that impede their full participation in the main-
stream of society.
‘‘(d) PURPOSES.—The purposes of this title are—
‘‘(1) to ensure that all children with disabilities
have available to them a free appropriate public edu-
cation that emphasizes special education and related
services designed to meet their unique needs and
prepare them for employment and independent liv-
ing;
‘‘(2) to ensure that the rights of children with
disabilities and parents of such children are pro-
tected;
‘‘(3) to assist States, localities, education serv-
ice agencies, and Federal agencies to provide for the
education of all children with disabilities; and
‘‘(4) to assess, and ensure the effectiveness of,
efforts to educate children with disabilities.
‘‘SEC. 602. DEFINITIONS.
‘‘As used in this title:
‘‘(1) ASSISTIVE
TECHNOLOGY
DEVICE.—The
term ‘assistive technology device’ means any item,
piece of equipment, or product system, whether
acquired commercially off the shelf, modified, or cus-
tomized, that is used to increase, maintain, or im-
prove functional capabilities of a child with a
disability.
‘‘(2) ASSISTIVE
TECHNOLOGY
SERVICE.—The
term ‘assistive technology service’ means any service
that directly assists a child with a disability in the
selection, acquisition, or use of an assistive tech-
nology 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, customiz-
ing, adapting, applying, maintaining, repairing,
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.
‘‘(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 impair-
ments (including blindness), serious emo-
tional disturbance, orthopedic impairments,
autism, traumatic brain injury, other
health impairments, or specific learning
disabilities; and
‘‘(ii) who, by reason thereof, needs
special education and related services.
‘‘(B) CHILD
AGED
TO
9.—The term
‘child with a disability’ for a child aged 3 to 9,
inclusive, may, at the discretion of the State
and the local educational agency, include a
child—
‘‘(i) 
experiencing 
developmental
delays, as defined by the State and as
measured by appropriate diagnostic instru-
ments and procedures, in one or more of
the following areas: physical development,
cognitive development, communication de-
velopment, social or emotional develop-
ment, or adaptive development; and
‘‘(ii) who, by reason thereof, needs
special education and related services.
‘‘(4) 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
special education and related services pro-
vided within public elementary and second-
ary schools of the State; and
‘‘(B) includes any other public institution
or agency having administrative control and di-
rection over a public elementary or secondary
school.
‘‘(5) ELEMENTARY
SCHOOL.—The term ‘ele-
mentary school’ means a day or residential school
which provides elementary education, as determined
under State law, policy, or procedure.
‘‘(6) 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
functioning of a particular facility as a facility
for the provision of educational services, includ-
ing items such as instructional equipment and
necessary furniture, printed, published, and
audio-visual 
instructional 
materials, 
tele-
communications, sensory, and other techno-
logical aids and devices, and books, periodicals,
documents, and other related materials.
‘‘(7) EXCESS COSTS.—The term ‘excess costs’
means those costs which are in excess of the average
‘‘(C) include an appropriate preschool, ele-
mentary, or secondary school education in the
State involved; and
‘‘(D) are provided in conformity with the
individualized 
education 
program 
required
under section 614(d).
‘‘(9) INDIAN.—The term ‘Indian’ means an in-
dividual who is a member of an Indian tribe.
‘‘(10) INDIAN TRIBE.—The term ‘Indian tribe’
means any Federal or State Indian tribe, band,
rancheria, pueblo, colony, or community, including
any Alaskan native village or regional village cor-
poration (as defined in or established under the
Alaska Native Claims Settlement Act).
‘‘(11) 
INDIVIDUALIZED
EDUCATION
PRO-
GRAM.—The term ‘individualized education program’
or ‘IEP’ means a written statement for each child
with a disability that is developed, reviewed, and re-
vised in accordance with section 614(d) and that in-
cludes—
‘‘(A) a statement of the child’s present lev-
els of educational performance, including—
‘‘(i) how the child’s disability affects
the child’s involvement and progress in the
general curriculum; or
‘‘(ii) for preschool children, as appro-
priate, how the disability affects the child’s
participation in appropriate activities;
‘‘(B) a statement of measurable annual
goals, including benchmarks or short-term ob-
jectives, related to—
‘‘(i) meeting the child’s needs that re-
sult from the child’s disability to enable
the child to be involved in and progress in
the general curriculum; and
‘‘(ii) meeting each of the child’s other
educational needs that result from the
child’s disability;
‘‘(C) a statement of how the classroom was
adapted before the student was referred for
identification as a child with a disability;
‘‘(D) a justification of the extent, if any, to
which the child will not be educated with non-
disabled children;
‘‘(E) a statement of the special education
and related services and supplementary aids
and services to be provided to the child, or on
behalf of the child, and any program modifica-
tions or support for school personnel necessary
for the child—
‘‘(i) to progress toward the attainment
of the annual goals described in subpara-
graph (B); and
‘‘(ii) to be involved and progress in
the general curriculum in accordance with
subparagraph (A) and to participate in ex-
tracurricular and other nonacademic activi-
ties;
‘‘(F)(i) a statement of any individual modi-
fications in the administration of State or dis-
trictwide assessments of student achievement
that are needed in order for the child to partici-
pate in such assessment; and
‘‘(ii) if the individualized education pro-
gram team determines that the child will not
participate in a particular State or districtwide
assessment of student achievement (or part of
such an assessment), a statement of—
‘‘(I) why that assessment is not ap-
propriate for the child; and
‘‘(II) how the child will be assessed;
‘‘(G) the projected date for the beginning
of the services and modifications described in
subparagraph (E), and the anticipated fre-
quency, location, and duration of those services
and modifications;
‘‘(H)(i) beginning at age 14, and updated
annually, a statement of the transition service
needs of the child under the applicable compo-
nents of the child’s IEP that focuses on the
child’s courses of study (such as participation
in advanced-placement courses or a vocational
education or school-to-work program);
‘‘(ii) beginning at age 16 (or younger, if
determined appropriate by the IEP Team), a
statement of needed transition services for the
child, including, when appropriate, a statement
of the interagency responsibilities or any needed
linkages; and
‘‘(iii) beginning at least one year before the
child reaches the age of majority under State
law, a statement that the child has been in-
formed of his or her rights under this title, if
any, that will transfer to the child on reaching
the age of majority under section 615(m); and
‘‘(I) a statement of—
‘‘(i) how the child’s progress toward
the annual goals described in subpara-
graph (B) will be measured; and
‘‘(ii) how the child’s parents will be
regularly informed (by such means as peri-
odic report cards), at least as often as par-
ents are informed of their nondisabled chil-
dren’s progress, of—
‘‘(I) their child’s progress toward
the annual goals described in subpara-
graph (B); and
‘‘(II) the extent to which that
progress is sufficient to enable the
child to achieve the objectives by the
end of the year.
‘‘(12) INDIVIDUALIZED
EDUCATION
PROGRAM
TEAM.—The term ‘individualized education program
team’ or ‘IEP Team’ means a group of individuals
composed of—
‘‘(A) the parents of a child with a
disability;
‘‘(B) at least one regular education teacher
of such child (if the child is, or may be, partici-
pating in the regular education environment);
‘‘(C) at least one special education teacher,
or where appropriate, at least one special edu-
cation provider of such child;
‘‘(D) a representative of the local edu-
cational agency who—
‘‘(i) is qualified to provide, or super-
vise the provision of, specially designed in-
struction to meet the unique needs of chil-
dren with disabilities;
‘‘(ii) is knowledgeable about the gen-
eral curriculum; and
‘‘(iii) is knowledgeable about the avail-
ability of resources of the local educational
agency;
‘‘(E) whenever appropriate, the child with
a disability; and
‘‘(F) at the discretion of the parent or the
agency, other individuals who have special ex-
pertise or knowledge regarding the abilities and
disability or disabilities of the child, including,
as appropriate, related services personnel who
are or who will be working with the child.
‘‘(13) INSTITUTION OF HIGHER EDUCATION.—
The term ‘institution of higher education’—
‘‘(A) has the meaning given that term in
section 1201(a) of the Higher Education Act of
1965; and
‘‘(B) also includes any community college
receiving funding from the Secretary of the In-
terior under the Tribally Controlled Community
College Assistance Act of 1978.
‘‘(14) LOCAL
EDUCATIONAL
AGENCY.—The
term ‘local educational agency’ means—
‘‘(A) a public board of education or other
public authority legally constituted within a
State for either administrative control or direc-
tion of, or to perform a service function for,
public elementary or secondary schools in a
city, county, township, school district, or other
political subdivision of a State, or for a com-
bination of school districts or counties as are
recognized in a State as an administrative
agency for its public elementary or secondary
schools;
‘‘(B) any other public institution or agency
having administrative control and direction of a
public elementary or secondary school; or
‘‘(C) an educational service agency.
‘‘(15) NATIVE
LANGUAGE.—The term ‘native
language’, when used with reference to an individual
of limited English proficiency, means the language
normally used by the individual, or in the case of a
child, the language normally used by the parents of
the child, and includes American Sign Language.
‘‘(16) NONPROFIT.—The term ‘nonprofit’ as
applied to a school, agency, organization, or institu-
tion means a school, agency, organization, or institu-
tion owned and operated by one or more nonprofit
corporations or associations no part of the net earn-
ings of which inures, or may lawfully inure, to the
benefit of any private shareholder or individual.
‘‘(17) PARENT.—The term ‘parent’ includes a
legal guardian or surrogate parent.
‘‘(18) PARENT ORGANIZATION.—The term ‘par-
ent organization’ means a private nonprofit organi-
zation (but not including an institution of higher
education) that—
‘‘(A) has a board of directors—
‘‘(i) the majority of whom are parents
of children with disabilities;
‘‘(ii) that includes—
‘‘(I) individuals working in the
fields of special education, related
services, and early intervention; and
‘‘(II) individuals with disabilities;
and
‘‘(iii) the parent and professional
members of which are broadly representa-
tive of the population to be served; or
‘‘(B)(i) represents the interests of individ-
uals with disabilities and has established a spe-
cial governing committee which meets the re-
quirements of subparagraph (A); and
‘‘(ii) has a memorandum of understanding
between the special governing committee and
the board of directors of the organization which
clearly outlines the relationship between the
board and the committee and the decisionmak-
ing responsibilities and authority of each.
‘‘(19) PARENT
TRAINING
AND
INFORMATION
CENTER.—The term ‘parent training and informa-
tion center’ means a center that—
‘‘(A) provides training and information
that meets the training and information needs
of parents of children with disabilities living in
the area served by the center; and
‘‘(B) assists parents—
‘‘(i) to better understand the nature
of their children’s disabilities and their
educational and developmental needs;
‘‘(ii) to communicate effectively with
personnel responsible for providing special
education, early intervention, and related
services;
‘‘(iii) to participate in decisionmaking
processes and the development of the IEP;
‘‘(iv) to obtain appropriate informa-
tion about the range of options, programs,
services, and resources available to assist
children with disabilities and their families;
‘‘(v) to understand the programs
under this title for the education of, and
the provision of early intervention services
to, children with disabilities; and
‘‘(vi) to participate in school reform
activities.
‘‘(20) RELATED SERVICES.—The term ‘related
services’ means transportation, and such devel-
opmental, corrective, and other supportive services
(including speech-language pathology and audiology
services, psychological services, physical and occupa-
tional therapy, recreation, including therapeutic
recreation, social work services, counseling services,
including rehabilitation counseling, orientation and
mobility services, and medical services, except that
such medical services shall be for diagnostic and
evaluation purposes only) as may be required to as-
sist a child with a disability to benefit from special
education, and includes the early identification and
assessment of disabling conditions in children.
