```

[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 216 Introduced in Senate (IS)]

105th CONGRESS
  1st Session
                                 S. 216

 To amend the Individuals with Disabilities Education Act to authorize 
   appropriations for fiscal years 1998 through 2002, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 28, 1997

  Mr. Jeffords (for himself, Mr. Frist, and Mrs. Hutchison of Texas) 
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 1998 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 1997''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
                      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 
                            assistance 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 agency 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. Conforming and technical amendments.
Sec. 214. Effective dates.I74TITLE III--SYSTEMS CHANGE
Sec. 301. Systems change.
Sec. 302. 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. 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. 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; PURPOSES.

    ``(a) Short Title.--This title may be cited as the `Individuals 
with Disabilities Education Act'.
    ``(b) Findings.--With respect to 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 94-142), 
        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 of a free appropriate 
                public education 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 should 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 
                State and districtwide assessment systems 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) That 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 the identification of such 
        students as children with disabilities 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 
                overidentification 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 sensitive 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 carried out 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 promote 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'';
                            (iii) by striking ``orthopedic 
                        impairments'' and inserting ``an orthopedic 
                        impairment''; and
                            (iv) by striking ``other health 
                        impairments, or specific learning 
                        disabilities'' and inserting ``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 margin 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) by striking paragraph (6) and inserting the following:
            ``(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) by striking paragraph (8) and inserting the following:
            ``(8) Local educational agency.--The term `local 
        educational agency' means--
                    ``(A) a public board of education or other public 
                authority legally constituted within a State for either 
                administrative control or direction of, or to perform a 
                service function for--
                            ``(i) public elementary or secondary 
                        schools in a city, county, township, school 
                        district, or other political subdivision of a 
                        State; or
                            ``(ii) 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) by striking paragraph (11) and inserting the 
        following:
            ``(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) by striking paragraph (15) and inserting the 
        following:
            ``(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 
                of subsections (d) through (i) of section 614 (as 
                amended by section 204 of the Individuals with 
                Disabilities Education Act Amendments of 1997)'';
            (19) by striking paragraph (20) and inserting the 
        following:
            ``(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 (i) of section 614 (as amended by section 204 of 
        the Individuals with Disabilities Education Act Amendments of 
        1997).'';
            (20) 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'' and inserting ``part A of title VII''; 
                        and
                    (C) in subparagraph (B), by striking ``such part, 
                chapter, or title'' and inserting ``a part referred to 
                in subparagraph (A)'';
            (21) 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)'';
            (22) 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),'';
            (23) by striking paragraph (24) and inserting the 
        following:
            ``(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).'';
            (24) in paragraph (25), by striking ``The term'' and 
        inserting ``Assistive technology device.--The term'';
            (25) in paragraph (26), by striking ``The term'' and 
        inserting ``Assistive technology service.--The term'';
            (26) by striking paragraph (27) and inserting the 
        following:
            ``(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 poor individuals, who are 
        individuals with limited English proficiency, and who are 
        individuals from underserved geographic areas, both urban and 
        rural.'';
            (27) by redesignating paragraphs (1), (4), (5), (6), (7), 
        (8), (9), (10), (11), (12), (14), (15), (16), (17), (18), (19), 
        (20), (21), (22), (23), (24), (25), (26), and (27) as 
        paragraphs (4), (5), (9), (29), (30), (19), (8), (25), (18), 
        (21), (26), (28), (27), (24), (11), (33), (15), (10), (20), 
        (7), (14), (1), (2), and (35), respectively, and transferring 
        each such redesignated paragraph to the appropriate place in 
        the section so as to arrange the paragraphs in the section in 
        numerical order;
            (28) by inserting after paragraph (2) (as so redesignated 
        by paragraph (27)) the following new paragraph:
            ``(3) Behavior management plan.--The term `behavior 
        management plan' means a plan, developed by the State 
        educational agency or local educational agency, consisting of 
        strategies and services to address the behavior of a child with 
        a disability and to help the child learn appropriate behavior 
        in the school and other community-based educational 
        settings.'';
            (29) by inserting after paragraph (5) (as so redesignated 
        by paragraph (27)) 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).'';
            (30) by inserting after paragraph (11) (as so redesignated 
        by paragraph (27)) 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 racial or ethnic minority 
        backgrounds in which students are overidentified or 
        underidentified as having disabilities.'';
            (31) by inserting after paragraph (15) (as so redesignated 
        by paragraph (27)) 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.'';
            (32) by inserting after paragraph (21) (as so redesignated 
        by paragraph (27)), the following new paragraphs:
            ``(22) Outlying areas.--The term `outlying areas' means the 
        Virgin Islands, Guam, American Samoa, the 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.'';
            (33) by inserting after paragraph (30) (as so redesignated 
        by paragraph (27)) the following new paragraphs:
            ``(31) Supplementary aids and services.--The term 
        `supplementary aids and services' means aids, services, and 
        other supports that are provided to enable children with 
        disabilities to be educated with nondisabled children to the 
        maximum extent appropriate, in accordance with section 
        612(a)(5) (as amended by section 202 of the Individuals with 
        Disabilities Education Act Amendments of 1997).'';
            ``(32) 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.'';
            (34) by inserting after paragraph (33) (as so redesignated 
        by paragraph (27)) the following new paragraph:
            ``(34) Transitional services.--The term `transitional 
        services' includes transition services.''; and
            (35) 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.''.
    (d) Conforming Amendments.--
            (1) References to children with disabilities.--
                    (A) Title 10.--Section 2164(f)(3) of title 10, 
                United States Code, is amended--
                            (i) by striking ``section 602(a)(1)'' and 
                        inserting ``section 602(a)(4)(C)''; and
                            (ii) by striking ``1401(a)(1)'' and 
                        inserting ``1401(a)(4)(C)''.
                    (B) Elementary and secondary education act of 
                1965.--Section 14603(2) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 8923(1)) is amended by 
                striking ``section 602(a)'' and inserting ``section 
                602(a)(4)(C)''.
                    (C) National and community service act of 1990.--
                Section 101(21) of the National and Community Service 
                Act of 1990 (42 U.S.C. 12511(21)) is amended--
                            (i) by striking ``section 602(a)(1)'' and 
                        inserting ``section 602(a)(4)(C)''; and
                            (ii) by striking ``1401(a)(1)'' and 
                        inserting ``1401(a)(4)(C)''.
            (2) Reference to transition services.--Section 563(d)(2) of 
        the Public Health Service Act (42 U.S.C. 290ff-2(d)(2)) is 
amended by striking ``section 602(a)(19)'' and inserting ``section 
602(a)(33)''.

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 (as amended by 
section 210 of the Individuals with Disabilities Education Act 
Amendments of 1997).''.

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

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

``SEC. 610. ADMINISTRATIVE PROVISIONS FOR DISCRETIONARY ASSISTANCE 
              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 United States 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 carried out 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 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 and parts D and E, the following entities are 
        eligible to apply for a grant, contract, or cooperative 
        agreement under part D or 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 or tribally controlled school 
                funded by the Department of the Interior.
                    ``(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 part D or E.
            ``(2) Special rule.--The Secretary may limit the entities 
        eligible for an award of a grant, contract, or cooperative 
        agreement to 1 or more categories of eligible entities 
        described in paragraph (1). In the case of the award of a 
        grant, contract, or cooperative agreement under section 634, an 
        eligible entity shall demonstrate the capacity to conduct 
        personnel preparation activities.
            ``(3) 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 (other than section 
                643) to carry out, through a grant, contract, or 
                cooperative agreement, a project that consists of, or a 
                combination of--
                            ``(i) a research or innovation activity 
                        that meets an objective described in section 
                        633(a) or a personnel preparation activity that 
                        meets an objective described in section 634(a); 
                        and
                            ``(ii) a technical assistance or 
                        information dissemination activity that meets 
                        an objective described in section 644(a) or a 
                        technology development, demonstration, or 
                        utilization activity, or an educational media 
                        service, that meets an objective described in 
                        section 645(a);
                subject to such conditions as the Secretary determines 
                are appropriate to effectively meet the objectives 
                involved.
                    ``(B) Special rules.--In carrying out a project or 
                combination under subparagraph (A), the Secretary shall 
                use funds made available under--
                            ``(i) section 633 if the project or 
                        combination involves a research or innovation 
                        activity;
                            ``(ii) section 634 if the project or 
                        combination involves a personnel preparation 
                        activity;
                            ``(iii) section 644 if the project or 
                        combination involves a technical assistance or 
                        information dissemination activity; and
                            ``(iv) section 645 if the project or 
                        combination involves a technology development, 
                        demonstration, or utilization activity, or an 
                        educational media service.
    ``(d) Special Populations.--
            ``(1) Application requirement.--In making an award of a 
        grant, contract, or cooperative agreement under part D or 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, or 
        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 providing 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, institutions, and 
                        agencies 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 awarded under part D or E is 
        awarded only for activities that are designed to benefit 
        children with disabilities or their families or the personnel 
        employed to work with such children or their families or to 
        benefit other individuals with disabilities whom such part is 
        intended to benefit.
