H. R. 5—82
of the responsibilities set forth in such section, particularly
the identification of the sources of fiscal and other support
for services for early intervention programs, assignment
of financial responsibility to the appropriate agency, and
the promotion of the interagency agreements;
‘‘(B) advise and assist the lead agency in the prepara-
tion of applications and amendments thereto;
‘‘(C) advise and assist the State educational agency
regarding the transition of toddlers with disabilities to
preschool and other appropriate services; and
‘‘(D) prepare and submit an annual report to the
Governor and to the Secretary on the status of early inter-
vention programs for infants and toddlers with disabilities
and their families operated within the State.
‘‘(2) AUTHORIZED ACTIVITY.—The council may advise and
assist the lead agency and the State educational agency regard-
ing the provision of appropriate services for children from birth
through age 5. The council may advise appropriate agencies
in the State with respect to the integration of services for
infants and toddlers with disabilities and 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.
‘‘(f ) CONFLICT OF INTEREST.—No member of the council shall
cast a vote on any matter that would provide direct financial
benefit to that member or otherwise give the appearance of a
conflict of interest under State law.
‘‘SEC. 642. FEDERAL ADMINISTRATION.
‘‘Sections 616, 617, and 618 shall, to the extent not inconsistent
with this part, apply to the program authorized by this part,
except that—
‘‘(1) any reference in such sections to a State educational
agency shall be considered to be a reference to a State’s lead
agency established or designated under section 635(a)(10);
‘‘(2) any reference in such sections to a local educational
agency, educational service agency, or a State agency shall
be considered to be a reference to an early intervention service
provider under this part; and
‘‘(3) any reference to the education of children with
disabilities or the education of all children with disabilities
shall be considered to be a reference to the provision of appro-
priate early intervention services to infants and toddlers with
disabilities.
‘‘SEC. 643. ALLOCATION OF FUNDS.
‘‘(a) RESERVATION OF FUNDS FOR OUTLYING AREAS.—
‘‘(1) IN GENERAL.—From the sums appropriated to carry
out this part for any fiscal year, the Secretary may reserve
up to one percent for payments to Guam, American Samoa,
the Virgin Islands, and the Commonwealth of the Northern
Mariana Islands in accordance with their respective needs.
‘‘(2) CONSOLIDATION OF FUNDS.—The provisions of Public
Law 95–134, permitting the consolidation of grants to the outly-
ing areas, shall not apply to funds those areas receive under
this part.
‘‘(b) PAYMENTS TO INDIANS.—
H. R. 5—83
‘‘(1) IN GENERAL.—The Secretary shall, subject to this sub-
section, make payments to the Secretary of the Interior to
be distributed to tribes, tribal organizations (as defined under
section 4 of the Indian Self-Determination and Education
Assistance Act), or consortia of the above entities for the
coordination of assistance in the provision of early intervention
services by the States to infants and toddlers with disabilities
and their families on reservations served by elementary and
secondary schools for Indian children operated or funded by
the Department of the Interior. The amount of such payment
for any fiscal year shall be 1.25 percent of the aggregate of
the amount available to all States under this part for such
fiscal year.
‘‘(2) ALLOCATION.—For each fiscal year, the Secretary of
the Interior shall distribute the entire payment received under
paragraph (1) by providing to each tribe, tribal organization,
or consortium an amount based on the number of infants and
toddlers residing on the reservation, as determined annually,
divided by the total of such children served by all tribes, tribal
organizations, or consortia.
‘‘(3) INFORMATION.—To receive a payment under this
subsection, the tribe, tribal organization, or consortium shall
submit such information to the Secretary of the Interior as
is needed to determine the amounts to be distributed under
paragraph (2).
‘‘(4) USE OF FUNDS.—The funds received by a tribe, tribal
organization, or consortium shall be used to assist States in
child find, screening, and other procedures for the early identi-
fication of Indian children under 3 years of age and for parent
training. Such funds may also be used to provide early interven-
tion services in accordance with this part. Such activities may
be carried out directly or through contracts or cooperative agree-
ments with the BIA, local educational agencies, and other public
or private nonprofit organizations. The tribe, tribal organiza-
tion, or consortium is encouraged to involve Indian parents
in the development and implementation of these activities.