‘‘(21) SECONDARY SCHOOL.—The term ‘second-
ary school’ means a day or residential school which
provides secondary education, as determined under
State law, policy, or procedure, except that it does
not include any education provided beyond grade 12.
‘‘(22) 
SECRETARY.—The 
term 
‘Secretary’
means the Secretary of Education.
‘‘(23) 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 class-
room, in the home, in hospitals and institutions,
and in other settings; and
‘‘(B) instruction in physical education.
‘‘(24) SPECIFIC LEARNING DISABILITY.—
‘‘(A) IN
GENERAL.—The term ‘specific
learning disability’ means a disorder in one or
more of the basic psychological processes in-
volved in understanding or in using language,
spoken or written, which disorder may manifest
itself in imperfect ability to listen, think, speak,
read, write, spell, or do mathematical calcula-
tions.
‘‘(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, cul-
tural, or economic disadvantage.
‘‘(25) STATE.—The term ‘State’ means each of
the 50 States, the District of Columbia, the Com-
monwealth of Puerto Rico, and each of the terri-
tories.
‘‘(26) STATE
EDUCATIONAL
AGENCY.—The
term ‘State educational agency’ means the State
board of education or other agency or officer pri-
marily responsible for the State supervision of public
elementary and secondary schools, or, if there is no
such officer or agency, an officer or agency des-
ignated by the Governor or by State law.
‘‘(27) 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-relat-
ed settings to enable children with disabilities to be
educated with nondisabled children to the maximum
extent appropriate in accordance with section
612(a)(4).
‘‘(28) TERRITORY.—The term ‘territory’ means
American Samoa, the Commonwealth of the North-
ern Mariana Islands, Guam, and the Virgin Islands.
‘‘(29) TRANSITION SERVICES.—The term ‘tran-
sition services’ means a coordinated set of activities
for a child with a disability that—
‘‘(A) are designed within an outcome-ori-
ented process, which promotes movement from
school to post-school activities, including post-
secondary education, vocational training, inte-
grated employment (including supported em-
ployment), continuing and adult education,
adult services, independent living, or community
participation;
‘‘(B) are based upon the individual child’s
needs, taking into account the child’s pref-
erences and interests; and
‘‘(C) include 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 eval-
uation.
‘‘SEC. 603. OFFICE OF SPECIAL EDUCATION PROGRAMS.
‘‘(a) ESTABLISHMENT.—There shall be, within the
Office of Special Education and Rehabilitative Services in
the Department of Education, an Office of Special Edu-
cation Programs which shall be the principal agency in
such Department for administering and carrying out this
title and other programs and activities concerning the edu-
cation and training 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
SERV-
ICES.—Notwithstanding section 1342 of title 31, United
States Code, the Secretary is authorized to accept vol-
untary and uncompensated services in furtherance of the
purposes of this title.
‘‘SEC. 604. ABROGATION OF STATE SOVEREIGN IMMUNITY.
‘‘(a) IN GENERAL.—A State shall not be immune
under the eleventh amendment to the Constitution of the
United States from suit in Federal court for a violation
of this title.
‘‘(b) REMEDIES.—In a suit against a State for a vio-
lation of this title, remedies (including remedies both at
law and in equity) are available for such a violation to
the same extent as such remedies are available for such
a violation in the suit against any public entity other than
a State.
‘‘(c) EFFECTIVE DATE.—The provisions of sub-
sections (a) and (b) apply with respect to violations that
occur in whole or part after the date of the enactment
of the Education of the Handicapped Act Amendments of
1990.
‘‘SEC. 605. REQUIREMENTS FOR PRESCRIBING REGULA-
TIONS.
‘‘(a) PUBLIC COMMENT PERIOD.—The Secretary
shall provide a public comment period of at least 90 days
on any regulation proposed under part B or part C of this
title on which an opportunity for public comment is other-
wise required by law.
‘‘(b) PROTECTIONS PROVIDED TO CHILDREN.—The
Secretary may not implement, or publish in final form,
any regulation prescribed pursuant to this title which
would procedurally or substantively lessen the protections
provided to children with disabilities under this title, as
embodied in regulations in effect on July 20, 1983 (par-
ticularly as such protections relate to parental consent to
initial evaluation or initial placement in special education,
least restrictive environment, related services, timeliness,
attendance of evaluation personnel at individualized edu-
cation program meetings, or qualifications of personnel),
except to the extent that such regulation reflects the clear
and unequivocal intent of the Congress in legislation.
‘‘(c) CORRESPONDENCE
FROM
DEPARTMENT
OF
EDUCATION DESCRIBING INTERPRETATIONS
OF THIS
PART.—
‘‘(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
correspondence from the Department of Education
received by individuals during the previous quarter
that describes the interpretations of the Department
of Education of this Act or the regulations imple-
mented pursuant to this Act.
‘‘(2) ADDITIONAL
INFORMATION.—For each
item of correspondence published in a list under
paragraph (1), the Secretary shall identify the topic
addressed by the correspondence and shall include
such other summary information as the Secretary
determines to be appropriate.
‘‘(3) RESTRICTIONS ON USE OF CORRESPOND-
ENCE.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), an item of correspondence
published and disseminated under paragraph
(1) may not be used in the following:
‘‘(i) An administrative or due process
action commenced under section 615.
‘‘(ii) A compliance review or other ac-
tion relating to a State educational agency
conducted by the Department of Edu-
cation.
‘‘(iii) A compliance review or other ac-
tion relating to a local educational agency
or other agency conducted by a State edu-
cational agency.
‘‘(B) EXCEPTIONS.—A restriction on the
use of an item of correspondence under sub-
paragraph (A) shall not apply if the item of
correspondence—
‘‘(i) is directly related to the particu-
lar fact situation, practice, or policy at
issue under clause (i) or (iii) of subpara-
graph (A);
‘‘(ii)(I) was originally directed to one
of the parties to the action under subpara-
graph (A)(i); or
‘‘(II) was originally directed to the
particular local educational agency or other
agency under subparagraph (A)(iii); or
‘‘(iii) was originally directed to the
particular State educational agency under
subparagraph (A)(ii).
‘‘SEC. 606. EMPLOYMENT OF INDIVIDUALS WITH DISABIL-
ITIES.
‘‘The Secretary shall assure that each recipient of as-
sistance under this Act shall make positive efforts to em-
ploy and advance in employment qualified individuals with
disabilities in programs assisted under this Act.
‘‘PART B—ASSISTANCE FOR EDUCATION OF ALL
CHILDREN WITH DISABILITIES
‘‘SEC. 611. AUTHORIZATION; ALLOTMENT; USE OF FUNDS;
AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) AUTHORIZATION.—The Secretary of Education
shall provide grants to States and provide amounts to the
Secretary of the Interior for the purpose of providing spe-
cial education and related services to children with disabil-
ities in accordance with this part.
‘‘(b) ALLOTMENT AMONG STATES.—
‘‘(1) RESERVATION FOR THE TERRITORIES.—
‘‘(A) IN GENERAL.—Of the amount appro-
priated pursuant to subsection (e) to carry out
this part for a fiscal year, the Secretary shall
allot not more than one percent among the ter-
ritories in accordance with this paragraph.
‘‘(B) BASIS FOR ALLOTMENT.—The Sec-
retary shall allot to each territory an amount
that bears the same proportion to the amount
appropriated pursuant to subsection (e) for a
fiscal year as the number of individuals aged 3
to 21, inclusive, residing in such territory bears
to the aggregate number of such individuals re-
siding in all such territories.
‘‘(C) PROHIBITION ON CONSOLIDATION OF
GRANTS.—Section 501 of Public Law 95–134
(48 U.S.C. 1469a; relating to the consolidation
of one or more grants provided to certain terri-
tories) shall not apply with respect to amounts
provided to a territory under a grant under this
part.
‘‘(2) SECRETARY OF THE INTERIOR.—Of the
amount appropriated pursuant to subsection (e) to
carry out this part for a fiscal year, the Secretary
shall provide to the Secretary of the Interior an
amount equal to 1.226 percent to carry out sub-
section (d) (relating to special education and related
services for Indian children with disabilities).
‘‘(3) STATES.—
‘‘(A) IN GENERAL.—After determining the
amount to be allotted to the territories under
paragraph (1) and the amount to be provided
to the Secretary of the Interior under para-
graph (2) for a fiscal year, the Secretary shall
allot the remaining amount to the remaining
States in accordance with this paragraph.
‘‘(B) BASIS FOR ALLOTMENT.—Except as
provided in subparagraph (D), the Secretary
shall allot to each State an amount equal to the
sum of the following amounts:
‘‘(i) The amount equal to—
‘‘(I) 85 percent of the remaining
amount described in subparagraph
(A); multiplied by
‘‘(II) the child population per-
centage of the State (as determined
under subparagraph (C)(i)).
‘‘(ii) The amount equal to—
‘‘(I) 15 percent of the remaining
amount described in subparagraph
(A); multiplied by
‘‘(II) the child poverty percentage
of the State (as determined under
subparagraph (C)(ii)).
‘‘(C) DETERMINATION
OF
CHILD
POPU-
LATION
PERCENTAGE
AND
CHILD
POVERTY
PERCENTAGE.—
‘‘(i) CHILD
POPULATION
PERCENT-
AGE.—The child population percentage
shall be determined by comparing—
‘‘(I) the number of children aged
3 to 21, inclusive, in the State who
are of the same age as children with
disabilities for whom the State en-
sures the availability of a free appro-
priate public education; to
‘‘(II) the number of such children
in the remaining States.
‘‘(ii) CHILD POVERTY PERCENTAGE.—
The child poverty percentage shall be de-
termined by comparing—
‘‘(I) the number of children aged
3 to 21, inclusive, in the State living
in poverty who are of the same age as
children with disabilities for whom the
State ensures the availability of a free
appropriate public education; to
‘‘(II) the number of such children
in the remaining States.
‘‘(D) TRANSITION FORMULA.—For each of
the fiscal years 1998 through 2006, the Sec-
retary shall allot the remaining amount to the
remaining States in accordance with the follow-
ing:
‘‘(i) FISCAL
YEAR
1998.—For fiscal
year 1998, the Secretary shall allot to each
remaining State the sum of—
‘‘(I) 10 percent multiplied by the
amount determined for such State
under subparagraph (B); and
‘‘(II) 90 percent multiplied by
the amount determined for such State
under subparagraph (E).
‘‘(ii) FISCAL
YEAR
1999.—For fiscal
year 1999, the Secretary shall allot to each
remaining State the sum of—
‘‘(I) 20 percent multiplied by the
amount determined for such State
under subparagraph (B); and
‘‘(II) 80 percent multiplied by
the amount determined for such State
under subparagraph (E).
‘‘(iii) FISCAL YEAR 2000.—For fiscal
year 2000, the Secretary shall allot to each
remaining State the sum of—
‘‘(I) 30 percent multiplied by the
amount determined for such State
under subparagraph (B); and
‘‘(II) 70 percent multiplied by
the amount determined for such State
under subparagraph (E).
‘‘(iv) FISCAL YEAR 2001.—For fiscal
year 2001, the Secretary shall allot to each
remaining State the sum of—
‘‘(I) 40 percent multiplied by the
amount determined for such State
under subparagraph (B); and
‘‘(II) 60 percent multiplied by
the amount determined for such State
under subparagraph (E).
‘‘(v) FISCAL
YEAR
2002.—For fiscal
year 2002, the Secretary shall allot to each
remaining State the sum of—
‘‘(I) 50 percent multiplied by the
amount determined for such State
under subparagraph (B); and
‘‘(II) 50 percent multiplied by
the amount determined for such State
under subparagraph (E).
