II 
May 21, 2004 
Ordered to be printed as passed 
In the Senate of the United States, 
May 13, 2004. 
Resolved, That the bill from the House of Representa-
tives (H.R. 1350) entitled ‘‘An Act to reauthorize the Individ-
uals with Disabilities Education Act, and for other pur-
poses.’’, do pass with the following 
AMENDMENT: 
Strike out all after the enacting clause and insert: 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Individuals with Dis-
abilities Education Improvement Act of 2004’’. 
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SEC. 2. ORGANIZATION OF THE ACT. 
This Act is organized into the following titles: 
TITLE I—AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES 
EDUCATION ACT 
TITLE II—AMENDMENTS TO THE REHABILITATION ACT OF 1973 
TITLE III—NATIONAL CENTER FOR SPECIAL EDUCATION 
RESEARCH 
TITLE IV—COMMISSION ON UNIVERSAL DESIGN AND THE 
ACCESSIBILITY OF CURRICULUM AND INSTRUCTIONAL MATERIALS 
TITLE V—MISCELLANEOUS 
TITLE I—AMENDMENTS TO THE 
INDIVIDUALS WITH DISABIL-
ITIES EDUCATION ACT 
SEC. 101. AMENDMENTS TO THE INDIVIDUALS WITH DIS-
ABILITIES EDUCATION ACT. 
Parts A through D of the Individuals with Disabilities 
Education Act (20 U.S.C. 1400 et seq.) are amended to read 
as follows: 
‘‘PART A—GENERAL PROVISIONS 
‘‘SEC. 601. SHORT TITLE; TABLE OF CONTENTS; FINDINGS; 
PURPOSES. 
‘‘(a) SHORT TITLE.—This Act may be cited as the ‘In-
dividuals with Disabilities Education Act’. 
‘‘(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
‘‘PART A—GENERAL PROVISIONS 
‘‘Sec. 601. Short title; table of contents; findings; purposes. 
‘‘Sec. 602. Definitions. 
‘‘Sec. 603. Office of Special Education Programs. 
‘‘Sec. 604. Abrogation of State sovereign immunity. 
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‘‘Sec. 605. Acquisition of equipment; construction or alteration of facilities. 
‘‘Sec. 606. Employment of individuals with disabilities. 
‘‘Sec. 607. Requirements for prescribing regulations. 
‘‘Sec. 608. State administration. 
‘‘Sec. 609. Paperwork reduction. 
‘‘Sec. 610. Freely associated States. 
‘‘PART B—ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH 
DISABILITIES 
‘‘Sec. 611. Authorization; allotment; use of funds; authorization of appro-
priations. 
‘‘Sec. 612. State eligibility. 
‘‘Sec. 613. Local educational agency eligibility. 
‘‘Sec. 614. Evaluations, eligibility determinations, individualized education 
programs, and educational placements. 
‘‘Sec. 615. Procedural safeguards. 
‘‘Sec. 616. Monitoring, technical assistance, and enforcement. 
‘‘Sec. 617. Administration. 
‘‘Sec. 618. Program information. 
‘‘Sec. 619. Preschool grants. 
‘‘PART C—INFANTS AND TODDLERS WITH DISABILITIES 
‘‘Sec. 631. Findings and policy. 
‘‘Sec. 632. Definitions. 
‘‘Sec. 633. General authority. 
‘‘Sec. 634. Eligibility. 
‘‘Sec. 635. Requirements for statewide system. 
‘‘Sec. 636. Individualized family service plan. 
‘‘Sec. 637. State application and assurances. 
‘‘Sec. 638. Uses of funds. 
‘‘Sec. 639. Procedural safeguards. 
‘‘Sec. 640. Payor of last resort. 
‘‘Sec. 641. State Interagency Coordinating Council. 
‘‘Sec. 642. Federal administration. 
‘‘Sec. 643. Allocation of funds. 
‘‘Sec. 644. Authorization of appropriations. 
‘‘PART D—NATIONAL ACTIVITIES TO IMPROVE EDUCATION OF CHILDREN WITH 
DISABILITIES 
‘‘Sec. 650. Findings. 
‘‘SUBPART 1—STATE PERSONNEL PREPARATION AND PROFESSIONAL 
DEVELOPMENT GRANTS 
‘‘Sec. 651. Purpose; definition; program authority. 
‘‘Sec. 652. Eligibility and collaborative process. 
‘‘Sec. 653. Applications. 
‘‘Sec. 654. Use of funds. 
‘‘Sec. 655. Authorization of appropriations. 
‘‘SUBPART 2—SCIENTIFICALLY BASED RESEARCH, TECHNICAL ASSISTANCE, 
MODEL DEMONSTRATION PROJECTS, AND DISSEMINATION OF INFORMATION 
‘‘Sec. 660. Purpose. 
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‘‘Sec. 661. Administrative provisions. 
‘‘Sec. 662. Research coordination to improve results for children with dis-
abilities. 
‘‘Sec. 663. Technical assistance, demonstration projects, dissemination of in-
formation, and implementation of scientifically based re-
search. 
‘‘Sec. 664. Personnel development to improve services and results for children 
with disabilities. 
‘‘Sec. 665. Studies and evaluations. 
‘‘SUBPART 3—SUPPORTS TO IMPROVE RESULTS FOR CHILDREN WITH 
DISABILITIES 
‘‘Sec. 670. Purposes. 
‘‘Sec. 671. Parent training and information centers. 
‘‘Sec. 672. Community parent resource centers. 
‘‘Sec. 673. Technical assistance for parent training and information centers. 
‘‘Sec. 674. Technology development, demonstration, and utilization; and 
media services. 
‘‘Sec. 675. Accessibility of instructional materials. 
‘‘Sec. 676. Authorization of appropriations. 
‘‘SUBPART 4—INTERIM ALTERNATIVE EDUCATIONAL SETTINGS, BEHAVIORAL 
SUPPORTS, AND WHOLE SCHOOL INTERVENTIONS 
‘‘Sec. 681. Purpose. 
‘‘Sec. 682. Definition of eligible entity. 
‘‘Sec. 683. Program authorized. 
‘‘Sec. 684. Program evaluations. 
‘‘Sec. 685. Authorization of appropriations. 
‘‘(c) FINDINGS.—Congress finds the following: 
‘‘(1) Disability is a natural part of the human 
experience and in no way diminishes the right of in-
dividuals to participate in or contribute to society. 
Improving educational results for children with dis-
abilities is an essential element of our national policy 
of ensuring equality of opportunity, full participa-
tion, independent living, and economic self-sufficiency 
for individuals with disabilities. 
‘‘(2) Before the date of the enactment of the Edu-
cation for All Handicapped Children Act of 1975 
(Public Law 94–142), the educational needs of mil-
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lions of children with disabilities were not being fully 
met because— 
‘‘(A) the children did not receive appro-
priate educational services; 
‘‘(B) the children were excluded entirely 
from the public school system and from being 
educated with their peers; 
‘‘(C) undiagnosed disabilities prevented the 
children from having a successful educational ex-
perience; or 
‘‘(D) a lack of adequate resources within the 
public school system forced families to find serv-
ices outside the public school system. 
‘‘(3) Since the enactment and implementation of 
the Education for All Handicapped Children Act of 
1975, this Act has been successful in ensuring chil-
dren with disabilities and the families of such chil-
dren access to a free appropriate public education 
and in improving educational results for children 
with disabilities. 
‘‘(4) However, the implementation of this Act 
has been impeded by low expectations, and an insuffi-
cient focus on applying replicable research on proven 
methods of teaching and learning for children with 
disabilities. 
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‘‘(5) Over 25 years of research and experience 
has demonstrated that the education of children with 
disabilities can be made more effective by— 
‘‘(A) having high expectations for such chil-
dren and ensuring their access to the general 
education curriculum in the regular classroom to 
the maximum extent possible in order to— 
‘‘(i) meet developmental goals and, to 
the maximum extent possible, the chal-
lenging expectations that have been estab-
lished for all children; and 
‘‘(ii) be prepared to lead productive 
and independent adult lives, to the max-
imum extent possible; 
‘‘(B) strengthening the role and responsi-
bility of parents and ensuring that families of 
such children have meaningful opportunities to 
participate in the education of their children at 
school and at home; 
‘‘(C) coordinating this Act with other local, 
educational service agency, State, and Federal 
school improvement efforts, including improve-
ment efforts under the Elementary and Sec-
ondary Education Act of 1965, in order to en-
sure that such children benefit from such efforts 
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and that special education can become a service 
for such children rather than a place where they 
are sent; 
‘‘(D) providing appropriate special edu-
cation and related services, and aids and sup-
ports in the regular classroom, to such children, 
whenever appropriate; 
‘‘(E) supporting high-quality, intensive 
preservice preparation and professional develop-
ment for all personnel who work with children 
with disabilities in order to ensure that such per-
sonnel have the skills and knowledge necessary to 
improve the academic achievement and func-
tional performance of children with disabilities, 
including the use of scientifically based instruc-
tional practices, to the maximum extent possible; 
‘‘(F) providing incentives for whole-school 
approaches, scientifically based early reading 
programs, positive behavioral interventions and 
supports, and prereferral interventions to reduce 
the need to label children as disabled in order to 
address their learning and behavioral needs; 
‘‘(G) focusing resources on teaching and 
learning while reducing paperwork and require-
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ments that do not assist in improving edu-
cational results; and 
‘‘(H) supporting the development and use of 
technology, including assistive technology devices 
and assistive technology services, to maximize 
accessibility for children with disabilities. 
‘‘(6) While States, local educational agencies, 
and educational service agencies are primarily re-
sponsible for providing an education for all children 
with disabilities, it is in the national interest that the 
Federal Government have a supporting role in assist-
ing State and local efforts to educate children with 
disabilities in order to improve results for such chil-
dren and to ensure equal protection of the law. 
‘‘(7) A more equitable allocation of resources is 
essential for the Federal Government to meet its re-
sponsibility to provide an equal educational oppor-
tunity for all individuals. 
‘‘(8) Parents and schools should be given ex-
panded opportunities to resolve their disagreements in 
positive and constructive ways. 
‘‘(9) Teachers, schools, local educational agencies, 
and States should be relieved of irrelevant and unnec-
essary paperwork burdens that do not lead to im-
proved educational outcomes. 
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‘‘(10)(A) The Federal Government must be re-
sponsive to the growing needs of an increasingly more 
diverse society. 
