this section for any fiscal year or $35,000 
(adjusted by the cumulative rate of inflation 
since fiscal year 1998, as measured by the 
percentage increase, if any, in the Con-
sumer Price Index For All Urban Con-
sumers, published by the Bureau of Labor 
Statistics of the Department of Labor), 
whichever is greater. 
‘‘(B) Funds described in subparagraph (A) 
may also be used for the administration of part 
C of this Act, if the State educational agency is 
the lead agency for the State under that part.
‘‘(3) HIGH COST SPECIAL EDUCATION AND RE-
LATED
SERVICES.—Each State may use not more 
than 4 percent of the maximum amount it may re-
tain under paragraph (1)(A) for any fiscal year to es-
tablish and implement cost or risk sharing funds, 
consortia, or cooperatives to assist local educational 
agencies in providing high cost special education and 
related services. 
‘‘(4) OTHER
STATE-LEVEL
ACTIVITIES.—Each 
State shall use any funds it retains under paragraph 
(1) and does not use under paragraph (2) or (3) for 
any of the following:
‘‘(A) Support and direct services, including 
technical assistance and personnel development 
and training. 
‘‘(B) Administrative costs of monitoring 
and complaint investigation. 
‘‘(C) To establish and implement the medi-
ation and voluntary binding arbitration proc-
esses required by sections 612(a)(17) and 615(e), 
including providing for the costs of mediators, 
arbitrators, and support personnel. 
‘‘(D) To assist local educational agencies in 
meeting personnel shortages. 
‘‘(E) Activities at the State and local levels 
to meet the performance goals established by the 
State under section 612(a)(15) and to support 
implementation of the State plan under subpart 
1 of part D if the State receives funds under that 
subpart. 
‘‘(F) To support paperwork reduction ac-
tivities, including expanding the appropriate use 
of technology in the IEP process under this part. 
‘‘(G) To develop and maintain a com-
prehensive, coordinated, prereferral educational 
support system for students in kindergarten 
through grade 12 (with a particular emphasis on
students in kindergarten through grade 3) who 
are not enrolled in special education but who 
need additional academic and behavioral sup-
port to succeed in a general education environ-
ment. 
‘‘(H) To support capacity building activi-
ties and improve the delivery of services by local 
educational agencies to improve results for chil-
dren with disabilities. 
‘‘(I) For subgrants to local educational 
agencies for the purposes described in paragraph 
(5)(A). 
‘‘(5)(A) SUBGRANTS
TO
LOCAL
EDUCATIONAL 
AGENCIES FOR ACCOUNTABILITY.—In any fiscal year 
in which the percentage increase in the State’s alloca-
tion under this section exceeds the rate of inflation (as 
measured by the percentage increase, if any, from the 
preceding fiscal year in the Consumer Price Index 
For All Urban Consumers, published by the Bureau 
of Labor Statistics of the Department of Labor), each 
State shall reserve, from its allocation under this sec-
tion, the amount described in subparagraph (B) to 
make subgrants to local educational agencies, unless 
that amount is less than $100,000, to provide tech-
nical assistance and direct services to local edu-
cational agencies identified as being in need of im-
provement under section 1116 of the Elementary and 
Secondary Education Act of 1965 on the basis, in 
whole or in part, of the assessment results of the 
disaggregated subgroup of students with disabilities, 
including providing professional development to spe-
cial and regular education teachers, based on scientif-
ically based research to improve educational instruc-
tion. 
‘‘(B) MAXIMUM
SUBGRANT.—For each fiscal 
year, the amount referred to in subparagraph (A) 
is—
‘‘(i) the maximum amount the State was al-
lowed to retain under paragraph (1)(A) for the 
prior fiscal year, or for fiscal year 1998, 25 per-
cent of the State’s allocation for fiscal year 1997 
under this section; multiplied by 
‘‘(ii) the difference between the percentage 
increase in the State’s allocation under this sec-
tion and the rate of inflation, as measured by 
the percentage increase, if any, from the pre-
ceding fiscal year in the Consumer Price Index 
For All Urban Consumers, published by the Bu-
reau of Labor Statistics of the Department of 
Labor.