‘‘(vi) FISCAL YEAR 2003.—For fiscal
year 2003, the Secretary shall allot to each
remaining State the sum of—
‘‘(I) 60 percent multiplied by the
amount determined for such State
under subparagraph (B); and
‘‘(II) 40 percent multiplied by
the amount determined for such State
under subparagraph (E).
‘‘(vii) FISCAL YEAR 2004.—For fiscal
year 2004, the Secretary shall allot to each
remaining State the sum of—
‘‘(I) 70 percent multiplied by the
amount determined for such State
under subparagraph (B); and
‘‘(II) 30 percent multiplied by
the amount determined for such State
under subparagraph (E).
‘‘(viii) FISCAL YEAR 2005.—For fiscal
year 2005, the Secretary shall allot to each
remaining State the sum of—
‘‘(I) 80 percent multiplied by the
amount determined for such State
under subparagraph (B); and
‘‘(II) 20 percent multiplied by
the amount determined for such State
under subparagraph (E).
‘‘(ix) FISCAL YEAR 2006.—For fiscal
year 2006, the Secretary shall allot to each
remaining State the sum of—
‘‘(I) 90 percent multiplied by the
amount determined for such State
under subparagraph (B); and
‘‘(II) 10 percent multiplied by
the amount determined for such State
under subparagraph (E).
‘‘(E) BASE AMOUNT FOR 1997.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), the amount determined under this
subparagraph for a State is the amount
that bears the same proportion to the re-
maining amount (described in subpara-
graph (A)) for the fiscal year under sub-
paragraph (D) as the amount received by
the State under this section for fiscal year
1997 bears to the aggregate of the
amounts received by the remaining States
(described in subparagraph (A)) under this
section for fiscal year 1997.
‘‘(ii) REDUCTION IN AMOUNT.—If the
State received an amount under this sec-
tion for fiscal year 1997 on the basis of
children aged 3 to 5, inclusive, in such
State, but the State does not make a free
appropriate public education available to
all children with disabilities aged 3 to 5,
inclusive, in the State at the time a deter-
mination is made under subparagraph (C),
the Secretary shall reduce, on a propor-
tional basis, the amount under clause (i)
for purposes of allotting amounts under
such subparagraph.
‘‘(F) INCREASE
IN
ALLOTMENT
AMOUNT
DURING TRANSITION YEARS.—
‘‘(i) IN GENERAL.— For each of the
fiscal years 1998 through 2006, if the
amount determined for a State under sub-
paragraph (D) is an amount that is less
than the amount received by the State
under this section for fiscal year 1997
and—
‘‘(I) the amount of the difference
between such two amounts is less
than an amount equal to 10 percent
of the amount received by the State
for fiscal year 1997, then the amount
allotted to the State for the fiscal year
shall be equal to the amount received
by the State for fiscal year 1997; or
‘‘(II) the amount of the dif-
ference between such two amounts is
equal to or greater than an amount
equal to 10 percent of the amount re-
ceived by the State for fiscal year
1997, then the amount allotted to the
State for the fiscal year shall be equal
to the sum of (aa) the amount deter-
mined for the State under subpara-
graph (D), and (bb) the amount equal
to 10 percent of the amount received
by the State for fiscal year 1997.
‘‘(ii) ADJUSTMENT.—If amounts are
allotted to one or more States under clause
(i) for a fiscal year, the Secretary shall re-
duce, on a proportional basis, the amounts
allotted to the remaining States for which
the amount determined under subpara-
graph (D) is an amount that is greater
than the amount received by such States
under this section for fiscal year 1997.
‘‘(G) MINIMUM
ALLOTMENT.—For each
fiscal year for which one of the conditions of
subparagraph (F) is met (or such subparagraph
does not apply) and subject to the availability
of appropriations, for fiscal year 1998 and each
subsequent fiscal year, the amount allotted to
each remaining State (described in subpara-
graph (A)) shall not be less than an amount
equal to one-third of one percent of the remain-
ing amount (described in subparagraph (A)) for
the fiscal year.
‘‘(H) MAXIMUM ALLOTMENT.—
‘‘(i) IN
GENERAL.—For fiscal year
1998 and each subsequent fiscal year, the
amount allotted to each remaining State
(described in subparagraph (A)) under this
paragraph shall not be more than an
amount equal to—
‘‘(I) the sum of—
‘‘(aa) the number of children
with disabilities in the State,
aged 6 through 21, who are re-
ceiving special education and re-
lated services, as determined
under clause (ii); and
‘‘(bb) if the State is eligible
for a grant under section 619,
the number of such children in
the State, aged 3 through 5; mul-
tiplied by
‘‘(II) 40 percent of the average
per-pupil expenditure in public ele-
mentary and secondary schools in the
United States.
‘‘(ii) DETERMINATION OF NUMBER OF
CHILDREN.—The number of children with
disabilities receiving special education and
related services in any fiscal year shall be
equal to the number of such children re-
ceiving special education and related serv-
ices on December 1 of the fiscal year pre-
ceding the fiscal year for which the deter-
mination is made.
‘‘(iii) AVERAGE PER PUPIL EXPENDI-
TURE.—For purposes of clause (i)(II), the
term ‘average per pupil expenditure’, in
the United States, means the aggregate
current expenditures, during the second
fiscal year preceding the fiscal year for
which the computation is made (or, if sat-
isfactory data for such year are not avail-
able at the time of computation, then dur-
ing the most recent preceding fiscal year
for which satisfactory data are available)
of all local educational agencies in the
United States (which, for purposes of this
subparagraph, means the fifty States and
the District of Columbia), as the case may
be, plus any direct expenditures by the
State for operation of such agencies (with-
out regard to the source of funds from
which either of such expenditures are
made), divided by the aggregate number of
children in average daily attendance to
whom such agencies provided free public
education during such preceding year.
‘‘(4) SPECIAL RULE WITH RESPECT TO PUERTO
RICO.—
‘‘(A) IN
GENERAL.—Except as provided
subparagraph (B) and notwithstanding para-
graph (3), the amount allotted to Puerto Rico
for a fiscal year shall bear the same or lower
proportion to the remaining amount (described
in paragraph (3)(A)) as the amount received by
Puerto Rico under this section for fiscal year
1997 bears to the aggregate of the amounts re-
ceived by the remaining States (as described in
paragraph (3)(A)) under this section for fiscal
year 1997.
‘‘(B) INCREASE
IN
ALLOTMENT
AMOUNT
DURING CERTAIN FISCAL YEARS.—For each fis-
cal year for which the minimum allotment re-
quirement under paragraph (3)(G) is met, the
amount allotted to Puerto Rico for that fiscal
year shall be equal to—
‘‘(i) subject to clause (ii), the sum
of—
‘‘(I) the amount determined for
Puerto Rico under subparagraph (A);
and
‘‘(II) the amount equal to 10 per-
cent of such amount determined for
Puerto Rico under subparagraph (A);
or
‘‘(ii) if the amount determined for
Puerto Rico under clause (i) is greater
than the amount determined for Puerto
Rico under paragraph (3), the amount de-
termined for Puerto Rico under paragraph
(3).
‘‘(C) ADJUSTMENT
IN
AMOUNTS
TO
RE-
MAINING
STATES.—If the amount allotted to
Puerto Rico for a fiscal year is determined
under subparagraph (A) or (B)(i), the Sec-
retary shall reallot to the remaining States (as
described in paragraph (3)(A)), on a propor-
tional basis, any amount not otherwise allotted
to Puerto Rico.
‘‘(5) USE
OF
MOST
RECENT
POPULATION
DATA.—For the purpose of providing grants under
this part, the Secretary shall use the most recent
population data and data on children aged 3 to 21,
inclusive, living in poverty that are available and sat-
isfactory to the Secretary.
‘‘(c) USE OF FUNDS BY STATE.—
‘‘(1) RESERVATION FOR STATE ACTIVITIES.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (D), a State may reserve not more than
25 percent of the amount allotted to the State
under paragraph (1) or (3) of subsection (b) for
a fiscal year for administration and other State-
level activities in accordance with subpara-
graphs (B) and (C).
‘‘(B) STATE ADMINISTRATION.—
‘‘(i) IN GENERAL.—For the purpose
of administering programs under this part,
including the coordination of activities
under this part with, and providing tech-
nical assistance to, other programs that
provide services to children with disabil-
ities—
‘‘(I) each territory may use up to
3 percent of the amount allotted to
the territory for a fiscal year, or
$35,000, whichever is greater; and
‘‘(II) each remaining State may
use up to 3 percent of the amount al-
lotted to the State for a fiscal year, or
$450,000, whichever is greater.
‘‘(ii) USE OF AMOUNTS FOR ADMINIS-
TRATION OF PART C.—If the State edu-
cational agency is the lead agency for the
State under part C, amounts described in
clause (i) may also be used for the admin-
istration of part C.
‘‘(C) OTHER STATE-LEVEL ACTIVITIES.—A
State shall use any amounts reserved under
subparagraph (A) for a fiscal year that are not
used for administration under subparagraph
(B) for such fiscal year—
‘‘(i) for support and direct services,
including technical assistance and person-
nel development and training;
‘‘(ii) for administrative costs of mon-
itoring and complaint investigation, but
only to the extent that such costs exceed
the costs incurred for those activities dur-
ing fiscal year 1985;
‘‘(iii) to establish and implement the
mediation process required by section
615(d), including providing for the costs of
mediators and support personnel;
‘‘(iv) to assist local educational agen-
cies in meeting personnel shortages;
‘‘(v) to develop a State improvement
plan under part D;
‘‘(vi) for activities at the State and
local levels to meet the performance goals
established by the State under section
612(a)(14) and to support implementation
of the State improvement plan under part
D if the State receives funds under that
part; or
‘‘(vii) to supplement other amounts
used to develop and implement a Statewide
coordinated services system designed to im-
prove results for children and families, in-
cluding children with disabilities and their
families, but not to exceed one percent of
the amount received by the State under
this section (such system shall be coordi-
nated with and, to the extent appropriate,
build on the system of coordinated services
developed by the State under part C).
‘‘(D) REPORT ON USE OF AMOUNTS.—The
State shall, as part of the information required
to be submitted under section 612, submit a de-
scription of—
‘‘(i) how amounts reserved under sub-
paragraph (A) will be used to meet the re-
quirements of this part;
‘‘(ii) how such amounts will be allo-
cated among the activities described in
subparagraphs (B) and (C) to meet State
priorities based on input from local edu-
cational agencies; and
‘‘(iii) 
what 
percentage 
of 
such
amounts, if any, will be distributed to local
educational agencies by formula.
‘‘(2) SUBGRANTS
TO
LOCAL
EDUCATIONAL
AGENCIES AND CERTAIN STATE AGENCIES.—
‘‘(A) IN GENERAL.—The State shall pro-
vide at least 75 percent of the amount received
under a grant for a fiscal year to local edu-
cational agencies in the State that have estab-
lished their eligibility under section 613, and to
State agencies that received funds under section
614A(a) (as such section was in effect on the
day before the date of the enactment of the
IDEA Improvement Act of 1997) for fiscal year
1997 and have established their eligibility under
section 613, for use in accordance with this
part.
‘‘(B) METHODS
OF
DISTRIBUTION.—A
State may provide amounts under subpara-
graph (A) to local educational agencies and
State agencies described under such subpara-
graph on the basis of—
‘‘(i) school-age population;
‘‘(ii) school enrollment;
‘‘(iii) numbers of children with disabil-
ities receiving a free appropriate public
education;
‘‘(iv) allocations for previous fiscal
years;
‘‘(v) any two or more of the factors
described in clauses (i) through (iv); or
‘‘(vi) poverty, in combination with one
or more of the factors described in clauses
(i) through (iv).