‘‘(B) America’s ethnic profile is rapidly chang-
ing. In the year 2000, 1 of every 3 persons in the 
United States was a member of a minority group or 
was limited English proficient. 
‘‘(C) Minority children comprise an increasing 
percentage of public school students. 
‘‘(D) With such changing demographics, recruit-
ment efforts for special education personnel should 
focus on increasing the participation of minorities in 
the teaching profession. 
‘‘(11)(A) The limited English proficient popu-
lation is the fastest growing in our Nation, and the 
growth is occurring in many parts of our Nation. 
‘‘(B) Studies have documented apparent discrep-
ancies in the levels of referral and placement of lim-
ited English proficient children in special education. 
‘‘(C) This poses a special challenge for special 
education in the referral of, assessment of, and serv-
ices for, our Nation’s students from non-English lan-
guage backgrounds. 
‘‘(12)(A) Greater efforts are needed to prevent the 
intensification of problems connected with mislabeling 
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and high dropout rates among minority children with 
disabilities. 
‘‘(B) More minority children continue to be 
served in special education than would be expected 
from the percentage of minority students in the gen-
eral school population. 
‘‘(C) African-American children are identified as 
having mental retardation and emotional disturbance 
at rates greater than their white counterparts. 
‘‘(D) In the 1998–1999 school year, African- 
American children represented just 14.8 percent of the 
population aged 6 through 21, but comprised 20.2 
percent of all children with disabilities. 
‘‘(E) Studies have found that schools with pre-
dominately Caucasian students and teachers have 
placed disproportionately high numbers of their mi-
nority students into special education. 
‘‘(13)(A) As the number of minority students in 
special education increases, the number of minority 
teachers and related services personnel produced in 
colleges and universities continues to decrease. 
‘‘(B) The opportunity for minority individuals, 
organizations, and Historically Black Colleges and 
Universities to participate fully in awards for grants 
and contracts, boards of organizations receiving funds 
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under this Act, and peer review panels, and in the 
training of professionals in the area of special edu-
cation is essential if we are to obtain greater success 
in the education of minority children with disabil-
ities. 
‘‘(14) As the graduation rates for children with 
disabilities continue to climb, providing effective 
transition services to promote successful post-school 
employment or education is an important measure of 
accountability for children with disabilities. 
‘‘(d) PURPOSES.—The purposes of this title are— 
‘‘(1)(A) to ensure that all children with disabil-
ities have available to them a free appropriate public 
education that emphasizes special education and re-
lated services designed to meet their unique needs and 
prepare them for employment, further education, and 
independent living; 
‘‘(B) to ensure that the rights of children with 
disabilities and parents of such children are protected; 
and 
‘‘(C) to assist States, localities, educational serv-
ice agencies, and Federal agencies to provide for the 
education of all children with disabilities; 
‘‘(2) to assist States in the implementation of a 
Statewide, 
coordinated, 
multidisciplinary, 
inter-
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agency system of early intervention services for in-
fants and toddlers with disabilities and their families; 
‘‘(3) to ensure that educators and parents have 
the necessary tools to improve educational results for 
children with disabilities by supporting systemic- 
change activities; coordinated research and personnel 
preparation; coordinated technical assistance, dis-
semination, and support; and technology development 
and media services; and 
‘‘(4) to assess, and ensure the effectiveness of, ef-
forts to educate children with disabilities. 
‘‘SEC. 602. DEFINITIONS. 
‘‘Except as otherwise provided, as used in this Act: 
‘‘(1) ASSISTIVE TECHNOLOGY DEVICE.—The term 
‘assistive technology device’ means any item, piece of 
equipment, or product system, whether acquired com-
mercially off the shelf, modified, or customized, that 
is used to increase, maintain, or improve functional 
capabilities of a child with a disability. The term 
does not include a medical device that is surgically 
implanted, or the repalcement of such device. 
‘‘(2) ASSISTIVE
TECHNOLOGY
SERVICE.—The 
term ‘assistive technology service’ means any service 
that directly assists a child with a disability in the 
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selection, acquisition, or use of an assistive technology 
device. Such term includes— 
‘‘(A) the evaluation of the needs of such 
child, including a functional evaluation of the 
child in the child’s customary environment; 
‘‘(B) purchasing, leasing, or otherwise pro-
viding for the acquisition of assistive technology 
devices by such child; 
‘‘(C) selecting, designing, fitting, custom-
izing, adapting, applying, maintaining, repair-
ing, or replacing of assistive technology devices; 
‘‘(D) coordinating and using other thera-
pies, interventions, or services with assistive 
technology devices, such as those associated with 
existing education and rehabilitation plans and 
programs; 
‘‘(E) training or technical assistance for 
such child, or, where appropriate, the family of 
such child; and 
‘‘(F) training or technical assistance for 
professionals (including individuals providing 
education and rehabilitation services), employ-
ers, or other individuals who provide services to, 
employ, or are otherwise substantially involved 
in the major life functions of such child. 
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‘‘(3) CHILD WITH A DISABILITY.— 
‘‘(A) IN GENERAL.—The term ‘child with a 
disability’ means a child— 
‘‘(i) with mental retardation, hearing 
impairments (including deafness), speech or 
language impairments, visual impairments 
(including blindness), serious emotional dis-
turbance (hereinafter referred to as ‘emo-
tional disturbance’), orthopedic impair-
ments, autism, traumatic brain injury, 
other health impairments, or specific learn-
ing disabilities; and 
‘‘(ii) who, by reason thereof, needs spe-
cial education and related services. 
‘‘(B) CHILD AGED 3 THROUGH 9.—The term 
‘child with a disability’ for a child aged 3 
through 9 (or any subset of that age range, in-
cluding ages 3 through 5), may, at the discretion 
of the State and the local educational agency, in-
clude a child— 
‘‘(i) experiencing developmental delays, 
as defined by the State and as measured by 
appropriate diagnostic instruments and 
procedures, in 1 or more of the following 
areas: physical development, cognitive devel-
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opment, communication development, social 
or emotional development, or adaptive de-
velopment; and 
‘‘(ii) who, by reason thereof, needs spe-
cial education and related services. 
‘‘(4) CORE ACADEMIC SUBJECT.—The term ‘core 
academic subject’ has the meaning given the term in 
section 9101(11) of the Elementary and Secondary 
Education Act of 1965. 
‘‘(5) EDUCATIONAL SERVICE AGENCY.—The term 
‘educational service agency’— 
‘‘(A) means a regional public multiservice 
agency— 
‘‘(i) authorized by State law to de-
velop, manage, and provide services or pro-
grams to local educational agencies; and 
‘‘(ii) recognized as an administrative 
agency for purposes of the provision of spe-
cial education and related services provided 
within public elementary schools and sec-
ondary schools of the State; and 
‘‘(B) includes any other public institution 
or agency having administrative control and di-
rection over a public elementary school or sec-
ondary school. 
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‘‘(6) ELEMENTARY SCHOOL.—The term ‘elemen-
tary school’ means a nonprofit institutional day or 
residential school that provides elementary education, 
as determined under State law. 
‘‘(7) EQUIPMENT.—The term ‘equipment’ in-
cludes— 
‘‘(A) machinery, utilities, and built-in 
equipment, and any necessary enclosures or 
structures to house such machinery, utilities, or 
equipment; and 
‘‘(B) all other items necessary for the func-
tioning of a particular facility as a facility for 
the provision of educational services, including 
items such as instructional equipment and nec-
essary furniture; printed, published, and audio- 
visual instructional materials; telecommuni-
cations, sensory, and other technological aids 
and devices; and books, periodicals, documents, 
and other related materials. 
‘‘(8) EXCESS
COSTS.—The term ‘excess costs’ 
means those costs that are in excess of the average an-
nual per-student expenditure in a local educational 
agency during the preceding school year for an ele-
mentary school or secondary school student, as may 
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be appropriate, and which shall be computed after de-
ducting— 
‘‘(A) amounts received— 
‘‘(i) under part B of this title; 
‘‘(ii) under part A of title I of the Ele-
mentary and Secondary Education Act of 
1965; and 
‘‘(iii) under parts A and B of title III 
of that Act; and 
‘‘(B) any State or local funds expended for 
programs that would qualify for assistance under 
any of those parts. 
‘‘(9) FREE APPROPRIATE PUBLIC EDUCATION.— 
The term ‘free appropriate public education’ means 
special education and related services that— 
‘‘(A) have been provided at public expense, 
under public supervision and direction, and 
without charge; 
‘‘(B) meet the standards of the State edu-
cational agency; 
‘‘(C) include an appropriate preschool, ele-
mentary school, or secondary school education in 
the State involved; and 
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‘‘(D) are provided in conformity with the 
individualized 
education 
program 
required 
under section 614(d). 
‘‘(10) HIGHLY
QUALIFIED.—The term ‘highly 
qualified’ means the following: 
‘‘(A) ALL
SPECIAL
EDUCATION
TEACH-
ERS.—When used with respect to any public ele-
mentary school or secondary school special edu-
cation teacher teaching in a State, means that 
the teacher holds at least a bachelor’s degree and 
that— 
‘‘(i) the teacher has obtained full State 
certification as a special education teacher 
through a State-approved special education 
teacher preparation program (including 
certification obtained through alternative 
routes to certification) or other comparably 
rigorous methods, or passed the State teach-
er special education licensing examination, 
and holds a license to teach in the State as 
a special education teacher, except that 
when used
with respect to any teacher 
teaching in a public charter school, the term
means that the teacher meets the require-
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ments set forth in the State’s public charter 
school law; 
‘‘(ii) the teacher has not had certifi-
cation or licensure requirements waived on 
an emergency, temporary, or provisional 
basis; and 
‘‘(iii) the teacher demonstrates knowl-
edge of special education and the teaching 
skills necessary to teach children with dis-
abilities. 
‘‘(B) NEW ELEMENTARY SCHOOL SPECIAL 
EDUCATION TEACHERS.—When used with respect 
to a special education elementary school teacher 
who is new to the profession, means that the 
teacher demonstrated, by passing a rigorous 
State test, subject knowledge and teaching skills 
in reading, writing, mathematics, and other 
areas of the basic elementary school curriculum 
(which may consist of passing a State-required 
certification or licensing test or tests in reading, 
writing, mathematics, and other areas of the 
basic elementary school curriculum). 
