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students are being served under the Individuals with 
Disabilities Education Act. 
(2) REPORT.—Not later than 2 years after the 
date of the enactment of the Improving Education 
Results for Children With Disabilities Act of 2003, 
the Comptroller General of the United States shall 
submit a report containing the findings from the 
study conducted under paragraph (1) to the appro-
priate congressional committees. 
(e) DEFINITION.—In this section, the term ‘‘appro-
priate congressional committees’’ means the Committee on 
Education and the Workforce of the House of Representa-
tives and the Committee on Health, Education, Labor, 
and Pensions of the Senate. 
TITLE II—ASSISTANCE FOR EDU-
CATION OF ALL CHILDREN 
WITH DISABILITIES 
SEC. 201. AUTHORIZATION; ALLOTMENT; USE OF FUNDS; 
AUTHORIZATION OF APPROPRIATIONS. 
Section 611 of the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1411) is amended to read as follows: 
‘‘SEC. 611. AUTHORIZATION; ALLOTMENT; USE OF FUNDS; 
AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) GRANTS TO STATES.—
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‘‘(1) PURPOSE
OF
GRANTS.—The Secretary 
shall make grants to States and the outlying areas, 
and provide funds to the Secretary of the Interior, 
to assist them to provide special education and re-
lated services to children with disabilities in accord-
ance with this part.
‘‘(2) 
MAXIMUM
AMOUNTS.—The 
maximum 
amount of the grant a State may receive under this 
section for any fiscal year is—
‘‘(A) the number of children with disabil-
ities in the State who are receiving special edu-
cation and related services—
‘‘(i) aged 3 through 5 if the State is 
eligible for a grant under section 619; and 
‘‘(ii) aged 6 through 21; multiplied by 
‘‘(B) 40 percent of the average per-pupil 
expenditure in public elementary and secondary 
schools in the United States. 
‘‘(3) LIMITATION.—Notwithstanding paragraph 
(2), the maximum amount of the grant a State may 
receive under this section for a fiscal year may not 
be based on the number of children ages 3 through 
17, inclusive, in excess of 13.5 percent of the num-
ber of all children in that age range in the State. 
‘‘(b) OUTLYING AREAS.—
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‘‘(1) FUNDS RESERVED.—From the amount ap-
propriated for any fiscal year under subsection (i), 
the Secretary shall reserve not more than one per-
cent, which shall be used to provide assistance to the 
outlying areas in accordance with their respective 
populations of individuals aged 3 through 21. 
‘‘(2) SPECIAL RULE.—The provisions of Public 
Law 95–134, permitting the consolidation of grants 
by the outlying areas, shall not apply to funds pro-
vided to those areas under this section. 
‘‘(c) SECRETARY
OF
THE INTERIOR.—From the 
amount appropriated for any fiscal year under subsection 
(i), the Secretary shall reserve 1.226 percent to provide 
assistance to the Secretary of the Interior in accordance 
with subsection (h). 
‘‘(d) ALLOCATIONS TO STATES.—
‘‘(1) IN GENERAL.—After reserving funds for 
payments to the outlying areas and the Secretary of 
the Interior under subsections (b) and (c), the Sec-
retary shall allocate the remaining amount among 
the States in accordance with this subsection. 
‘‘(2) SPECIAL RULE FOR USE OF FISCAL YEAR 
1999 AMOUNT.—If a State does not make a free ap-
propriate public education available to all children 
with disabilities aged 3 through 5 in the State in
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any fiscal year, the Secretary shall compute the 
State’s amount for fiscal year 1999, solely for the 
purpose of calculating the State’s allocation in the 
subsequent year under paragraph (3) or (4), by sub-
tracting the amount allocated to the State for fiscal 
year 1999 on the basis of those children. 
‘‘(3) INCREASE
IN
FUNDS.—If the amount 
available for allocations to States under paragraph 
(1) is greater than the amount allocated to the 
States under this paragraph for the preceding fiscal 
year, those allocations shall be calculated as follows: 
‘‘(A)(i) Except as provided in subpara-
graph (B), the Secretary shall allocate—
‘‘(I) to each State the amount it re-
ceived for fiscal year 1999; 
‘‘(II) 85 percent of any remaining 
funds to States on the basis of their rel-
ative populations of children aged 3 
through 21 who are of the same age as 
children with disabilities for whom the 
State ensures the availability of a free ap-
propriate public education under this part; 
and 
‘‘(III) 15 percent of those remaining 
funds to States on the basis of their rel-
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ative populations of children described in 
subclause (II) who are living in poverty. 
‘‘(ii) For the purpose of making grants 
under this paragraph, the Secretary shall use 
the most recent population data, including data 
on children living in poverty, that are available 
and satisfactory to the Secretary. 
‘‘(B) Notwithstanding subparagraph (A), 
allocations under this paragraph shall be sub-
ject to the following: 
‘‘(i) No State’s allocation shall be less 
than its allocation for the preceding fiscal 
year. 
‘‘(ii) No State’s allocation shall be less 
than the greatest of—
‘‘(I) the sum of—
‘‘(aa) the amount it received 
for fiscal year 1999; and 
‘‘(bb) one-third of one per-
cent of the amount by which the 
amount appropriated under sub-
section (i) exceeds the amount 
appropriated under this section 
for fiscal year 1999; 
‘‘(II) the sum of—
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‘‘(aa) the amount it received 
for the preceding fiscal year; and 
‘‘(bb) that amount multi-
plied by the percentage by which 
the increase in the funds appro-
priated from the preceding fiscal 
year exceeds 1.5 percent; or 
‘‘(III) the sum of—
‘‘(aa) the amount it received 
for the preceding fiscal year; and 
‘‘(bb) that amount multi-
plied by 90 percent of the per-
centage increase in the amount 
appropriated from the preceding 
fiscal year. 
‘‘(iii) Notwithstanding clause (ii), no 
State’s allocation under this paragraph 
shall exceed the sum of—
‘‘(I) the amount it received for 
the preceding fiscal year; and 
‘‘(II) that amount multiplied by 
the sum of 1.5 percent and the per-
centage increase in the amount appro-
priated.
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‘‘(C) If the amount available for allocations 
under this paragraph is insufficient to pay 
those allocations in full, those allocations shall 
be ratably reduced, subject to subparagraph 
(B)(i). 
‘‘(4) DECREASE
IN
FUNDS.—If the amount 
available for allocations to States under paragraph 
(1) is less than the amount allocated to the States 
under this section for the preceding fiscal year, those 
allocations shall be calculated as follows: 
‘‘(A) If the amount available for allocations 
is greater than the amount allocated to the 
States for fiscal year 1999, each State shall be 
allocated the sum of—
‘‘(i) the amount it received for fiscal 
year 1999; and 
‘‘(ii) an amount that bears the same 
relation to any remaining funds as the in-
crease the State received for the preceding 
fiscal year over fiscal year 1999 bears to 
the total of all such increases for all 
States. 
‘‘(B)(i) If the amount available for alloca-
tions is equal to or less than the amount allo-
cated to the States for fiscal year 1999, each
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State shall be allocated the amount it received 
for fiscal year 1999. 
‘‘(ii) If the amount available is insufficient 
to make the allocations described in clause (i), 
those allocations shall be ratably reduced. 
‘‘(e) STATE-LEVEL ACTIVITIES.—
‘‘(1) IN GENERAL.—
‘‘(A) Each State may retain not more than 
the amount described in subparagraph (B) for 
administration and other State-level activities in 
accordance with paragraphs (2), (3), and (4). 
‘‘(B) For each fiscal year, the Secretary 
shall determine and report to the State edu-
cational agency an amount that is 25 percent of 
the amount the State received under this sec-
tion for fiscal year 1997, cumulatively adjusted 
by the Secretary for each succeeding fiscal year 
by the lesser of—
‘‘(i) the percentage increase, if any, 
from the preceding fiscal year in the 
State’s allocation under this section; or 
‘‘(ii) 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,
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published by the Bureau of Labor Statis-
tics of the Department of Labor. 
‘‘(C) A State may use funds it retains 
under subparagraph (A) without regard to—
‘‘(i) the prohibition on commingling of 
funds in section 612(a)(18)(B); and 
‘‘(ii) the prohibition on supplanting 
other funds in section 612(a)(18)(C). 
‘‘(2) STATE ADMINISTRATION.—
‘‘(A) For the purpose of administering this 
part, including section 619 (including the co-
ordination of activities under this part with, 
and providing technical assistance to, other pro-
grams that provide services to children with dis-
abilities)—
‘‘(i) each State may use not more 
than 20 percent of the maximum amount 
it may retain under paragraph (1)(A) for 
any fiscal year or $750,000, whichever is 
greater; and 
‘‘(ii) each outlying area may use up to 
5 percent of the amount it receives under 
this section for any fiscal year or $35,000 
(adjusted by the cumulative rate of infla-
tion since fiscal year 1998, as measured by
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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 40 percent of the maximum amount it may re-
tain under paragraph (1)(A) for any fiscal year to 
establish 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.
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‘‘(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 me-
diators, 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 sup-
port 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
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who need additional academic and behavioral 
support to succeed in a general education envi-
ronment. 
‘‘(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 para-
graph (5)(A). 
‘‘(5)(A) SUBGRANTS TO LOCAL EDUCATIONAL 
AGENCIES FOR ACCOUNTABILITY.—In any fiscal year 
in which the percentage increase in the State’s allo-
cation 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 section, the amount described in subpara-
graph (B) to make subgrants to local educational 
agencies, unless that amount is less than $100,000, 
to provide technical assistance and direct services to 
local educational agencies identified as being in need 
of improvement under section 1116 of the Elemen-
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tary 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 dis-
abilities, including providing professional develop-
ment to special and regular education teachers, 
based on scientifically based research to improve 
educational instruction. 
‘‘(B) MAXIMUM
SUBGRANT.—For each fiscal 
year, the amount referred to in subparagraph (A) 
is—
‘‘(i) the maximum amount the State was 
allowed to retain under paragraph (1)(A) for 
the prior fiscal year, or for fiscal year 1998, 25 
percent 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 
Bureau 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 Sec-
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retary under section 612, each State shall annually 
describe—
‘‘(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 
educational agencies, in the State that have estab-
lished their eligibility under section 613, for use in 
accordance with this part. 
‘‘(2) PROCEDURE FOR ALLOCATIONS TO LOCAL 
EDUCATIONAL AGENCIES.—For each fiscal year for 
which funds are allocated to States under subsection
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(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 ef-
fect. 
‘‘(B) 
ALLOCATION
OF
REMAINING 
FUNDS.—After making allocations under sub-
paragraph (A), the State shall—
‘‘(i) allocate 85 percent of any re-
maining funds to those agencies on the 
basis of the relative numbers of children 
enrolled in public and private elementary 
and secondary schools within the agency’s 
jurisdiction; and 
‘‘(ii) allocate 15 percent of those re-
maining funds to those agencies in accord-
ance with their relative numbers of chil-
dren living in poverty, as determined by 
the State educational agency. 
‘‘(3) REALLOCATION
OF
FUNDS.—If a State 
educational agency determines that a local edu-
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cational agency is adequately providing a free appro-
priate public education to all children with disabil-
ities residing in the area served by that agency with 
State and local funds, the State educational agency 
may reallocate any portion of the funds under this 
part that are not needed by that local agency to pro-
vide a free appropriate public education to other 
local educational agencies in the State that are not 
adequately providing special education and related 
services to all children with disabilities residing in 
the areas they serve. 
‘‘(4) SPECIAL RULE FOR INCREASED FUNDS.—
‘‘(A) IN GENERAL.—If the amount avail-
able for allocations to States under subsection 
(d)(1) for a fiscal year is equal to or greater 
than the amount allocated to States for fiscal 
year 2003, then each State may retain not 
more than the amount of funds it had reserved 
under subsection (e)(1)(B) for fiscal year 2003. 
‘‘(B) EXCEPTION.—In any fiscal year in 
which the percentage increase of the amount 
available for allocations to States under sub-
section (d)(1) is equal to or greater than the 
rate of inflation, each State may increase its al-
location under subsection (e)(1)(B) by the
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amount allowed under subsection (e)(4)(B), for 
the sole purpose of making grants under sub-
section (e)(4)(A). 
