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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1578 Introduced in Senate (IS)]

  2d Session
                                S. 1578

 To amend the Individuals with Disabilities Education Act to authorize 
   appropriations for fiscal years 1997 through 2002, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

            February 27 (legislative day, February 23), 1996

 Mr. Frist (for himself and Mr. Harkin) introduced the following bill; 
 which was read twice and referred to the Committee on Labor and Human 
                               Resources

_______________________________________________________________________

                                 A BILL

 
 To amend the Individuals with Disabilities Education Act to authorize 
   appropriations for fiscal years 1997 through 2002, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Individuals with Disabilities 
Education Act Amendments of 1996''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Findings.
Sec. 102. Definitions.
Sec. 103. Office of Special Education Programs.
Sec. 104. Requirements for prescribing regulations.
Sec. 105. Eligibility for financial assistance.
Sec. 106. Administrative provisions applicable to discretionary grant 
                            programs.
Sec. 107. Repeals.
Sec. 108. Transition Rule.
Sec. 109. Effective date.
  TITLE II--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES

Sec. 201. Entitlements and allocations.
Sec. 202. State eligibility.
Sec. 203. Local educational and State agency eligibility.
Sec. 204. Evaluations, individualized education programs, and 
                            educational placements.
Sec. 205. Chapter 1 State agencies.
Sec. 206. Procedural safeguards.
Sec. 207. Withholding and judicial review.
Sec. 208. Administration.
Sec. 209. Evaluation and program information.
Sec. 210. Preschool grants.
Sec. 211. Payments.
Sec. 212. Applicability of definitions.
Sec. 213. Effective dates.
Sec. 214. Conforming and technical amendments.
                       TITLE III--SYSTEMS CHANGE

Sec. 301. Systems change.
Sec. 302. Reauthorization for fiscal year 1997 of authorities relating 
                            to centers and services to meet special 
                            needs of individuals with disabilities.
Sec. 303. Effective date.
              TITLE IV--RESEARCH AND PERSONNEL PREPARATION

Sec. 401. Improving early intervention, educational, and transitional 
                            services and results for children with 
                            disabilities through coordinated research 
                            and personnel preparation.
Sec. 402. Conforming amendments.
Sec. 403. Reauthorization for fiscal year 1997 of authorities relating 
                            to training personnel for the education of 
                            individuals with disabilities.
Sec. 404. Effective date.
     TITLE V--TECHNICAL ASSISTANCE, SUPPORT, AND DISSEMINATION OF 
                              INFORMATION

Sec. 501. Improving early intervention, educational, and transitional 
                            services and results for children with 
                            disabilities through coordinated technical 
                            assistance, support, and dissemination of 
                            information.
Sec. 502. Conforming amendments.
Sec. 503. Reauthorizations for fiscal year 1997.
Sec. 504. Effective date.
            TITLE VI--INFANTS AND TODDLERS WITH DISABILITIES

Sec. 601. Findings and policy.
Sec. 602. Definitions.
Sec. 603. General authority.
Sec. 604. Eligibility.
Sec. 605. Continuing eligibility.
Sec. 606. Requirements for statewide system.
Sec. 607. Individualized family service plan.
Sec. 608. State application and assurances.
Sec. 609. Uses of funds.
Sec. 610. Procedural safeguards.
Sec. 611. State Interagency Coordinating Council.
Sec. 612. Conforming amendment.
Sec. 613. Allocation of funds.
Sec. 614. Federal Interagency Coordinating Council.
Sec. 615. Study of definition of developmental delay.
Sec. 616. Authorization of appropriations.
Sec. 617. Effective date.

SEC. 3. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Individuals with 
Disabilities Education Act (20 U.S.C. 1400 et seq.).

                      TITLE I--GENERAL PROVISIONS

SEC. 101. FINDINGS.

    Section 601 (20 U.S.C. 1400) is amended to read as follows:

``SEC. 601. SHORT TITLE; FINDINGS; POLICY; PURPOSES.

    ``(a) Short Title.--This title may be cited as the `Individuals 
with Disabilities Education Act'.
    ``(b) Findings.--With respect to the provisions of this Act, 
Congress finds the following:
            ``(1)(A) That disability is a natural part of the human 
        experience and in no way diminishes the right of individuals to 
        fully participate in all aspects of American society, including 
        education.
            ``(B) That the right to equal educational opportunities for 
        all children with disabilities is guaranteed by the equal 
        protection clause of the 14th amendment to the United States 
        Constitution.
            ``(C) That improving educational results for children with 
        disabilities is an essential element in ensuring equality of 
        opportunity in all aspects of society.
            ``(D) That it is in the national interest that students 
        with disabilities leave school with the skills necessary to be 
        included and integrated in the economic and social fabric of 
        society and to live independently.
            ``(2) That prior to the enactment of the Education for All 
        Handicapped Children Act of 1975 (Public Law 94-142), 1,000,000 
        children with disabilities in the United States were excluded 
        entirely from the public school system, and more than one-half 
        of all children with disabilities in the United States did not 
        receive appropriate educational services, either because their 
        disabilities were undetected, or because of the lack of 
        adequate services within the public school system.
            ``(3) That since the enactment of the Education for All 
        Handicapped Children Act of 1975 (Public Law 19-142), 
        significant progress has been made in addressing problems that 
        existed at the time the law was enacted. Progress has been made 
        in the following manner:
                    ``(A) Every State now ensures a free appropriate 
                public education to all children with disabilities 
                within the State between the ages of 3 and 18, and most 
                States extend that provision through age 21.
                    ``(B) Over 5,000,000 children with disabilities are 
                receiving special education and related services.
                    ``(C) All States now provide early intervention 
                services to infants and toddlers with disabilities from 
                birth through age 2 and to families of such infants and 
                toddlers.
            ``(4) That based on 20 years of experience and research in 
        the education of children with disabilities, there is a general 
        recognition of the following:
                    ``(A) The provision of quality education and 
                services to children with disabilities must be based on 
                an individualized assessment of each child's unique 
                needs and abilities.
                    ``(B) To the maximum extent appropriate, children 
                with disabilities must be educated with children who 
                are not disabled and children with disabilities should 
                be removed from the regular educational environment 
                only when the nature and severity of the disability is 
                such that education in regular classes with the use of 
                supplementary aids and services cannot be achieved 
                satisfactorily.
                    ``(C) Students with disabilities achieve at 
                significantly higher levels when schools have high 
                expectations (and establish high goals) for such 
                students, ensure the access of such students to the 
                general curriculum (whenever appropriate), and provide 
                such students with the necessary services and supports.
                    ``(D) That including children with disabilities in 
                general State and districtwide assessments is an 
                effective accountability mechanism and a critical 
                strategy for improving educational results for such 
                children.
                    ``(E) The provisions of this Act should be aligned 
                with general educational reforms with respect to the 
                improvement of education for all children, so that 
                children with disabilities have the opportunity to 
                benefit from such reforms.
                    ``(F) Parent participation is a crucial component 
                in the education of children with disabilities, and 
                parents should have meaningful opportunities, through 
                appropriate training, dissemination of information and 
                other supports, to participate as partners with 
                teachers and other school staff in assisting their 
                children to achieve to high standards.
                    ``(G) School administrators must have the resources 
                and skills needed to ensure that school environments 
                are safe and conducive to learning.
            ``(5)(A) State and local educational agencies must be 
        responsive to the increasing racial, ethnic, and linguistic 
        diversity that prevails in the Nation's public schools today.
            ``(B)(i) Greater efforts are needed to prevent the 
        intensification of problems connected with inappropriately 
        identifying and mislabeling children from minority backgrounds 
        as children with disabilities.
            ``(ii) More minority children continue to be served in 
        special education than would be expected from the percentage of 
        such children in the general school population.
            ``(iii) Poor African American students are 2.5 times more 
        likely to be identified by their school as mentally retarded 
        than are their white counterparts, and such students are also 
        more likely to be educated in segregated settings.
            ``(iv) A disproportionate number of such students drop out 
        of school, fail to enroll in postsecondary programs, and fail 
        to participate in competitive long-term employment.
            ``(v) Disproportionality in identification may be explained 
        in part by the relationship between poverty and disability, 
        which is well documented. Poor prenatal care and nutrition are 
        factors that contribute to higher rates of disability within 
        minority populations. However, disproportionality may be due to 
        misclassification of minority children as disabled and 
        inappropriate placement of minority children, particularly in 
        separate settings, which raises civil rights concerns.
            ``(C) Children with limited English proficiency continue to 
        be underidentified as needing special education services than 
        would be expected from the percentage of such children in the 
        general school population.
            ``(D) Based on 20 years of experience in both general and 
        special education, there is general recognition today that the 
        problems associated with ensuring an appropriate education for 
        children from diverse backgrounds can be effectively addressed 
        when the following are done:
                    ``(i) The procedures used for referring and 
                evaluating children with disabilities include 
                appropriate safeguards to prevent the over- or 
                underidentification of minority students requiring 
                special education.
                    ``(ii) Prereferral intervention strategies are 
                adopted, as appropriate, especially in elementary 
                schools.
                    ``(iii) Services, supports, and other assistance 
                are provided in a culturally competent manner.
                    ``(iv) Greater efforts are made to improve post-
                school results among minority students with 
                disabilities.
            ``(6) That it is in the national interest that the Federal 
        Government has a role with respect to the following:
                    ``(A) Assisting State and local efforts to educate 
                children with disabilities in order to improve 
                educational and transitional results for such children, 
                and to ensure equal protection of the law.
                    ``(B) Assisting States in the provision of early 
                intervention services.
                    ``(C) Promoting the improvement of educational and 
                transitional services and results for children with 
                disabilities and early intervention services for 
                infants and toddlers with disabilities by supporting 
                systems change activities carried out by the State 
                educational agency, coordinated research and personnel 
                preparation, coordinated technical assistance, 
                dissemination, and support, and technology development 
                and media services.
    ``(c) Purposes.--The purposes of this Act are to--
            ``(1)(A) 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 the unique needs of such children and enable such children 
        to lead productive, independent adult lives;
            ``(B) ensure that the rights of children with disabilities 
        and their parents are protected; and
            ``(C) assist States and localities to provide for the 
        education of all children with disabilities;
            ``(2) assist States in the implementation of a statewide, 
        comprehensive, coordinated, multidisciplinary, interagency 
        system of early intervention services for infants and toddlers 
        with disabilities and their families;
            ``(3) promote the improvement of educational and 
        transitional services and results for children with 
        disabilities and early intervention services for infants and 
        toddlers with disabilities by supporting--
                    ``(A) systems change activities by State 
                educational agencies in partnership with other 
                interested parties;
                    ``(B) coordinated research and personnel 
                preparation; and
                    ``(C) coordinated technical assistance, 
                dissemination, and support, and technology development 
                and media services; and
            ``(4) assess and ensure the effectiveness of efforts to 
        educate children with disabilities and to provide early 
        intervention services for infants and toddlers with 
        disabilities.''.

SEC. 102. DEFINITIONS.

    (a) Section Heading.--Section 602 (20 U.S.C. 1401) is amended--
            (1) by striking the section heading and inserting the 
        following:

``SEC. 602. DEFINITIONS.'';

        and
            (2) by striking ``Sec. 602.''.
    (b) Terms.--Section 602(a) (20 U.S.C. 1401(a)) is amended--
            (1) in paragraph (1)(A)--
                    (A) by striking ``(1)(A) The term'' and all that 
                follows through ``children--'' and inserting the 
                following:
            ``(1) Child with a disability; child with a disability aged 
        3 through 5; children with disabilities.--
                    ``(A) Child with a disability.--The term `child 
                with a disability' means a child--'';
                    (B) in clause (i)--
                            (i) by striking ``hearing impairments'' and 
                        inserting ``a hearing impairment'';
                            (ii) by striking ``speech or language 
                        impairments, visual impairments'' and inserting 
                        ``a speech or language impairment, a visual 
                        impairment''; and
                            (iii) by striking ``other health 
                        impairments, or specific learning 
                        disabilities'' and inserting ``any other health 
                        impairment, or a specific learning 
                        disability'';
                    (C) in clause (ii), by striking ``need'' and 
                inserting ``needs''; and
                    (D) by realigning the margins of clauses (i) and 
                (ii) so as to align with clauses (i) and (ii) of 
                paragraph 21(A);
            (2) in paragraph (1)(B)--
                    (A) by striking ``(B) The term'' and all that 
                follows through ``include children--'' and inserting 
                the following:
                    ``(B) Child with a disability aged 3 through 5.--At 
                the discretion of the State, the term `child with a 
                disability' includes a child aged 3 through 5--'';
                    (B) in clause (i), by striking ``(i) experiencing 
                developmental delays'' and inserting ``(i) who is 
                experiencing a developmental delay'';
                    (C) in clause (ii), by striking ``need'' and 
                inserting ``needs'';
                    (D) by realigning the margins of subparagraph (B) 
                so as to align with subparagraph (B) of paragraph (11); 
                and
                    (E) by realigning the margins of clauses (i) and 
                (ii) so as to align with clauses (i) and (ii) of 
                paragraph (21)(A);
            (3) by inserting after paragraph (1)(B), the following new 
        subparagraph:
            ``(C) Children with disabilities.--The term `children with 
        disabilities' means more than 1 child with a disability.'';
            (4) in paragraph (4), by striking ``The term'' and 
        inserting ``Construction.--The term'';
            (5) in paragraph (5), by striking ``The term'' and 
        inserting Equipment.--The term'';
            (6) in 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.'';
            (7) in paragraph (7), by striking ``The term'' and 
        inserting ``State educational agency.--The term'';
            (8) in 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--
                            ``(i) 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
                            ``(ii) for a combination of school 
                        districts or counties as are recognized in a 
                        State as an administrative agency for the 
                        public elementary or secondary schools of the 
                        State;
                    ``(B) any other public institution or agency having 
                administrative control and direction of a public 
                elementary or secondary school; or
                    ``(C) an educational service agency, as defined in 
                paragraph (7).'';
            (9) in paragraph (9), by striking ``The term'' and 
        inserting ``Elementary school.--The term'';
            (10) in paragraph (10), by striking ``The term'' and 
        inserting ``Secondary school.--The term'';
            (11) in paragraph (11), to read as follows:
            ``(11) Institution of higher education.--The term 
        `institution of higher education'--
                    ``(A) has the meaning given to such term by section 
                1201(a) of the Higher Education Act of 1965 (20 U.S.C. 
                1141(a)); and
                    ``(B) includes any community college receiving 
                funding from the Secretary of the Interior under the 
                Tribally Controlled Community College Assistance Act of 
                1978 (25 U.S.C. 1801 et seq.).'';
            (12) in paragraph (12), by striking ``The term'' and 
        inserting ``Nonprofit.--The term'';
            (13) by striking paragraph (13);
            (14) in paragraph (14), by striking ``The term'' and 
        inserting ``Secretary.--The term'';
            (15) in paragraph (15), to read as follows:
            ``(15) Specific learning disability.--The term `specific 
        learning disability'--
                    ``(A) means a disorder--
                            ``(i) in one or more of the basic 
                        psychological processes involved in 
                        understanding or in using language, spoken or 
                        written; and
                            ``(ii) that may manifest itself in 
                        imperfect ability to listen, think, speak, 
                        read, write, spell, or do mathematical 
                        calculations;
                    ``(B) includes such conditions as perceptual 
                disabilities, brain injury, minimal brain dysfunction, 
                dyslexia, and developmental aphasia; and
                    ``(C) does not include a learning problem that is 
                primarily the result of visual, hearing, or motor 
                disabilities, of mental retardation, of emotional 
                disturbance, or of environmental, cultural, or economic 
                disadvantage.'';
            (16) in paragraph (16)--
                    (A) by striking ``The term'' and inserting 
                ``Special education.--The term''; and
                    (B) by striking ``or guardians'';
            (17) in paragraph (17)--
                    (A) by striking ``The term'' and inserting 
                ``Related services.--The term'';
                    (B) by striking ``speech pathology and audiology'' 
                and inserting ``speech-language pathology services and 
                audiology services''; and
                    (C) by striking ``rehabilitation counseling,'' and 
                inserting ``rehabilitation counseling, orientation and 
                mobility services,'';
            (18) in paragraph (18)--
                    (A) by striking ``The term'' and inserting ``Free 
                appropriate public education.--The term''; and
                    (B) in subparagraph (D), by striking ``required 
                under section 614(a)(5)'' and inserting ``requirements 
                under subsections (d) through (j) of section 614'';
            (19) by striking paragraph (19);
            (20) in paragraph (20), to read as follows:
            ``(20) Individualized education program; iep.--The term 
        `individualized education program' and the term `IEP' mean a 
        written statement for each child with a disability that is 
        developed, reviewed, and revised in accordance with subsections 
        (d) through (j) of section 614.'';
            (21) in paragraph (21)--
                    (A) by striking ``The term'' and inserting ``Excess 
                costs.--The term'';
                    (B) in subparagraph (A)--
                            (i) in clause (i), by striking ``this 
                        part'' and inserting ``part B'';
                            (ii) in clause (ii), by striking ``under 
                        title I'' and inserting ``under part A of title 
                        I''; and
                            (iii) in clause (iii), by striking ``title 
                        VII of the Elementary and Secondary Education 
                        Act of 1965'' and inserting ``part A of the 
                        Bilingual Education Act''; and
                    (C) in subparagraph (B), by striking ``such part, 
                chapter, or title'' and inserting ``a part referred to 
                in subparagraph (A)'';
            (22) in paragraph (22)--
                    (A) by striking ``The term'' and inserting ``Native 
                language.--The term''; and
                    (B) by striking ``section 7003(a)(2)'' and 
                inserting ``section 7501(11)'';
            (23) in paragraph (23)--
                    (A) by striking ``The term `intermediate 
                educational unit' means'' and inserting ``Educational 
                service agency.--The term `educational service agency' 
                means''; and
                    (B) by striking ``local educational agency,'' and 
                inserting ``local educational agency described in 
                subparagraphs (A) and (B) of paragraph (19),'';
            (24) in paragraph (24), to read as follows:
            ``(24) Indian; indian tribe.--
                    ``(A) Indian.--The term `Indian' means an 
                individual who is a member of an Indian tribe.
                    ``(B) Indian tribe.--The term `Indian tribe' means 
                any Federal or State Indian tribe, band, rancheria, 
                pueblo, colony, or community, including any Alaska 
                Native village or regional village corporation (as 
                defined in or established under the Alaska Native 
                Claims Settlement Act).'';
            (25) in paragraph (25), by striking ``The term'' and 
        inserting ``Assistive technology device.--The term'';
            (26) in paragraph (26), by striking ``The term'' and 
        inserting ``Assistive technology service.--The term'';
            (27) in paragraph (27), to read as follows:
            ``(27) Unserved and underserved.--The terms `unserved' and 
        `underserved', with respect to populations include populations 
        such as individuals with disabilities who are from racial and 
        ethnic minority backgrounds, who are disadvantaged individuals, 
        who are individuals with limited English proficiency, and who 
        are individuals from underserved geographic areas, both urban 
        and rural.'';
            (28) by redesignating paragraphs (1), (5), (6), (7), (8), 
        (9), (10), (11), (12), (14), (15), (16), (17), (18), (20), 
        (21), (22), (23), (24), (25), (26), and (27) as paragraphs (4), 
        (9), (30), (31), (19), (8), (26), (18), (21), (27), (29), (28), 
        (25), (11), (15), (10), (20), (7), (14), (1), (2), and (34), 
        respectively;
            (29) by inserting after paragraph (2) (as so redesignated 
        by paragraph (28)) the following new paragraph:
            ``(3) Behavior management plan.--The term `behavior 
        management plan' means a plan consisting of strategies and 
        services to address the behavior of a child with a disability 
        and to help the child learn socially appropriate and 
        responsible behavior in the school and other community-based 
        educational settings.'';
            (30) by inserting after paragraph (5) (as so redesignated 
        by paragraph (28)) the following new paragraph:
            ``(6) Disability.--The term `disability', except with 
        respect to an infant or toddler with a disability, means an 
        impairment or other condition described in paragraph (4) 
        (relating to the definition of a child with a disability).'';
            (31) by inserting after paragraph (11) (as so redesignated 
        by paragraph (28)) the following new paragraphs:
            ``(12) General education curriculum.--The term `general 
        education curriculum' means the curriculum adopted by the local 
        educational agency for all children from preschool through 
        secondary school.'';
            ``(13) Inappropriately identified.--The term 
        `inappropriately identified' with respect to population means a 
        population of students from rural and ethnic minority 
        backgrounds in which students are over- or under-identified as 
        having disabilities.'';
            (32) by inserting after paragraph (15) (as so redesignated 
        by paragraph (28)) the following new paragraphs:
            ``(16) Individualized family service plan; ifsp.--The term 
        `individualized family service plan' and the term `IFSP' mean a 
        written plan for providing early intervention services to each 
        infant and toddler with a disability that meets the 
        requirements of section 677(d).
            ``(17) Infant or toddler with a disability; infants and 
        toddlers with disabilities.--The terms `infant or toddler with 
        a disability' and `infants and toddlers with disabilities' have 
        the meanings given the terms in section 672.'';
            (33) by inserting after paragraph (21) (as so redesignated 
        by paragraph (28)), the following new paragraphs:
            ``(22) Outlying areas.--The term `outlying areas' means the 
        Virgin Islands, Guam, American Samoa, Commonwealth of the 
        Northern Mariana Islands, Republic of the Marshall Islands, 
        Federated States of Micronesia, and the Republic of Palau.
            ``(23) Parent.--The term `parent' includes a legal 
        guardian.
            ``(24) Public or private nonprofit agency or 
        organization.--The term `public or private nonprofit agency or 
        organization' includes an Indian tribe and tribally controlled 
        schools funded by the Department of the Interior.'';
            (34) by inserting after paragraph (31) (as so redesignated 
        by paragraph (28)) the following new paragraph:
            ``(32) Supplementary aids and services.--The term 
        `supplementary aids and services' means aids, services, and 
        other supports that are provided in regular education classes 
        to enable children with disabilities to be educated with 
        nondisabled children to the maximum extent appropriate, in 
        accordance with section 612(a)(5).'';
            (35) by inserting after paragraph (32) (as so redesignated 
        by paragraph (28)) the following new paragraph:
            ``(33) Systems change activities; systems change 
        outcomes.--
                    ``(A) Systems change activities.--The term `systems 
                change activities' means efforts to design, implement, 
                and evaluate strategies and activities leading to 
                systems change outcomes.
                    ``(B) Systems change outcomes.--The term `systems 
                change outcomes' means systemswide changes in policies, 
                procedures, practices, training, or use of personnel, 
                parents, and school-age peers of children with 
                disabilities that benefit and improve the early 
                intervention, educational, and transitional services 
                and results of children with disabilities.''; and
            (36) by striking ``(a) As used in this title--'' and 
        inserting the following:
    ``(a) Terms.--Except as otherwise provided, the following terms 
have the following meanings as used in this Act:''.
    (c) Youth With a Disability.--Section 602(b) (20 U.S.C. 1401(b)) is 
amended to read as follows:
    ``(b) References to act or title.--If a provision of this title 
refers to the term `this title' or `this Act', the provision shall be 
deemed to refer to the Individuals with Disabilities Education Act.''

SEC. 103. OFFICE OF SPECIAL EDUCATION PROGRAMS.

    Section 603 (20 U.S.C. 1402) is amended by adding at the end 
thereof the following new subsection:
    ``(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.''.

SEC. 104. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

    Section 608(a) (20 U.S.C. 1407(a)) is amended by striking ``(a) For 
purposes'' and all that follows through ``days.'' and inserting the 
following: ``(a) The Secretary shall provide a public comment period of 
at least 90 days on any regulation proposed under part B for which a 
time period for an opportunity for public comment is otherwise 
required.''.

SEC. 105. ELIGIBILITY FOR FINANCIAL ASSISTANCE.

    Section 609 (20 U.S.C. 1408) is amended to read as follows:

``SEC. 609. ELIGIBILITY FOR FINANCIAL ASSISTANCE.

    ``The Secretary may not make a grant under parts C through E 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 3 through 5, unless the 
State is eligible to receive a grant under section 619.''.

SEC. 106. ADMINISTRATIVE PROVISIONS APPLICABLE TO DISCRETIONARY GRANT 
              PROGRAMS.

    (a) In General.--Section 610 (20 U.S.C. 1409) is amended to read as 
follows:

``SEC. 610. ADMINISTRATIVE PROVISIONS FOR DISCRETIONARY GRANT PROGRAMS.