‘‘(C) NEW MIDDLE SCHOOL AND SECONDARY 
SCHOOL SPECIAL EDUCATION TEACHERS.—When 
used with respect to a special education middle 
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school or secondary school teacher who is new to 
the profession, means that the teacher has dem-
onstrated a high level of competency in each of 
the academic subjects in which the teacher teach-
es by— 
‘‘(i) passing a rigorous State academic 
subject test in each of the academic subjects 
in which the teacher teaches (which may 
consist of a passing level of performance on 
a State-required certification or licensing 
test or tests in each of the academic subjects 
in which the teacher teaches); or 
‘‘(ii) successful completion, in each of 
the academic subjects in which the teacher 
teaches, of an academic major, graduate de-
gree, coursework equivalent to an under-
graduate academic major, or advanced cer-
tification or credentialing. 
‘‘(D) VETERAN SPECIAL EDUCATION TEACH-
ERS.—When used with respect to an elementary 
school, middle school, or secondary school special 
education teacher who is not new to the profes-
sion, means that the teacher has— 
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‘‘(i) met the applicable standard in 
subparagraph (B) or (C), which includes an 
option for a test; or 
‘‘(ii) has demonstrated competence in 
all the academic subjects in which the teach-
er teaches based on a high objective uniform 
State standard of evaluation for special 
education teachers that— 
‘‘(I) is set by the State for both 
grade-appropriate 
academic 
subject 
matter knowledge and special edu-
cation teaching skills; 
‘‘(II) is aligned with challenging 
State academic content and student 
academic achievement standards and 
developed in consultation with special 
education teachers, core content spe-
cialists, 
teachers, 
principals, 
and 
school administrators; 
‘‘(III) provides objective, coherent 
information about the teachers’ attain-
ment of knowledge of core content 
knowledge in the academic subjects in 
which a teacher teaches; 
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‘‘(IV) is applied uniformly to all 
special education teachers who teach in 
the same academic subject and the 
same grade level throughout the State; 
‘‘(V) takes into consideration, but 
is not based primarily on, the time the 
teacher has been teaching in the aca-
demic subject; 
‘‘(VI) is made available to the 
public on request; and 
‘‘(VII) may involve multiple objec-
tive measures of teacher competency. 
‘‘(E) TEACHERS PROVIDING CONSULTATIVE 
SERVICES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraphs (B) through (D), when used 
with respect to a special education teacher 
who provides only consultative services to a 
highly qualified regular education teacher 
(as the term highly qualified is defined in 
section 9101(23) of the Elementary and 
Secondary Education Act of 1965), means 
that the teacher meets the requirements of 
subparagraph (A). 
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‘‘(ii) CONSULTATIVE
SERVICES.—As 
used in clause (i), the term ‘consultative 
services’ means services that adjust the 
learning environment, modify instructional 
methods, adapt curricula, use positive be-
havior supports and interventions, and se-
lect and implement appropriate accom-
modations to meet the needs of individual 
children. 
‘‘(F) EXCEPTION.—Notwithstanding sub-
paragraphs (B) through (D), when used with re-
spect to a special education teacher who teaches 
more than 1 subject, primarily to middle school 
and secondary school-aged children with signifi-
cant cognitive disabilities, means that the teach-
er has demonstrated subject knowledge and teach-
ing skills in reading, mathematics, and other 
areas of the basic elementary school curriculum 
by— 
‘‘(i) passing a rigorous State test 
(which may consist of passing a State-re-
quired certification or licensing test or tests 
in those areas); or 
‘‘(ii) demonstrating competency in all 
the academic subjects in which the teacher 
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teaches, based on a high objective uniform 
State standard as described in subpara-
graph (D)(ii). 
‘‘(11) INDIAN.—The term ‘Indian’ means an in-
dividual who is a member of an Indian tribe. 
‘‘(12) 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 corpora-
tion (as defined in or established under the Alaska 
Native Claims Settlement Act). 
‘‘(13) INDIVIDUALIZED EDUCATION PROGRAM.— 
The term ‘individualized education program’ or ‘IEP’ 
means a written statement for each child with a dis-
ability that is developed, reviewed, and revised in ac-
cordance with section 614(d). 
‘‘(14) INDIVIDUALIZED FAMILY SERVICE PLAN.— 
The term ‘individualized family service plan’ has the 
meaning given such term in section 636. 
‘‘(15) INFANT
OR
TODDLER
WITH
A
DIS-
ABILITY.—The term ‘infant or toddler with a dis-
ability’ has the meaning given such term in section 
632. 
‘‘(16) INSTITUTION
OF
HIGHER
EDUCATION.— 
The term ‘institution of higher education’— 
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‘‘(A) has the meaning given such term in 
section 101 (a) and (b) of the Higher Education 
Act of 1965; and 
‘‘(B) also includes any community college 
receiving funding from the Secretary of the Inte-
rior under the Tribally Controlled College or 
University Assistance Act of 1978. 
‘‘(17) LIMITED ENGLISH PROFICIENT.—The term 
‘limited English proficient’ has the meaning given the 
term in section 9101(25) of the Elementary and Sec-
ondary Education Act of 1965. 
‘‘(18) LOCAL EDUCATIONAL AGENCY.— 
‘‘(A) The term ‘local educational agency’ 
means a public board of education or other pub-
lic authority legally constituted within a State 
for either administrative control or direction of, 
or to perform a service function for, public ele-
mentary schools or secondary schools in a city, 
county, township, school district, or other polit-
ical subdivision of a State, or for such combina-
tion of school districts or counties as are recog-
nized in a State as an administrative agency for 
its public elementary schools or secondary 
schools. 
‘‘(B) The term includes— 
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‘‘(i) an educational service agency, as 
defined in paragraph (5); and 
‘‘(ii) any other public institution or 
agency having administrative control and 
direction of a public elementary school or 
secondary school. 
‘‘(C) The term includes an elementary 
school or secondary school funded by the Bureau 
of Indian Affairs, but only to the extent that 
such inclusion makes the school eligible for pro-
grams for which specific eligibility is not pro-
vided to the school in another provision of law 
and the school does not have a student popu-
lation that is smaller than the student popu-
lation of the local educational agency receiving 
assistance under this Act with the smallest stu-
dent population, except that the school shall not 
be subject to the jurisdiction of any State edu-
cational agency other than the Bureau of Indian 
Affairs. 
‘‘(19) NATIVE LANGUAGE.—The term ‘native lan-
guage’, when used with respect to an individual of 
limited English proficiency, means the language nor-
mally used by the individual, or in the case of a 
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child, the language normally used by the parents of 
the child. 
‘‘(20) NONPROFIT.—The term ‘nonprofit’, as ap-
plied to a school, agency, organization, or institution, 
means a school, agency, organization, or institution 
owned and operated by 1 or more nonprofit corpora-
tions or associations no part of the net earnings of 
which inures, or may lawfully inure, to the benefit of 
any private shareholder or individual. 
‘‘(21) OUTLYING
AREA.—The term ‘outlying 
area’ means the United States Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the 
Northern Mariana Islands. 
‘‘(22) PARENT.— 
‘‘(A) IN GENERAL.—The term ‘parent’— 
‘‘(i) means— 
‘‘(I) a natural or adoptive parent 
of a child; 
‘‘(II) a guardian (but not the 
State if the child is a ward of the 
State); 
‘‘(III) an individual acting in the 
place of a natural or adoptive parent, 
including a grandparent, stepparent, 
or other relative with whom the child 
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lives or an individual who is legally 
responsible for the child’s welfare; or 
‘‘(IV) except as used in sections 
615(b)(2) and 639(a)(5), an individual 
assigned under either of those sections 
to be a surrogate parent; and 
‘‘(ii) in the case of a homeless child 
who is not in the physical custody of a par-
ent or guardian, includes a related or unre-
lated adult with whom the child is living or 
other adult jointly designated by the child 
and the local educational agency liaison for 
homeless children and youths (designated 
pursuant to section 722(g)(1)(J)(ii) of the 
McKinney-Vento Homeless Assistance Act), 
in addition to other individuals permitted 
by law. 
‘‘(B) FOSTER PARENT.—Unless State law 
prohibits a foster parent from acting as a par-
ent, the term ‘parent’ includes a foster parent 
if— 
‘‘(i) the natural or adoptive parents’ 
authority to make educational decisions on 
the child’s behalf has been extinguished 
under State law; and 
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‘‘(ii) the foster parent— 
‘‘(I) has an ongoing, long-term 
parental relationship with the child; 
‘‘(II) is willing to make the edu-
cational decisions required of parents 
under this Act; and 
‘‘(III) has no interest that would 
conflict with the interests of the child. 
‘‘(23) PARENT ORGANIZATION.—The term ‘par-
ent organization’ has the meaning given such term in 
section 671(g). 
‘‘(24) PARENT TRAINING AND INFORMATION CEN-
TER.—The term ‘parent training and information 
center’ means a center assisted under section 671 or 
672. 
‘‘(25) RELATED
SERVICES.—The term ‘related 
services’ means transportation, and such develop-
mental, corrective, and other supportive services (in-
cluding speech-language pathology and audiology 
services, interpreting services, psychological services, 
physical and occupational therapy, recreation, in-
cluding therapeutic recreation, social work services, 
school health services, counseling services, including 
rehabilitation counseling, orientation and mobility 
services, travel training instruction, and medical 
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services, except that such medical services shall be for 
diagnostic and evaluation purposes only) as may be 
required to assist a child with a disability to benefit 
from special education, and includes the early identi-
fication and assessment of disabling conditions in 
children. The term does not include a medical device 
that is surgically implanted, or the replacement of 
such device. 
‘‘(26) SECONDARY
SCHOOL.—The term ‘sec-
ondary school’ means a nonprofit institutional day or 
residential school that provides secondary education, 
as determined under State law, except that it does not 
include any education beyond grade 12. 
‘‘(27) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Education. 
‘‘(28) SPECIAL EDUCATION.—The term ‘special 
education’ means specially designed instruction, at no 
cost to parents, to meet the unique needs of a child 
with a disability, including— 
‘‘(A) instruction conducted in the classroom, 
in the home, in hospitals and institutions, and 
in other settings; and 
‘‘(B) instruction in physical education. 
‘‘(29) SPECIFIC LEARNING DISABILITY.— 
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‘‘(A) IN
GENERAL.—The term ‘specific 
learning disability’ means a disorder in 1 or 
more of the basic psychological processes involved 
in understanding or in using language, spoken 
or written, which disorder may manifest itself in 
the imperfect ability to listen, think, speak, read, 
write, spell, or do mathematical calculations. 