‘‘(g) DEFINITIONS.—For the purpose of this sec-
tion—
‘‘(1) the term ‘average per-pupil expenditure in 
public elementary and secondary schools in the 
United States’ means—
‘‘(A) without regard to the source of 
funds—
‘‘(i) the aggregate current expendi-
tures, during the second fiscal year pre-
ceding the fiscal year for which the deter-
mination is made (or, if satisfactory data 
for that year are not available, during the 
most recent preceding fiscal year for which 
satisfactory data are available) of all local 
educational agencies in the 50 States and 
the District of Columbia); plus 
‘‘(ii) any direct expenditures by the 
State for the operation of those agencies; 
divided by 
‘‘(B) the aggregate number of children in 
average daily attendance to whom those agen-
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cies provided free public education during that 
preceding year; and 
‘‘(2) the term ‘State’ means each of the 50 
States, the District of Columbia, and the Common-
wealth of Puerto Rico. 
‘‘(h) 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 (c) for 
that fiscal year. Of the amount described in the 
preceding sentence—
‘‘(i) 80 percent shall be allocated to 
such schools by July 1 of that fiscal year; 
and
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‘‘(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 af-
filiated with the 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
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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);
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‘‘(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
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monitoring, enforcement, 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 du-
ties 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 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 through 5 on res-
ervations 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
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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 organi-
zation an amount based on the number of chil-
dren with disabilities ages 3 through 5 residing 
on reservations as reported annually, divided by 
the total of those children served by all tribes 
or tribal organizations. 
‘‘(C) SUBMISSION OF INFORMATION.—To 
receive a payment under this paragraph, the 
tribe or tribal organization shall submit such 
figures to the Secretary of the Interior as re-
quired to determine the amounts to be allocated 
under subparagraph (B). This information shall 
be compiled and submitted to the Secretary of 
Education. 
‘‘(D) USE OF FUNDS.—The funds received 
by a tribe or tribal organization shall be used 
to assist in child find, screening, and other pro-
cedures for the early identification of children 
aged 3 through 5, parent training, and the pro-
vision of direct services. These activities may be
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carried out directly or through contracts or co-
operative 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) ANNUAL 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 an annual 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 chil-
dren needing services during the year following 
the one in which the report is made. The Sec-
retary of the Interior shall include a summary 
of this information on an annual basis in the 
report to the Secretary of Education required 
under this subsection. The Secretary of Edu-
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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 the 
plan, the Secretary 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 cooperative agreements between the 
BIA, other Federal agencies, and other entities. The 
plan shall also be distributed upon request to States, 
State and local educational agencies, and other 
agencies providing services to infants, toddlers, and
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‘‘(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) $13,574,398,000 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 
striking ‘‘demonstrates to the satisfaction of’’ and insert-
ing ‘‘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:
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‘‘(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, including children 
with disabilities who have been suspended or ex-
pelled from school. 
‘‘(B) 
LIMITATION.—The 
obligation 
to 
make a free appropriate public education avail-
able 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 pub-
lic 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
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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 pro-
viding full educational opportunity to all children 
with disabilities and a detailed timetable for accom-
plishing 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 dis-
abilities are currently receiving needed special 
education and related services.
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‘‘(B) CONSTRUCTION.—Nothing in this 
Act requires that children be classified by their 
disability so long as each child who has a dis-
ability 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 
environment occurs only when the nature or se-
verity of the disability of a child is such that 
education in regular classes with the use of sup-
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plementary 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 
placements that violate the requirements of 
subparagraph (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 uti-
lized for the purposes of evaluation and place-
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ment of children with disabilities for services 
under this Act will be selected and administered 
so as not to be racially or culturally discrimina-
tory. Such materials or procedures shall be pro-
vided and administered in the child’s native lan-
guage or mode of communication, unless it 
clearly is not feasible to do so, and no single 
procedure shall be the sole criterion for deter-
mining an appropriate educational program for 
a child. 
‘‘(7) EVALUATION.—Children with disabilities 
are evaluated in accordance with subsections (a) 
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 transi-
tion to those preschool programs in a manner con-
sistent with section 637(a)(8). By the third birthday 
of such a child, an individualized education program 
or, if consistent with section 636(d), an individual-
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ized family service plan, has been developed and is 
being implemented for the child. The local edu-
cational agency will participate in transition plan-
ning conferences arranged by the designated lead 
agency under section 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 require-
ments, unless the Secretary has arranged 
for services to those children under sub-
section (f): 
‘‘(I) Amounts to be expended for 
the provision of those services (includ-
ing direct services to parentally-placed
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children) by a local educational agen-
cy 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
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Federal funds required to be expended 
under this paragraph. 
‘‘(V) 
Each 
local 
educational 
agency maintains in its records and 
provides to the State educational 
agency the number of children evalu-
ated under this paragraph, the num-
ber of children determined to be chil-
dren with disabilities, and the number 
of children served under this sub-
section. 
‘‘(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.
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‘‘(III) ACTIVITIES.—In carrying 
out this clause, the local educational 
agency, or where applicable, the State 
educational agency, shall undertake 
activities similar to those activities un-
dertaken for its public school children. 
‘‘(IV) COST.—The cost of car-
rying out this clause, including indi-
vidual evaluations, may not be consid-
ered in determining whether a local 
education agency has met its obliga-
tions under clause (i). 
‘‘(V) 
COMPLETION
PERIOD.—
Such child-find process shall be com-
pleted in a time period comparable to 
that for other students attending pub-
lic 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 dis-
abilities parentally-placed in private schools 
during the design and development of spe-
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cial education 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 
private school officials will be in-
formed of the process; 
‘‘(II) the determination of the 
proportionate share of Federal funds 
available to serve parentally-placed 
private school children with disabil-
ities 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 disabil-
ities including how such process will 
operate throughout the school year to 
ensure that parentally-placed children 
with disabilities identified through the 
child find process can meaningfully
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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 
agency 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 pri-
vate school official wishes to complain, 
the official shall provide the basis of 
the noncompliance with this section by 
the local educational agency to the
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State educational agency, and the 
local educational agency shall forward 
the appropriate documentation to the 
State educational agency. If the pri-
vate school official is dissatisfied with 
the decision of the State educational 
agency, such official may complain to 
the Secretary by providing the basis 
of the noncompliance with this section 
by the local educational agency to the 
Secretary, and the State educational 
agency shall forward the appropriate 
documentation to the Secretary. 
‘‘(v) PROVISION OF SERVICES.—
‘‘(I) DIRECTLY
OR
THROUGH 
CONTRACTS.—An agency may provide 
special education and related services 
directly or through contracts with 
public and private agencies, organiza-
tions, and institutions. 
‘‘(II) SECULAR, NEUTRAL, NON-
IDEOLOGICAL.—Special education and 
related services, including materials 
and equipment, shall be secular, neu-
tral, and nonideological.
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‘‘(vi) PUBLIC CONTROL OF FUNDS.—
‘‘(I) IN GENERAL.—The control 
of funds used to provide special edu-
cation and related services under this 
section, and title to materials, equip-
ment, and property purchased with 
those funds, shall be in a public agen-
cy 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 indi-
vidual, association, agency, orga-
nization, 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 
services, in accordance with an individual-
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ized education program, at no cost to their 
parents, if such children are placed in, or 
referred to, such schools or facilities by the 
State or appropriate local educational 
agency as the means of carrying out the 
requirements of this part or any other ap-
plicable law requiring the provision of spe-
cial education 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 agen-
cies 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 WITH-
OUT CONSENT OF OR REFERRAL BY THE PUB-
LIC AGENCY.—
‘‘(i) IN
GENERAL.—Subject to sub-
paragraph (A), this part does not require 
a local educational agency to pay for the 
cost of education, including special edu-
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cation 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 elected 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 serv-
ices under the authority of a public agency, 
enroll the child in a private elementary or 
secondary school without the consent of or 
referral by the public agency, a court or a 
hearing officer may require the agency to 
reimburse the parents for the cost of that 
enrollment if the court or hearing officer 
finds that the agency had not made a free 
appropriate public education available to 
the child in a timely manner prior to that 
enrollment. 
‘‘(iii) LIMITATION
ON
REIMBURSE-
MENT.—The cost of reimbursement de-
scribed in clause (ii) may be reduced or de-
nied—
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‘‘(I) if—
‘‘(aa) at the most recent 
IEP meeting that the parents at-
tended 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 en-
roll 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 
removal of the child from the 
public school, the parents did not 
give written notice to the public 
agency of the information de-
scribed in division (aa); 
‘‘(II) if, prior to the parents’ re-
moval of the child from the public 
school, the public agency informed the
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parents, through the notice require-
ments described in section 615(b)(7), 
of its intent to evaluate the child (in-
cluding a statement of the purpose of 
the evaluation that was appropriate 
and reasonable), but the parents did 
not make the child available for such 
evaluation; 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 de-
nied for failure to provide such notice 
if—
‘‘(aa) the school prevented 
the parent from providing such 
notice; 
‘‘(bb) the parents had not 
received notice, pursuant to sec-
tion 615, of the notice require-
ment in clause (iii)(I); or
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‘‘(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-
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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 ensur-
ing that the requirements of this part are met 
with respect to children with disabilities who 
are convicted as adults under State law and in-
carcerated 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
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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. 
‘‘(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) ensure that special education 
teachers who teach in core academic sub-
jects are highly qualified in those subjects; 
‘‘(ii) 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 
in order to ensure that such individuals are 
qualified to provide such services; and 
‘‘(iii) allow paraprofessionals and as-
sistants who are appropriately trained and
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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) INNOVATIVE STRATEGIES FOR PRO-
FESSIONAL
DEVELOPMENT.—The State edu-
cational agency encourages the development and 
use of research-based innovative strategies, such 
as strategies using technology, peer networks, 
and distance learning, to deliver intensive pro-
fessional development programs for special and 
regular 
education 
teachers, 
administrators, 
principals, and related services personnel that—
‘‘(i) improve educational results for 
students with disabilities; and 
‘‘(ii) are both cost-effective and easily 
accessible. 
‘‘(15) PERFORMANCE
GOALS
AND
INDICA-
TORS.—The State—
‘‘(A) has established goals for the perform-
ance of children with disabilities in the State 
that—
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‘‘(i) promote the purposes of this Act, 
as stated in section 601(d); 
‘‘(ii) are the same as the State’s defi-
nition of adequate yearly progress, includ-
ing the State’s objectives for progress by 
children with disabilities, under section 
1111(b)(2)(C) of the Elementary and Sec-
ondary Education Act of 1965; 
‘‘(iii) address dropout rates, as well as 
such other factors as the State may deter-
mine; and 
‘‘(iv) are consistent, to the extent ap-
propriate, with any other goals and stand-
ards for children established by the State; 
‘‘(B) has established performance indica-
tors the State will use to assess progress toward 
achieving those goals described in subparagraph 
(A), including measurable annual objectives for 
progress by children with disabilities under sec-
tion 1111(b)(2)(C) of the Elementary and Sec-
ondary Education Act of 1965; and 
‘‘(C) will annually 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 subpara-
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graph (A), which may include elements of the 
reports required under section 1111(h) of the 
Elementary and Secondary Education Act of 
1965. 
‘‘(16) PARTICIPATION IN ASSESSMENTS.—
‘‘(A) IN GENERAL.—(i) All children with 
disabilities are included in all general State and 
district-wide assessment programs, including 
assessments described under title I of the Ele-
mentary and Secondary Education Act of 1965, 
with appropriate accommodations, where nec-
essary and as indicated in their respective indi-
vidualized education programs. 
‘‘(ii) The State (or, in the case of a dis-
trict-wide assessment, the local educational 
agency) has developed and implemented guide-
lines for the provision of accommodations de-
scribed in clause (i). 
‘‘(iii) The State (or, in the case of a dis-
trict-wide assessment the local educational 
agency)—
‘‘(I) has developed and implemented 
guidelines for the participation of children 
with disabilities in alternate assessments 
for those children who cannot participate
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in regular assessments under clause (i); 
and 
‘‘(II) conducts those alternate assess-
ments. 
‘‘(B) REPORTS.—The State educational 
agency (or, in the case of a district-wide assess-
ment, the local educational agency) makes 
available to the public, and reports to the public 
with the same frequency and in the same detail 
as it reports on the assessment of nondisabled 
children, the following: 
‘‘(i) The number of children with dis-
abilities participating in regular assess-
ments, and the number of those children 
who were provided accommodations in 
order to participate in those assessments. 
‘‘(ii) The number of children with dis-
abilities participating in alternate assess-
ments. 
