act; and
                            ``(ii) the appropriate education, related 
                        services, and early intervention services to be 
                        provided to eligible children;
                    ``(D) identifying organizational, resource, and 
                other conditions necessary for effective professional 
                practice;
                    ``(E) the coordination of education with health and 
                social services in order to improve educational results 
                for children with disabilities;
                    ``(F) helping families improve educational results 
                for their children; and
                    ``(G) strategies to address the behavior of 
                children with disabilities that impedes their learning 
                or that of others;
            ``(2) large-scale longitudinal studies designed to produce 
        information on the long-term impact of early intervention and 
        education on results for individuals with disabilities;
            ``(3) model demonstration projects to apply and field-test 
        research findings in typical service settings to determine the 
        applicability, usability, effectiveness, and general 
        applicability of such research findings in such areas as 
        improving instructional methods, curricula, and instructional 
        tools such as textbooks, media, and materials;
            ``(4) projects to assist institutions of higher education 
        in appropriately serving their students with disabilities, 
        including deaf students, such as demonstrating and 
        disseminating effective strategies to address the needs of 
        those students;
            ``(5) outreach projects to support the replication of 
        proven strategies and practices that will improve educational, 
        related, and early intervention services for children with 
        disabilities;
            ``(6) assisting researchers, program developers, and others 
        to produce, evaluate, and make available information that will 
        be useful to a variety of audiences seeking to improve 
        educational results for children with disabilities;
            ``(7) helping apply research and other knowledge to improve 
        educational results for children with disabilities by--
                    ``(A) identifying useful research and other 
                products;
                    ``(B) ensuring that these products are in 
                appropriate formats for distribution to administrators, 
                teachers, parents, and individuals with disabilities; 
                and
                    ``(C) making those products available through 
                clearinghouses, libraries, electronic networks, parent 
                training projects, and other information sources;
            ``(8) integrating educational, related, transitional, and 
        early intervention service information related to children with 
        disabilities into clearinghouses, libraries, electronic 
        networks, and other information and communication resources 
        that are available to address the needs of all children, not 
        just children with disabilities;
            ``(9) clearinghouse activities to address the information 
        needs of administrators, teachers, parents, and others who work 
        with individuals with disabilities as well as the information 
        needs of individuals with disabilities themselves;
            ``(10) supplemental funding for the comprehensive technical 
        assistance centers authorized under part A of title XIII of the 
        Elementary and Secondary Education Act of 1965 to help ensure 
        that those centers effectively address the needs of children 
        with disabilities;
            ``(11) special education and early intervention regional 
        resource centers to provide technical assistance to States in--
                    ``(A) linking to other technical assistance 
                resources, including special and general education 
                resources;
                    ``(B) gaining access to information, including 
                information on research and best practices; and
                    ``(C) developing, implementing, and evaluating 
                their State Improvement Plans under part C of this Act; 
                and
            ``(12) technical assistance to State educational agencies, 
        State lead agencies for serving infants and toddlers with 
        disabilities under part H, and other organizations and agencies 
        that play a critical role in serving children with disabilities 
        in such areas as--
                    ``(A) providing for the participation of children 
                with disabilities in State and local assessments;
                    ``(B) the financing of special education;
                    ``(C) the coordination of education, health, and 
                social services; and
                    ``(D) promoting safe and disciplined schools.

                ``studies and evaluations; annual report

    ``Sec. 644. (a) Studies and Evaluations.--The Secretary may, 
directly or through grants to, and contracts and cooperative agreements 
with, eligible entities--
            ``(1) assess progress in the implementation of this Act;
            ``(2) assess, through performance indicators and other 
        means, the impact and effectiveness of State and local efforts, 
        and efforts by the Secretary of the Interior, to--
                    ``(A) provide a free appropriate public education 
                to children with disabilities; and
                    ``(B) provide early intervention services to infant 
                and toddlers with disabilities and those at risk for 
                developmental delay;
            ``(3) assess the placement of children with disabilities, 
        by disability;
            ``(4) provide Congress with information relevant to policy-
        making and to provide State, local, and Federal agencies, 
        including the Department of the Interior, with information 
        relevant to program management, administration, service 
        delivery, and effectiveness with respect to education and early 
        intervention services; and
            ``(5) conduct the national assessment described in section 
        645.
    ``(b) Annual Report.--The Secretary shall report annually to the 
Congress on--
            ``(1) the results of activities conducted under subsection 
        (a);
            ``(2) an analysis and summary of the data reported by the 
        States and the Secretary of the Interior under section 618; and
            ``(3) the findings and determinations resulting from 
        reviews of State implementation of this Act.