‘‘(B) DISORDERS
INCLUDED.—Such term 
includes such conditions as perceptual disabil-
ities, brain injury, minimal brain dysfunction, 
dyslexia, and developmental aphasia. 
‘‘(C) DISORDERS
NOT
INCLUDED.—Such 
term 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. 
‘‘(30) STATE.—The term ‘State’ means each of 
the 50 States, the District of Columbia, the Common-
wealth of Puerto Rico, and each of the outlying areas. 
‘‘(31) STATE EDUCATIONAL AGENCY.—The term 
‘State educational agency’ means the State board of 
education or other agency or officer primarily respon-
sible for the State supervision of public elementary 
schools and secondary schools, or, if there is no such 
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officer or agency, an officer or agency designated by 
the Governor or by State law. 
‘‘(32) SUPPLEMENTARY AIDS AND SERVICES.— 
The term ‘supplementary aids and services’ means 
aids, services, and other supports that are provided in 
regular education classes or other education-related 
settings to enable children with disabilities to be edu-
cated with nondisabled children to the maximum ex-
tent 
appropriate 
in 
accordance 
with 
section 
612(a)(5). 
‘‘(33) TRANSITION SERVICES.—The term ‘transi-
tion services’ means a coordinated set of activities for 
a child with a disability (as defined in paragraph 
(3)(A)) that— 
‘‘(A) is designed to be within a results-ori-
ented process, that is focused on improving the 
academic and functional achievement of the child 
with a disability to facilitate the child’s move-
ment from school to post-school activities, includ-
ing post-secondary education, vocational train-
ing, integrated employment (including supported 
employment), continuing and adult education, 
adult services, independent living, or community 
participation; 
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‘‘(B) is based on the individual child’s 
needs, taking into account the child’s strengths, 
preferences, and interests; and 
‘‘(C) includes instruction, related services, 
community experiences, the development of em-
ployment and other post-school adult living ob-
jectives, and, when appropriate, acquisition of 
daily living skills and functional vocational 
evaluation. 
‘‘(34) CHILD WITH A DISABILITY IN A MILITARY 
FAMILY.—The term ‘child with a disability in a mili-
tary family’ means a child with a disability who has 
a parent who is a member of the Armed Forces, in-
cluding a member of the National Guard or Reserves. 
‘‘(35) HOMELESS CHILDREN.—The term ‘home-
less children’ has the meaning given the term ‘home-
less children and youths’ in section 725 of the McKin-
ney-Vento Homeless Assistance Act. 
‘‘(36) WARD OF THE STATE.—The term ‘ward of 
the State’ means a child who, as defined by the State 
where the child resides, is a foster child, a ward of the 
State or is in the custody of a public child welfare 
agency. 
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‘‘SEC. 603. OFFICE OF SPECIAL EDUCATION PROGRAMS. 
‘‘(a) ESTABLISHMENT.—There shall be, within the Of-
fice of Special Education and Rehabilitative Services in the 
Department of Education, an Office of Special Education 
Programs, which shall be the principal agency in such De-
partment for administering and carrying out this Act and 
other programs and activities concerning the education of 
children with disabilities. 
‘‘(b) DIRECTOR.—The Office established under sub-
section (a) shall be headed by a Director who shall be se-
lected by the Secretary and shall report directly to the As-
sistant Secretary for Special Education and Rehabilitative 
Services. 
‘‘(c) VOLUNTARY AND UNCOMPENSATED SERVICES.— 
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. 604. ABROGATION OF STATE SOVEREIGN IMMUNITY. 
‘‘(a) IN GENERAL.—A State shall not be immune 
under the 11th amendment to the Constitution of the United 
States from suit in Federal court for a violation of this 
Act. 
‘‘(b) REMEDIES.—In a suit against a State for a viola-
tion of this Act, remedies (including remedies both at law 
and in equity) are available for such a violation to the same 
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extent as those remedies are available for such a violation 
in the suit against any public entity other than a State. 
‘‘(c) EFFECTIVE DATE.—Subsections (a) and (b) apply 
with respect to violations that occur in whole or part after 
the date of enactment of the Education of the Handicapped 
Act Amendments of 1990. 
‘‘SEC. 605. ACQUISITION OF EQUIPMENT; CONSTRUCTION 
OR ALTERATION OF FACILITIES. 
‘‘(a) IN GENERAL.—If the Secretary determines that 
a program authorized under this Act will be improved by 
permitting program funds to be used to acquire appropriate 
equipment, or to construct new facilities or alter existing 
facilities, the Secretary is authorized to allow the use of 
those funds for those purposes. 
‘‘(b) COMPLIANCE WITH CERTAIN REGULATIONS.— 
Any construction of new facilities or alteration of existing 
facilities under subsection (a) shall comply with the require-
ments of— 
‘‘(1) appendix A of part 36 of title 28, Code of 
Federal Regulations (commonly known as the ‘Ameri-
cans with Disabilities Accessibility Guidelines for 
Buildings and Facilities’); or 
‘‘(2) appendix A of subpart 101–19.6 of title 41, 
Code of Federal Regulations (commonly known as the 
‘Uniform Federal Accessibility Standards’). 
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‘‘SEC. 606. EMPLOYMENT OF INDIVIDUALS WITH DISABIL-
ITIES. 
‘‘The Secretary shall ensure that each recipient of as-
sistance under this Act makes positive efforts to employ and 
advance in employment qualified individuals with disabil-
ities in programs assisted under this Act. 
‘‘SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULA-
TIONS. 
‘‘(a) IN GENERAL.—In carrying out the provisions of 
this Act, the Secretary shall issue regulations under this 
Act only to the extent that such regulations are necessary 
to ensure that there is compliance with the specific require-
ments of this Act. 
‘‘(b) PROTECTIONS PROVIDED
TO CHILDREN.—The 
Secretary may not implement, or publish in final form, any 
regulation prescribed pursuant to this Act that— 
‘‘(1) violates or contradicts any provision of this 
Act; and 
‘‘(2) procedurally or substantively lessens the 
protections provided to children with disabilities 
under this Act, as embodied in regulations in effect 
on July 20, 1983 (particularly as such protections re-
lated to parental consent to initial evaluation or ini-
tial placement in special education, least restrictive 
environment, related services, timelines, attendance of 
evaluation personnel at individualized education pro-
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gram meetings, or qualifications of personnel), except 
to the extent that such regulation reflects the clear 
and unequivocal intent of the Congress in legislation. 
‘‘(c) PUBLIC COMMENT PERIOD.—The Secretary shall 
provide a public comment period of not more than 90 days 
on any regulation proposed under part B or part C of this 
Act on which an opportunity for public comment is other-
wise required by law. 
‘‘(d) POLICY LETTERS AND STATEMENTS.—The Sec-
retary may not issue policy letters or other statements (in-
cluding letters or statements regarding issues of national 
significance) that— 
‘‘(1) violate or contradict any provision of this 
Act; or 
‘‘(2) establish a rule that is required for compli-
ance with, and eligibility under, this Act without fol-
lowing the requirements of section 553 of title 5, 
United States Code. 
‘‘(e) EXPLANATION AND ASSURANCES.—Any written 
response by the Secretary under subsection (d) regarding 
a policy, question, or interpretation under part B of this 
Act shall include an explanation in the written response 
that— 
‘‘(1) such response is provided as informal guid-
ance and is not legally binding; 
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‘‘(2) when required, such response is issued in 
compliance with the requirements of section 553 of 
title 5, United States Code; and 
‘‘(3) such response represents the interpretation 
by the Department of Education of the applicable 
statutory or regulatory requirements in the context of 
the specific facts presented. 
‘‘(f) CORRESPONDENCE FROM DEPARTMENT OF EDU-
CATION DESCRIBING INTERPRETATIONS OF THIS ACT.— 
‘‘(1) IN GENERAL.—The Secretary shall, on a 
quarterly basis, publish in the Federal Register, and 
widely disseminate to interested entities through var-
ious additional forms of communication, a list of cor-
respondence from the Department of Education re-
ceived by individuals during the previous quarter 
that describes the interpretations of the Department of 
Education of this Act or the regulations implemented 
pursuant to this Act. 
‘‘(2) ADDITIONAL INFORMATION.—For each item 
of correspondence published in a list under paragraph 
(1), the Secretary shall— 
‘‘(A) identify the topic addressed by the cor-
respondence and shall include such other sum-
mary information as the Secretary determines to 
be appropriate; and 
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‘‘(B) ensure that all such correspondence is 
issued, where applicable, in compliance with the 
requirements of section 553 of title 5, United 
States Code. 
‘‘SEC. 608. STATE ADMINISTRATION. 
‘‘(a) RULEMAKING.—Each State that receives funds 
under this Act shall— 
‘‘(1) ensure that any State rules, regulations, 
and policies relating to this Act conform to the pur-
poses of this Act; and 
‘‘(2) identify in writing to its local educational 
agencies and the Secretary any such rule, regulation, 
or policy as a State-imposed requirement that is not 
required by this Act and Federal regulations. 
‘‘(b) SUPPORT AND FACILITATION.—State rules, regu-
lations, and policies under this Act shall support and facili-
tate local educational agency and school-level systemic re-
form designed to enable children with disabilities to meet 
the challenging State student academic achievement stand-
ards. 
‘‘SEC. 609. PAPERWORK REDUCTION. 
‘‘(a) REPORT TO CONGRESS.—The Comptroller Gen-
eral shall conduct a review of Federal, State, and local re-
quirements relating to the education of children with dis-
abilities to determine which requirements result in excessive 
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paperwork completion burdens for teachers, related services 
providers, and school administrators, and shall report to 
Congress not later than 18 months after the date of enact-
ment of the Individuals with Disabilities Education Im-
provement Act of 2003 regarding such review along with 
strategic proposals for reducing the paperwork burdens on 
teachers. 
‘‘(b) PAPERWORK REDUCTION DEMONSTRATION.— 
‘‘(1) PILOT PROGRAM.— 
‘‘(A) PURPOSE.—The purpose of this sub-
section is to provide an opportunity for States to 
identify ways to reduce paperwork burdens and 
other administrative duties that are directly as-
sociated with the requirements of this Act, in 
order to increase the time and resources available 
for instruction and other activities aimed at im-
proving educational and functional results for 
children with disabilities. 