‘‘(iii) The performance of children 
with disabilities on regular assessments 
and on alternate assessments (if the num-
ber of children with disabilities partici-
pating in those assessments is sufficient to 
yield statistically reliable information and
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reporting that information would not re-
veal personally identifiable information 
about an individual student), compared 
with the achievement of all children, in-
cluding children with disabilities, on those 
assessments. 
‘‘(17) DISPUTE RESOLUTION.—The State has 
in effect systems of mediation and voluntary binding 
arbitration pursuant to section 615(e). 
‘‘(18) SUPPLEMENTATION
OF
STATE, LOCAL, 
AND OTHER FEDERAL FUNDS.—
‘‘(A) EXPENDITURES.—Funds paid to a 
State under this part will be expended in ac-
cordance with all the provisions of this part. 
‘‘(B) 
PROHIBITION
AGAINST
COMMIN-
GLING.—Funds paid to a State under this part 
will not be commingled with State funds. 
‘‘(C) PROHIBITION
AGAINST
SUPPLAN-
TATION AND CONDITIONS FOR WAIVER BY SEC-
RETARY.—Except as provided in section 613, 
funds paid to a State under this part will be 
used to supplement the level of Federal, State, 
and local funds (including funds that are not 
under the direct control of State or local edu-
cational agencies) expended for special edu-
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cation and related services provided to children 
with disabilities under this part and in no case 
to supplant such Federal, State, and local 
funds, except that, where the State provides 
clear and convincing evidence that all children 
with disabilities have available to them a free 
appropriate public education, the Secretary may 
waive, in whole or in part, the requirements of 
this subparagraph if the Secretary concurs with 
the evidence provided by the State. 
‘‘(19) MAINTENANCE
OF
STATE
FINANCIAL 
SUPPORT.—
‘‘(A) IN GENERAL.—The State does not re-
duce the amount of State financial support for 
special education and related services for chil-
dren with disabilities, or otherwise made avail-
able because of the excess costs of educating 
those children, below the amount of that sup-
port for the preceding fiscal year. 
‘‘(B) REDUCTION OF FUNDS FOR FAILURE 
TO
MAINTAIN
SUPPORT.—The Secretary shall 
reduce the allocation of funds under section 611 
for any fiscal year following the fiscal year in 
which the State fails to comply with the re-
quirement of subparagraph (A) by the same
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amount by which the State fails to meet the re-
quirement. 
‘‘(C) WAIVERS FOR EXCEPTIONAL OR UN-
CONTROLLABLE
CIRCUMSTANCES.—The Sec-
retary may waive the requirement of subpara-
graph (A) for a State, for one fiscal year at a 
time, if the Secretary determines that—
‘‘(i) granting a waiver would be equi-
table due to exceptional or uncontrollable 
circumstances such as a natural disaster or 
a precipitous and unforeseen decline in the 
financial resources of the State; or 
‘‘(ii) the State meets the standard in 
paragraph (18)(C) of this section for a 
waiver of the requirement to supplement, 
and not to supplant, funds received under 
this part. 
‘‘(D) SUBSEQUENT
YEARS.—If, for any 
year, a State fails to meet the requirement of 
subparagraph (A), including any year for which 
the State is granted a waiver under subpara-
graph (C), the financial support required of the 
State in future years under subparagraph (A) 
shall be the amount that would have been re-
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quired in the absence of that failure and not 
the reduced level of the State’s support. 
‘‘(20) 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. 
‘‘(21) 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—
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‘‘(i) parents of children with disabil-
ities (ages birth through 26); 
‘‘(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 
schools and public 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.
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‘‘(C) SPECIAL RULE.—A majority of the 
members of the panel shall be individuals with 
disabilities or parents of children with disabil-
ities ages birth through 26. 
‘‘(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 the education of children with disabil-
ities; 
‘‘(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.
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‘‘(22) SUSPENSION AND EXPULSION RATES.—
‘‘(A) IN GENERAL.—The State educational 
agency 
examines 
data, 
including 
data 
disaggregated by race and ethnicity, to deter-
mine if significant discrepancies are occurring 
in the rate of long-term suspensions and expul-
sions of children with disabilities—
‘‘(i) among local educational agencies 
in the State; or 
‘‘(ii) compared to such rates for non-
disabled children within such agencies. 
‘‘(B) REVIEW
AND
REVISION
OF
POLI-
CIES.—If such discrepancies are occurring, the 
State educational agency reviews and, if appro-
priate, revises (or requires the affected State or 
local educational agency to revise) its policies, 
procedures, and practices relating to the devel-
opment and implementation of IEPs, the use of 
positive behavioral interventions and supports, 
and procedural safeguards, to ensure that such 
policies, procedures, and practices comply with 
this Act.’’. 
(4) Section 612(a) of the Individuals with Disabilities 
Education Act (20 U.S.C. 1412(a)(13)–(22)) is amended 
by adding at the end the following:
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‘‘(23) INSTRUCTIONAL MATERIALS.—
‘‘(A) IN GENERAL.—The State adopts the 
national instructional materials accessibility 
standard for the purposes of providing instruc-
tional materials to blind persons or other per-
sons with print disabilities in a timely manner 
after the publication of the standard by the 
Secretary in the Federal Register.
‘‘(B) 
PURCHASE
REQUIREMENT.—Not 
later than 2 years after the date of the enact-
ment of the Improving Education Results for 
Children With Disabilities Act of 2003, the 
State educational agency, when purchasing in-
structional materials for use in public elemen-
tary and secondary schools within the State, re-
quires the publisher of the instructional mate-
rials, as a part of any purchase agreement that 
is made, renewed, or revised, to prepare and 
supply electronic files containing the contents of 
the instructional materials using the national 
instructional materials accessibility standard. 
‘‘(C) DEFINITION.—For purposes of this 
paragraph, the term ‘instructional materials’ 
means printed textbooks and related core mate-
rials that are written and published primarily
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for use in elementary school and secondary 
school instruction and are required by a State 
educational agency or local educational agency 
for use by pupils in the classroom. 
‘‘(24) 
OVERIDENTIFICATION
AND 
DISPROPORTIONALITY.—The State has in effect, 
consistent with the purposes of this Act and with 
section 618, policies and procedures designed to pre-
vent the overidentification or disproportionate rep-
resentation by race and ethnicity of children as chil-
dren with disabilities, including the identification of 
children as children with disabilities in accordance 
with a particular impairment described in section 
602(3). 
‘‘(25) PROHIBITION ON PSYCHOTROPIC MEDICA-
TION.—The State educational agency develops and 
implements policies and procedures prohibiting 
school personnel from requiring a child to obtain a 
prescription for substances covered by section 202(c) 
of the Controlled Substances Act (21 U.S.C. 812(c)) 
as a condition of attending school or receiving serv-
ices.’’. 
(b) STATE EDUCATIONAL AGENCY AS PROVIDER OF 
FREE APPROPRIATE PUBLIC EDUCATION
OR DIRECT 
SERVICES.—Section 612(b) of the Individuals with Dis-
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abilities Education Act (20 U.S.C. 1412(b)) is amended 
to read as follows: 
‘‘(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.—Section 
612(c) of the Individuals with Disabilities Education Act 
(20 U.S.C. 1412(c)) is amended to read as follows: 
‘‘(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 effective 
date of the Improving Education Results for Chil-
dren With Disabilities Act of 2003, the Secretary
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shall consider such State to have met such require-
ment 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.—If, after the effective date of the Improv-
ing Education Results for Children With Disabilities 
Act of 2003, the provisions of this Act are amended 
(or the regulations developed to carry out this Act 
are amended), or there is a new interpretation of 
this Act by a Federal court or a State’s highest 
court, or there is an official finding of noncompli-
ance with Federal law or regulations, the Secretary 
may require a State to modify its application only to 
the extent necessary to ensure the State’s compli-
ance with this part.’’.
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(d) APPROVAL BY THE SECRETARY.—Section 612(d) 
of the Individuals with Disabilities Education Act (20 
U.S.C. 1412(d)) is amended to read as follows: 
‘‘(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.—Section 612(e) of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1412(e)) is amended to 
read as follows: 
‘‘(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 in the State.’’.
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SEC. 203. LOCAL EDUCATIONAL AGENCY ELIGIBILITY. 
Section 613 of the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1413) is amended to read as follows: 
‘‘SEC. 613. LOCAL EDUCATIONAL AGENCY ELIGIBILITY. 
‘‘(a) IN GENERAL.—A local educational agency is eli-
gible for assistance under this part for a fiscal year if such 
agency reasonably demonstrates to the State educational 
agency that it meets each of the following conditions: 
‘‘(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 
shall be expended in accordance with the appli-
cable provisions of this part and—
‘‘(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; and
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‘‘(iii) shall not be used, except as pro-
vided in subparagraphs (B) and (C), to re-
duce the level of expenditures for the edu-
cation of children with disabilities made by 
the local educational agency from local 
funds below the level of those expenditures 
for the preceding fiscal year. 
‘‘(B) EXCEPTION.—Notwithstanding the 
restriction in subparagraph (A)(iii), a local edu-
cational agency may reduce the level of expendi-
tures where such reduction is attributable to—
‘‘(i) the voluntary departure, by re-
tirement or otherwise, or departure for just 
cause, 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;
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‘‘(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 
acquisition of equipment or the construc-
tion of school facilities. 
‘‘(C) TREATMENT OF FEDERAL FUNDS IN 
CERTAIN FISCAL YEARS.—
‘‘(i) Notwithstanding clauses (ii) and 
(iii) of subparagraph (A), for any fiscal 
year for which amounts appropriated to 
carry 
out 
section 
611 
exceeds 
$4,100,000,000, a local educational agency 
may treat as local funds, for the purpose 
of such clauses, up to 20 percent of the 
amount of funds it receives under this part 
that exceeds the amount it received under 
this part for the previous fiscal year. 
‘‘(ii) If a local educational agency 
chooses to use the authority under clause 
(i), then the agency shall use those local
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funds to provide additional funding for 
programs under the Elementary and Sec-
ondary Education Act of 1965, including, 
but not limited to, programs that address 
student achievement, comprehensive school 
reform, literacy, teacher quality and pro-
fessional 
development, 
school 
safety, 
before- and after- school learning opportu-
nities. 
‘‘(iii) Notwithstanding clause (i), if a 
State educational agency determines that a 
local educational agency is unable to estab-
lish and maintain programs of free appro-
priate public education that meet the re-
quirements of subsection (a), the State 
educational agency shall prohibit the local 
educational agency from treating funds re-
ceived under this part as local funds under 
clause (i) for that fiscal year, but only if 
it is authorized to do so by the State con-
stitution or a State statute. 
‘‘(D) 
SCHOOLWIDE
PROGRAMS
UNDER 
TITLE I OF THE ESEA.—Notwithstanding sub-
paragraph (A) or any other provision of this 
part, a local educational agency may use funds
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received under this part for any fiscal year to 
carry out a schoolwide program under section 
1114 of the Elementary and Secondary Edu-
cation Act of 1965, except that the amount so 
used in any such program shall not exceed—
‘‘(i) the number of children with dis-
abilities participating in the schoolwide 
program; multiplied by 
‘‘(ii)(I) the amount received by the 
local educational agency under this part 
for that fiscal year; divided by 
‘‘(II) the number of children with dis-
abilities in the jurisdiction of that agency. 
‘‘(3) PERSONNEL
DEVELOPMENT.—The local 
educational agency shall ensure that all personnel 
necessary to carry out this part are appropriately 
and adequately prepared, consistent with the re-
quirements of section 612 of this Act and section 
1119 of the Elementary and Secondary Education 
Act of 1965. 
‘‘(4) PERMISSIVE
USE
OF
FUNDS.—Notwith-
standing paragraph (2)(A) or section 612(a)(18)(B) 
(relating to commingled funds), funds provided to 
the local educational agency under this part may be 
used for the following activities:
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‘‘(A) SERVICES AND AIDS THAT ALSO BEN-
EFIT NONDISABLED CHILDREN.—For the costs 
of special education and related services and 
supplementary aids and services provided in a 
regular class or other education-related setting 
to a child with a disability in accordance with 
the individualized education program of the 
child, even if one or more nondisabled children 
benefit from such services. 
‘‘(B) PREREFERRAL
SERVICES.—To de-
velop and implement a system of comprehensive 
coordinated prereferral education support serv-
ices in accordance with subsection (f). 