‘‘(C) FORMER
CHAPTER
STATE
AGEN-
CIES.—
‘‘(i) IN GENERAL.—To the extent nec-
essary for each of the fiscal years 1998
and 1999, the State shall use amounts
that are available under paragraph (1)(A)
to ensure that each State agency that re-
ceived amounts in fiscal year 1994 under
subpart 2 of part D of chapter 1 of title
I of the Elementary and Secondary Edu-
cation Act of 1965 (as such subpart was in
effect on the day before the date of the en-
actment 
of 
the 
Improving 
America’s
Schools Act of 1994) receives, from the
combination of funds under paragraph
(1)(A) and funds provided under subpara-
graph (A), an amount equal to—
‘‘(I) the number of children with
disabilities, aged 6 to 21, inclusive, to
whom the agency was providing spe-
cial education and related services on
December 1 of the fiscal year for
which the funds were appropriated,
subject to the methods of distribution
under subparagraph (B); multiplied
by
‘‘(II) the per-child amount pro-
vided under such subpart for fiscal
year 1994.
‘‘(ii) 
ADDITIONAL
USE
OF
AMOUNTS.—The State may use amounts
described in clause (i) to ensure that each
local educational agency that received fis-
cal year 1994 funds under that subpart for
children who had transferred from a State-
operated or State-supported school or pro-
gram assisted under that subpart receives,
from the combination of funds available
under paragraph (1)(A) and funds pro-
vided under subparagraph (A), an amount
for each such child, aged 3 to 21, inclusive,
to whom the agency was providing special
education and related services on Decem-
ber 1 of the fiscal year for which the funds
were appropriated, equal to the per-child
amount the agency received under that
subpart for fiscal year 1994.
‘‘(iii) DETERMINATION
OF
NUMBER
OF
CHILDREN.—The number of children
counted under clause (i)(I) shall not exceed
the number of children aged 3 to 21, inclu-
sive, 
for 
whom 
the 
agency 
received
amounts in fiscal year 1994 under subpart
2 of part D of chapter 1 of title I of the
Elementary and Secondary Education Act
of 1965 (as such subpart was in effect on
the day before the date of the enactment
of the Improving America’s Schools Act of
1994).
‘‘(D) REALLOCATION OF AMOUNTS.—If a
State educational agency determines that a
local educational agency is adequately providing
a free appropriate public education to all chil-
dren with disabilities residing in the area served
by that agency with State and local funds, the
State educational agency may reallocate any
portion of amounts received under a grant
under this part that are not needed by that
local agency to other local educational agencies
in the State that are not adequately providing
special education and related services to all chil-
dren with disabilities residing in the areas they
serve.
‘‘(d) USE OF AMOUNTS BY SECRETARY OF THE IN-
TERIOR.—
‘‘(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
reservations aged 5 to 21, inclusive, enrolled in
elementary and secondary schools for Indian
children operated or funded by the Secretary of
the Interior. The amount of such payment for
any fiscal year shall be equal to 80 percent of
the amount allotted under subsection (b)(2) for
that fiscal year.
‘‘(B) CALCULATION OF NUMBER OF CHIL-
DREN.—In the case of Indian students ages 3
to 5, inclusive, who are enrolled in programs af-
filiated with Bureau of Indian Affairs (here-
after in this subsection referred to as ‘BIA’)
schools and that are required by the States in
which such schools are located to attain or
maintain State accreditation, and which schools
have such accreditation prior to the date of en-
actment of the Individuals with Disabilities
Education Act Amendments of 1991, the school
shall be allowed to count those children for the
purpose of distribution of the funds provided
under this paragraph to the Secretary of the
Interior. The Secretary of the Interior shall be
responsible for meeting all of the requirements
of this part for these children, in accordance
with paragraph (2).
‘‘(C) ADDITIONAL
REQUIREMENT.—With
respect to all other children aged 3 to 21, inclu-
sive, on reservations, the State educational
agency shall be responsible for ensuring that all
of the requirements of this part are imple-
mented.
‘‘(2) SUBMISSION OF INFORMATION.—The Sec-
retary of Education may provide the Secretary of
the Interior amounts under paragraph (1) for a fis-
cal year only if the Secretary of the Interior submits
to the Secretary of Education information that—
‘‘(A) demonstrates that the Department of
the Interior meets the appropriate require-
ments, as determined by the Secretary of Edu-
cation, of sections 612 (including monitoring
and evaluation activities) and 613;
‘‘(B) includes a description of how the Sec-
retary of the Interior will coordinate the provi-
sion of services under this part with local edu-
cational agencies, tribes and tribal organiza-
tions, and other private and Federal service
providers;
‘‘(C) includes an assurance that there are
public hearings, adequate notice of such hear-
ings, and an opportunity for comment afforded
to members of tribes, tribal governing bodies,
and affected local school boards before the
adoption of the policies, programs, and proce-
dures described in subparagraph (A);
‘‘(D) includes an assurance that the Sec-
retary of the Interior will provide such informa-
tion as the Secretary of Education may require
to comply with section 618;
‘‘(E) includes an assurance that the Sec-
retary of the Interior and the Secretary of
Health and Human Services have entered into
a memorandum of agreement, to be provided to
the Secretary of Education, for the coordination
of services, resources, and personnel between
their respective Federal, State, and local offices
and with State and local educational agencies
and other entities to facilitate the provision of
services to Indian children with disabilities re-
siding on or near reservations (such agreement
shall provide for the apportionment of respon-
sibilities and costs including, but not limited to,
child find, evaluation, diagnosis, remediation or
therapeutic measures, and (where appropriate)
equipment and medical or personal supplies as
needed for a child to remain in school or a pro-
gram); and
‘‘(F) includes an assurance that the De-
partment of the Interior will cooperate with the
Department of Education in its exercise of
monitoring and oversight of this application,
and any agreements entered into between the
Secretary of the Interior and other entities
under this part, and will fulfill its duties under
this part.
Section 616(a) shall apply to the information de-
scribed in this paragraph.
‘‘(3) PAYMENTS FOR EDUCATION AND SERVICES
FOR INDIAN CHILDREN WITH DISABILITIES AGED 3
TO 5.—
‘‘(A) IN
GENERAL.—With funds appro-
priated under subsection (e), the Secretary of
Education shall make payments to the Sec-
retary of the Interior to be distributed to tribes
or tribal organizations (as defined under section
4 of the Indian Self-Determination and Edu-
cation Assistance Act) or consortia of the above
to provide for the coordination of assistance for
special education and related services for chil-
dren with disabilities aged 3 to 5, inclusive, on
reservations served by elementary and second-
ary schools for Indian children operated or
funded by the Department of the Interior. The
amount of such payments under subparagraph
(B) for any fiscal year shall be equal to 20 per-
cent of the amount allotted under subsection
(b)(2).
cooperative agreements with the BIA, local edu-
cational agencies, and other public or private
nonprofit organizations. The tribe or tribal or-
ganization is encouraged to involve Indian par-
ents in the development and implementation of
these activities. The above entities shall, as ap-
propriate, make referrals to local, State, or
Federal entities for the provision of services or
further diagnosis.
‘‘(E) BIENNIAL REPORT.—To be eligible to
receive a grant pursuant to subparagraph (A),
the tribe or tribal organization shall provide to
the Secretary of the Interior a biennial report
of activities undertaken under this paragraph,
including the number of contracts and coopera-
tive agreements entered into, the number of
children contacted and receiving services for
each year and the estimated number of children
needing services during the 2 years following
the one in which the report is made. The Sec-
retary of the Interior shall include a summary
of this information on a biennial basis in the re-
port to the Secretary of Education required
under this subsection. The Secretary of Edu-
cation may require any additional information
from the Secretary of the Interior.
‘‘(F) PROHIBITIONS.—None of the funds
allocated under this paragraph may be used by
the Secretary of the Interior for administrative
purposes, including child count and the provi-
sion of technical assistance.
‘‘(4) PLAN FOR COORDINATION OF SERVICES.—
The Secretary of the Interior shall develop and im-
plement a plan for the coordination of services for
all Indian children with disabilities residing on res-
ervations covered under this Act. Such plan shall
provide for the coordination of services benefiting
these children from whatever source, including
tribes, the Indian Health Service, other BIA divi-
sions, and other Federal agencies. In developing
such a plan, the Secretary of the Interior shall con-
sult with all interested and involved parties. It shall
be based upon the needs of the children and the sys-
tem best suited for meeting those needs, and may in-
volve the establishment of cooperative agreements
between the BIA, other Federal agencies, and other
entities. Such plan shall also be distributed upon re-
quest to States, State and local educational agencies,
and other agencies providing services to infants, tod-
dlers, children, and youth with disabilities, to tribes,
and to other interested parties.
‘‘(5) ESTABLISHMENT OF ADVISORY BOARD.—
To meet the requirements of section 612(a)(18), the
Secretary of the Interior shall establish, not later
than 6 months after the date of the enactment of
the IDEA Improvement Act of 1997, under the Bu-
reau of Indian Affairs (BIA), an advisory board
composed of individuals involved in or concerned
with the education and provision of services to In-
dian infants, toddlers, children, and youth with dis-
abilities, including Indians with disabilities, Indian
parents or guardians of such children, teachers,
service providers, State and local educational offi-
cials, representatives of tribes or tribal organiza-
tions, representatives from State Interagency Co-
ordinating Councils in States having reservations,
and other members representing the various divi-
sions and entities of the BIA. The chairperson shall
be selected by the Secretary of the Interior. The ad-
visory board shall—
‘‘(A) assist in the coordination of services
within BIA and with other local, State, and
Federal agencies in the provision of education
for infants, toddlers, children, and youth with
disabilities;
‘‘(B) advise and assist the Secretary of the
Interior in the performance of the Secretary’s
responsibilities described in this subsection;
‘‘(C) develop and recommend policies con-
cerning effective inter- and intra-agency collabo-
ration, including modifications to regulations,
and the elimination of barriers to inter- and
intra-agency programs and activities;
‘‘(D) provide assistance and disseminate
information on best practices, effective program
coordination strategies, and recommendations
for improved educational programming for In-
dian infants, toddlers, children, and youth with
disabilities; and
‘‘(E) provide assistance in the preparation
of 
information 
required 
under 
paragraph
(2)(D).
‘‘(6) ANNUAL REPORTS.—
‘‘(A) IN
GENERAL.—The advisory board
established under paragraph (5) shall prepare
and submit to the Secretary of the Interior and
to the Congress an annual report containing a
description 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).
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of carrying out this part (except for section 619;
relating to preschool grants), there are authorized to be
appropriated to the Secretary such sums as may be nec-
essary.
‘‘SEC. 612. STATE REQUIREMENTS.
‘‘(a) IN GENERAL.—A State shall be eligible to re-
ceive a grant under this part for a fiscal year if, except
as provided in subsection (c), the State submits to the Sec-
retary information that demonstrates to the satisfaction
of the Secretary that the State has in effect policies and
procedures to ensure that it meets each of the following
requirements:
‘‘(1) 
FREE
APPROPRIATE
PUBLIC
EDU-
CATION.—
‘‘(A) IN
GENERAL.—A free appropriate
public education is available to all children with
disabilities residing in the State between the
ages of 3 and 21, inclusive.
‘‘(B) 
LIMITATION.—Subparagraph 
(A)
shall not apply with respect to children with
disabilities aged 3 to 5 and children with dis-
abilities aged 18 to 21 to the extent that such
application to those children would be inconsist-
ent with State law or practice, or the order of
any court, relating to the provision of public
education to children in such age ranges.