‘‘(B) AUTHORIZATION.— 
‘‘(i) IN GENERAL.—In order to carry 
out the purpose of this subsection, the Sec-
retary is authorized to grant waivers of 
statutory requirements of, or regulatory re-
quirements relating to, this part for a pe-
riod of time not to exceed 4 years with re-
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spect to not more than 15 States based on 
proposals submitted by States to reduce ex-
cessive paperwork and noninstructional 
time burdens that do not assist in improv-
ing educational and functional results for 
children with disabilities. 
‘‘(ii) EXCEPTION.—The Secretary shall 
not waive any statutory requirements of, or 
regulatory requirements relating to, appli-
cable civil rights requirements. 
‘‘(iii) RULE OF CONSTRUCTION.—Noth-
ing in this subsection shall be construed 
to— 
‘‘(I) affect the right of a child 
with a disability to receive a free ap-
propriate public education under this 
part; and 
‘‘(II) permit a State or local edu-
cational agency to waive procedural 
safeguards under section 615. 
‘‘(C) PROPOSAL.— 
‘‘(i) IN GENERAL.—A State desiring to 
participate in the program under this sub-
section shall submit a proposal to the Sec-
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retary at such time and in such manner as 
the Secretary may reasonably require. 
‘‘(ii) CONTENT.—The proposal shall 
include— 
‘‘(I) a list of any statutory re-
quirements of, or regulatory require-
ments relating to, this part that the 
State desires the Secretary to waive or 
change, in whole or in part; and 
‘‘(II) a list of any State require-
ments that the State proposes to waive 
or change, in whole or in part, to 
carry out a waiver granted to the State 
by the Secretary. 
‘‘(D) TERMINATION OF WAIVER.—The Sec-
retary shall terminate a State’s waiver under 
this subsection if the Secretary determines that 
the State— 
‘‘(i) has failed to make satisfactory 
progress in meeting the indicators described 
in section 616; or 
‘‘(ii) has failed to appropriately imple-
ment its waiver. 
‘‘(2) REPORT.—Beginning 2 years after the date 
of enactment of the Individuals with Disabilities 
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Education Improvement Act of 2003, the Secretary 
shall include in the annual report to Congress sub-
mitted pursuant to section 426 of the Department of 
Education Organization Act information related to 
the effectiveness of waivers granted under paragraph 
(1), including any specific recommendations for 
broader implementation of such waivers, in— 
‘‘(A) reducing— 
‘‘(i) the paperwork burden on teachers, 
principals, 
administrators, 
and 
related 
service providers; and 
‘‘(ii) noninstructional time spent by 
teachers in complying with this part; 
‘‘(B) enhancing longer-term educational 
planning; 
‘‘(C) improving positive outcomes for chil-
dren with disabilities; 
‘‘(D) promoting collaboration between IEP 
Team members; and 
‘‘(E) ensuring satisfaction of family mem-
bers. 
‘‘SEC. 610. FREELY ASSOCIATED STATES. 
‘‘The Republic of the Marshall Islands, the Federated 
States of Micronesia, and the Republic of Palau shall con-
tinue to be eligible for competitive grants administered by 
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the Secretary under this Act to the extent that such grants 
continue to be available to States and local educational 
agencies under this Act. 
‘‘PART B—ASSISTANCE FOR EDUCATION OF ALL 
CHILDREN WITH DISABILITIES 
‘‘SEC. 611. AUTHORIZATION; ALLOTMENT; USE OF FUNDS; 
AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) GRANTS TO STATES.— 
‘‘(1) PURPOSE OF GRANTS.—The Secretary shall 
make grants to States and the outlying areas, and 
provide funds to the Secretary of the Interior, to as-
sist them to provide special education and related 
services to children with disabilities in accordance 
with this part. 
‘‘(2) 
MAXIMUM
AMOUNT.—The 
maximum 
amount available for awarding grants under this sec-
tion for any fiscal year is— 
‘‘(A) the total number of children with dis-
abilities in the 2002–2003 school year in the 
States who received special education and related 
services and who were— 
‘‘(i) aged 3 through 5, if the State was 
eligible for a grant under section 619; and 
‘‘(ii) aged 6 through 21; multiplied by 
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‘‘(B) 40 percent of the average per-pupil ex-
penditure in public elementary schools and sec-
ondary schools in the United States; adjusted by; 
‘‘(C) the rate of change in the sum of— 
‘‘(i) 85 percent of the change in the na-
tionwide total of the population described in 
subsection (d)(3)(A)(i)(II); and 
‘‘(ii) 15 percent of the change in the 
nationwide total of the population described 
in subsection (d)(3)(A)(i)(III). 
‘‘(b) OUTLYING AREAS
AND FREELY ASSOCIATED 
STATES.— 
‘‘(1) FUNDS RESERVED.—From the amount ap-
propriated for any fiscal year under subsection (i), 
the Secretary shall reserve not more than 1 percent, 
which shall be used— 
‘‘(A) to provide assistance to the outlying 
areas in accordance with their respective popu-
lations of individuals aged 3 through 21; and 
‘‘(B) to provide each freely associated State 
a grant in the amount that such freely associated 
State received for fiscal year 2003 under this 
part, but only if the freely associated State meets 
the applicable requirements of this part, as well 
as the requirements of section 611(b)(2)(C) as 
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such section was in effect on the day before the 
date of enactment of the Individuals with Dis-
abilities Education Improvement Act of 2004. 
‘‘(2) SPECIAL RULE.—The provisions of Public 
Law 95–134, permitting the consolidation of grants 
by the outlying areas, shall not apply to funds pro-
vided to the outlying areas or the freely associated 
States under this section. 
‘‘(3) DEFINITION.—As used in this subsection, 
the term ‘freely associated States’ means the Republic 
of the Marshall Islands, the Federated States of Mi-
cronesia, and the Republic of Palau. 
‘‘(c) SECRETARY
OF
THE
INTERIOR.—From the 
amount appropriated for any fiscal year under subsection 
(i), the Secretary shall reserve 1.226 percent to provide as-
sistance to the Secretary of the Interior in accordance with 
subsection (i). 
‘‘(d) ALLOCATIONS TO STATES.— 
‘‘(1) IN
GENERAL.—After reserving funds for 
studies and evaluations under section 665, and for 
payments to the outlying areas, the freely associated 
States, and the Secretary of the Interior under sub-
sections (b) and (c) for a fiscal year, the Secretary 
shall allocate the remaining amount among the States 
in accordance with this subsection. 
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‘‘(2) SPECIAL RULE FOR USE OF FISCAL YEAR 
1999 AMOUNT.—If a State received any funds under 
this section for fiscal year 1999 on the basis of chil-
dren aged 3 through 5, but does not make a free ap-
propriate public education available to all children 
with disabilities aged 3 through 5 in the State in any 
subsequent fiscal year, the Secretary shall compute the 
State’s amount for fiscal year 1999, solely for the 
purpose of calculating the State’s allocation in that 
subsequent year under paragraph (3) or (4), by sub-
tracting the amount allocated to the State for fiscal 
year 1999 on the basis of those children. 
‘‘(3) INCREASE IN FUNDS.—If the amount avail-
able for allocations to States under paragraph (1) for 
a fiscal year is equal to or greater than the amount 
allocated to the States under this paragraph for the 
preceding fiscal year, those allocations shall be cal-
culated as follows: 
‘‘(A) ALLOCATION OF INCREASE.— 
‘‘(i) IN GENERAL.—Except as provided 
in subparagraph (B), the Secretary shall al-
locate for the fiscal year— 
‘‘(I) to each State the amount the 
State received under this section for 
fiscal year 1999; 
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‘‘(II) 85 percent of any remaining 
funds to States on the basis of the 
States’ relative populations of children 
aged 3 through 21 who are of the same 
age as children with disabilities for 
whom the State ensures the avail-
ability of a free appropriate public 
education under this part; and 
‘‘(III) 15 percent of those remain-
ing funds to States on the basis of the 
States’ relative populations of children 
described in subclause (II) who are liv-
ing in poverty. 
‘‘(ii) DATA.—For the purpose of mak-
ing grants under this paragraph, the Sec-
retary shall use the most recent population 
data, including data on children living in 
poverty, that are available and satisfactory 
to the Secretary. 
‘‘(B) LIMITATIONS.—Notwithstanding sub-
paragraph (A), allocations under this paragraph 
shall be subject to the following: 
‘‘(i) PRECEDING YEAR ALLOCATION.— 
No State’s allocation shall be less than its 
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allocation under this section for the pre-
ceding fiscal year. 
‘‘(ii) MINIMUM.—No State’s allocation 
shall be less than the greatest of— 
‘‘(I) the sum of— 
‘‘(aa) the amount the State 
received under this section for fis-
cal year 1999; and 
‘‘(bb) 1⁄3 of 1 percent of the 
amount by which the amount ap-
propriated under subsection (i) 
for the fiscal year exceeds the 
amount appropriated for this sec-
tion for fiscal year 1999; 
‘‘(II) the sum of— 
‘‘(aa) the amount the State 
received under this section for the 
preceding fiscal year; and 
‘‘(bb) that amount multiplied 
by the percentage by which the in-
crease in the funds appropriated 
for this section from the preceding 
fiscal year exceeds 1.5 percent; or 
‘‘(III) the sum of— 
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‘‘(aa) the amount the State 
received under this section for the 
preceding fiscal year; and 
‘‘(bb) that amount multiplied 
by 90 percent of the percentage 
increase in the amount appro-
priated for this section from the 
preceding fiscal year. 
‘‘(iii) 
MAXIMUM.—Notwithstanding 
clause (ii), no State’s allocation under this 
paragraph shall exceed the sum of— 
‘‘(I) the amount the State received 
under this section for the preceding fis-
cal year; and 
‘‘(II) that amount multiplied by 
the sum of 1.5 percent and the percent-
age increase in the amount appro-
priated under this section from the 
preceding fiscal year. 
‘‘(C) RATABLE REDUCTION.—If the amount 
available for allocations under this paragraph is 
insufficient to pay those allocations in full, those 
allocations shall be ratably reduced, subject to 
subparagraph (B)(i). 