The above entities shall, as appropriate, make referrals to
local, State, or Federal entities for the provision of services
or further diagnosis.
‘‘(5) REPORTS.—To be eligible to receive a grant under para-
graph (2), a tribe, tribal organization, or consortium shall make
a biennial report to the Secretary of the Interior of activities
undertaken under this subsection, including the number of
contracts and cooperative 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 year in which the report is made. The
Secretary of the Interior shall include a summary of this
information on a biennial basis to the Secretary of Education
along with such other information as required under section
611(i)(3)(E). The Secretary of Education may require any addi-
tional information from the Secretary of the Interior.
‘‘(6) PROHIBITED USES OF FUNDS.—None of the funds under
this subsection may be used by the Secretary of the Interior
for administrative purposes, including child count, and the
provision of technical assistance.
‘‘(c) STATE ALLOTMENTS.—
H. R. 5—84
‘‘(1) IN GENERAL.—Except as provided in paragraphs (2),
(3), and (4), from the funds remaining for each fiscal year
after the reservation and payments under subsections (a) and
(b), the Secretary shall first allot to each State an amount
that bears the same ratio to the amount of such remainder
as the number of infants and toddlers in the State bears to
the number of infants and toddlers in all States.
‘‘(2) MINIMUM ALLOTMENTS.—Except as provided in para-
graphs (3) and (4), no State shall receive an amount under
this section for any fiscal year that is less than the
greatest of—
‘‘(A) one-half of one percent of the remaining amount
described in paragraph (1); or
‘‘(B) $500,000.
‘‘(3) SPECIAL RULE FOR 1998 AND 1999.—
‘‘(A) IN GENERAL.—Except as provided in paragraph
(4), no State may receive an amount under this section
for either fiscal year 1998 or 1999 that is less than the
sum of the amounts such State received for fiscal year
1994 under—
‘‘(i) part H (as in effect for such fiscal year); and
‘‘(ii) subpart 2 of part D of chapter 1 of title I
of the Elementary and Secondary Education Act of
1965 (as in effect on the day before the date of the
enactment of the Improving America’s Schools Act of
1994) for children with disabilities under 3 years of
age.
‘‘(B) EXCEPTION.—If, for fiscal year 1998 or 1999, the
number of infants and toddlers in a State, as determined
under paragraph (1), is less than the number of infants
and toddlers so determined for fiscal year 1994, the amount
determined under subparagraph (A) for the State shall
be reduced by the same percentage by which the number
of such infants and toddlers so declined.
‘‘(4) RATABLE REDUCTION.—
‘‘(A) IN GENERAL.—If the sums made available under
this part for any fiscal year are insufficient to pay the
full amounts that all States are eligible to receive under
this subsection for such year, the Secretary shall ratably
reduce the allotments to such States for such year.
‘‘(B) ADDITIONAL FUNDS.—If additional funds become
available for making payments under this subsection for
a fiscal year, allotments that were reduced under subpara-
graph (A) shall be increased on the same basis they were
reduced.
‘‘(5) DEFINITIONS.—For the purpose of this subsection—
‘‘(A) the terms ‘infants’ and ‘toddlers’ mean children
under 3 years of age; and
‘‘(B) the term ‘State’ means each of the 50 States,
the District of Columbia, and the Commonwealth of Puerto
Rico.
‘‘(d) REALLOTMENT OF FUNDS.—If a State elects not to receive
its allotment under subsection (c), the Secretary shall reallot, among
the remaining States, amounts from such State in accordance with
such subsection.
H. R. 5—85
‘‘SEC. 644. FEDERAL INTERAGENCY COORDINATING COUNCIL.