    ``(a) Findings With Respect to Addressing Diversity Under Parts D 
and E.--With respect to this section and parts D and E, Congress finds 
the following:
            ``(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) Recent data indicate that the number of African 
        American and Hispanic children in schools, and in special 
        education, continues to rise, and the number of minority 
        teachers and related services personnel produced in the 
        colleges and universities of the United States continues to 
        decrease.
            ``(2) There is a compelling national interest in aiding 
        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 interest of 
        the United States so that the access to, and the quality of, 
        postsecondary education are enhanced for all students.
            ``(3)(A) Historically Black Colleges and Universities and 
        other institutions of higher education with substantial 
        minority enrollments have an important role in the development 
        of a professional workforce in special education and related 
        services 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 the field of 
        special education and other related fields. Upon completing 
        their education at such colleges and universities and 
        institutions, many low-income and minority students become 
        teachers or professionals in related fields and provide 
        services to children with disabilities in inner-city urban and 
        rural areas that have experienced significant shortages in 
        qualified personnel.
            ``(B) Recent data indicate that the Historically Black 
        Colleges and Universities enroll nearly 50 percent of the 
        African American teacher trainees in the United States. 
        However, during the time period covered by the data, such 
        colleges and universities received only 4 percent of the 
        discretionary funds for special education and related services 
        personnel training under this Act.
    ``(b) Comprehensive Plan.--
            ``(1) In general.--The Secretary shall develop and 
        implement a comprehensive plan for activities under parts D and 
        E in order to enhance the provision of educational, related, 
        and early intervention services to children with disabilities 
        under parts B and H. Such plan shall include mechanisms to 
        address early intervention, educational, and transitional needs 
        identified by States in applications submitted for systems 
        change grants funded under part C.
            ``(2) Participants in plan development.--In developing the 
        plan described in paragraph (1), the Secretary shall involve--
                    ``(A) individuals with disabilities;
                    ``(B) parents of children with disabilities;
                    ``(C) appropriate professionals; and
                    ``(D) representatives of State and local 
                educational agencies, private schools, 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.
        The Secretary shall publish the plan in the Federal Register 
        for public comment.
            ``(3) Distribution of funds.--In implementing the plan 
        described in paragraph (1), the Secretary shall, to the extent 
        appropriate, ensure that funds are awarded to recipients under 
        parts D and E to carry out activities that benefit, directly or 
        indirectly, children with disabilities of all ages.
    ``(c) Eligible Applicants.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the following entities are eligible to apply for a 
        grant, contract, or cooperative agreement under parts D and E:
                    ``(A) A State educational agency.
                    ``(B) A local educational agency.
                    ``(C) An institution of higher education.
                    ``(D) Any other public agency.
                    ``(E) A private nonprofit organization.
                    ``(F) An outlying area.
                    ``(G) An Indian tribe.
                    ``(H) A for-profit organization, if the Secretary 
                determines that such organization is an appropriate 
                entity to be eligible to apply for a grant, contract, 
                or cooperative agreement under parts D and E.
            ``(2) Special rule.--The Secretary may limit the award of a 
        grant, contract, or cooperative agreement to one or more 
        categories of eligible entities described in paragraph (1).
            ``(3) Limitation on the use of funds by the secretary.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law and subject to subparagraph (B), the 
                Secretary may use not more than 20 percent of the total 
                funds available under parts D and E to carry out an 
activity or combination of activities, if--
                            ``(i) the activity or combination of 
                        activities is consistent with the purposes of 
                        parts D and E (subject to such conditions as 
                        the Secretary determines are appropriate to 
                        effectively carry out the purposes of such 
                        parts); and
                            ``(ii) the activity or combination of 
                        activities involves coordinated research, 
                        personnel preparation, parent training and 
                        information, coordinated technical assistance 
                        and dissemination, technology development, 
                        demonstration and utilization, or media 
                        services.
                    ``(B) Special rules.--
                            ``(i) Single activity.--In carrying out an 
                        activity described in subparagraph (A), the 
                        Secretary shall use only the portion of funds 
                        made available for an activity under parts D 
                        and E (whichever is applicable) that relates to 
                        the activity described in subparagraph (A).
                            ``(ii) Combination of activities.--In 
                        carrying out a combination of activities 
                        described in subparagraph (A), the Secretary 
                        shall use only the portion of funds made 
                        available for activities under parts D and E 
                        (whichever is applicable) that relate to the 
                        combination of activities described in 
                        subparagraph (A).
    ``(d) Special Populations.--
            ``(1) Application requirement.--In making awards of a 
        grant, contract, or cooperative agreement under parts D and E, 
        the Secretary shall, as appropriate, require an applicant to 
        demonstrate how the applicant will address the needs of 
        children with disabilities from unserved, underserved, and 
        inappropriately identified populations.
            ``(2) Outreach and technical assistance.--Notwithstanding 
        any other provision of this Act, the Secretary--
                    ``(A) shall ensure that at least 1 percent of the 
                total amount of funds appropriated for parts D and E is 
                used--
                            ``(i) for outreach and technical assistance 
                        to Historically Black Colleges and 
                        Universities, and to institutions of higher 
                        education with minority enrollments of at least 
                        25 percent, to promote the participation of 
                        such colleges, universities, and institutions 
                        in activities under such parts; and
                            ``(ii) to enable the Historically Black 
                        Colleges and Universities and the institutions 
                        described in clause (i) to assist other 
                        colleges, universities, and institutions in 
                        improving educational and transitional results 
                        for children with disabilities; and
                    ``(B) may reserve funds appropriated under parts D 
                and E to meet the requirement of subparagraph (A).
    ``(e) Priorities.--
            ``(1) In general.--The Secretary shall ensure that a grant, 
        contract, or cooperative agreement under parts D and E is 
        awarded only for activities that are designed to benefit 
        children with disabilities and their families, and the 
        personnel employed to work with such children and their 
        families.
            ``(2) Eligible activities.--Subject to paragraph (1), the 
        Secretary in making an award of a grant, contract, or 
        cooperative agreement under parts D and E may, without 
        rulemaking under section 553 of title 5, United States Code, 
        limit the grant, contract, or cooperative agreement to, or 
        otherwise give priority to, eligible entities that carry out 
        the following activities:
                    ``(A) In general.--Activities relating to personnel 
                preparation, training, research, dissemination of 
                information, technical assistance, technology 
                development and educational media services that address 
                one or more of the following:
                            ``(i) The age ranges of children with 
                        disabilities.
                            ``(ii) The types of disabilities of 
                        children.
                            ``(iii) The school grades of children with 
                        disabilities.
                            ``(iv) The types of educational placements 
                        or early intervention environments of children 
                        with disabilities.
                            ``(v) The types of services provided to 
                        children with disabilities.
                            ``(vi) Content areas such as reading.
                            ``(vii) Effective strategies for helping 
                        children with disabilities learn socially 
                        appropriate and responsible behavior in the 
                        school and other community based educational 
                        settings.
                    ``(B) Activities related to gender-based needs.--
                Activities relating to personnel preparation, training, 
                research, dissemination of information, technical 
                assistance, technology development and educational 
                media services that address the needs of children with 
                disabilities who are of a particular gender.
                    ``(C) Activities related to severity of 
                disability.--Activities relating to personnel 
                preparation, training, research, dissemination of 
                information, technical assistance, technology 
                development and educational media services that address 
                the needs of children based on the severity of the 
                disability of the children.
                    ``(D) Other related activities.--Activities 
                relating to personnel preparation, training, research, 
                dissemination of information, technical assistance, 
                technology development and educational media services 
                that address the needs of the following individuals and 
                areas:
                            ``(i) Low-achieving students.
                            ``(ii) Underserved populations.
                            ``(iii) Children from low-income families.
                            ``(iv) Children with limited English 
                        proficiency.
                            ``(v) Unserved and underserved areas.
                            ``(vi) Children whose behavior interferes 
                        with their learning and socialization.
                            ``(vii) Inappropriatedly identified 
                        populations.
                    ``(E) National activities.--Activities relating to 
                personnel preparation, training, research, 
                dissemination of information, technical assistance, 
                technology development and educational media services 
                that are carried in particular areas of the country, to 
                ensure broad geographic coverage.
                    ``(F) Authorized activities.--Any activity that is 
                expressly authorized in the applicable part.
    ``(f) Applicant and Recipient Responsibilities.--
            ``(1) Development and assessment of projects.--The 
        Secretary shall require that an applicant for, and a recipient 
        of, a grant, contract, or cooperative agreement under parts D 
        and E--
                    ``(A) involve individuals with disabilities or 
                parents of individuals with disabilities in planning, 
                implementing, and evaluating projects; and
                    ``(B) where appropriate, determine whether the 
                project of the applicant and recipient has any 
                potential for replication and adoption by other 
                entities.
            ``(2) Additional responsibilities.--The Secretary may 
        require a recipient of a grant, contract, or cooperative 
        agreement under parts D and E to--
                    ``(A) share in the cost of the project of the 
                recipient;
                    ``(B) prepare the research and evaluation findings 
                and products in formats that are useful for specific 
                audiences, including parents, administrators, teachers, 
                early intervention personnel, related services 
                personnel, and individuals with disabilities;
                    ``(C) disseminate such findings and products; and
                    ``(D) collaborate with other recipients in carrying 
                out the activities described in subparagraphs (B) and 
                (C).
    ``(g) Application Management.--
            ``(1) Standing panels.--
                    ``(A) In general.--The Secretary shall establish 
                and use standing panels of experts who are competent, 
                by virtue of their training, expertise, or experience, 
                to evaluate applications under parts D and E that 
                request more than $75,000 a year in assistance.
                    ``(B) Federal employment limitation.--A majority of 
                each panel described in subparagraph (A) shall be 
                individuals who are not employees of the Federal 
                Government.
            ``(2) Selection and participation of panel members.--
                    ``(A) In general.--The Secretary shall establish 
                criteria to use in the selection of panel members. Such 
                criteria shall ensure that the membership of standing 
                panels includes--
                            ``(i) individuals with knowledge and 
                        expertise on the issues addressed by the 
                        activities authorized by parts D and E; and
                            ``(ii) to the extent practicable, parents 
                        of children with disabilities, individuals with 
                        disabilities, and persons from diverse racial, 
                        ethnic, and cultural backgrounds.
                    ``(B) Membership.--Standing panel membership shall 
                include, at a minimum, individuals who--
                            ``(i) are representatives of institutions 
                        of higher education that plan, develop, and 
                        carry out programs of personnel preparation;
                            ``(ii) design and carry out programs of 
                        research targeted to the improvement of special 
                        education programs and services;
                            ``(iii) have recognized experience and 
                        knowledge necessary to integrate and apply 
                        research findings to improve educational and 
                        transitional results for children with 
                        disabilities;
                            ``(iv) administer programs at the State or 
                        local level in which children with disabilities 
                        participate;
                            ``(v) prepare parents of children with 
                        disabilities to participate in making decisions 
                        about the education of their children;
                            ``(vi) establish policies that affect the 
                        delivery of services to children with 
                        disabilities;
                            ``(vii) are parents of children with 
                        disabilities who are benefiting or have 
                        benefited from coordinated research, personnel 
                        preparation, and technical assistance; and
                            ``(viii) are individuals with disabilities.
                    ``(C) Training.--The Secretary shall provide 
                training to the individuals who are selected as members 
                of the standing panels under this paragraph.
                    ``(D) Term.--Membership on any standing panel shall 
                be for a period of not more than 3 consecutive years.
            ``(3) Secretary's discretion over limited use of 
        discretionary funds for administrative purposes.--
                    ``(A) Expenses and fees of non-federal panel 
                members.--The Secretary may use funds available under 
                parts D and E to pay the expenses and fees of non-
                Federal panel members.
                    ``(B) Administrative support.--The Secretary may 
                not use more than 1 percent of the funds available 
                under parts D and E to pay non-Federal entities for 
                administrative support related to application 
                management.
                    ``(C) Monitoring.--The Secretary may use funds 
                available under parts D and E to pay the expenses of 
                Federal employees to conduct onsite monitoring of 
                projects receiving $500,000 or more, for any fiscal 
                year.
    ``(h) Program Evaluation.--The Secretary may use funds appropriated 
to carry out parts D and E to evaluate activities carried out under 
such parts.
    ``(i) Rules of Construction.--
            ``(1) References to early intervention services.--
                    ``(A) Child with a disability.--If a provision of 
                part C, D, or E refers to services for a child with a 
                disability (or a family member of the child), and the 
                services include early intervention services, the 
                provision shall be deemed to refer to--
                            ``(i) early intervention services for an 
                        infant or toddler with a disability (or a 
                        family member of the infant or toddler, as 
                        appropriate); and
                            ``(ii) the other services referred to in 
                        the provision for a child with a disability (or 
                        a family member of the child, as appropriate).
                    ``(B) Person with a relationship to a child with a 
                disability.--If a provision of part C, D, or E refers 
                to a benefit (such as training or research) for a 
                person (such as a parent or education professional) 
                with a relationship to a child with a disability (or a 
                family member of the child), and the benefit is 
                provided with respect to services that include early 
                intervention services, the provision shall be deemed to 
                refer to--
                            ``(i) the benefit, provided with respect to 
                        early intervention services, for a person with 
                        a relationship to an infant or toddler with a 
                        disability (or a family member of the infant or 
                        toddler, as appropriate); and
                            ``(ii) the benefit, provided with respect 
                        to the other services referred to in the 
                        provision, for a person with a relationship to 
                        a child with a disability (or a family member 
                        of the child, as appropriate).
            ``(2) References to early intervention results.--
                    ``(A) Child with a disability.--If a provision of 
                part C, D, or E refers to results for a child with a 
                disability, and the results include early intervention 
                results, the provision shall be deemed to refer to--
                            ``(i) early intervention results for an 
                        infant or toddler with a disability; and
                            ``(ii) the other results referred to in the 
                        provision for a child with a disability.
                    ``(B) Person with a relationship to a child with a 
                disability.--If a provision of part C, D, or E refers 
                to a benefit (such as training or research) for a 
                person described in paragraph (1)(B)(ii) that is 
                provided to achieve results for a child with a 
                disability, and the results include early intervention 
                results, the provision shall be deemed to refer to--
                            ``(i) the benefit, provided to achieve 
                        early intervention results, for a person with a 
                        relationship to an infant or toddler with a 
                        disability; and
                            ``(ii) the benefit, provided to achieve 
                        other results referred to in the provision, for 
                        a person with a relationship to a child with a 
                        disability.''.

SEC. 107. REPEALS.

    (a) Provisions.--Section 605 (20 U.S.C. 1404) and section 607 (20 
U.S.C. 1406) are repealed.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of enactment of this Act.

SEC. 108. TRANSITION RULE.

    (a) Rule.--The Secretary of Education shall use funds appropriated 
under the Individuals with Disabilities Education Act (20 U.S.C. 1400 
et seq.) for fiscal year 1997 to carry out such administrative 
activities as may be necessary (including activities described in 
section 610 of such Act (as amended in section 106), evaluation of 
applications for financial assistance for fiscal year 1997 under 
subsection (d)(2) of such section 610 and parts C, D, and E of such Act 
(as amended in titles III, IV, and V), selection of recipients of such 
assistance, and promulgation of regulations), to ensure the efficient 
implementation by October 1, 1997, of--
            (1) such parts C, D, and E; and
            (2) the provisions of part A of such Act that relate to 
        activities carried out under such part C, D, or E, with respect 
        to such activities, and subsection (d)(2) of such section 610.
    (b) Construction.--Nothing in this section or the amendments made 
by section 106 shall be construed to grant the Secretary the authority 
to provide assistance to any person, prior to October 1, 1997, to carry 
out any activity under section 610(d)(2) of the Individuals with 
Disabilities Education Act (as amended in section 106) or part C, D, or 
E (as amended in titles III, IV and V) of such Act.
    (c) Fiscal Years 1996 and 1997.--Section 610 of the Individuals 
with Disabilities Education Act (as in effect on the day before the 
date of enactment of this Act) shall apply with respect to 
administrative activities related to the provision of financial 
assistance for fiscal years 1996 and 1997 under parts C through G of 
such Act (as in effect on such date).
    (d) Effective.--This section shall take effect on the date of 
enactment of this Act.

SEC. 109. EFFECTIVE DATE.

    Except as provided in section 107, the amendments made by this 
title shall take effect on October 1, 1997.

  TITLE II--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES

SEC. 201. ENTITLEMENTS AND ALLOCATIONS.

    (a) Within State Distributions.--Section 611 (20 U.S.C. 1411) is 
amended--
            (1) in the matter immediately following subsection 
        (b)(3)(B), by striking ``(c)'' and all that follows through 
        ``(1) Of the funds'' and inserting the following:
    ``(c)(1) Of the funds'';
            (2) in the matter immediately following subsection (c)(1) 
        (as amended by paragraph (1)), by striking ``(2)'' and all that 
        follows through ``(A) From the funds'' and inserting the 
        following:
    ``(2)(A) From the funds''; and
            (3) in subsection (c) (as amended by paragraph (1))--
                    (A) in paragraph (1)--
                            (i) by realigning the margins of 
                        subparagraphs (A) and (B) so as to align with 
                        subclause (i) of paragraph (4)(A); and
                            (ii) in subparagraph (B)--
                                    (I) by striking ``paragraph (4)'' 
                                and inserting ``subsection (d)(3)'';
                                    (II) by striking ``and intermediate 
                                educational units''; and
                                    (III) by striking ``, for use in 
                                accordance with priorities established 
                                under section 612(3)'';
                    (B) in paragraph (2)(A) (as so redesignated by 
                paragraph (2))--
                            (i) by realigning the margins of clauses 
                        (i) and (ii) so as to align with subclause (i) 
                        of paragraph (4)(A);
                            (ii) by realigning the margins of 
                        subclauses (I) and (II) so as to align with 
                        subclause (I) of subsection (d)(2)(A)(i);
                            (iii) in clause (i), by striking 
                        ``administrative costs related to carrying out 
                        sections 612 and 613; and'' and inserting ``the 
                        purpose of administering this part;'';
                            (iv) in clause (ii)--
                                    (I) in subclause (I), by striking 
                                ``in accordance with priorities 
                                established under section 612(3); and'' 
                                and inserting a semicolon;
                                    (II) in subclause (II), by striking 
                                the period at the end thereof and 
                                inserting a semicolon;
                                    (III) by adding at the end thereof 
                                the following:
                    ``(III) to establish and implement the mediation 
                process required by section 615(e); and
                    ``(IV) for activities at the State and local levels 
                to meet the performance goals established by the State 
                under section 612(a)(16); and
            ``(iii) may use the remainder--
                    ``(I) to develop and implement systems change 
                activities under part C;
                    ``(II) to supplement other funds used to develop 
                and implement a statewide fully integrated and 
                coordinated services system that links education, 
                health, social welfare services, support systems, 
                private entities, and community entities in a manner 
                designed to improve the educational and transitional 
                results for children and families (including children 
                with disabilities and their families), but not to 
                exceed 1 percent of the amount received by the State 
                under this section; or
                    ``(III) for other appropriate activities as 
                determined by the State educational agency.
The system described in subclause (II) of clause (iii) shall be 
coordinated with, and to the extent appropriate, support the 
coordinated, services developed by the State under part H.'';
                    (C) in paragraph (3), by striking ``section 
                613(a)(9)'' and inserting ``section 612(a)(18)(A) (ii) 
                and (iii)''; and
                    (D) by striking paragraph (4).
    (b) Subgrants.--Section 611(d) (20 U.S.C. 1411(d)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``or intermediate educational 
                unit'';
                    (B) by striking ``or unit''; and
                    (C) by striking ``and units'';
            (2) by adding at the end thereof the following new 
        paragraphs:
    ``(3)(A) 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 the local educational agency would 
receive, from the combination of funds under this section and section 
619, is less than $7,500.
    ``(B) When a State elects to use its authority under subparagraph 
(A), the State 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.
    ``(C) A State's authority under subparagraph (A) does not apply to 
a State agency that is eligible for a payment under paragraph (2) or 
section 619(g).
    ``(4) 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 such other local 
educational agencies serve.''.
    (c) Outlying Areas.--Section 611 (20 U.S.C. 1411) is amended--
            (1) in the matter immediately following subsection (d), by 
        striking ``(e)'' and all that follows through ``effect).'' and 
        inserting the following:
    ``(e)(1)(A) The jurisdictions to which this subsection applies are 
the outlying areas as defined in section 602.''; and
            (2) in paragraph (2)--
                    (A) by striking ``such jurisdictions are so'' and 
                inserting ``such outlying areas are so'';
                    (B) by striking ``such jurisdiction'' and inserting 
                ``of the outlying areas''; and
                    (C) by striking ``(2) Each jurisdiction'' and 
                inserting ``(B) Each of the outlying areas''; and
            (3) in paragraph (3)--
                    (A) by striking ``each jurisdiction'' and inserting 
                ``each of the outlying areas'';
                    (B) by striking ``such jurisdiction'' and inserting 
                ``each of the outlying areas''; and
                    (C) by striking ``(3) The'' and inserting ``(2) 
                The''; and
            (4) by adding at the end thereof the following new 
        paragraph:
    ``(3) The provisions of section 501 of Public Law 95-134 (48 U.S.C. 
1469a), permitting the consolidation of grants to outlying areas, shall 
not apply to funds such areas receive under this section.''.
    (d) Secretary of the Interior.--Section 611(f) (20 U.S.C. 1411(f)) 
is amended--
            (1) in paragraph (1)--
                    (A) by striking ``for these children'' and 
                inserting ``for children with disabilities aged 3 
                through 21, who are enrolled in programs affiliated 
                with the BIA'';
                    (B) by striking ``aggregate amounts available for 
                all States under this section for that fiscal year'' 
                and inserting ``amount appropriated under subsection 
                (h) for that fiscal year'';
            (2) in paragraph (3)--
                    (A) by striking ``an application that--'' and 
                inserting ``information that--'';
                    (B) in subparagraph (A), to read as follows:
            ``(A) demonstrates that the Department of the Interior 
        meets the appropriate requirements, as determined by the 
        Secretary of Education, of sections 612 (including monitoring 
        and evaluation activities) and 613'';
                    (C) in subparagraph (D), by striking ``section 
                618(b)(1)'' and all that follows through ``required in 
                section 618(g)'' and inserting ``section 618'';
                    (D) in subparagraph (E), by striking ``an assurance 
                that, by October 1, 1992, the Secretary of the Interior 
                and the Secretary of Health and Human Services'' and 
                all that follows through ``memorandum of agreement'' 
                and inserting ``information that describes activities 
                undertaken with regard to the memorandum of agreement 
                between the Secretaries of Interior and Health and 
                Human Services''; and
                    (E) in subparagraph (F)--
                            (i) by striking ``its exercise of'' and 
                        inserting ``the Department of Education's'';
                            (ii) by striking ``of this application'' 
                        and inserting ``related to information 
                        submitted to the Secretary of Education under 
                        this paragraph''; and
                            (iii) by striking ``its duties'' and 
                        inserting ``the duties of the Department of the 
                        Interior'';
            (3) in the matter immediately following paragraph (3)(F), 
        by striking ``application.'' and inserting ``information. The 
        Secretary of the Interior shall submit annually to the 
        Secretary of Education a report that provides a status on the 
        activities as described in subparagraphs (A) through (F) that 
        the Secretary of the Interior is carrying out.'';
            (4) in paragraph (4)--
                    (A) in subparagraph (A)--
                            (i) by striking ``Beginning with'' and all 
                        that follows through ``under section 611(a) for 
                        fiscal year 1992,'' and inserting ``With funds 
                        appropriated under subsection (h),'';
                            (ii) by striking ``aggregate amounts 
                        available for all States under this section'' 
                        and inserting ``amount appropriated under 
                        subsection (h)''; and
                     (B) in subparagraph (B), to read as follows:
    ``(B) The Secretary of the Interior shall distribute the total 
amount of the 0.25 percent under subparagraph (A) by allocating to each 
tribe or tribal organization an amount based on the number of children 
with disabilities, aged 3 through 5, residing on reservations as 
reported annually divided by the total of such children served by all 
tribes or tribal organizations.'';
                    (C) in subparagraph (D)--
                            (i) by striking ``is encouraged to'' and 
                        inserting ``shall'';
                            (ii) by striking ``The above entities'' and 
                        inserting ``The tribe and tribal 
                        organization''; and
                            (iii) by striking ``diagnosis.'' and 
                        inserting ``diagnosis of the children'';
                    (D) in subparagraph (E)--
                            (i) by striking ``a biennial report'' and 
                        inserting ``an annual report'';
                            (ii) by striking ``following the one in 
                        which'' and inserting ``following the year in 
                        which'';
                            (iii) by striking ``a biennial basis'' and 
                        inserting ``an annual basis''; and
                            (iv) by striking ``under this subsection'' 
                        and inserting ``under paragraph (3) of this 
                        subsection'';
                    (E) in subparagraph (F)--
                            (i) by striking ``(where appropriate, 
                        intermediate educational units)''; and
                            (ii) by striking ``its divisions and 
                        offices'' and inserting ``any appropriate 
                        division or office of the Department of the 
                        Interior'';
            (5) in paragraph (5)--
                    (A) by striking ``January 1, 1992'' and inserting 
                ``June 1, 1997'';
                    (B) by striking ``Committee on Education and 
                Labor'' and inserting ``Chairman of the Committee on 
                Economic and Educational Opportunities'';
                    (C) by striking ``Committee on Labor'' and 
                inserting ``Chairman of the Committee on Labor'';
                    (D) by striking ``interested and involved parties'' 
                and inserting ``interested and involved parties, 
                including parents of Indian children with 
                disabilities''; and
                    (E) by striking ``interested parties'' and 
                inserting ``interested agencies, organizations, or 
                individuals''; and
            (6) in paragraph (6)--
                    (A) by striking ``sections 613(a)(12) of this Act'' 
                and inserting ``section 612(a)(20)'';
                    (B) by striking ``, within 6 months'' and all that 
                follows through ``Bureau of Indian Affairs (BIA),'';
                    (C) in subparagraph (A), by striking ``infants, 
                toddlers, children, and youth'' and inserting ``infants 
                and toddlers and children'';
                    (D) in subparagraph (D), by striking ``and;'' and 
                inserting a semicolon;
                    (E) in subparagraph (E), by striking the period at 
                the end thereof and inserting ``and;''; and
                    (F) by adding at the end thereof the following new 
                subparagraph:
            ``(F) prepare a status report on the educational and 
        transitional results for Indian children with disabilities, to 
        be submitted to the Secretary of the Interior on January 2, 
        1997.''.
    (e) Reporting Dates for Funding Estimates.--Section 611(g) (20 
U.S.C. 1411(g)) is amended--
            (1) in paragraph (1)(C)(i), by striking ``and intermediate 
        educational units''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``or 
                intermediate educational unit''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``and intermediate 
                        educational units'' each place it appears; and
                            (ii) by striking ``or unit'' each place it 
                        appears.

SEC. 202. STATE ELIGIBILITY.

    Section 612 (20 U.S.C. 1412) is amended to read as follows:

``SEC. 612. STATE ELIGIBILITY.