            ``(2) Eligible activities.--Subject to paragraph (1), the 
        Secretary, in making an award of a grant, contract, or 
        cooperative agreement under part D or E, may, without 
        conducting rulemaking under section 553 of title 5, United 
        States Code, limit the entities eligible for 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 1 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 appropriate 
                        behavior in the school and other community-
                        based educational settings.
                    ``(B) 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.
                    ``(C) 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) Inappropriately identified 
                        populations.
                    ``(D) National activities.--Activities relating to 
                personnel preparation, training, research, 
                dissemination of information, technical assistance, 
                technology development, and educational media services 
                that are carried out in particular areas of the 
                country, to ensure broad geographic coverage.
                    ``(E) 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 for a project 
        under part D or E--
                    ``(A) involve individuals with disabilities or 
                parents of individuals with disabilities in planning, 
                implementing, and evaluating the project; and
                    ``(B) where appropriate, determine whether the 
                project has any potential for replication and adoption 
                by other entities.
            ``(2) Additional responsibilities.--The Secretary may 
        require a recipient of a grant, contract, or cooperative 
        agreement under part D or E to--
                    ``(A) share in the cost of the project of the 
                recipient;
                    ``(B) prepare the research and evaluation findings 
                and products from the project in formats that are 
                useful for specific audiences, including parents, 
                administrators, teachers, early intervention personnel, 
                related services personnel, and individuals with 
                disabilities;
                    ``(C) disseminate such findings and products; and
                    ``(D) collaborate with other such recipients in 
                carrying out 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, 
                individually, request more than $75,000 a year in 
                assistance.
                    ``(B) Federal employment limitation.--A majority of 
                the individuals on 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 the 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--
                            ``(i) individuals who are representatives 
                        of institutions of higher education that plan, 
                        develop, and carry out programs of personnel 
                        preparation;
                            ``(ii) individuals who design and carry out 
                        programs of research targeted to the 
                        improvement of special education programs and 
                        services;
                            ``(iii) individuals who have recognized 
                        experience, and knowledge, necessary to 
                        integrate and apply research findings to 
                        improve educational and transitional results 
                        for children with disabilities;
                            ``(iv) individuals who administer programs 
                        at the State or local level in which children 
                        with disabilities participate;
                            ``(v) individuals who prepare parents of 
                        children with disabilities to participate in 
                        making decisions about the education of their 
                        children;
                            ``(vi) individuals who establish policies 
                        that affect the delivery of services to 
                        children with disabilities;
                            ``(vii) individuals who are parents of 
                        children with disabilities who are benefiting 
                        or have benefited from coordinated research, 
                        personnel preparation, and technical 
                        assistance; and
                            ``(viii) individuals who 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 such 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 the panel 
                members who are not members of the Federal Government.
                    ``(B) Administrative support.--The Secretary may 
                use not more than 1 percent of the funds available 
                under parts D and E to pay non-Federal entities for 
                administrative support related to management of 
                applications submitted under part D or E.
                    ``(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 under part D or E.
    ``(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 
                this section or 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 or services provided under part H, the 
                provision shall be deemed to refer to--
                            ``(i) early intervention services or 
                        services provided under part H, respectively, 
                        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 this section or 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 or services 
                provided under part H, the provision shall be deemed to 
                refer to--
                            ``(i) the benefit, provided with respect to 
                        early intervention services or services 
                        provided under part H, respectively, 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 
                this section or 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 this section or 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)), the evaluation of 
applications for financial assistance for fiscal year 1998 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), the selection of recipients for 
such assistance, and the 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 Year 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 
year 1997 under parts C through G of such Act (as in effect on such 
date).
    (d) Effective Date.--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 paragraphs (1) and 
        (2))--
                    (A) in paragraph (1)--
                            (i) by realigning the margins of 
                        subparagraphs (A) and (B) so as to align with 
                        clause (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 clause (i) of 
                        paragraph (4)(A);
                            (ii) by realigning the margins of 
                        subclauses (I) and (II) of clause (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 
                        purposes of administering this part;''; and
                            (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; and
                                    (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, at the 
                discretion of the State educational agency, that are 
                consistent with the purposes described in paragraphs 
                (1) and (4) of section 601(c).
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''; and
            (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'';
            (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''; and
                    (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) by striking subparagraph (A) and inserting the 
                following:
            ``(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 the 
                activities undertaken with regard to the memorandum of 
                agreement between the Secretaries of the Interior and 
                of 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 the following: 
        ``information. The Secretary of the Interior shall submit 
        annually to the Secretary of Education a report on the status 
        on the activities 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),''; and
                            (ii) by striking ``aggregate amounts 
                        available for all States under this section'' 
                        and inserting ``amount appropriated under 
                        subsection (h)'';
                     (B) by striking subparagraph (B) and inserting the 
                following:
    ``(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)''; and
                    (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 ``children, 
                and youth'' and inserting ``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, 
        1998.''.
    (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.
    (f) Child Count.--Section 611(a)(3) is amended by striking 
``December 1'' and inserting ``the last Friday of October or December 
1''.

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 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 so long 
                as each child who has a disability listed in section 
                602(a)(4)(A)(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 (i) 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 with 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 and 615A.
            ``(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 the 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 special 
                education and related services for such children.
                    ``(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.--
                            ``(i) In general.--Subject to subparagraph 
                        (A), this part does not require a local 
                        educational agency to pay for the cost of 
                        education, including special education and 
                        related services, of a child with a disability 
                        at a private school or facility if that agency 
                        made a free appropriate public education 
                        available to the child and the parents elected 
                        to place the child in such private school or 
                        facility.
                            ``(ii) Limitation on reimbursement for 
                        services.--If, as a result of mediation 
                        described in section 615(e), 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, any 
                        reimbursement for the cost of that enrollment 
                        that the local educational agency may otherwise 
                        be required to make to the parents may be 
                        reduced or denied--
                                    ``(I) if, 10 business days 
                                (including any holidays that occur on a 
                                business day) prior to the removal of 
                                the child from the public school, the 
                                parents do not provide a written 
                                statement rejecting the placement 
                                proposed by the local educational 
                                agency to provide a free appropriate 
                                public education to the child; 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) Establishing responsibility for services.--
                The Chief Executive Officer of the State or designee of 
                the Chief Executive Officer shall ensure that an 
                interagency agreement or other mechanism for 
                interagency coordination is in effect between each 
                public agency described in subparagraph (B) and the 
                appropriate educational agency within the State, in 
                order to ensure that all services described in 
                subparagraph (B)(i) that are needed to ensure a free 
appropriate public education are provided, including the provision of 
such services during the pendency of any dispute under clause (iii). 
Such agreement or mechanism shall include the following:
                            ``(i) Agency financial responsibility.--An 
                        identification of, or a method for defining, 
                        the financial responsibility of each agency for 
                        providing all services described in 
                        subparagraph (B)(i) to ensure a free 
                        appropriate public education to children with 
                        disabilities provided that the financial 
                        responsibility of each public agency described 
                        in subparagraph (B) including the State 
                        Medicaid agency, and other public or private 
                        insurers of children with disabilities (if the 
                        filing of claims with such insurers is 
                        voluntary on the part of the parents) shall 
                        precede the financial responsibility of the 
                        local educational agency (or the State agency 
                        responsible for developing the child's IEP).
                            ``(ii) Conditions, terms, and procedures of 
                        reimbursement.--The conditions, terms, and 
                        procedures under which a local educational 
                        agency shall be reimbursed by other agencies.
                            ``(iii) Interagency disputes.--Procedures 
                        for resolving interagency disputes (including 
                        procedures under which local educational 
                        agencies may initiate proceedings) under the 
                        agreement or other mechanism to secure 
                        reimbursement from other agencies or otherwise 
                        implement the provisions of the agreement or 
                        mechanism.
                            ``(iv) Coordination of services 
                        procedures.--Policies and procedures for 
                        agencies to determine and identify the 
                        interagency coordination responsibilities of 
                        each agency to promote the coordination and 
                        timely delivery of services described in 
                        subparagraph (A)(i).
                    ``(B) Obligation of public agency.--
                            ``(i) In general.--If any public agency 
                        other than an educational agency is otherwise 
                        obligated under Federal or State law, or 
                        assigned responsibility under State policy or 
                        under subparagraph (A), to provide or pay for 
                        any services that are also considered as 
                        special education or related services (such as, 
                        but not limited to, services described in 
                        sections 602(a)(1) relating to assistive 
                        technology devices, 602(a)(2) relating to 
                        assistive technology services, 602(a)(24) 
                        relating to related services, 602(a)(31) 
                        relating to supplementary aids and services, 
                        and section 602(a)(33) relating to transition 
                        services) that are necessary for ensuring a 
                        free appropriate public education to children 
                        with disabilities within the State, such public 
                        agency shall fulfill that obligation or 
                        responsibility, either directly or through 
                        contract or other arrangement.
