the Interior to meet the need for assistance for
the education of children with disabilities on
reservations aged 5 to 21, inclusive, enrolled in
elementary and secondary schools for Indian
children operated or funded by the Secretary of
the Interior.
‘‘(B) CALCULATION OF NUMBER OF CHIL-
DREN.—In the case of Indian students ages 3
to 5, inclusive, who are enrolled in programs af-
filiated with Bureau of Indian Affairs (here-
after in this subsection referred to as ‘BIA’)
schools and that are required by the States in
which such schools are located to attain or
maintain State accreditation, and which schools
have such accreditation prior to the date of en-
actment of the Individuals with Disabilities
Education Act Amendments of 1991, the school
shall be allowed to count those children for the
purpose of distribution of the funds provided
under this paragraph to the Secretary of the
Interior. The Secretary of the Interior shall be
responsible for meeting all of the requirements
of this part for these children, in accordance
with paragraph (2). The amount of such pay-
ment for any fiscal year shall be equal to 80
percent of the amount allotted under subsection
(b)(2) for that fiscal year.
‘‘(C) ADDITIONAL
REQUIREMENT.—With
respect to all other children aged 3 to 21, inclu-
sive, on reservations, the State educational
agency shall be responsible for ensuring that all
of the requirements of this part are imple-
mented.
‘‘(2) SUBMISSION OF INFORMATION.—The Sec-
retary of Education may provide the Secretary of
the Interior amounts under paragraph (1) for a fis-
cal year only if the Secretary of the Interior submits
to the Secretary of Education information that—
‘‘(A) demonstrates that the Department of
the Interior meets the appropriate require-
ments, as determined by the Secretary of Edu-
cation, of sections 612 (including monitoring
and evaluation activities) and 613;
‘‘(B) includes a description of how the Sec-
retary of the Interior will coordinate the provi-
sion of services under this part with local edu-
cational agencies, tribes and tribal organiza-
tions, and other private and Federal service
providers;
‘‘(C) includes an assurance that there are
public hearings, adequate notice of such hear-
ings, and an opportunity for comment afforded
to members of tribes, tribal governing bodies,
and affected local school boards before the
adoption of the policies, programs, and proce-
dures described in subparagraph (A);
‘‘(D) includes an assurance that the Sec-
retary of the Interior will provide such informa-
tion as the Secretary of Education may require
to comply with section 618;
‘‘(E) includes an assurance that the Sec-
retary of the Interior and the Secretary of
Health and Human Services have entered into
a memorandum of agreement, to be provided to
the Secretary of Education, for the coordination
of services, resources, and personnel between
their respective Federal, State, and local offices
and with State and local educational agencies
and other entities to facilitate the provision of
services to Indian children with disabilities re-
siding on or near reservations (such agreement
shall provide for the apportionment of respon-
sibilities and costs including, but not limited to,
child find, evaluation, diagnosis, remediation or
therapeutic measures, and (where appropriate)
equipment and medical or personal supplies as
needed for a child to remain in school or a pro-
gram); and
‘‘(F) includes an assurance that the De-
partment of the Interior will cooperate with the
Department of Education in its exercise of
monitoring and oversight of this application,
and any agreements entered into between the
Secretary of the Interior and other entities
under this part, and will fulfill its duties under
this part.
Section 616(a) shall apply to the information de-
scribed in this paragraph.
‘‘(3) PAYMENTS FOR EDUCATION AND SERVICES
FOR INDIAN CHILDREN WITH DISABILITIES AGED 3
TO 5.—
‘‘(A) IN
GENERAL.—With funds appro-
priated under subsection (e), the Secretary shall
make payments to the Secretary of the Interior
to be distributed to tribes or tribal organiza-
tions (as defined under section 4 of the Indian
Self-Determination and Education Assistance
Act) or consortia of the above to provide for the
coordination of assistance for special education
and related services for children with disabilities
aged 3 to 5, inclusive, on reservations served by
elementary and secondary schools for Indian
children operated or funded by the Department
of the Interior. The amount of such payments
under subparagraph (B) for any fiscal year
shall be equal to 20 percent of the amount al-
lotted under subsection (b)(2).