    ``(a) In General.--A State is eligible for assistance under this 
part for any fiscal year if the State demonstrates to the satisfaction 
of the Secretary that the State has in effect policies and procedures 
to ensure that the State meets each of the following conditions:
            ``(1) Free appropriate public education.--
                    ``(A) In general.--A free appropriate public 
                education is available to all children with 
                disabilities aged 3 through 21 who are residing in the 
                State.
                    ``(B) Applicability.--Subparagraph (A) does not 
                apply with respect to children aged 3 through 5 and 18 
                through 21 in a State to the extent that the 
                application of such subparagraph to such children would 
                be inconsistent with the State law or practice, or the 
                order of any court, respecting the provision of public 
                education to children in such 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 the goal.
            ``(3) Child find.--
                    ``(A) In general.--All children with disabilities 
                residing in the State are identified, located, and 
                evaluated, regardless of the severity of the disability 
                of the children.
                    ``(B) Construction.--Nothing in this Act requires 
                that children be classified by their disability 
                provided that each child who has a disability listed in 
                section 602(a)(4)(i) and who, by reason of that 
                disability, needs special education and related 
                services is regarded as a child with a disability under 
                this part.
            ``(4) Individualized education program.--An individualized 
        education program (or an individualized family service plan 
        that meets the content requirements of section 677(d)) is 
        developed, reviewed, and revised in accordance with subsections 
        (d) through (j) of section 614.
            ``(5) Least restrictive environment.--
                    ``(A) In general.--To the maximum extent 
                appropriate, children with disabilities (including 
                children in public or private institutions or other 
                care facilities) are educated with children who are not 
                disabled, and special classes, separate schooling, or 
                other removal of children with disabilities from the 
                regular educational environment occurs only when the 
                nature or severity of a child's disability is such that 
                education in regular classes with the use of special 
                education and related services and supplementary aids 
                and services cannot be achieved satisfactorily.
                    ``(B) Funding.--
                            ``(i) In general.--If the State uses a 
                        funding mechanism by which the State 
                        distributes State funds on the basis of the 
                        type of setting in which a child is served, the 
                        funding mechanism does not result in placements 
                        that violate the requirements of subparagraph 
                        (A).
                            ``(ii) Assurance.--If the State does not 
                        have policies and procedures to ensure 
                        compliance with clause (i), the State shall 
                        provide the Secretary an assurance that the 
                        State will revise the funding mechanism used by 
                        the State as soon as feasible to ensure that 
                        the funding mechanism does not result in such 
                        placements.
                    ``(C) Disproportionality.--
                            ``(i) In general.--Data are examined by the 
                        State educational agency to determine if 
                        significant racial disproportionality is 
                        occurring in the identification of children as 
                        children with disabilities (including the 
                        classification of such children according to a 
                        particular impairment described in section 
                        602(a)(4)) or in the placement of such children 
                        in particular types of settings.
                            ``(ii) Review and revision of policies.--In 
                        the case of an occurrence described in clause 
                        (i), the placement and evaluation policies, 
                        procedures, and practices are reviewed and, if 
                        appropriate, revised, to ensure that such 
                        policies, procedures, and practices comply with 
                        the requirements of this Act.
            ``(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 subsections (a) through (c) of section 614.
            ``(8) Confidentiality.--Agencies in the State comply with 
        section 617(c), relating to the confidentiality of records and 
        information.
            ``(9) Transition from part h to preschool programs.--
                    ``(A) In general.--Children who are participating 
                in early intervention programs under part H and who 
                will participate in preschool programs assisted under 
                this part, are provided an effective transition to such 
preschool programs.
                    ``(B) Transition planning.--Local educational 
                agency personnel will participate in transition 
                planning conferences convened by a designated or 
                established lead agency under section 
                678(a)(8)(A)(ii)(II).
                    ``(C) Individualized education program; 
                individualized family service plan.--By the third 
                birthday of a child who participates in the programs 
                described in subparagraph (A), an individualized 
                education program or, if consistent with section 
                614(d)(1)(B) or 677(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, provision is made for the 
                participation of such children in the program assisted 
                or carried out under this part by providing for such 
                children special education and related services.
                    ``(B) Children placed in, or referred to, private 
                schools by public agencies.--
                            ``(i) In general.--Children with 
                        disabilities in private schools and facilities 
                        are provided special education and related 
                        services, in accordance with individualized 
                        education programs, at no cost to their 
                        parents, if such children are placed in, or 
                        referred to, such 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.
                            ``(ii) Standards.--In all cases described 
                        in clause (i), children with disabilities are 
                        placed in, or referred to, only private schools 
                        and facilities that meet standards that apply 
                        to State and local educational agencies, and 
                        children with disabilities served in such 
                        schools and facilities have all the rights such 
                        children would have if served by such agencies.
                    ``(C) Payment for education of children placed in 
                private schools without consent of or referral by the 
                public agency.--If as a result of mediation described 
                in section 615(d), or as a result of a decision 
                rendered under the procedural safeguards of section 
                615, the parents of a child with a disability who 
                previously received special education and related 
                services under the authority of a local educational 
                agency enroll their child in a private elementary or 
                secondary school without the consent of, or a referral 
                by the local educational agency, the local educational 
                agency may be required to reimburse the parents for the 
                cost of the enrollment. The amount of the reimbursement 
                may be reduced or denied--
                            ``(i) if, prior to the removal of the child 
                        from the public school, the parents do not 
                        provide a statement to the local educational 
                        agency rejecting the placement proposed by the 
                        local educational agency; or
                            ``(ii) upon a judicial finding of 
                        unreasonableness with respect to actions taken 
                        by the parents.
            ``(11) SEA responsible for general supervision.--
                    ``(A) In general.--The State educational agency is 
                responsible for ensuring the following:
                            ``(i) Requirements.--The requirements of 
                        this part are carried out.
                            ``(ii) Educational programs.--All 
                        educational programs for children with 
                        disabilities in the State, including all such 
                        programs administered by any other State or 
                        local agency, are under the general supervision 
                        of the persons in the State educational agency 
                        who are responsible for educational programs 
                        for children with disabilities and meet 
                        educational standards of the State educational 
                        agency.
                    ``(B) Special rule.--Subparagraph (A) shall not be 
                construed as limiting the obligations 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) Obligations related to and methods of ensuring 
        services.--
                    ``(A) In general.--If any public agency other than 
                an educational agency is responsible for providing or 
                paying for the services (such as mental health 
                services, transition services, and health services) 
                that are also necessary for ensuring a free appropriate 
                public education to children with disabilities within 
                the State, such public agency shall pay for, or provide 
                directly or through contract or other arrangement, such 
                services to children with disabilities. In a case in 
                which a local educational agency provides such services 
                to such children, as a result of a contract or other 
                arrangement with a public agency described in this 
                subparagraph, the local educational agency may seek 
                reimbursement from such public agency for the services 
                provided.
                    ``(B) Interagency agreement or other mechanism.--
                Each State shall ensure that an interagency agreement 
                or other mechanism for interagency coordination is in 
                effect between each public agency described in 
                subparagraph (A) and the appropriate educational agency 
                within the State, in order to ensure that all required 
                services are provided. Such agreement or mechanism 
                shall include the following:
                            ``(i) Agency financial responsibility.--An 
                        identification of, or a method for defining, 
                        the financial responsibility of each agency for 
                        providing a free appropriate public education 
                        to children with disabilities.
                            ``(ii) Conditions and terms of 
                        reimbursement.--The conditions and terms of 
                        reimbursement under which a local educational 
                        agency may be reimbursed by other agencies.
                            ``(iii) Interagency disputes.--Procedures 
                        for resolving interagency disputes (including 
                        procedures under which local educational 
                        agencies may initiate proceedings) under the 
                        agreement or other mechanism to secure 
                        reimbursement from other agencies or otherwise 
                        implement the provisions of the agreement.
                            ``(iv) Coordination of services 
                        procedures.--Procedures for agencies to 
                        determine and identify the interagency 
                        coordination responsibilities of each agency 
                        with respect to the provision of services.
                    ``(C) Special rule.--The requirements of 
                subparagraph (B) 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 make a final determination that a 
        local educational agency is not eligible under this part 
        without first affording the local educational 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 and that includes the 
        following:
                    ``(A) Statewide data.--Statewide data that include 
                the number of personnel providing special education and 
                related services, and of that number, the number of 
                individuals with temporary certification, and the 
                number of vacancies.
                    ``(B) Personnel development plan.--A personnel 
                development plan that meets the following requirements:
                            ``(i) Consultations.--The plan is developed 
                        in consultation with parents of children with 
                        disabilities, State and local educational 
                        agencies, institutions of higher education, and 
                        professional associations.
                            ``(ii) Personnel.--The plan addresses or 
                        includes the following:
                                    ``(I) Personnel needs.--The current 
                                and projected needs for special 
                                education and related services 
                                personnel throughout the State.
                                    ``(II) Service preparation of 
                                personnel.--The plan addresses the need 
                                for the preservice and inservice 
                                preparation of personnel throughout the 
                                State, including regular education 
                                personnel, to provide educational and 
                                related services to children with 
                                disabilities.
                                    ``(III) Recruitment.--The plan 
                                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.
                                    ``(IV) Integration with other 
                                plans.--The plan is integrated, to the 
                                maximum extent possible, with other 
                                professional development plans and 
                                activities, including plans and 
                                activities developed or carried out 
                                under other Federal law and State law 
                                that address personnel recruitment and 
                                training.
                            ``(iii) Revision.--The plan is revised 
                        every 3 years.
            ``(15) Personnel standards.--The State educational agency 
        has established policies and procedures relating to the 
        establishment and maintenance of standards to ensure that 
        personnel necessary to carry out the purposes of this part are 
        appropriately and adequately prepared and trained, including 
        the following:
                    ``(A) Standards.--The establishment and maintenance 
                of standards that are consistent with any State 
                approved or recognized certification, licensing, 
                registration, or other comparable requirements that 
                apply to the area in which such personnel are providing 
                special education or related services.
                    ``(B) Retraining and hiring.--To the extent such 
                standards described in subparagraph (A) are not based 
                on the highest requirements in the State applicable to 
                a specific profession or discipline, the State is 
                carrying out measures to require the retraining or 
                hiring of personnel that meet appropriate professional 
                requirements in the State.
                    ``(C) Use of paraprofessional.--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.
            ``(16) Performance goals and indicators.--
                    ``(A) Goals.--The State has established goals for 
                the performance of children with disabilities in the 
                State that are consistent with the purposes of section 
                601(c)(1) and that are consistent, to the maximum 
                extent appropriate, with other goals and standards 
                established by the State.
                    ``(B) Performance indicators.--The State has 
                established performance indicators that the State will 
                use to assess the progress toward achieving the goals 
                described in subparagraph (A) and that, at a minimum, 
                address the performance of children with disabilities 
                on assessments and the dropout rates and graduation 
                rates of such children.
                    ``(C) Report.--The State will report every 2 years 
                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).
            ``(17) Participation in assessments.--
                    ``(A) Assessments.--
                            ``(i) State and districtwide assessments.--
                        Children with disabilities are included in 
                        general State and districtwide assessment 
                        programs, with appropriate accommodations, 
                        where necessary.
                            ``(ii) Alternate assessments.--The State 
                        educational agency or local educational agency, 
                        as appropriate, will develop guidelines for the 
                        participation of children with disabilities in 
                        alternate assessments for such children who 
                        cannot participate in State and districtwide 
                        assessment programs and as soon as feasible, 
                        but not later than July 1, 1999, will conduct 
                        such alternate assessments.
                    ``(B) Public information.--The State educational 
                agency shall, as soon as feasible, but not later than 
                July 1, 2000, make reports to the public, with the same 
                frequency and in the same detail as the State makes 
                reports on the assessment of nondisabled children, on 
                the following information with respect children with 
                disabilities:
                            ``(i) Regular assessments.--The number of 
                        children with disabilities participating in 
                        regular assessments.
                            ``(ii) Alternate assessments.--The number 
                        of such children participating in alternate 
                        assessments.
                            ``(iii) Performance.--The performance of 
                        children with disabilities on regular 
                        assessments and on alternate assessments when 
                        doing so meets generally accepted professional 
                        standards and would not result in the 
                        disclosure of performance results identifiable 
                        to individual children.
            ``(18) Use of funds.--
                    ``(A) In general.--
                            ``(i) Expenditures.--Funds paid to the 
                        State under this part will be expended in 
                        accordance with all provisions of this part.
                            ``(ii) Noncommingling.--The funds described 
                        in clause (i) will not be commingled with State 
                        funds.
                            ``(iii) Supplement--not supplant.--Except 
                        as provided in subparagraph (B), the funds 
                        described in clause (i) 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 such funds.
                    ``(B) Waiver.--The Secretary may waive, in part, 
                the requirements of clause (iii) of subparagraph (A) 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.--Prior to the adoption of any 
        policies and procedures needed to comply with this section 
        (including any amendments to such 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. In a case in which policies and procedures 
        have been developed by a State educational agency or through a 
        State legislative hearing and comment process that provides an 
        opportunity for comment by the general public prior to the 
        adoption of any policies and procedures by the State, no 
        further public review or public comment period is required.
            ``(20) State advisory panel.--
                    ``(A) In general.--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 the following:
                            ``(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.
                            ``(viii) At least one representative of a 
                        vocational, community, or business organization 
                        concerned with the provision of transition 
                        services to children with disabilities.
                            ``(ix) Any other individual, as determined 
                        by the State educational agency.
                    ``(B) Duties.--The advisory panel shall carry out 
                the following duties:
                            ``(i) Advise the State educational agency 
                        of unmet needs within the State in the 
                        education of children with disabilities.
                            ``(ii) Comment publicly on any rules or 
                        regulations proposed by the State regarding the 
                        following:
                                    ``(I) The education of children 
                                with disabilities.
                                    ``(II) The procedures for 
                                distribution of funds received by the 
                                State under this part.
                            ``(iii) Advise the State educational agency 
                        with respect to developing evaluations and 
                        reporting on data to the Secretary under 
                        section 618.
                            ``(iv) Advise the State educational agency 
                        with respect to developing corrective action 
                        plans to address findings identified in Federal 
                        monitoring reports under this part.
                            ``(v) Advise the State educational agency 
                        with respect to developing and implementing 
                        policies relating to the coordination of 
                        services for children with disabilities.
                    ``(C) Consolidation of panels.--Any State panel 
                that meets the requirement of section 306 of the Goals 
                2000: Educate America Act (20 U.S.C. 5886), or any 
                committee of practitioners created under section 
                1603(b) of the Elementary and Secondary Education Act 
                of 1965 (20 U.S.C. 6513(b)), may also serve as the 
                State Advisory panel under this part if such State 
                panel or committee meets the requirements of this part.
    ``(b) State Educational Agency as Provider of Services.--If the 
State educational agency provides free appropriate public education to 
children with disabilities, or provides such children direct services, 
the State educational agency--
            ``(1) shall comply with any additional requirements of 
        section 613(a) as if the State educational agency were a local 
        educational agency; and
            ``(2) may use funds that are otherwise available to the 
        State educational agency under this part to serve such children 
        without regard to section 613(a)(3)(B) relating to excess 
        costs.
    ``(c) Submission of Eligibility Information.--
            ``(1) Submission of information.--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) Existing information on policies and procedures.--If 
        a State has on file with the Secretary policies and procedures 
        that demonstrate that the State meets any requirement of this 
        section, including any policies and procedures filed under this 
        part as in effect prior to the enactment of the Individuals 
        with Disabilities Education Act Amendments of 1996, the 
        Secretary shall consider the State as meeting that requirement.
            ``(3) Modifications of policies and procedures.--The 
        Secretary may require a State to submit additional eligibility 
        information if the State modifies the policies and procedures 
        that the State has filed with the Secretary consistent with 
        paragraphs (1) and (2).
    ``(d) Secretarial Approval.--
            ``(1) In general.--If the Secretary determines that a State 
        is eligible under this section, the Secretary shall notify the 
        State of the determination.
            ``(2) Limitations.--The Secretary shall make a final 
        determination that a State is not eligible under this section 
        only 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.
    ``(f) Bypass for Children in Private Schools.--
            ``(1) In general.--If, on the date of enactment of the 
        Education of the Handicapped Act Amendments of 1983, a State 
        educational agency is prohibited by law from providing for the 
        participation in special programs of children with disabilities 
        enrolled in private elementary and secondary schools as 
        required by subsection (a)(10)(A), the Secretary shall waive 
        such requirement, and shall arrange for the provision of 
        services to such children through arrangements that shall be 
        subject to the requirements of subsection (a)(10)(A).
            ``(2) Funding.--
                    ``(A) In general.--When the Secretary arranges for 
                services pursuant to this subsection, the Secretary, 
                after consultation with the appropriate public and 
                private school officials, shall pay to the provider of 
                such services an amount per child 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 by the State in the 
                        preceding year as reported to the Secretary 
                        under section 618.
                    ``(B) Withholding of funds.--Pending final 
                resolution of any investigation or complaint that could 
                result in a determination under this subsection that 
                the State is prohibited from complying with subsection 
                (a)(10)(A) by State law, the Secretary may withhold 
from the allocation of the affected State educational agency the amount 
the Secretary estimates would be necessary to pay the cost of such 
services.
                    ``(C) Determinations by the secretary.--Any 
                determination by the Secretary under this subsection 
                shall continue in effect until the Secretary determines 
                that there will no longer be any failure or inability 
                on the part of the State educational agency to meet the 
                requirements of subsection (a)(10)(A).
            ``(3) Final action.--
                    ``(A) Objections.--The Secretary may not take any 
                final action under this subsection until the State 
                educational agency affected by such action has had an 
                opportunity, for at least 45 days after receiving 
                written notice thereof, to submit written objections 
                and to appear before the Secretary or the Secretary's 
                designee to show cause why such action should not be 
                taken.
                    ``(B) Petition for review.--If a State educational 
                agency is dissatisfied with the Secretary's final 
                action after a proceeding under subparagraph (A), the 
                State educational agency may, within 60 days after 
                notice of such action, file with the United States 
                court of appeals for the circuit in which such State is 
                located a petition for review of that action. A copy of 
                the petition shall be forthwith transmitted by the 
                clerk of the court to the Secretary. The Secretary 
                thereupon shall file in the court the record of the 
                proceedings on which the Secretary based the 
                Secretary's action, as provided in section 2112 of 
                title 28, United States Code.
                    ``(C) Findings.--The findings of fact by the 
                Secretary, if supported by substantial evidence, shall 
                be conclusive, but the court, for good cause shown, may 
                remand the case to the Secretary to take further 
                evidence. The Secretary may thereupon make new or 
                modified findings of fact and may modify the 
                Secretary's previous action, and shall file in the 
                court the record of the further proceedings. Such new 
                or modified findings of fact shall likewise be 
                conclusive if supported by substantial evidence.
                    ``(D) Court's action.--Upon the filing of a 
                petition under subparagraph (B), the court shall have 
                jurisdiction to affirm the action of the Secretary or 
                to set it aside, in whole or in part. The judgment of 
                the court shall be subject to review by the Supreme 
                Court of the United States upon certiorari or 
                certification as provided in section 1254 of title 28, 
                United States Code.''.

SEC. 203. LOCAL EDUCATIONAL AND STATE AGENCY ELIGIBILITY.

    Section 613 (20 U.S.C. 1413) is amended to read as follows:

``SEC. 613. LOCAL EDUCATIONAL AGENCY AND STATE AGENCY ELIGIBILITY.

    ``(a) In General.--A local educational agency is eligible for 
assistance under this part for any fiscal year if the local educational 
agency demonstrates to the satisfaction of the State educational agency 
that the local educational agency meets each of the following 
conditions:
            ``(1) Consistency with state policies.--The local 
        educational agency, in providing for the education of children 
        with disabilities within the jurisdiction of the local 
        educational agency, has in effect policies, procedures, and 
        programs that are consistent with the State policies and 
        procedures established under section 612 with respect to the 
        following:
                    ``(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) The identification, location, and evaluation 
                of children with disabilities 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 of children from early 
                intervention programs under part H to preschool 
                programs under section 612(a)(9).
                    ``(J) Children in private schools under section 
                612(a)(10).
            ``(2) Comprehensive system of personnel development.--The 
        local educational agency, to the extent appropriate, 
        contributes to and uses the State's comprehensive system of 
        personnel development established under section 612(a)(14).
            ``(3) Use of funds.--Funds provided to the local 
        educational agency under this part will be expended or used in 
        the following manner:
                    ``(A) Expenditures.--Funds will be expended in 
                accordance with the applicable provisions of this part.
                    ``(B) Excess costs.--Funds will be used only to pay 
                the excess costs of providing special education and 
                related services to children with disabilities.
                    ``(C) Supplement--not supplant.--Funds will be used 
                to supplement State, local, and other Federal funds and 
                not to supplant such funds.
                    ``(D) Level of expenditures.--Except as provided in 
                subparagraph (E), funds 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 such 
                expenditures for the preceding fiscal year.
                    ``(E) Exception.--Notwithstanding the limitation in 
                subparagraph (D), a local educational agency may reduce 
                the level of expenditures for the education of children 
                with disabilities if such reduction is the result of--
                            ``(i) the voluntary departure, by 
                        retirement or otherwise, of special education 
                        personnel who are paid at or near the top of 
                        the agency's salary scale;
                            ``(ii) decreases in enrollment of children 
                        with disabilities;
                            ``(iii) the end of the agency's obligation, 
                        consistent with this part, to provide an 
                        exceptionally costly program of special 
                        education to a particular child with a 
                        disability because the child--
                                    ``(I) has left the agency's 
                                jurisdiction;
                                    ``(II) has reached the age at which 
                                the agency's obligation to provide a 
                                free appropriate public education to 
                                the child terminates; or
                                    ``(III) no longer needs the 
                                program; or
                            ``(iv) the termination of unusually large 
                        expenditures for such long-term purposes as the 
                        acquisition of equipment and the construction 
                        of school facilities.
            ``(4) Permissive use of funds.--Notwithstanding paragraph 
        (3)(B) or section 612(a)(18)(A)(ii) (relating to commingled 
        funds), funds provided to the local educational agency under 
        this part may be used for the following activities:
                    ``(A) Services and aids that also benefit 
                nondisabled children.--For the costs of special 
                education and related services and supplementary aids 
                and services provided in a regular class to a child 
                with a disability in accordance with the individualized 
                education program of the child, even if one or more 
                nondisabled children benefit from such services.
                    ``(B) Services and aids that also benefit other 
                disabled children.--For the costs of special education 
                and related services and supplementary aids and 
                services provided to a child with a disability in 
                accordance with the individualized education program of 
                the child, even if one or more children with 
                disabilities who are protected by section 504 of the 
                Rehabilitation Act of 1973 and title II of 
the Americans with Disabilities Act of 1990 benefit from such services.
                    ``(C) Integrated and coordinated services system.--
                To develop and implement a fully integrated and 
                coordinated services system in accordance with 
                subsection (f).
                    ``(D) School-based improvement plan.--To design, 
                implement, and evaluate a school-based improvement plan 
                (in accordance with subsection (g)) that is consistent 
                with the purposes and authorized activities of part C 
                and that is designed to improve educational and 
                transitional results for all children with disabilities 
                and, as appropriate, other children consistent with 
                subparagraphs (A) and (B).
    ``(b) Submission of Information; Prior Local Educational Agency 
Applications.--
            ``(1) Submission of information.--Except as provided in 
        paragraph (2), a local educational agency that desires to 
        establish its eligibility under this section shall submit to 
        the State educational agency information demonstrating that the 
        local educational agency meets the requirements of subsection 
        (a).
            ``(2) Existing information on policies and procedures.--If 
        a local educational 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 the date of enactment of the Individuals with 
        Disabilities Education Act Amendments of 1996, the State 
        educational agency may consider the local educational agency as 
        meeting such requirement.
            ``(3) Modifications of policies and procedures.--The State 
        educational agency may require a local educational agency to 
        submit additional eligibility information if the local 
        educational agency modifies the policies and procedures that 
        the local educational agency has filed with the Secretary 
        consistent with paragraphs (1) and (2).
    ``(c) State Educational Agency Approval.--
            ``(1) Determination.--
                    ``(A) In general.--If the State educational agency 
                determines that a local educational agency or State 
                agency under subsection (i) is eligible under this 
                section, the State educational agency shall notify the 
                agency of the determination.
                    ``(B) Limitation on state notification.--A State 
                educational agency may not give the notice to an agency 
                described under subparagraph (A) until the Secretary 
                has notified the State educational agency that the 
                State is eligible under section 612.
            ``(2) Limitation on final determination.--The State 
        educational agency may not make a final determination that a 
        local educational agency or State agency under subsection (i) 
        is not eligible under this section until after providing the 
        local educational or State agency--
                    ``(A) reasonable notice; and
                    ``(B) an opportunity for a hearing.
    ``(d) Local Educational Agency and State Agency Compliance.--
            ``(1) In general.--If the State educational agency, after 
        reasonable notice and an opportunity for a hearing, finds that 
        a local educational agency or State agency under subsection (i) 
        that has been found eligible under this section is not in 
        compliance with any of the eligibility requirements described 
        in subsection (a), the State educational agency shall make no 
        further payments to the local educational agency or State 
        agency under section 620 until the State educational agency has 
        determined that the agency is complying with the eligibility 
        requirements described in subsection (a).
            ``(2) Notification of pendency of action.--Section 616(a) 
        with respect to notification of a pending action shall apply to 
        any agency that receives a notice from the State educational 
        agency under this subsection.
            ``(3) Adverse decisions.--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) In general.--A local educational agency may join with 
        another local educational agency to meet the eligibility 
        requirements of this section if the State educational agency 
        determines that the local educational agency would be 
        ineligible under this section because the local educational 
        agency--
                    ``(A) 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) does not qualify for the minimum grant under 
                section 611(d)(3)(A), if the State elects to use its 
                authority under such section.
            ``(2) Requirements.--
                    ``(A) Funding.--If a State educational agency 
                requires a local educational agency to join with 
                another local educational agency to meet the 
                eligibility requirements 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 such local 
                agencies were eligible for such payments.
                    ``(B) Policies and procedures and administration of 
                programs.--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) Educational service agency.--
                            ``(i) If an educational service agency 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 service 
                                agency; and
                                    ``(II) be carried out only by that 
                                service agency.
                            ``(ii) Nothing in this subsection relieves 
                        an educational service agency 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).
    ``(f) Coordinated Services System.--
            ``(1) In general.--A local educational agency may use not 
        more than 5 percent of the amount the agency 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 fully integrated and coordinated 
        service system that links education, health, social welfare 
        services, support systems, private entities, and other 
        community entities in a manner designed to improve educational 
        and transitional results for all children and their families, 
        including all children with disabilities and their families.
            ``(2) Permissible activities.--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 the educational and 
                transitional results;
                    ``(B) service coordination and case management that 
                facilitate the linkage of individualized education 
                programs under this part and individualized family 
                service plans under part H with individualized service 
                plans under other 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 the 
                persons involved in the delivery of coordinated 
                services.
            ``(3) Limitation on use of funds.--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, the local educational agency shall use funds under 
        this subsection in accordance with that title.
    ``(g) School-Based Improvement Plan.--
            ``(1) In general.--Each local educational agency may, in 
        accordance with paragraph (2), use funds made available under 
        this part to permit a local school within the jurisdiction of 
        the local educational agency to design, implement, and evaluate 
        a school-based improvement plan that is consistent with the 
        purposes and authorized activities described in part C and that 
        is designed to improve educational and transitional results for 
        all children with disabilities and, as appropriate, for other 
        children consistent with subsection (a)(4) (A) and (B) in such 
        local school.
            ``(2) Authority.--A State educational agency may grant 
        authority to a local educational agency to permit a local 
        school described in paragraph (1) (through a school-based 
        standing panel established under paragraph (4)(B)) to design, 
        implement, and evaluate a school-based improvement plan 
        described in paragraph (1) for a period not to exceed 3 years.
            ``(3) Plan requirements.--A school-based improvement plan 
        described in paragraph (1) shall--
                    ``(A) be designed to be consistent with the 
                purposes and authorized activities described in part C 
                and to improve educational and transitional results for 
                all children with disabilities and, as appropriate, for 
                other children consistent with subsection (a)(4) (A) 
                and (B), who attend the school for which the plan is 
                designed and implemented;
                    ``(B) be designed, evaluated, and, as appropriate, 
                implemented by a school-based standing panel 
                established in accordance with paragraph (4)(B);
                    ``(C) include goals and measurable indicators to 
                assess the progress of the local school in meeting such 
                goals; and
                    ``(D) ensure that all children with disabilities 
                receive the same level of services in such school as 
                required by the individualized education programs of 
                such children.
            ``(4) Responsibilities of the local educational agency.--A 
        local educational agency that is granted authority under 
        paragraph (2) to permit a local school to design, implement, 
        and evaluate a school-based improvement plan shall--
                    ``(A) select each school under the jurisdiction of 
                such agency that is eligible to design, implement, and 
                evaluate such a plan;
                    ``(B) require each school selected under 
                subparagraph (A), in accordance with criteria 
                established by such local educational agency under 
                subparagraph (C), to establish a school-based standing 
                panel to carry out the duties described in paragraph 
                (3)(B);
                    ``(C) establish--
                            ``(i) criteria that shall be used by such 
                        local educational agency in the selection of an 
                        eligible school under subparagraph (A);
                            ``(ii) criteria that shall be used by a 
                        local school selected under subparagraph (A) in 
                        the establishment a school-based standing panel 
                        to carry out the duties described in paragraph 
                        (3)(B) and that shall ensure that the 
                        membership of such panel reflects the diversity 
                        of the community and includes, at a minimum--
                                    ``(I) parents of children with 
                                disabilities who attend such local 
                                school, including parents of children 
                                with disabilities from unserved and 
                                underserved populations, as 
                                appropriate;
                                    ``(II) special education and 
                                general education teachers of such 
                                local school;
                                    ``(III) special education and 
                                general education administrators, or 
                                the designee of such administrators, of 
                                such local school; and
                                    ``(IV) special education and 
                                related services providers who are 
                                responsible for providing services to 
                                the children with disabilities who 
                                attend such local school; and
                            ``(iii) criteria that shall be used by such 
                        local educational agency with respect to the 
                        distribution of funds under this part to carry 
                        out this subsection;
                    ``(D) disseminate the criteria established under 
                subparagraph (C) to local school district personnel and 
                local parent organizations within the jurisdiction of 
                such local educational agency;
                    ``(E) require a local school that desires to 
                design, implement, and evaluate a school-based 
                improvement plan to submit an application at such time, 
                in such manner, and accompanied by such information as 
                such local educational agency shall reasonably require; 
                and
                    ``(F) establish procedures for approval by such 
                local educational agency of a school-based improvement 
                plan designed under this subsection.
            ``(5) Limitation.--A school-based improvement plan 
        described in paragraph (1) may be submitted to a local 
        educational agency for approval only if a consensus with 
        respect to any matter relating to the design, implementation, 
        or evaluation of such plan (including any matter relating to 
        the goals and measurable indicators included in such plan) is 
        reached by the school-based standing panel that designed such 
        plan.
            ``(6) Additional requirements.--
                    ``(A) Parental involvement.--In carrying out the 
                requirements of this subsection, a local educational 
                agency shall ensure that the parents of children with 
                disabilities are involved in the design, evaluation, 
                and, where appropriate, implementation of school-based 
                improvement plans in accordance with this subsection.
                    ``(B) Plan approval.--A local educational agency 
                may approve a school-based improvement plan of a local 
                school within the jurisdiction of such agency for a 
                period of 3 years, if--
                            ``(i) the approval is consistent with the 
                        policies, procedures, and practices established 
                        by such local educational agency and in 
                        accordance with this subsection; and
                            ``(ii) all members of the school-based 
                        standing panel that designed such plan agree in 
                        writing to such plan.
            ``(7) Extension of plan.--If a local school within the 
        jurisdiction of a local educational agency meets the applicable 
        requirements and criteria described in paragraphs (3) and (4) 
        at the expiration of the 3-year approval period described in 
        paragraph (6)(B), such agency may approve a school-based 
        improvement plan of such school for an additional 3-year 
        period.
    ``(h) Direct Services by the State Educational Agency.--
            ``(1) In general.--A State educational agency shall use the 
        payments that would otherwise have been available to a local 
        educational agency or to a State agency under subsection (i) 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--
                    ``(A) the local educational agency or the State 
                agency--
                            ``(i) has not provided the information 
                        needed to establish the eligibility of the 
                        local educational agency or the State agency 
                        under this section; or
                            ``(ii) is unable or unwilling to establish 
                        and maintain programs of free appropriate 
                        public education that meet the requirements of 
                        subsection (a) of this section; or
                    ``(B) the local educational agency--
                            ``(i) is unable or unwilling to be 
                        consolidated with other local educational 
                        agencies in order to establish and maintain 
                        such programs; or
                            ``(ii) 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 such 
                        children.
            ``(2) Method of provision of services.--The State 
        educational agency may provide special education and related 
        services under paragraph (1) in such manner and at such 
        locations (including regional or State centers) as the State 
        educational agency considers appropriate, so long as the 
        education and services are provided in accordance with this 
        part.
    ``(i) State Agency Eligibility.--Any State agency that received 
funds under section 614A (as such section was in effect on the day 
preceding the date of enactment of the Individuals with Disabilities 
Education Act Amendments of 1996) and desires to receive a subgrant for 
any fiscal year under section 611(c) or 619(g) 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 the children and their 
        parents are provided all the rights and procedural safeguards 
        described in this part; and
            ``(2) the State agency meets such other conditions of this 
        section as the Secretary finds appropriate.