                         ``national assessment

    ``Sec. 645. (a) Purpose of Assessment.--The Secretary shall carry 
out a national assessment of the implementation of this Act in order 
to--
            ``(1) determine the impact of this Act on helping 
        individuals with disabilities--
                    ``(A) meet developmental goals and, to the maximum 
                extent possible, those challenging standards that have 
                been established for all children; and
                    ``(B) be prepared to lead productive, independent 
                adult lives to the maximum extent possible;
            ``(2) provide information to Congress, the Executive 
        Branch, the States, local educational agencies, and others on 
        how to more effectively implement the Act; and
            ``(3) provide Congress and the Executive Branch information 
        useful in developing legislation to more effectively meet the 
        purposes of this Act.
    ``(b) Consultation.--The Secretary shall plan, review, and conduct 
the national assessment in consultation with researchers, State 
practitioners, local practitioners, parents of children with 
disabilities, individuals with disabilities, and other appropriate 
individuals.
    ``(c) Scope of Assessment.--(1) The national assessment shall 
examine how well schools, local educational agencies, and States, in 
carrying out parts B, C, and H, are--
            ``(A) helping children served under this Act, including 
        children from minority backgrounds and children with limited 
        English proficiency--
                    ``(i) meet developmental goals and, to the maximum 
                extent possible, those challenging standards that have 
                been established for all children; and
                    ``(ii) be prepared to lead productive, independent 
                adult lives to the maximum extent possible;
            ``(B) providing for the participation of children with 
        disabilities in the general education curriculum;
            ``(C) helping children with disabilities make successful 
        transitions from--
                    ``(i) early intervention services to preschool 
                education;
                    ``(ii) preschool education to elementary school; 
                and
                    ``(iii) secondary school to adult life;
            ``(D) providing for the participation of children with 
        disabilities in State and district-wide assessments;
            ``(E) placing and serving children with disabilities, 
        including children from minority backgrounds and children with 
        limited English proficiency, in the least restrictive 
        environment appropriate;
            ``(F) preventing children with disabilities, especially 
        children with emotional disturbances and specific learning 
        disabilities, from dropping out of school;
            ``(G) addressing the need for personnel with the knowledge 
        and skills necessary to help children with disabilities reach 
        developmental goals and challenging standards;
            ``(H) coordinating services provided under this Act with 
        each other, with other educational and pupil services 
        (including preschool services), and with health and social 
        services funded from other sources;
            ``(I) affording parents of children served under this Act 
        meaningful opportunities to participate in the education of 
        their children; and
            ``(J) resolving disagreements between education personnel 
        and parents through activities such as mediation.
    ``(2) The assessment shall also examine how effective the 
activities authorized under parts D through G of this Act have been in 
achieving their purposes.
    ``(d) Sources of Information.--The Secretary shall use information 
gathered from a variety of sources, including the National Assessment 
of Educational Progress, State evaluations, and available research 
studies, in carrying out this section.
    ``(e) Interim and Final Reports.--The Secretary shall submit to the 
President and the appropriate committees of the Congress--
            ``(1) an interim report that summarizes the preliminary 
        findings of the assessment by October 1, 1998; and
            ``(2) a final report of the findings of the assessment by 
        October 1, 2000.

    ``authorization of appropriations; reservation for studies and 
                              evaluations

    ``Sec. 646. (a) 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 1997 through 
2001.
    ``(b) Reservation for Studies and Evaluations.--Notwithstanding any 
other provisions of this Act, the Secretary may reserve, in addition to 
any funds appropriated under subsection (a), up to one-half of one 
percent of the amount appropriated for each fiscal year for section 611 
and for part H to carry out sections 644 and 645 of this part.

               ``Part F--Parent Training and Information

                               ``findings

    ``Sec. 651. The Congress finds that--
            ``(1) parental involvement in the education of their 
        children improves the emotional well-being of families, 
        enhances parenting skills, and improves educational results for 
        children with disabilities, enabling them to lead productive, 
        independent adult lives to the maximum extent possible;
            ``(2) parents of children with disabilities need training 
        to develop the skills they need to participate effectively in 
        the education of their children, and to understand the nature 
        of their children's disabilities and their need for 
        accommodations and special education and related services in 
        order to achieve their educational goals;
            ``(3) parents of children with disabilities need 
        information on their rights and protections under this Act to 
        ensure improved educational results;
            ``(4) parents of children with disabilities who have 
        limited access to services and supports due to economic, 
        cultural, or linguistic barriers have the greatest need for 
        community-based approaches to providing parent training and 
        information;
            ``(5) parental involvement in school-site reform 
        initiatives, such as under the Goals 2000: Educate America Act, 
        leads to improved educational results for their children; and
            ``(6) students with disabilities need training so that they 
        can assume the rights of their parents under part B of this Act 
        when they reach the age of majority, if the State provides for 
        the transfer of those rights under section 615(j).

                               ``purposes

    ``Sec. 652. The purposes of this part are to ensure that--
            ``(1) parents of children with disabilities have training 
        and information provided in a manner that is meaningful and 
        accessible to enable them to participate effectively in helping 
        their children--
                    ``(A) meet developmental goals and, to the maximum 
                extent possible, those challenging standards that have 
                been established for all children; and
                    ``(B) be prepared to lead productive, independent 
                adult lives to the maximum extent possible; and
            ``(2) students with disabilities understand their rights 
        and responsibilities under part B of this Act on reaching the 
        age of majority, if the State provides for the transfer of 
        parental rights under section 615(j) of that part.