‘‘(C) HIGH
COST
EDUCATION
AND
RE-
LATED SERVICES.—To establish and implement 
cost or risk sharing funds, consortia, or co-
operatives for the agency itself, or for local edu-
cational agencies working in consortium of 
which the local educational agency is a part, to 
pay for high cost special education and related 
services. 
‘‘(D) CASE
MANAGEMENT
AND
ADMINIS-
TRATION.—To purchase appropriate technology 
for record keeping, data collection, and related 
case management activities of teachers and re-
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lated services personnel who are providing serv-
ices described in the individualized education 
program of children with disabilities necessary 
to the implementation of those case manage-
ment activities. 
‘‘(E) SUPPLEMENTAL EDUCATIONAL SERV-
ICES
FOR
CHILDREN
WITH
DISABILITIES
IN 
SCHOOLS
DESIGNATED
FOR
IMPROVEMENT.—
For the reasonable additional expenses (as de-
termined by the local educational agency) of 
any necessary accommodations to allow children 
with disabilities who are being educated in a 
school identified for school improvement under 
section 1116(b) of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 
6316(b)) to be provided supplemental edu-
cational services under section 1116(e) of such 
Act on an equitable basis. 
‘‘(5) TREATMENT OF CHARTER SCHOOLS AND 
THEIR STUDENTS.—In carrying out this part with 
respect to charter schools that are public schools of 
the local educational agency, the local educational 
agency—
‘‘(A) serves children with disabilities at-
tending those schools in the same manner as it
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serves children with disabilities in its other 
schools, including providing supplemental and 
related services on site at the charter school 
when the local educational agency has a policy 
or practice of providing those services on site to 
its other schools; and 
‘‘(B) provides funds under this part to 
those schools on the same basis as it provides 
those funds to its other public schools (includ-
ing, at the option of such agency, proportional 
distribution based on relative enrollment of chil-
dren with disabilities at such charter schools), 
and at the same time as such agency distributes 
other Federal funds to those schools, consistent 
with the State’s charter law.
‘‘(6) PURCHASE
OF
INSTRUCTIONAL
MATE-
RIALS.—Not later than 2 years after the date of the 
enactment of the Improving Education Results for 
Children With Disabilities Act of 2003, the local 
educational agency, when purchasing instructional 
materials for use in public elementary and secondary 
schools within the local educational agency, requires 
the publisher of the instructional materials, as a 
part of any purchase agreement that is made, re-
newed, or revised, to prepare and supply electronic
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files containing the contents of the instructional ma-
terials using the national instructional materials ac-
cessibility standard described in section 612(a)(23). 
‘‘(7) 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 (15) and (16) of section 
612(a), information relating to the performance of 
children with disabilities participating in programs 
carried out under this part. 
‘‘(8) 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.
‘‘(9) RECORDS REGARDING MIGRATORY CHIL-
DREN
WITH
DISABILITIES.—The local educational 
agency shall cooperate in the Secretary’s efforts 
under section 1308 of the Elementary and Sec-
ondary Education 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 elec-
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tronically exchanging, among the States, health and 
educational information regarding such children. 
‘‘(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 effective date of the Improving Education Re-
sults 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 re-
ceiving 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 it submits to the State educational agency such 
modifications as the local educational agency deems 
necessary. 
‘‘(3) MODIFICATIONS
REQUIRED
BY
STATE 
EDUCATIONAL AGENCY.—If, after the date of the en-
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actment of the Improving Education Results for 
Children With Disabilities Act of 2003, the provi-
sions of this Act are amended (or the regulations de-
veloped to carry out this Act are amended), or there 
is a new interpretation of this Act by Federal or 
State courts, or there is an official finding of non-
compliance with Federal or State law or regulations, 
the State educational agency may require a local 
educational agency to modify its application only to 
the extent necessary to ensure the local educational 
agency’s compliance with this part or State law. 
‘‘(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 the 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-
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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. 
‘‘(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) JOINT ESTABLISHMENT.—
‘‘(A) IN
GENERAL.—A State educational 
agency may require a local educational agency
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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 be-
cause the local educational agency would not be 
able to establish and maintain programs of suf-
ficient size and scope to effectively meet the 
needs of children with disabilities. 
‘‘(B) CHARTER
SCHOOL
EXCEPTION.—A 
State educational agency may not require a 
charter school that is a local educational agency 
to jointly establish its eligibility under subpara-
graph (A) unless it is explicitly permitted to do 
so under the State’s charter school statute. 
‘‘(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(f) if such 
agencies were eligible for such payments. 
‘‘(3) REQUIREMENTS.—Local educational agen-
cies that establish joint eligibility under this sub-
section shall—
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‘‘(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 imple-
menting 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. 
‘‘(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)(5).
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‘‘(f) PREREFERRAL SERVICES.—
‘‘(1) IN GENERAL.—A local educational agency 
may use not more than 15 percent of the amount 
such agency receives under this part for any fiscal 
year, in combination with other amounts (which may 
include amounts other than education funds), to de-
velop and implement comprehensive coordinated 
prereferral educational support services for students 
in kindergarten through grade 12 (with a particular 
emphasis on students in grades kindergarten 
through 3) who have not been identified as needing 
special education or related services but who need 
additional academic and behavioral support to suc-
ceed in a general education environment. 
‘‘(2) ACTIVITIES.—In implementing comprehen-
sive coordinated prereferral educational services 
under this subsection, a local educational agency 
may carry out the following activities: 
‘‘(A) Professional development (which may 
be provided by entities other than local edu-
cational agencies) for teachers to enable them 
to deliver scientifically based academic and be-
havioral interventions, including scientifically 
based literacy instruction.
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‘‘(B) Providing educational evaluations, 
services, and supports, including scientifically 
based literacy instruction and speech therapy. 
‘‘(C) Providing behavioral evaluations and 
services and supports, including positive behav-
ioral interventions and supports. 
‘‘(3) EXCLUSION.—Nothing in this subsection 
shall be construed to either limit or create a right 
to a free appropriate public education under this 
part. 
‘‘(4) 
REPORTING.—Each 
local 
educational 
agency that develops and maintains comprehensive 
coordinated prereferral educational support services 
under this subsection shall annually report to the 
State educational agency on—
‘‘(A) the number of students served under 
this subsection; and 
‘‘(B) the number of students served under 
this subsection who subsequently receive special 
education and related services under this Act 
during the preceding 2-year period. 
‘‘(5) COORDINATION WITH THE ELEMENTARY 
AND SECONDARY EDUCATION ACT OF 1965.—
‘‘(A) IN GENERAL.—Comprehensive coordi-
nated prereferral educational support services
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provided under this subsection may be aligned 
with activities funded by, and carried out 
under, the Elementary and Secondary Edu-
cation Act of 1965, such as the Reading First 
program under subpart 1 of part B of title I of 
such Act, the Early Reading First program 
under subpart 2 of part B of title I of such Act, 
reading and math supports under part A of 
title I of such Act, and behavior intervention 
supports, that improve results for children with 
disabilities. 
‘‘(B) MAINTENANCE OF EFFORT.—Funds 
used under this section shall be used to supple-
ment, and not supplant, funds made available 
under the Elementary and Secondary Education 
Act of 1965. 
‘‘(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 re-
lated services directly to children with disabilities re-
siding in the area served by that local agency, or for 
whom that State agency is responsible, if the State
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‘‘(h) STATE AGENCY ELIGIBILITY.—Any State agen-
cy that desires to receive a subgrant for any fiscal year 
under section 611(f) 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. 
‘‘(i) DISCIPLINARY INFORMATION.—The State may 
require that a local educational agency include in the 
records of a child with a disability a statement of any cur-
rent or previous disciplinary action that has been taken 
against the child and transmit such statement to the same 
extent that such disciplinary information is included in, 
and transmitted with, the student records of nondisabled 
children. The statement may include a description of any 
behavior engaged in by the child that required disciplinary 
action, a description of the disciplinary action taken, and 
any other information that is relevant to the safety of the 
child and other individuals involved with the child. If the
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State adopts such a policy, and the child transfers from 
one school to another, the transmission of any of the 
child’s records must include both the child’s current indi-
vidualized education program and any such statement of 
current or previous disciplinary action that has been taken 
against the child.’’. 
SEC. 204. EVALUATIONS, ELIGIBILITY DETERMINATIONS, 
INDIVIDUALIZED 
EDUCATION 
PROGRAMS, 
AND EDUCATIONAL PLACEMENTS. 
(a) IN GENERAL.—Section 614 of the Individuals 
with Disabilities Education Act (20 U.S.C. 1414) is 
amended to read as follows: 
‘‘SEC. 614. EVALUATIONS, ELIGIBILITY DETERMINATIONS, 
INDIVIDUALIZED 
EDUCATION 
PROGRAMS, 
AND EDUCATIONAL PLACEMENTS. 
‘‘(a) EVALUATIONS, PARENTAL CONSENT, AND RE-
EVALUATIONS.—
‘‘(1) INITIAL EVALUATIONS.—
‘‘(A) IN
GENERAL.—A State educational 
agency, other State agency, or local educational 
agency shall conduct a full and individual initial 
evaluation, in accordance with this paragraph 
and subsection (b), before the initial provision 
of special education and related services to a 
child with a disability under this part.
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‘‘(B) REQUEST
FOR
INITIAL
EVALUA-
TION.—Consistent with subparagraph (D), ei-
ther a parent of a child, a State educational 
agency, other State agency as appropriate, or 
local educational agency may initiate a request 
for an initial evaluation to determine if the 
child is a child with a disability. 
‘‘(C) 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. 
‘‘(D) PARENTAL CONSENT.—
‘‘(i) IN GENERAL.—
‘‘(I) 
CONSENT
FOR
INITIAL 
EVALUATION.—The agency proposing 
to conduct an initial evaluation to de-
termine if the child qualifies as a child 
with a disability as defined in section 
602(3) shall obtain informed consent 
from the parent of such child before 
conducting the evaluation. Parental 
consent for evaluation shall not be
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construed as consent for placement 
for receipt of special education and re-
lated services. 
‘‘(II) CONSENT FOR SERVICES.—
An agency that is responsible for 
making a free appropriate public edu-
cation available to a child with a dis-
ability under this part shall seek to 
obtain informed consent from the par-
ent of such child before providing spe-
cial education and related services to 
the child. 
‘‘(ii) ABSENCE OF CONSENT.—
‘‘(I) FOR INITIAL EVALUATION.—
If the parent of such child does not 
provide consent for an initial evalua-
tion under clause (i)(I), or the parent 
fails to respond to a request to pro-
vide the consent, the local educational 
agency may pursue the initial evalua-
tion of the child through the proce-
dures described in section 615, except 
to the extent inconsistent with State 
law relating to such parental consent.
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‘‘(II) FOR SERVICES.—If the par-
ent of such child does not provide con-
sent for services under clause (i)(II), 
or the parent fails to respond to a re-
quest to provide the consent, the local 
educational agency shall not provide 
special education and related services 
to the child through the procedures 
described in section 615. 
‘‘(III) EFFECT ON AGENCY OBLI-
GATIONS.—In any case for which 
there is an absence of consent for an 
initial evaluation under subclause (I), 
or for which there is an absence of 
consent for services under subclause 
(II)—
‘‘(aa) the local educational 
agency shall not be required to 
convene an IEP meeting or de-
velop an IEP under this section 
for the child; and 
‘‘(bb) the local educational 
agency shall not be considered to 
be in violation of any require-
ment under this part (including
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the requirement to make avail-
able a free appropriate public 
education to the child) with re-
spect to the lack of an initial 
evaluation of the child, an IEP 
meeting with respect to the child, 
or the development of an IEP 
under this section for the child.
‘‘(E) 
RULE
OF
CONSTRUCTION.—The 
screening of a student by a teacher or specialist 
to determine appropriate instructional strate-
gies for curriculum implementation shall not be 
considered to be an evaluation for eligibility for 
special education and related services. 
‘‘(2) REEVALUATIONS.—
‘‘(A) IN
GENERAL.—A local educational 
agency shall ensure that a reevaluation of each 
child with a disability is conducted in accord-
ance with subsections (b) and (c)—
‘‘(i) if the local educational agency de-
termines that the educational needs, in-
cluding improved academic achievement, of 
the child warrant a reevaluation; or 
‘‘(ii) if the child’s parent or teacher 
requests a reevaluation.
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‘‘(B) LIMITATION.—A reevaluation con-
ducted under subparagraph (A) shall occur—
‘‘(i) no more than once a year, unless 
the parent and the local educational agen-
cy agree otherwise; and 
‘‘(ii) at least once every three years, 
unless the parent and the local educational 
agency agree that a reevaluation is unnec-
essary. 