SEC. 204. EVALUATIONS, INDIVIDUALIZED EDUCATION PROGRAMS, AND 
              EDUCATIONAL PLACEMENTS.

    Section 614 (20 U.S.C. 1414) is amended to read as follows:

``SEC. 614. EVALUATIONS, INDIVIDUALIZED EDUCATION PROGRAMS, AND 
              EDUCATIONAL PLACEMENTS.

    ``(a) In General.--
            ``(1) Initial evaluations.--
                    ``(A) In general.--A local educational agency shall 
                conduct a comprehensive initial evaluation, in 
                accordance with this paragraph and subsections (b) and 
                (c), before the initial provision of special education 
                and related services to a child with a disability.
                    ``(B) Procedures.--An initial evaluation shall 
                include procedures to--
                            ``(i) determine whether a child is a child 
                        with a disability as defined in section 
                        602(a)(4); and
                            ``(ii) determine the educational needs of 
                        the child.
                    ``(C) Parental consent.--
                            ``(i) In general.--A local educational 
                        agency proposing to conduct an initial 
                        evaluation to determine if a child qualifies as 
                        a child with a disability as defined in section 
                        602(a)(4) shall, prior to the conduct of such 
                        evaluation, obtain informed consent from the 
                        parents of the child.
                            ``(ii) Refusal.--If the parents of such 
                        child refuse to consent to an evaluation 
                        described in clause (i), a local educational 
                        agency may continue to pursue the evaluation by 
                        utilizing the mediation procedures under 
                        section 615(e) and due process procedures under 
                        section 615(f).
            ``(2) Reevaluations.--
                    ``(A) In general.--A local educational agency shall 
                ensure that a reevaluation of each child with a 
                disability is conducted--
                            ``(i) whenever the child's parents or 
                        teacher, other school personnel, or other 
                        appropriate individuals, request the 
                        reevaluation; and
                            ``(ii) a natural transition point for the 
                        child following the child's initial evaluation 
                        described under paragraph (1).
                    ``(B) Definition.--For the purpose of subparagraph 
                (A), the term `natural transition point' means the 
                period that is close in time to the transition of a 
                child with a disability--
                            ``(ii) from preschool to elementary grades;
                            ``(iii) from elementary grades to middle or 
                        junior high school grades;
                            ``(iv) from middle or junior high school 
                        grades to high school grades (at least every 3 
                        years); and
                            ``(v) from high school grades to postschool 
                        activities.
                    ``(C) Conduct of reevaluation.--Each reevaluation 
                shall be conducted in accordance with subsections (b) 
                and (c).
    ``(b) Evaluation Procedures.--
            ``(1) In general.--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 the local educational 
        agency proposes to conduct.
            ``(2) Method of evaluation.--In conducting the evaluation, 
        the local educational agency shall--
                    ``(A) use--
                            ``(i) a variety of evaluation tools and 
                        strategies to gather relevant functional and 
                        developmental information (including 
                        evaluations and information provided by the 
                        child's parents) that may assist in determining 
                        whether the child is a child with a disability; 
                        and
                            ``(ii) the content of the individualized 
                        education program of the child, including 
                        information related to enabling the child to 
                        participate and achieve in the general 
                        curriculum or, for a child who is in preschool, 
                        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) Evaluation tests and materials.--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;
                            ``(ii) provided and administered in the 
                        native language of the child or other mode of 
                        communication unless it is clearly not feasible 
                        to do so; and
                            ``(iii) consistent with generally accepted 
                        professional standards for assessments;
                    ``(B) any standardized tests that are given to the 
                child--
                            ``(i) have been validated for the specific 
                        purpose for which the tests are used;
                            ``(ii) are administered by trained 
                        personnel; and
                            ``(iii) are administered in accordance with 
                        any instructions provided by the producer of 
                        the tests.
            ``(4) Special rule on tests.--Tests shall provide relevant 
        information that directly assists persons involved in providing 
        services to a child with a disability in determining the 
        educational needs of the child, including information with 
        respect to instructional strategies and content that should be 
        reflected in the individualized education program of such 
        child.
    ``(c) Additional Requirements for Evaluations and Reevaluations.--
            ``(1) Review of existing evaluation data.--As part of an 
        initial evaluation (if appropriate) and as part of any 
        reevaluation under this section, the following tasks shall be 
        carried out:
                    ``(A) A review of existing evaluation data on the 
                child, including evaluations and information provided 
                by the parents of the child, and current classroom-
                based assessments and teacher observation.
                    ``(B) On the basis of the review, the professional 
                judgment of appropriate individuals, and the input from 
                the parents of the child, an identification of what 
                additional data, if any, are needed to determine the 
                following:
                            ``(i) Whether the child has a particular 
                        category of disability, as described in section 
                        602(a)(4)(A)(i), or, in the case of a 
                        reevaluation of a child, whether the child 
                        continues to have such a disability.
                            ``(ii) The present levels of performance 
                        and educational needs of the child.
                            ``(iii) Whether the child needs special 
                        education and related services, or in the case 
                        of a reevaluation of a child, whether the child 
                        continues to need special education and related 
                        services.
                            ``(iv) Whether any additions or 
                        modifications to the special education and 
                        related services are needed to enable the child 
                        to meet the objectives set out in the 
                        individualized education program of the child 
                        and to participate, as appropriate, in the 
                        general curriculum.
            ``(2) Source of data.--The local educational agency shall 
        administer such tests and other evaluation materials as may be 
        needed to produce the data identified under paragraph (1)(B).
            ``(3) Additional data.--If it is determined by appropriate 
        individuals based on their professional judgment, that no 
        additional data are needed to determine whether the child is or 
        continues to be a  child  with  a  disability,  the  local  
        educational agency--
                    ``(A) shall notify the parents of the child of--
                            ``(i) the result of that determination and 
                        the reasons for the determination; and
                            ``(ii) the right of the parents to request 
                        an evaluation to determine whether the child is 
                        or continues to be a child with a disability; 
                        and
                    ``(B) is not required to conduct the evaluation 
                described in clause (ii) of subparagraph (A) unless 
                requested by the parents.
    ``(d) Individualized Education Programs.--
            ``(1) IEP to be in effect at the beginning of each school 
        year.--
                    ``(A) In general.--At the beginning of each school 
                year, each local educational agency shall have in 
                effect an individualized education program for each 
                child with a disability within its jurisdiction.
                    ``(B) IEP for a child aged 3 through 5.--In the 
                case of a child with a disability aged 3 through 5 (or, 
                at the discretion of the State educational agency, a 2-
                year-old child with disabilities who will turn age 3 
                during the school year), an IFSP that contains the 
                material described in section 677(d) and that is 
                developed in accordance with this section may serve as 
                the IEP of the child if using the plan as the IEP is--
                            ``(i) consistent with State policy; and
                            ``(ii) agreed to by the agency and the 
                        parents of the child.
            ``(2) IEP team.--The IEP of each child 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 qualified to provide, or supervise the 
                provision of, specially designed instruction to meet 
                the unique needs of children with disabilities, and who 
                is knowledgeable about the general curriculum;
                    ``(B) at least one special education provider who 
                is knowledgeable about the disability of the child, 
                including, if appropriate, the special education 
                teacher of the child;
                    ``(C) to the extent practicable, at least one 
                regular education teacher who knows the child or is 
                familiar with the curriculum of the child, if the child 
                is, or may be, participating in the regular education 
                environment;
                    ``(D) the parents of the child;
                    ``(E) whenever appropriate, the child;
                    ``(F) an individual who is capable of interpreting 
                the instructional implications of evaluation results; 
                and
                    ``(G) other individuals, at the discretion of the 
                parents or the agency, including, as appropriate, 
                related services personnel who are or will be working 
                with the child.
        The team member described in subparagraph (F) may be an 
        existing team member described in subparagraphs (A) through 
        (C), if the existing team member is qualified to interpret the 
        results described in subparagraph (F).
            ``(3) Development of the iep.--
                    ``(A) In general.--In developing each child's IEP, 
                the IEP team shall consider---
                            ``(i) the strengths of the child and the 
                        concerns of the parents for enhancing the 
                        education of their child; and--
                            ``(ii) the results of the initial 
                        evaluation or most recent reevaluation of the 
                        child.
                    ``(B) Consideration of special factors.--As 
                appropriate, the IEP team shall--
                            ``(i) in the case of a child whose behavior 
                        impedes the learning of the child or that of 
                        others, consider strategies, including behavior 
                        management plans, to address that behavior;--
                            ``(ii) in the case of a child with limited 
                        English proficiency, consider the language 
                        needs of the child as the needs relate to the 
                        child's IEP;
                            ``(iii) 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;--
                            ``(iv) in the case of a child who is deaf 
                        or hard of hearing, consider the communication 
                        needs of the child, including opportunities to 
                        communicate directly with other individuals;
                            ``(v) in the case of a child with 
                        expressive or receptive language deficits, 
                        consider techniques to ensure that the child 
                        understands what is being spoken; and
                            ``(vi) in the case of a child with sensory 
                        or motor communication, or physical impairment, 
                        consider the provision of assistive technology 
                        devices and services.
    ``(e) Content of IEP.--
            ``(1) In general.--The IEP of each child with a disability 
        shall include the following:
                    ``(A) Present levels of educational performance.--A 
                statement of the present levels of educational 
                performance of the child, including how the disability 
                of the child affects the progress of the child in 
                meeting the standards of the general curriculum (or, 
                for a preschool child, as appropriate, how the 
                disability of the child affects the progress of the 
                child in developmentally appropriate activities related 
                to transition to kindergarten and elementary school);
                    ``(B) Measurable annual objectives.--A statement of 
                measurable annual objectives related to meeting each of 
                the educational needs of the child that result from the 
                disability of the child, including objectives related 
                to enabling the child to progress in meeting the 
                standards of the general curriculum at the 
                educationally appropriate level for the child.
                    ``(C) Special education and related services.--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 attain the annual objectives, to progress 
                in the general curriculum, to participate in extra-
                curricular and nonacademic activities and other 
                educational activities, and to be educated and 
                participate with nondisabled children in the activities 
                described in this subparagraph.
                    ``(D) Extent of participation with nondisabled 
                children.--An explanation of the extent, if any, to 
                which the child will not participate with nondisabled 
                children in the regular class and in the activities 
                described in subparagraph (C).
                    ``(E) Participation in general assessments.--
                            ``(i) Modifications.--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 
                        assessments.
                            ``(ii) Nonparticipation.--If a child will 
                        not participate in a particular State or 
                        districtwide assessment (or part of such 
                        assessment), a statement of why the assessment 
                        is not appropriate for the child and how the 
                        child will be assessed.
                    ``(F) Projected dates, frequency, and duration of 
                services.--The projected date for the beginning of the 
                services and program modifications described in 
                subparagraph (C), and the anticipated frequency and 
                duration of such services and modifications.
                    ``(G) Information about the child's progress.--A 
                statement of how the progress of the child toward the 
                measurable annual objectives will be measured and how 
                the parents of the child will be regularly informed of 
                the child's progress, in accordance with subsection 
                (f).
            ``(2) Additional iep requirements for a child with a 
        disability who is of secondary school age.--The IEP for each 
        student who is a child with a disability and who is of 
        secondary school age (hereafter in this section referred to as 
        the `student') shall include additional information related to 
        transition services and the transfer of rights at the age of 
        majority, as described in subparagraphs (A) through (C).
                    ``(A) Addressing the student's transition needs.--
                For a student aged 14 through 21 (or younger than age 
                14 if determined appropriate by the IEP team), the 
                transition services needs of the student shall be 
                considered and, as appropriate, addressed under the 
                applicable components of the student's IEP described in 
                paragraph (1) relating to present levels of educational 
                performance, measurable annual objectives, special 
                education and related services, and other applicable 
                components.
                    ``(B) Statement of transition services and 
                supports.--
                            ``(i) In general.--In meeting the 
                        requirements of subparagraph (A), the IEP team 
                        shall give consideration to the student's 
                        participation in the general education 
                        curriculum (such as participation in advanced-
                        placement courses or a vocational education or 
                        school-to-work program, or independent living 
                        skills training, which lead to successful 
                        transition from secondary school to postschool 
                        adult environments).
                            ``(ii) Transition services statement.--
                        Beginning no later than age 16, the student's 
                        IEP shall include a statement of needed 
                        transition services as defined in subsection 
                        (i) including, when appropriate, a statement of 
                        the interagency responsibilities and needed 
                        linkages among agencies to ensure delivery of 
                        services before the student leaves the school 
                        setting.
                    ``(C) Transfer of rights at the age of majority.--
                Beginning at least 1 year before the student reaches 
                the age of majority under State law, the IEP shall 
                include 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).
    ``(f) Reporting Each Child's Progress Toward Objectives.--The local 
educational agency shall ensure that--
            ``(1) the parents of each child with a disability are 
        regularly informed of the progress of the child, toward the 
        measurable annual objectives, and the extent to which such 
        progress is sufficient to enable the child to achieve the 
        objectives by the end of the school year; and
            ``(2) in implementing the requirement in paragraph (1), the 
        parents are informed (by periodic report cards or other 
        appropriate means) at least as often as parents of nondisabled 
        children are informed of the progress of their nondisabled 
        children.
    ``(g) Review and Revision of IEP.--The local educational agency 
shall ensure that the IEP team for each child--
            ``(1) reviews the child's IEP periodically, but not less 
        than annually, to determine whether the annual objectives for 
        the child are being achieved; and
            ``(2) revises the IEP, as appropriate, to address--
                    ``(A) continued progress in, or any lack of 
                expected progress toward, achieving the annual 
                objectives and in the general curriculum, where 
                appropriate;
                    ``(B) the results of any reevaluation conducted 
                under this section;
                    ``(C) information about the child provided to the 
                parents under subsection (f);
                    ``(D) the anticipated needs of the child; or
                    ``(E) other matters, as appropriate.
    ``(h) Failure To Meet Transition Objectives.--If an entity (other 
than the local educational agency) involved in planning or providing 
transition services to a child with a disability fails to provide the 
transition services described in the IEP in accordance with subsection 
(e)(2)(A), the local educational agency shall reconvene the IEP team to 
identify alternative strategies to meet the transition objectives for 
the student set forth in the IEP.
    ``(i) Definition of Transition Services.--For the purpose of this 
section, the term `transition services' means a coordinated set of 
activities for a student, designed within an outcome-oriented process, 
which promotes movement from school to postschool activities, including 
postsecondary education, vocational training, integrated employment 
(including supported employment), continuing and adult education, adult 
services, independent living, or community participation. The 
coordinated set of activities shall be based upon the individual needs 
of the student, taking into account the preferences and interests of 
the student, and shall include instruction, community experiences, the 
development of employment and other postschool adult living objectives, 
and, when appropriate, acquisition of daily living skills and 
functional vocational evaluation.''.
    ``(j) Construction Clause.--Nothing in this section shall be 
construed to require the IEP team to include information under one 
component of a child's IEP that is already contained under another 
component of such IEP.
    ``(k) Placements.--Each local educational agency shall ensure that 
the parents of each child with a disability are members of any group 
that makes decisions on the educational placement of their child.

SEC. 205. CHAPTER 1 STATE AGENCIES.

    Section 614A (20 U.S.C. 1414a) is repealed.

SEC. 206. PROCEDURAL SAFEGUARDS.