               ``parent training and information centers

    ``Sec. 653. (a) Program Authorized.--The Secretary may make grants 
to, and enter into contracts and cooperative agreements with, parent 
organizations to support parent training and information centers to 
carry out the purposes of this part.
    ``(b) Required Activities.--Each parent training and information 
center receiving assistance under this section shall--
            ``(1) provide training and information that meets the 
        training and information needs of parents of children with 
        disabilities living in the area to be served by the award;
            ``(2) serve the parents of children with the full range of 
        disabilities;
            ``(3) assist parents to--
                    ``(A) better understand the nature of their 
                children's disabilities and their educational and 
                developmental needs;
                    ``(B) communicate effectively with early 
                intervention personnel, special and regular educators, 
                administrators, related services personnel, and other 
                relevant professionals;
                    ``(C) participate in decision-making processes, 
                including the development of individualized education 
                programs under part B of this Act and individualized 
                family service plans under part H of this Act for 
                children with disabilities;
                    ``(D) obtain appropriate information about the 
                range of options, programs, services, and resources 
                available at the national, State, and local levels to 
                assist children with disabilities and their families;
                    ``(E) understand the provisions for the education 
                of, and for early intervention services for, children 
                with disabilities under this Act; and
                    ``(F) participate in school reform activities;
            ``(4) assist students with disabilities to understand their 
        rights and responsibilities under section 615(j) of this Act on 
        reaching the age of majority, if the State provides for the 
        transfer of parental rights to the student under that section;
            ``(5) report to the Secretary on--
                    ``(A) the number of parents to whom it provided 
                information and training; and
                    ``(B) the effectiveness of strategies used to reach 
                and serve parents, including low-income parents from 
                inner-city and rural areas, parents of children with 
                limited English proficiency, and parents with 
                disabilities; and
            ``(6) establish cooperative partnerships with the community 
        parent resource centers funded under section 654.
    ``(c) Application Requirements.--Each application for assistance 
under this section shall identify with specificity the special efforts 
that the applicant will undertake to--
            ``(1) ensure that the needs of low-income parents from 
        inner-city and rural areas, parents of children with limited 
        English proficiency, and parents with disabilities in the area 
        to be served are effectively met; and
            ``(2) work with community-based organizations.
    ``(d) Distribution of Funds.--(1)(A) The Secretary shall allocate 
the funds available to carry out this section for each fiscal year for 
awards in each State based on the State's population from birth through 
age 21, except that--
            ``(i) each of the 50 States, the District of Columbia, and 
        the Commonwealth of Puerto Rico shall be allocated at least 
        $150,000 or the amount that it was allocated under this section 
        for the previous fiscal year, whichever is greater; and
            ``(ii) each outlying area shall be allocated at least 
        $50,000 or the amount that it was allocated under this section 
        for the previous fiscal year, whichever is greater.
    ``(B) If the sums available to make allocations under subparagraph 
(A) are insufficient to make the minimum allocations described in that 
subparagraph, the Secretary shall ratably reduce those allocations.
    ``(C) If additional funds become available to make allocations 
under subparagraph (A), the allocations that were reduced under 
subparagraph (B) shall be increased on the same basis as they were 
reduced.
    ``(2) The Secretary shall make at least one award in each State 
from which the Secretary receives an application of sufficient quality 
to warrant approval.
    ``(3) The Secretary may select applications in a manner that 
ensures the most effective coverage of parents, including parents in 
urban and rural areas, in the affected State.
    ``(4) If the Secretary determines that the applications received 
from a State do not warrant the award of the State's entire allocation 
under paragraph (1), the Secretary may use all or part of that 
allocation, as the case may be--
            ``(A) to increase the number or amount of awards in other 
        States under this section; or
            ``(B) for other activities, authorized by this part or 
        other provisions of this Act, to provide parents with training 
        and information or to provide technical assistance to those 
        providing that training and information.

                  ``community parent resource centers

    ``Sec. 654. (a) Program Authorized.--The Secretary may make grants 
to, and enter into contracts and cooperative agreements with, local 
parent organizations to support parent training and information centers 
that will help ensure that underserved parents of children with 
disabilities, including low-income parents, parents of children with 
limited English proficiency, and parents with disabilities, have the 
training and information they need to enable them to participate 
effectively in helping their children with disabilities--
            ``(1) meet developmental goals and, to the maximum extent 
        possible, those challenging standards that have been 
        established for all children; and
            ``(2) be prepared to lead productive, independent adult 
        lives to the maximum extent possible.
    ``(b) Required Activities.--Each parent training and information 
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 award;
            ``(2) carry out the activities required of parent training 
        and information centers under paragraphs (2) through (5) of 
        section 653(b);
            ``(3) establish cooperative partnerships with the parent 
        training and information centers funded under section 653; and
            ``(4) be designed to meet the specific needs of families 
        who experience significant isolation from available sources of 
        information and support.

                         ``technical assistance

    ``Sec. 655. (a) Program Authorized.--The Secretary may provide 
technical assistance for developing, assisting, and coordinating parent 
training and information programs under this part.
    ``(b) Priorities.--The Secretary may focus technical assistance 
under this section on areas such as--
            ``(1) coordinating parent training efforts;
            ``(2) providing or helping to disseminate information to 
        projects;
            ``(3) assisting centers funded under this part in 
        evaluating themselves;
            ``(4) promoting the use of technology;
            ``(5) reaching underserved populations;
            ``(6) early childhood services;
            ``(7) assistive technology;
            ``(8) including children with disabilities in general 
        education programs;
            ``(9) transition from--
                    ``(A) early intervention services to preschool;
                    ``(B) preschool to school; or
                    ``(C) secondary school to postsecondary 
                environments; and
            ``(10) alternative methods of dispute resolution.

                             ``definitions

    ``Sec. 656. (a) Parent Organization.--As used in this part, the 
term `parent organization' means a private nonprofit organization (but 
not including an institution of higher education) that either--
            ``(1) has a board of directors--
                    ``(A) the majority of whom are parents of children 
                with disabilities;
                    ``(B) that includes--
                            ``(i) individuals working in the fields of 
                        special education, related services, and early 
                        intervention; and
                            ``(ii) individuals with disabilities; and
                    ``(C) the parent and professional members of which 
                are broadly representative of the population to be 
                served; or
            ``(2) represents the interests of individuals with 
        disabilities and has established a special governing committee 
        to administer the proposed project that meets the requirements 
        of subparagraphs (A), (B), and (C) of paragraph (1).
    ``(b) Local Parent Organization.--As used in this part, the term 
`local parent organization' means a parent organization, as defined in 
subsection (a), that either--
            ``(1) has a board of directors the majority of whom are 
        from the community to be served by the proposed project; or
            ``(2)(A) has the interests of individuals with disabilities 
        from that community as a part of its mission; and
                    ``(B) has a special governing committee to 
                administer the project, a majority of the members of 
                which are from that community.