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‘‘(4) DECREASE IN FUNDS.—If the amount avail-
able for allocations to States under paragraph (1) for 
a fiscal year is less than the amount allocated to the 
States under this section for the preceding fiscal year, 
those allocations shall be calculated as follows: 
‘‘(A) AMOUNTS
GREATER
THAN
FISCAL 
YEAR 1999 ALLOCATIONS.—If the amount avail-
able for allocations is greater than the amount 
allocated to the States for fiscal year 1999, each 
State shall be allocated the sum of— 
‘‘(i) the amount the State received 
under this section for fiscal year 1999; and 
‘‘(ii) an amount that bears the same 
relation to any remaining funds as the in-
crease the State received under this section 
for the preceding fiscal year over fiscal year 
1999 bears to the total of all such increases 
for all States. 
‘‘(B) AMOUNTS EQUAL TO OR LESS THAN 
FISCAL YEAR 1999 ALLOCATIONS.— 
‘‘(i) IN
GENERAL.—If the amount 
available for allocations under this para-
graph is equal to or less than the amount 
allocated to the States for fiscal year 1999, 
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each State shall be allocated the amount the 
State received for fiscal year 1999. 
‘‘(ii) RATABLE
REDUCTION.—If the 
amount available for allocations under this 
paragraph is insufficient to make the allo-
cations described in clause (i), those alloca-
tions shall be ratably reduced. 
‘‘(e) STATE-LEVEL ACTIVITIES.— 
‘‘(1) STATE ADMINISTRATION.— 
‘‘(A) IN GENERAL.—For the purpose of ad-
ministering this part, including paragraph (3), 
section 619, and the coordination of activities 
under this part with, and providing technical 
assistance to, other programs that provide serv-
ices to children with disabilities— 
‘‘(i) each State may reserve not more 
than the maximum amount the State was 
eligible to reserve for State administration 
for fiscal year 2003 or $800,000 (adjusted 
by the cumulative rate of inflation since fis-
cal year 2003 as measured by the percent-
age increase, if any, in the Consumer Price 
Index For All Urban Consumers, published 
by the Bureau of Labor Statistics of the De-
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partment of Labor), whichever is greater; 
and 
‘‘(ii) each outlying area may reserve 
not more than 5 percent of the amount the 
outlying area receives under subsection (b) 
for any fiscal year or $35,000, whichever is 
greater. 
‘‘(B) PART C.—Funds reserved under sub-
paragraph (A) may be used for the administra-
tion of part C, if the State educational agency 
is the lead agency for the State under that part. 
‘‘(C) CERTIFICATION.—Prior to expenditure 
of funds under this paragraph, the State shall 
certify to the Secretary that the arrangements to 
establish responsibility for services pursuant to 
section 612(a)(12)(A) are current as of the date 
of submission of the certification. 
‘‘(2) OTHER STATE-LEVEL ACTIVITIES.— 
‘‘(A) STATE-LEVEL ACTIVITIES.— 
‘‘(i) IN GENERAL.—For the purpose of 
carrying out State-level activities, each 
State may reserve for each of the fiscal 
years 2004 and 2005, not more than 10 per-
cent of the amount that remains after sub-
tracting the amount reserved under para-
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graph (1) from the amount of the State’s al-
location under subsection (d) for fiscal years 
2004 and 2005, respectively. For fiscal 
years 2006, 2007, 2008, and 2009, the State 
may reserve the maximum amount the 
State was eligible to reserve under the pre-
ceding sentence for fiscal year 2005 (ad-
justed by the cumulative rate of inflation 
since fiscal year 2005 as measured by the 
percentage increase, if any, in the Con-
sumer Price Index for All Urban Con-
sumers, published by the Bureau of Labor 
Statistics of the Department of Labor). 
‘‘(ii) SMALL
STATE
ADJUSTMENT.— 
Notwithstanding clause (i), in the case of a 
State for which the maximum amount re-
served for State administration under para-
graph (1) is not greater than $800,000 (as 
adjusted pursuant to paragraph (1)(A)(i)), 
the State may reserve for the purpose of 
carrying out State-level activities for each 
of the fiscal years 2004 and 2005, not more 
than 12 percent of the amount that remains 
after subtracting the amount reserved under 
paragraph (1) from the amount of the 
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State’s allocation under subsection (d) for 
fiscal years 2004 and 2005, respectively. 
For each of the fiscal years 2006, 2007, 
2008, and 2009, each such State may re-
serve for such purpose the maximum 
amount the State was eligible to reserve 
under the preceding sentence for fiscal year 
2005 (adjusted by the cumulative rate of in-
flation since fiscal year 2005 as measured 
by the percentage increase, if any, in the 
Consumer Price Index For All Urban Con-
sumers, published by the Bureau of Labor 
Statistics of the Department of Labor). 
‘‘(B) REQUIRED
ACTIVITIES.—Funds re-
served under subparagraph (A) shall be used to 
carry out the following activities: 
‘‘(i) For monitoring, enforcement and 
complaint investigation. 
‘‘(ii) To establish and implement the 
mediation, processes required by section 
615(e)(1), including providing for the costs 
of mediators and support personnel; 
‘‘(iii) To support the State protection 
and advocacy system to advise and assist 
parents in the areas of— 
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‘‘(I) dispute resolution and due 
process; 
‘‘(II) voluntary mediation; and 
‘‘(III) the opportunity to resolve 
complaints. 
‘‘(C) AUTHORIZED ACTIVITIES.—Funds re-
served under subparagraph (A) may be used to 
carry out the following activities: 
‘‘(i) For support and direct services, 
including technical assistance, personnel 
preparation, and professional development 
and training. 
‘‘(ii) To support paperwork reduction 
activities, including expanding the use of 
technology in the IEP process. 
‘‘(iii) To assist local educational agen-
cies in providing positive behavioral inter-
ventions and supports and mental health 
services for children with disabilities. 
‘‘(iv) To improve the use of technology 
in the classroom by children with disabil-
ities to enhance learning. 
‘‘(v) To support the development and 
use of technology, including universally de-
signed technologies and assistive technology 
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devices, to maximize accessibility to the gen-
eral curriculum for children with disabil-
ities. 
‘‘(vi) Development and implementation 
of transition programs, including coordina-
tion of services with agencies involved in 
supporting the transition of students with 
disabilities to post-secondary activities. 
‘‘(vii) To assist local educational agen-
cies in meeting personnel shortages. 
‘‘(viii) To support capacity building 
activities and improve the delivery of serv-
ices by local educational agencies to im-
prove results for children with disabilities. 
‘‘(ix) Alternative programming for 
children who have been expelled from school, 
and services for children in correctional fa-
cilities, children enrolled in State-operated 
or State-supported schools, and children in 
charter schools. 
‘‘(x) To support the development and 
provision of appropriate accommodations 
for children with disabilities, or the develop-
ment and provision of alternate assessments 
that are valid and reliable for assessing the 
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performance of children with disabilities, in 
accordance with sections 1111(b) and 6111 
of the Elementary and Secondary Edu-
cation Act of 1965. 
‘‘(3) LOCAL EDUCATIONAL AGENCY RISK POOL.— 
‘‘(A) IN GENERAL.—For the purpose of as-
sisting local educational agencies (and charter 
schools that are local educational agencies) in 
addressing the needs of high-need children and 
the unanticipated enrollment of other children el-
igible for services under this part, each State 
shall reserve for each of the fiscal years 2004 
through 2009, 2 percent of the amount that re-
mains after subtracting the amount reserved 
under paragraph (1) from the amount of the 
State’s allocation under subsection (d) for each of 
the fiscal years 2004 through 2009, respectively, 
to— 
‘‘(i) establish a high-cost fund; and 
‘‘(ii) make disbursements from the 
high-cost fund to local educational agencies 
in accordance with this paragraph. 
‘‘(B) REQUIRED
DISBURSEMENTS
FROM 
THE FUND.— 
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‘‘(i) IN
GENERAL.—Each State edu-
cational agency shall make disbursements 
from the fund established under subpara-
graph (A) to local educational agencies to 
pay the percentage, described in subpara-
graph (D), of the costs of providing a free 
appropriate public education to high-need 
children. 
‘‘(ii) SPECIAL
RULE.—If funds re-
served for a fiscal year under subparagraph 
(A) are insufficient to pay the percentage 
described in subparagraph (D) to assist all 
the local educational agencies having appli-
cations approved under subparagraph (C), 
then the State educational agency shall rat-
ably reduce the amount paid to each local 
educational agency that receives a disburse-
ment for that fiscal year. 
‘‘(C) APPLICATION.—A local educational 
agency that desires a disbursement under this 
subsection shall submit an application to the 
State educational agency at such time, in such 
manner, and containing such information as the 
State educational agency may require. Such ap-
plication shall include assurances that funds 
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provided under this paragraph shall not be used 
to pay costs that otherwise would be reimburs-
able as medical assistance for a child with a dis-
ability under the State medicaid program under 
title XIX of the Social Security Act. 
‘‘(D) DISBURSEMENTS.— 
‘‘(i) 
IN
GENERAL.—A 
State 
edu-
cational agency shall make a disbursement 
to a local educational agency that submits 
an application under subparagraph (C) in 
an amount that is equal to 75 percent of the 
costs that are in excess of 4 times the aver-
age per-pupil expenditure in the United 
States or in the State where the child re-
sides (whichever average per-pupil expendi-
ture is lower) associated with educating 
each high need child served by such local 
educational agency in a fiscal year for 
whom such agency desires a disbursement. 
‘‘(ii) APPROPRIATE COSTS.—The costs 
associated with educating a high need child 
under clause (i) are only those costs associ-
ated with providing direct special education 
and related services to such child that are 
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identified in such child’s appropriately de-
veloped IEP. 
‘‘(E) LEGAL
FEES.—The disbursements 
under subparagraph (D) shall not support legal 
fees, court costs, or other costs associated with a 
cause of action brought on behalf of such child to 
ensure a free appropriate public education for 
such child. 
‘‘(F) PERMISSIBLE DISBURSEMENTS FROM 
REMAINING FUNDS.—A State educational agency 
may make disbursements to local educational 
agencies from any funds that are remaining in 
the high cost fund after making the required dis-
bursements under subparagraph (D) for a fiscal 
year for the following purposes: 
‘‘(i) To pay the costs associated with 
serving children with disabilities who 
moved into the areas served by such local 
agencies after the budget for the following 
school year had been finalized to assist the 
local educational agencies in providing a 
free appropriate public education for such 
children in such year. 
‘‘(ii) To compensate local educational 
agencies for extraordinary costs, as deter-
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mined by the State, of any children eligible 
for services under this part due to— 
‘‘(I) unexpected enrollment or 
placement of children eligible for serv-
ices under this part; or 
‘‘(II) a significant underestimate 
of the average cost of providing services 
to children eligible for services under 
this part. 