    (a) Procedures.--Section 615(a) (20 U.S.C. 1415(a)) is amended--
            (1) by striking ``Any State educational agency, any local 
        educational agency, and any intermediate educational unit 
        which'' and inserting ``Any State educational agency or local 
        educational agency that'';
            (2) by striking ``subsection (b) through subsection (e) 
        of'';
            (3) by striking ``or guardians''; and
            (4) by striking ``and units''.
    (b) Types of Procedures.--Section 615(b) (20 U.S.C. 1415(b) is 
amended--
            (1) by striking paragraph (2);
            (2) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``(A) an 
                opportunity for the parents or guardian'' and inserting 
                ``(1) an opportunity for the parents'';
                    (B) in subparagraph (B)--
                            (i) by striking ``(B) procedures'' and 
                        inserting ``(2) procedures'';
                            (ii) by striking ``or guardian'' each place 
                        it appears; and
                            (iii) by striking ``local educational 
                        agency, or intermediate educational unit'' and 
                        inserting ``the local educational agency, or 
                        any other agency that is'';
                    (C) in subparagraph (C)--
                            (i) by striking ``(C) written prior notice 
                        to the parents or guardian of the child 
                        whenever such agency or unit'' and inserting 
                        ``(3) written prior notice in accordance with 
                        subsection (c) to the parents of the child 
                        whenever such agency'';
                            (ii) by striking ``(i) proposes'' and 
                        inserting ``(A) proposes'';
                            (iii) by striking ``(ii) refuses'' and 
                        inserting ``(B) refuses''; and
                            (iv) by striking ``public education to the 
                        child'' and inserting ``public education to the 
                        child, in accordance with subsection (c)'';
                    (D) in subparagraph (D), to read as follows:
            ``(4) procedures designed to ensure that the notice 
        required by paragraph (3) is provided in the native language of 
        the parents or other mode of communication used by the parents, 
        unless it clearly is not feasible to do so;'';
                    (E) in subparagraph (E), by striking ``(E) an 
                opportunity'' and inserting ``(6) an opportunity''; and
                    (F) by inserting after paragraph (4) (as so 
                redesignated by subparagraph (D)) the following new 
                paragraph:
            ``(5) an opportunity for mediation in accordance with 
        subsection (e); and''; and
            (3) by striking ``(b)(1) The'' and inserting ``(b) The''.
    (c) Other Provisions of Section 615.--Section 615 (20 U.S.C. 1415) 
is amended--
            (1) in subsection (c)--
                    (A) by striking ``paragraph (2) of subsection (b)'' 
                and inserting ``subsection (f)''; and
                    (B) by striking ``or an intermediate educational 
                unit'';
            (2) in subsection (d), by striking ``subsections (b) and 
        (c)'' and inserting ``subsections (f) and (g)'';
            (3) in subsection (e)--
                    (A) in paragraph (1), by striking ``paragraph (2) 
                of subsection (b)'' and inserting ``subsection (f)'';
                    (B) in paragraph (2), by striking ``decision made 
                under subsection (b)'' and inserting ``decision made 
                under subsection (f)'';
                    (C) by striking ``subsection (c)'' each place it 
                appears and inserting ``subsection (g)'';
                    (D) in paragraph (3)--
                            (i) by striking ``or guardian'' each place 
                        it appears; and
                            (ii) by striking ``section 602(a)(20)'' and 
                        inserting ``section 602(a)(15);
                    (E) in paragraph (4)--
                            (i) in subparagraph (B), by striking ``or 
                        guardian'';
                            (ii) in subparagraph (C), by striking ``For 
                        the purpose of this subsection, fees'' and 
                        inserting ``Fees'';
                            (iii) in subparagraph (D)--
                                    (I) by striking ``No award of 
                                attorneys' fees and related costs may 
                                be made'' and inserting ``Except as 
                                provided in subparagraph (E), 
                                attorneys' fees may not be awarded and 
                                related costs may not be reimbursed''; 
                                and
                                    (II) by striking ``or guardian'' 
                                each place it appears;
                            (iv) in subparagraph (E)--
                                    (I) by striking ``Notwithstanding 
                                the provisions of subparagraph (D)'' 
                                and inserting ``Notwithstanding 
                                subparagraph (D)''; and
                                    (II) by striking ``or guardian'';
                            (v) in subparagraph (F)--
                                    (I) by striking ``(F) Whenever'' 
                                and inserting ``(F) Except as provided 
                                in subparagraph (G), whenever''; and
                                    (II) by striking ``or guardian'';
                            (vi) in subparagraph (G), by striking ``or 
                        there was a violation of section 615 of this 
                        Act''; and
                            (vii) by adding at the end thereof the 
                        following new subparagraphs:
    ``(H) For the purpose of this section, the determination of whether 
a party is a prevailing party under this section shall be made in 
accordance with the law established by the Supreme Court in Hensley v. 
Eckerhart, 461 U.S. 424 (1983).
    ``(I) For the purpose of this section, an IEP meeting shall not, in 
and of itself, be deemed to be a proceeding triggering the awarding of 
attorneys' fees.'';
            (4) by redesignating subsections (c) through (e) as 
        subsections (g) through (i), respectively;
            (5) redesignating subsection (f) as subsection (k);
            (6) by inserting after subsection (b) the following new 
        subsections:
    ``(c)(1) The notice required by subsection (b)(3) with respect to 
the proposal or refusal to initiate or change the identification, 
evaluation, or educational placement of a child described in such 
subsection or the provision of a free appropriate public education to 
such child shall--
            ``(A) include--
                    ``(i) a description of the action proposed or 
                refused by the agency;
                    ``(ii) an explanation of why the agency proposes or 
                refuses to take the action; and
                    ``(iii) a description of any other options that the 
                agency considered and the reasons why the options were 
                not chosen;
            ``(B) describe each evaluation procedure, test, record, or 
        report that the agency used as a basis for the proposed or 
        refused action;
            ``(C) describe any other factors that are relevant to the 
        proposal or refusal of the agency;
            ``(D) include a full explanation of the procedural 
        safeguards available under this section, and under the 
        regulations of the Secretary, relating to independent 
        educational evaluations, notice, parental consent, mediation, 
        and the placement of the child 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 attorneys' fees;
            ``(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 regulations of the 
        Secretary, relating to--
                    ``(i) access to educational records, whenever 
                requested by the parents; and
                    ``(ii) the hearings, appeals, actions, and fees 
                described in subparagraph (E) whenever the parents 
                request such explanation or file a complaint under 
                subsection (b)(6); and
            ``(G) include the name, address, and telephone number of 
        the Parent Information and Training Center in the State and 
        other resources in the State that will assist a parent 
        understand protections and opportunities under this part.
    ``(2) Each State educational agency and each local educational 
agency that receives assistance under this part shall provide the 
explanation described in paragraph (1)(F) in the cases described in 
such paragraph.
    ``(d)(1) The parents of a child with a disability or a suspected 
disability shall provide to the local educational agency written notice 
of their intention to file a complaint under subsection (b)(6) 
regarding the identification, evaluation, or educational placement of 
the child or the provision of a free appropriate public education to 
the child, 10 calendar days prior to the date of the filing of the 
complaint if--
            ``(A) the parents have new information regarding the 
        identification, evaluation, or educational placement of the 
        child or the provision of a free appropriate public education 
        to the child; or
            ``(B) the parents are initiating a complaint about the 
        identification, evaluation, or educational placement of the 
        child or the provision of a free appropriate public education 
        to the child and the parents have signed the most recent IEP of 
        the child.
    ``(2) Prior to filing a complaint, if the parents have new 
information regarding the identification, evaluation, or educational 
placement of the child or the provision of a free appropriate public 
education to the child, the parents shall provide the information to 
the local educational agency along with the notice of their intent to 
file a complaint.
    ``(3) If the parents were duly informed by the local educational 
agency with respect to their obligation to file a notice of intention 
to file a complaint under this subsection and the parents fail to 
provide such notice, the timeline for a final decision on the complaint 
shall be extended by 10 calendar days.
    ``(e)(1) Each State educational agency shall ensure that procedures 
are established and implemented to allow parties to disputes involving 
matters described in subsection (b)(6) to resolve such disputes through 
mediation.
    ``(2)(A) The procedures described in paragraph (1) shall ensure--
            ``(i) that whenever a hearing is requested on any matter in 
        dispute under subsection (b)(6), the parents are offered an 
        opportunity for mediation to resolve the dispute; and
            ``(ii) that mediation--
                    ``(I) is voluntary on the part of the parents and 
                may be waived by the parents at any time during such 
                process;
                    ``(II) is not used to deny a parent to the right of 
                a, or delay access by a parent to, due process hearings 
                under subsection (f) or to deny the parents any other 
                rights afforded under this part; and
                    ``(III) is conducted by a qualified and impartial 
                mediator who is not an employee of a local educational 
                agency or State agency described in section 613(i) that 
                is involved in the education or care of the child or 
                who is not a person having a personal or professional 
                conflict of interest;
            ``(iii) that mediators are appointed from the list 
        described in subparagraph (B)(i);
            ``(iv) that whenever a mediator is not selected on a random 
        basis, both the parents and the local educational agency are 
        involved in selecting the mediator and are in agreement with 
        the individual who is selected;
            ``(v) that each session in the mediation process shall be 
        scheduled in a timely manner and shall be held in a location 
        that is convenient and accessible to the parties to the 
        dispute;
            ``(vi) that no statements made by either party during the 
        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; and
            ``(vii) that an agreement reached by the parties to the 
        dispute in the mediation process shall be set forth in a 
        written mediation agreement.
    ``(B)(i) Each State educational agency shall compile and maintain a 
list of individuals who are--
            ``(I) trained in mediation; and
            ``(II) knowledgeable about the educational needs of 
        children with disabilities and applicable statutes and 
        regulations relating to the educational rights of such 
        children, including the requirements of this part and the 
        regulations of the Secretary under this part.
    ``(ii) The State educational agency shall ensure that mediation 
will be provided to parents at no cost.
    ``(3) If a State has on file with the Secretary documentation that 
the State has an established mediation process that is comparable to 
the mediation process described in this subsection, the mediation 
process of the State shall be considered to be in compliance with this 
subsection. Within 4 years after the date of enactment of the 
Individuals with Disabilities Education Act Amendments of 1996, such 
State shall establish a mediation process program that complies with 
the requirements of this subsection.
    ``(4) Nothing in this part shall prohibit employees or former 
employees of a State educational agency from serving as mediators in 
resolving disputes about any matter described in subsection (b)(6), 
unless the dispute directly involves such agency.
    ``(f) Whenever a complaint has been received under subsection 
(b)(6), the parents shall have an opportunity for an impartial due 
process hearing that shall be conducted by the State educational agency 
or by the local educational agency, as determined by State law or by 
the State educational agency. No hearing conducted pursuant to the 
requirements of this subsection shall be conducted by an employee of 
such agency involved in the education or care of the child.''; and
            (7) by inserting after subsection (i) (as so redesignated 
        by paragraph (4)) the following new subsection:
    ``(j)(1) Subject to the provisions of paragraph (2), any State that 
receives funds under this part may provide that, when a student with a 
disability reaches the age of majority under State law--
            ``(A) the public agency shall provide any notice required 
        by this section to both the individual and the parents;
            ``(B) all other rights accorded to parents under this part 
        transfer to the child; and
            ``(C) the agency shall notify the individual and the 
        parents of the transfer of rights.
    ``(2)(A) If, under State law, a student described in paragraph (1) 
is determined to not have the ability to provide informed consent with 
respect to the educational program of the student, the State shall have 
in effect procedures for appointing the parent or other individual to 
represent the educational interests of the student throughout the 
student's eligibility under this part.

SEC. 207. WITHHOLDING AND JUDICIAL REVIEW.

    Section 616 (20 U.S.C. 1416) is amended to read as follows:

``SEC. 616. WITHHOLDING AND JUDICIAL REVIEW.

    ``(a) Withholding.--
            ``(1) In general.--Whenever the Secretary, after reasonable 
        notice and opportunity for hearing to the State educational 
        agency involved (and to any local educational agency or State 
        agency affected by any failure described in subparagraph (B)), 
        finds--
                    ``(A) that there has been a failure by the State to 
                comply substantially with any provision of this part; 
                or
                    ``(B) that there is a failure to comply with any 
                condition of a local educational agency's eligibility 
                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) Limitations.--If the Secretary withholds further 
        payments under paragraph (1), the Secretary may determine that 
        such withholding will be limited to programs or projects, or 
        portions thereof, affected by the failure, or that the State 
        educational agency shall not make further payments under this 
        part to specified local educational agencies or State agencies 
        affected by the failure. Until the Secretary is satisfied that 
        there is no longer any failure to comply with the provisions of 
        this part, as specified in subparagraph (A) or (B) of paragraph 
        (1), no further payments shall be made to the State under this 
        part or payments by the State educational agency under this 
        part shall be limited to local educational agencies whose 
        actions did not cause or were not involved in the failure, as 
        the case may be. Any State educational agency or local 
        educational agency in receipt of a notice pursuant to paragraph 
        (1) shall, by means of a public notice, take such measures as 
        may be necessary to bring the pendency of an action pursuant to 
        this subsection to the attention of the public within the 
        jurisdiction of such agency.
    ``(b) Appeals of Eligibility Determinations.--
            ``(1) Petition.--If any State is dissatisfied with the 
        Secretary's final action with respect to the eligibility of 
        such State under section 612, such State may, within 60 days 
        after notice of such action, file with the United States court 
        of appeals for the circuit in which such State is located a 
        petition for review of that action. A copy of the petition 
        shall be forthwith transmitted by the clerk of the court to the 
        Secretary. The Secretary thereupon shall file in the court the 
        record of the proceedings upon which the Secretary's action was 
        based, as provided in section 2112 of title 28, United States 
        Code.
            ``(2) Findings.--The findings of fact by the Secretary, if 
        supported by substantial evidence, shall be conclusive, but the 
        court, for good cause shown, may remand the case to the 
        Secretary to take further evidence, and the Secretary may 
        thereupon make new or modified findings of fact and may modify 
        the previous action of the Secretary, and shall file in the 
        court the record of the further proceedings. Such new or 
        modified findings of fact shall be conclusive if supported by 
        substantial evidence.
            ``(3) Court's judgment.--Upon the filing of such petition, 
        the court shall have jurisdiction to affirm the action of the 
        Secretary or to set such action aside, in whole or in part. The 
        judgment of the court shall be subject to review by the Supreme 
        Court of the United States upon certiorari or certification as 
        provided in section 1254 of title 28, United States Code.''.

SEC. 208. ADMINISTRATION.

    Section 617 (21 U.S.C. 1417) is amended to read as follows:

``SEC. 617. ADMINISTRATION.

    ``(a) Secretary's Responsibilities.--In carrying out this part, the 
Secretary shall--
            ``(1) cooperate with, and (directly or through grant or 
        contract) provide the technical assistance necessary to, the 
        State in matters relating to--
                    ``(A) the education of children with disabilities;
                    ``(B) carrying out the requirements of this part;
            ``(2) provide short-term training programs and institutes; 
        and
            ``(3) disseminate information about, and otherwise promote, 
        the education of all children with disabilities within the 
        States.
    ``(b) Rules and Regulations.--In carrying out the provisions of 
this part, the Secretary shall, not later than January 1, 1977, issue, 
amend, and revoke such rules and regulations as may be necessary. No 
other less formal method of implementing such provisions is authorized.
    ``(c) Confidentiality.--The Secretary shall take appropriate 
action, in accordance with the provisions of section 444 of the General 
Education Provisions Act (20 U.S.C. 1232g), to ensure the protection of 
the confidentiality of any personally identifiable data, information, 
and records collected or maintained by the Secretary and by State and 
local educational agencies pursuant to the provisions of this part.
    ``(d) Personnel.--The Secretary is authorized to hire qualified 
personnel necessary to conduct data collection and evaluation 
activities authorized by section 618, without regard to the provisions 
of title 5, United States Code, relating to appointments in the 
competitive service and without regard to chapter 51 and subchapter III 
of chapter 53 of such title relating to classification and general 
schedule pay rates except that no more than 20 such personnel shall be 
employed at any time.
    ``(e) Policy Letters and Statements.--The Secretary may not, 
through policy letters or other statements, establish a new rule that 
is required for compliance with and eligibility under this part without 
following the requirements of section 553 of title 5, United States 
Code.
    ``(f) Interpretations by the Department of Education.--
            ``(1) In general.--The Secretary shall, on a quarterly 
        basis, publish in the Federal Register, and widely disseminate 
        to interested entities through various additional forms of 
        communication, a list of correspondence from the Department of 
        Education received by persons during the previous quarter that 
        describes the interpretations of the Department of Education of 
        this part or the regulations implemented pursuant to this part.
            ``(2) Additional information.--For each item of 
        correspondence published in a list under paragraph (1), the 
        Secretary shall identify the topic addressed by the 
        correspondence and shall include such other summary information 
        as the Secretary finds appropriate.''.

SEC. 209. EVALUATION AND PROGRAM INFORMATION.

    (a) In General.--Section 618 (20 U.S.C. 1418) is amended to read as 
follows:

``SEC. 618. EVALUATION AND PROGRAM INFORMATION.

    ``(a) Program Information.--Each State that receives assistance 
under this part, and the Secretary of the Interior, shall provide data 
each year to the Secretary--
            ``(1)(A) on the number of children with disabilities--
                    ``(i) who are receiving a free appropriate public 
                education;
                    ``(ii) who are receiving early intervention 
                services;
                    ``(iii) who are participating in regular education;
                    ``(iv) who are in separate classes, separate 
                schools or facilities, or public or private residential 
                facilities;
                    ``(v) for each year of age from 14 through 21, who, 
                because of program completion or for other reasons, 
                stopped receiving special education and related 
                services; and
                    ``(vi) from birth through age 2, who, because of 
                program completion or for other reasons, stopped 
                receiving early intervention services; and
            ``(B) on the number of infants and toddlers who are at risk 
        of having substantial developmental delays (as described in 
        section 672) and who are receiving early intervention services 
        under part H; and
            ``(2) any other information as may be required by the 
        Secretary.
    ``(b) Studies Evaluations, and National Assessments.--The Secretary 
shall assess the progress in the implementation of this Act through the 
studies and evaluations, and assessment described in paragraphs (1) and 
(2).
            ``(1) Studies and evaluations.--In carrying out the studies 
        and evaluations required by this section, the Secretary shall, 
        directly or through grant, contract, or cooperative agreement, 
        conduct studies and evaluations necessary to--
                    ``(A) assess, through quantitative and qualitative 
                data and reporting modes, the effectiveness of State 
                and local efforts to--
                            ``(i) provide a free appropriate public 
                        education to children with disabilities;
                            ``(ii) provide early intervention services 
                        to infants and toddlers with disabilities and 
                        infants and toddlers at risk for developmental 
                        delay;
                    ``(B) assess the placement of children with 
                disabilities by disability category; and
                    ``(C) analyze measurable impact, outcomes, and 
                results achieved by the State educational agencies and 
                local educational agencies through the systems change 
                activities of such agencies to reform policies, 
                procedures, and practices designed to improve the 
                educational and transitional services and results for 
                children with disabilities.
            ``(2) National assessment.--The Secretary shall, directly 
        or through grants, contracts, or cooperative agreements, 
        conduct studies, investigations, and evaluations that shall 
        measure the educational and transitional services and results 
        of children with disabilities under this Act. Such grants, 
        contracts, or cooperative agreements shall include--
                    ``(A) the conduct of a 5-year longitudinal study or 
                studies (utilizing both quantitative and qualitative 
                data and reporting modes) that examines--
                            ``(i) the educational and transitional 
                        services and results for children with 
                        disabilities aged 3 through 17, who are 
                        receiving special education and related 
                        services under this Act, using a national, 
                        representative sample of distinct age cohorts 
                        and disability categories; and
                            ``(ii) the educational results, 
                        postsecondary placement, and employment status 
                        of individuals with disabilities, aged 18 
                        through 21, who are receiving or have received 
                        special education and related services under 
                        this Act;
                    ``(B) the annual collection of data (beginning on 
                October 1, 1998 and every year thereafter) on the 
                number of children with disabilities suspended, 
                expelled, and subject to other disciplinary actions, 
                including data disaggregated by age, sex, race, socio-
                economic status, disability category, and category of 
                behavior subject to disciplinary action;
                    ``(C) an analysis of State and local needs for 
                professional development, parent training, and other 
                appropriate activities regarding disciplinary actions 
                involving children with disabilities; and
                    ``(D) an assessment of the educational and 
                transitional services and results for children with 
                disabilities from unserved and underserved populations, 
                including--
                            ``(i) data on the number of children from 
                        unserved and underserved populations who--
                                    ``(I) are referred for special 
                                education evaluation;
                                    ``(II) are receiving special 
                                education and related services; and
                                    ``(III) graduated from secondary 
                                and post secondary education programs; 
                                and
                            ``(ii) the performance of children with 
                        disabilities from unserved and underserved 
                        populations on State assessments and other 
                        performance indicators established for all 
                        students.
    ``(c) Annual Report.--Not later than 120 days after the expiration 
of each fiscal year, the Secretary shall prepare and submit to Congress 
a report that includes--
            ``(1) an analysis and summary of the data reported by the 
        States and the Secretary of the Interior under subsection (a);
            ``(2) the results of activities conducted under subsection 
        (b);
            ``(3) the findings and determinations resulting from 
        reviews of States with respect to the implementation of this 
        Act; and
            ``(4) recommendations with respect to the implementation of 
        this Act to improve the educational and transitional services 
        and results for children with disabilities and their families.
    ``(d) Additional Sources of Information.--The Secretary may collect 
and use information collected from various sources for reporting to 
Congress, including the collection and use of State evaluation and 
available research studies, in carrying out this section.
    ``(e) Reservation for Studies and Evaluations.--Notwithstanding any 
provision of this Act, the Secretary may reserve, in addition to any 
funds appropriated under this section, up to one-half of one percent of 
the amount appropriated under this part and part H for each fiscal year 
to carry out the purposes of this section.
    ``(f) Authorization of Appropriations.--For purposes of carrying 
out this section, there are authorized to be appropriated such sums as 
may be necessary.
    ``(g) Applicability of Definitions.--Any term used in this section 
that is defined in section 602 (as amended by section 102 of the 
Individuals with Disabilities Education Act Amendments of 1996) shall 
have the meaning given such term in such section.''.
    (b) Repeal.--Section 618(g), as added by subsection (a), shall be 
repealed effective October 1, 1997.

SEC. 210. PRESCHOOL GRANTS.

    Section 619 (21 U.S.C. 1419) is amended to read as follows:

``SEC. 619. PRESCHOOL GRANTS.

    ``(a) Purpose of Grants.--The Secretary shall make grants to States 
and the outlying areas to assist in the provision of special education 
and related services, in accordance with this part--
            ``(1) to children with disabilities aged 3 through 5; and
            ``(2) at the discretion of the State, to 2-year-old 
        children with disabilities who will turn age 3 during the 
        school year.
    ``(b) Eligibility.--A State or outlying area is eligible for a 
grant under this section if the State or outlying area--
            ``(1) has established its eligibility under section 612; 
        and
            ``(2) makes a free appropriate public education available 
        to all children with disabilities, aged 3 through 5, residing 
        in the jurisdiction of the State or the outlying area.
    ``(c) Allocations.--Of the funds made available under this section, 
the Secretary shall allocate to each eligible State and each outlying 
area, the State's or outlying area's pro rata share of the available 
funds based upon the count of the State of children with disabilities, 
aged 3 through 5, consistent with section 611(a)(3). The amount of any 
grant to any State or outlying area under this section for any fiscal 
year may not exceed $1,500 for each child with a disability in such 
State or outlying area, aged 3 through 5.
    ``(d) State-Level Activities.--
            ``(1) In general.--A State may retain not more than 25 
        percent of the amount of the grant the State receives under 
        this section for administration and other State-level 
        activities in accordance with subsections (e) and (f).
            ``(2) Inapplicability of certain requirements.--A State may 
        use funds the State retains under paragraph (1) without regard 
        to--
                    ``(A) the prohibition on commingling of funds under 
                section 612(a)(18)(A)(ii); and
                    ``(B) the prohibition on supplanting other funds 
                under section 612(a)(18)(A)(iii).
    ``(e) State Administration.--
            ``(1) In general.--Each State and outlying area may use not 
        more than 5 percent of the amount of the grant the State 
        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) Administration of part h.--Funds described in 
        paragraph (1) may also be used for the administration of part 
        H, if the State educational agency is the lead agency for the 
        State under that part.
    ``(f) Other State-Level Activities.--A State shall use any funds 
the State retains under subsection (d) and does not use for 
administration under subsection (e)--
            ``(1) for support services (including establishing and 
        implementing the mediation process required by section 615(e)), 
        which may benefit children with disabilities younger than age 3 
        and older than age 5 as long as such services also benefit 
        children with disabilities aged 3 through 5;
            ``(2) for direct services for children eligible for 
        services under this section;
            ``(3) to develop and implement State systems change 
        activities 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 systems 
        change activities under part C if the State receives funds 
        under such part;
            ``(5) to supplement other funds used to develop and 
        implement a fully integrated and coordinated Statewide system 
        that links education, health, social welfare services, support 
        systems, and other community entities, in a manner designed to 
        improve the educational and transitional results for all 
        children and their families (including children with 
        disabilities and their families), but not to exceed 1 percent 
        of the amount received by the State under this section; or
            ``(6) for other activities deemed appropriate by the State 
        educational agency;
    ``(g) Subgrants to Local Educational Agencies.--
            ``(1) Requirement to make subgrants.--A 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 the eligibility of 
        the State under section 613, and to State agencies that 
        received funds under section 614A (as such section was in 
        effect on the day preceding the date of enactment of the 
        Individuals with Disabilities Education Act Amendments of 1996) 
        for fiscal year 1995 and that have established their 
        eligibility under section 613.
            ``(2) Methods of distribution.--From the amount of funds 
        available to local educational agencies in any State under this 
        section, each local educational agency shall be entitled to the 
        pro rata share of the available funds based on the aggregate 
        number of children with disabilities aged 3 through 5 who 
        received special education and related services as determined 
        under section 611.
    ``(h) Part H Inapplicability.--Part H does not apply to any child 
with a disability receiving a free appropriate public education, in 
accordance with this part, with funds received under this section.
    ``(i) Outlying Areas.--The provisions of section 501 of Public Law 
95-134 (48 U.S.C. 1469a), permitting the consolidation of grants to 
outlying areas, shall not apply to funds such areas receive under this 
section.
    ``(j) 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.
    ``(k) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated such sums as 
may be necessary.''.

SEC. 211. PAYMENTS.

    Section 620 (20 U.S.C. 1420) is amended to read as follows:

``SEC. 620. PAYMENTS.

    ``(a) Payments to States.--The Secretary shall make payments to 
each State that has demonstrated the eligibility of the State 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, as such section was in 
effect on the day preceding the date of enactment of the Individuals 
with Disabilities Education Act Amendments of 1996, 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.''.

SEC. 212. APPLICABILITY OF DEFINITIONS.

    (a) Amendment.--Part B (20 U.S.C. 611 et seq.) is amended by adding 
at the end thereof the following new section:

``SEC. 621. APPLICABILITY OF DEFINITIONS.

    ``The definitions used in section 602 (as in effect on the day 
before the date of enactment of the Individuals with Disabilities 
Education Act Amendments of 1996) shall apply to this part.''.
    (b) Repeal.--Section 621, as added by subsection (a), shall be 
repealed effective January 1, 1998.

SEC. 213. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this title shall take effect on January 1, 1998.
    (b) Evaluation and Program Information.--The amendment made by 
section 209 shall take effect on October 1, 1996, except that section 
618(a)(1)(B) of the Individuals with Disabilities Education Act, as 
added by section 209, shall not take effect until October 1, 1997.
    (c) Transition Rule.--
            (1) In general.--Subject to paragraph (2), a State that is 
        eligible for assistance under part B (as such part was in 
        effect on the day before the date of enactment of this Act) may 
        begin carrying out the requirements of part B (as amended by 
        this title) prior to January 1, 1998.
            (2) Notification and approval.--A State that desires to 
        carry out a requirement of part B (as amended by this title) 
        under paragraph (1) shall notify the Secretary of which 
        requirements of such part the State desires to carry out. In 
        accordance with the procedure established by the Secretary, the 
        Secretary shall notify the State--
                    (A) of whether the State may carry out a 
                requirement of such part; and
                    (B) of any applicable procedure that the State 
                shall comply with for the purposes of carrying out such 
                requirement.

SEC. 214. CONFORMING AND TECHNICAL AMENDMENTS.

    (a) Settlements and Allocations.--Section 611 (20 U.S.C. 1411) is 
amended--
            (1) by striking ``Sec. 611. (a)'' and all that follows 
        through (1) Except as'' and inserting the following:
    ``Sec. 611. (a)(1) Except as''; and
            (2) in subsection (a) (amended by paragraph (1))--
                    (A) in paragraph (1)--
                            (i) by realigning the margins of 
                        subparagraphs (A) and (B) so as to align with 
                        subparagraphs (A) and (B) of subsection (b)(1); 
                        and
                            (ii) by realigning the margins of clauses 
                        (i) and (ii) so as to align with subclauses (I) 
                        and (II) of subsection (d)(2)(A)(i); and
                    (B) by realigning the margins of paragraph (2) so 
                as to align with paragraph (3).
    (b) Advisory Panels.--Section 615(h) (20 U.S.C. 1415(h)), as so 
redesignated by section 206(c)(4), is amended by striking ``section 
613(a)(12)'' and inserting ``section 612(a)(20)''.
    (c) Procedural Safeguards.--Section 615(k) (20 U.S.C. 1415(k)), as 
so redesignated by section 206(c)(5), is amended by striking 
``subsections (b)(2) and (c)'' and inserting ``subsections (f) and 
(g)''.

                       TITLE III--SYSTEMS CHANGE

SEC. 301. SYSTEMS CHANGE.

