```

[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 415 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                 S. 415

 To amend the Individuals with Disabilities Education Act in order to 
 limit the penalties to a State that does not meet its maintenance of 
 effort level of funding to a one-time penalty, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            February 9, 2015

Mr. Udall (for himself and Mr. Heinrich) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
 To amend the Individuals with Disabilities Education Act in order to 
 limit the penalties to a State that does not meet its maintenance of 
 effort level of funding to a one-time penalty, 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 ``IDEA MOE Adjustment Act''.

SEC. 2. IDEA PENALTY LIMITATION.

    (a) In General.--Section 611(d) of the Individuals with 
Disabilities Education Act (20 U.S.C. 1411(d)) is amended by adding at 
the end the following:
            ``(5) Special rule regarding penalties.--
                    ``(A) Distribution of funds.--In any case where a 
                State's allocation under this subsection is reduced 
                pursuant to section 612(a)(18)(B), the Secretary shall 
                distribute to all other States that were not subject to 
                a reduction in allocation under such section, the 
                amount by which any State's allocation under this 
                subsection was reduced under such section, in 
                accordance with subclauses (II) and (III) of paragraph 
                (3)(A)(i) and without regard to paragraphs (A)(i)(I) 
                and (B) of paragraph (3).
                    ``(B) Use of funds by states.--Each State that 
                receives additional funds under subparagraph (A) shall 
                allocate such funds to local educational agencies in 
                accordance with subsection (f).
                    ``(C) No consideration for future years 
                allocation.--In calculating the amounts for allocations 
                under this subsection for fiscal year 2013 and all 
                subsequent years, the Secretary, when determining the 
                amount a State received under this subsection for a 
                preceding fiscal year, shall not consider--
                            ``(i) any amount by which a State's 
                        allocation for fiscal year 2012 or any 
                        subsequent year is reduced pursuant to section 
                        612(a)(18); and
                            ``(ii) any amount by which a State's 
                        allocation increased, pursuant to subparagraph 
                        (A), as a result of a State's reduction in 
                        allocation for fiscal year 2012 or any 
                        subsequent year.''.
    (b) Application of Reduction Over Multi-Year Period.--Subparagraph 
(B) of section 612(a)(18) of the Individuals with Disabilities 
Education Act (20 U.S.C. 1412(a)(18)(B)) is amended to read as follows:
                    ``(B) Reduction of funds for failure to maintain 
                support.--In any case where a State fails to comply 
                with the requirement of subparagraph (A) for a fiscal 
                year, the State shall be subject to a reduction of the 
                State's allocation of funds under section 611 by the 
                amount by which the State fails to meet the 
                requirement. The Secretary shall carry out such 
                reduction, in accordance with section 611(d)(5), by--
                            ``(i) reducing the State's allocation under 
                        section 611 for the following fiscal year by 
                        the entire amount of the reduction; or
                            ``(ii) applying the reduction to the 
                        State's allocations under such section over a 
                        multi-year period of not more than 5 
                        consecutive fiscal years, until the entire 
                        amount of the reduction has been applied.''.
                                 <all>
```