‘‘(G) REMAINING
FUNDS.—Funds reserved 
under subparagraph (A) in any fiscal year but 
not expended in that fiscal year pursuant to sub-
paragraph (D) or subparagraph (F) shall— 
‘‘(i) be allocated to local educational 
agencies pursuant to subparagraphs (D) or 
(F) for the next fiscal year; or 
‘‘(ii) be allocated to local educational 
agencies in the same manner as funds are 
allocated to local educational agencies under 
subsection (f). 
‘‘(H) ASSURANCE OF A FREE APPROPRIATE 
PUBLIC
EDUCATION.—Nothing in this section 
shall be construed— 
‘‘(i) to limit or condition the right of 
a child with a disability who is assisted 
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under this part to receive a free appropriate 
public 
education 
pursuant 
to 
section 
612(a)(1) in a least restrictive environment 
pursuant to section 612(a)(5); or 
‘‘(ii) to authorize a State educational 
agency or local educational agency to indi-
cate a limit on what is expected to be spent 
on the education of a child with a dis-
ability. 
‘‘(I) MEDICAID SERVICES NOT AFFECTED.— 
Disbursements provided under this subsection 
shall not be used to pay costs that otherwise 
would be reimbursable as medical assistance for 
a child with a disability under the State med-
icaid program under title XIX of the Social Se-
curity Act. 
‘‘(J) DEFINITIONS.—In this paragraph: 
‘‘(i) AVERAGE
PER-PUPIL
EXPENDI-
TURE.—The term ‘average per-pupil ex-
penditure’ has the meaning given the term 
in section 9101 of the Elementary and Sec-
ondary Education Act of 1965. 
‘‘(ii) HIGH-NEED
CHILD.—The term 
‘high-need’, when used with respect to a 
child with a disability, means a child with 
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a disability for whom a free appropriate 
public education in a fiscal year costs more 
than 4 times the average per-pupil expendi-
ture for such fiscal year. 
‘‘(K) SPECIAL RULE FOR RISK POOL AND 
HIGH-NEED ASSISTANCE PROGRAMS IN EFFECT 
AS
OF
JANUARY
1, 2003.—Notwithstanding the 
provisions of subparagraphs (A) through (J), a 
State may use funds reserved pursuant to this 
paragraph for administering and implementing 
a placement-neutral cost-sharing and reimburse-
ment program of high-need, low-incidence, emer-
gency, catastrophic, or extraordinary aid to local 
educational agencies that provides services to 
students eligible under this part based on eligi-
bility criteria for such programs that were oper-
ative on January 1, 2003. 
‘‘(4) INAPPLICABILITY
OF
CERTAIN
PROHIBI-
TIONS.—A State may use funds the State reserves 
under paragraphs (1), (2), and (3) without regard 
to— 
‘‘(A) the prohibition on commingling of 
funds in section 612(a)(17)(B); and 
‘‘(B) the prohibition on supplanting other 
funds in section 612(a)(17)(C). 
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‘‘(5) REPORT ON USE OF FUNDS.—As part of the 
information required to be submitted to the Secretary 
under section 612, each State shall annually describe 
how amounts under this section— 
‘‘(A) will be used to meet the requirements 
of this Act; and 
‘‘(B) will be allocated among the activities 
described in this section to meet State priorities 
based on input from local educational agencies. 
‘‘(6) FLEXIBILITY IN USING FUNDS FOR PART 
C.—Any State eligible to receive a grant under sec-
tion 619 may use funds made available under para-
graph (1)(A), subsection (f)(3), or section 619(f)(5) to 
develop and implement a State policy jointly with the 
lead agency under part C and the State educational 
agency to provide early intervention services (which 
shall include an educational component that promotes 
school readiness and incorporates pre-literacy, lan-
guage, and numeracy skills) in accordance with part 
C to children with disabilities who are eligible for 
services under section 619 and who previously re-
ceived services under part C until such children enter, 
or are eligible under State law to enter, kindergarten. 
‘‘(f) SUBGRANTS
TO LOCAL EDUCATIONAL AGEN-
CIES.— 
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‘‘(1) SUBGRANTS REQUIRED.—Each State that 
receives a grant under this section for any fiscal year 
shall distribute any funds the State does not reserve 
under subsection (e) to local educational agencies (in-
cluding public charter schools that operate as local 
educational agencies) in the State that have estab-
lished their eligibility under section 613 for use in ac-
cordance with this part. 
‘‘(2) PROCEDURE FOR ALLOCATIONS TO LOCAL 
EDUCATIONAL AGENCIES.— 
‘‘(A) PROCEDURE.—For each fiscal year for 
which funds are allocated to States under sub-
section (d), each State shall allocate funds under 
paragraph (1) as follows: 
‘‘(i) BASE PAYMENTS.—The State shall 
first award each local educational agency 
described in paragraph (1) the amount the 
local educational agency would have re-
ceived under this section for fiscal year 
1999, if the State had distributed 75 per-
cent of its grant for that year under section 
611(d) as section 611(d) was then in effect. 
‘‘(ii) 
ALLOCATION
OF
REMAINING 
FUNDS.—After making allocations under 
clause (i), the State shall— 
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‘‘(I) allocate 85 percent of any re-
maining funds to those local edu-
cational agencies on the basis of the 
relative numbers of children enrolled in 
public and private elementary schools 
and secondary schools within the local 
educational agency’s jurisdiction; and 
‘‘(II) allocate 15 percent of those 
remaining funds to those local edu-
cational agencies in accordance with 
their relative numbers of children liv-
ing in poverty, as determined by the 
State educational agency. 
‘‘(3) REALLOCATION OF FUNDS.—If a State edu-
cational agency determines that a local educational 
agency is adequately providing a free appropriate 
public education to all children with disabilities re-
siding in the area served by that local educational 
agency with State and local funds, the State edu-
cational agency may reallocate any portion of the 
funds under this part that are not needed by that 
local educational 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 
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disabilities residing in the areas served by those other 
local educational agencies. 
‘‘(g) DEFINITIONS.—For the purpose of this section— 
‘‘(1) the term ‘average per-pupil expenditure in 
public elementary schools and secondary schools in 
the United States’ means— 
‘‘(A) without regard to the source of 
funds— 
‘‘(i) the aggregate current expenditures, 
during the second fiscal year preceding the 
fiscal year for which the determination is 
made (or, if satisfactory data for that year 
are not available, during the most recent 
preceding fiscal year for which satisfactory 
data are available) of all local educational 
agencies in the 50 States and the District of 
Columbia; plus 
‘‘(ii) any direct expenditures by the 
State for the operation of those local edu-
cational agencies; divided by 
‘‘(B) the aggregate number of children in 
average daily attendance to whom those local 
educational agencies provided free public edu-
cation during that preceding year; and 
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‘‘(2) the term ‘State’ means each of the 50 States, 
the District of Columbia, and the Commonwealth of 
Puerto Rico. 
‘‘(h) USE OF AMOUNTS BY SECRETARY OF THE INTE-
RIOR.— 
‘‘(1) PROVISION
OF
AMOUNTS
FOR
ASSIST-
ANCE.— 
‘‘(A) IN GENERAL.—The Secretary of Edu-
cation shall provide amounts to the Secretary of 
the Interior to meet the need for assistance for 
the education of children with disabilities on res-
ervations aged 5 through 21 who are enrolled in 
elementary schools and secondary schools for In-
dian children operated or funded by the Sec-
retary of the Interior. The amount of such pay-
ment for any fiscal year shall be equal to 80 per-
cent of the amount allotted under subsection (c) 
for that fiscal year. 
‘‘(B) CALCULATION OF NUMBER OF CHIL-
DREN.—In the case of Indian students aged 3 
through 5 who are enrolled in programs affili-
ated with the Bureau of Indian Affairs (hereafter 
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 
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sections 612 (including monitoring and evalua-
tion 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 pro-
viders; 
‘‘(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 procedures 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 
May 22, 2004
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respective Federal, State, and local offices and 
with State and local educational agencies and 
other entities to facilitate the provision of serv-
ices to Indian children with disabilities residing 
on or near reservations (such agreement shall 
provide for the apportionment of responsibilities 
and costs including, but not limited to, child 
find, evaluation, diagnosis, remediation or thera-
peutic measures, and (where appropriate) equip-
ment and medical or personal supplies as needed 
for a child to remain in school or a program); 
and 
‘‘(F) includes an assurance that the Depart-
ment of the Interior will cooperate with the De-
partment of Education in its exercise of moni-
toring 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. 
‘‘(3) 
APPLICABILITY.—Section 
616(a) 
shall 
apply to the information described in this paragraph. 
‘‘(4) PAYMENTS FOR EDUCATION AND SERVICES 
FOR INDIAN CHILDREN WITH DISABILITIES AGED 3 
THROUGH 5.— 
May 22, 2004
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‘‘(A) IN
GENERAL.—With funds appro-
priated under subsection (i), the Secretary of 
Education shall make payments to the Secretary 
of the Interior to be distributed to tribes or tribal 
organizations (as defined under section 4 of the 
Indian Self-Determination and Education As-
sistance Act) or consortia of the above to provide 
for the coordination of assistance for special edu-
cation and related services for children with dis-
abilities aged 3 through 5 on reservations served 
by elementary schools and secondary schools for 
Indian children operated or funded by the De-
partment of the Interior. The amount of such 
payments under subparagraph (B) for any fiscal 
year shall be equal to 20 percent of the amount 
allotted under subsection (c). 
‘‘(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 organization 
an amount based on the number of children with 
disabilities ages 3 through 5 residing on reserva-
tions as reported annually, divided by the total 
of those children served by all tribes or tribal or-
ganizations. 
May 22, 2004
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‘‘(C) SUBMISSION OF INFORMATION.—To re-
ceive a payment under this paragraph, the tribe 
or tribal organization shall submit such figures 
to the Secretary of the Interior as required to de-
termine the amounts to be allocated under sub-
paragraph (B). This information shall be com-
piled and submitted to the Secretary of Edu-
cation. 
‘‘(D) USE OF FUNDS.—The funds received 
by a tribe or tribal organization shall be used to 
assist in child find, screening, and other proce-
dures for the early identification of children aged 
3 through 5, 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 educational agen-
cies, and other public or private nonprofit orga-
nizations. The tribe or tribal organization is en-
couraged to involve Indian parents in the devel-
opment and implementation of these activities. 