    Part C (20 U.S.C. 1421 et seq.) is amended to read as follows:

     ``PART C--PROMOTING SYSTEMS CHANGE TO IMPROVE EDUCATIONAL AND 
    TRANSITIONAL SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES

``SEC. 621. FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress finds the following:
            ``(1) States are responding with some success to multiple 
        pressures to improve educational and transitional services and 
        results for children with disabilities in response to growing 
        demands imposed by ever-changing factors, such as demographics, 
        social policies, and labor and economic markets.
            ``(2) In order for States to address such demands and to 
        facilitate lasting systems change that is of benefit to all 
        students, including children with disabilities, States must 
        involve local educational agencies, individuals with 
        disabilities and their families, and other interested 
        individuals and organizations in planning and implementation 
        activities that affect education.
            ``(3) Targeted Federal financial resources are needed to 
        support planning, needs assessment, implementation, and 
        evaluation of better ways to address the needs of children with 
        disabilities into the next century.
            ``(4) State educational agencies, in partnership with local 
        educational agencies and other individuals and organizations, 
        are in the best position to identify and design ways to meet 
        emerging and expanding demands to improve education for 
        children with disabilities and to address their special needs.
            ``(5) Research, demonstration, and practice over the past 
        20 years in special education and related disciplines have 
        built a foundation of knowledge on which State and local 
        systems change activities can now be based.
            ``(6) Such research, demonstration, and practice in special 
        education and related disciplines have demonstrated that an 
        effective educational system now and in the future must--
                    ``(A) maintain high academic standards and clear 
                performance goals for children with disabilities, 
                consistent with the standards and expectations for all 
                students in the educational system, and provide for 
                appropriate and effective strategies and methods to 
                ensure that students who are children with disabilities 
                have maximum opportunities to achieve such standards 
                and goals;
                    ``(B) create a system that fully addresses the 
                needs of all students, including students who are 
                children with disabilities, by linking and coordinating 
                the requirements of parts B and H with other systemic 
                reform initiatives;
                    ``(C) clearly define, in measurable terms, the 
                school and post-school results that children with 
                disabilities will achieve through their participation 
                in general and special education programs;
                    ``(D) promote service integration, and the 
                coordination of State and local education, social, 
                health, and mental health supports, and other 
                interagency supports, in addressing the full range of 
                student needs, particularly the needs of students who 
                are children with disabilities and have significant and 
                multiple disabilities;
                    ``(E) ensure that children with disabilities are 
                provided assistance and support in making transitions 
                as described in section 614(a)(2);
                    ``(F) promote comprehensive programs of 
                professional development to ensure that the persons 
                responsible for the education or such a transition of 
                children with disabilities possess the skills and 
                knowledge necessary to address the educational and 
                related needs of the children;
                    ``(G) create school-based disciplinary strategies 
                that will be used to reduce or eliminate the need to 
                use suspension and expulsion as disciplinary options 
                for children with disabilities;
                    ``(H) establish placement-neutral funding formulas 
                and cost-effective strategies for serving children with 
                disabilities in special education and general 
                education; and
                    ``(I) involve individuals with disabilities and 
                parents of children with disabilities in planning, 
                implementing, and evaluating educational system 
                innovations and reforms.
    ``(b) Purpose.--The purpose of this part is to assist and provide 
incentives to State educational agencies, working in partnership with 
local educational agencies, and other interested individuals, agencies, 
and organizations, described in section 623(a), to carry out systems 
change activities that will improve practices, procedures, policies, 
and training, and use of personnel, parents, and school-age peers of 
children with disabilities, and that will contribute to improved early 
intervention, educational and transitional results for children with 
disabilities in demonstrable and measurable ways.

``SEC. 622. GRANTS TO STATE EDUCATIONAL AGENCIES.

    ``(a) Grant Award.--
            ``(1) In general.--The Secretary shall award grants, on a 
        competitive basis, to State educational agencies, working in 
        partnership with local educational agencies and other 
        individuals, agencies, and organizations described in section 
        623(a), to support systems change activities that benefit, in 
        demonstrable and measurable ways, children with disabilities.
            ``(2) Activities benefiting multiple states.--To pursue 
        systems change activities that benefit children with 
        disabilities and their families in more than 1 State, 
        recipients of such grants may collaborate in carrying out 
        projects under this part through such activities as joint 
        arrangements with 1 or more institutions of higher education, 
        sharing of project staff, and joint use of consultants.
    ``(b) Types of Grants.--
            ``(1) In general.--In awarding grants under subsection (a), 
        the Secretary may award either a planning grant or an 
        implementation grant to a State educational agency applying for 
        funds under this part that forms a partnership described in 
        section 623(a) that applies for funds under this part.
            ``(2) Planning grants.--
                    ``(A) Application.--An applicant may apply under 
                section 623(b) for a planning grant to develop systems 
                change activities.
                    ``(B) Duration.--A planning grant referred to in 
                paragraph (1) shall be for 1 year.
                    ``(C) Renewal of 1-year grants.--A grant that has 
                been awarded for 1 year in accordance with subparagraph 
                (B) may be renewed for 1 additional year.
            ``(3) Implementation grants.--
                    ``(A) Application.--An applicant may apply under 
                section 623(c) for an implementation grant to carry out 
                systems change activities.
                    ``(B) Duration.--An implementation grant referred 
                to in paragraph (1) shall be awarded for a period of 
                not to exceed 5 years.
    ``(c) Amount of Awards.--
            ``(1) Considerations.--In determining the amount of any 
        award under this part for a State educational agency, the 
        Secretary may consider such factors as the Secretary finds 
        appropriate, which may include the size of the school-age 
        population of the State in which the State educational agency 
        is located.
            ``(2) Limitation amount.--Notwithstanding paragraph (1) and 
        except as provided in subsection (d)(2) and section 624--
                    ``(A) the annual amount of each planning grant 
                referred to in subsection (b)(1) shall not exceed--
                            ``(i) $100,000 for any State educational 
                        agency in a State; or
                            ``(ii) $10,000 for any State educational 
                        agency in an outlying area; and
                    ``(B) the annual amount of each implementation 
                grant referred to in subsection (b)(1) shall be not 
                less than--
                            ``(i) $450,000 for any State educational 
                        agency in a State; or
                            ``(ii) $40,000 for any State educational 
                        agency in an outlying area.
    ``(d) Limitations and Exceptions.--
            ``(1) Limitation.--Except as provided in paragraph (2), no 
        State educational agency may receive more than 1 award under 
        this part for any fiscal year.
            ``(2) Exceptions.--In addition to applying for an 
        individual implementation grant, a State educational agency may 
        submit a joint application for an implementation grant referred 
        to in subsection (b)(1) with other State educational agency or 
        partnering entities to address systemic problems on a regional 
        or national basis. In determining the amount of any award for 
        such a grant, the Secretary may set aside the monetary 
        limitations described in subsection (c).

``SEC. 623. APPLICATION.

    ``(a) In General.--In order to be considered for a planning grant 
or an implementation grant under this part, a State educational agency 
shall establish a partnership among members (referred to in this part 
as the `partnering entities') consisting of local educational agencies, 
and other persons and organizations involved in, or concerned with, the 
education of children with disabilities, including--
            ``(1) parents of children with disabilities;
            ``(2) individuals with disabilities;
            ``(3) teachers and related services providers;
            ``(4) representatives of institutions of higher education;
            ``(5) representatives of other State agencies involved in 
        the financing or delivery of special education and related 
        services to children with disabilities and early intervention 
        services to infants and toddlers with disabilities;
            ``(6) representatives of vocational, community, 
        postsecondary, and business organizations concerned with the 
        provision of transitional services to children with 
        disabilities; and
            ``(7) other individuals as deemed appropriate by the State 
        educational agency.
    ``(b) Planning Grants.--In order to be considered for a planning 
grant under this part, a State educational agency, in partnership with 
the partnering entities, shall prepare and submit an application to the 
Secretary that--
            ``(1) describes the planning activities for which 
        assistance is sought;
            ``(2) describes proposed changes in practices, procedures, 
        policies, training, or uses of personnel;
            ``(3) describes a partnership agreement that--
                    ``(A) specifies the nature and extent of the 
                partnership, and the respective roles of the partnering 
                entities in the partnership; and
                    ``(B) shall be in effect for the period of the 
                grant; and
            ``(4) includes such other information and assurances as the 
        Secretary may reasonably require.
    ``(c) Implementation Grants.--In order to be considered for an 
implementation grant under this part, a State educational agency, in 
partnership with the partnering entities, shall prepare and submit an 
application to the Secretary that--
            ``(1) describes the critical aspects of practices, 
        procedures, policies, and organizational structures that will 
        be changed in order to improve educational and transitional 
        results for children with disabilities, based on syntheses and 
        analysis of available information, such as--
                    ``(A) information on the performance of children 
                with disabilities on State assessments and other 
                performance indicators established for all children, 
                such as drop-out rates and graduation rates;
                    ``(B) information on State and local needs for 
                professional development for personnel to serve 
                children with disabilities; and
                    ``(C) information provided to the State educational 
                agency by the Secretary;
            ``(2) identifies the goals and objectives for the systems 
        change activities to be carried out under the grant and how the 
        goals and objectives relate to the goals established by the 
        State under section 612(a)(16);
            ``(3) describes how grant funds will be used in undertaking 
        the systems change activities, and the amount and nature of 
        funds from other sources that will be committed to the systems 
        change activities;
            ``(4) describes the performance indicators that will be 
        adopted or used to measure progress made toward the goals of 
        the systems change activities and toward improved educational 
        and transitional results for children with disabilities;
            ``(5) describes the approach that will be taken, on an 
        annual basis, to disseminate information on the progress 
        measured under paragraph (4) to interested partnering entities 
        within the State partnership and to the Secretary;
            ``(6) describes a partnership agreement specified in 
        subsection (b)(3); and
            ``(7) includes such other information and assurances as the 
        Secretary may reasonably require.
    ``(d) Adequate Progress.--The Secretary may terminate a grant to a 
State educational agency under this part, or require amendments to an 
approved application of a State educational agency, if the Secretary 
determines that the State educational agency is not making adequate 
progress toward the goals of the systems change activities of the State 
educational agency under this part.

``SEC. 624. INCENTIVES.

    ``Notwithstanding section 622(c)(2), the Secretary may provide 
additional funds for systems change activities, if the Secretary 
approved an application under this part relating to the activities 
and--
            ``(1) the application, in addition to meeting the minimal 
        application requirements, includes evidence of a significant 
        and substantial level of collaboration among agencies, 
        organizations, and individuals who have an interest in the 
        quality of educational services and opportunities and are 
        committed to the full participation of children with 
        disabilities;
            ``(2) the activities described in the application are 
        connected with prereferral programs and other programs designed 
        to prevent the educational failure of children (particularly 
        children who are members of unserved, underserved, or 
        inappropriately identified populations and who are from ethnic 
        backgrounds and geographic areas with significant need) so that 
        the children experience a high level of success in their 
        educational experience; and
            ``(3) the application demonstrates, in addition to meeting 
        the minimal application requirements, an ongoing effort to 
        assess and address the needs of children with disabilities and 
        ensure the full participation of such children in statewide or 
        districtwide general education systems change activities.

``SEC. 625. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are authorized 
to be appropriated $30,000,000 for fiscal year 1998 and such sums as 
may be necessary for each of fiscal years 1999 through 2002.''.

SEC. 302. REAUTHORIZATION FOR FISCAL YEAR 1997 OF AUTHORITIES RELATING 
              TO CENTERS AND SERVICES TO MEET SPECIAL NEEDS OF 
              INDIVIDUALS WITH DISABILITIES.

    (a) Regional Centers for the Deaf.--Section 625(a)(6) (20 U.S.C. 
1424a(a)(6)) is amended--
            (1) in the second sentence, by striking ``1994'' and 
        inserting ``1997''; and
            (2) by striking the third sentence.
    (b) Authorization of Appropriations.--Each of subsections (a) 
through (h) of section 628 of such Act (20 U.S.C. 1427) is amended by 
striking ``fiscal year 1994'' and inserting ``each of fiscal years 1994 
through 1997''.

SEC. 303. EFFECTIVE DATE.

    The amendments made by this title, other than the amendments made 
by section 302, shall take effect on October 1, 1997.

              TITLE IV--RESEARCH AND PERSONNEL PREPARATION

SEC. 401. IMPROVING EARLY INTERVENTION, EDUCATIONAL, AND TRANSITIONAL 
              SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES 
              THROUGH COORDINATED RESEARCH AND PERSONNEL PREPARATION.

    Part D (20 U.S.C. 1431 et seq.) is amended to read as follows:

 ``PART D--IMPROVING EARLY INTERVENTION, EDUCATIONAL, AND TRANSITIONAL 
SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES THROUGH COORDINATED 
                   RESEARCH AND PERSONNEL PREPARATION

``SEC. 631. FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress finds the following:
            ``(1) The Federal Government has an ongoing obligation to 
        support programs, projects, and activities that contribute to 
        positive results for children with disabilities, enabling the 
        children--
                    ``(A) to meet their early intervention, 
                educational, and transitional goals and, to the maximum 
                extent possible, educational standards that have been 
                established for all children; and
                    ``(B) to acquire the skills that will empower the 
                children with disabilities to lead productive and 
                independent adult lives.
            ``(2)(A) As a result of more than 20 years of Federal 
        support for research, demonstration projects, and personnel 
        preparation, there is an important knowledge base for improving 
        results for children with disabilities.
            ``(B) Such knowledge should be used by States and local 
        educational agencies to design and implement state-of-the-art 
        educational systems that consider the needs of, and include, 
        children with disabilities, especially in environments in which 
        the children can learn along with their peers and achieve 
        results measured by the same standards as the results of their 
        peers.
            ``(3)(A) Continued Federal support is essential for the 
        development and maintenance of a coordinated and high-quality 
        program of research, demonstration projects, dissemination of 
        information, and personnel preparation.
            ``(B) Such support--
                            ``(i) enables State educational agencies 
                        and local educational agencies to improve their 
                        educational systems and results for children 
                        with disabilities;
                            ``(ii) enables State and local agencies to 
                        improve early intervention services and results 
                        for infants and toddlers with disabilities and 
                        their families; and
                            ``(iii) enhances the opportunities for 
                        general and special education personnel, 
                        related services personnel, parents, and 
                        paraprofessionals to participate in preservice 
                        and inservice training, to collaborate, and to 
                        improve results for children with disabilities 
                        and their families.
            ``(4) The Federal Government plays a critical role in 
        facilitating the availability of an adequate number of highly 
        qualified personnel--
                    ``(A) to serve effectively the over 5,000,000 
                children with disabilities;
                    ``(B) to assume leadership positions in 
                administrative and direct service capacities related to 
                teacher training and research concerning the provision 
                of early intervention services, special education, and 
                related services; and
                    ``(C) to work with children with low-incidence 
                disabilities and their families.
            ``(5) The Federal Government performs the role described in 
        paragraph (4)--
                    ``(A) by supporting models of personnel development 
                that reflect successful practice, including strategies 
                for recruiting, preparing, and retaining personnel;
                    ``(B) by promoting the coordination and integration 
                of--
                            ``(i) personnel development activities for 
                        teachers of children with disabilities; and
                            ``(ii) personnel development activities 
                        supported under Federal law, other than this 
                        part;
                    ``(C) by supporting the development and 
                dissemination of information about teaching standards; 
                and
                    ``(D) by promoting the coordination and integration 
                of personnel development activities through linkage 
                with systems change activities within States and 
                nationally.
    ``(b) Purpose.--The purpose of this part is to provide Federal 
funding for coordinated research, demonstration projects, outreach, and 
personnel preparation activities that--
            ``(1) are described in section 633 or 634;
            ``(2) are linked with, and positively affect, systems 
        change outcomes; and
            ``(3) improve early intervention, educational, and 
        transitional results for children with disabilities.

``SEC. 632. DEFINITIONS.

    ``As used in this part, the term `developmental delay' has the 
meaning given such term by a State under section 676(b)(1).

``SEC. 633. RESEARCH AND INNOVATION TO IMPROVE SERVICES AND RESULTS FOR 
              CHILDREN WITH DISABILITIES.

    ``(a) In General.--The Secretary may make grants to, or enter into 
contracts or cooperative agreements with, eligible entities to produce 
and advance the use of knowledge to--
            ``(1)(A) improve services provided under this Act, 
        including the practices of professionals and others involved in 
        providing such services to children with disabilities; and
            ``(B) improve early intervention, educational, and 
        transitional services and results, for children with 
        disabilities;
            ``(2) address the special needs of infants and toddlers 
        with disabilities including such infants and toddlers who are 
        at risk of having substantial developmental delays if early 
        intervention services are not provided;
            ``(3) address the specific problems of over-identification 
        and under-identification of children with disabilities in the 
        education of children with disabilities;
            ``(4) prevent children with emotional and behavioral 
        problems from developing emotional disturbances that require 
        the provision of special education and related services; and
            ``(5) improve secondary and postsecondary education and 
        educational results for children with disabilities.
    ``(b) New Knowledge Production; Authorized Activities.--In carrying 
out this section, the Secretary may support any activities that are 
consistent with the objectives described in subsection (a), including 
activities that--
            ``(1) expand understanding of the relationships between 
        learning characteristics of children with disabilities and the 
        diverse ethnic, cultural, linguistic, social, and economic 
        backgrounds of children with disabilities and their families;
            ``(2) develop or identify innovative, effective, and 
        efficient curricula designs, instructional approaches, and 
        strategies, and develop or identify positive academic and 
        social learning opportunities, that--
                    ``(A) enable children with disabilities to make 
                effective transitions described in section 643(d)(7) or 
                transitions between educational settings; and
                    ``(B) improve educational and transitional results 
                for children with disabilities at all levels of the 
                educational system in which the activities are carried 
                out and, in particular, that improve the progress of 
                the children, as measured by performance expectations 
                within the general education curriculum involved;
            ``(3) advance the design of assessment tools and procedures 
        that will accurately and efficiently determine the special 
        instructional, learning, and behavioral needs of children with 
        disabilities, especially within the context of general 
        education;
            ``(4) study and promote improved alignment and 
        compatibility of general and special education reforms 
        concerned with curricular and instructional reform, evaluation 
        and accountability of such reforms, and administrative 
        procedures;
            ``(5) advance the design, development, and integration of 
        technology, assistive technology devices, media, and materials, 
        to improve early intervention, educational, and transitional 
        services and results, for children with disabilities; and
            ``(6) improve designs, processes, and results, of personnel 
        preparation for personnel who provide services to children with 
        disabilities through the acquisition of information on, and 
        implementation of, research-based practices.
    ``(c) Integration of Research and Practice; Authorized 
Activities.--In carrying out this section, the Secretary may support 
any activities that are consistent with the objectives described in 
subsection (a), including activities that--
            ``(1) demonstrate and apply research-based findings to 
        facilitate systemic changes in policy, procedure, practice, and 
        the training and use of personnel, related to the provision of 
        services to children with disabilities;
            ``(2) promote and demonstrate the coordination of early 
        intervention and educational services for children with 
        disabilities with services provided by health, rehabilitation, 
        and social service agencies;
            ``(3) identify solutions that overcome systemic barriers to 
        the effective and efficient delivery of early intervention, 
        educational, and transitional services to children with 
        disabilities;
            ``(4) enable professionals, parents of children with 
        disabilities, and other persons to learn about and implement 
        the findings of research, and successful practices developed in 
        model demonstration projects, relating to the provision of 
        services to children with disabilities; and
            ``(5) conduct outreach, and disseminate information, 
        relating to successful approaches to overcoming systemic 
        barriers to the effective and efficient delivery of early 
        intervention, educational, and transitional services to 
        personnel who provide services to children with disabilities.
    ``(d) Improving the Use of Professional Knowledge; Authorized 
Activities.--In carrying out this section, the Secretary may support 
any activities that are consistent with the objectives described in 
subsection (a), including activities that--
            ``(1) synthesize professional knowledge bases that utilize 
        rigorous methodologies and that relate to the provision of 
        services to children with disabilities;
            ``(2) analyze such professional knowledge bases to advance 
        an understanding of relationships, and effectiveness of 
        practices, relating to the provision of services to children 
        with disabilities; and
            ``(3) present such professional knowledge bases in a clear 
        and meaningful manner to affected persons at all levels of the 
        service systems that serve children with disabilities and their 
        families.
    ``(e) Applications.--Any eligible entity that wishes to receive a 
grant under this section shall submit an application to the Secretary 
at such time, in such a manner, and containing such information as the 
Secretary may require.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $63,000,000 for fiscal year 
1998, and such sums as may be necessary for each of fiscal years 1999 
through 2002.

``SEC. 634. PERSONNEL PREPARATION TO IMPROVE SERVICES AND RESULTS FOR 
              CHILDREN WITH DISABILITIES.

    ``(a) In General.--
            ``(1) Support.--The Secretary may make grants to, or enter 
        into contracts or cooperative agreements with, eligible 
        entities and consortia of eligible entities, to help address 
        State-identified needs for qualified personnel and to ensure 
        that the personnel have the skills and knowledge reflecting 
        successful practices determined through research and practice 
        that are needed to serve children with disabilities.
            ``(2) Projects.--In carrying out this section, the 
        Secretary may support--
                    ``(A) projects that address the need for personnel 
                to serve children with high-incidence disabilities or 
                children with low-incidence disabilities;
                    ``(B) projects that address the need for leadership 
                personnel;
                    ``(C) special projects that have broad 
                applicability in addressing the personnel needs 
                described in paragraph (1); and
                    ``(D) projects that improve the skills of personnel 
                who serve children with disabilities who engage in or 
                are likely to engage in behavior subject to 
                disciplinary action.
    ``(b) High-Incidence Disabilities; Authorized Activities.--In 
carrying out this section, the Secretary may support any activities for 
children with high-incidence disabilities that are consistent with the 
objectives referred to in subsection (a), including activities that--
            ``(1) provide teachers, and related services personnel, 
        from various disciplines with interdisciplinary training and 
        training regarding innovative instructional methods for 
        children with disabilities, especially methods that meet the 
        diverse needs of individual children with disabilities and 
        enable the children to be successful, as measured by 
        performance expectations within the general education 
        curriculum involved;
            ``(2) prepare personnel in the use of strategies, 
        techniques, methods, and practices that meet the needs, for 
        early intervention, educational, and transitional services, of 
        children with disabilities who are from unserved and 
        underserved populations or from rural or urban areas;
            ``(3) develop career-ladder opportunities for 
        paraprofessionals to receive training as special education 
        teachers and related services personnel, including 
        interdisciplinary training to enable the teachers and providers 
        to improve early intervention, educational, and transitional 
        results for children with disabilities;
            ``(4) enhance the ability of trainees, teachers, and others 
        to acquire and use strategies, including behavior management 
        plans, to address the conduct of children with disabilities 
        that impedes their learning and the learning of other students 
        in the classroom involved;
            ``(5) recruit and retain new, highly-qualified teachers and 
        related services personnel, especially from groups that are 
        unserved and underserved populations in the teaching profession 
        and individuals from rural or urban settings, to provide 
        services to children with disabilities;
            ``(6) enhance the preparation of individuals who are 
        teachers, early intervention services personnel, related 
        services personnel, or paraprofessionals, by providing such 
        individuals with interdisciplinary training to develop the 
        collaborative skills needed to appropriately teach children 
        with disabilities, particularly in accordance with a general 
        education curriculum; and
            ``(7) support universities and institutions of higher 
        education with minority enrollments of at least 25 percent for 
        the purpose of preparing personnel to work with unserved and 
        underserved populations of children with disabilities.
    ``(c) Leadership Preparation; Authorized Activities.--In carrying 
out this section the Secretary may support any leadership preparation 
activities that are consistent with the objectives described in 
subsection (a), including activities that--
            ``(1) prepare personnel at the advanced graduate, doctoral, 
        and post-doctoral levels of training to administer, enhance, or 
        provide services to children with disabilities, with emphasis 
        on preparation of personnel who are involved with, or will be 
        involved with, efforts to address the needs of unserved and 
underserved populations, children with low-incidence disabilities, and 
children from rural or urban areas;
            ``(2) provide interdisciplinary training for personnel from 
        various disciplines, including teacher preparation faculty, 
        administrators, researchers, supervisors, and other persons, 
        affecting the early intervention, educational, and transitional 
        services of children with disabilities;
            ``(3) prepare professionals at the doctoral and 
        postdoctoral levels at institutions of higher education that 
        are working toward integrating professional development of 
        general education, special education, and other disciplines; 
        and
            ``(4) prepare professionals at the doctoral and 
        postdoctoral levels at institutions of higher education that 
        are successfully recruiting and preparing--
                    ``(A) individuals with disabilities; and
                    ``(B) individuals from groups that are 
                underrepresented in education leadership positions.
    ``(d) Low-Incidence Disabilities; Authorized Activities.--In 
carrying out this section, the Secretary may support any activities for 
children with low-incidence disabilities that are consistent with the 
objectives described in subsection (a), including--
            ``(1) preparing persons who--
                    ``(A) have prior training in educational and other 
                related service fields; and
                    ``(B) are studying to obtain certificates or 
                licensure that will enable the persons to assist 
                children with disabilities to achieve the objectives 
                set out in their individualized education programs 
                described in section 614 and to assist infants and 
                toddlers with disabilities to achieve the outcomes 
                described in their individualized family service plans 
                described in section 677;
            ``(2) providing personnel from various disciplines with 
        interdisciplinary training that will contribute to early 
        intervention, educational, and transitional results for 
        children with disabilities;
            ``(3) preparing personnel in the innovative uses and 
        application of technology to enhance learning through early 
        intervention, educational, and transitional services, by 
        children with disabilities;
            ``(4) preparing personnel to provide early intervention 
        services to children with disabilities;
            ``(5) providing scholarships, with necessary stipends and 
        allowances, to individuals to assist the individuals in 
        preparing to provide services to children with disabilities; 
        and
            ``(6) preparing personnel who work with visually impaired 
        or blind children with disabilities to teach and use braille in 
        the provision of services to such children.
    ``(e) Projects of National Significance; Authorized Activities.--In 
carrying out this section, the Secretary may support any activities 
that are consistent with the objectives described in subsection (a), 
including activities that--
            ``(1) develop and demonstrate effective and efficient 
        practices for preparing personnel to provide services to 
        children with disabilities, including practices that address 
        needs identified through systems change activities funded under 
        part C;
            ``(2) demonstrate the application of significant knowledge 
        derived from research and other sources in the development of 
        programs to prepare personnel to provide services to children 
        with disabilities;
            ``(3) demonstrate models for the preparation of special 
        education and general education personnel, to enable the 
        personnel--
                    ``(A) to acquire the collaboration skills necessary 
                to assist children with disabilities; and
                    ``(B) to achieve results that meet challenging 
                standards of performance expectations, particularly 
                performance expectations within the general education 
                curriculum involved;
            ``(4) demonstrate models that--
                    ``(A) provide interdisciplinary training to 
                individuals within collaborative teams of special 
                education and general education personnel, related 
                services personnel, and family members of children with 
                disabilities; and
                    ``(B) enhance the educational experience of 
                children with disabilities;
            ``(5) demonstrate models that reduce shortages of teachers, 
        and personnel from other relevant disciplines, who serve 
        children with disabilities through reciprocity arrangements 
        between States related to licensure and certification;
            ``(6) develop, evaluate, and disseminate model teaching 
        standards for persons working with children with disabilities; 
        and
            ``(7) promote the transferability, across State and local 
        jurisdictions, of licensure and certification of teachers and 
        administrators working with such children.
    ``(f) Applications.--
            ``(1) In general.--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) Identified state needs.--Any such application shall 
        include information demonstrating to the satisfaction of the 
        Secretary that the activities described in the application will 
        address needs identified by the States the applicant proposes 
        to serve.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated $81,000,000 to carry out this section for fiscal year 
1998, and such sums as may be necessary for each of fiscal years 1999 
through 2002.''.