                   ``authorization of appropriations

    ``Sec. 657. (a) General.--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 1997 through 2001.
    ``(b) Community Parent Resource Centers.--For any fiscal year for 
which the amount appropriated for this part is at least $13,535,000, 
the Secretary shall make at least five awards for community parent 
resource centers under section 654.

    ``Part G--Technology Development and Educational Media Services

                               ``findings

    ``Sec. 661. The Congress finds that--
            ``(1) Federal support for technology research and 
        development has resulted in major innovations that have 
        significantly improved the lives of individuals with 
        disabilities;
            ``(2) Federal support for the development and application 
        of technology to address the needs of individuals with 
        disabilities is needed because of the small size of the 
        potential markets;
            ``(3) Federal support is needed to stimulate the 
        development of software, inter-active learning tools, and 
        devices to address the educational needs of children with 
        certain disabilities;
            ``(4) individuals involved in the education of children 
        with disabilities need to be more aware of, and competent in 
        the use of, technology for children with disabilities; and
            ``(5) more information is needed on professional 
        development and organizational arrangements that support the 
        integration of technology into the curriculum to improve 
        educational results for children with disabilities.

                               ``purposes

    ``Sec. 662. The purposes of this part are to--
            ``(1) support research on, and the development of, advanced 
        technology, and promote the expanded use of existing 
        technology, that will help improve early intervention and 
        education services for children with disabilities so that they 
        can--
                    ``(A) meet developmental goals and, to the maximum 
                extent possible, those challenging standards that have 
                been established for all children; and
                    ``(B) be prepared to lead productive, independent 
                adult lives to the maximum extent possible;
            ``(2) address the educational needs and promote the general 
        welfare of deaf and hard-of-hearing individuals through media; 
        and
            ``(3) address the educational needs of visually impaired 
        (including blind) and print-disabled individuals and the 
        general welfare of visually impaired individuals through media.

                        ``technology development

    ``Sec. 663. (a) Program Authorized.--The Secretary may make grants 
to, and enter into contracts and cooperative agreements with, eligible 
entities to support activities that will carry out the purpose of this 
part stated in section 662(1).
    ``(b) Authorized Activities.--In carrying out this section, the 
Secretary may support any activities that are consistent with 
subsection (a), including--
            ``(1) conducting research and development on the use of 
        innovative and emerging technologies for children with 
        disabilities;
            ``(2) promoting the use of innovative and emerging 
        technologies for children with disabilities by improving and 
        expanding the transfer of technology from research and 
        development to practice;
            ``(3) conducting research on, and developing, assistive and 
        instructional technologies to improve learning;
            ``(4) conducting research on effective models of 
        professional development and school policies that support the 
        use of technology in the school, the home, the workplace, and 
        community settings;
            ``(5) providing technical assistance to recipients under 
        this section in the development of accessible, effective, and 
        usable products;
            ``(6) communicating information on--
                    ``(A) available technology; and
                    ``(B) models described in paragraph (4);
            ``(7) conducting research on captioning or video 
        description; and
            ``(8) supporting research and development of technology 
        with universal design features, so that it is accessible to 
        individuals with disabilities without further modification or 
        adaptation.

                      ``educational media services

    ``Sec. 664. (a) Program Authorized.--The Secretary may make grants 
to, and enter into contracts and cooperative agreements with, eligible 
entities to support the use of media to--
            ``(1) address the educational needs and promote the general 
        welfare of deaf and hard-of-hearing individuals through media; 
        and
            ``(2) address the educational needs of visually impaired 
        (including blind) and print-disabled individuals and the 
        general welfare of visually impaired individuals through media.
    ``(b) Authorized Activities.--In carrying out this section, the 
Secretary may support any activities that are consistent with 
subsection (a), including--
            ``(1) video description, open captioning, or closed 
        captioning of television programs, videos, or educational 
        materials;
            ``(2) distributing captioned and described videos or 
        educational materials;
            ``(3) recording free educational materials, including 
        textbooks, for visually impaired and print-disabled students in 
        elementary, secondary, postsecondary, and graduate schools; and
            ``(4) providing, through the National Theatre of the Deaf 
        and other means, cultural experiences to--
                    ``(A) enrich the lives of deaf and hard-of-hearing 
                children and adults;
                    ``(B) increase public awareness and understanding 
                of deafness and of the artistic and intellectual 
                achievements of deaf and hard-of-hearing individuals; 
                and
                    ``(C) promote the integration of hearing, deaf, and 
                hard-of-hearing individuals through shared cultural, 
                educational, and social experiences.

                   ``authorization of appropriations

    ``Sec. 665. For the purpose of carrying out this part, there are 
authorized to appropriated such sums as may be necessary for each of 
the fiscal years 1997 through 2001.''.