‘‘(6) REPORT ON USE OF FUNDS.—As part of the 
information required to be submitted to the Secretary 
under section 612, each State shall annually de-
scribe—
‘‘(A) how amounts retained under para-
graph (1) will be used to meet the requirements 
of this part; 
‘‘(B) how those amounts will be allocated 
among the activities described in this subsection 
to meet State priorities based on input from 
local educational agencies; and 
‘‘(C) the percentage of those amounts, if 
any, that will be distributed to local educational 
agencies by formula. 
‘‘(f) SUBGRANTS
TO LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) SUBGRANTS REQUIRED.—Each State that 
receives a grant under this section for any fiscal year 
shall distribute any funds it does not retain under 
subsection (e) to local educational agencies, including 
public charter schools that operate as local edu-
cational agencies, in the State that have established 
their eligibility under section 613, for use in accord-
ance with this part.
‘‘(2) PROCEDURE FOR ALLOCATIONS TO LOCAL 
EDUCATIONAL AGENCIES.—For each fiscal year for 
which funds are allocated to States under subsection 
(e), each State shall allocate funds under paragraph 
(1) as follows: 
‘‘(A) BASE
PAYMENTS.—The State shall 
first award each agency described in paragraph 
(1) the amount that agency would have received 
under this section for fiscal year 1999, if the 
State had distributed 75 percent of its grant for 
that year under section 611(d), as then in effect. 
‘‘(B) ALLOCATION OF REMAINING FUNDS.—
After making allocations under subparagraph 
(A), the State shall—
‘‘(i) allocate 85 percent of any remain-
ing funds to those agencies on the basis of 
the relative numbers of children enrolled in 
public and private elementary and sec-
ondary schools within the agency’s jurisdic-
tion; and 
‘‘(ii) allocate 15 percent of those re-
maining funds to those agencies in accord-
ance with their relative numbers of children 
living in poverty, as determined by the 
State educational agency.
data are available) of all local educational 
agencies in the 50 States and the District of 
Columbia); plus 
‘‘(ii) any direct expenditures by the 
State for the operation of those agencies; di-
vided by 
‘‘(B) the aggregate number of children in 
average daily attendance to whom those agencies 
provided free public education during that pre-
ceding year; and 
‘‘(2) the term ‘State’ means each of the 50 States, 
the District of Columbia, and the Commonwealth of 
Puerto Rico. 
‘‘(h) USE OF AMOUNTS BY SECRETARY OF THE INTE-
RIOR.—
‘‘(1) PROVISION
OF
AMOUNTS
FOR
ASSIST-
ANCE.—
‘‘(A) IN GENERAL.—The Secretary of Edu-
cation shall provide amounts to the Secretary of 
the Interior to meet the need for assistance for 
the education of children with disabilities on res-
ervations aged 5 to 21, inclusive, enrolled in ele-
mentary and secondary schools for Indian chil-
dren 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 (c) for that fis-
cal year. Of the amount described in the pre-
ceding sentence—
‘‘(i) 80 percent shall be allocated to 
such schools by July 1 of that fiscal year; 
and 
‘‘(ii) 20 percent shall be allocated to 
such schools by September 30 of that fiscal 
year. 
‘‘(B) CALCULATION OF NUMBER OF CHIL-
DREN.—In the case of Indian students aged 3 to 
5, inclusive, who are enrolled in programs affili-
ated with the Bureau of Indian Affairs (hereafter 
in this subsection referred to as ‘BIA’) schools 
and that are required by the States in which 
such schools are located to attain or maintain 
State accreditation, and which schools have such 
accreditation prior to the date of enactment of 
the Individuals with Disabilities Education Act 
Amendments of 1991, the school shall be allowed 
to count those children for the purpose of dis-
tribution of the funds provided under this para-
graph to the Secretary of the Interior. The Sec-
retary 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 re-
spect to all other children aged 3 to 21, inclusive, 
on reservations, the State educational agency 
shall be responsible for ensuring that all of the 
requirements of this part are implemented. 