                            ``(ii) Reimbursement for services by public 
                        agency.--In a case in which a public agency 
                        other than an educational agency fails to 
                        fulfill the agency's financial responsibility 
                        described in subparagraph (A)(i) to provide or 
                        pay for the special education or related 
                        services described in clause (i) for children 
                        with disabilities and the local educational 
                        agency (or State agency responsible for 
                        developing the child's IEP) provides or pays 
                        for such services to such children, the local 
                        educational agency (or State agency responsible 
                        for developing the child's IEP) may claim 
                        reimbursement from such public agency for such 
                        services. Such public agency shall reimburse 
                        the local educational agency (or State agency 
                        responsible for developing the child's IEP) 
                        pursuant to the terms of the interagency 
                        agreement or other mechanism in effect under 
                        subparagraph (A)(i) according to the procedures 
                        established pursuant to subparagraph (A)(ii).
                    ``(C) Special rule.--The requirements of 
                subparagraph (A) may be met through--
                            ``(i) State statute or regulation;
                            ``(ii) signed agreements between respective 
                        agency officials that clearly identify the 
                        responsibilities of each agency relating to the 
                        provision of services; or
                            ``(iii) other appropriate methods as 
                        determined by the Chief Executive Officer of 
                        the State or designee of the Chief Executive 
                        Officer.
            ``(13) Local educational agency eligibility.--The State 
        educational agency will not make a final determination that a 
        local educational agency is not eligible for assistance under 
        this part without first affording 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, 
                                special education, and related services 
                                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 paraprofessionals.--Nothing in this 
                Act, including subparagraphs (A) and (B), prohibits the 
                use of paraprofessionals who are appropriately trained 
                and supervised by qualified personnel (in accordance 
                with State law, regulations, or written policy), 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 to 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 a 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 date of enactment of the 
        Individuals with Disabilities Education Act Amendments of 1997, 
        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 
shall be construed to permit 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 was 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 AGENCY 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 described in 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 1997, 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 State 
        educational agency 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 described in 
        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 local educational agency joins 
                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) In general.--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) Special rule.--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 public 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 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 
public school.
            ``(2) Authority.--
                    ``(A) In general.--A State educational agency may 
                grant authority to a local educational agency to permit 
                a public 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.
                    ``(B) Responsibility of local educational agency.--
                If a State educational agency grants the authority 
                described in subparagraph (A), a local educational 
                agency that is granted such authority shall have the 
                sole responsibility of oversight of all activities 
                relating to the design, implementation, and evaluation 
                of any school-based improvement plan that a public 
                school is permitted to design under this subsection.
            ``(3) Plan requirements.--A school-based improvement plan 
        described in paragraph (1) shall--
                    ``(A) be designed to be consistent with the 
                purposes 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 public school in meeting 
                such goals; and
                    ``(D) ensure that all children with disabilities 
                receive the same level of services described in 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 public 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 
                        public school selected under subparagraph (A) 
                        in the establishment of 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 in which the public school is 
                        located and includes, at a minimum--
                                    ``(I) parents of children with 
                                disabilities who attend such public 
                                school, including parents of children 
                                with disabilities from unserved and 
                                underserved populations, as 
                                appropriate;
                                    ``(II) special education and 
                                general education teachers of such 
                                public school;
                                    ``(III) special education and 
                                general education administrators, or 
                                the designee of such administrators, of 
                                such public school; and
                                    ``(IV) related services providers 
                                who are responsible for providing 
                                services to the children with 
                                disabilities who attend such public 
                                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 public 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 the goals of 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 public 
                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) a majority of parents of children 
                        who are members of the school-based standing 
                        panel, and a majority of other members of the 
                        school-based standing panel, that designed such 
                        plan agree in writing to such plan.
            ``(7) Extension of plan.--If a public 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 described in 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); 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 for fiscal year 1994 under subpart 2 of part D of chapter 1 of 
title I of the Elementary and Secondary Education Act of 1965 (as such 
subpart was in effect on the day preceding the date of enactment of the 
Improving America's Schools Act of 1994) 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 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, but shall not be required to, 
                        continue to pursue the evaluation through 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; or
                            ``(ii) at a natural transition point for 
                        the child.
                    ``(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--
                            ``(i) from preschool to elementary grades;
                            ``(ii) from elementary grades to middle or 
                        junior high school grades (except that for a 
                        transition that will not occur for a period of 
                        5 years or more, the natural transition point 
                        shall be at least every 3 years);
                            ``(iii) from middle or junior high school 
                        grades to high school grades; and
                            ``(iv) 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 subsections (b)(3), (b)(4), and (c) of section 
        615, 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 assessment 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 
                        education 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; and
                    ``(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 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--
                            ``(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; and
                            ``(iv) whether any additions or 
                        modifications to the special education and 
                        related services are needed to enable the child 
                        to meet the measurable annual objectives set 
                        out in the individualized education program of 
                        the child and to participate, as appropriate, 
                        in the general education curriculum.
            ``(2) Source of data.--The local educational agency shall 
        administer such 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 a factor described in 
        clause (i), (ii), (iii), or (iv) of paragraph (1)(B), the local 
        educational agency--
                    ``(A) shall notify the parents of the child of--
                            ``(i) the results of the determination of 
                        the individuals and the reasons for the 
                        determination; and
                            ``(ii) the right of the parents to request 
                        that additional data be obtained for use in 
                        making a determination with respect to a 
                        factor; and
                    ``(B) is not required to obtain the additional data 
                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.
                    ``(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 education 
                curriculum;
                    ``(B) at least one special education provider who 
                is knowledgeable about the disability of the child, 
                such as, if appropriate, the special education teacher 
                of the child;
                    ``(C) to the extent appropriate, 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) when appropriate, the child;
                    ``(F) an individual who is capable of interpreting 
                the instructional implications of evaluation results; 
                and
                    ``(G) at the discretion of the parents or the 
                agency, other individuals, such as related services 
                personnel, who have special expertise or special 
                knowledge regarding the child's abilities and 
                disability.
        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.--In the 
                case of a child whose behavior impedes the learning of 
                the child or that of others, the IEP team, as 
                appropriate, shall consider strategies, including 
                behavior management plans, to address that behavior.
    ``(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 the 
                general education 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 the general 
                education 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 education curriculum, to participate in 
                extracurricular and nonacademic activities and other 
                educational activities, and to be educated and 
                participate with other children with disabilities and 
                nondisabled children in the activities described in 
                this subparagraph.
                    ``(D) Extent of participation with nondisabled 
                children.--A statement of the extent to which the child 
                will 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 through 
                benchmarks or other measurable indicators of progress, 
                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.--
                    ``(A) In general.--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 (B) through (D).
                    ``(B) 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.
                    ``(C) Statement of transition services and 
                supports.--
                            ``(i) In general.--In meeting the 
                        requirements of subparagraph (B), 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 section 
                        602(33) including, where appropriate, a 
                        statement of the interagency responsibilities 
                        and needed linkages among agencies to ensure 
                        delivery of services before the student leaves 
                        the school setting.
                    ``(D) 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 
        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.
    ``(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) 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.
    ``(j) 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) in clause (i), by striking ``(i) 
                        proposes'' and inserting ``(A) proposes''; and
                            (iii) in clause (ii), by striking ``(ii) 
                        refuses'' and inserting ``(B) refuses'';
                    (D) by striking subparagraph (D) and inserting the 
                following:
            ``(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 ``(3)(A) Except as provided 
                        in subparagraph (B),'' and inserting ``(3) 
                        Except as provided in subsections (c) and (d) 
                        of section 615A,'';
                            (ii) by striking subparagraph (B); and
                            (iii) by striking ``or guardian'' each 
                        place it appears;
                    (E) in paragraph (4)--
                            (i) in subparagraph (A), by striking ``this 
                        subsection'' and inserting ``this subsection 
                        and section 615A'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``this subsection'' 
                                and inserting ``this subsection and 
                                section 615A''; and
                                    (II) by striking ``or guardian'';
                            (iii) in subparagraph (C)--
                                    (I) by striking ``For the purpose 
                                of this subsection, fees'' and 
                                inserting ``Fees''; and
                                    (II) by striking ``under this 
                                subsection'' each place it appears and 
                                inserting ``under this subsection and 
                                section 615A'';
                            (iv) 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'';
                                    (II) by striking ``under this 
                                subsection'' and inserting ``under this 
                                subsection and section 615A''; and
                                    (III) by striking ``or guardian'' 
                                each place it appears;
                            (v) in subparagraph (E)--
                                    (I) by striking ``Notwithstanding 
                                the provisions of subparagraph (D)'' 
                                and inserting ``Notwithstanding 
                                subparagraph (D)''; and
                                    (II) by striking ``or guardian'';
                            (vi) in subparagraph (F)--
                                    (I) by striking ``(F) Whenever'' 
                                and inserting ``(F) Except as provided 
                                in subparagraph (G), whenever''; and
                                    (II) by striking ``or guardian''; 
                                and
                            (vii) by adding at the end thereof the 
                        following new subparagraphs:
    ``(H) For the purpose of this section, the amount of any award of 
attorneys' fees to a prevailing party under this section shall be 
determined 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) in subsection (f), by striking ``subsections (b)(2) and 
        (c)'' and inserting ``subsections (f) and (g)'';
            (5) by redesignating subsections (c) through (e) as 
        subsections (g) through (i), respectively;
            (6) by redesignating subsection (f) as subsection (k);
            (7) 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 section 615A, 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 and section 615A relating to due 
        process hearings, State-level appeals (if applicable in that 
        State), civil actions, and attorneys' fees and a brief summary 
        of the provisions of section 612(a)(10)(C) relating to 
        reimbursement of parents for unilateral placement of their 
        children in private schools at public expense;
            ``(F) include a statement that the agency will provide a 
        full explanation of--
                    ``(i) the procedural safeguards available to 
                parents under this section and section 615A, 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
                    ``(ii) the provisions of section 612(a)(10)(C) 
                relating to reimbursement of parents for unilateral 
                placement of their children in private schools at 
                public expense, whenever requested by the parents; 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 to 
        understand the 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 (other than a request for an 
expedited due process hearing under section 615A) 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 business days (including holidays that occur 
on a business day) 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 that is currently being implemented.