SEC. 402. CONFORMING AMENDMENTS.

    (a) Higher Education Act of 1965.--
            (1) Section 409A(2) of the Higher Education Act of 1965 (20 
        U.S.C. 1070a-51(2)) is amended by striking ``refer students 
        with disabilities and their families to the postsecondary 
        clearinghouse that is authorized under section 633(c) of the 
        Individuals with Disabilities Education Act'' and inserting 
        ``refer students with disabilities and their families to the 
        activities addressing information preparation and dissemination 
        needs relating to postsecondary services that are authorized 
        under section 644(e)(4) of the Individuals with Disabilities 
        Education Act''.
            (2) The third sentence of section 483(d) of the Higher 
        Education Act of 1965 (20 U.S.C. 1090(d)) is amended by 
        striking ``refer such students to the national clearinghouse on 
        postsecondary education that is authorized under section 633(c) 
        of the Individuals with Disabilities Education Act'' and 
        inserting ``refer such students to the activities addressing 
        information preparation and dissemination needs relating to 
        postsecondary services that are authorized under section 
        644(e)(4) of the Individuals with Disabilities Education Act''.
    (b) Goals 2000: Educate America Act.--Section 402(a)(2)(H) of the 
Goals 2000: Educate America Act (20 U.S.C. 5912(a)(2)(H)) is amended by 
striking clause (ii) and inserting the following:
                            ``(ii) parent training and information 
                        centers and community parent training and 
                        information programs authorized under 
                        subsections (b) and (c), respectively, of 
                        section 643 of the Individuals with 
                        Disabilities Education Act;''.
    (c) Rehabilitation Act of 1973.--
            (1) Section 105(b)(1)(A)(ii) of the Rehabilitation Act of 
        1973 (29 U.S.C. 725(b)(1)(A)(ii)) is amended by striking ``a 
        parent training and information center established pursuant to 
        section 631(e)(1) of the Individuals with Disabilities 
        Education Act (20 U.S.C. 1431(e)(1))'' and inserting ``a parent 
        training and information center or community parent training 
        and information program authorized under subsection (b) or (c), 
        respectively, of section 643 of the Individuals with 
        Disabilities Education Act''.
            (2) Paragraphs (4)(A)(i) and (6) of section 803(c) of the 
        Rehabilitation Act of 1973 (29 U.S.C. 797b(c)) are amended by 
        striking ``parent training and information centers established 
        under section 631 of the Individuals with Disabilities 
        Education Act (20 U.S.C. 1431)'' and inserting ``parent 
        training and information centers and community parent training 
        and information programs authorized under subsections (b) and 
        (c), respectively, of section 643 of the Individuals with 
        Disabilities Education Act''.

SEC. 403. REAUTHORIZATION FOR FISCAL YEAR 1997 OF AUTHORITIES RELATING 
              TO TRAINING PERSONNEL FOR THE EDUCATION OF INDIVIDUALS 
              WITH DISABILITIES.

    (a) Authorization of Appropriations.--Each of paragraphs (1) 
through (4) of section 635(a) of such Act (20 U.S.C. 1435(a)) is 
amended by striking ``fiscal year 1994'' and inserting ``each of fiscal 
years 1994 through 1997''.
    (b) Conforming Amendments.--Each of paragraphs (1) and (3) of 
section 635(a) of such Act is amended by striking ``631(d)'' and 
inserting ``631(e)''.

SEC. 404. EFFECTIVE DATE.

    The amendments made by this title, other than the amendments made 
by section 403, shall take effect on October 1, 1997.

     TITLE V--TECHNICAL ASSISTANCE, SUPPORT, AND DISSEMINATION OF 
                              INFORMATION

SEC. 501. IMPROVING EARLY INTERVENTION, EDUCATIONAL, AND TRANSITIONAL 
              SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES 
              THROUGH COORDINATED TECHNICAL ASSISTANCE, SUPPORT, AND 
              DISSEMINATION OF INFORMATION.

    The Act (29 U.S.C. 1400 et seq.) is amended--
            (1) by striking parts E, F, and G; and
            (2) by inserting the following:

 ``PART E--IMPROVING EARLY INTERVENTION, EDUCATIONAL, AND TRANSITIONAL 
SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES THROUGH COORDINATED 
    TECHNICAL ASSISTANCE, SUPPORT, AND DISSEMINATION OF INFORMATION

``SEC. 641. FINDINGS AND PURPOSES.

    ``(a) In General.--Congress finds that--
            ``(1) national technical assistance, support, and 
        dissemination activities are necessary to ensure that the 
        provisions of parts B and H are fully implemented and achieve 
        early intervention, educational, and transitional results for 
        children with disabilities and their families;
            ``(2) parents, teachers, administrators, and related 
        services personnel need technical assistance and information in 
        a timely, coordinated, and accessible manner in order to 
        improve early intervention, educational, and transitional 
        services and results, at the State and local levels for 
        children with disabilities and their families;
            ``(3) parent training and information activities have taken 
        on increased importance in efforts to assist parents of a child 
        with a disability in dealing with the multiple pressures of 
        rearing such a child and are of particular importance in--
                    ``(A)(i) ensuring the involvement of such parents 
                in planning and decisionmaking with respect to early 
                intervention, educational, and transitional services; 
                and
                    ``(ii) achieving early intervention, educational, 
                and transitional results for children with 
                disabilities;
                    ``(B) providing such parents information on their 
                rights and protections under this Act to ensure 
                improved early intervention, educational, and 
                transitional results for children with disabilities;
                    ``(C) assisting such parents in the development of 
                skills to participate effectively in the education and 
                development of their children and in the transitions 
                described in section 643(d)(7);
                    ``(D) supporting the roles of such parents as 
                participants within systems change partnerships seeking 
                to improve early intervention, educational, and 
                transitional services and results, for children with 
                disabilities and their families; and
                    ``(E) ensuring that such parents who have limited 
                access to services and supports, due to economic, 
                cultural, or linguistic barriers, are provided with 
                access to appropriate parent training and information 
                activities;
            ``(4) children with disabilities need information that 
        helps the children to understand their rights and 
        responsibilities under part B;
            ``(5) the provision of coordinated technical assistance and 
        dissemination of information to State and local agencies, 
        institutions of higher education, and other providers of 
        services to children with disabilities are essential in--
                    ``(A) supporting the process of achieving systems 
                change outcomes;
                    ``(B) supporting actions in areas of priority 
                specific to the improvement of early intervention, 
                educational, and transitional results for children with 
                disabilities;
                    ``(C) conveying information and assistance that 
                are--
                            ``(i) based on current research (as of the 
                        date the information and assistance are 
                        conveyed);
                            ``(ii) accessible and meaningful for use in 
                        supporting systems change activities of State 
                        and local partnerships; and
                            ``(iii) linked directly to improving early 
                        intervention, educational, and transitional 
                        services and results, for children with 
                        disabilities and their families; and
                    ``(D) organizing systems and information networks 
                for such information, based on modern technology 
                related to--
                            ``(i) storing and gaining access to 
                        information; and
                            ``(ii) distributing information in a 
                        systematic manner to parents, students, 
                        professionals, and policymakers;
            ``(6) Federal support for carrying out technology research, 
        technology development, and educational media services and 
        activities has resulted in major innovations that have 
        significantly improved early intervention, educational, and 
        transitional services and results, for children with 
        disabilities and their families; and
            ``(7) such Federal support is needed to--
                    ``(A) stimulate the development of software, 
                interactive learning tools, and devices to address 
                early intervention, educational, and transitional 
                results for children with disabilities who have certain 
                disabilities;
                    ``(B) make information available on technology 
                research, technology development, and educational media 
                services and activities to individuals involved in the 
                provision of early intervention, educational, and 
                transitional services to children with disabilities;
                    ``(C) promote the integration of technology into 
                curricula to improve early intervention, educational, 
                and transitional results for children with 
                disabilities;
                    ``(D) provide incentives for the development of 
                technology and media devices and tools that are not 
                readily found or available because of the small size of 
                potential markets;
                    ``(E) make resources available to pay for such 
                devices and tools and educational media services and 
                activities;
                    ``(F) promote the training of personnel to--
                            ``(i) provide such devices, tools, 
                        services, and activities in a competent manner; 
                        and
                            ``(ii) assist children with disabilities 
                        and their families in using such devices, 
                        tools, services, and activities; and
                    ``(G) coordinate the provision of such devices, 
                tools, services, and activities--
                            ``(i) among State human services programs; 
                        and
                            ``(ii) between such programs and private 
                        agencies.
    ``(b) Purposes.--The purposes of this part are to provide funding 
to ensure that--
            ``(1) children with disabilities, and their parents, 
        receive training and information on their rights and 
        protections under the Act, in order to develop the skills 
        necessary to effectively participate in planning and 
        decisionmaking relating to early intervention, educational, and 
        transitional services and in systems change activities;
            ``(2) parents, teachers, administrators, early intervention 
        personnel, related services personnel, and transition personnel 
        receive coordinated and accessible technical assistance and 
        information to assist such persons through systems change 
        activities and other efforts, to improve early intervention, 
        educational, and transitional services and results, for 
        children with disabilities and their families;
            ``(3) appropriate technology and media are researched, 
        developed, demonstrated, and made available in timely and 
        accessible formats to parents, teachers, and all types of 
        personnel providing services to children with disabilities to 
        support their roles as partners in the improvement and 
        implementation of early intervention, educational, and 
        transitional services and results, for children with 
        disabilities and their families;
            ``(4) children with disabilities understand (on reaching 
        the age of majority specified under appropriate State law) 
        their rights and responsibilities under part B, if the State 
        provides for the transfer of parental rights under section 
        615(j); and
            ``(5) the general welfare of deaf and hard-of-hearing 
        individuals is protected by--
                    ``(A) bringing to such individuals understanding 
                and appreciation of the films and television programs 
                that play an important part in the general and cultural 
                advancement of hearing individuals;
                    ``(B) providing through the films and television 
                programs enriched educational and cultural experiences 
                through which deaf and hard-of-hearing individuals can 
                better understand the realities of their environment; 
                and
                    ``(C) providing wholesome and rewarding experiences 
                that deaf and hard-of-hearing individuals may share.

``SEC. 642. DEFINITIONS.

    ``As used in this part:
            ``(1) Individual with a disability; individuals with 
        disabilities.--The terms `individual with a disability' and 
        `individuals with disabilities' have the meanings given the 
        terms in section 3 of the Technology-Related Assistance for 
        Individuals With Disabilities Act of 1988 (29 U.S.C. 2202).
            ``(2) Partnering entity.--The term `partnering entity' 
        means an entity of a partnership described in section 623(a).

``SEC. 643. PARENT TRAINING AND INFORMATION.

    ``(a) In General.--
            ``(1) Grants.--
                    ``(A) Authority.--The Secretary may make grants to, 
                or enter into contracts or cooperative agreements with, 
                private, nonprofit organizations for the purpose of 
                providing parent training and information activities 
                for parents of children with disabilities, and persons 
                who work with such parents, to enable the parents and 
                persons to participate in, and conduct advocacy for, 
                effective ways, including mediation, to meet the needs 
                of and improve early intervention, educational, and 
                transitional results for children with disabilities.
                    ``(B) Centers and programs.--Such activities may be 
                provided--
                            ``(i) by an organization that operates or 
                        intends, if funded, to operate a parent 
                        training and information center described in 
                        subsection (b); and
                            ``(ii) by a parent organization that 
                        operates or intends, if funded, to operate a 
                        community parent training and information 
                        program described in subsection (c) that is 
                        designed specifically to build capacity of 
                        persons who work with parents of children with 
                        disabilities who are members of unserved and 
                        underserved populations, to demonstrate and 
                        assist in the replication of models for such 
                        activities, and to provide such activities to 
                        address the needs of such parents.
                    ``(C) Proposal.--The Secretary shall make such a 
                grant to an organization that proposes activities that 
                are designed to meet the unique training and 
                information needs, as determined by needs assessment 
                data, of parents of children with disabilities who are 
                living in the area to be served under the grant, 
                particularly parents of children with disabilities who 
                are members of unserved and underserved populations.
            ``(2) Eligible organizations; membership and governance.--
        To be eligible to apply for a grant under this section, an 
        organization--
                    ``(A) shall be governed by a board of directors 
                that--
                            ``(i) represents a coalition, of which a 
                        majority of the members are parents of children 
                        with disabilities, particularly parents of 
                        children with disabilities who are members of 
                        unserved and underserved populations; and
                            ``(ii) includes--
                                    ``(I) professionals in fields 
                                related to the provision of early 
                                intervention services, special 
                                education, and related services; and
                                    ``(II) individuals with 
                                disabilities; or
                    ``(B) shall have a membership that represents the 
                interests of individuals with disabilities, and shall 
                establish a special governing committee--
                            ``(i) of which a majority of the members 
                        are parents of infants and toddlers with 
                        disabilities or of children with disabilities;
                            ``(ii) that includes--
                                    ``(I) professionals in fields 
                                related to the provision of early 
                                intervention services, special 
                                education, and related services; and
                                    ``(II) individuals with 
                                disabilities; and
                            ``(iii) of which the parent and 
                        professional members are broadly representative 
                        of the population to be served by the 
                        organization.
            ``(3) Eligible organizations; capacity and expertise.--To 
        be eligible to apply for a grant under this section, an 
        organization shall demonstrate the capacity and expertise 
        necessary--
                    ``(A) to conduct the parent training and 
                information activities described in paragraph (1); and
                    ``(B) to work with partnering entities carrying out 
                State systems change activities under part C, seeking 
                to improve early intervention, educational, and 
                transitional services and results, for children with 
                disabilities.
    ``(b) Parent Training and Information Centers; Authorized 
Activities.--Each organization that receives a grant under subsection 
(a) to operate a parent training and information center shall--
            ``(1) provide parent training and information activities 
        that meet the training and information needs of all parents of 
        children with disabilities living in the area to be served 
        under the grant, particularly parents of children with 
        disabilities who are members of unserved and underserved 
        populations;
            ``(2) serve the parents of children with disabilities who, 
        collectively, have the full range of disabilities;
            ``(3) assist the parents of children with disabilities in 
        better understanding the nature of the disabilities of their 
        children and the needs of their children to obtain improved 
        early intervention, educational, and transitional services and 
        results;
            ``(4) assist such parents in communicating effectively with 
        early intervention services personnel, general and special 
        education personnel, administrators, and other relevant 
        persons;
            ``(5) assist such parents in participating in 
        decisionmaking processes, including the development of 
        individualized education programs under part B and 
        individualized family service plans under part H, for children 
        with disabilities;
            ``(6) assist such parents in obtaining appropriate 
        information about the range of options, programs, supports, and 
        resources available at national, State, and local levels to 
        assist children with disabilities and their families;
            ``(7) assist such parents in understanding provisions of 
        this Act relating to the education of, and provision of early 
        intervention services for, children with disabilities;
            ``(8) assist such parents in participating as informed 
        participants in State systems change activities, especially 
        systems change activities funded under part C;
            ``(9) ensure that parents of children who are members of 
        unserved and underserved populations, or of inappropriately 
        identified populations, and who are being referred for or are 
        receiving special education services, are informed about 
        problems connected with inappropriately identifying such 
        children as described in section 602(a)(13);
            ``(10) assist children with disabilities, particularly such 
        children who are members of unserved and underserved 
        populations, in understanding their rights and responsibilities 
        under this Act on reaching the age of majority for the State in 
        which such a child resides, if the State provides for the 
        transfer of parental rights under section 615(j) to the 
        children;
            ``(11) report to the Secretary on--
                    ``(A) the number of such parents for whom the 
                organization provided parent training and information 
                activities; and
                    ``(B) the effectiveness of strategies used to reach 
                and serve such parents, including low-income parents 
                from urban areas, low-income parents from rural areas, 
                parents of children with disabilities with limited-
                English proficiency, and parents with disabilities;
            ``(12) establish cooperative partnerships with all other 
        entities operating parent training and information centers, 
        including community parent training and information programs 
        described in subsection (c), in the State in which the 
        organization is operating a parent training and information 
        center; and
            ``(13) consult and establish networks with appropriate 
        national, regional, and local agencies and organizations, such 
        as protection and advocacy agencies, within the geographic area 
        served by the organization, that serve or assist children with 
        disabilities and their families.
    ``(c) Community Parent Training and Information Programs; 
Authorized Activities.--
            ``(1) In general.--Each parent organization that receives a 
        grant under subsection (a) to carry out a community parent 
        training and information program shall build the capacity, 
        demonstrate and assist in the replication of the models, and 
        provide the activities described in subsection (a)(1)(B)(ii).
            ``(2) Parents assisted.--Each such grant recipient shall 
        build such capacity, demonstrate and assist in the replication 
        of such models, and provide such activities, in a manner that 
        will help ensure that parents of children with disabilities who 
        are members of unserved and underserved populations participate 
        in parent training and information activities.
            ``(3) Objectives.--The services described in paragraph (1) 
        shall result in new capacity, demonstrated and replicated 
        models, and training and information activities, needed to 
        enable the parents described in paragraph (2) to participate 
        effectively in helping their children with disabilities and to 
        serve as informed participants in systems change partnerships 
        within their State, leading to improved early intervention, 
        educational, and transitional services and results, for all 
        children with disabilities and their families.
            ``(4) Community training and information activities.--Such 
        services shall--
                    ``(A) include capacity building, demonstration and 
                replication of models, and the provision of training 
                and information activities, that meet the needs of 
                parents of children with disabilities who are members 
                of unserved and underserved populations;
                    ``(B) include activities carried out through 
                cooperative partnerships with the parent training and 
                information centers;
                    ``(C) include accommodations and strategies to meet 
                the specific needs of families who experience 
                significant isolation from available sources of 
                information and support;
                    ``(D) demonstrate, utilize, and document the use 
                and effectiveness of, model approaches to address the 
                multiple needs of children with disabilities who are 
                members of unserved and underserved populations; and
                    ``(E) ensure that parents of children who are 
                members of unserved and underserved populations, or of 
                inappropriately identified populations, and who are 
                being referred for or are receiving special education 
                services, are informed about problems connected with 
                inappropriately identifying such children as described 
                in section 602(a)(13).
            ``(5) Report.--Each parent organization that receives a 
        grant under subsection (a) to operate a community parent 
        training and information program shall report to the Secretary 
        on--
                    ``(A) the number of parents of children with 
                disabilities who are members of unserved and 
                underserved populations for whom the organization 
                provided parent training and information activities;
                    ``(B) the effectiveness and impact of strategies 
                used to reach and serve such parents; and
                    ``(C) the impact of the increased capacity 
                described in subsection (a)(1)(B)(ii) the provision of 
                parent training and information activities and improved 
                early intervention, educational, and transitional 
                results for such children.
    ``(d) Technical Assistance; Authorized Activities.--The Secretary 
may provide technical assistance to organizations to develop, 
coordinate, and disseminate the following priority parent training and 
information activities:
            ``(1) Coordinating parent training efforts.
            ``(2) Providing or helping to disseminate information to 
        centers funded under this part.
            ``(3) Assisting the centers in evaluating their activities 
        under this part.
            ``(4) Promoting the use of technology by the centers to 
        make information available.
            ``(5) Reaching parents of children with disabilities who 
        are members of unserved and underserved populations.
            ``(6) Including children with disabilities in general 
        education programs.
            ``(7)(A) Supporting the transition of children with 
        disabilities from--
                    ``(i) early intervention services to preschool;
                    ``(ii) preschool to elementary school; and
                    ``(iii) secondary school to postsecondary school 
                and employment.
            ``(B) Promoting mediation and alternative methods of 
        dispute resolution for children with disabilities.
            ``(8) Assisting parent training and information centers in 
        becoming effective partners in State systems change activities, 
        leading to improved early intervention, educational, and 
        transitional results for children with disabilities.
    ``(e) Applications.--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.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $13,600,000 for fiscal year 
1998, and such sums as may be necessary for each of fiscal years 1999 
through 2002.

``SEC. 644. COORDINATED TECHNICAL ASSISTANCE AND DISSEMINATION.

    ``(a) In General.--The Secretary may, directly or through grants, 
contracts, and cooperative agreements with eligible entities, provide 
technical assistance and information through institutes, resource 
centers, clearinghouses, and programs that support States and local 
entities in building capacity to improve early intervention, 
educational, and transitional services and results, for children with 
disabilities and their families, and address systems change goals and 
priorities.
    ``(b) Systemic Technical Assistance; Authorized Activities.--In 
carrying out this section, the Secretary may carry out or support any 
technical assistance activities that are consistent with the objectives 
described in subsection (a), including activities that--
            ``(1) assist States, local educational agencies, and 
        partnering entities with the process of planning systemic 
        changes that will promote improved early intervention, 
        educational, and transitional results for children with 
        disabilities;
            ``(2) promote change through a multistate or regional 
        framework that benefits States, local educational agencies, and 
        partnering entities that are in the process of achieving 
        systems change outcomes;
            ``(3) increase the depth and utility of information in 
        ongoing and emerging areas of priority identified as needs by 
        States, local educational agencies, and partnering entities, 
        that are in the process of achieving systems change outcomes;
            ``(4) develop long-term working relationships with States, 
        local educational agencies, and other partnering entities, by--
                    ``(A) developing familiarity with the practices, 
                procedures, and policies of the States, agencies, and 
                entities;
                    ``(B) providing services that are based on the 
                needs and concerns identified by the partnering 
                entities, rather than on externally imposed criteria or 
                topics;
                    ``(C) focusing on accountability of the States, 
                agencies, and entities for improved early intervention, 
                educational, and transitional results for children with 
                disabilities; and
                    ``(D) coordinating with clearinghouses to 
                disseminate information and data on needs and results 
                of children with disabilities.
    ``(c) Interorganizational Technical Assistance; Authorized 
Activities.--In carrying out this section, the Secretary may carry out 
or support any activities that are consistent with the objectives 
described in subsection (a), including activities for States, local 
educational agencies, and other partnering entities, that--
            ``(1) focus on major requirement areas of this Act in which 
        interorganizational issues are present and are perceived to be 
        barriers to systemic change and to improved early intervention, 
        educational, and transitional results for children with 
        disabilities;
            ``(2) facilitate interorganizational collaboration at 
        Federal, State, and local levels in order to achieve such 
        change and such improved results; and
            ``(3) consist of extensive collaboration with noneducation 
        entities (such as entities that provide services for infants, 
        early intervention services, mental health services, health 
        services, and vocational rehabilitation services) in order to 
        facilitate systems change outcomes and the improvement of early 
        intervention, educational, and transitional results for 
        children with disabilities.
    ``(d) Specialized Technical Assistance; Authorized Activities.--In 
carrying out this section, the Secretary may carry out or support any 
activities that are consistent with the objectives described in 
subsection (a), including activities that--
            ``(1) focus on specific areas of high priority need that--
                    ``(A) are identified by States, local educational 
                agencies, and other partnering entities;
                    ``(B) require the development of new knowledge, or 
                the analysis and synthesis of substantial bodies of 
                information not readily available to the States, 
                agencies, and entities; and
                    ``(C) will contribute significantly to the 
                improvement of early intervention, educational, and 
                transitional services and results, for children with 
                disabilities and their families;
            ``(2) focus on needs and issues that are specific to a 
        population of children with disabilities, such as the provision 
        of single State and multi-State technical assistance and 
        inservice training to--
                    ``(A) schools and agencies serving deaf-blind 
                children and their families; and
                    ``(B) programs and agencies serving other groups of 
                children with low-incidence disabilities and their 
                families; and
            ``(3) address the postsecondary education needs of 
        individuals who are deaf or hard of hearing through the 
        operation of 4 model regional center programs.
    ``(e) National Information Dissemination and Referral; Authorized 
Activities.--In carrying out this section, the Secretary may carry out 
or support information dissemination and referral activities that are 
consistent with the objectives described in subsection (a), including 
activities that address national needs for the preparation and 
dissemination of information relating to eliminating barriers to 
systems change outcomes and improving early intervention, educational, 
and transitional results for children with disabilities, including 
information relating to--
            ``(1) infants and toddlers with disabilities and their 
        families, and children with disabilities (including youth with 
        disabilities) and their families;
            ``(2) the provision of services and supports to deaf-blind 
        children;
            ``(3) the provision of services to blind and print disabled 
        children;
            ``(4) the provision of postsecondary services to 
        individuals with disabilities; and
            ``(5) the need for and use of personnel to provide services 
        to children with disabilities.
    ``(f) National Technical Assistance and Dissemination Coordination 
Activities; Authorized Activities.--In carrying out this section, the 
Secretary may carry out or support any activities that are consistent 
with the objectives described in subsection (a), including activities 
that--
            ``(1) link and coordinate activities of--
                    ``(A) all information and technical assistance 
                programs funded under this Act; and
                    ``(B) other programs that support systems change 
                outcomes, including programs that involve early 
                intervention, educational, or transitional services;
            ``(2) coordinate national level information on issues 
        that--
                    ``(A) are of critical interest to State educational 
                agencies and local educational agencies, other agency 
                personnel, parents of children with disabilities, and 
                individuals with disabilities; and
                    ``(B) include issues relating to--
                            ``(i) educational reform and systemic 
                        change within States;
                            ``(ii) interorganizational collaboration 
                        and service provision;
                            ``(iii) personnel recruitment, retention, 
                        and preparation;
                            ``(iv) services for populations of children 
                        with low-incidence disabilities, including 
                        deaf-blind children, and targeted age 
                        groupings;
                            ``(v) promoting schools that are safe and 
                        conducive to learning; and
                            ``(vi) State lead agencies that serve 
                        infants and toddlers with disabilities;
            ``(3) provide information on organizing systems and 
        information networks, concerning information retrieval and 
        dissemination; and
            ``(4) provide information concerning the value and 
        effectiveness of technical assistance and dissemination 
        activities and their impact on improved early intervention, 
        educational, and transitional services and results, for 
        children with disabilities and their families.
    ``(g) Applications.--An 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.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $49,434,000 for fiscal year 
1998, and such sums as may be necessary for each of fiscal years 1999 
through 2002.