‘‘(2) CHILD FIND.—All children with disabilities
residing in the State, including children with disabil-
ities attending private schools, regardless of the se-
verity of such disabilities, and who are in need of
special education and related services, are identified,
located, and evaluated and that a practical method
is developed and implemented to determine which
children with disabilities are currently receiving
needed special education and related services.
‘‘(3) INDIVIDUALIZED EDUCATION PROGRAM.—
An individualized education program, or an individ-
ualized family service plan that meets the require-
ments of section 636(d), is developed, reviewed, and
revised for each child with a disability in accordance
with section 614(d).
‘‘(4) LEAST RESTRICTIVE ENVIRONMENT.—
‘‘(A) IN GENERAL.—To the maximum ex-
tent appropriate—
‘‘(i) children with disabilities, includ-
ing children in public or private institu-
tions or other care facilities, are educated
with children who are not disabled; and
‘‘(ii) special classes, separate school-
ing, or other removal of children with dis-
abilities from the regular educational envi-
ronment occurs only when the nature or
severity of the disability of a child means
that education in regular classes with the
use of supplementary aids and services
cannot be achieved satisfactorily.
‘‘(B) ADDITIONAL REQUIREMENT.—
‘‘(i) IN GENERAL.—The State’s meth-
od of distributing funds shall not result in
placements that violate the requirements of
subparagraph (A).
‘‘(ii) EXCEPTION.—If the State does
not have policies and procedures to ensure
compliance with clause (i), the State shall
provide the Secretary an assurance that it
will revise the funding mechanism as soon
as feasible to ensure that such mechanism
does not result in such placements.
‘‘(5) PROCEDURAL SAFEGUARDS.—
‘‘(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 assure that testing
and evaluation materials and procedures uti-
lized for the purposes of evaluation and place-
ment of children with disabilities will be se-
lected and administered so as not to be racially
or culturally discriminatory. Such materials or
procedures shall be provided and administered
in the child’s native language or mode of com-
munication, unless it clearly is not feasible to
do so, and no single procedure shall be the sole
criterion for determining an appropriate edu-
cational program for a child.
‘‘(6) EVALUATION.—Children with disabilities
are evaluated in accordance with subsections (a)
through (c) of section 614.
‘‘(7) CONFIDENTIALITY.—Agencies in the State
comply with section 617(c) (relating to the confiden-
tiality of records and information).
‘‘(8) TRANSITION FROM PART C TO PRESCHOOL
PROGRAMS.—Children participating in early-inter-
vention programs assisted under part C, and who
will participate in preschool programs assisted under
this part, experience a smooth transition to those
preschool programs in a manner consistent with sec-
tion 637(a)(7). By the third birthday of such a
child, an individualized education program or, if con-
sistent with sections 614(d)(1)(B) and 636(d), an
individualized family service plan, has been devel-
oped and is being implemented for the child. The
local educational agency will participate in transition
planning conferences by the designated lead agency
under section 637(a)(7).
‘‘(9) CHILDREN IN PRIVATE SCHOOLS.—
‘‘(A) IN GENERAL.—To the extent consist-
ent with the number and location of children
with disabilities in the State who are enrolled in
private elementary and secondary schools, pro-
vision is made for the participation of such chil-
dren in the program assisted or carried out
under this part by providing for such children
special education and related services, except if
the Secretary has arranged for services to such
children under subsection (f).
‘‘(B) CHILDREN PLACED IN, OR REFERRED
TO, PRIVATE SCHOOLS BY PUBLIC AGENCIES.—
‘‘(i) IN GENERAL.—Children with dis-
abilities in private schools and facilities are
provided special education and related
services, in accordance with an individual-
ized education program, at no cost to their
parents, if they are placed in, or referred
to, such schools or facilities by the State or
a local educational agency in order to com-
ply with this part or with any other provi-
sion of law requiring the provision of spe-
cial education and related services to all
children with disabilities in the State.
‘‘(ii) ADDITIONAL
REQUIREMENTS.—
In all cases described in clause (i)—
‘‘(I) children with disabilities are
placed in, or referred to, only those
private schools and facilities that the
State educational agency determines
meet standards that apply to State
and local educational agencies; and
‘‘(II) children served in such pri-
vate schools or facilities retain access
to a free appropriate public education
in accordance with this part.
‘‘(C) PAYMENT FOR EDUCATION OF CHIL-
DREN PLACED IN PRIVATE SCHOOLS WITHOUT
CONSENT
OF
OR
REFERRAL
BY
THE
PUBLIC
AGENCY.—
‘‘(i) IN GENERAL.—If the parents of a
child with a disability that had previously
received special education and related serv-
ices under the authority of a public agency
have enrolled their child in a private ele-
mentary or secondary school without the
consent of or referral by the public agency,
as a result of mediation described in sec-
tion 615(d), or as a result of a decision
rendered under the procedural safeguards
of section 615, the public agency may be
required to reimburse the parents for the
cost of the enrollment, except that the cost
of the reimbursement may be reduced or
denied—
‘‘(I) if, at least 10 school days
prior to the removal of the child from
the public school, the parents did not
give a written statement of their con-
cerns to the public agency and notice
that they intend to place their child in
a private school at public expense;
‘‘(II) if, prior to the removal of
the child from the public school, the
parents did not make the child avail-
able for an initial assessment and
evaluation by the local educational
agency prior to enrollment in the pri-
vate school; or
‘‘(III) at the discretion of the
judge.
‘‘(ii) 
EXCEPTION.—Notwithstanding
the notice requirement in clause (i)(I), the
cost of the reimbursement may not be re-
duced or denied for failure to provide such
notice if—
‘‘(I) the parent is illiterate or
cannot write in English;
‘‘(II) 
compliance 
with 
clause
(i)(I) would likely result in physical or
serious emotional harm to the child;
‘‘(III) the school prevented the
parent from providing such notice; or
‘‘(IV) the parent had not received
notice, pursuant to section 615(d), of
the notice requirement in clause (i)(I).
‘‘(10) STATE EDUCATIONAL AGENCY RESPON-
SIBLE FOR GENERAL SUPERVISION.—
‘‘(A) IN GENERAL.—The State educational
agency is responsible for ensuring that—
‘‘(i) the requirements of this part are
met; and
‘‘(ii) all educational programs for chil-
dren with disabilities in the State, includ-
ing all such programs administered by any
other State or local agency—
‘‘(I) are under the general super-
vision of individuals in the State who
are responsible for educational pro-
grams for children with disabilities;
and
‘‘(II) meet the educational stand-
ards of the State educational agency.
‘‘(B) 
LIMITATION.—Subparagraph 
(A)
shall not limit the responsibility of agencies in
the State other than the State educational
agency to provide, or pay for some or all of the
costs of, a free appropriate public education for
any child with a disability in the State.
‘‘(11) OBLIGATIONS RELATED TO AND METH-
ODS OF ENSURING SERVICES.—
‘‘(A) ESTABLISHING RESPONSIBILITY FOR
SERVICES.—The Chief Executive Officer or des-
ignee of the officer shall ensure that an inter-
agency agreement or other mechanism for inter-
agency coordination is in effect between each
public agency described in subparagraph (B)
and the appropriate educational agency within
the State, in order to ensure that all services
described in subparagraph (B)(i) that are need-
ed to ensure a free appropriate public education
are provided, including the provision of such
services during the pendency of any dispute
under clause (iii). Such agreement or mecha-
nism shall include the following:
‘‘(i) AGENCY
FINANCIAL
RESPON-
SIBILITY.—An identification of, or a meth-
od for defining, the financial responsibility
of each agency for providing services de-
scribed in subparagraph (B)(i) to ensure a
free appropriate public education to chil-
dren with disabilities provided that the fi-
nancial responsibility of each public agency
described in subparagraph (B), including
the State Medicaid agency and other public
insurers of children with disabilities, shall
precede the financial responsibility of the
local education agency (or the State agency
responsible for developing the child’s IEP).
‘‘(ii) CONDITIONS AND TERMS OF RE-
IMBURSEMENT.—The conditions, terms,
and procedures under which a local edu-
cational agency shall be reimbursed by
other agencies.
‘‘(iii) INTERAGENCY DISPUTES.—Pro-
cedures for resolving interagency disputes
(including procedures under which local
education agencies may initiate proceed-
ings) under the agreement or other mecha-
nism to secure reimbursement from other
agencies or otherwise implement the provi-
sions of the agreement or mechanism.
‘‘(iv) COORDINATION
OF
SERVICES
PROCEDURES.—Policies and procedures for
agencies to determine and identify the
interagency coordination responsibilities of
each agency to promote the coordination
and timely and appropriate delivery of
services described in subparagraph (B)(i).
‘‘(B) OBLIGATION OF PUBLIC AGENCY.—
‘‘(i) IN
GENERAL.—If any public
agency other than an educational agency is
otherwise obligated under Federal or State
law, or assigned responsibility under State
policy or pursuant to subparagraph (A), to
provide or pay for any services that are
also considered special education or related
services (such as, but not limited to, serv-
ices described in sections 602(1) relating
to assistive technology devices, 602(2) re-
lating to assistive technology services,
602(20) 
relating 
to 
related 
services,
602(27) related to supplementary aids and
services, and 602(29) relating to transition
services) that are necessary for ensuring a
free appropriate public education to chil-
dren with disabilities within the State,
such public agency shall fulfill that obliga-
tion or responsibility, either directly or
through contract or other arrangement.
‘‘(ii) REIMBURSEMENT FOR SERVICES
BY PUBLIC AGENCY.—If a public agency
other than an educational agency fails to
provide or pay for the special education
and related services described in clause (i),
the local educational agency (or State
agency responsibility for developing the
child’s IEP) shall provide or pay for such
services to the child. Such local education
agency or State agency may then claim re-
imbursement for the services from the pub-
lic agency that failed to provide or pay for
such services and such public agency shall
reimburse the local education agency or
State agency pursuant to the terms of the
interagency agreement described in sub-
paragraph (A)(i) according to the proce-
dures established in such agreement pursu-
ant to subparagraph (A)(ii).
‘‘(C) SPECIAL RULE.—The requirements of
subparagraph (A) may be met through—
‘‘(i) State statute or regulation;
‘‘(ii) signed agreements between re-
spective agency officials that clearly iden-
tify the responsibilities of each agency re-
lating to the provision of services; or
‘‘(iii) other appropriate methods as
determined by the Chief Executive Officer
or designee of the officer.
‘‘(12) PROCEDURAL REQUIREMENTS RELATING
TO
LOCAL
EDUCATIONAL
AGENCY
ELIGIBILITY.—
The State educational agency will not make a final
determination that a local educational agency is not
eligible for assistance under this part without first
affording that agency reasonable notice and an op-
portunity for a hearing.
‘‘(13) COMPREHENSIVE SYSTEM OF PERSONNEL
DEVELOPMENT.—The State has established and im-
plemented, consistent with the purposes of this title
and section 635(a)(7), a comprehensive system of
personnel development that is designed to ensure an
adequate supply of qualified special education and
related services personnel necessary to carry out this
part, including—
‘‘(A) a statewide, coordinated personnel-de-
velopment plan that meets the personnel devel-
opment requirements of a State improvement
plan under section 683; or
‘‘(B) a personnel-development plan, devel-
oped in consultation with parents of children
with disabilities, State and local educational
agencies, institutions of higher education, and
professional associations that—
‘‘(i) addresses current and projected
needs for special education and related
services personnel throughout the State;
‘‘(ii) addresses the need for the pre-
service and in-service preparation of per-
sonnel throughout the State, including reg-
ular education personnel, to provide edu-
cational services to children with disabil-
ities;
‘‘(iii) includes a system or procedures
for recruiting, preparing, and retaining
qualified personnel, including personnel
with disabilities and personnel from groups
that are underrepresented in the field of
special education and related services; and
‘‘(iv) is integrated, to the maximum
extent possible, with other professional de-
velopment plans and activities.