    ``(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, a court, in its discretion, may reduce an award of 
attorneys' fees and reimbursement of related costs if within 10 
business days (including holidays that occur on a business day) after 
filing a request for an administrative due process hearing under 
section 615(f), the matter relating to the complaint is resolved in a 
manner that is satisfactory to all parties.
    ``(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;
            ``(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 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. Not later than 4 years after the date of enactment of the 
Individuals with Disabilities Education Act Amendments of 1997, 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
            (8) by inserting after subsection (i) (as so redesignated 
        by paragraph (5)) 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 local educational 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 local educational agency shall notify the 
        individual and the parents of the transfer of rights.
    ``(2) 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.''.
    (d) Alternate Procedural Safeguards.--
            (1) In general.--Part B (20 U.S.C. 1411 et seq.) is amended 
        by inserting after section 615 the following new section:

``SEC. 615A. ALTERNATE PROCEDURAL SAFEGUARDS.

    ``(a) Short-Term Disciplinary Actions (up to 10 School Days).--If a 
child with a disability engages in behavior that is a violation of the 
rules or code of conduct of the local educational agency, and if the 
rules or code of conduct of the agency also applies to children without 
disabilities who engage in the behavior, agency personnel with the 
authority to do so, may--
            ``(1) utilize disciplinary measures such as detention, 
        timeouts, increased supervision, and restriction of privileges 
        or extracurricular activities, provided that any disciplinary 
        measures that are inconsistent with the child's IEP shall be 
        for no more than 10 school days; or
            ``(2) suspend the child for no more than 10 school days.
    ``(b) Long-Term Disciplinary Actions; Manifestation 
Determination.--
            ``(1) Change of placement.--If a child with a disability 
        engages in any of the behaviors described in subsection 
        (c)(1)(A) involving dangerous weapons, drugs, or behavior 
        resulting in serious bodily injury or engages in ongoing 
        serious disruptive behavior as described in subsection 
        (d)(1)(A), the child may be placed in an interim alternative 
        educational setting, in accordance with the provisions of 
        subsections (c) and (d), regardless of whether or not the 
        behavior is a manifestation of the disability of the child.
            ``(2) Disciplinary measures applicable to all children.--
                    ``(A) In general.--Subject to the limitation 
                described in subparagraph (B), a local educational 
                agency may, consistent with section 615(b), use long-
                term disciplinary measures (for more than 10 school 
                days) to address the behavior of a child with a 
                disability that is a violation of the rules or code of 
                conduct of the agency, if the behavior was not a 
                manifestation of the disability of the child, and if 
                the rules or code of conduct also applies to children 
                without disabilities who engage in the same behavior.
                    ``(B) Provision of educational services.--In the 
                case of a child with a disability who engages in 
                behavior that violates the rules or code of conduct of 
                the local educational agency, the child shall continue 
                to receive educational services, consistent with the 
                provision of a free appropriate public education, 
                unless the child was determined to be involved with 
                dangerous weapons or drugs, as described in subsection 
                (c)(1)(A), the behavior of the child was not a 
                manifestation of the disability of the child, and the 
                policy of the agency is to cease educational services 
to any child determined to be involved with such weapons or drugs.
            ``(3) Manifestation determination.--Before subjecting a 
        child with a disability to the same long-term disciplinary 
        measures (including the ceasing of educational services as 
        described in subparagraph (B)) that apply to children without 
        disabilities, the child's IEP team shall determine, in 
        accordance with the standards and considerations in paragraphs 
        (4) and (5), whether the behavior of the child was a 
        manifestation of the disability of the child.
            ``(4) Standards.--In making the determination described in 
        paragraph (3), the child's IEP team shall determine whether, in 
        the context in which the behavior occurred, the disability of 
        the child--
                    ``(A) impaired the ability of the child to 
                understand the impact and consequences of such 
                behavior; or
                    ``(B) impaired the ability of the child to control 
                the behavior at issue.
            ``(5) Considerations.--In determining whether the standards 
        in paragraph (4) are met, the child's IEP team shall consider 
        relevant information pertinent to the behavior at issue and the 
        determination to be made pursuant to paragraph (3), including--
                    ``(A) the context in which the behavior occurred 
                and whether the child exhibited similar behavior in the 
                past;
                    ``(B) evaluation and diagnostic results, including 
                such results or other relevant information supplied by 
                the parents of the child;
                    ``(C) the appropriateness of the child's IEP and 
                placement; and
                    ``(D) the extent to which the child's IEP--
                            ``(i) has been implemented; and
                            ``(ii) includes the provision of special 
                        education and related services, and the use of 
                        supplementary aids and services, strategies and 
                        interventions, and behavior management 
                        techniques.
            ``(6) Proceedings.--
                    ``(A) Expedited due process hearing.--If the 
                parents of the child do not agree with the 
                determination described in paragraph (3), the parents 
                may request that a due process hearing under section 
                615(b)(2) be conducted on an expedited basis.
                    ``(B) Pendency.--During the pendency of any actions 
                or proceedings to resolve a disagreement by the 
                parents, the child shall continue to receive 
                educational services, consistent with the provision of 
                a free appropriate public education to the child.
    ``(c) Conditions That Apply When Dangerous Weapons, Drugs, or 
Serious Bodily Injury Are Involved.--
            ``(1) Program modifications.--
                    ``(A) Setting.--If a child with a disability, on 
                school premises or at a school-sponsored event under 
                the jurisdiction of a local educational agency--
                            ``(i) has a dangerous weapon in the child's 
                        possession;
                            ``(ii) engages in the illegal use, 
                        possession, or distribution of drugs; or
                            ``(iii) engages in behavior that results in 
                        serious bodily injury, or is substantially 
                        likely to result in such injury,
                the child may be placed in an interim alternative 
                educational setting, regardless of whether or not the 
                behavior is a manifestation of the disability of the 
child, if the conditions in subparagraph (B) are met.
                    ``(B) Role of principal and iep team.--The child 
                described in subparagraph (A) may be removed to an 
                interim alternative educational setting, if--
                            ``(i) the principal, after consultation 
                        with individuals who witnessed the child 
                        exhibit any of the behaviors described in 
                        subparagraph (A) and individuals who have 
                        knowledge of the disability of the child 
                        (including the chairperson of the child's IEP 
                        team and the agency's director of special 
                        education or the designees of the chairperson 
                        and director), determines, in writing, that the 
                        child engaged in a behavior described in 
                        subparagraph (A) and that the disciplinary code 
                        of the local educational agency is to be 
                        applied; and
                            ``(ii) the child's IEP team assesses the 
                        child, and identifies modifications in the IEP 
                        of the child that are consistent with the 
                        provision of a free appropriate public 
                        education to the child, which may include 
                        placement of the child in an interim 
                        alternative educational setting.
                    ``(C) Time lines.--
                            ``(i) Determination by principal.--The 
                        determination by the principal described in 
                        subparagraph (B)(i) shall be made as soon as 
                        possible, but not later than 10 school days 
                        after the date on which the behavior described 
                        in subparagraph (A) became known to the 
                        principal.
                            ``(ii) Placement decision.--
                                    ``(I) Preliminary decision.--Within 
                                the 10-day period described in clause 
                                (i), the child's IEP team shall make a 
preliminary decision regarding placement of the child, which may 
include placement of the child in an interim alternative educational 
setting.
                                    ``(II) Final decision.--A final 
                                placement decision by the child's IEP 
                                team, which may include placement of 
                                the child in an interim alternative 
                                educational setting, shall, to the 
                                maximum extent feasible, be made within 
                                the 10-day period described in clause 
                                (i).
                            ``(iii) Placement limitation.--In no case 
                        shall placement of the child in an interim 
                        alternative educational setting pursuant to 
                        this subsection be made more than 20 school 
                        days after the date on which the behavior 
                        described in subparagraph (A) became known to 
                        the principal.