‘‘(B) DISTRIBUTION OF FUNDS.—The Sec-
retary of the Interior shall distribute the total
amount of the payment under subparagraph
(A) by allocating to each tribe or tribal organi-
zation an amount based on the number of chil-
dren with disabilities, ages 3 to 5, inclusive, re-
siding on reservations as reported annually di-
vided by the total of such children served by all
tribes or tribal organizations.
‘‘(C) SUBMISSION OF INFORMATION.—To
receive a payment under this paragraph, the
tribe or tribal organization shall submit such
figures to the Secretary of the Interior as re-
quired to determine the amounts to be allocated
under subparagraph (B). This information shall
be compiled and submitted to the Secretary of
Education.
‘‘(D) USE OF FUNDS.—The funds received
by a tribe or tribal organization shall be used
to assist in child find, screening, and other pro-
cedures for the early identification of children
aged 3 to 5, inclusive, parent training, and the
provision of direct services. These activities may
be carried out directly or through contracts or
cooperative agreements with the BIA, local edu-
cational agencies, and other public or private
nonprofit organizations. The tribe or tribal or-
ganization is encouraged to involve Indian par-
ents in the development and implementation of
these activities. The above entities shall, as ap-
propriate, make referrals to local, State, or
Federal entities for the provision of services or
further diagnosis.
‘‘(E) BIENNIAL REPORT.—To be eligible to
receive a grant pursuant to subparagraph (A),
the tribe or tribal organization shall provide to
the Secretary of the Interior a biennial report
of activities undertaken under this paragraph,
including the number of contracts and coopera-
tive agreements entered into, the number of
children contacted and receiving services for
each year and the estimated number of children
needing services during the 2 years following
the one in which the report is made. The Sec-
retary of the Interior shall include a summary
of this information on a biennial basis in the
report to the Secretary of Education required
under this subsection. The Secretary of Edu-
cation may require any additional information
from the Secretary of the Interior.
‘‘(F) PROHIBITIONS.—None of the funds
allocated under this paragraph may be used by
the Secretary of the Interior for administrative
purposes, including child count and the provi-
sion of technical assistance.
‘‘(4) PLAN FOR COORDINATION OF SERVICES.—
The Secretary of the Interior shall develop and im-
plement a plan for the coordination of services for
all Indian children with disabilities residing on res-
ervations covered under this Act. Such plan shall
provide for the coordination of services benefiting
these children from whatever source, including
tribes, the Indian Health Service, other BIA divi-
sions, and other Federal agencies. In developing
such a plan, the Secretary of the Interior shall con-
sult with all interested and involved parties. It shall
be based upon the needs of the children and the sys-
tem best suited for meeting those needs, and may in-
volve the establishment of cooperative agreements
between the BIA, other Federal agencies, and other
entities. Such plan shall also be distributed upon re-
quest to States, State and local educational agencies,
and other agencies providing services to infants, tod-
dlers, children, and youth with disabilities, to tribes,
and to other interested parties.
‘‘(5) ESTABLISHMENT OF ADVISORY BOARD.—
To meet the requirements of section 612(a)(18), the
Secretary of the Interior shall establish, not later
than 6 months after the date of the enactment of
the IDEA Improvement Act of 1996, under the Bu-
reau of Indian Affairs (BIA), an advisory board
composed of individuals involved in or concerned
with the education and provision of services to In-
dian infants, toddlers, children, and youth with dis-
abilities, including Indians with disabilities, Indian
parents or guardians of such children, teachers,
service providers, State and local educational offi-
cials, representatives of tribes or tribal organiza-
tions, representatives from State Interagency Co-
ordinating Councils in States having reservations,
and other members representing the various divi-
sions and entities of the BIA. The chairperson shall
be selected by the Secretary of the Interior. The ad-
visory board shall—
‘‘(A) assist in the coordination of services
within BIA and with other local, State, and
Federal agencies in the provision of education
for infants, toddlers, children, and youth with
disabilities;
‘‘(B) advise and assist the Secretary of the
Interior in the performance of the Secretary’s
responsibilities described in this subsection;
‘‘(C) develop and recommend policies con-
cerning effective inter- and intra-agency collabo-
ration, including modifications to regulations,
and the elimination of barriers to inter- and
intra-agency programs and activities;
‘‘(D) provide assistance and disseminate
information on best practices, effective program
coordination strategies, and recommendations
for improved educational programming for In-
dian infants, toddlers, children, and youth with
disabilities; and
‘‘(E) provide assistance in the preparation
of 
information 
required 
under 
paragraph
(2)(D).