‘‘(2) SUBMISSION
OF
INFORMATION.—The Sec-
retary of Education may provide the Secretary of the 
Interior amounts under paragraph (1) for a fiscal 
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 requirements, 
as determined by the Secretary of Education, of 
sections 612 (including monitoring and evalua-
tion activities) and 613; 
‘‘(B) includes a description of how the Sec-
retary of the Interior will coordinate the provi-
sion of services under this part with local edu-
cational agencies, tribes and tribal organiza-
tions, and other private and Federal service pro-
viders;
‘‘(C) includes an assurance that there are 
public hearings, adequate notice of such hear-
ings, and an opportunity for comment afforded 
to members of tribes, tribal governing bodies, and 
affected local school boards before the adoption of 
the policies, programs, and procedures described 
in subparagraph (A); 
‘‘(D) includes an assurance that the Sec-
retary of the Interior will provide such informa-
tion as the Secretary of Education may require 
to comply with section 618; 
‘‘(E) includes an assurance that the Sec-
retary of the Interior and the Secretary of 
Health and Human Services have entered into a 
memorandum of agreement, to be provided to the 
Secretary of Education, for the coordination of 
services, resources, and personnel between their 
respective Federal, State, and local offices and 
with State and local educational agencies and 
other entities to facilitate the provision of serv-
ices to Indian children with disabilities residing 
on or near reservations (such agreement shall 
provide for the apportionment of responsibilities 
and costs including, but not limited to, child 
find, evaluation, diagnosis, remediation or thera-
peutic measures, and (where appropriate) equip-
ment and medical or personal supplies as needed 
for a child to remain in school or a program); 
and 
‘‘(F) includes an assurance that the Depart-
ment of the Interior will cooperate with the De-
partment of Education in its exercise of moni-
toring, enforcement, and oversight of this appli-
cation, 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 
THROUGH 5.—
‘‘(A) IN
GENERAL.—With funds appro-
priated under subsection (i), the Secretary of 
Education shall make payments to the Secretary 
of the Interior to be distributed to tribes or tribal 
organizations (as defined under section 4 of the 
Indian Self-Determination and Education As-
sistance Act) or consortia of the above to provide 
for the coordination of assistance for special edu-
cation and related services for children with dis-
abilities aged 3 through 5 on reservations served 
by elementary and secondary schools for Indian 
children operated or funded by the Department 
of the Interior. The amount of such payments 
under subparagraph (B) for any fiscal year shall 
be equal to 20 percent of the amount allotted 
under subsection (c). 
‘‘(B) DISTRIBUTION OF FUNDS.—The Sec-
retary of the Interior shall distribute the total 
amount of the payment under subparagraph (A) 
by allocating to each tribe or tribal organization 
an amount based on the number of children with 
disabilities ages 3 through 5 residing on reserva-
tions as reported annually, divided by the total 
of those children served by all tribes or tribal or-
ganizations. 
‘‘(C) SUBMISSION OF INFORMATION.—To re-
ceive a payment under this paragraph, the tribe 
or tribal organization shall submit such figures 
to the Secretary of the Interior as required to de-
termine the amounts to be allocated under sub-
paragraph (B). This information shall be com-
piled and submitted to the Secretary of Edu-
cation.
‘‘(D) USE OF FUNDS.—The funds received 
by a tribe or tribal organization shall be used to 
assist in child find, screening, and other proce-
dures for the early identification of children aged 
3 through 5, parent training, and the provision 
of direct services. These activities may be carried 
out directly or through contracts or cooperative 
agreements with the BIA, local educational agen-
cies, and other public or private nonprofit orga-
nizations. The tribe or tribal organization is en-
couraged to involve Indian parents in the devel-
opment and implementation of these activities. 
The above entities shall, as appropriate, make re-
ferrals to local, State, or Federal entities for the 
provision of services or further diagnosis. 
‘‘(E) ANNUAL REPORT.—To be eligible to re-
ceive a grant pursuant to subparagraph (A), the 
tribe or tribal organization shall provide to the 
Secretary of the Interior an annual report of ac-
tivities undertaken under this paragraph, in-
cluding the number of contracts and cooperative 
agreements entered into, the number of children 
contacted and receiving services for each year, 
and the estimated number of children needing 
services during the year following the one in
which the report is made. The Secretary of the 
Interior shall include a summary of this infor-
mation on an annual basis in the report to the 
Secretary of Education required under this sub-
section. The Secretary of Education may require 
any additional information from the Secretary 
of the Interior. 