‘‘(14) PERSONNEL STANDARDS.—
‘‘(A) IN GENERAL.—The State educational
agency has established and maintains standards
to ensure that personnel necessary to carry out
this part are appropriately and adequately pre-
pared and trained.
‘‘(B) 
STANDARDS
DESCRIBED.—Such
standards shall—
‘‘(i) be consistent with any State-ap-
proved or State-recognized certification, li-
censing, registration, or other comparable
requirements that apply to the professional
discipline in which those personnel are pro-
viding special education or related services;
‘‘(ii) to the extent the standards de-
scribed in subparagraph (A) are not based
on the highest requirements in the State
applicable to a specific profession or dis-
cipline, the State is taking steps to require
retraining or hiring of personnel that meet
appropriate professional requirements in
the State; and
‘‘(iii) allow paraprofessionals and as-
sistants who are appropriately trained and
supervised, in accordance with State law,
regulations, or written policy, in meeting
the requirements of this part to be used to
assist in the provision of special education
and related services to children with dis-
abilities under this part.
‘‘(C) EXCEPTION.—If the State determines
that, within a geographic area of the State
there is a shortage of an appropriate number
and type of personnel to provide the special
education and related services to children with
disabilities within such area, and the appro-
priate public agency has taken steps to recruit
and hire such personnel, the State may, subject
to public comment and review, temporarily sus-
pend the standards of subparagraph (B)(ii)—
‘‘(i) consistent with State law, for the
purpose of recruiting and hiring for such
shortage areas the most qualified available
individuals who are making progress in ap-
plicable coursework; and
‘‘(ii) for a period not to exceed 3
years.
‘‘(15) PERFORMANCE
GOALS
AND
INDICA-
TORS.—The State—
‘‘(A) has established goals for the perform-
ance of children with disabilities in the State
that—
‘‘(i) will promote the purposes of this
title, as stated in section 601(d); and
‘‘(ii) are consistent, to the maximum
extent appropriate, with other goals and
standards established by the State;
‘‘(B) has established performance indica-
tors the State will use to assess progress toward
achieving those goals that, at a minimum, ad-
dress the performance of children with disabil-
ities on assessments, drop-out rates, and grad-
uation rates;
‘‘(C) will, every two years, report to the
Secretary and the public on the progress of the
State, and of children with disabilities in the
State, toward meeting the goals established
under subparagraph (A); and
‘‘(D) based on its assessment of that
progress, will revise its State improvement plan
under part D as may be needed to improve its
performance, if the State receives assistance
under such part.
‘‘(16) PARTICIPATION IN ASSESSMENTS.—
‘‘(A) IN GENERAL.—Children with disabil-
ities are included in general State and district-
wide assessment programs, with appropriate ac-
commodations, where necessary. As appro-
priate, the State or local educational agency—
‘‘(i) develops guidelines for the par-
ticipation of children with disabilities in al-
ternate assessments for those children who
cannot participate in State and district-
wide assessment programs; and
‘‘(ii) develops and, beginning not later
than July 1, 2000, conducts those alter-
nate assessments.
‘‘(B) REPORTS.—The State educational
agency makes available to the public, and re-
ports to the public with the same frequency and
in the same detail as it reports on the assess-
ment of nondisabled children, the following:
‘‘(i) The number of children with dis-
abilities participating in regular assess-
ments.
‘‘(ii) The number of those children
participating in alternate assessments.
‘‘(iii) The performance of those chil-
dren on regular assessments (beginning
not later than July 1, 1998) and on alter-
nate assessments (not later than July 1,
2000), if doing so would be statistically
sound and would not result in the disclo-
sure of performance results identifiable to
individual children.
‘‘(17) SUPPLEMENTATION
OF
STATE, LOCAL,
AND OTHER FEDERAL FUNDS.—
‘‘(A) IN
GENERAL.—The State ensures
that amounts provided under a grant to the
State under this part, except as provided in
subparagraph (B), will be used to supplement
State, local, and other Federal funds (including
funds not under the direct control of State or
local educational agencies) expended for special
education and related services, and not to sup-
plant those funds.
‘‘(B) WAIVER.—The Secretary may waive,
in whole or in part, the requirements of sub-
paragraph (A) if the Secretary determines that
the State has provided clear evidence that all
children with disabilities in the State have avail-
able a free appropriate public education or that,
such a waiver would allow the State to improve
the delivery of special education and related
services to children with disabilities in the
State.
‘‘(18) PUBLIC
PARTICIPATION.—Prior to the
adoption of any policies and procedures needed to
comply with this section (including any amendments
to such policies and procedures), the State ensures
that there are public hearings, adequate notice of
the hearings, and an opportunity for comment avail-
able to the general public, including individuals with
disabilities and parents of children with disabilities.
‘‘(19) STATE ADVISORY PANEL.—
‘‘(A) IN GENERAL.—The State has estab-
lished and maintains an advisory panel for the
purpose of providing policy guidance with re-
spect to special education and related services
for children with disabilities in the State.
‘‘(B) MEMBERSHIP.—Such advisory panel
shall consist of members appointed by the Gov-
ernor, or any other official authorized under
State law to make such appointments, that is
representative of the State population and that
is composed of individuals involved in, or con-
cerned with, the education of children with dis-
abilities, including—
‘‘(i) parents of children with disabil-
ities;
‘‘(ii) individuals with disabilities;
‘‘(iii) teachers;
‘‘(iv) representatives of institutions of
higher education that prepare special edu-
cation and related services personnel;
‘‘(v) State and local education offi-
cials;
‘‘(vi) administrators of programs for
children with disabilities;
‘‘(vii) representatives of other State
agencies involved in the financing or deliv-
ery of related services to children with dis-
abilities;
‘‘(viii) representatives of private and
charter schools;
‘‘(ix) at least one representative of a
vocational, community, or business organi-
zation concerned with the provision of
transition services to children with disabil-
ities; and
‘‘(x) representatives from the State
juvenile and adult corrections agencies.
‘‘(C) SPECIAL RULE.—A majority of the
members of the panel shall be individuals with
disabilities or parents of children with disabil-
ities.
‘‘(D) DUTIES.—The advisory panel shall—
‘‘(i) advise the State educational agen-
cy of unmet needs within the State in the
education of children with disabilities;
‘‘(ii) comment publicly on any rules or
regulations proposed by the State regard-
ing—
‘‘(I) the education of children
with disabilities; and
‘‘(II) the procedures for distribu-
tion of amounts received by the State
under a grant under this part;
‘‘(iii) advise the State educational
agency in developing evaluations and re-
porting on data to the Secretary under sec-
tion 618;
‘‘(iv) advise the State educational
agency in developing corrective action
plans to address findings identified in Fed-
eral monitoring reports under this part;
and
‘‘(v) advise the State educational
agency in developing and implementing
policies relating to the coordination of serv-
ices for children with disabilities.
‘‘(b) STATE EDUCATIONAL AGENCY AS PROVIDER OF
FREE APPROPRIATE PUBLIC EDUCATION
OR DIRECT
SERVICES.—If the State educational agency provides free
appropriate public education to children with disabilities,
or provides direct services to such children, such agency—
‘‘(1) shall comply with any additional require-
ments of section 613(a), as if such agency were a
local educational agency; and
‘‘(2) may use amounts that are otherwise avail-
able to such agency under this part to serve those
children without regard to section 613(a)(2)(A)(i)
(relating to excess costs).
‘‘(c) EXCEPTION FOR PRIOR STATE PLANS.—
‘‘(1) IN GENERAL.—If a State has on file with
the Secretary policies and procedures that dem-
onstrate that such State meets any requirement of
subsection (a), including any policies and procedures
filed under this part as in effect before the date of
the enactment of the IDEA Improvement Act of
1997, the Secretary shall consider such State to
have met such requirement for purposes of receiving
a grant under this part.
‘‘(2) MODIFICATIONS MADE BY STATE.—Sub-
ject to paragraph (3), an application submitted by a
State in accordance with this section shall remain in
effect until the State submits to the Secretary such
modifications as the State deems necessary. This
section shall apply to a modification to an applica-
tion to the same extent and in the same manner as
this section applies to the original plan.
‘‘(3) MODIFICATIONS REQUIRED BY THE SEC-
RETARY.—The Secretary may require a State to
amend its application at any time as a result of the
Secretary’s compliance reviews under parts B and C.
The Secretary shall reduce or shall not provide any
further payments to the State educational agency
until the Secretary is satisfied that the State edu-
cational agency is complying with that requirement.
‘‘(d) APPROVAL BY THE SECRETARY.—
‘‘(1) IN GENERAL.—If the Secretary determines
that a State is eligible to receive a grant under this
part, the Secretary shall notify the State of that de-
termination.
‘‘(2) NOTICE
AND
HEARING.—The Secretary
shall not make a final determination that a State is
not eligible to receive a grant under this part until
after providing the State—
‘‘(A) with reasonable notice; and
‘‘(B) with an opportunity for a hearing.
‘‘(e) ASSISTANCE UNDER OTHER FEDERAL PRO-
GRAMS.—Nothing in this title permits a State to reduce
medical and other assistance available, or to alter eligi-
bility, under titles V and XIX of the Social Security Act
with respect to the provision of a free appropriate public
education for children with disabilities within the State.
‘‘(f) 
BY-PASS
FOR
CHILDREN
IN
PRIVATE
SCHOOLS.—
‘‘(1) IN GENERAL.—If, on the date of enact-
ment of the Education of the Handicapped Act
Amendments of 1983, a State educational agency is
prohibited by law from providing for the participa-
tion in special programs of children with disabilities
enrolled in private elementary and secondary schools
as required by subsection (a)(9), the Secretary shall,
notwithstanding such provision of law, arrange for
the provision of services to such children through ar-
rangements which shall be subject to the require-
ments of such subsection.
‘‘(2) PAYMENTS.—
‘‘(A) DETERMINATION
OF
AMOUNTS.—If
the Secretary arranges for services pursuant to
this subsection, the Secretary, after consulta-
tion with the appropriate public and private
school officials, shall pay to the provider of such
services for a fiscal year an amount per child
that does not exceed the amount determined by
dividing—
‘‘(i) the total amount received by the
State under this part for such fiscal year;
by
‘‘(ii) the number of children with dis-
abilities served in the prior year, as re-
ported to the Secretary by the State under
section 618.
‘‘(B) 
WITHHOLDING
OF
CERTAIN
AMOUNTS.—Pending final resolution of any in-
vestigation or complaint that could result in a
determination under this subsection, the Sec-
retary may withhold from the allocation of the
affected State educational agency the amount
the Secretary estimates would be necessary to
pay the cost of services described in subpara-
graph (A).
‘‘(C) PERIOD OF PAYMENTS.—The period
under which payments are made under sub-
paragraph (A) shall continue until the Sec-
retary determines that there will no longer be
any failure or inability on the part of the State
educational agency to meet the requirements of
subsection (a)(9).
‘‘(3) NOTICE AND HEARING.—
‘‘(A) IN
GENERAL.—The Secretary shall
not take any final action under this subsection
until the State educational agency affected by
such action has had an opportunity, for at least
45 days after receiving written notice thereof,
to submit written objections and to appear be-
fore the Secretary or the Secretary’s designee
to show cause why such action should not be
taken.