‘‘(a) ESTABLISHMENT AND PURPOSE.—
‘‘(1) IN GENERAL.—The Secretary shall establish a Federal
Interagency Coordinating Council in order to—
‘‘(A) minimize duplication of programs and activities
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 chil-
dren with disabilities;
‘‘(B) ensure the effective coordination of Federal early
intervention and preschool programs and policies across
Federal agencies;
‘‘(C) coordinate the provision of Federal technical
assistance and support activities to States;
‘‘(D) identify gaps in Federal agency programs and
services; and
‘‘(E) identify barriers to Federal interagency coopera-
tion.
‘‘(2) APPOINTMENTS.—The council established under para-
graph (1) (hereafter in this section referred to as the ‘Council’)
and the chairperson of the Council shall be appointed by the
Secretary in consultation with other appropriate Federal agen-
cies. In making the appointments, the Secretary shall ensure
that each member has sufficient authority to engage in policy
planning and implementation on behalf of the department,
agency, or program that the member represents.
‘‘(b) COMPOSITION.—The Council shall be composed of—
‘‘(1) a representative of the Office of Special Education
Programs;
‘‘(2) a representative of the National Institute on Disability
and Rehabilitation Research and a representative of the Office
of Educational Research and Improvement;
‘‘(3) a representative of the Maternal and Child Health
Services Block Grant Program;
‘‘(4) a representative of programs administered under the
Developmental Disabilities Assistance and Bill of Rights Act;
‘‘(5) a representative of the Health Care Financing Adminis-
tration;
‘‘(6) a representative of the Division of Birth Defects and
Developmental Disabilities of the Centers for Disease Control;
‘‘(7) a representative of the Social Security Administration;
‘‘(8) a representative of the special supplemental nutrition
program for women, infants, and children of the Department
of Agriculture;
‘‘(9) a representative of the National Institute of Mental
Health;
‘‘(10) a representative of the National Institute of Child
Health and Human Development;
‘‘(11) a representative of the Bureau of Indian Affairs of
the Department of the Interior;
‘‘(12) a representative of the Indian Health Service;
‘‘(13) a representative of the Surgeon General;
‘‘(14) a representative of the Department of Defense;
H. R. 5—86
‘‘(15) a representative of the Children’s Bureau, and a
representative of the Head Start Bureau, of the Administration
for Children and Families;
‘‘(16) a representative of the Substance Abuse and Mental
Health Services Administration;
‘‘(17) a representative of the Pediatric AIDS Health Care
Demonstration Program in the Public Health Service;
‘‘(18) parents of children with disabilities age 12 or under
(who shall constitute at least 20 percent of the members of
the Council), of whom at least one must have a child with
a disability under the age of 6;
‘‘(19) at least two representatives of State lead agencies
for early intervention services to infants and toddlers, one
of whom must be a representative of a State educational agency
and the other a representative of a non-educational agency;
‘‘(20) other members representing appropriate agencies
involved in the provision of, or payment for, early intervention
services and special education and related services to infants
and toddlers with disabilities and their families and preschool
children with disabilities; and
‘‘(21) other persons appointed by the Secretary.
‘‘(c) MEETINGS.—The Council shall meet at least quarterly and
in such places as the Council deems necessary. The meetings shall
be publicly announced, and, to the extent appropriate, open and
accessible to the general public.
‘‘(d) FUNCTIONS OF THE COUNCIL.—The Council shall—
‘‘(1) advise and assist the Secretary of Education, the Sec-
retary of Health and Human Services, the Secretary of Defense,
the Secretary of the Interior, the Secretary of Agriculture,
and the 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;
‘‘(2) conduct policy analyses of Federal programs related
to the provision of early intervention services and special edu-
cational and related services to infants and toddlers with
disabilities and their families, and preschool children with
disabilities, in order to determine areas of conflict, overlap,
duplication, or inappropriate omission;
‘‘(3) identify strategies to address issues described in para-
graph (2);
‘‘(4) develop and recommend joint policy memoranda
concerning 
effective 
interagency 
collaboration, 
including
modifications to regulations, and the elimination of barriers
to interagency programs and activities;
‘‘(5) coordinate technical assistance and disseminate
information on best practices, effective program coordination
strategies, and recommendations for improved early interven-
tion programming for infants and toddlers with disabilities
and their families and preschool children with disabilities; and
‘‘(6) facilitate activities in support of States’ interagency
coordination efforts.