‘‘(b) EVALUATION PROCEDURES.—
‘‘(1) NOTICE.—The local educational agency 
shall provide notice to the parent of a child with a 
disability, in accordance with subsections (b)(3), 
(b)(4), and (c) of section 615, that describes any 
evaluation procedures such agency proposes to con-
duct. 
‘‘(2) CONDUCT
OF
EVALUATION.—In con-
ducting the evaluation, the local educational agency 
shall—
‘‘(A) use multiple up-to-date measures and 
assessments to gather relevant functional, de-
velopmental, and academic information, includ-
ing information provided by the parent, to as-
sist in determining—
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‘‘(i) whether the child is a child with 
a disability; and 
‘‘(ii) the content of the child’s individ-
ualized education program, including infor-
mation related to enabling the child to be 
involved in and progress in the general 
education curriculum or, for preschool chil-
dren, to participate in appropriate activi-
ties; 
‘‘(B) not use any single measure or assess-
ment as the sole criterion for determining 
whether a child is a child with a disability or 
determining an appropriate educational pro-
gram 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. 
‘‘(3) ADDITIONAL REQUIREMENTS.—Each local 
educational agency shall ensure that—
‘‘(A) assessments and other evaluation 
measures used to assess a child under this sec-
tion—
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‘‘(i) are selected and administered so 
as not to be discriminatory on a racial or 
cultural basis; 
‘‘(ii) are provided and administered in 
the language and form most likely to yield 
accurate academic and developmental data, 
unless it is clearly not feasible to do so; 
‘‘(iii) are used for the purposes for 
which the assessments or measures are 
valid and reliable; 
‘‘(iv) are administered by trained and 
knowledgeable personnel; and 
‘‘(v) are administered in accordance 
with any instructions provided by the pro-
ducer of such tests; 
‘‘(B) the child is assessed in all areas of 
suspected disability; and 
‘‘(C) assessment tools and strategies that 
provide relevant information that directly as-
sists persons in determining the educational 
needs of the child are provided. 
‘‘(4) DETERMINATION
OF
ELIGIBILITY
AND 
EDUCATIONAL NEED.—Upon completion of the ad-
ministration of assessments and other evaluation 
measures—
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‘‘(A) the determination of whether the 
child is a child with a disability as defined in 
section 602(3) and the educational needs of the 
child shall be made by a team of qualified pro-
fessionals and the parent of the child in accord-
ance with paragraph (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 if the deter-
minant factor for such determination is—
‘‘(A) lack of scientifically based instruction 
practices and programs that contain the essen-
tial components of reading instruction (as that 
term is defined in section 1208(3) of the Ele-
mentary and Secondary Education Act of 
1965); 
‘‘(B) lack of instruction in math; or 
‘‘(C) limited English proficiency. 
‘‘(6) SPECIFIC LEARNING DISABILITIES.—
‘‘(A) IN GENERAL.—Notwithstanding sec-
tion 607 of this Act, when determining whether
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a child has a specific learning disability as de-
fined under this Act, the local educational agen-
cy shall not be required to take into consider-
ation whether the child has a severe discrepancy 
between achievement and intellectual ability in 
oral expression, listening comprehension, writ-
ten expression, basic reading skill, reading com-
prehension, mathematical calculation, or mathe-
matical reasoning. 
‘‘(B) ADDITIONAL AUTHORITY.—In deter-
mining whether a child has a specific learning 
disability, a local educational agency may use a 
process which determines if a child responds to 
scientific, research-based intervention. 
‘‘(c) ADDITIONAL REQUIREMENTS FOR EVALUATION 
AND REEVALUATIONS.—
‘‘(1) 
REVIEW
OF
EXISTING
EVALUATION 
DATA.—As part of an initial evaluation (if appro-
priate) and as part of any reevaluation under this 
section, the IEP Team described in subsection 
(d)(1)(B) and other qualified professionals, as ap-
propriate, shall—
‘‘(A) review existing evaluation data on the 
child, including evaluations and information 
provided by the parents of the child, current
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classroom-based local or State assessments, and 
classroom-based observations, and teacher and 
related services providers observations; 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 is a child with 
a disability as defined in section 602(3), 
and the educational needs of the child, or, 
in case of a reevaluation of a child, wheth-
er the child continues to have such a dis-
ability and such educational needs; 
‘‘(ii) the present levels of academic 
achievement and related developmental 
needs of the child; 
‘‘(iii) whether the child needs special 
education and related services, or in the 
case of a reevaluation of a child, whether 
the child continues to need special edu-
cation and related services; and 
‘‘(iv) whether any additions or modi-
fications to the special education and re-
lated services are needed to enable the 
child to meet the measurable annual goals 
set out in the individualized education pro-
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gram of the child and to participate, as ap-
propriate, in the general education cur-
riculum. 
‘‘(2) SOURCE OF DATA.—The local educational 
agency shall administer such assessments and other 
evaluation measures as may be needed to produce 
the data identified by the IEP Team under para-
graph (1)(B). 
‘‘(3) PARENTAL
CONSENT.—Each local edu-
cational agency shall obtain informed parental con-
sent, in accordance with subsection (a)(1)(D), prior 
to conducting any reevaluation of a child with a dis-
ability, except that such informed parental consent 
need not be obtained if the local educational agency 
can demonstrate that it had taken reasonable meas-
ures to obtain such consent and the child’s parent 
has failed to respond. 
‘‘(4) REQUIREMENTS IF ADDITIONAL DATA ARE 
NOT NEEDED.—If the IEP Team and other qualified 
professionals, as appropriate, determine that no ad-
ditional data are needed to determine whether the 
child continues to be a child with a disability and to 
determine the child’s educational needs, the local 
educational agency—
‘‘(A) shall notify the child’s parents of—
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‘‘(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 to determine the child’s edu-
cational needs; and 
‘‘(B) shall not be required to conduct such 
an assessment unless requested to by the child’s 
parents. 
‘‘(5) EVALUATIONS BEFORE CHANGE IN ELIGI-
BILITY.—A local educational agency shall evaluate a 
child with a disability in accordance with this section 
prior to graduation, and before determining that the 
child is no longer a child with a disability, only in 
instances where the IEP Team is not in agreement 
regarding the change in eligibility. 
‘‘(d) INDIVIDUALIZED EDUCATION PROGRAMS.—
‘‘(1) DEFINITIONS.—As used in this title: 
‘‘(A) INDIVIDUALIZED
EDUCATION
PRO-
GRAM.—
‘‘(i) IN GENERAL.—The term ‘individ-
ualized education program’ or ‘IEP’ means 
a written statement for each child with a 
disability that is developed, reviewed, and
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revised in accordance with this section and 
that includes—
‘‘(I) a statement of the child’s 
present levels of academic achieve-
ment, including—
‘‘(aa) how the child’s dis-
ability affects the child’s involve-
ment and progress in the general 
education curriculum; 
‘‘(bb) for preschool children, 
as appropriate, how the disability 
affects the child’s participation in 
appropriate activities; and 
‘‘(cc) until the beginning of 
the 2005–2006 school year, a de-
scription of benchmarks or short-
term objectives, except in the 
case of children with disabilities 
who take alternate assessments 
aligned to alternate achievement 
standards, 
a 
description 
of 
benchmarks or short-term objec-
tives shall continue to be in-
cluded;
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‘‘(II) a statement of measurable 
annual goals designed to—
‘‘(aa) meet the child’s needs 
that result from the child’s dis-
ability to enable the child to be 
involved in and make progress in 
the general education curriculum; 
and 
‘‘(bb) meet the child’s other 
educational needs that result 
from the child’s disability; 
‘‘(III) a statement of the special 
education and related services and 
supplementary 
aids 
and 
services, 
based on peer-reviewed research to the 
extent practicable, to be provided to 
the child, or on behalf of the child, 
and a statement of the program modi-
fications or supports for school per-
sonnel that will be provided for the 
child—
‘‘(aa) to advance appro-
priately toward attaining the an-
nual goals;
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‘‘(bb) to be involved in and 
make progress in the general 
education curriculum in accord-
ance with subclause (I) and to 
participate in extracurricular and 
other nonacademic activities; and 
‘‘(cc) to be educated and 
participate with other children 
with disabilities and nondisabled 
children in the activities de-
scribed in this paragraph; 
‘‘(IV) an explanation of the ex-
tent, if any, to which the child will not 
participate with nondisabled children 
in the regular class and in the activi-
ties described in subclause (III)(cc); 
‘‘(V)(aa) a statement of any indi-
vidual appropriate accommodations in 
the administration of State or district-
wide assessments of student achieve-
ment that are necessary to measure 
the academic achievement of the child 
consistent 
with 
section 
612(a)(16)(A)(ii); and
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‘‘(bb) if the IEP Team deter-
mines that the child will not partici-
pate in a particular State or district-
wide assessment of student achieve-
ment (or part of such an assessment), 
a statement of—
‘‘(AA) why that assessment 
is not appropriate for the child; 
and 
‘‘(BB) how the child will be 
assessed 
consistent 
with 
612(a)(16)(A); 
‘‘(VI) the projected date for the 
beginning of the services and modi-
fications described in subclause (III), 
and the anticipated frequency, loca-
tion, and duration of those services 
and modifications; 
‘‘(VII)(aa) beginning at age 14, 
and updated annually, a statement of 
the transition service needs of the 
child under the applicable components 
of the child’s IEP that focuses on the 
child’s courses of study (such as par-
ticipation 
in 
advanced-placement
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courses or a vocational education pro-
gram); 
‘‘(bb) beginning at age 16 (or 
younger, if determined appropriate by 
the IEP Team), a statement of need-
ed transition services for the child, in-
cluding, when appropriate, a state-
ment of the interagency responsibil-
ities or any needed linkages; and 
‘‘(cc) beginning at least 1 year 
before the child reaches the age of 
majority under State law, a statement 
that the child has been informed 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(l); and 
‘‘(VIII) a statement of—
‘‘(aa) 
how 
the 
child’s 
progress toward the annual goals 
described in subclause (II) will be 
measured; and 
‘‘(bb) how the child’s par-
ents will be regularly informed 
(by such means as periodic report
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cards), at least as often as par-
ents are informed of their non-
disabled children’s progress, of 
the sufficiency of their child’s 
progress toward the annual goals 
described in subclause (II). 
‘‘(ii) 
RULE
OF
CONSTRUCTION.—
Nothing in this subparagraph shall be con-
strued to require—
‘‘(I) that additional information 
be included in a child’s IEP beyond 
what is required in this subsection; 
and 
‘‘(II) the IEP Team to include 
information under one component of a 
child’s IEP that is already contained 
under another component of such 
IEP. 
‘‘(B) INDIVIDUALIZED
EDUCATION
PRO-
GRAM
TEAM.—The term ‘individualized edu-
cation program team’ or ‘IEP Team’ means a 
group of individuals composed of—
‘‘(i) the parents of a child with a dis-
ability;
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‘‘(ii) a regular education teacher of 
such child, but such teacher shall not be 
required to attend a meeting or part of a 
meeting of the IEP Team involving issues 
not related to the child’s participation in 
the regular education environment, nor 
shall multiple regular education teachers, if 
the child has more than one regular edu-
cation teacher, be required to attend a 
meeting, or part of a meeting, of the IEP 
team; 
‘‘(iii) at least 1 special education 
teacher, or where appropriate, at least 1 
special education provider of such child; 
‘‘(iv) a representative of the local edu-
cational agency who—
‘‘(I) is qualified to provide, or su-
pervise the provision of, specially de-
signed instruction to meet the unique 
needs of children with disabilities; 
‘‘(II) is knowledgeable about the 
general education curriculum; and 
‘‘(III) is knowledgeable about the 
availability of resources of the local 
educational agency;
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‘‘(v) an individual who can interpret 
the instructional implications of evaluation 
results, who may be a member of the team 
described in clauses (ii) through (vi); 
‘‘(vi) at the discretion of the parent or 
the agency, other individuals who have 
knowledge or special expertise regarding 
the child, including related services per-
sonnel as appropriate; and 
‘‘(vii) whenever appropriate, the child 
with a disability. 
‘‘(2) REQUIREMENT THAT PROGRAM BE IN EF-
FECT.—
‘‘(A) IN GENERAL.—At the beginning of 
each school year, each local educational agency, 
State educational agency, or other State agen-
cy, as the case may be, shall have in effect, for 
each child with a disability in its jurisdiction, 
an individualized education program, as defined 
in paragraph (1)(A). 