               TITLE IV--AMENDMENTS TO PART H OF THE IDEA

                              definitions

    Sec. 401. Section 672 of the IDEA is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``--'' after ``toddlers with 
                disabilities'';
                    (B) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii);
                    (C) by designating ``means individuals'' and all 
                that follows through the end of the first sentence 
                thereof as subparagraph (A);
                    (D) by designating the second sentence thereof as 
                subparagraph (B);
                    (E) in subparagraph (A)(ii), as redesignated, by 
                striking out the period following ``developmental 
                delay'' and inserting in lieu thereof a semicolon and 
                ``and''; and
                    (F) by amending subparagraph (B), as designated by 
                subparagraph (D), to read as follows:
                    ``(B) may also include, at a State's discretion, 
                at-risk infants and toddlers, as defined in paragraph 
                (5).''; and
            (2) by adding at the end thereof a new paragraph (5) to 
        read as follows:
            ``(5) The term `at-risk infants and toddlers' means 
        individuals from birth through age two who are at risk of 
        having substantial developmental delays if early intervention 
        services are not provided.''.

                           general authority

    Sec. 402. Section 673 of the IDEA is amended by striking out 
``develop'' and inserting in lieu thereof ``implement''.

                              eligibility

    Sec. 403. (a) The heading for section 674 of the IDEA is amended by 
striking out ``General''.
    (b) Section 674 of the IDEA is further amended by striking out 
``that the State'' and all that follows through the end thereof and 
inserting in lieu thereof ``that the State--
            ``(A) has adopted a policy that appropriate early 
        intervention services are available to all infants and toddlers 
        in the State who are eligible under this part and their 
        families; and
            ``(B) has in effect the statewide system required by 
        section 675.''.

                         continuing eligibility

    Sec. 404. (a) Repeal of Section 675.--Section 675 of the IDEA is 
repealed.
    (b) Redesignation of Sections.--Sections 676 and 677 of the IDEA 
are redesignated as sections 675 and 676, respectively.

                   requirements for statewide system

    Sec. 405. Subsection (b) of section 675 of the IDEA, as 
redesignated by section 404(b), is amended--
            (1) by amending paragraph (2) to read as follows:
            ``(2) a statement of--
                    ``(A) which infants and toddlers will be served 
                under section 676; and
                    ``(B) which infants and toddlers will be served 
                under section 677,'';
            (2) in paragraph (3)--
                    (A) by striking out ``to appropriately assist in 
                the development of the infant or toddler with a 
                disability'';
                    (B) by designating the remaining text as 
                subparagraph (A);
                    (C) by inserting ``and'' after the comma at the end 
                thereof; and
                    (D) by adding at the end thereof a new subparagraph 
                (B) to read a follows:
                    ``(B) a timely assessment of each at-risk infant 
                and toddler to be served under section 677,'';
            (3) in paragraph (4)--
                    (A) by inserting ``(A)'' after the paragraph 
                number;
                    (B) by striking out ``section 677'' and inserting 
                in lieu thereof ``section 676'';
                    (C) by adding ``and'' after the comma at the end 
                thereof; and
                    (D) by adding at the end thereof a new subparagraph 
                (B) to read as follows:
                    ``(B) for each at-risk infant and toddler to be 
                served under section 677, a statement of services to be 
                provided, including service coordination, in accordance 
                with that section,'';
            (4) in paragraph (6)--
                    (A) by striking out ``identification of infants and 
                toddlers with disabilities'' and inserting in lieu 
                thereof ``identification of infants and toddlers served 
                under this part''; and
                    (B) by striking out ``parents of infants with 
                disabilities'' and inserting in lieu thereof ``parents 
                of infants and toddlers'';
            (5) in paragraph (8)--
                    (A) by striking out ``section 613(a)(3) and 
                inserting in lieu thereof ``section 612(a)(14) (or with 
                the personnel development requirements for State 
                Improvement Plans under section 624, as amended by 
                section 302 of the Individuals with Disabilities 
                Education Act Amendment of 1995)'';
                    (B) in subparagraph (C), by inserting ``and 
                innercity'' after ``rural''; and
                    (C) in subparagraph (D)--
                            (i) by striking out ``with disabilities'' 
                        and inserting in lieu thereof ``served under 
                        this part''; and
                            (ii) by striking out ``a preschool program 
                        under section 619 of part B.'' and inserting in 
                        lieu thereof ``preschool or other services,'';
            (6) in paragraph (9)(D), by striking out ``infants and 
        toddlers with disabilities and their families'' and inserting 
        in lieu thereof ``infants and toddlers and their families under 
        this part'';
            (7) in paragraph (13)--
                    (A) in subparagraph (B), by striking out ``and'' at 
                the end thereof and inserting in lieu thereof ``except 
                that''; and
                    (B) by adding at the end thereof a new subparagraph 
                (C) to read as follows:
                    ``(C) nothing in this Act, including subparagraphs 
                (A) and (B) of this paragraph, prohibits the use of 
                paraprofessionals who are appropriately trained and 
                supervised, in meeting the requirements of this 
                part,'';
            (8) by amending paragraph (14) to read as follows:
            ``(14) a system for compiling data requested by the 
        Secretary under section 618 that relates to this part, and'';
            (9) by adding at the end thereof a new paragraph (15) to 
        read as follows:
            ``(15) a State Interagency Coordinating Council that meets 
        the requirements of section 682.'';
            (10) by redesignating paragraph (13) as paragraph (9); and
            (11) by redesignating paragraphs (9) through (12) as 
        paragraphs (10) through (13), respectively.

                  individualized family service plans

    Sec. 406. Subsection (d) of section 676 of the IDEA, as 
redesignated by section 404(b), is amended--
            (1) in paragraph (1), by striking out ``acceptable''; and
            (2) in paragraph (8)--
                    (A) by striking out ``supporting'' and inserting in 
                lieu thereof ``to support''; and
                    (B) by striking out ``services provided'' and all 
                that follows through ``appropriate'' and inserting in 
                lieu thereof ``preschool or other appropriate 
                services''.