‘‘(e) CONFLICT OF INTEREST.—No member of the Council shall
cast a vote on any matter that would provide direct financial
benefit to that member or otherwise give the appearance of a
conflict of interest under Federal law.
H. R. 5—87
‘‘(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. 645. AUTHORIZATION OF APPROPRIATIONS.
‘‘For the purpose of carrying out this part, there are authorized
to be appropriated $400,000,000 for fiscal year 1998 and such
sums as may be necessary for each of the fiscal years 1999 through
2002.
‘‘PART D—NATIONAL ACTIVITIES TO IMPROVE
EDUCATION OF CHILDREN WITH DISABILITIES
‘‘Subpart 1—State Program Improvement Grants
for Children with Disabilities
‘‘SEC. 651. FINDINGS AND PURPOSE.
‘‘(a) FINDINGS.—The 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 demo-
graphics, social policies, and labor and economic markets.
‘‘(2) In order for States to address such demands and to
facilitate lasting systemic change that is of benefit to all stu-
dents, including children with disabilities, States must involve
local educational agencies, parents, individuals with disabilities
and their families, teachers and other service providers, and
other interested individuals and organizations in carrying out
comprehensive strategies to improve educational results for
children with disabilities.
‘‘(3) Targeted Federal financial resources are needed to
assist States, working in partnership with others, to identify
and make needed changes 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 systemic-
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 those standards and goals;
‘‘(B) create a system that fully addresses the needs
of all students, including children with disabilities, by
H. R. 5—88
addressing the needs of children with disabilities in carry-
ing out educational reform activities;
‘‘(C) clearly define, in measurable terms, the school
and post-school results that children with disabilities are
expected to achieve;
‘‘(D) promote service integration, and the coordination
of State and local education, social, health, mental health,
and other services, in addressing the full range of student
needs, particularly the needs of children with disabilities
who require significant levels of support to maximize their
participation and learning in school and the community;
‘‘(E) ensure that children with disabilities are provided
assistance and support in making transitions as described
in section 674(b)(3)(C);
‘‘(F) promote comprehensive programs of professional
development to ensure that the persons responsible for
the education or a transition of children with disabilities
possess the skills and knowledge necessary to address the
educational and related needs of those children;
‘‘(G) disseminate to teachers and other personnel serv-
ing children with disabilities research-based knowledge
about successful teaching practices and models and provide
technical assistance to local educational agencies and
schools on how to improve results for children with disabil-
ities;
‘‘(H) create school-based disciplinary strategies that
will be used to reduce or eliminate the need to use suspen-
sion and expulsion as disciplinary options for children with
disabilities;
‘‘(I) establish placement-neutral funding formulas and
cost-effective strategies for meeting the needs of children
with disabilities; and
‘‘(J) involve individuals with disabilities and parents
of children with disabilities in planning, implementing,
and evaluating systemic-change activities and educational
reforms.
‘‘(b) PURPOSE.—The purpose of this subpart is to assist State
educational agencies, and their partners referred to in section
652(b), in reforming and improving their systems for providing
educational, early intervention, and transitional services, including
their systems for professional development, technical assistance,
and dissemination of knowledge about best practices, to improve
results for children with disabilities.
‘‘SEC. 652. ELIGIBILITY AND COLLABORATIVE PROCESS.
‘‘(a) ELIGIBLE APPLICANTS.—A State educational agency may
apply for a grant under this subpart for a grant period of not
less than 1 year and not more than 5 years.
‘‘(b) PARTNERS.—
‘‘(1) REQUIRED PARTNERS.—
‘‘(A) CONTRACTUAL PARTNERS.—In order to be consid-
ered for a grant under this subpart, a State educational
agency shall establish a partnership with local educational
agencies and other State agencies involved in, or concerned
with, the education of children with disabilities.