                    ``(D) Status of child if time lines are not met.--
                If the determination of the principal (described in 
                subparagraph (B)(i)) and the actions of the child's IEP 
                team (described in subparagraph (B)(ii)) do not occur 
                within the time period referred to in subparagraph (C), 
                the educational placement of the child shall be the 
                educational placement described in the child's current 
                IEP, unless the parents of the child and the agency 
                agree otherwise.
            ``(2) Information to be considered by iep team in 
        determining child's placement.--In determining an appropriate 
        placement for a child who engaged in any behavior described in 
        paragraph (1)(A), the child's IEP team shall--
                    ``(A) include an individual (who may be an existing 
                member of the child's IEP team) who is qualified to 
                assess the relationship between the disability of the 
                child, the behavior of the child, and the context in 
                which the behavior occurred;
                    ``(B) at a minimum, consider--
                            ``(i) the information described in 
                        subsection (b)(5);
                            ``(ii) information based on observation by 
                        a person knowledgeable about the child and the 
                        disability of the child, including, to the 
                        extent possible, observation in the environment 
                        in which the behavior occurred; and
                            ``(iii) if available, voluntary statements 
                        from the parents of the child, and from any 
                        individual who was injured (and if the 
                        individual injured is a child, the individual's 
                        parents); and
                    ``(C) make necessary modifications in the child's 
                IEP related to the provision of special education and 
                related services, the use of supplementary aids and 
                services, and strategies and interventions (including 
                the use of behavior management plans) that are likely 
                to contribute to the elimination of the recurrence of 
                the behavior at issue by the child.
            ``(3) Disagreement between agency and parents regarding 
        dangerous weapons, drugs, or serious bodily injury.--
                    ``(A) Due process hearing.--If the parents of a 
                child disagree with a determination made by the 
                principal under paragraph (1)(B)(i) or the action of 
                the IEP team under paragraph (1)(B)(ii) to place the 
                child in an interim alternative educational setting or 
                the recommendations of the child's IEP team regarding 
                the provision of a free appropriate public education 
                pursuant to paragraph (1)(B)(ii) the parents may 
                request that a due process hearing under section 
                615(b)(2) be conducted on an expedited basis.
                    ``(B) Considerations.--In making a determination 
                regarding such a disagreement, the hearing officer 
                shall consider, at a minimum--
                            ``(i) the determination of the principal 
                        described in paragraph (1)(B)(i);
                            ``(ii) information considered by the 
                        child's IEP team under paragraphs (1)(B)(ii) 
                        and (2); and
                            ``(iii) whether the child's IEP team met 
                        its responsibilities under paragraph (4), if 
                        appropriate.
                    ``(C) Placement during dispute.--During the 
                pendency of any actions or proceedings to resolve a 
                disagreement described in subparagraph (A), the child 
                shall remain in the interim alternative educational 
                setting, unless the parents and the State or local 
                educational agency agree otherwise.
            ``(4) Review of child's placement in interim alternative 
        educational setting.--Not later than 35 school days after the 
        placement in an interim alternative educational setting of a 
        child who engaged in any behavior described in paragraph (1)(A) 
(or earlier, if specified in the child's IEP), the child's IEP team 
shall--
                    ``(A) review the progress of the child in the 
                interim alternative educational setting;
                    ``(B) determine an appropriate educational 
                placement based on a revised IEP, if appropriate; and
                    ``(C) secure the placement of the child in the 
                appropriate educational placement, consistent with the 
                provisions of this part, for the remainder of the 
                school year or for the beginning of the next school 
                year, whichever is appropriate.
    ``(d) Conditions That Apply When Serious Disruptive Behavior Is 
Involved.--
            ``(1) Placement in interim alternative educational 
        setting.--
                    ``(A) Removal of a child to an interim alternative 
                educational setting.--If a child with a disability, on 
                school premises, engages in ongoing serious disruptive 
                behavior that significantly impairs the education of 
                the child or the education of other children and the 
                ability of the teacher of the child to teach, the child 
                may be placed in an interim alternative educational 
                setting, if the conditions in subparagraph (B) are met.
                    ``(B) Role of principal and iep team.--
                            ``(i) In general.--A child described in 
                        subparagraph (A) may be removed to an interim 
                        alternative educational setting if, consistent 
                        with the requirements of paragraph (2)(B)(i) 
                        and subparagraphs (A) and (B) of paragraph 
                        (3)--
                                    ``(I) the principal, after 
                                consultation with individuals who have 
                                knowledge of the disability of the 
                                child (including the chairperson of the 
                                child's IEP team, the agency's director 
                                of special education or the designees 
                                of the chairperson and director, and 
                                the teacher most knowledgeable about 
                                the child), determines in writing that 
                                the continued presence of the child in 
                                the child's current educational 
                                placement would significantly impair 
                                the education of the child or the 
                                classmates of the child and the ability 
                                of the teacher of the child to teach; 
                                and
                                    ``(II) the child's IEP team 
                                develops a placement in an interim 
                                alternative educational setting, 
                                consistent with the provision of a free 
                                appropriate public education to the 
                                child.
                            ``(ii) Construction clause.--A child shall 
                        not be determined to be seriously disruptive on 
                        the basis of unreasonable considerations, such 
                        as--
                                    ``(I) myths or stereotypes about 
                                disability;
                                    ``(II) a lack of understanding of 
                                the nature of the disability or the 
                                effect of the disability on behavior;
                                    ``(III) a disruption caused by 
                                devices, accommodations, auxiliary aids 
                                or services used by a child with a 
                                disability; or
                                    ``(IV) behavior that has not been 
                                addressed by special education and 
                                related services as provided by 
                                paragraph (3)(B).
                    ``(C) Timeline for action.--
                            ``(i) In general.--If a child described in 
                        subparagraph (A) was subjected to short-term 
                        disciplinary measures lasting for any period up 
                        to 10 school days as described in subsection 
                        (a), the determination of the principal under 
                        subparagraph (B)(i)(I) and the actions of the 
                        IEP team under subparagraph (B)(i)(II) shall 
                        occur within that 10-day period.
                            ``(ii) Status of child if time line is not 
                        met.--If the determination of the principal 
                        under subparagraph (B)(i)(I) and the actions of 
                        the IEP team described in subparagraph 
                        (B)(i)(II) do not occur within the 10-school-
                        day time period described in clause (i), the 
                        educational placement of the child shall be the 
                        placement described in the child's current IEP, 
                        unless the parents of the child and the agency 
                        agree otherwise.
            ``(2) Disagreement between agency and parents when serious 
        disruptive behavior is involved.--
                    ``(A) Hearing officer determination.--If the 
                parents of the child disagree with the determination 
                made by the principal under paragraph (1)(B)(i)(I) or 
                the action of the IEP team described under paragraph 
                (1)(B)(i)(II), a hearing officer shall make a 
                determination whether the removal of the child to an 
                interim alternative educational setting was justified 
                by the serious disruptive behavior of the child. The 
                determination of the hearing officer shall be made not 
                later than 10 school days after the child's parents 
                communicate to the principal the parent's disagreement 
                with the determination of the principal or the action 
                of the IEP team. If exceptional circumstances exist, 
                such as the unavailability of a hearing officer, the 
                determination of the hearing officer shall be made not 
                later than 20 school days after the child's parents 
                communicate to the principal such disagreement. A 
                hearing officer may grant additional extensions of time 
                for a hearing determination if the school district and 
                parents agree otherwise.
                    ``(B) Limitations.--
                            ``(i) Consideration of record on the 
                        child.--In making a determination on whether 
                        removal of a child with a disability to an 
                        interim alternative educational setting is 
                        justified, the principal and the IEP team (and, 
                        in situations involving a disagreement, the 
                        hearing officer) shall consider the record 
described in paragraph (3).
                            ``(ii) Failure to make a determination.--If 
                        the determination of the hearing officer is not 
                        made within the time period described in 
                        subparagraph (A), the educational placement of 
                        the child shall be the placement described in 
                        the prior IEP of the child, unless the parents 
                        of the child and the agency agree otherwise.
                    ``(C) Due process hearing; pendency.--If either the 
                parents of the child or the local educational agency 
                disagrees with the determination of the hearing officer 
                and requests a due process hearing pursuant to section 
                615(b)(2), then the educational placement of the child 
                shall be the placement determined by the hearing 
                officer during the pendency of any actions or 
                proceedings, unless the parents and the agency agree 
                otherwise.
            ``(3) Special record for a child with a disability who is 
        seriously disruptive.--In order for the principal and the IEP 
        team or a hearing officer to determine under this subsection 
        that a child with a disability is engaging in ongoing serious 
        disruptive behavior that significantly impairs the education of 
        the child or the education of other children and the ability of 
        the teacher of the child to teach, the following information 
        must have been documented:
                    ``(A) Cumulative record of behavior.--A cumulative 
                record over an extended period of time describing 
                frequent behaviors exhibited by the child that prevent 
                the child, the classmates of the child, or the teacher 
                of the child from engaging in the activities that would 
                have occurred in the absence of serious disruptive 
                behavior of the child.