‘‘(B) PROGRAM
FOR
CHILD
AGED
THROUGH 5.—In the case of a child with a dis-
ability aged 3 through 5 (or, at the discretion 
of the State educational agency, a 2 year-old 
child with a disability who will turn age 3 dur-
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ing the school year), the IEP Team shall con-
sider the individualized family service plan that 
contains the material described in section 636, 
and that is developed in accordance with this 
section, and the individualized family service 
plan 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. 
‘‘(3) DEVELOPMENT OF IEP.—
‘‘(A) IN
GENERAL.—In developing each 
child’s IEP, the IEP Team, subject to subpara-
graph (C), shall consider—
‘‘(i) the results of the initial evalua-
tion or most recent evaluation of the child; 
‘‘(ii) the academic and developmental 
needs of the child; 
‘‘(iii) the strengths of the child; and 
‘‘(iv) the concerns of the parents for 
enhancing the education of their child. 
‘‘(B) CONSIDERATION
OF
SPECIAL
FAC-
TORS.—The IEP Team shall—
‘‘(i) in the case of a child whose be-
havior impedes his or her learning or that
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of others, consider the use of positive be-
havioral interventions and supports, and 
other strategies, to address that behavior; 
‘‘(ii) in the case of a child with limited 
English proficiency, consider the language 
needs of the child as such needs relate to 
the child’s IEP; 
‘‘(iii) in the case of a child who is 
blind or visually impaired, provide for in-
struction in Braille and the use of Braille 
unless the IEP Team determines, after an 
evaluation of the child’s reading and writ-
ing 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), that in-
struction in Braille or the use of Braille is 
not appropriate for the child; 
‘‘(iv) 
consider 
the 
communication 
needs of the child, and in the case of a 
child who is deaf or hard of hearing, con-
sider the child’s language and communica-
tion needs, opportunities for direct commu-
nications with peers and professional per-
sonnel in the child’s language and commu-
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nication mode, academic level, and full 
range of needs, including opportunities for 
direct instruction in the child’s language 
and communication mode; and 
‘‘(v) consider whether the child needs 
assistive technology devices and services. 
‘‘(C) REQUIREMENT
WITH
RESPECT
TO 
REGULAR EDUCATION TEACHER.—The regular 
education teacher of the child, if a member of 
the 
IEP 
Team 
pursuant 
to 
paragraph 
(1)(B)(ii), shall, to the extent appropriate, par-
ticipate in the development of the IEP of the 
child, including the determination of appro-
priate positive behavioral interventions and sup-
ports, and other strategies and the determina-
tion of supplementary aids and services, pro-
gram modifications, and support for school per-
sonnel consistent with paragraph (1)(A)(i)(III). 
‘‘(D) IEP TEAM ATTENDANCE.—The par-
ent of a child with a disability and the local 
educational agency may jointly excuse any 
member of the IEP Team from attending all or 
part of an IEP meeting if they agree that the 
member’s attendance is not necessary. The IEP 
Team shall obtain the member’s input prior to
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an IEP meeting from which the member is ex-
cused. 
‘‘(E) AGREEMENT ON MEETING.—In mak-
ing changes to a child’s IEP after the annual 
IEP meeting, the parent of a child with a dis-
ability and the local educational agency may 
agree not to reconvene the IEP team and in-
stead develop a written document to amend or 
modify the child’s current IEP. 
‘‘(F) CONSOLIDATION OF IEP TEAM MEET-
INGS.—To the extent possible, the local edu-
cational agency shall encourage the consolida-
tion of IEP Team meetings for a child. 
‘‘(G) AMENDMENTS.—Changes to the IEP 
may be made either by the entire IEP Team or, 
as provided in subparagraph (E), by amending 
the IEP rather than by redrafting the entire 
IEP. 
‘‘(4) REVIEW AND REVISION OF IEP.—
‘‘(A) IN GENERAL.—The local educational 
agency shall ensure that, subject to subpara-
graph (B), the IEP Team—
‘‘(i) reviews the child’s IEP periodi-
cally, but not less than annually, to deter-
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mine whether the annual goals for the 
child are being achieved; and 
‘‘(ii) revises the IEP as appropriate to 
address—
‘‘(I) 
any 
lack 
of 
expected 
progress toward the annual goals and 
in the general education curriculum, 
where appropriate; 
‘‘(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 subsection (c)(1)(B); 
‘‘(IV) 
the 
child’s 
anticipated 
needs; or 
‘‘(V) other matters. 
‘‘(B) REQUIREMENT
WITH
RESPECT
TO 
REGULAR EDUCATION TEACHER.—The regular 
education teacher of the child, if a member of 
the IEP Team, shall, consistent with this sec-
tion, participate in the review and revision of 
the IEP of the child. 
‘‘(5) MULTI-YEAR IEP.—
‘‘(A) 
DEVELOPMENT.—The 
local 
edu-
cational agency may offer to the parent of a
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child with a disability the option of developing 
a comprehensive multi-year IEP, not to exceed 
3 years, that is designed to cover the natural 
transition points for the child. With the consent 
of the parent, the IEP Team shall develop an 
IEP, as described in paragraphs (1) and (3), 
that is designed to serve the child for the ap-
propriate multi-year period, which includes a 
statement of—
‘‘(i) measurable goals pursuant to 
paragraph (1)(A)(i)(II), coinciding with 
natural transition points for the child, that 
will enable the child to be involved in and 
make progress in the general education 
curriculum and that will meet the child’s 
other needs that result from the child’s 
disability; and 
‘‘(ii) measurable annual goals for de-
termining progress toward meeting the 
goals described in clause (i). 
‘‘(B) REVIEW
AND
REVISION
OF
MULTI-
YEAR IEP.—
‘‘(i) REQUIREMENT.—The IEP Team 
shall conduct a review under paragraph (4)
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of the child’s multi-year IEP at each of the 
child’s natural transition points. 
‘‘(ii) STREAMLINED ANNUAL REVIEW 
PROCESS.—In years other than a child’s 
natural transition points, the local edu-
cational agency shall ensure that the IEP 
Team—
‘‘(I) provides an annual review of 
the child’s IEP to determine the 
child’s current levels of progress and 
determine whether the annual goals 
for the child are being achieved; and 
‘‘(II) amends the IEP, as appro-
priate, to enable the child to continue 
to meet the measurable goals set out 
in the IEP. 
‘‘(iii) COMPREHENSIVE REVIEW PROC-
ESS.—If the IEP Team determines, on the 
basis of the review under clause (i), that 
the child is not making sufficient progress 
toward the goals described in subpara-
graph (A), the local educational agency 
shall ensure that the IEP Team reviews 
the IEP under paragraph (4), within 30 
calendar days.
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‘‘(iv) PARENTAL
PREFERENCE.—At 
the request of the parent, the IEP Team 
shall conduct a review under paragraph (4) 
of the child’s multi-year IEP rather than a 
streamlined annual review under clause 
(ii). 
‘‘(C) DEFINITION.—As used in this para-
graph, the term ‘natural transition points’ 
means those periods that are close in time to 
the transition of a child with a disability from 
preschool to elementary grades, from elemen-
tary grades to middle or junior high school 
grades, from middle or junior high school 
grades to high school grades, and from high 
school grades to post-secondary activities, but 
in no case longer than 3 years. 
‘‘(6) FAILURE
TO
MEET
TRANSITION
OBJEC-
TIVES.—If a participating agency, other than the 
local educational agency, fails to provide the transi-
tion services described in the IEP in accordance with 
paragraph (1)(A)(i)(VII), the local educational agen-
cy shall reconvene the IEP Team to identify alter-
native strategies to meet the transition objectives for 
the child set out in that program.
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‘‘(7) CHILDREN WITH DISABILITIES IN ADULT 
PRISONS.—
‘‘(A) IN GENERAL.—The following require-
ments do not apply to children with disabilities 
who are convicted as adults under State law 
and incarcerated in adult prisons: 
‘‘(i) The requirements contained in 
section 
612(a)(16) 
and 
paragraph 
(1)(A)(i)(V) of this subsection (relating to 
participation of children with disabilities in 
general assessments). 
‘‘(ii) The requirements of items (aa) 
and (bb) of paragraph (1)(A)(i)(VII) of 
this subsection (relating to transition plan-
ning and transition services), do not apply 
with respect to such children whose eligi-
bility under this part will end, because of 
their age, before they will be released from 
prison. 
‘‘(B) ADDITIONAL
REQUIREMENT.—If a 
child with a disability is convicted as an adult 
under State law and incarcerated in an adult 
prison, the child’s IEP Team may modify the 
child’s IEP or placement notwithstanding the 
requirements of sections 612(a)(5)(A) and
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614(d)(1)(A) if the State has demonstrated a 
bona fide security or compelling penological in-
terest that cannot otherwise be accommodated. 
‘‘(e) EDUCATIONAL PLACEMENTS.—Each local edu-
cational agency or State educational agency shall ensure 
that the parents of each child with a disability are mem-
bers of any group that makes decisions on the educational 
placement of their child. 
‘‘(f) ALTERNATIVE MEANS OF MEETING PARTICIPA-
TION.—When conducting IEP team meetings and place-
ment meetings pursuant to this section and 615, the par-
ent of a child with a disability and a local educational 
agency may agree to use alternative means of meeting par-
ticipation, such as video conferences and conference 
calls.’’. 
(b) FINDINGS; SENSE OF CONGRESS.—
(1) FINDINGS.—Congress finds the following: 
(A) Certain of the categories of disability 
that allow students to qualify for benefits under 
the Individuals with Disabilities Education Act 
have not been scientifically established and, as 
a result, some children who do not have actual 
learning disabilities are classified as having dis-
abilities under that Act.
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(B) Nearly one in eight students is now la-
beled as disabled. 
(C) Over one-half of those students are 
classified as having learning and behavioral 
challenges. 
(D) Current definitions of disabilities in 
the Code of Federal Regulations, particularly 
the definition of ‘‘emotional disturbance’’, are 
vague and ambiguous. 
(E) The absence of reliable methods for 
distinguishing children with a special learning 
disability from children who have lower than ex-
pected achievement leads to over-identification 
and misidentification of non-disabled students 
as students with disabilities. 
(F) The lack of consistently applied diag-
nostic criteria for specific learning disabilities 
makes it possible to diagnose almost any low or 
underachieving child as a student with a dis-
ability. 
(G) The President’s Commission on Excel-
lence in Special Education (PCESE) found in 
its July 1, 2002, report, ‘‘A New Era: Revital-
izing Special Education for Children and their 
Families’’, that many of the current methods of
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identifying children with disabilities lack valid-
ity and, as a result, thousands of children are 
misidentified every year, while many others are 
not identified early enough or at all. 
(H) The President’s Commission also 
found that emotional and behavioral difficulties 
could be prevented through classroom-based ap-
proaches involving positive discipline and class-
room management. 
(I) According to testimony from a March 
13, 2003, hearing before the Subcommittee on 
Education Reform of the Committee on Edu-
cation and the Workforce of the House of Rep-
resentatives, students are frequently referred to 
special education because they are not suc-
ceeding in the general education setting, and 
not because they are actually disabled. 
(J) Students with controllable behavioral 
problems are often classified as having learning 
disabilities and therefore are not held respon-
sible for their own behavior. 
(K) According to testimony by Secretary of 
Education Rod Paige on October 4, 2001, be-
fore the Committee on Education and the 
Workforce of the House of Representatives, our
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educational system fails to teach many children 
fundamental skills like reading, then inappro-
priately identifies some of them as having dis-
abilities, thus harming the educational future of 
those children who are misidentified and reduc-
ing the resources available to serve children 
with disabilities. 
(2) SENSE OF CONGRESS.—It is the sense of 
Congress that—
(A) students who have not been diagnosed 
by a physician or other person certified by a 
State health board as having a disability (as de-
fined under the Individuals with Disabilities 
Education Act) should not be classified as chil-
dren with disabilities for purposes of receiving 
services under that Act; and 
(B) students with behavioral problems who 
have not been diagnosed by a physician or other 
person certified by a State health board as hav-
ing a disability should be subject to the regular 
school disciplinary code. 
SEC. 205. PROCEDURAL SAFEGUARDS. 