‘‘(F) PROHIBITIONS.—None of the funds al-
located under this paragraph may be used by the 
Secretary of the Interior for administrative pur-
poses, including child count and the provision of 
technical assistance. 
‘‘(4) PLAN FOR COORDINATION OF SERVICES.—
The Secretary of the Interior shall develop and imple-
ment a plan for the coordination of services for all 
Indian children with disabilities residing on reserva-
tions covered under this Act. Such plan shall provide 
for the coordination of services benefiting these chil-
dren from whatever source, including tribes, the In-
dian Health Service, other BIA divisions, and other 
Federal agencies. In developing the plan, the Sec-
retary of the Interior shall consult with all interested 
and involved parties. It shall be based on the needs 
of the children and the system best suited for meeting 
those needs, and may involve the establishment of co-
operative agreements between the BIA, other Federal 
agencies, and other entities. The plan shall also be 
distributed upon request to States, State and local 
educational agencies, and other agencies providing 
services to infants, toddlers, and children with dis-
abilities, to tribes, and to other interested parties. 
‘‘(5) ESTABLISHMENT OF ADVISORY BOARD.—To 
meet the requirements of section 612(a)(22), the Sec-
retary of the Interior shall establish, under the BIA, 
an advisory board composed of individuals involved 
in or concerned with the education and provision of 
services to Indian infants, toddlers, children, and 
youth with disabilities, including Indians with dis-
abilities, Indian parents or guardians of such chil-
dren, teachers, service providers, State and local edu-
cational officials, representatives of tribes or tribal or-
ganizations, representatives from State Interagency 
Coordinating Councils under section 641 in States 
having reservations, and other members representing 
the various divisions and entities of the BIA. The 
chairperson shall be selected by the Secretary of the 
Interior. The advisory board shall—
‘‘(A) assist in the coordination of services 
within the BIA and with other local, State, and 
Federal agencies in the provision of education
for infants, toddlers, and children with disabil-
ities; 
‘‘(B) advise and assist the Secretary of the 
Interior in the performance of the Secretary’s re-
sponsibilities described in this subsection; 
‘‘(C) develop and recommend policies con-
cerning effective inter- and intra-agency collabo-
ration, including modifications to regulations, 
and the elimination of barriers to inter- and 
intra-agency programs and activities; 
‘‘(D) provide assistance and disseminate in-
formation on best practices, effective program co-
ordination strategies, and recommendations for 
improved educational programming for Indian 
infants, toddlers, and children with disabilities; 
and 
‘‘(E) provide assistance in the preparation 
of information required under paragraph (2)(D). 
‘‘(6) ANNUAL REPORTS.—
‘‘(A) IN GENERAL.—The advisory board es-
tablished under paragraph (5) shall prepare and 
submit to the Secretary of the Interior and to the 
Congress an annual report containing a descrip-
tion of the activities of the advisory board for the 
preceding year.
‘‘(B) AVAILABILITY.—The Secretary of the 
Interior shall make available to the Secretary of 
Education the report described in subparagraph 
(A). 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—For the 
purpose of carrying out this part, other than section 619, 
there are authorized to be appropriated—
‘‘(1) $11,074,398,000 for fiscal year 2004; 
‘‘(2) $13,374,398,000 for fiscal year 2005; 
‘‘(3) $15,746,302,000 for fiscal year 2006; 
‘‘(4) $17,918,205,000 for fiscal year 2007; 
‘‘(5) $20,090,109,000 for fiscal year 2008; 
‘‘(6) $22,262,307,000 for fiscal year 2009; 
‘‘(7) $25,198,603,000 for fiscal year 2010; and 
‘‘(8) such sums as may be necessary for fiscal 
year 2011 and each subsequent fiscal year.’’. 
SEC. 202. STATE ELIGIBILITY. 
(a) IN GENERAL.—(1) Section 612(a) of the Individ-
uals with Disabilities Education Act (20 U.S.C. 1412(a)) 
is amended in the matter preceding paragraph (1) by strik-
ing ‘‘demonstrates to the satisfaction of’’ and inserting 
‘‘reasonably demonstrates to’’. 