                    ``(B) Documented evidence of efforts to address the 
                behavior.--Documented evidence of efforts to address 
                the behavior of the child, including--
                            ``(i) the reconvening of the child's IEP 
                        team to consider the appropriateness of the 
                        child's IEP;
                            ``(ii) the provision of special education 
                        and related services;
                            ``(iii) the use of supplemental services 
                        and strategies (including the use of behavior 
                        management plans) that have been implemented 
                        over a reasonable period of time and have 
                        failed to address the needs of the child in a 
                        manner that would enable the child to remain in 
                        the current educational placement of the child 
                        without significantly impairing the education 
                        of the child or the classmates of the child and 
                        the ability of the teacher of the child to 
                        teach; and
                            ``(iv) the training made available to the 
                        child's classroom teachers.
            ``(4) Information to be considered by iep team when serious 
        disruptive behavior is involved.--In determining an appropriate 
        placement for a child with a disability who engaged in a 
        serious disruptive behavior described in paragraph (1)(A), the 
        child's IEP team shall consider the information about the child 
        required in subsection (c)(2)(B), and make necessary 
        modifications in the child's IEP, as described in subsection 
        (c)(2)(C).
            ``(5) Review of progress of the child.--The child's IEP 
        team shall review the progress of the child, in accordance with 
        the procedures and time lines in subsection (c)(4).
    ``(e) Definitions; Construction.--
            ``(1) Dangerous weapon.--For the purpose of this section, 
        the term `dangerous weapon' means a weapon, device, instrument, 
        material or substance, animate or inanimate, that is used for 
        or is readily capable of causing death or serious bodily 
        injury.
            ``(2) Drug.--For the purpose of this section, the term 
        `drug' means a drug or other substance identified under 
        schedules I, II, III, IV, and V in section 202(c) of the 
        Controlled Substances Act (21 U.S.C. 812(c)).
            ``(3) Illegal use of drugs.--For the purpose of this 
        section, the term `illegal use of drugs' shall not be construed 
        to include the use of a drug taken under the supervision of a 
        licensed health care professional, or other uses authorized by 
        the Controlled Substances Act or other provisions of Federal 
        law.
            ``(4) Serious bodily injury.--For the purpose of this 
        section, the term `serious bodily injury' means injury that 
        involves a substantial risk of death, extreme physical pain, an 
        obvious or protracted disfigurement, or a protracted loss or 
        impairment of a bodily member, organ, or mental faculty that is 
        the result of a physical or sexual assault that also may have 
        significantly endangered emotional health or safety.
    ``(f) Timing and Effect of Assertion of a Child's Disability.--
            ``(1) Protection status of a child not yet found eligible 
        for special education and related services.--A child who has 
        not been determined to be eligible for special education and 
        related services under this part and who engages in behavior 
        that is a violation of the rules or code of conduct of the 
        local educational agency, including a child who engages in any 
        of the behaviors described in subsections (c) and (d), may 
        assert the protections authorized under this part, if the local 
        educational agency had knowledge that the child was a child 
        with a disability before the behavior that precipitated the 
        disciplinary action occurred.
            ``(2) Basis of an agency's knowledge of a child's 
        disability.--If the parents of a child described in paragraph 
        (1) expressed concern, in writing, if practicable, to 
        appropriate educational agency personnel about the need of the 
        child for special education and related services or the 
        behavior of the child which would demonstrate the need for such 
        services, or the teacher of the child or other personnel 
        expressed concern about the behavior of the child which would 
        demonstrate the need for such services or the needs of the 
        child to the agency's director of special education or other 
        agency staff or the parents, then such agency shall be deemed 
        to have knowledge of a disability of a child. A request by 
the parents under this paragraph may include but not be limited to a 
parental request for an evaluation of their child to determine the 
eligibility of the child for special education and related services.
            ``(3) Conditions that apply when an agency had no knowledge 
        of a disability of a child.--
                    ``(A) In general.--Subject to the requirement of 
                subparagraph (B), if a local educational agency does 
                not have knowledge of a disability of a child as 
                described in paragraph (2) prior to taking disciplinary 
                measures against the child, the child may be subjected 
                to the same disciplinary measures as children without 
                disabilities, who engaged in comparable behaviors.
                    ``(B) Limitations.--If a request is made for 
                evaluation of a child during the time period in which 
                the child is subjected to disciplinary measures under 
                subparagraph (A), the evaluation shall be conducted in 
                an expedited manner. If the child is determined to be a 
                child with a disability, taking into consideration 
                information from the evaluation conducted by the agency 
                and information provided by the parents, such agency 
                shall provide special education and related services in 
                accordance with the provisions of this part. Pending 
                the results of the evaluation, the placement of the 
                child shall be the placement determined by the school 
                authorities.
    ``(g) Referral to and Actions by Law Enforcement and Judicial 
Authorities.--Nothing in this part shall be construed to prohibit an 
agency from reporting a crime committed by a child with a disability to 
appropriate authorities or to prevent State law enforcement and 
judicial authorities from exercising their responsibilities with regard 
to the application of Federal and State law to crimes committed by a 
child with a disability.
    ``(h) Definitions.--
            ``(1) In general.--Except as provided in paragraph (2), 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 1997) shall apply to this section.
            ``(2) Exception.--The terms `behavior management plan', 
        `child with a disability', `educational service agency', `local 
        educational agency', `parent', and `supplementary aids and 
        services' shall have the meanings given such terms in section 
        602 (as amended by section 102 of the Individuals with 
        Disabilities Education Act Amendments of 1997).''.
            (2) Repeal.--Section 615A(h), as added by paragraph (1), 
        shall be repealed effective January 1, 1998.

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 an opportunity for a hearing is provided 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 or State 
        agencies whose actions did not cause or were not involved in 
        the failure, as the case may be. Any State educational agency, 
        local educational agency, or State 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. The Secretary on remand of 
        the case may make new or modified findings of fact, 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 the petition 
        under paragraph (1), 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 (20 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; 
                and
                    ``(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.--Not later than January 1, 1977, the 
Secretary in carrying out the provisions of this part shall 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 one time.
    ``(e) Policy Letters and Statements.--The Secretary may not, 
through policy letters or other statements, establish a 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 determines appropriate.''.

SEC. 209. EVALUATION AND PROGRAM INFORMATION.

    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--
                    ``(i) the number of children with disabilities who 
                are receiving a free appropriate public education;
                    ``(ii) the number of children with disabilities who 
                are receiving early intervention services;
                    ``(iii) the number of children with disabilities 
                who are participating in regular education;
                    ``(iv) the number of children with disabilities who 
                are in separate classes, separate schools or 
                facilities, or public or private residential 
                facilities;
                    ``(v) the number of children with disabilities who, 
                for each year of age from 14 through 21, stopped 
                receiving special education and related services 
                because of program completion or for other reasons; and
                    ``(vi) the number of children with disabilities 
                who, from birth through age 2, stopped receiving early 
                intervention services because of program completion or 
                for other reasons; 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) on any other information as may be required by the 
        Secretary.
    ``(b) Studies and Evaluations, and National Assessments.--
            ``(1) In general.--The Secretary shall assess the progress 
        in the implementation of this Act through the studies, 
        evaluations, and assessments described in paragraphs (2) and 
        (3).
            ``(2) Studies and evaluations.--In carrying out the 
        requirement of paragraph (1), the Secretary shall, directly or 
        through grants, contracts, or cooperative agreements, 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; and
                            ``(ii) provide early intervention services 
                        to infants and toddlers with disabilities and 
                        infants and toddlers at risk for developmental 
                        delay;
                    ``(B) 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;
                    ``(C) analyze the State and local needs for 
                professional development, parent training, and other 
                appropriate activities regarding disciplinary actions 
                involving children with disabilities; and
                    ``(D) assess the educational and transitional 
                services and results for children with disabilities 
                from unserved and underserved populations, including--
                            ``(i) data on--
                                    ``(I) the number of children from 
                                unserved and underserved populations 
                                who are referred for special education 
                                evaluation;
                                    ``(II) the number of children from 
                                unserved and underserved populations 
                                who are receiving special education and 
                                related services; and
                                    ``(III) the number of children from 
                                unserved and underserved populations 
                                who graduated from secondary and 
                                postsecondary 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.
            ``(3) National studies, assessments, and evaluations.--The 
        Secretary shall, directly or through grants, contracts, or 
        cooperative agreements, conduct studies, assessments, and 
        evaluations (using nationally representative samples) that 
        shall measure the educational and transitional services and 
        results of children with disabilities under this Act. Such 
        studies, assessments, and evaluations shall include--
                    ``(A) the conduct of a 5-year longitudinal study or 
                studies (utilizing both quantitative and qualitative 
                data and reporting modes)--
                            ``(i) that examine 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;
                            ``(ii) that identify and reports on the 
                        placement of children with disabilities by 
                        disability category; and
                            ``(iii) that examine 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; and
                    ``(B) the annual collection of data (beginning on 
                October 1, 1998 and every fiscal year thereafter) on 
                the number of children with disabilities suspended, 
                expelled, and subject to other disciplinary actions 
                (such as change in placement), including data 
                disaggregated by age, sex, race, socioeconomic status, 
                disability category, and category of behavior subject 
                to disciplinary action.