         statement of services for at-risk infants and toddlers

    Sec. 407. Part H of the IDEA is further amended by inserting after 
section 676, as redesignated by section 404(b), a new section 677 to 
read as follows:

        ``statement of services for at-risk infants and toddlers

    ``Sec. 677. (a) Applicability; Assessment and Program 
Development.--Any State that, in accordance with section 678(a)(4), 
elects to provide services under this part to at-risk infants and 
toddlers in accordance with this section shall provide each at-risk 
infant and toddler, and the infant's or toddler's family--
            ``(1) a timely assessment of the unique strengths and needs 
        of the infant or toddler;
            ``(2) at the discretion of the family, a timely family-
        directed assessment of the resources, priorities, and concerns 
        of the family, including the identification of supports and 
        services needed to enhance the family's capacity to meet the 
        infant's or toddler's developmental needs; and
            ``(3) a written statement of services to be provided the 
        infant or toddler through programs assisted under this part 
        which, at a minimum, shall include service coordination.
    ``(b) Development of Statement of Services.--(1) The child's 
service coordinator, together with the parents of the infant or 
toddler, and others as appropriate, shall develop the statement of 
services described in subsection (a)(3) within a reasonable time after 
the assessments required by subsections (a) (1) and (2) are completed.
    ``(2) If the parent consents, services may be provided before the 
statement of services is completed.
    ``(c) Contents of the Statement of Services.--The statement of 
services for each at-risk infant and toddler shall contain--
            ``(1) a statement of the infant's or toddler's present 
        levels of development based on objective criteria;
            ``(2) at the discretion of the family, a statement of the 
        family's resources, priorities, and concerns relating to 
        enhancing the development of the infant or toddler;
            ``(3) a statement of services needed by the infant or 
        toddler and the family, including a statement of the service 
        coordination and any other early intervention services to be 
        provided under this part and referrals to, or linkages with, 
        other public or private resources;
            ``(4) the name of the service coordinator; and
            ``(5) in the case of a toddler, the steps to be taken to 
        support transition to preschool or other services, as 
        appropriate.
    ``(d) Periodic Review.--(1) The child's service coordinator, 
together with the parents of the infant or toddler, and others as 
appropriate, shall review (and revise, as appropriate) the statement of 
services--
            ``(A) every six months;
            ``(B) whenever requested by the family; or
            ``(C) whenever a review would be appropriate based on the 
        needs of the infant or toddler and the family.
    ``(2) The review shall determine whether--
            ``(A) the infant or toddler is an infant or toddler with a 
        disability; and
            ``(B) whether a reassessment of the child or family is 
        needed.
    ``(e) Parental Consent.--(1) The contents of the statement of 
services shall be fully explained to the parents in their native 
language or other mode of communication.
    ``(2) Informed written consent from the parents shall be obtained 
before any early intervention services are provided under this part.
    ``(3) If the parents do not consent to the provision of a 
particular early intervention service, only the services to which they 
have consented shall be provided.''.
                   state applications and assurances

    Sec. 408. (a) Section 678(a) of the IDEA is amended--
            (1) in paragraph (3), by adding after the comma at the end 
        thereof ``including--
                    ``(A) information demonstrating to the Secretary's 
                satisfaction that the State has in effect the statewide 
                system required by section 675; and
                    ``(B) a description of services to be provided to 
                infants and toddlers with disabilities and their 
                families under this part,'';
            (2) by amending paragraph (4) to read as follows:
            ``(4)(A) a statement of whether the State will serve at-
        risk infants and toddlers as infants and toddlers with 
        disabilities; and
            ``(B) if not, but if it will serve at-risk infants and 
        toddlers under section 677--
                    ``(i) a description of the services it will 
                provide;
                    ``(ii) an assurance that, at a minimum, the State 
                will provide service coordination for those infants and 
                toddlers; and
                    ``(iii) an assurance that the parents of each such 
                infant and toddler with be provided a statement of 
                services in accordance with section 677,''; and
            (3) by amending paragraph (8) to read as follows:
            ``(8) 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 
                to preschool or other appropriate services, including a 
                description of--
                            ``(i) how the families of toddlers will be 
                        included in the transition plans required by 
                        subparagraph (C); and
                            ``(ii) how the lead agency under this part 
                        will--
                                    ``(I) notify the local education 
                                agency in which the toddler resides;
                                    ``(II) with the approval of the 
                                family, convene a conference among the 
                                lead agency, the family, and the local 
                                educational agency at least 90 days 
                                before the child is eligible for 
                                preschool services under part B of this 
                                Act in accordance with State law; and
                                    ``(III) 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;
                    ``(B) review the child's program options for the 
                period from the child's third birthday through the 
                remainder of the school year; and
                    ``(C) establish a transition plan, and''.
    (b) Section 678(b) of the IDEA is amended--
             (1) in paragraph (5), by striking out ``infants and 
        toddlers with disabilities and their families'' and inserting 
        in lieu thereof ``infants and toddlers and their families under 
        this part''; and
            (2) in paragraph (7)--
                    (A) by striking out ``traditionally''; and
                    (B) by striking out ``and rural'' and inserting in 
                lieu thereof ``rural, and inner-city''.

                             uses of funds

    Sec. 409. Section 679 of the IDEA is amended--
            (1) by striking out ``plan, develop, and'';
            (2) in paragraph (1), by striking out ``with disabilities 
        and their families'' and inserting in lieu thereof ``and their 
        families under this part''; and
            (3) in paragraph (2), by striking out ``with disabilities 
        and their families'' and inserting in lieu thereof ``and their 
        families under this part''.