(2) Paragraphs (1) through (11) of section 612(a) of 
the Individuals with Disabilities Education Act (20 U.S.C. 
1412(a)(1)–(11)) are amended to read as follows:
‘‘(1) FREE APPROPRIATE PUBLIC EDUCATION.—
‘‘(A) IN GENERAL.—A free appropriate pub-
lic education is available to all children with 
disabilities residing in the State between the ages 
of 3 and 21, inclusive, including children with 
disabilities who have been suspended or expelled 
from school. 
‘‘(B) LIMITATION.—The obligation to make 
a free appropriate public education available to 
all children with disabilities does not apply with 
respect to children—
‘‘(i) aged 3 through 5 and 18 through 
21 in a State to the extent that its applica-
tion to those children would be inconsistent 
with State law or practice, or the order of 
any court, respecting the provision of public 
education to children in those age ranges; 
and 
‘‘(ii) aged 18 through 21 to the extent 
that State law does not require that special 
education and related services under this 
part be provided to children with disabil-
ities who, in the educational placement 
prior to their incarceration in an adult cor-
rectional facility—
‘‘(I) were not actually identified 
as being a child with a disability 
under section 602(3) of this Act; or 
‘‘(II) did not have an individual-
ized education program under this 
part. 
‘‘(2) FULL EDUCATIONAL OPPORTUNITY GOAL.—
The State has established a goal of providing full edu-
cational opportunity to all children with disabilities 
and a detailed timetable for accomplishing that goal. 
‘‘(3) CHILD FIND.—
‘‘(A) IN GENERAL.—All children with dis-
abilities residing in the State, including children 
with disabilities attending private schools, re-
gardless of the severity of their disabilities, and 
who are in need of special education and related 
services, are identified, located, and evaluated 
and a practical method is developed and imple-
mented to determine which children with disabil-
ities are currently receiving needed special edu-
cation and related services. 
‘‘(B) CONSTRUCTION.—Nothing in this Act 
requires that children be classified by their dis-
ability so long as each child who has a disability 
listed in section 602 and who, by reason of that
disability, needs special education and related 
services is regarded as a child with a disability 
under this part. 
‘‘(4) INDIVIDUALIZED
EDUCATION
PROGRAM.—
An individualized education program, or an individ-
ualized family service plan that meets the require-
ments of section 636(d), is developed, reviewed, and 
revised for each child with a disability in accordance 
with section 614(d). 
‘‘(5) LEAST RESTRICTIVE ENVIRONMENT.—
‘‘(A) IN GENERAL.—To the maximum ex-
tent appropriate, children with disabilities, in-
cluding children in public or private institutions 
or other care facilities, are educated with chil-
dren who are not disabled, and special classes, 
separate schooling, or other removal of children 
with disabilities from the regular educational en-
vironment occurs only when the nature or sever-
ity of the disability of a child is such that edu-
cation in regular classes with the use of supple-
mentary aids and services cannot be achieved 
satisfactorily. 
‘‘(B) ADDITIONAL REQUIREMENT.—
‘‘(i) IN GENERAL.—If the State uses a 
funding mechanism by which the State dis-
tributes State funds on the basis of the type 
of setting in which a child is served, the 
funding mechanism does not result in place-
ments that violate the requirements of sub-
paragraph (A). 
‘‘(ii) ASSURANCE.—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. 
‘‘(6) PROCEDURAL SAFEGUARDS.—
‘‘(A) IN GENERAL.—Children with disabil-
ities and their parents are afforded the proce-
dural safeguards required by section 615. 
‘‘(B) 
ADDITIONAL
PROCEDURAL
SAFE-
GUARDS.—Procedures to ensure that testing and 
evaluation materials and procedures utilized for 
the purposes of evaluation and placement of chil-
dren with disabilities for services under this Act 
will be selected and administered so as not to be 
racially or culturally discriminatory. Such ma-
terials or procedures shall be provided and ad-
ministered in the child’s native language or
mode of communication, unless it clearly is not 
feasible to do so, and no single procedure shall 
be the sole criterion for determining an appro-
priate educational program for a child. 
‘‘(7) EVALUATION.—Children with disabilities 
are evaluated in accordance with subsections (a) 
through (c) of section 614. 