(a) ESTABLISHMENT
OF
PROCEDURES.—Section 
615(a) of the Individuals with Disabilities Education Act 
(20 U.S.C. 1415(a)) is amended to read as follows:
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‘‘(a) ESTABLISHMENT OF PROCEDURES.—Any State 
educational agency, State agency, or local educational 
agency that receives assistance under this part shall estab-
lish and maintain procedures in accordance with this sec-
tion to ensure that children with disabilities and their par-
ents are guaranteed procedural safeguards with respect to 
the provision of free appropriate public education by such 
agencies.’’. 
(b) TYPES OF PROCEDURES.—Section 615(b) of the 
Individuals with Disabilities Education Act (20 U.S.C. 
1415(b)) is amended to read as follows: 
‘‘(b) TYPES OF PROCEDURES.—The procedures re-
quired by this section shall include—
‘‘(1) an opportunity for the parents of a child 
with a disability to examine all records relating to 
such child and to participate in meetings with re-
spect to the identification, evaluation, and edu-
cational placement of the child, and the provision of 
a free appropriate public education to such child, 
and to obtain as appropriate an independent edu-
cational evaluation of the child; 
‘‘(2) procedures to protect the rights of the 
child whenever the parents of the child are not 
known, the agency cannot, after reasonable efforts, 
locate the parents, or the child is a ward of the
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State, including the assignment of an individual 
(who shall not be an employee of the State edu-
cational agency, the local educational agency, or any 
other agency that is involved in the education or 
care of the child) to act as a surrogate for the par-
ents; 
‘‘(3) written prior notice to the parents of the 
child whenever such agency—
‘‘(A) proposes to initiate or change; or 
‘‘(B) refuses to initiate or change; 
the identification, evaluation, or educational place-
ment of the child, in accordance with subsection (c), 
or the provision of a free appropriate public edu-
cation to the child; 
‘‘(4) procedures designed to ensure 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 and vol-
untary binding arbitration, in accordance with sub-
section (e); 
‘‘(6) an opportunity to present complaints—
‘‘(A) with respect to any matter relating to 
the identification, evaluation, or educational
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placement of the child, or the provision of a free 
appropriate public education to such child; and 
‘‘(B) which set forth a violation that oc-
curred not more than one year before the com-
plaint is filed; 
‘‘(7)(A) 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)—
‘‘(i) to the local educational agency or 
State educational agency (if the State edu-
cational agency is the direct provider of services 
pursuant to section 613(g)), in the complaint 
filed under paragraph (6); and 
‘‘(ii) that shall include—
‘‘(I) the name of the child, the ad-
dress of the residence of the child (or, in 
the case of a homeless child or youth 
(within the meaning of section 725(2) of 
the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11434a(2)), available con-
tact information for the child), and the 
name of the school the child is attending; 
‘‘(II) a description of the specific 
issues regarding the nature of the problem
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of the child relating to such proposed initi-
ation or change, including facts relating to 
such problem; and 
‘‘(III) a proposed resolution of the 
problem to the extent known and available 
to the parents at the time; 
‘‘(B) a requirement that a parent of a child 
with a disability may not have a due process hearing 
until the parent, or the attorney representing the 
child, files a notice that meets the requirements of 
this paragraph; and 
‘‘(8) procedures that require the State edu-
cational agency to develop a model form to assist 
parents in filing a complaint in accordance with 
paragraph (7).’’. 
(c) CONTENT OF PRIOR WRITTEN NOTICE.—Section 
615(c) of the Individuals with Disabilities Education Act 
(20 U.S.C. 1415(c)) is amended to read as follows: 
‘‘(c) CONTENT OF PRIOR WRITTEN NOTICE.—The 
notice required by subsection (b)(3) shall include—
‘‘(1) a description of the action proposed or re-
fused by the agency; 
‘‘(2) an explanation of why the agency proposes 
or refuses to take the action and a description of 
each evaluation procedure, test, record, or report the
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agency used as a basis for the proposed or refused 
action; 
‘‘(3) a statement that the parents of a child 
with a disability have protection under the proce-
dural safeguards of this part and, if this notice is 
not an initial referral for evaluation, the means by 
which a copy of a description of the procedural safe-
guards can be obtained; and 
‘‘(4) sources for parents to contact to obtain as-
sistance in understanding the provisions of this 
part.’’. 
(d) PROCEDURAL SAFEGUARDS NOTICE.—Section 
615(d) of the Individuals with Disabilities Education Act 
(20 U.S.C. 1415(d)) is amended to read as follows: 
‘‘(d) PROCEDURAL SAFEGUARDS NOTICE.—
‘‘(1) IN GENERAL.—A copy of the procedural 
safeguards available to the parents of a child with 
a disability shall be given to the parents, at a min-
imum—
‘‘(A) upon initial referral or parental re-
quest for evaluation; 
‘‘(B) annually, at the beginning of the 
school year; and 
‘‘(C) upon written request by a parent.
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‘‘(2) CONTENTS.—The procedural safeguards 
notice shall include a description of the procedural 
safeguards, written in the native language of the 
parents, unless it clearly is not feasible to do so, and 
written in an easily understandable manner, avail-
able under this section and under regulations pro-
mulgated by the Secretary relating to—
‘‘(A) independent educational evaluation; 
‘‘(B) prior written notice; 
‘‘(C) parental consent; 
‘‘(D) access to educational records; 
‘‘(E) opportunity to present complaints; 
‘‘(F) the child’s placement during pend-
ency of due process proceedings; 
‘‘(G) procedures for students who are sub-
ject to placement in an interim alternative edu-
cational setting; 
‘‘(H) requirements for unilateral placement 
by parents of children in private schools at pub-
lic expense; 
‘‘(I) mediation, early dispute resolution, 
and voluntary binding arbitration; 
‘‘(J) due process hearings, including re-
quirements for disclosure of evaluation results 
and recommendations;
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‘‘(K) civil actions; and 
‘‘(L) attorneys’ fees.’’. 
(e) MEDIATION AND VOLUNTARY BINDING ARBITRA-
TION.—Section 615(e) of the Individuals with Disabilities 
Education Act (20 U.S.C. 1415(e)) is amended to read 
as follows: 
‘‘(e) MEDIATION AND VOLUNTARY BINDING ARBI-
TRATION.—
‘‘(1) MEDIATION.—
‘‘(A) IN GENERAL.—Any State educational 
agency or local educational agency that receives 
assistance under this part shall ensure that pro-
cedures are established and implemented to 
allow parties to disputes involving any matter, 
including matters arising prior to the filing of 
a complaint pursuant to subsection (b)(6), to 
resolve such disputes through a mediation proc-
ess. 
‘‘(B) REQUIREMENTS.—Such procedures 
shall meet the following requirements: 
‘‘(i) The procedures shall ensure that 
the mediation process—
‘‘(I) is voluntary on the part of 
the parties;
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‘‘(II) is not used to deny or delay 
a parent’s right to a due process hear-
ing under subsection (f), or to deny 
any other rights afforded under this 
part; and 
‘‘(III) is conducted by a qualified 
and impartial mediator who is trained 
in effective mediation techniques. 
‘‘(ii) A local educational agency or a 
State agency may establish procedures to 
offer to parents who choose not to use the 
mediation process, an opportunity to meet, 
at a time and location convenient to the 
parents, with a disinterested party who is 
under contract with—
‘‘(I) a parent training and infor-
mation center in the State established 
under section 672; or 
‘‘(II) an appropriate alternative 
dispute resolution entity; 
to encourage the use, and explain the bene-
fits, of the mediation process to the par-
ents. 
‘‘(iii) The State shall maintain a list 
of individuals who are qualified mediators
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shall ensure that procedures are established and 
implemented to allow parties to disputes involv-
ing any matter described in subsection (b)(6) to 
resolve such disputes through voluntary binding 
arbitration, which shall be available when a 
hearing is requested under subsection (f) or (j). 
‘‘(B) REQUIREMENTS.—Such procedures 
shall meet the following requirements: 
‘‘(i) The procedures shall ensure that 
the voluntary binding arbitration process—
‘‘(I) is voluntarily and knowingly 
agreed to in writing by the parties; 
and 
‘‘(II) is conducted by a qualified 
and impartial arbitrator. 
‘‘(ii) A local educational agency or a 
State agency shall ensure that parents who 
choose to use voluntary binding arbitration 
understand that the process is in lieu of a 
due process hearing under subsection (f) or 
(j) and that the decision made by the arbi-
trator is final, unless there is fraud by a 
party or the arbitrator or misconduct on 
the part of the arbitrator.
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‘‘(iii) The parties shall jointly agree to 
use an arbitrator from a list that the State 
shall maintain of individuals who are quali-
fied arbitrators and knowledgeable in laws 
and regulations relating to the provision of 
special education and related services. 
‘‘(iv) The arbitration shall be con-
ducted according to State law on arbitra-
tion or, if there is no such applicable State 
law, in a manner consistent with the Re-
vised Uniform Arbitration Act. 
‘‘(v) The voluntary binding arbitration 
shall be scheduled in a timely manner and 
shall be held in a location that is conven-
ient to the parties to the dispute.’’. 
(f) IMPARTIAL DUE PROCESS HEARING.—Section 
615(f) of the Individuals with Disabilities Education Act 
(20 U.S.C. 1415(f)) is amended to read as follows: 
‘‘(f) IMPARTIAL DUE PROCESS HEARING.—
‘‘(1) IN GENERAL.—
‘‘(A) ACCESS TO HEARING.—Whenever a 
complaint has been received under subsection 
(b)(6) or (j) of this section, the parents or the 
local educational agency involved in such com-
plaint shall have an opportunity for an impar-
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tial due process hearing, which shall be con-
ducted by the State educational agency. 
‘‘(B) RESOLUTION SESSION.—
‘‘(i) IN GENERAL.—Prior to the op-
portunity for an impartial due process 
hearing under subparagraph (A), the local 
educational agency shall convene a meeting 
with the parents—
‘‘(I) within 15 days of receiving 
notice of the parents’ complaint; and 
‘‘(II) where the parents of the 
child discuss their complaint, and the 
specific issues that form the basis of 
the complaint, and the local edu-
cational agency is provided the oppor-
tunity to resolve the complaint; 
unless the parents and the local edu-
cational agency agree in writing to waive 
such meeting. 
‘‘(ii) DUE PROCESS HEARING.—If the 
local educational agency has not resolved 
the complaint to the satisfaction of the 
parents within 30 days of the receipt of 
the complaint, the due process hearing
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shall occur in accordance with subpara-
graph (A). 
‘‘(iii) DEFINITION
OF
MEETING.—A 
meeting conducted pursuant to clause (i) 
shall not be considered—
‘‘(I) a meeting convened as a re-
sult of an administrative hearing or 
judicial action; or 
‘‘(II) an administrative hearing 
or judicial action for purposes of sub-
section (h)(3). 
‘‘(2) DISCLOSURE OF EVALUATIONS AND REC-
OMMENDATIONS.—
‘‘(A) IN
GENERAL.—At least 5 business 
days prior to a hearing conducted pursuant to 
paragraph (1), each party shall disclose to all 
other parties all evaluations completed by that 
date and recommendations based on the offer-
ing party’s evaluations that the party intends to 
use at the hearing. 
‘‘(B) FAILURE TO DISCLOSE.—A hearing 
officer may bar any party that fails to comply 
with subparagraph (A) from introducing the 
relevant evaluation or recommendation at the 
hearing without the consent of the other party.
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‘‘(3) LIMITATION ON HEARING.—
‘‘(A) HEARING OFFICER.—A hearing con-
ducted pursuant to paragraph (1)(A) may not 
be conducted by—
‘‘(i) an employee of the State edu-
cational agency or the local educational 
agency involved in the education or care of 
the child; or 
‘‘(ii) any person having a personal or 
professional interest that would conflict 
with his or her objectivity in the hearing. 
‘‘(B) SUBJECT MATTER OF HEARING.—No 
party shall be allowed to raise issues at the due 
process hearing that were not raised in the 
complaint, discussed during the meeting con-
ducted pursuant to paragraph (1)(B), or prop-
erly disclosed pursuant to paragraph (2), unless 
both parties agree otherwise.’’. 
(g) APPEAL.—Section 615 of the Individuals with 
Disabilities Education Act (20 U.S.C. 1415) is amended 
by striking subsection (g). 