        The Secretary shall ensure that the activities described in 
        clauses (i) through (iii) of subparagraph (A) are not 
        duplicated by any entity selected through a grant, contract, or 
        cooperative agreement under paragraph (2).
    ``(c) Tracking and Reporting Requirements.--
            ``(1) Post-school outcome tracking.--The Secretary shall, 
        directly or through contracts, conduct a study on the post-
        school outcomes for children with disabilities who have been 
        expelled from school, and shall develop a procedure for State 
        educational agencies to monitor the status of the children, 
        based on categories developed by the Secretary, including the 
        monitoring of the status of such children through followup 
        information regarding the employment status of the children, 
        the return of the children to school, the graduation of the 
        children, high school equivalency examinations taken by the 
        children, and residential incarceration of the children.
            ``(2) Collection and tracking.--Each State educational 
        agency shall bear the costs of collecting and reporting any 
        information requested by the Secretary regarding the students 
        described in paragraph (1) including, information on--
                    ``(A) the number and nature of disciplinary actions 
                against children expelled under section 615A; and
                    ``(B) post-school outcomes collected under the 
                procedure developed under paragraph (1).
            ``(3) Reports by the secretary.--The Secretary shall 
        collect the information described in paragraph (2) and shall--
                    ``(A) not later than 2 years after the date of 
                enactment of the Individuals with Disabilities 
                Education Act Amendments of 1997, prepare and submit an 
                interim report concerning the information to the 
                Committee on Labor and Human Resources of the Senate 
                and the Committee on Economic and Educational 
                Opportunities of the House of Representatives; and
                    ``(B) not later than 4 years after the date of 
                enactment of the Individuals with Disabilities 
                Education Act Amendments of 1997, prepare and submit a 
                final report concerning the information to the 
                Committee on Labor and Human Resources of the Senate 
                and the Committee on Economic and Educational 
Opportunities of the House of Representatives.
    ``(d) 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.
    ``(e) 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 evaluations and 
available research studies, in carrying out this section.
    ``(f) 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.
    ``(g) Authorization of Appropriations.--For purposes of carrying 
out this section, there are authorized to be appropriated $4,100,000 
for fiscal year 1998 and such sums as may be necessary for succeeding 
fiscal years.''.

SEC. 210. PRESCHOOL GRANTS.

    Section 619 (20 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 on the number 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 that 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 the funds that 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 that the State 
        and outlying area receive 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 
that 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) for activities at the State and local levels to meet 
        the performance goals established by the State under section 
        612(a)(16);
            ``(4) 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
            ``(5) for other activities at the discretion of the State 
        educational agency that are consistent with the purpose of this 
        part.
    ``(g) Subgrants to Local Educational Agencies and State 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 eligibility under 
        section 613, and to State agencies that received funds for 
        fiscal year 1994 under subpart 2 of part D of chapter 1 of 
        title I of the Elementary and Secondary Education Act of 1965 
        (as such subpart was in effect on the day preceding the date of 
        enactment of the Improving America's Schools Act of 1994) and 
        that have established their eligibility under section 613.
            ``(2) Methods of distribution.--From the amount of funds 
        available to local educational agencies or State 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 received by such areas 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 for fiscal year 1994 under subpart 2 of 
part D of chapter 1 of title I of the Elementary and Secondary 
Education Act of 1965 (as such subpart was in effect on the day 
preceding the date of enactment of the Improving America's Schools Act 
of 1994)) 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. 1411 et seq.) is amended by 
adding at the end thereof the following new section:

``SEC. 620A. 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 1997) shall apply to this part, except as 
provided in section 615A and section 618.
    (b) Repeal.--Section 620A, as added by subsection (a), shall be 
repealed effective January 1, 1998.
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1997.

SEC. 213. 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) of subparagraph (A) 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)(5), is amended by striking ``section 
613(a)(12)'' and inserting ``section 612(a)(20)''.
    (c) Procedural Safeguards.--Section 615A, as added by section 
206(d)(1), is amended--
            (1) in subsection (b)(6), by striking ``615(b)(2)'' and 
        inserting ``615(f)'';
            (2) in subsection (c)(3)(A), by striking ``615(b)(2)'' and 
        inserting ``615(f)''; and
            (3) in subsection (d)(2)(C), by striking ``615(b)(2)'' and 
        inserting ``615(f)''.
    (d) References to Evaluation and Program Information.--
            (1) Administrative provisions.--Section 610 (20 U.S.C. 
        1409) is amended--
                    (A) in subsection (a), by striking ``section 618 
                and'';
                    (B) in subsection (d), by striking ``under section 
                618 and'';
                    (C) by striking subsection (e); and
                    (D) in subsection (f), by striking ``, as well as'' 
                and all that follows through ``under section 618''.
            (2) Administration.--Section 617(d) (20 U.S.C. 1417(d)) is 
        amended by striking ``subsections (b), (c) and (d) of''.
            (3) Regional resource and federal centers.--Section 621(c) 
        (20 U.S.C. 1421(c)) is amended by striking ``Each regional'' 
        and inserting ``Except as otherwise required by the Secretary, 
        each regional''.
            (4) Secondary education and transitional services for youth 
        with disabilities.--Section 626(f)(3)(D) (20 U.S.C. 
        1425(f)(3)(D)) is amended by striking ``section 618(g)'' and 
        inserting ``section 618''.
            (5) Grants for personnel training.--Section 631(e)(11) (20 
        U.S.C. 1431(e)(11)) is amended in the second sentence by 
        striking ``section 618(g)'' and inserting ``section 618''.

SEC. 214. EFFECTIVE DATES.

    (a) In General.--Except as otherwise provided in this title and in 
subsections (b) and (c), the amendments made by this title shall take 
effect on January 1, 1998.
    (b) Procedural Safeguards.--
            (1) Section 615.--The amendments made by subsection 
        (c)(3)(D) (i) and (ii) of section 206 shall take effect on July 
        1, 1997.
            (2) Section 615a.--
                    (A) In general.--The amendment made by section 
                206(d)(1) shall take effect on July 1, 1997.
                    (B) Changing section 615(b)(2) references.--The 
                amendment made by section 213(c) shall take effect on 
                January 1, 1998.
            (3) Conforming amendment.--
                    (A) In general.--Section 314(a) of the Improving 
                America's Schools Act of 1994 (20 U.S.C. 1415 note) is 
                amended by striking paragraph (2).
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall take effect on July 1, 1997.
    (c) Evaluation and Program Information.--
            (1) In general.--The amendment made by section 209 shall 
        take effect on October 1, 1997.
            (2) Secretary of the interior's compliance.--The amendment 
        made by section 201(d)(2)(C) shall take effect on the date of 
        enactment of this Act.
            (3) Conforming amendments.--The amendment made by section 
        213(d) shall take effect on the date of enactment of this Act.
    (d) 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 provisions of part B (as amended by this 
        title) prior to January 1, 1998.
            (2) Notification and approval.--A State that desires to 
        carry out any provision of part B (as amended by this title) 
        under paragraph (1) shall notify the Secretary of Education of 
        which provision of such part the State desires to carry out. In 
        accordance with the procedure established by the Secretary of 
        Education, the Secretary of Education shall notify the State--
                    (A) of whether the State may carry out a provision 
                of such part; and
                    (B) of any applicable procedure that the State 
                shall comply with for the purposes of carrying out such 
                provision.

                       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 postschool 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 clauses (i) through (iii) of section 
                614(a)(2)(B);
                    ``(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 policies, procedures, and 
practices, and training, and the use of personnel, parents, and school-
age peers of children with disabilities that will contribute to 
improved early intervention, educational and transitional services and 
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 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 awarded for a period of 1 year.
                    ``(C) Renewal of 1-year grants.--A grant that has 
                been awarded for a 1-year period in accordance with 
                subparagraph (B) may be renewed for an additional 1-
                year period.
            ``(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, State educational agencies may 
        submit a joint application under section 623 for an 
        implementation grant referred to in subsection (b)(1) with 
        other State educational agencies to address systemic problems 
        on a regional or national basis. Any State educational agency 
that is involved in the joint submission of an application under this 
paragraph shall, prior to making an application under section 623, form 
within the State in which the State educational agency is located a 
partnership as described in section 623(a). 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 `partnership') consisting of local educational agencies, and 
other individuals 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 local educational agencies, and other individuals, and 
organizations described in subsection (a), 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 each member of 
                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 local educational agencies, and other individuals and 
organizations described in subsection (a), 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 dropout 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) (as amended by section 202 of 
        the Individuals with Disabilities Education Act Amendments of 
        1997);
            ``(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 members of 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 for 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 
        minority backgrounds and from 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. EFFECTIVE DATE.