‘‘(8) CONFIDENTIALITY.—Agencies in the State 
comply with section 617(d) (relating to the confiden-
tiality of records and information). 
‘‘(9) TRANSITION FROM PART C TO PRESCHOOL 
PROGRAMS.—Children participating in early inter-
vention programs assisted under part C, and who will 
participate in preschool programs assisted under this 
part, experience a smooth and effective transition to 
those preschool programs in a manner consistent with 
section 637(a)(8). By the third birthday of such a 
child, an individualized education program or, if con-
sistent with section 636(d), an individualized family 
service plan, has been developed and is being imple-
mented for the child. The local educational agency 
will participate in transition planning conferences 
arranged by the designated lead agency under section 
637(a)(8). 
‘‘(10) CHILDREN IN PRIVATE SCHOOLS.—
‘‘(A) CHILDREN
ENROLLED
IN
PRIVATE 
SCHOOLS BY THEIR PARENTS.—
‘‘(i) IN GENERAL.—To the extent con-
sistent with the number and location of 
children with disabilities in the State who 
are enrolled by their parents in private ele-
mentary and secondary schools in the area 
served by such agency, provision is made 
for the participation of those children in the 
program assisted or carried out under this 
part by providing for such children special 
education and related services in accordance 
with the following requirements, unless the 
Secretary has arranged for services to those 
children under subsection (f): 
‘‘(I) Amounts to be expended for 
the provision of those services (includ-
ing direct services to parentally-placed 
children) by a local educational agency 
shall be equal to a proportionate 
amount of Federal funds made avail-
able under this part. 
‘‘(II) In calculating the propor-
tionate share of Federal funds, the local 
educational agency, after timely and
meaningful 
consultation 
with 
rep-
resentatives of children with disabil-
ities 
parentally-placed 
in 
private 
schools as described in clause (iii), 
shall conduct a thorough and complete 
child-find process to determine the 
number of parentally-placed children 
with 
disabilities 
attending 
private 
schools located in the district. 
‘‘(III) Such services may be pro-
vided to children with disabilities on 
the premises of private, including reli-
gious, schools, to the extent consistent 
with law. 
‘‘(IV) State and local funds may 
supplement and in no case shall sup-
plant the proportionate amount of 
Federal funds required to be expended 
under this paragraph. 
‘‘(V) Each local educational agen-
cy maintains in its records and pro-
vides to the State educational agency 
the number of children evaluated under 
this paragraph, the number of children 
determined to be children with disabil-
ities, and the number of children 
served under this subsection. 
‘‘(ii) CHILD-FIND REQUIREMENT.—
‘‘(I) IN
GENERAL.—The require-
ments of paragraph (3) of this sub-
section (relating to child find) shall 
apply with respect to children with 
disabilities in the State who are en-
rolled in private, including religious, 
elementary and secondary schools. 
‘‘(II) 
EQUITABLE
PARTICIPA-
TION.—The child-find process must be 
designed to ensure the equitable par-
ticipation of parentally-placed private 
school children and an accurate count 
of such children. 
‘‘(III) ACTIVITIES.—In carrying 
out this clause, the local educational 
agency, or where applicable, the State 
educational agency, shall undertake ac-
tivities similar to those activities un-
dertaken for its public school children. 
‘‘(IV) COST.—The cost of carrying 
out this clause, including individual 
evaluations, may not be considered in
determining whether a local education 
agency has met its obligations under 
clause (i). 
‘‘(V) COMPLETION PERIOD.—Such 
child-find process shall be completed in 
a time period comparable to that for 
other students attending public schools 
in the local educational agency. 