‘‘(B) OTHER PARTNERS.—In order to be considered for
a grant under this subpart, a State educational agency
H. R. 5—89
shall work in partnership with other persons and organiza-
tions involved in, and concerned with, the education of
children with disabilities, including—
‘‘(i) the Governor;
‘‘(ii) parents of children with disabilities;
‘‘(iii) parents of nondisabled children;
‘‘(iv) individuals with disabilities;
‘‘(v) organizations representing individuals with
disabilities and their parents, such as parent training
and information centers;
‘‘(vi) 
community-based 
and 
other 
nonprofit
organizations involved in the education and employ-
ment of individuals with disabilities;
‘‘(vii) the lead State agency for part C;
‘‘(viii) general and special education teachers, and
early intervention personnel;
‘‘(ix) the State advisory panel established under
part C;
‘‘(x) the State interagency coordinating council
established under part C; and
‘‘(xi) institutions of higher education within the
State.
‘‘(2) OPTIONAL PARTNERS.—A partnership under subpara-
graph (A) or (B) of paragraph (1) may also include—
‘‘(A) 
individuals 
knowledgeable 
about 
vocational
education;
‘‘(B) the State agency for higher education;
‘‘(C) the State vocational rehabilitation agency;
‘‘(D) public agencies with jurisdiction in the areas of
health, mental health, social services, and juvenile justice;
and
‘‘(E) other individuals.
‘‘SEC. 653. APPLICATIONS.
‘‘(a) IN GENERAL.—
‘‘(1) SUBMISSION.—A State educational agency that desires
to receive a grant under this subpart shall submit to the
Secretary an application at such time, in such manner, and
including such information as the Secretary may require.
‘‘(2) STATE
IMPROVEMENT
PLAN.—The application shall
include a State improvement plan that—
‘‘(A) is integrated, to the maximum extent possible,
with State plans under the Elementary and Secondary
Education Act of 1965 and the Rehabilitation Act of 1973,
as appropriate; and
‘‘(B) meets the requirements of this section.
‘‘(b) DETERMINING CHILD AND PROGRAM NEEDS.—
‘‘(1) IN
GENERAL.—Each State improvement plan shall
identify those critical aspects of early intervention, general
education, and special education programs (including profes-
sional development, based on an assessment of State and local
needs) that must be improved to enable children with disabil-
ities to meet the goals established by the State under section
612(a)(16).
‘‘(2) REQUIRED
ANALYSES.—To meet the requirement of
paragraph (1), the State improvement plan shall include at
least—
H. R. 5—90
‘‘(A) an analysis of all information, reasonably available
to the State educational agency, on the performance of
children with disabilities in the State, including—
‘‘(i) their performance on State assessments and
other performance indicators established for all chil-
dren, including drop-out rates and graduation rates;
‘‘(ii) their participation in postsecondary education
and employment; and
‘‘(iii) how their performance on the assessments
and indicators described in clause (i) compares to that
of non-disabled children;
‘‘(B) an analysis of State and local needs for profes-
sional development for personnel to serve children with
disabilities that includes, at a minimum—
‘‘(i) the number of personnel providing special
education and related services; and
‘‘(ii) relevant information on current and antici-
pated personnel vacancies and shortages (including the
number of individuals described in clause (i) with tem-
porary certification), and on the extent of certification
or retraining necessary to eliminate such shortages,
that is based, to the maximum extent possible, on
existing assessments of personnel needs;
‘‘(C) an analysis of the major findings of the Secretary’s
most recent reviews of State compliance, as they relate
to improving results for children with disabilities; and
‘‘(D) an analysis of other information, reasonably avail-
able to the State, on the effectiveness of the State’s systems
of early intervention, special education, and general edu-
cation in meeting the needs of children with disabilities.