    The amendments made by this title 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) other personnel development 
                        activities supported under Federal law, 
                        including 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. DEFINITION.

    ``As used in this part:
            ``(1) Developmental delay.--The term `developmental delay' 
        has the meaning given such term by a State under section 
        676(b)(1).
            ``(2) Early intervention services.--The term `early 
        intervention services' has the meaning given the term in 
        section 672.

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

    ``(a) In General.--The Secretary may competitively 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 overidentification 
        and underidentification of children with disabilities to the 
        same extent as other problems facing 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)(2)(E) 
                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 the relationships, and the 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, or enter into a contract or cooperative agreement, 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 competitively 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 described 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 members of unserved, 
        underserved, or inappropriately identified populations;
            ``(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 personnel 
        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 learning by such children and learning by 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 from 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 children with 
        disabilities who are members of unserved, underserved, or 
        inappropriately identified populations.
    ``(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 postdoctoral levels of training to administer, enhance, or 
        provide services for children with disabilities, with emphasis 
        on preparation of personnel who are involved with, or will be 
        involved with, efforts to address the needs of children with 
disabilities who are members of unserved, underserved, or 
inappropriately identified 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 or 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 improvement 
        in early intervention, educational, and transitional results 
        for children with disabilities;
            ``(3) preparing personnel in the innovative uses and 
        application of technology to enhance through early 
        intervention, educational, and transitional services, learning 
        by children with disabilities;
            ``(4) preparing personnel to provide early intervention 
        services or special education services to children with 
        disabilities, including preparation through the provision of 
        scholarships with necessary stipends and allowances; and
            ``(5) ensuring that all entities and consortia who receive 
        assistance under this section to prepare personnel to provide 
        services to visually impaired or blind children, will prepare 
        the personnel 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, that are 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 or consortium that 
        wishes to receive a grant, or enter into a contract or 
        cooperative agreement, under this section shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may require.
            ``(2) Identified state needs.--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 State 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. EFFECTIVE DATE.

    The amendments made by this title 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)(2)(E); and
                    ``(D) supporting the roles of such parents as 
                participants within partnerships seeking to improve 
                early intervention, educational, and transitional 
                services and results, for children with disabilities 
                and their families;
            ``(4) providers of parent training and information 
        activities need to ensure 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;
            ``(5) parents of children with disabilities need 
        information that helps the parents to understand the rights and 
        responsibilities of their children under part B;
            ``(6) 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;
            ``(7) 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
            ``(8) 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 this 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) (as amended by section 206(c)(8) of the Individuals with 
        Disabilities Education Act Amendments of 1997); and
            ``(5) the general welfare of deaf and hard-of-hearing 
        individuals is promoted 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) Early intervention services.--The term `early 
        intervention services' has the meaning given the term in 
        section 632.
            ``(2) 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).
            ``(3) Partnership.--The term `partnership' means a 
        partnership described in section 623(a).

``SEC. 643. PARENT TRAINING AND INFORMATION.

    ``(a) In General.--
            ``(1) Grants.--
                    ``(A) Authority.--The Secretary may competitively 
                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 the capacity of 
                        persons who work with parents of children with 
                        disabilities who are members of unserved, 
                        underserved, or inappropriately identified 
                        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, or enter into such a contract or cooperative 
                agreement with, 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, contract, or cooperative agreement, 
                particularly parents of children with disabilities who 
                are members of unserved or underserved populations.
            ``(2) Eligible organizations; membership and governance.--
        To be eligible to apply to receive a grant, or enter into a 
        contract or cooperative agreement, 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, underserved, or inappropriately 
                        identified 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 receive a grant, or enter into a contract or 
        cooperative agreement, 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 partnerships 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, or enters into a 
contract or cooperative agreement, 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, contract, or cooperative agreement, 
        particularly parents of children with disabilities who are 
        members of unserved or 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 the 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 
        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 or 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) (as amended by 
        section 206(c)(8) of the Individuals with Disabilities 
        Education Act Amendments of 1997) 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 with limited-English proficiency who have 
                children with disabilities, and parents with 
                disabilities;
            ``(12) establish cooperative relationships 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, or enters into a contract or cooperative agreement, 
        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 parent organization 
        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 or 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 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 or underserved populations;
                    ``(B) include activities carried out through 
                cooperative relationships 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 or underserved populations; and
                    ``(E) ensure that parents of children who are 
                members 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, or enters into a contract or cooperative agreement, 
        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 or 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) on the provision 
                of parent training and information activities and on 
                improved early intervention, educational, and 
                transitional results for such children.
    ``(d) Technical Assistance; Authorized Activities.--The Secretary 
may provide technical assistance to organizations to--
            ``(1) carry out parent training and information activities 
        by--
                    ``(A) coordinating parent training efforts; and
                    ``(B) providing or helping to disseminate 
                information to centers funded under this part; and
            ``(2) develop, coordinate, and disseminate information on 
        the following parent training and information activities:
                    ``(A) Assisting the centers in evaluating their 
                activities under this part.
                    ``(B) Promoting the use of technology by the 
                centers to make information available.
                    ``(C) Reaching parents of children with 
                disabilities who are members of unserved or underserved 
                populations.
                    ``(D) Including children with disabilities in 
                general education programs.
                    ``(E)(i) 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.
                    ``(ii) Promoting mediation and alternative methods 
                of dispute resolution for children with disabilities.
                    ``(F) 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, or enter into a contract or cooperative agreement, under this 
section shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
require.
    ``(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 by competitively 
making grants and entering into 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 other 
        members of partnerships 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 
        other members of partnerships, 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 need identified by 
        States, local educational agencies, and other members of 
        partnerships, that are in the process of achieving systems 
        change outcomes; and
            ``(4) develop long-term working relationships with States, 
        local educational agencies, and other members of partnerships, 
        by--
                    ``(A) developing familiarity with the practices, 
                procedures, and policies of the States, agencies, and 
                other members;
                    ``(B) providing services that are based on the 
                needs and concerns identified by the members of the 
                partnerships, rather than on externally imposed 
                criteria or topics;
                    ``(C) focusing on accountability of the States, 
                agencies, and other members for improved early 
                intervention, educational, and transitional results for 
                children with disabilities; and
                    ``(D) coordinating activities 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 members of partnerships, that--
            ``(1) focus on major requirements of this Act as determined 
        by the Secretary, 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 
        and toddlers with disabilities, 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 members of partnerships;
                    ``(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 other members; 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 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) early intervention services and 
                        results;
            ``(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, or enter into a contract or cooperative agreement, under this 
section shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
require.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $36,434,000 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 competitively 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 
        other assistance under this section, concerning 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 individuals 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 appropriate nonprofit organizations, 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 autistic 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, or enter into a contract or cooperative agreement, under this 
section shall submit an application to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
require.
    ``(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 ``parent training and information centers under part D'' and 
inserting ``parent training and information centers, and community 
parent training and information programs, assisted under part E''.

SEC. 503. EFFECTIVE DATE.

    The amendments made by this title 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 of'' and 
        inserting ``system that provides'';
            (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 
        children from birth through age 2 who are at risk of having 
        substantial developmental delays if early intervention services 
        are not provided to the children.''.

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 who 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)(1)) 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)(1)) 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 that is in effect and that ensures 
        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) (as 
                amended by section 202 of the Individuals with 
                Disabilities Education Act Amendments of 1997)'';
                    (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.''.
    (c) Use of Paraprofessionals.--Section 676 (20 U.S.C. 1476) is 
amended by adding at the end the following:
    ``(c) Use of Paraprofessionals.--Nothing in this Act, including 
subsection (b), prohibits the use of paraprofessionals who are 
appropriately trained and supervised by qualified personnel (in 
accordance with State law, regulations, or written policy), in meeting 
the requirements of this part.''.

SEC. 607. INDIVIDUALIZED FAMILY SERVICE PLAN.

    Section 677 (20 U.S.C. 1477) is amended--
            (1) in subsection (a)(3), by striking ``parent or 
        guardian'' and inserting ``parents of the infant or toddler'';
            (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 ``part'' and all that 
        follows and inserting ``part,''; 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 not later than 90 days (and at 
                                the discretion of all such parties, 
                                earlier, but not earlier than 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 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.

    (a) Section Heading.--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 676(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) (as amended by section 206(c)(7) of the Individuals with 
        Disabilities Education Act Amendments of 1997), 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 considered 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: ``not 
        more than''; 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 not more than 0.0005 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(f) (as amended by section 
                209 of the Individuals with Disabilities Education Act 
                Amendments of 1997)'';
            (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 ``; 
                or'';
            (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 (20 U.S.C. 1484) is amended in 
subsection (f) (as redesignated in subsection (c)(1)) 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 Committee 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 1997, 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(4);
            ``(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 1997.
    ``(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 Committee 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 1998 through 
2002.''.

SEC. 617. EFFECTIVE DATE.

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