                         procedural safeguards

    Sec. 410. Section 680 of the IDEA is amended--
            (1) in paragraphs (5) and (6), by striking out ``with a 
        disability'';
            (2) by redesignating paragraph (8) as subsection (b);
            (3) by designating the remaining text as subsection (a);
            (4) in subsection (a), as so designated, by inserting the 
        heading ``Minimum Procedures.'' after ``(a)'';
            (5) by adding a new paragraph (8) at the end of subsection 
        (a), as designated by paragraph (3), to read as follows:
            ``(8) The right of parents to use mediation in accordance 
        with section 615(d), except that--
                    ``(A) references in that section to the State 
                educational agency shall be understood to refer to the 
                State's lead agency under this part; and
                    ``(B) references in that section to a public agency 
                shall be understood to refer to a local service 
                provider or the State's lead agency under this part, as 
                the case may be.''; and
            (6) in subsection (b), as redesignated by paragraph (2), by 
        inserting the heading ``Services During Pendency of 
        Proceedings.'' after ``(b)''.

                 state interagency coordinating council

    Sec. 411. Section 682(b)(1) of the IDEA is amended by adding at the 
end thereof new subparagraphs (H) and (I) to read as follows:
                    ``(H) A representative from a Head Start agency or 
                program in the State.
                    ``(I) A representative from a State agency 
                responsible for child care.''.

                          allocation of funds

    Sec. 412. Section 684 of the IDEA is amended--
            (1) in subsection (a)--
                    (A) by inserting ``up to'' before ``1 percent'';
                    (B) by striking out ``the Republic of the Marshall 
                Islands, the Federated States of Micronesia, the 
                Republic of Palau,'';
                    (C) by redesignating subsection (a) as paragraph 
                (1) of subsection (a); and
                    (D) by adding at the end thereof a new paragraph 
                (2) to read as follows:
    ``(2) 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.'';
            (2) by redesignating subsections (c) and (d) as subsections 
        (e) and (f), respectively;
            (3) by inserting, after subsection (b), new subsections (c) 
        and (d) to read as follows:
    ``(c) The Secretary shall reserve up to .05 of one percent of the 
amount appropriated under section 687 for any fiscal year for the 
operations of the Federal Interagency Coordinating Council under 
section 685, other than activities of the panel of experts under 
section 686.
    ``(d) The Secretary may reserve up to $100,000 for the expenses of 
the panel of experts established under section 686.'';
            (4) in subsection (e), as redesignated by paragraph (2)--
                    (A) in paragraph (1)--
                            (i) by striking out ``paragraphs (3), (4), 
                        and (5)'' and inserting in lieu thereof 
                        ``paragraphs (2), (3), and (4),''; and
                            (ii) by striking out ``subsections (a) and 
                        (b)'' and inserting in lieu thereof 
                        ``subsections (a) through (d) and section 
                        646(b)'';
                    (B) by striking out paragraph (2);
                    (C) by redesignating paragraphs (3) through (6) as 
                paragraphs (2) through (5), respectively;
                    (D) in paragraph (2), as so redesignated--
                            (i) by striking out ``paragraphs (4) and 
                        (5)'' and inserting in lieu thereof 
                        ``paragraphs (3) and (4)'';
                            (ii) by striking out ``greater'' and 
                        inserting in lieu thereof ``greatest'';
                            (iii) in subparagraph (A), by striking out 
                        ``paragraph (1), excluding any amounts allotted 
                        under paragraph (2); or'' and inserting in lieu 
                        thereof ``paragraph (1);'';
                            (iv) in subparagraph (B), by striking out 
                        the period at the end thereof and inserting in 
                        lieu thereof a semicolon and ``or''; and
                            (v) by adding at the end thereof a new 
                        subparagraph (C) to read as follows:
                    ``(C) for any fiscal year for which the total 
                amount appropriated to carry out this part exceeds the 
                total amount appropriated to carry out this part for 
                the preceding fiscal year by a percentage greater than 
                the most recent percentage change in the Fixed Weight 
                Gross National Product price index, an amount equal to 
                the State's allotment for the preceding fiscal year 
                increased by the percentage change in the Fixed Weight 
                Gross National Product price index.'';
                    (E) in paragraph (3), as redesignated by 
                subparagraph (C), by striking out ``paragraph (5)'' and 
                inserting in lieu thereof ``paragraph (4)'' and
                    (F) in paragraph (5), as redesignated by 
                subparagraph (C)--
                            (i) by striking out ``paragraph (1)'' and 
                        inserting in lieu thereof ``this subsection''; 
                        and
                            (ii) by amending subparagraph (B) to read 
                        as follows:
                    ``(B) the term `State' means each of the 50 States, 
                the District of Columbia, and the Commonwealth of 
                Puerto Rico.''; and
            (5) in subsection (f), as redesignated by paragraph (2), by 
        striking out ``subsection (c)(1)'' and inserting in lieu 
        thereof ``subsection (e)(1)''.

                federal interagency coordinating council

    Sec. 413. (a) Purpose of Council.--Section 685(a)(1) of the IDEA is 
amended by inserting a comma and ``including at-risk infants and 
toddlers,'' after ``infants and toddlers with disabilities''.
    (b) Composition of the Council.--Section 685(b)(18) of the IDEA is 
amended--
            (1) by striking out ``at least 3''; and
            (2) by inserting a comma and ``who shall constitute at 
        least 20 percent of the members of the Council'' before the 
        semicolon at the end thereof.
    (c) Functions of the Council.--Section 685(d)(1) of the IDEA is 
amended to read as follows:
            ``(1) advise and assist the Secretaries of Education, 
        Health and Human Services, Defense, Agriculture, and the 
        Interior and the Commissioner of the Social Security 
        Administration in the performance of their responsibilities 
        related to serving children aged birth through five who are 
        eligible for services under this part or under part B of this 
        Act;''.
    (d) FACA Inapplicable.--Section 685 of the IDEA is further amended 
by adding at the end thereof a new subsection (f) to read as follows:
    ``(f) The Federal Advisory Committee Act shall not apply to the 
establishment or operation of the Council.''.