``SEC. 645. TECHNOLOGY DEVELOPMENT, DEMONSTRATION, AND UTILIZATION AND 
              MEDIA SERVICES.

    ``(a) In General.--The Secretary may make grants to, and enter into 
contracts and cooperative agreements with, eligible entities and 
consortia of eligible entities, to support activities described in 
subsections (b) and (c).
    ``(b) Technology Development, Demonstration and Utilization; 
Authorized Activities.--In carrying out this section, the Secretary may 
support activities that consist of--
            ``(1) conducting research and development activities on the 
        use of innovative and emerging technologies for children with 
        disabilities;
            ``(2) promoting the demonstration and 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) providing technical assistance to recipients of 
        assistance under this section in the development of accessible, 
        effective, and usable products;
            ``(4) communicating information on available technology and 
        the uses of such technology to assist children with 
        disabilities;
            ``(5) supporting the implementation of research programs on 
        captioning or video description;
            ``(6) supporting research, development, and dissemination 
        of technology with universal design features, so that the 
        technology is accessible to children with disabilities without 
        further modification or adaptation; and
            ``(7) demonstrating the use of publicly funded 
        telecommunications systems to provide parents and teachers with 
        information and training concerning early diagnosis of, 
        intervention for, and effective teaching strategies for young 
        children with reading disabilities.
    ``(c) Educational Media Services; Authorized Activities.--In 
carrying out this section, the Secretary may support activities that 
consist of--
            ``(1) carrying out educational media activities that are 
        designed to be of educational value to children with 
        disabilities;
            ``(2) providing video description, open captioning, or 
        closed captioning of television programs, videos, or 
        educational materials;
            ``(3) distributing captioned and described videos or 
        educational materials;
            ``(4) providing, through the national education library for 
        the blind and print-disabled, recorded free educational 
        materials, including textbooks, for visually impaired and 
        print-disabled students in elementary, secondary, 
        postsecondary, and graduate schools;
            ``(5) providing, through the National Theater of the Deaf 
        and other means, cultural experiences--
                    ``(A) enriching the lives of deaf and hard-of-
                hearing children and adults;
                    ``(B) increasing public awareness and understanding 
                of deafness and of the artistic and intellectual 
                achievements of deaf and hard-of-hearing persons; and
                    ``(C) promoting the integration of hearing, deaf, 
                and hard-of-hearing persons through shared cultural, 
                educational, and social experiences; and
            ``(6) compiling and evaluating appropriate data relating to 
        the activities described in paragraphs (1) through (5).
    ``(d) Applications.--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.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $30,000,000 for fiscal year 
1998, and such sums as may be necessary for each of fiscal years 1999 
through 2002.''.

SEC. 502. CONFORMING AMENDMENTS.

    (a) Individuals With Disabilities Education Act.--Section 715 (20 
U.S.C. 1491n) is amended by striking ``nothing in parts A through H of 
this title'' and inserting ``no provision of this title, other than a 
provision of this part,''.
    (b) Developmental Disabilities Assistance and Bill of Rights Act.--
Section 124(c)(4)(F)(ii) of the Developmental Disabilities Assistance 
and Bill of Rights Act (42 U.S.C. 6024(c)(4)(F)(ii)) is amended by 
striking ``part D'' and inserting ``part E''.

SEC. 503. REAUTHORIZATIONS FOR FISCAL YEAR 1997.

    (a) Reauthorization for Fiscal Year 1997 of Authorities Relating to 
Research in the Education of Individuals With Disabilities.--Section 
643 of the Individuals with Disabilities Education Act (20 U.S.C. 1443) 
is amended by striking ``fiscal year 1994'' and inserting ``each of 
fiscal years 1994 through 1997''.
    (b) Reauthorization for Fiscal Year 1997 of Authorities Relating to 
Instructional Media for Individuals With Disabilities.--Section 653 of 
the Individuals with Disabilities Education Act (20 U.S.C. 1454) is 
amended by striking ``fiscal year 1994'' and inserting ``each of fiscal 
years 1994 through 1997''.
    (c) Reauthorization for Fiscal Year 1997 of Authorities Relating to 
Technology, Educational Media, and Materials for Individuals With 
Disabilities.--Section 662 of the Individuals with Disabilities 
Education Act (20 U.S.C. 1462) is amended by striking ``fiscal year 
1994'' and inserting ``each of fiscal years 1994 through 1997''.

SEC. 504. EFFECTIVE DATE.

    The amendments made by this title, other than the amendments made 
by section 503, shall take effect on October 1, 1997.

            TITLE VI--INFANTS AND TODDLERS WITH DISABILITIES

SEC. 601. FINDINGS AND POLICY.

    Section 671(b) (20 U.S.C. 1471(b)) is amended--
            (1) in paragraph (1), by striking ``program'' and inserting 
        ``system'';
            (2) at the end of paragraph (2), by striking ``and'';
            (3) in paragraph (3), by striking the period and inserting 
        ``, and''; and
            (4) by adding at the end the following:
            ``(4) to encourage States to expand opportunities for 
        infants and toddlers with disabilities who are at risk of 
        having substantial developmental delays if early intervention 
        services are not provided to the infants and toddlers.''.

SEC. 602. DEFINITIONS.

    (a) Infant or Toddler With a Disability.--Section 672(1) (20 U.S.C. 
1472(1)) is amended--
            (1) by striking ``(1)'' and inserting ``(4) Infant or 
        toddler with a disability.--'';
            (2) in the matter preceding subparagraph (A)--
                    (A) by striking ``The term `infants and toddlers 
                with disabilities' means individuals'' and inserting 
                ``The term `infant or toddler with a disability' means 
                a child''; and
                    (B) by striking ``birth to age 2, inclusive, who 
                need early intervention services because they'' and 
                inserting ``birth through age 2 needs early 
                intervention services because the child'';
            (3) in subparagraph (A), by striking ``are experiencing 
        developmental delays'' and inserting ``is experiencing a 
        developmental delay'';
            (4) in subparagraph (B)--
                    (A) by striking ``have'' and inserting ``has''; and
                    (B) by striking ``which'' and inserting ``that''; 
                and
            (5) by striking the second sentence and inserting the 
        following: ``Such term may also include, at the discretion of a 
        State, a child from birth through age 2 who is at risk of 
        having a substantial developmental delay if early intervention 
        services are not provided (referred to individually in this 
        part as an `at risk infant or toddler' and collectively in this 
        part as `at risk infants and toddlers').''.
    (b) Headings.--Section 672 (20 U.S.C. 1472) is amended--
            (1) by striking all that precedes paragraph (4) (as 
        redesignated in subsection (a)) and inserting the following:

``SEC. 672. DEFINITIONS.

    ``As used in this part:'';
            (2) in paragraph (2), by striking ``(2)'' and inserting 
        ``(3) Early intervention services.--'';
            (3) in paragraph (3), by striking ``(3)'' and inserting 
        ``(2) Developmental delay.--'';
            (4) in paragraph (4), by striking ``(4)'' and inserting 
        ``(1) Council.--'';
            (5) by moving paragraph (2) (as redesignated in paragraph 
        (3)) to the end of the section;
            (6) by moving paragraph (3) (as redesignated in paragraph 
        (2)) to the end of the section; and
            (7) by moving paragraph (4) (as redesignated in subsection 
        (a)) to the end of the section.
    (c) Infants and Toddlers With Disabilities.--Section 672 (20 U.S.C. 
1472) is amended by adding at the end the following:
            ``(5) Infants and toddlers with disabilities.--The term 
        `infants and toddlers with disabilities' means more than 1 
        infant or toddler with a disability.''.

SEC. 603. GENERAL AUTHORITY.

    Section 673 (20 U.S.C. 1473) is amended by striking ``develop'' and 
inserting ``implement''.

SEC. 604. ELIGIBILITY.

    Section 674 (20 U.S.C. 1474) is amended--
            (1) by striking the heading and inserting the following:

                            ``eligibility'';

        and
            (2) by striking ``State has established'' and all that 
        follows and inserting ``State has in effect the statewide 
        system that is required by section 676.''.

SEC. 605. CONTINUING ELIGIBILITY.

    Section 675 (20 U.S.C. 1475) is repealed.

SEC. 606. REQUIREMENTS FOR STATEWIDE SYSTEM.

    (a) In General.--Section 676(a) (20 U.S.C. 1476(a)) is amended--
            (1) by striking ``statewide system of'' and inserting 
        ``statewide,''; and
            (2) by striking ``programs providing'' and inserting 
        ``system that provides''.
    (b) Minimum Components.--Section 676(b) (20 U.S.C. 1476(b) is 
amended--
            (1) in paragraph (1), by striking ``developmentally 
        delayed'' and inserting ``developmental delay'';
            (2) by striking paragraph (2) and inserting the following:
            ``(2) a State policy in effect ensuring that appropriate 
        early intervention services are available to all infants and 
        toddlers with disabilities (including Indian infants and 
        toddlers with disabilities on reservations) in the State and 
        their families,'';
            (3) in paragraph (6), by striking ``infants with'' and 
        inserting ``infants and toddlers with'';
            (4) in paragraph (8)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``613(a)(3)'' and inserting ``612(a)(14)'';
                    (B) in subparagraph (C), by inserting after ``rural 
                areas'' the following: ``and inner city areas''; and
                    (C) in subparagraph (D), by striking ``a preschool 
                program under section 619 of part B.'' and inserting 
                ``preschool or other appropriate services,'';
            (5) at the end of paragraph (13), by striking ``and'';
            (6) in paragraph (14), by striking ``on the numbers of 
        infants'' and all that follows and inserting ``that is 
        requested by the Secretary under section 618 and that relates 
        to this part, and''; and
            (7) by adding at the end the following:
            ``(15) a Council that meets the requirements of section 
        682.''.

SEC. 607. INDIVIDUALIZED FAMILY SERVICE PLAN.

    Section 677 (20 U.S.C. 1477) is amended--
            (1) in subsection (a)(3), by striking ``or guardian'';
            (2) in subsection (d)(8)--
                    (A) by striking ``supporting'' and inserting ``to 
                support''; and
                    (B) by striking ``services provided'' and all that 
                follows and inserting ``preschool or other appropriate 
                services.''; and
            (3) in subsection (e), by striking ``or guardian'' each 
        place it appears.

SEC. 608. STATE APPLICATION AND ASSURANCES.

    (a) Application.--Section 678(a) (20 U.S.C. 1478(a)) is amended--
            (1) in paragraph (3), by striking the comma at the end and 
        inserting the following: ``, including--
                    ``(A) information demonstrating to the satisfaction 
                of the Secretary that the State has in effect a 
                statewide system required by section 676, and
                    ``(B) a description of services to be provided to 
                infants and toddlers with disabilities and their 
                families under this part,'';
            (2) by striking paragraph (4) and inserting the following:
            ``(4) a statement regarding whether the State will serve at 
        risk infants and toddlers as infants and toddlers with 
        disabilities,'';
            (3) in paragraph (6), by striking ``, for the fifth and 
        succeeding fiscal years,''; and
            (4) by striking paragraph (8) and inserting the following:
            ``(8) a description of the policies and procedures to be 
        used--
                    ``(A) to ensure a smooth transition for children 
                who are infants and toddlers with disabilities 
                receiving early intervention services under this part 
                to preschool or other appropriate services, including a 
                description of--
                            ``(i) how the family of such a child will 
                        be included in the transition plans required by 
                        subparagraph (C), and
                            ``(ii) how the lead agency designated or 
                        established under section 676(b)(9) will--
                                    ``(I) notify the local educational 
                                agency for the area in which such a 
                                child resides that the child will 
                                shortly reach the age for eligibility 
                                for preschool services under part B, as 
                                determined in accordance with State 
                                law,
                                    ``(II) in the case of such a child 
                                who may be eligible for such preschool 
                                services, with the approval of the 
                                family of the child, convene a 
                                conference among the lead agency, the 
                                family, and the local educational 
                                agency at least 90 days (and at the 
                                discretion of all such parties, up to 6 
                                months) before the child is eligible 
                                for the preschool services, to discuss 
                                any such services that the child may 
                                receive, and
                                    ``(III) in the case of such a child 
                                who may not be eligible for such 
                                preschool services, with the approval 
                                of the family, make reasonable efforts 
                                to convene a conference among the lead 
                                agency, the family, and providers of 
                                other appropriate services for children 
                                who are not eligible for preschool 
                                services under part B, to discuss the 
                                appropriate services that the child may 
                                receive,
                    ``(B) to review the program options for the child 
                for the period beginning on the third birthday of the 
                child and ending on the last day of the school year in 
                which such birthday occurs, and
                    ``(C) to establish a transition plan for the child, 
                and''.
    (b) Statement of Assurances.--Section 678(b)(7) (20 U.S.C. 
1478(b)(7)) is amended--
            (1) by striking ``beginning in fiscal year 1992,''; and
            (2) by striking ``and rural'' and inserting ``rural, and 
        inner city''.

SEC. 609. USES OF FUNDS.

    Section 679 (20 U.S.C. 1479) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``plan, develop, and'';
            (2) at the end of paragraph (2), by striking ``and'';
            (3) in paragraph (3), by striking the period and inserting 
        ``, and''; and
            (4) by adding at the end is the following:
            ``(4) in any State that does not provide services for at 
        risk infants and toddlers under section 676(a), to strengthen 
        the statewide system by initiating, expanding, or improving 
        collaborative efforts related to at risk infants and toddlers, 
        including establishing linkages with appropriate public, and 
        private, community-based organizations, services, and 
        personnel, for the purposes of--
                    ``(A) identifying and evaluating at risk infants 
                and toddlers,
                    ``(B) making referrals of the infants and toddlers 
                identified and evaluated under subparagraph (A), and
                    ``(C) conducting periodic followup on each such 
                referral to determine if the status of the infant or 
                toddler involved has changed with respect to the 
                eligibility of the infant or toddler under this 
                part.''.

SEC. 610. PROCEDURAL SAFEGUARDS.

    Section 680 (20 U.S.C. 1480) is amended by striking the matter 
preceding ``The procedural'' and inserting the following:

``SEC. 680. PROCEDURAL SAFEGUARDS.

    ``(a) Minimum Procedures.--''.
    (b) Procedures.--Section 680(a) (20 U.S.C. 1480(a)) (as designated 
in subsection (a)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``The'' and all that follows through ``following:'' and 
        inserting ``To meet the requirement of section 672(b)(12), each 
        State, in providing a statewide system under this part, shall, 
        through State statute, regulation, or other written policy, 
        provide at a minimum for the following:'';
            (2) in the second sentence of paragraph (1), by striking 
        ``, which action may be brought'';
            (3) in paragraph (2), by striking ``or guardians'';
            (4) in paragraph (3), by striking ``or guardian'';
            (5) in paragraph (4), by striking ``or a guardian'';
            (6) in paragraph (5), by striking ``or guardian'' each 
        place it appears;
            (7) in paragraph (6), by striking ``or guardian'';
            (8) in paragraph (7)--
                    (A) by striking ``or guardian''; and
                    (B) by striking ``or guardian's'';
            (9) in paragraph (8)--
                    (A) by striking ``or guardian''; and
                    (B) by striking the following:
            ``(8) During'' and inserting the following:
    ``(b) Services During Pendency of Proceedings.--The procedural 
safeguards required to be included in a statewide system under section 
676(b)(12) shall also include a measure to ensure that during''; and
            (10) by inserting after paragraph (7) the following:
            ``(8) The right to use mediation in accordance with section 
        615(e), except that--
                    ``(A) a reference in such section to the State 
                educational agency shall be considered to refer to the 
                lead agency of the State designated or established 
                under section 676(b)(9), and
                    ``(B) a reference in such section to a public 
                agency shall be understood to refer to a local services 
                provider or the lead agency, as the case may be.''.

SEC. 611. STATE INTERAGENCY COORDINATING COUNCIL.

    (a) Composition.--Section 682(b)(1) (20 U.S.C. 1482(b)(1)) is 
amended--
            (1) in subparagraph (E)--
                    (A) by striking ``At least one member shall be'' 
                and inserting ``There shall be at least one member'';
                    (B) by striking ``families and'' and inserting the 
                following: ``families, and from any other State agency 
                involved in the provision of services to at risk 
                infants and toddlers, and each such member''; and
                    (C) by striking ``such agencies'' and inserting 
                ``the appropriate agency''; and
            (2) by adding after subparagraph (G) the following:
            ``(H) At least one member shall be a representative from a 
        Head Start agency or Head Start program in the State.
            ``(I) At least one member shall be a representative from 
        the State agency responsible for child care.''.
    (b) Functions of Council.--Section 682(e) (20 U.S.C. 1482(e)) is 
amended--
            (1) in paragraph (1)(C), by striking ``services provided'' 
        and all that follows and inserting ``preschool or other 
        appropriate services, and'';
            (2) in paragraph (2), by striking ``children'' and all that 
        follows and inserting ``children from birth through age 5.''; 
        and
            (3) by inserting after paragraph (2) the following:
    ``(3) The Council may advise appropriate agencies in the State with 
respect to the integration of services for infants and toddlers with 
disabilities (including at risk infants and toddlers) and their 
families, regardless of whether at risk infants and toddlers are 
eligible for early intervention services in the State.''.
    (c) Existing Councils.--Section 682 (20 U.S.C. 1482) is amended by 
striking subsection (g).

SEC. 612. CONFORMING AMENDMENT.

    Section 683(3) (20 U.S.C. 1483(3)) is amended by striking 
``intermediate educational agencies'' and inserting ``educational 
service agencies''.

SEC. 613. ALLOCATION OF FUNDS.

    (a) Reservation.--Section 684(a) (20 U.S.C. 1484(a)) is amended--
            (1) by striking ``(a)'' and inserting ``(a)(1)'';
            (2) by inserting after ``reserve'' the following: ``up 
        to''; and
            (3) by adding at the end the following:
    ``(2) The provisions of section 501 of Public Law 95-134 (48 U.S.C. 
1469a) (relating to permitting the consolidation of grants to insular 
areas referred to in such section) shall not apply to funds the areas 
receive under this part.''.
    (b) Tribes.--Section 684(b) (20 U.S.C. 1484(b)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``The Secretary'' and all that 
                follows through ``tribal organization shall receive an 
                amount based'' and inserting ``For each fiscal year, 
                the Secretary of the Interior shall distribute the 
                entire amount of a payment received under paragraph (1) 
                by providing to each such tribe or tribal organization 
                an amount based'';
                    (B) by striking ``the reservation'' and inserting 
                ``the reservation involved''; and
                    (C) by striking ``all tribes'' and inserting ``all 
                such tribes''; and
            (2) in paragraph (4)--
                    (A) in the first sentence, by striking ``children 
                aged 0-2, inclusive,'' and inserting ``children from 
                birth through age 2''; and
                    (B) in the third sentence, by striking ``public or 
                private nonprofit organizations'' and inserting 
                ``public or private nonprofit agencies or 
                organizations''.
    (c) Federal Interagency Coordinating Council and Panel of 
Experts.--Section 684 (20 U.S.C. 1484) is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (e) and (f), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) The Secretary shall reserve up to .0005 of the amount 
appropriated under section 687 for any fiscal year for the operation of 
the Federal Interagency Coordinating Council established under section 
685, other than activities of the panel of experts carried out under 
section 686.
    ``(d) The Secretary may reserve up to $100,000 for the expenses of 
the panel of experts established under section 686.''.
    (d) Remainder.--Section 684 (20 U.S.C 1484) is amended in 
subsection (e) (as redesignated in subsection (c)(1))--
            (1) in paragraph (1)--
                    (A) by striking ``(3), (4), and (5)'' and inserting 
                ``(2), (3), and (4)''; and
                    (B) by striking ``(a) and (b)'' and inserting ``(a) 
                through (d) and section 618(e)'';
            (2) by striking paragraph (2);
            (3) by redesignating paragraphs (3) through (6) as 
        paragraphs (2) through (5), respectively;
            (4) in paragraph (2) (as redesignated in paragraph (3))--
                    (A) in the text preceding subparagraph (A), by 
                striking ``paragraphs (4) and (5)'' and inserting 
                ``paragraphs (3) and (4)''; and
                    (B) in subparagraph (A), by striking ``, 
                excluding'' and all that follows and inserting a 
                semicolon;
            (5) in paragraph (3) (as redesignated in paragraph (3)), in 
        subparagraph (A), by striking ``(5)'' and inserting ``(4)''; 
        and
            (6) in paragraph (5) (as redesignated in paragraph (3))--
                    (A) in the text preceding subparagraph (A), by 
                striking ``paragraph (1)'' and inserting ``this 
                subsection'';
                    (B) in subparagraph (A), by striking ``children 
                from birth to age 2, inclusive,'' and inserting 
                ``children from birth through age 2;''; and
                    (C) in subparagraph (B), by striking ``does not 
                include'' and all that follows and inserting ``means 
                each of the several States, the District of Columbia, 
                and the Commonwealth of Puerto Rico.''.
    (e) Reallotment.--Section 684(f) (20 U.S.C. 1484(f)) is amended by 
striking ``(c)(1)'' and inserting ``(e)(1)''.

SEC. 614. FEDERAL INTERAGENCY COORDINATING COUNCIL.

    (a) Establishment and Purpose.--Section 685(a)(1)(A) (20 U.S.C. 
1484a(a)(1)(A)) is amended by striking ``relating to early 
intervention'' and all that follows and inserting ``across Federal, 
State, and local agencies, relating to--
                            ``(i) early intervention services for 
                        infants and toddlers with disabilities 
                        (including at risk infants and toddlers) and 
                        their families; and
                            ``(ii) preschool or other appropriate 
                        services for children with disabilities;''.
    (b) Composition.--Section 685(b) (20 U.S.C. 1484a(b)) is amended--
            (1) in paragraph (2), by inserting before the semicolon the 
        following: ``and a representative of the Office of Educational 
        Research and Improvement;'';
            (2) in paragraph (15), by inserting after ``a 
        representative of'' the following: ``the Children's Bureau, and 
        a representative of the Head Start Bureau, of'';
            (3) in paragraph (16), by striking ``Alcohol, Drug Abuse 
        and Mental Health Administration'' and inserting ``Substance 
        Abuse and Mental Health Services Administration'';
            (4) in paragraph (17), by striking ``Aids'' and inserting 
        ``AIDS''; and
            (5) in paragraph (18)--
                    (A) by striking ``at least 3''; and
                    (B) by inserting after ``12 or under'' the 
                following: ``(which parents shall constitute at least 
                20 percent of the members of the council)''.
    (c) Functions of the Council.--Section 685(d)(1) (20 U.S.C. 
1484a(d)(1)) is amended by striking ``Secretary in the performance'' 
and all that follows and inserting ``Secretary of Education, Secretary 
of Health and Human Services, Secretary of Defense, Secretary of the 
Interior, Secretary of Agriculture, and Commissioner of Social Security 
in the performance of their responsibilities related to serving 
children from birth through age 5 who are eligible for services under 
this part or under part B;''.
    (d) Federal Advisory Commission Act Inapplicable.--Section 685 (20 
U.S.C. 1484a) is amended by adding at the end the following:
    ``(f) Federal Advisory Committee Act.--The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the establishment or 
operation of the council.''.

SEC. 615. STUDY OF DEFINITION OF DEVELOPMENTAL DELAY.

    Part H (20 U.S.C. 1471 et seq.) is amended--
            (1) by striking section 686; and
            (2) by adding at the end the following:

``SEC. 686. STUDY OF DEFINITION OF DEVELOPMENTAL DELAY.

    ``(a) Panel of Experts.--
            ``(1) In general.--Not later than 3 months after the date 
        of enactment of the Individuals with Disabilities Education Act 
        Amendments of 1996, the Federal Interagency Coordinating 
        Council established under section 685 shall convene a panel of 
        experts to develop recommendations to the Secretary for a model 
        definition of the term `developmental delay', to assist States 
        in implementing section 676(b)(1).
            ``(2) Members.--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 to be 
                appropriate.
            ``(3) Other membership requirements.--The panel shall--
                    ``(A) have no more than 12 members; and
                    ``(B) include at least 1 parent of a child with a 
                disability who is younger than age 6.
    ``(b) Duties.--In developing the recommendations referred to in 
subsection (a)(1), the panel shall--
            ``(1) review the definition of infants and toddlers with 
        disabilities specified in section 672(1);
            ``(2) conduct an analysis of the criteria that are used by 
        States under this part to determine whether an individual has a 
        developmental delay or a diagnosed physical or mental 
        condition, for purposes of ascertaining whether the individual 
        is an infant or toddler with a disability; and
            ``(3) consider the appropriateness of defining the term 
        `developmental delay' to include the combination of a 
        multiplicity of factors that, when taken together, have a high 
        probability of resulting in developmental delay (as specified 
        in the remainder of the definition) if early intervention 
        services are not provided.
    ``(c) Panel Recommendations.--The panel shall prepare and submit to 
the Secretary a report containing the recommendations developed under 
subsection (a) not later than 9 months after the date of enactment of 
the Individuals with Disabilities Education Act Amendments of 1996.
    ``(d) Model Definition.--After receiving the recommendations, the 
Secretary shall--
            ``(1) publish the recommendations in the Federal Register;
            ``(2) give interested parties an opportunity to submit 
        written comments on the recommendations; and
            ``(3) disseminate a model definition based on the 
        recommendations, along with a summary of comments received.
    ``(e) Federal Advisory Commission Act Inapplicable.--The Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
establishment or operation of the panel.''.

SEC. 616. AUTHORIZATION OF APPROPRIATIONS.

    Part H (20 U.S.C. 1471 et seq.) (as amended in section 615) is 
further amended by adding at the end the following:

``SEC. 687. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for each of the fiscal years 1996 through 
2002.''.

SEC. 617. EFFECTIVE DATE.

    This title, and the amendments made by this title, shall take 
effect on October 1, 1997.
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