‘‘(iii) 
CONSULTATION.—To 
ensure 
timely and meaningful consultation, a local 
educational agency, or where appropriate, a 
state educational agency, shall consult with 
representatives of children with disabilities 
parentally-placed in private schools during 
the design and development of special edu-
cation and related services for these children 
including—
‘‘(I) the child-find process and 
how parentally-placed private school 
children suspected of having a dis-
ability can participate equitably, in-
cluding how parents, teachers, and pri-
vate school officials will be informed of 
the process;
‘‘(II) the determination of the pro-
portionate share of Federal funds 
available to serve parentally-placed 
private school children with disabilities 
under this paragraph, including the 
determination of how those funds were 
calculated; 
‘‘(III) the consultation process 
among the district, private school offi-
cials, and parents of parentally-placed 
private school children with disabilities 
including how such process will oper-
ate throughout the school year to en-
sure that parentally-placed children 
with disabilities identified through the 
child find process can meaningfully 
participate in special education and 
related services; and 
‘‘(IV) how, where, and by whom 
special education and related services 
will be provided for parentally-placed 
private school children, including a 
discussion of alternate service delivery 
mechanisms, how such services will be 
apportioned if funds are insufficient to
serve all children, and how and when 
these decisions will be made. 
‘‘(iv) COMPLIANCE.— 
‘‘(I) IN
GENERAL.—A private 
school official shall have the right to 
complain to the State educational 
agency that the local educational agen-
cy did not engage in consultation that 
was meaningful and timely, or did not 
give due consideration to the views of 
the private school official. 
‘‘(II) PROCEDURE.—If the private 
school official wishes to complain, the 
official shall provide the basis of the 
noncompliance with this section by the 
local educational agency to the State 
educational agency, and the local edu-
cational agency shall forward the ap-
propriate documentation to the State 
educational agency. If the private 
school official is dissatisfied with the 
decision of the State educational agen-
cy, such official may complain to the 
Secretary by providing the basis of the 
noncompliance with this section by the
local educational agency to the Sec-
retary, and the State educational agen-
cy shall forward the appropriate docu-
mentation to the Secretary. 
‘‘(v) PROVISION OF SERVICES.—
‘‘(I) DIRECTLY OR THROUGH CON-
TRACTS.—An agency may provide spe-
cial education and related services di-
rectly or through contracts with public 
and private agencies, organizations, 
and institutions. 
‘‘(II) SECULAR, NEUTRAL, NON-
IDEOLOGICAL.—Special education and 
related services, including materials 
and equipment, shall be secular, neu-
tral, and nonideological. 
‘‘(vi) PUBLIC CONTROL OF FUNDS.—
‘‘(I) IN GENERAL.—The control of 
funds used to provide special education 
and related services under this section, 
and title to materials, equipment, and 
property purchased with those funds, 
shall be in a public agency for the uses 
and purposes provided in this Act, and
a public agency shall administer the 
funds and property. 
‘‘(II) PROVISION OF SERVICES.—
The provision of services under this Act 
shall be provided—
‘‘(aa) by employees of a pub-
lic agency; or 
‘‘(bb) through contract by the 
public agency with an individual, 
association, agency, organization, 
or other entity. 
‘‘(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 serv-
ices, in accordance with an individualized 
education program, at no cost to their par-
ents, if such children are placed in, or re-
ferred to, such schools or facilities by the 
State or appropriate local educational agen-
cy as the means of carrying out the require-
ments of this part or any other applicable 
law requiring the provision of special edu-
cation and related services to all children 
with disabilities within such State. 
‘‘(ii) STANDARDS.—In all cases de-
scribed in clause (i), the State educational 
agency shall determine whether such schools 
and facilities meet standards that apply to 
State and local educational agencies and 
that children so served have all the rights 
they would have if served by such agencies. 
‘‘(C) PAYMENT FOR EDUCATION OF CHIL-
DREN ENROLLED IN PRIVATE SCHOOLS WITHOUT 
CONSENT
OF
OR
REFERRAL
BY
THE
PUBLIC 
AGENCY.—
‘‘(i) IN GENERAL.—Subject to subpara-
graph (A), this part does not require a local 
educational agency to pay for the cost of 
education, including special education and 
related services, of a child with a disability 
at a private school or facility if that agency 
made a free appropriate public education 
available to the child and the parents elect-
ed to place the child in such private school 
or facility. 
‘‘(ii) REIMBURSEMENT
FOR
PRIVATE 
SCHOOL PLACEMENT.—If the parents of a
child with a disability, who previously re-
ceived special education and related services 
under the authority of a public agency, en-
roll the child in a private elementary or sec-
ondary school without the consent of or re-
ferral by the public agency, a court or a 
hearing officer may require the agency to 
reimburse the parents for the cost of that en-
rollment if the court or hearing officer finds 
that the agency had not made a free appro-
priate public education available to the 
child in a timely manner prior to that en-
rollment. 