‘‘(c) IMPROVEMENT
STRATEGIES.—Each State improvement
plan shall—
‘‘(1) describe a partnership agreement that—
‘‘(A) specifies—
‘‘(i) the nature and extent of the partnership among
the State educational agency, local educational agen-
cies, and other State agencies involved in, or concerned
with, the education of children with disabilities, and
the respective roles of each member of the partnership;
and
‘‘(ii) how such agencies will work in partnership
with other persons and organizations involved in, and
concerned with, the education of children with disabil-
ities, including the respective roles of each of these
persons and organizations; and
‘‘(B) is in effect for the period of the grant;
‘‘(2) describe how grant funds will be used in undertaking
the systemic-change activities, and the amount and nature
of funds from any other sources, including part B funds retained
for use at the State level under sections 611(f ) and 619(d),
that will be committed to the systemic-change activities;
‘‘(3) describe the strategies the State will use to address
the needs identified under subsection (b), including—
‘‘(A) how the State will change State policies and proce-
dures to address systemic barriers to improving results
for children with disabilities;
H. R. 5—91
‘‘(B) how the State will hold local educational agencies
and schools accountable for educational progress of children
with disabilities;
‘‘(C) how the State will provide technical assistance
to local educational agencies and schools to improve results
for children with disabilities;
‘‘(D) how the State will address the identified needs
for in-service and pre-service preparation to ensure that
all personnel who work with children with disabilities
(including both professional and paraprofessional personnel
who provide special education, general education, related
services, or early intervention services) have the skills and
knowledge necessary to meet the needs of children with
disabilities, including a description of how—
‘‘(i) the State will prepare general and special edu-
cation personnel with the content knowledge and
collaborative skills needed to meet the needs of children
with disabilities, including how the State will work
with other States on common certification criteria;
‘‘(ii) the State will prepare professionals and para-
professionals in the area of early intervention with
the content knowledge and collaborative skills needed
to meet the needs of infants and toddlers with disabil-
ities;
‘‘(iii) the State will work with institutions of higher
education and other entities that (on both a pre-service
and an in-service basis) prepare personnel who work
with children with disabilities to ensure that those
institutions and entities develop the capacity to support
quality professional development programs that meet
State and local needs;
‘‘(iv) the State will work to develop collaborative
agreements with other States for the joint support
and development of programs to prepare personnel
for which there is not sufficient demand within a single
State to justify support or development of such a pro-
gram of preparation;
‘‘(v) the State will work in collaboration with other
States, particularly neighboring States, to address the
lack of uniformity and reciprocity in the credentialing
of teachers and other personnel;
‘‘(vi) the State will enhance the ability of teachers
and others to use strategies, such as behavioral inter-
ventions, to address the conduct of children with
disabilities that impedes the learning of children with
disabilities and others;
‘‘(vii) the State will acquire and disseminate, to
teachers, administrators, school board members, and
related services personnel, significant knowledge
derived from educational research and other sources,
and how the State will, when appropriate, adopt
promising practices, materials, and technology;
‘‘(viii) the State will recruit, prepare, and retain
qualified 
personnel, 
including 
personnel 
with
disabilities and personnel from groups that are under-
represented in the fields of regular education, special
education, and related services;
H. R. 5—92
‘‘(ix) the plan is integrated, to the maximum extent
possible, with other professional development plans
and activities, including plans and activities developed
and carried out under other Federal and State laws
that address personnel recruitment and training; and
‘‘(x) the State will provide for the joint training
of parents and special education, related services, and
general education personnel;
‘‘(E) strategies that will address systemic problems
identified in Federal compliance reviews, including short-
ages of qualified personnel;
‘‘(F) how the State will disseminate results of the local
capacity-building and improvement projects funded under
section 611(f )(4);
‘‘(G) how the State will address improving results for
children with disabilities in the geographic areas of greatest
need; and
‘‘(H) how the State will assess, on a regular basis,
the extent to which the strategies implemented under this
subpart have been effective; and
‘‘(4) describe how the improvement strategies described
in paragraph (3) will be coordinated with public and private
sector resources.
‘‘(d) COMPETITIVE AWARDS.—
‘‘(1) IN GENERAL.—The Secretary shall make grants under
this subpart on a competitive basis.
‘‘(2) PRIORITY.—The Secretary may give priority to applica-
tions on the basis of need, as indicated by such information
as the findings of Federal compliance reviews.