The above entities shall, as appropriate, make re-
ferrals 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), 
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the tribe or tribal organization shall provide to 
the Secretary of the Interior a biennial report of 
activities undertaken under this paragraph, in-
cluding 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 infor-
mation on a biennial basis in the report to the 
Secretary of Education required under this sub-
section. The Secretary of Education may require 
any additional information from the Secretary 
of the Interior. 
‘‘(F) PROHIBITIONS.—None of the funds al-
located under this paragraph may be used by the 
Secretary of the Interior for administrative pur-
poses, including child count and the provision of 
technical assistance. 
‘‘(5) PLAN FOR COORDINATION OF SERVICES.— 
The Secretary of the Interior shall develop and imple-
ment a plan for the coordination of services for all 
Indian children with disabilities residing on reserva-
tions covered under this Act. Such plan shall provide 
May 22, 2004
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for the coordination of services benefiting these chil-
dren from whatever source, including tribes, the In-
dian Health Service, other BIA divisions, and other 
Federal agencies. In developing the plan, the Sec-
retary of the Interior shall consult with all interested 
and involved parties. The plan shall be based on the 
needs of the children and the system best suited for 
meeting those needs, and may involve the establish-
ment of cooperative agreements between the BIA, 
other Federal agencies, and other entities. The plan 
shall also be distributed upon request to States, State 
and local educational agencies, and other agencies 
providing services to infants, toddlers, and children 
with disabilities, to tribes, and to other interested 
parties. 
‘‘(6) ESTABLISHMENT OF ADVISORY BOARD.—To 
meet the requirements of section 612(a)(20), the Sec-
retary of the Interior shall establish, under the BIA, 
an advisory board composed of individuals involved 
in or concerned with the education and provision of 
services to Indian infants, toddlers, children, and 
youth with disabilities, including Indians with dis-
abilities, Indian parents or guardians of such chil-
dren, teachers, service providers, State and local edu-
cational officials, representatives of tribes or tribal or-
May 22, 2004
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ganizations, representatives from State Interagency 
Coordinating Councils under section 641 in States 
having reservations, and other members representing 
the various divisions and entities of the BIA. The 
chairperson shall be selected by the Secretary of the 
Interior. The advisory board shall— 
‘‘(A) assist in the coordination of services 
within the BIA and with other local, State, and 
Federal agencies in the provision of education 
for infants, toddlers, and children with disabil-
ities; 
‘‘(B) advise and assist the Secretary of the 
Interior in the performance of the Secretary’s re-
sponsibilities 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 in-
formation on best practices, effective program co-
ordination strategies, and recommendations for 
improved educational programming for Indian 
infants, toddlers, and children with disabilities; 
and 
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‘‘(E) provide assistance in the preparation 
of information required under paragraph (2)(D). 
‘‘(7) ANNUAL REPORTS.— 
‘‘(A) IN GENERAL.—The advisory board es-
tablished under paragraph (6) shall prepare and 
submit to the Secretary of the Interior and to 
Congress an annual report containing a descrip-
tion of the activities of the advisory board for the 
preceding year. 
‘‘(B) AVAILABILITY.—The Secretary of the 
Interior shall make available to the Secretary of 
Education the report described in subparagraph 
(A). 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—For the 
purpose of carrying out this part, other than section 619, 
there are authorized to be appropriated— 
‘‘(1) $12,358,376,571 for fiscal year 2005; 
‘‘(2) $14,648,647,143 for fiscal year 2006; 
‘‘(3) $16,938,917,714 for fiscal year 2007; 
‘‘(4) $19,229,188,286 for fiscal year 2008; 
‘‘(5) $21,519,458,857 for fiscal year 2009; 
‘‘(6) $23,809,729,429 for fiscal year 2010; 
‘‘(7) $26,100,000,000 for fiscal year 2011; and 
‘‘(8) such sums as may be necessary for fiscal 
year 2012 and each succeeding fiscal year. 
May 22, 2004
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‘‘SEC. 612. STATE ELIGIBILITY. 
‘‘(a) IN GENERAL.—A State is eligible for assistance 
under this part for a fiscal year if the State submits a plan 
that provides assurances to 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 pub-
lic education is available to all children with 
disabilities residing in the State between the ages 
of 3 and 21, inclusive, including children with 
disabilities who have been suspended or expelled 
from school. 
‘‘(B) LIMITATION.—The obligation to make 
a free appropriate public education available to 
all children with disabilities does not apply with 
respect to children— 
‘‘(i) aged 3 through 5 and 18 through 
21 in a State to the extent that its applica-
tion to those children would be inconsistent 
with State law or practice, or the order of 
any court, respecting the provision of public 
education to children in those age ranges; 
and 
‘‘(ii) aged 18 through 21 to the extent 
that State law does not require that special 
May 22, 2004
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education and related services under this 
part be provided to children with disabil-
ities who, in the educational placement 
prior to their incarceration in an adult cor-
rectional facility— 
‘‘(I) were not actually identified 
as being a child with a disability 
under section 602(3); or 
‘‘(II) did not have an individual-
ized education program under this 
part. 
‘‘(C) STATE
FLEXIBILITY.—A State that 
provides early intervention services in accord-
ance with part C to a child who is eligible for 
services under section 619, is not required to 
provide such child with a free appropriate public 
education. 
‘‘(2) FULL EDUCATIONAL OPPORTUNITY GOAL.— 
The State has established a goal of providing full edu-
cational opportunity to all children with disabilities 
and a detailed timetable for accomplishing that goal. 
‘‘(3) CHILD FIND.— 
‘‘(A) IN GENERAL.—All children with dis-
abilities residing in the State, including children 
with disabilities who are homeless children or 
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are wards of the State and children with disabil-
ities attending private schools, regardless of the 
severity of their disabilities, and who are in need 
of special education and related services, are 
identified, located, and evaluated and a practical 
method is developed and implemented to deter-
mine which children with disabilities are cur-
rently receiving needed special education and re-
lated services. 
‘‘(B) CONSTRUCTION.—Nothing in this Act 
requires that children be classified by their dis-
ability so long as each child who has a disability 
listed in section 602 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 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). 
‘‘(5) LEAST RESTRICTIVE ENVIRONMENT.— 
‘‘(A) IN GENERAL.—To the maximum ex-
tent appropriate, children with disabilities, in-
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cluding children in public or private institutions 
or other care facilities, are educated with chil-
dren who are not disabled, and special classes, 
separate schooling, or other removal of children 
with disabilities from the regular educational en-
vironment occurs only when the nature or sever-
ity of the disability of a child is such that edu-
cation in regular classes with the use of supple-
mentary aids and services cannot be achieved 
satisfactorily. 
‘‘(B) ADDITIONAL REQUIREMENT.— 
‘‘(i) IN
GENERAL.—A State funding 
mechanism shall not result in placements 
that violate the requirements of subpara-
graph (A), and a State shall not use a 
funding mechanism by which the State dis-
tributes funds on the basis of the type of set-
ting in which a child is served that will re-
sult in the failure to provide a child with 
a disability a free appropriate public edu-
cation according to the unique needs of the 
child as described in the child’s IEP. 
‘‘(ii) ASSURANCE.—If the State does 
not have policies and procedures to ensure 
compliance with clause (i), the State shall 
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provide the Secretary an assurance that the 
State will revise the funding mechanism as 
soon as feasible to ensure that such mecha-
nism does not result in such placements. 
‘‘(6) PROCEDURAL SAFEGUARDS.— 
‘‘(A) IN GENERAL.—Children with disabil-
ities and their parents are afforded the proce-
dural safeguards required by section 615. 
‘‘(B) 
ADDITIONAL
PROCEDURAL
SAFE-
GUARDS.—Procedures to ensure that testing and 
evaluation materials and procedures utilized for 
the purposes of evaluation and placement of chil-
dren with disabilities will be selected and admin-
istered so as not to be racially or culturally dis-
criminatory. Such materials or procedures shall 
be provided and administered in the child’s na-
tive language or mode of communication, unless 
it clearly is not feasible to do so, and no single 
procedure shall be the sole criterion for deter-
mining an appropriate educational program for 
a child. 
‘‘(7) EVALUATION.—Children with disabilities 
are evaluated in accordance with subsections (a) and 
(b) of section 614. 
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‘‘(8) CONFIDENTIALITY.—Agencies in the State 
comply with section 617(c) (relating to the confiden-
tiality of records and information). 
‘‘(9) 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 and effective transition to 
those preschool programs in a manner consistent with 
section 637(a)(8). By the third birthday of such a 
child, an individualized education program or, if con-
sistent with sections 614(d)(2)(B) and 636(d), an in-
dividualized family service plan, has been developed 
and is being implemented for the child. The local edu-
cational agency will participate in transition plan-
ning conferences arranged by the designated lead 
agency under section 635(a)(10). 
‘‘(10) CHILDREN IN PRIVATE SCHOOLS.— 
‘‘(A) CHILDREN
ENROLLED
IN
PRIVATE 
SCHOOLS BY THEIR PARENTS.— 
‘‘(i) IN GENERAL.—To the extent con-
sistent with the number and location of 
children with disabilities in the State who 
are enrolled by their parents in private ele-
mentary schools and secondary schools in 
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‘‘(1) any reduction or withholding of payments 
to the State shall be proportionate to the total funds 
allotted under section 611 to the State as the number 
of eligible children with disabilities in adult prisons 
under the supervision of the other public agency is 
proportionate to the number of eligible individuals 
with disabilities in the State under the supervision of 
the State educational agency; and 
‘‘(2) any withholding of funds under paragraph 
(1) shall be limited to the specific agency responsible 
for the failure to comply with this part. 
‘‘(e) STATE AND LOCAL MONITORING.— 
‘‘(1) IN GENERAL.—The State educational agen-
cy shall monitor and enforce implementation of this 
Act, implement a system of monitoring the bench-
marks in the State’s compliance plan under sub-
section (b)(2)(C), and require local educational agen-
cies to monitor and enforce implementation of this 
Act. 
‘‘(2) ADDITIONAL ENFORCEMENT OPTIONS.—If a 
State educational agency determines that a local edu-
cational agency is not meeting the requirements of 
this part, including the benchmarks in the State’s 
compliance plan, the State educational agency shall 
prohibit the local educational agency from treating 
May 22, 2004