‘‘(iii) LIMITATION
ON
REIMBURSE-
MENT.—The cost of reimbursement described 
in clause (ii) may be reduced or denied—
‘‘(I) if—
‘‘(aa) at the most recent IEP 
meeting that the parents attended 
prior to removal of the child from 
the public school, the parents did 
not inform the IEP Team that 
they were rejecting the placement 
proposed by the public agency to 
provide a free appropriate public
education to their child, including 
stating their concerns and their 
intent to enroll their child in a 
private school at public expense; 
or 
‘‘(bb) 10 business days (in-
cluding any holidays that occur 
on a business day) prior to the re-
moval of the child from the public 
school, the parents did not give 
written notice to the public agen-
cy of the information described in 
division (aa); 
‘‘(II) if, prior to the parents’ re-
moval of the child from the public 
school, the public agency informed the 
parents, through the notice require-
ments described in section 615(b)(7), of 
its intent to evaluate the child (includ-
ing a statement of the purpose of the 
evaluation that was appropriate and 
reasonable), but the parents did not 
make the child available for such eval-
uation; or
‘‘(III) upon a judicial finding of 
unreasonableness with respect to ac-
tions taken by the parents. 
‘‘(iv) 
EXCEPTION.—Notwithstanding 
the notice requirement in clause (iii)(I), the 
cost of reimbursement—
‘‘(I) shall not be reduced or denied 
for failure to provide such notice if—
‘‘(aa) the school prevented the 
parent from providing such no-
tice; 
‘‘(bb) the parents had not re-
ceived notice, pursuant to section 
615, of the notice requirement in 
clause (iii)(I); or 
‘‘(cc) compliance with clause 
(iii)(I) would likely result in 
physical harm to the child; and 
‘‘(II) may, in the discretion of a 
court or a hearing officer, not be re-
duced or denied for failure to provide 
such notice if—
‘‘(aa) the parent is illiterate 
or cannot write in English; or
‘‘(bb) compliance with clause 
(iii)(I) would likely result in seri-
ous emotional harm to the child. 
‘‘(11) 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. 
‘‘(C) EXCEPTION.—Notwithstanding sub-
paragraphs (A) and (B), the Governor (or an-
other individual pursuant to State law), con-
sistent with State law, may assign to any public 
agency in the State the responsibility of ensuring 
that the requirements of this part are met with 
respect to children with disabilities who are con-
victed as adults under State law and incarcer-
ated in adult prisons.’’. 
(3) Paragraphs (13) through (22) of section 612(a) of 
the Individuals with Disabilities Education Act (20 U.S.C. 
1412(a)(13)–(22)) are amended to read as follows: 
‘‘(13) PROCEDURAL
REQUIREMENTS
RELATING 
TO LOCAL EDUCATIONAL AGENCY ELIGIBILITY.—The 
State educational agency will not make a final deter-
mination that a local educational agency is not eligi-
ble for assistance under this part without first afford-
ing that agency reasonable notice and an opportunity 
for a hearing. 
‘‘(14) PERSONNEL STANDARDS.—
‘‘(A) IN GENERAL.—The State educational 
agency has established and maintains standards 
to ensure that personnel necessary to carry out
102
cation Act of 1965 (20 U.S.C. 6398) to ensure the 
linkage of records pertaining to migratory children 
with a disability for the purpose of electronically ex-
changing, among the States, health and educational 
information regarding such children. 
‘‘(b) EXCEPTION FOR PRIOR LOCAL PLANS.—
‘‘(1) IN GENERAL.—If a local educational agency 
or State agency has on file with the State educational 
agency policies and procedures that demonstrate that 
such local educational agency, or such State agency, 
as the case may be, meets any requirement of sub-
section (a), including any policies and procedures 
filed under this part as in effect before the effective 
date of the Improving Education Results for Children 
With Disabilities Act of 2003, the State educational 
agency shall consider 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 ap-
plication submitted by a local educational agency in 
accordance with this section shall remain in effect 
until it submits to the State educational agency such