‘‘(B) REVIEW OF ACTION.—If a State edu-
cational agency is dissatisfied with the Sec-
retary’s final action after a proceeding under
subparagraph (A), such agency may, not later
than 60 days after notice of such action, file
with the United States court of appeals for the
circuit in which such State is located a petition
for review of that action. A copy of the petition
shall be forthwith transmitted by the clerk of
the court to the Secretary. The Secretary there-
upon shall file in the court the record of the
proceedings on which the Secretary based the
Secretary’s action, as provided in section 2112
of title 28, United States Code.
‘‘(C) REVIEW OF FINDINGS OF FACT.—The
findings of fact by the Secretary, if supported
by substantial evidence, shall be conclusive, but
the court, for good cause shown, may remand
the case to the Secretary to take further evi-
dence, and the Secretary may thereupon make
new or modified findings of fact and may mod-
ify the Secretary’s previous action, and shall file
in the court the record of the further proceed-
ings. Such new or modified findings of fact
shall likewise be conclusive if supported by sub-
stantial evidence.
‘‘(D) JURISDICTION
OF
COURT
OF
AP-
PEALS; REVIEW BY UNITED STATES SUPREME
COURT.—Upon the filing of a petition under
subparagraph (B), the United States court of
appeals shall have jurisdiction to affirm the ac-
tion of the Secretary or to set it aside, in whole
or in part. The judgment of the court shall be
subject to review by the Supreme Court of the
United States upon certiorari or certification as
provided in section 1254 of title 28, United
States Code.
‘‘SEC. 613. LOCAL EDUCATIONAL AGENCY REQUIREMENTS.
‘‘(a) IN GENERAL.—A local educational agency shall
be eligible for assistance under this part for any fiscal year
if, except as provided in subsection (b), such agency sub-
mits to the State educational agency information that
demonstrates to the satisfaction of the State educational
agency the following:
‘‘(1) CONSISTENCY
WITH
STATE
POLICIES.—
The local educational agency, in providing for the
education of children with disabilities within its ju-
risdiction, has in effect policies, procedures, and pro-
grams that are consistent with the State policies and
procedures established under section 612.
‘‘(2) USE OF AMOUNTS.—
‘‘(A) IN GENERAL.—Amounts provided to
the local educational agency under this part—
‘‘(i) shall be used only to pay the ex-
cess costs of providing special education
and related services to children with dis-
abilities;
‘‘(ii) shall be used to supplement
State, local, and other Federal funds and
not to supplant such funds;
‘‘(iii) except as provided in subpara-
graph (B), may not be used to reduce the
level of expenditures for the education of
children with disabilities made by the local
educational agency from State or local
funds below the level of those expenditures
for the preceding fiscal year;
‘‘(iv) may be used, notwithstanding
clause (i) or any other provision of this
part, for the costs of special education and
related services provided in a regular class
or other education related setting to a
child with a disability in accordance with
the child’s individualized education pro-
gram, even if one or more nondisabled chil-
dren benefit from those services; and
‘‘(v) may be used, in accordance with
subsection (f) and notwithstanding clause
(i) or any other provision of this part, to
develop and implement a coordinated serv-
ices system.
100
‘‘(B) EXCEPTION.—Notwithstanding the
restriction in subparagraph (A)(iii), a local edu-
cation agency may reduce the level of expendi-
tures where such reduction is attributable to—
‘‘(i) the departure, by retirement or
otherwise, of special education personnel;
‘‘(ii) a decrease in the enrollment of
children with disabilities;
‘‘(iii) the termination of the obligation
of the agency, consistent with this part, to
provide a program of special education to
a particular child with a disability that is
an exceptionally costly program, as deter-
mined by the State educational agency, be-
cause the child—
‘‘(I) has left the jurisdiction of
the agency;
‘‘(II) has reached the age at
which the obligation of the agency to
provide a free appropriate public edu-
cation to the child has terminated; or
‘‘(III) no longer needs such pro-
gram of special education; or
‘‘(iv) the termination of costly expend-
itures for long-term purchases, such as the
101
acquisition of equipment or the construc-
tion of school facilities.
‘‘(3) INFORMATION FOR STATE EDUCATIONAL
AGENCY.—The local educational agency shall provide
the State educational agency with information nec-
essary to enable the State educational agency to
carry out its duties under this part, including, with
respect to paragraphs (14) and (15) of section
612(a), information relating to the performance of
children with disabilities participating in programs
carried out under this part.
‘‘(4) PUBLIC
INFORMATION.—The local edu-
cational agency shall make available to parents of
children with disabilities and to the general public
all documents relating to the eligibility of such agen-
cy under this part.
‘‘(b) EXCEPTION FOR PRIOR LOCAL PLANS.—
‘‘(1) IN GENERAL.—If a local educational agen-
cy or State agency has on file with the State edu-
cational agency policies and procedures that dem-
onstrate that such local educational agency, or such
State agency, as the case may be, meets any require-
ment of subsection (a), including any policies and
procedures filed under this part as in effect before
the date of the enactment of IDEA Improvement
102
Act of 1997, the State educational agency shall con-
sider such local educational agency or State agency,
as the case may be, to have met such requirement
for purposes of receiving assistance under this part.
‘‘(2) MODIFICATION
MADE
BY
LOCAL
EDU-
CATIONAL AGENCY.—Subject to paragraph (3), an
application submitted by a local educational agency
in accordance with this section shall remain in effect
until the such agency submits to the State edu-
cational agency such modifications as the local edu-
cational agency deems necessary.
‘‘(3) MODIFICATIONS
REQUIRED
BY
STATE
EDUCATIONAL
AGENCY.—The 
State 
educational
agency may require a local educational agency to
amend its application at anytime as a result of the
compliance reviews of the State educational agency
under parts B and C. This paragraph shall apply to
a modification to an application to the same extent
and in the same manner as this section applies to
the original plan.
‘‘(c) NOTIFICATION OF LOCAL EDUCATIONAL AGEN-
CY OR STATE AGENCY IN CASE OF INELIGIBILITY.—If the
State educational agency determines that a local edu-
cational agency or State agency is not eligible under this
section, the State educational agency shall notify such
103
local educational agency or State agency, as the case may
be, of that determination and shall provide such local edu-
cational agency or State agency with reasonable notice and
an opportunity for a hearing.
‘‘(d) LOCAL EDUCATIONAL AGENCY COMPLIANCE.—
‘‘(1) IN
GENERAL.—If the State educational
agency, after reasonable notice and an opportunity
for a hearing, finds that a local educational agency
or State agency that has been determined to be eligi-
ble under this section is failing to comply with any
requirement described in subsection (a), the State
educational agency shall reduce or shall not provide
any further payments to the local educational agency
or State agency until the State educational agency
is satisfied that the local educational agency or State
agency, as the case may be, is complying with that
requirement.
‘‘(2) ADDITIONAL
REQUIREMENT.—Any State
agency or local educational agency in receipt of a no-
tice described in paragraph (1) shall, by means of
public notice, take such measures as may be nec-
essary to bring the pendency of an action pursuant
to this subsection to the attention of the public with-
in the jurisdiction of such agency.
104
‘‘(3) CONSIDERATION.—In carrying out its re-
sponsibilities under paragraph (1), the State edu-
cational agency shall consider any decision made in
a hearing held under section 615 that is adverse to
the local educational agency or State agency involved
in that decision.
‘‘(e) JOINT ESTABLISHMENT OF ELIGIBILITY.—
‘‘(1) IN GENERAL.—A State educational agency
may require a local educational agency to establish
its eligibility jointly with another local educational
agency if the State educational agency determines
that the local educational agency would be ineligible
under this section because the local educational
agency would not be able to establish and maintain
programs of sufficient size and scope to effectively
meet the needs of children with disabilities.
‘‘(2) AMOUNT OF PAYMENTS.—If a State edu-
cational agency requires the joint establishment of
eligibility under paragraph (1), the total amount of
funds made available to the affected local edu-
cational agencies shall be equal to the sum of the
payments that each such local educational agency
would have received under section 611(c) if such
agencies were eligible for such payments.
105
‘‘(3) REQUIREMENTS.—Local educational agen-
cies that establish joint eligibility under this sub-
section shall—
‘‘(A) adopt policies and procedures that
are consistent with the State’s policies and pro-
cedures under section 612(a); and
‘‘(B) be jointly responsible for implement-
ing programs that receive assistance under this
part.
‘‘(4) REQUIREMENTS FOR EDUCATIONAL SERV-
ICE AGENCIES.—
‘‘(A) IN GENERAL.—If an educational serv-
ice agency is required by State law to carry out
programs under this part, the joint responsibil-
ities given to local educational agencies under
this subsection shall—
‘‘(i) not apply to the administration
and disbursement of any payments re-
ceived by that educational service agency;
and
‘‘(ii) be carried out only by that edu-
cational service agency.
106
‘‘(B) ADDITIONAL
REQUIREMENT.—Not-
withstanding any other provision of this sub-
section, an educational service agency shall pro-
vide for the education of children with disabil-
ities in the least restrictive environment, as re-
quired by section 612(a)(4).
‘‘(f) COORDINATED SERVICES SYSTEM.—
‘‘(1) IN GENERAL.—A local educational agency
may not use more than 5 percent of the amount
such agency receives under this part for any fiscal
year, in combination with other amounts (which
shall include amounts other than education funds),
to develop and implement a coordinated services sys-
tem designed to improve results for children and
families, including children with disabilities and their
families.
‘‘(2) ACTIVITIES.—In implementing a coordi-
nated services system under this subsection, a local
educational agency may carry out activities which in-
clude—
‘‘(A) improving the effectiveness and effi-
ciency of service delivery, including developing
strategies that promote accountability for re-
sults;
107
‘‘(B) service coordination and case man-
agement that facilitates the linkage of individ-
ualized education programs under this part and
individualized family service plans under part C
with individualized service plans under multiple
Federal and State programs, such as title I of
the Rehabilitation Act of 1973 (vocational reha-
bilitation), title XIX of the Social Security Act
(Medicaid), and title XVI of the Social Security
Act (supplemental security income);
‘‘(C) developing and implementing inter-
agency financing strategies for the provision of
education, health, mental health, and social
services, including transition services and relat-
ed services under this title; and
‘‘(D) interagency personnel development
for individuals working on coordinated services.
‘‘(3) COORDINATION WITH CERTAIN PROJECTS
UNDER ELEMENTARY AND SECONDARY EDUCATION
ACT OF 1965.—If a local educational agency is carry-
ing out a coordinated services project under title XI
of the Elementary and Secondary Education Act of
1965 and a coordinated services project under this
part in the same schools, such agency shall use
108
amounts under this subsection in accordance with
the requirements of that title.
‘‘(g) DIRECT
SERVICES
BY
THE
STATE
EDU-
CATIONAL AGENCY.—
‘‘(1) IN GENERAL.—A State educational agency
shall use the payments that would otherwise have
been available to a local educational agency or to a
State agency to provide special education and relat-
ed services directly to children with disabilities resid-
ing in the area served by that local agency, or for
whom that State agency is responsible, if the State
educational agency determines that the local edu-
cation agency or State agency, as the case may be—
‘‘(A) has not provided the information
needed to establish the eligibility of such agency
under this section;
‘‘(B) is unable to establish and maintain
programs of free appropriate public education
that meet the requirements of subsection (a);
‘‘(C) is unable or unwilling to be consoli-
dated with one or more local educational agen-
cies in order to establish and maintain such
programs; or
‘‘(D) has one or more children with disabil-
ities who can best be served by a regional or
109
State program or service delivery system de-
signed to meet the needs of such children.