‘‘(e) PEER REVIEW.—
‘‘(1) IN
GENERAL.—The Secretary shall use a panel of
experts who are competent, by virtue of their training, exper-
tise, or experience, to evaluate applications under this subpart.
‘‘(2) COMPOSITION
OF
PANEL.—A majority of a panel
described in paragraph (1) shall be composed of individuals
who are not employees of the Federal Government.
‘‘(3) PAYMENT OF FEES AND EXPENSES OF CERTAIN MEM-
BERS.—The Secretary may use available funds appropriated
to carry out this subpart to pay the expenses and fees of
panel members who are not employees of the Federal Govern-
ment.
‘‘(f ) REPORTING PROCEDURES.—Each State educational agency
that receives a grant under this subpart shall submit performance
reports to the Secretary pursuant to a schedule to be determined
by the Secretary, but not more frequently than annually. The
reports shall describe the progress of the State in meeting the
performance goals established under section 612(a)(16), analyze
the effectiveness of the State’s strategies in meeting those goals,
and identify any changes in the strategies needed to improve its
performance.
‘‘SEC. 654. USE OF FUNDS.
‘‘(a) IN GENERAL.—
‘‘(1) ACTIVITIES.—A State educational agency that receives
a grant under this subpart may use the grant to carry out
any activities that are described in the State’s application and
that are consistent with the purpose of this subpart.
H. R. 5—93
‘‘(2) CONTRACTS AND SUBGRANTS.—Each such State edu-
cational agency—
‘‘(A) shall, consistent with its partnership agreement
under section 652(b), award contracts or subgrants to local
educational agencies, institutions of higher education, and
parent training and information centers, as appropriate,
to carry out its State improvement plan under this subpart;
and
‘‘(B) may award contracts and subgrants to other public
and private entities, including the lead agency under part
C, to carry out such plan.
‘‘(b) USE OF FUNDS FOR PROFESSIONAL DEVELOPMENT.—A State
educational agency that receives a grant under this subpart—
‘‘(1) shall use not less than 75 percent of the funds it
receives under the grant for any fiscal year—
‘‘(A) to ensure that there are sufficient regular edu-
cation, special education, and related services personnel
who have the skills and knowledge necessary to meet the
needs of children with disabilities and developmental goals
of young children; or
‘‘(B) to work with other States on common certification
criteria; or
‘‘(2) shall use not less than 50 percent of such funds for
such purposes, if the State demonstrates to the Secretary’s
satisfaction that it has the personnel described in paragraph
(1)(A).
‘‘(c) GRANTS TO OUTLYING AREAS.—Public Law 95–134, permit-
ting the consolidation of grants to the outlying areas, shall not
apply to funds received under this subpart.
‘‘SEC. 655. MINIMUM STATE GRANT AMOUNTS.
‘‘(a) IN GENERAL.—The Secretary shall make a grant to each
State educational agency whose application the Secretary has
selected for funding under this subpart in an amount for each
fiscal year that is—
‘‘(1) not less than $500,000, nor more than $2,000,000,
in the case of the 50 States, the District of Columbia, and
the Commonwealth of Puerto Rico; and
‘‘(2) not less than $80,000, in the case of an outlying area.
‘‘(b) INFLATION ADJUSTMENT.—Beginning with fiscal year 1999,
the Secretary may increase the maximum amount described in
subsection (a)(1) to account for inflation.
‘‘(c) FACTORS.—The Secretary shall set the amount of each
grant under subsection (a) after considering—
‘‘(1) the amount of funds available for making the grants;
‘‘(2) the relative population of the State or outlying
area; and
‘‘(3) the types of activities proposed by the State or outlying
area.
‘‘SEC. 656. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out this
subpart such sums as may be necessary for each of the fiscal
years 1998 through 2002.
H. R. 5—94
‘‘Subpart 
2—Coordinated 
Research, 
Personnel
Preparation, Technical Assistance, Support, and
Dissemination of Information
‘‘SEC. 661. ADMINISTRATIVE PROVISIONS.