‘‘(6) ANNUAL REPORTS.—
‘‘(A) IN
GENERAL.—The advisory board
established under paragraph (5) shall prepare
and submit to the Secretary of the Interior an
annual report containing a description of the
activities of the advisory board for the preced-
ing year.
‘‘(B) AVAILABILITY.—The Secretary shall
make available to the Secretary of Education
the report described in subparagraph (A).
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of carrying out this part (except for section 619;
relating to preschool grants), there are authorized to be
appropriated to the Secretary such sums as may be nec-
essary.
‘‘SEC. 612. STATE REQUIREMENTS.
‘‘(a) IN GENERAL.—A State shall be eligible to re-
ceive a grant under this part for a fiscal year if, except
as provided in subsection (c), the State submits to the Sec-
retary information that demonstrates to the satisfaction
of the Secretary that the State has in effect policies and
procedures to ensure that it meets each of the following
requirements:
‘‘(1) 
FREE
APPROPRIATE
PUBLIC
EDU-
CATION.—
‘‘(A) IN
GENERAL.—A free appropriate
public education is available to all children with
disabilities residing in the State between the
ages of 3 and 21, inclusive.
‘‘(B) 
LIMITATION.—Subparagraph 
(A)
shall not apply with respect to children with
disabilities aged 3 to 5 and children with dis-
abilities aged 18 to 21 to the extent that such
application to those children would be inconsist-
ent with State law or practice, or the order of
any court, relating to the provision of public
education to children in such age ranges.
‘‘(2) CHILD FIND.—All children with disabilities
residing in the State are identified, located, and
evaluated, including children in private schools, re-
gardless of the severity of such disabilities.
‘‘(3) INDIVIDUALIZED EDUCATION PROGRAM.—
An individualized education program, or an individ-
ualized family service plan that meets the require-
ments of section 636(d), is developed, reviewed, and
revised for each child with a disability in accordance
with section 614(d).
‘‘(4) LEAST RESTRICTIVE ENVIRONMENT.—
‘‘(A) IN GENERAL.—To the maximum ex-
tent appropriate—
‘‘(i) children with disabilities, includ-
ing children in public or private institu-
tions or other care facilities, are educated
with children who are not disabled; and
‘‘(ii) special classes, separate school-
ing, or other removal of children with dis-
abilities from the regular educational envi-
ronment occurs only when the nature or
severity of the disability of a child means
that education in regular classes with the
use of supplementary aids and services
cannot be achieved satisfactorily.
‘‘(B) ADDITIONAL REQUIREMENT.—
‘‘(i) IN GENERAL.—The State’s meth-
od of distributing funds shall not result in
placements that violate the requirements of
subparagraph (A).
‘‘(ii) EXCEPTION.—If the State does
not have policies and procedures to ensure
compliance with clause (i), the State shall
provide the Secretary an assurance that it
will revise the funding mechanism as soon
as feasible to ensure that such mechanism
does not result in such placements.
‘‘(5) 
PROCEDURAL
SAFEGUARDS.—Children
with disabilities and their parents are afforded the
procedural safeguards required by section 615.
‘‘(6) EVALUATION.—Children with disabilities
are evaluated in accordance with subsections (a)
through (c) of section 614.
‘‘(7) CONFIDENTIALITY.—Agencies in the State
comply with section 617(c) (relating to the confiden-
tiality of records and information).
‘‘(8) TRANSITION FROM PART C TO PRESCHOOL
PROGRAMS.—Children participating in early-inter-
vention programs assisted under part C, and who
will participate in preschool programs assisted under
this part, experience a smooth transition to those
preschool programs. By the third birthday of such a
child, an individualized education program or, if con-
sistent with sections 614(d)(1)(B) and 636(d), an
individualized family service plan, has been devel-
oped and is being implemented for the child.
‘‘(9) CHILDREN IN PRIVATE SCHOOLS.—
‘‘(A) CHILDREN
PLACED
IN
PRIVATE
SCHOOLS BY THEIR PARENTS.—To the extent
consistent with the number and location of chil-
dren with disabilities in the State who are en-
rolled by their parents in private elementary