‘‘(2) MANNER AND LOCATION OF EDUCATION
AND SERVICES.—The State educational agency may
provide special education and related services under
paragraph (1) in such manner and at such locations
(including regional or State centers) as the State
agency considers appropriate. Such education and
services shall be provided in accordance with this
part.
‘‘(h) STATE AGENCY ELIGIBILITY.—Any State agen-
cy that desires to receive a subgrant for any fiscal year
under section 611(c) shall demonstrate to the satisfaction
of the State educational agency that—
‘‘(1) all children with disabilities who are par-
ticipating in programs and projects funded under
this part receive a free appropriate public education,
and that those children and their parents are pro-
vided all the rights and procedural safeguards de-
scribed in this part; and
‘‘(2) the agency meets such other conditions of
this section as the Secretary determines to be appro-
priate.
110
‘‘SEC. 614. EVALUATIONS, REEVALUATIONS, INDIVIDUAL-
IZED 
EDUCATION 
PROGRAMS, 
AND 
EDU-
CATIONAL PLACEMENTS.
‘‘(a) EVALUATIONS AND REEVALUATIONS.—
‘‘(1) INITIAL EVALUATIONS.—
‘‘(A) IN
GENERAL.—A State educational
agency, other State agency, or local educational
agency shall conduct an initial evaluation, in ac-
cordance with this paragraph and subsection
(b), before the initial provision of special edu-
cation and related services to a child with a dis-
ability under this part.
‘‘(B) PROCEDURES.—Such initial evalua-
tion shall consist of procedures—
‘‘(i) to determine whether a child is a
child with a disability (as defined in sec-
tion 602(3)); and
‘‘(ii) to determine the educational
needs of such child.
‘‘(C) PARENTAL CONSENT.—
‘‘(i) IN GENERAL.—The agency pro-
posing to conduct an initial evaluation to
determine if the child qualifies as a child
with a disability as defined in section
602(3)(A) or 602(3)(B) shall obtain an in-
formed consent from the parent of such
111
child before the evaluation is conducted.
Parental consent for evaluation shall not
be construed as consent for placement for
receipt of special education and related
services.
‘‘(ii) REFUSAL.—If the parents of
such child refuse consent for the evalua-
tion, the agency may continue to pursue an
evaluation by utilizing the mediation and
due process procedures under section
615(e).
‘‘(2) REEVALUATIONS.—A local educational
agency shall ensure that a reevaluation of each child
with a disability is conducted—
‘‘(A) if conditions warrant a reevaluation
or if the child’s parent or teacher requests a re-
evaluation, but at least once every 3 years; and
‘‘(B) in accordance with subsections (b)
and (c).
‘‘(b) EVALUATION PROCEDURES.—
‘‘(1) NOTICE.—The local educational agency
shall provide notice to the parents of a child with a
disability, in accordance with subsections (b)(3),
(b)(4), and (c) of section 615, that describes any
112
evaluation procedures such agency proposes to
conduct.
‘‘(2) CONDUCT OF EVALUATION.—In conduct-
ing the evaluation, the local educational agency
shall—
‘‘(A) use a variety of assessment tools and
strategies to gather relevant functional and de-
velopmental information, including information
provided by the parent, that may assist in de-
termining whether the child is a child with a
disability and the content of the child’s individ-
ualized education program, including informa-
tion related to enabling the child to be involved
in and progress in the general curriculum or,
for preschool children, to participate in appro-
priate activities;
‘‘(B) not use any single procedure as the
sole criterion for determining whether a child is
a child with a disability or determining an ap-
propriate educational program for the child;
and
‘‘(C) use technically sound instruments
that may assess the relative contribution of cog-
nitive and behavioral factors, in addition to
physical or developmental factors.
113
‘‘(3) ADDITIONAL REQUIREMENTS.—Each local
educational agency shall ensure that—
‘‘(A) tests and other evaluation materials
used to assess a child under this section—
‘‘(i) are selected and administered so
as not to be discriminatory on a racial or
cultural basis; and
‘‘(ii) are provided and administered in
the child’s native language or other mode
of communication, unless it is clearly not
feasible to do so; and
‘‘(B) any standardized tests that are given
to the child—
‘‘(i) have been validated for the spe-
cific purpose for which they are used;
‘‘(ii) are administered by qualified
personnel; and
‘‘(iii) are administered in accordance
with any instructions provided by the pro-
ducer of such tests; and
‘‘(C) the child is assessed in all areas of
suspected disability.
‘‘(4) DETERMINATION OF ELIGIBILITY.—Upon
completion of administration of tests and other eval-
uation materials—
114
‘‘(A) the determination of whether the
child is a child with a disability as defined in
section 602(3) or section 602(3)(B) will be
made by a team of qualified professionals and
the parent of the child in accordance with para-
graph (5); and
‘‘(B) a copy of the evaluation report and
the documentation of determination of eligibility
will be given to the parent.
‘‘(5) SPECIAL RULE FOR ELIGIBILITY DETER-
MINATION.—In making a determination of eligibility
under paragraph (4)(A), a child shall not be deter-
mined to be a child with a disability based on any
of the following:
‘‘(A) Lack of instruction, including instruc-
tion in reading or math.
‘‘(B) Limited English proficiency.
‘‘(C) Cultural or environmental factors.
‘‘(D) Economic disadvantage.
‘‘(c) REEVALUATION PROCEDURES.—
‘‘(1) IN GENERAL.—As part of any reevaluation
to assess a child under this section, the individual-
ized education program team and other qualified
professionals, as appropriate, shall—
115
‘‘(A) review existing evaluation data on the
child, including current classroom-based assess-
ments and teacher and related services provid-
er’s observation; and
‘‘(B) on the basis of that review and input
from the child’s parents, identify what addi-
tional data, if any, are needed to determine—
‘‘(i) whether the child continues to
have a disability, as described in section
602(3)(A)(i) or section 602(3)(B);
‘‘(ii) the child’s present levels of per-
formance and educational needs; and
‘‘(iii)(I) whether the child continues to
need special education and related services;
and
‘‘(II) if so, any additions or modifica-
tions to the special education and related
services to enable the child to meet the ob-
jectives set out in the individualized edu-
cation program of the child and to partici-
pate, as appropriate, in the general cur-
riculum.
‘‘(2) TESTS
AND
OTHER
EVALUATION
MATE-
RIALS.—The local educational agency shall admin-
ister such tests and other evaluation materials as
116
may be needed to produce the data identified by the
IEP Team under paragraph (1)(B).
‘‘(3) REQUIREMENTS IF ADDITIONAL DATA NOT
NEEDED.—If the IEP Team and other qualified pro-
fessionals, as appropriate, determine that no addi-
tional data are needed to determine whether the
child continues to be a child with a disability, the
local educational agency—
‘‘(A) shall notify the child’s parents of—
‘‘(i) that determination and the rea-
sons for it; and
‘‘(ii) the right of such parents to re-
quest an assessment to determine whether
the child continues to be a child with a dis-
ability; and
‘‘(B) shall not be required to conduct such
an assessment unless requested to by the child’s
parents.
‘‘(d) INDIVIDUALIZED EDUCATION PROGRAMS.—
‘‘(1) REQUIREMENT THAT PROGRAM BE IN EF-
FECT.—
‘‘(A) IN GENERAL.—At the beginning of
each school year, each local educational agency,
or State educational agency, as the case may
be, shall have in effect, for each child with a
117
disability in its jurisdiction, an individualized
education program, as defined in section
602(11).
‘‘(B) PROGRAM FOR CHILD AGED 3 TO 5.—
In the case of a child with a disability aged 3
to 5, inclusive, an individualized family service
plan that contains the material described in sec-
tion 636, and that is developed in accordance
with this section, may serve as the IEP of the
child if using that plan as the IEP is—
‘‘(i) consistent with State policy; and
‘‘(ii) agreed to by the agency and the
child’s parents.
‘‘(2) DEVELOPMENT OF IEP.—
‘‘(A) IN GENERAL.—An individualized edu-
cation program team shall develop the IEP de-
scribed in paragraph (1). In developing such
IEP, the IEP Team, subject to subparagraph
(B), shall—
‘‘(i) consider the child’s strengths and
the parents’ concerns for enhancing their
child’s education;
‘‘(ii) consider the results of the initial
evaluation or most recent reevaluation;
118
‘‘(iii) in the case of a child whose be-
havior impedes his or her learning or that
of others, consider, when appropriate,
strategies, including positive behavior man-
agement interventions and strategies to
help the child behave in an appropriate
and responsible manner conducive to learn-
ing;
‘‘(iv) in the case of a child with lim-
ited English proficiency, consider the lan-
guage needs of the child as such needs re-
late to the child’s IEP;
‘‘(v) in the case of a child who is blind
or visually impaired, provide for instruction
in braille and the use of braille unless all
members of the IEP Team concur that,
after an evaluation of the child’s reading
and writing skills, needs, and appropriate
reading and writing media (including an
evaluation of the child’s future needs for
instruction in braille or the use of braille),
instruction in braille or the use of braille
is not appropriate for the child;
‘‘(vi) 
consider 
the 
communication
needs of the child, and in the case of a
119
child who is deaf, hard-of-hearing, blind, or
communicatively disabled, consider the lan-
guage and communication needs of the
child; and
‘‘(vii) consider whether the child re-
quires assistive technology services or de-
vices.
‘‘(B) REQUIREMENT
WITH
RESPECT
TO
REGULAR EDUCATION TEACHER.—The regular
education teacher of the child, as a member of
the IEP Team, shall, to the extent appropriate,
participate in the development of the IEP of
the child, including the determination of appro-
priate positive behavior-management interven-
tions and strategies consistent with subpara-
graph (A)(iii) of this paragraph, and the deter-
mination of supplementary aids and services,
program modifications, and support for school
personnel consistent with section 602(11)(E).
‘‘(3) REVIEW AND REVISION OF IEP.—
‘‘(A) IN GENERAL.—The local educational
agency shall ensure that, subject to subpara-
graph (C), the IEP Team—
120
‘‘(i) reviews each IEP at least once a
year to determine whether the annual goals
for the child are being achieved; and
‘‘(ii) revises the IEP to address—
‘‘(I) 
any 
lack 
of 
expected
progress toward the annual goals and
in the general curriculum, where ap-
propriate;
‘‘(II) the results of any reevalua-
tion conducted under this section;
‘‘(III) 
information 
about 
the
child provided to, or by, the parents,
as described in section 602(11)(F)(ii);
or
‘‘(IV) 
the 
child’s 
anticipated
needs as otherwise appropriate.
‘‘(B) CERTAIN CHILDREN WITH DISABIL-
ITIES.—
‘‘(i) IN GENERAL.—In the case of a
child with a disability who has dem-
onstrated a pattern of behavior that sig-
nificantly impairs the education of the
child, or the education of the classmates of
the child, and the ability of the teacher of
the child to teach, if such teacher initiates
126
‘‘(4) procedures designed to assure that the no-
tice required by paragraph (3) is in the native lan-
guage of the parents, unless it clearly is not feasible
to do so;
‘‘(5) an opportunity for mediation in accordance
with subsection (e);
‘‘(6) an opportunity to present complaints with
respect to any matter relating to the identification,
evaluation, or educational placement of the child, or
the provision of a free appropriate public education
to such child;
‘‘(7) procedures that require the parent of a
child with a disability, or the attorney representing
the child, to provide notice (which shall remain con-
fidential)—
‘‘(A) to the State educational agency or
local educational agency, as the case may be, in
the complaint filed under paragraph (6); and
‘‘(B) that shall include—
‘‘(i) the name of the child, the address
of the residence of the child, and the name
of the school at which the child is attend-
ing;