             study of definition of ``developmental delay''

    Sec. 414. (a) Redesignation of Section.--Section 686 of the IDEA is 
redesignated as section 687.
    (b) Definition of ``Developmental Delay''.--Part H of the IDEA is 
amended by inserting after section 685 a new section 686 to read as 
follows:

             ``study of definition of `developmental delay'

    ``Sec. 686. (a) Panel of Experts.--(1) Within three months of the 
enactment of the Individuals with Disabilities Education Act Amendments 
of 1995, the Federal Interagency Coordinating Council established under 
section 685 shall convene a panel of experts to develop recommendations 
to the Secretary for a uniform national definition of the term 
``developmental delay'' as that term is used in this part.
    ``(2) The panel shall include recognized experts in--
            ``(A) health and child development, whose work includes--
                    ``(i) the evaluation and assessment of infants and 
                toddlers with disabilities;
                    ``(ii) the study of congenital or perinatal 
                disorders in children; or
                    ``(iii) the measurement of developmental milestones 
                in infants and toddlers;
            ``(B) the administration of disability programs for young 
        children; and
            ``(C) other fields that the Secretary finds appropriate.
    ``(3) The panel shall also--
            ``(A) have no more than 12 members; and
            ``(B) include at least one parent of a child with a 
        disability under the age of six.
    ``(b) Panel Recommendations.--The panel shall report its 
recommendations to the Secretary not later than nine months after the 
enactment of the Individuals with Disabilities Education Act Amendments 
of 1995.
    ``(c) Regulatory Definition.--(1) After receiving the panel's 
recommendations, the Secretary may publish a proposed regulatory 
definition of the term ``developmental delay'' for the purposes of this 
part.
    ``(2) After taking comments from the public on any definition 
proposed under paragraph (1), the Secretary may issue a final 
regulatory definition, which shall not take effect until at least one 
year after it is published.
    ``(d) FACA Inapplicable.--The Federal Advisory Committee Act shall 
not apply to the establishment or operation of the panel convened under 
this section.''.

                    authorization of appropriations

    Sec. 415. Section 687 of the IDEA, as redesignated by section 
414(a), is amended to read as follows:

                   ``authorization of appropriations

    ``Sec. 687. 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 1996 through 2001.''.

                  technical and conforming amendments

    Sec. 416. (a) Section 672 of the IDEA is amended--
            (1) in paragraph (2)(H), by striking out ``section 677'' 
        and inserting in lieu thereof ``section 676''; and
            (2) in paragraph (3), by striking out ``section 676(b)(1)'' 
        and inserting in lieu thereof ``section 675(b)(1)''.
    (b) Subsection (e) of section 676 of the IDEA, as redesignated by 
section 404(b), is amended by striking out ``or guardian'' each place 
it appears.
    (c) Section 678 of the IDEA is amended--
            (1) in subsection (a)(6), by striking out ``and, for the 
        fifth and succeeding fiscal years,'' and inserting in lieu 
        thereof ``and''; and
            (2) in subsection (b)(7), by striking out ``beginning in 
        fiscal year 1992,''.
    (d) Section 679 of the IDEA is amended by striking out ``section 
676'' and inserting in lieu thereof ``section 675''.
    (e) Section 680 of the IDEA is amended--
            (1) by striking out ``or guardian'', ``or a guardian'', 
        ``or guardians'', and ``or guardian's'' each place they appear; 
        and
            (2) in subsection (a), as designated by section 410(3)--
                    (A) by striking out ``section 676(b)(12) shall 
                provide'' and inserting in lieu thereof ``section 
                675(b)(13) shall include''; and
                    (B) in paragraph (1), by striking out ``complaint, 
                which action may be brought'' and inserting in lieu 
                thereof ``complaint''.
    (f) Section 682 of the IDEA is amended--
            (1) in subsection (a)(3), by striking out ``section 
        676(b)(9)'' and inserting in lieu thereof ``section 
        675(b)(10)'';
            (2) in subsection (e)(1)(A), by striking out ``section 
        676(b)(9)'' and inserting in lieu thereof ``section 
        675(b)(10)''; and
            (3) by striking out subsection (g).
    (g) Section 683(a) of the IDEA is amended by striking out ``section 
676(b)(9)'' and inserting in lieu thereof ``section 675(b)(10)''.
    (h) Section 684(b)(2) of the IDEA is amended by striking out ``The 
Secretary of the Interior'' and all that follows through ``shall 
receive'' in subparagraph (B) and inserting in lieu thereof ``For each 
fiscal year, the Secretary of the Interior shall distribute the entire 
payment received under paragraph (1) by providing to each tribe or 
tribal organization''.
    (i) Section 685(b) of the IDEA is amended--
            (1) in paragraph (16), by striking out ``Alcohol, Drug 
        Abuse and Mental Health Administration'' and inserting in lieu 
        thereof ``Substance Abuse and Mental Health Services 
        Administration''; and
            (2) in paragraph (17), by striking out ``Aids'' and 
        inserting in lieu thereof ``AIDS''.
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