‘‘(a) COMPREHENSIVE PLAN.—
‘‘(1) IN GENERAL.—The Secretary shall develop and imple-
ment a comprehensive plan for activities carried out under
this subpart in order to enhance the provision of educational,
related, transitional, and early intervention services to children
with disabilities under parts B and C. The plan shall include
mechanisms to address educational, related services, transi-
tional, and early intervention needs identified by State
educational agencies in applications submitted for State pro-
gram improvement grants under subpart 1.
‘‘(2) PARTICIPANTS IN PLAN DEVELOPMENT.—In developing
the plan described in paragraph (1), the Secretary shall
consult with—
‘‘(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 Disability,
and national organizations with an interest in, and exper-
tise in, providing services to children with disabilities and
their families.
‘‘(3) PUBLIC
COMMENT.—The Secretary shall take public
comment on the plan.
‘‘(4) DISTRIBUTION OF FUNDS.—In implementing the plan,
the Secretary shall, to the extent appropriate, ensure that
funds are awarded to recipients under this subpart to carry
out activities that benefit, directly or indirectly, children with
disabilities of all ages.
‘‘(5) REPORTS TO CONGRESS.—The Secretary shall periodi-
cally report to the Congress on the Secretary’s activities under
this subsection, including an initial report not later than the
date that is 18 months after the date of the enactment of
the Individuals with Disabilities Education Act Amendments
of 1997.
‘‘(b) ELIGIBLE APPLICANTS.—
‘‘(1) IN GENERAL.—Except as otherwise provided in this
subpart, the following entities are eligible to apply for a grant,
contract, or cooperative agreement under this subpart:
‘‘(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 a tribal organization (as defined
under section 4 of the Indian Self-Determination and Edu-
cation Assistance Act).
H. R. 5—95
‘‘(H) A for-profit organization, if the Secretary finds
it appropriate in light of the purposes of a particular com-
petition for a grant, contract, or cooperative agreement
under this subpart.
‘‘(2) SPECIAL RULE.—The Secretary may limit the entities
eligible for an award of a grant, contract, or cooperative agree-
ment to one or more categories of eligible entities described
in paragraph (1).
‘‘(c) USE OF FUNDS BY SECRETARY.—Notwithstanding any other
provision of law, and in addition to any authority granted the
Secretary under chapter 1 or chapter 2, the Secretary may use
up to 20 percent of the funds available under either chapter 1
or chapter 2 for any fiscal year to carry out any activity, or combina-
tion of activities, subject to such conditions as the Secretary
determines are appropriate effectively to carry out the purposes
of such chapters, that—
‘‘(1) is consistent with the purposes of chapter 1, chapter
2, or both; and
‘‘(2) involves—
‘‘(A) research;
‘‘(B) personnel preparation;
‘‘(C) parent training and information;
‘‘(D) technical assistance and dissemination;
‘‘(E) technology development, demonstration, and utili-
zation; or
‘‘(F) media services.
‘‘(d) SPECIAL POPULATIONS.—
‘‘(1) APPLICATION REQUIREMENT.—In making an award of
a grant, contract, or cooperative agreement under this subpart,
the Secretary shall, as appropriate, require an applicant to
demonstrate how the applicant will address the needs of chil-
dren with disabilities from minority backgrounds.
‘‘(2) OUTREACH AND TECHNICAL ASSISTANCE.—
‘‘(A) REQUIREMENT.—Notwithstanding any other provi-
sion of this Act, the Secretary shall ensure that at least
one percent of the total amount of funds appropriated
to carry out this subpart is used for either or both of
the following activities:
‘‘(i) To provide 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 institu-
tions in activities under this subpart.
‘‘(ii) To enable 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.
‘‘(B) RESERVATION
OF
FUNDS.—The Secretary may
reserve funds appropriated under this subpart to satisfy
the requirement of subparagraph (A).
‘‘(e) PRIORITIES.—
‘‘(1) IN GENERAL.—Except as otherwise explicitly authorized
in this subpart, the Secretary shall ensure that a grant, con-
tract, or cooperative agreement under chapter 1 or 2 is awarded
only—