(h) SAFEGUARDS.—Section 615 of the Individuals 
with Disabilities Education Act (20 U.S.C. 1415) is 
amended—
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(1) by redesignating subsection (h) as sub-
section (g); and 
(2) by amending subsection (g) (as redesig-
nated) to read as follows: 
‘‘(g) SAFEGUARDS.—Any party to a hearing con-
ducted pursuant to subsection (f) or (j) shall be ac-
corded—
‘‘(1) the right to be represented by counsel and 
by non-attorney advocates and to be accompanied 
and advised by individuals with special knowledge or 
training with respect to the problems of children 
with disabilities; 
‘‘(2) the right to present evidence and confront, 
cross-examine, and compel the attendance of wit-
nesses; 
‘‘(3) the right to a written, or, at the option of 
the parents, electronic verbatim record of such hear-
ing; and 
‘‘(4) the right to written, or, at the option of 
the parents, electronic findings of fact and decisions 
(which findings and decisions shall be made available 
to the public consistent with the requirements of sec-
tion 617(d)) (relating to the confidentiality of data, 
information, and records).’’.
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(i) ADMINISTRATIVE PROCEDURES.—Section 615 of 
the Individuals with Disabilities Education Act (20 U.S.C. 
1415) is amended—
(1) by redesignating subsection (i) as subsection 
(h); and 
(2) in subsection (h) (as redesignated)—
(A) in paragraph (1)—
(i) by striking ‘‘IN GENERAL.—’’ and 
all that follows through ‘‘A decision made 
in a hearing’’ and inserting ‘‘IN
GEN-
ERAL.—A decision made in a hearing’’; 
(ii) by striking ‘‘(k)’’ and inserting 
‘‘(j)’’; 
(iii) by striking ‘‘subsection (g) and’’; 
and 
(iv) by striking subparagraph (B); 
(B) in paragraph (2)(A), by striking ‘‘sub-
section (f) or (k) who does not have the right 
to an appeal under subsection (g)’’ and insert-
ing ‘‘subsection (f) or (j)’’; and 
(C) in paragraph (3), by amending sub-
paragraph (C) to read as follows: 
‘‘(C) DETERMINATION OF AMOUNT OF AT-
TORNEYS’ FEES.—
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‘‘(i) IN
GENERAL.—Fees awarded 
under this paragraph shall be based on 
rates determined by the Governor of the 
State (or other appropriate State official) 
in which the action or proceeding arose for 
the kind and quality of services furnished. 
No bonus or multiplier may be used in cal-
culating the fees awarded under this sub-
section. 
‘‘(ii) NOTICE.—The Governor of the 
State (or other appropriate State official) 
shall make available to the public on an 
annual basis the rates described in clause 
(i).’’. 
(j) MAINTENANCE
OF
CURRENT
EDUCATIONAL 
PLACEMENT.—Section 615 of the Individuals with Dis-
abilities Education Act (20 U.S.C. 1415) is amended—
(1) by redesignating subsection (j) as sub-
section (i); and 
(2) by amending subsection (i) (as redesig-
nated) to read as follows: 
‘‘(i) MAINTENANCE
OF
CURRENT
EDUCATIONAL 
PLACEMENT.—Except as provided in subsection (j)(4), 
during the pendency of any proceedings conducted pursu-
ant to this section, unless the State or local educational
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agency and the parents otherwise agree, the child shall 
remain in the then-current educational placement of such 
child, or, if applying for initial admission to a public 
school, shall, with the consent of the parents, be placed 
in the public school program until all such proceedings 
have been completed.’’.
(k) PLACEMENT
IN ALTERNATIVE EDUCATIONAL 
SETTING.—Section 615 of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1415) is amended—
(1) by redesignating subsection (k) as sub-
section (j); and 
(2) by amending subsection (j) (as redesig-
nated) to read as follows: 
‘‘(j) PLACEMENT
IN ALTERNATIVE EDUCATIONAL 
SETTING.—
‘‘(1) AUTHORITY OF SCHOOL PERSONNEL.—
‘‘(A) 
IN
GENERAL.—School 
personnel 
under this section may order a change in the 
placement of a child with a disability who vio-
lates a code of student conduct policy to an ap-
propriate interim alternative educational set-
ting, another setting, or suspension, for not 
more than 10 school days (to the extent such 
alternatives would be applied to children with-
out disabilities).
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‘‘(B) ADDITIONAL
AUTHORITY.—Subject 
to subparagraph (C), and notwithstanding any 
other provision of this Act, school personnel 
under this section may order a change in the 
placement of a child with a disability who vio-
lates a code of student conduct policy to an ap-
propriate interim alternative educational setting 
selected so as to enable the child to continue to 
participate in the general education curriculum, 
although in another setting, and to progress to-
ward meeting the goals set out in the child’s 
IEP, for not more than 45 school days (to the 
extent such alternative and such duration would 
be applied to children without disabilities, and 
which may include consideration of unique cir-
cumstances on a case-by-case basis), except that 
the change in placement may last beyond 45 
school days if required by State law or regula-
tion for the violation in question, to ensure the 
safety and appropriate educational atmosphere 
in the schools under the jurisdiction of the local 
educational agency. 
‘‘(C) SERVICES.—A child with a disability 
who is removed from the child’s current place-
ment under subparagraph (B) shall—
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‘‘(i) continue to receive educational 
services selected so as to enable the child 
to continue to participate in the general 
education curriculum, although in another 
setting, and to progress toward meeting 
the goals set out in the child’s IEP; and 
‘‘(ii) continue to receive behavioral 
intervention services designed to address 
the behavior violation so that it does not 
recur. 
‘‘(2) DETERMINATION OF SETTING.—The alter-
native educational setting described in paragraph 
(1)(B) shall be determined by the IEP Team. 
‘‘(3) PARENT APPEAL.—
‘‘(A) IN
GENERAL.—If the parent of a 
child with a disability disagrees with any deci-
sion regarding placement or punishment under 
this section, the parent may request a hearing. 
‘‘(B) AUTHORITY OF HEARING OFFICER.—
If a parent of a child with a disability disagrees 
with a decision regarding placement of the child 
or punishment of the child under this section, 
including duration of the punishment, the hear-
ing officer may determine whether the decision 
regarding such action was appropriate.
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‘‘(4) PLACEMENT DURING APPEALS.—When a 
parent requests a hearing regarding a disciplinary 
action described in paragraph (1)(B) to challenge 
the interim alternative educational setting or the vio-
lation of the code of student conduct policy, the child 
shall remain in the interim alternative educational 
setting pending the decision of the hearing officer or 
until the expiration of the time period provided for 
in paragraph (1)(B), whichever occurs first, unless 
the parent and the State or local educational agency 
agree otherwise. 
‘‘(5) PROTECTIONS
FOR
CHILDREN
NOT
YET 
ELIGIBLE FOR SPECIAL EDUCATION AND RELATED 
SERVICES.—
‘‘(A) IN GENERAL.—A child who has not 
been determined to be eligible for special edu-
cation and related services under this part and 
who has engaged in behavior that violates a 
code of student conduct policy, may assert any 
of the protections provided for in this part if 
the local educational agency had knowledge (as 
determined in accordance with this paragraph) 
that the child was a child with a disability be-
fore the behavior that precipitated the discipli-
nary action occurred.
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‘‘(B) BASIS OF KNOWLEDGE.—A local edu-
cational agency shall be deemed to have knowl-
edge that a child is a child with a disability if, 
before the behavior that precipitated the dis-
ciplinary action occurred—
‘‘(i) the parent of the child has ex-
pressed concern in writing (unless the par-
ent is illiterate or has a disability that pre-
vents compliance with the requirements 
contained in this clause) to personnel of 
the appropriate educational agency that 
the child is in need of special education 
and related services; 
‘‘(ii) the parent of the child has re-
quested an evaluation of the child pursuant 
to section 614; or 
‘‘(iii) the teacher of the child, or other 
personnel of the local educational agency, 
has expressed concern in writing about the 
behavior or performance of the child to the 
director of special education of such agen-
cy or to other personnel of the agency. 
‘‘(C) CONDITIONS
THAT
APPLY
IF
NO 
BASIS OF KNOWLEDGE.—
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‘‘(i) IN
GENERAL.—If a local edu-
cational agency does not have knowledge 
that a child is a child with a disability (in 
accordance with subparagraph (B)) prior 
to taking disciplinary measures against the 
child, the child may be subjected to dis-
ciplinary measures applied to children 
without disabilities who engaged in com-
parable behaviors consistent with clause 
(ii). 
‘‘(ii) LIMITATIONS.—If a request is 
made for an evaluation of a child during 
the time period in which the child is sub-
jected to disciplinary measures under para-
graph (1) or (2), the evaluation shall be 
conducted in an expedited manner. If the 
child is determined to be a child with a dis-
ability, taking into consideration informa-
tion from the evaluation conducted by the 
agency and information provided by the 
parents, the agency shall provide special 
education and related services in accord-
ance with this part, except that, pending 
the results of the evaluation, the child shall
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remain in the educational placement deter-
mined by school authorities. 
‘‘(6) REFERRAL TO AND ACTION BY LAW EN-
FORCEMENT AND JUDICIAL AUTHORITIES.—
‘‘(A) IN GENERAL.—Nothing in this part 
shall be construed to prohibit an agency from 
reporting a crime committed by a child with a 
disability to appropriate authorities or to pre-
vent State law enforcement and judicial au-
thorities from exercising their responsibilities 
with regard to the application of Federal and 
State law to crimes committed by a child with 
a disability. 
‘‘(B) TRANSMISSION
OF
RECORDS.—An 
agency reporting a crime committed by a child 
with a disability shall ensure that copies of the 
special education and disciplinary records of the 
child are transmitted for consideration by the 
appropriate authorities to whom it reports the 
crime.’’. 
(l) RULE OF CONSTRUCTION.—Section 615 of the In-
dividuals with Disabilities Education Act (20 U.S.C. 
1415) is amended by redesignating subsection (l) as sub-
section (k).
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(m) TRANSFER OF PARENTAL RIGHTS AT AGE OF 
MAJORITY.—Section 615 of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1415) is amended—
(1) by redesignating subsection (m) as sub-
section (l); and 
(2) by amending subsection (l) (as redesig-
nated) to read as follows: 
‘‘(l) TRANSFER OF PARENTAL RIGHTS AT AGE OF 
MAJORITY.—
‘‘(1) IN
GENERAL.—A State that receives 
amounts from a grant under this part may provide 
that, when a child with a disability reaches the age 
of majority under State law (except for a child with 
a disability who has been determined to be incom-
petent under State law)—
‘‘(A) the public agency shall provide any 
notice required by this section to both the indi-
vidual and the parents; 
‘‘(B) all other rights accorded to parents 
under this part transfer to the child; 
‘‘(C) the agency shall notify the individual 
and the parents of the transfer of rights; and 
‘‘(D) all rights accorded to parents under 
this part transfer to children who are incarcer-
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ated in an adult or juvenile Federal, State, or 
local correctional institution. 
‘‘(2) SPECIAL RULE.—If, under State law, a 
child with a disability who has reached the age of 
majority under State law, who has not been deter-
mined to be incompetent, but who is determined not 
to have the ability to provide informed consent with 
respect to the educational program of the child, the 
State shall establish procedures for appointing the 
parent of the child, or if the parent is not available, 
another appropriate individual, to represent the edu-
cational interests of the child throughout the period 
of eligibility of the child under this part.’’. 
SEC. 206. MONITORING, ENFORCEMENT, WITHHOLDING, 
AND JUDICIAL REVIEW. 
Section 616 of the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1416) is amended—
(1) by amending the heading to read as follows: 
‘‘SEC. 616. MONITORING, ENFORCEMENT, WITHHOLDING, 
AND JUDICIAL REVIEW.’’; 
(2) by redesignating subsections (a) through (c) 
as subsections (e) through (g), respectively; and 
(3) by inserting before subsection (e) (as redes-
ignated) the following: 
‘‘(a) FEDERAL MONITORING.—
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‘‘(1) IN GENERAL.—The Secretary shall mon-
itor implementation of this Act. 
‘‘(2) FOCUSED
MONITORING.—The primary 
focus of Federal monitoring activities shall be to im-
prove educational results for all children with dis-
abilities, while ensuring compliance with program re-
quirements, with a particular emphasis on those re-
quirements that are most closely related to improv-
ing educational results for children with disabilities. 
‘‘(b) INDICATORS.—
‘‘(1) REQUIRED
INDICATORS.—The Secretary 
shall examine relevant information and data related 
to States’ progress on improving educational results 
for children with disabilities by reviewing—
‘‘(A) achievement results of children with 
disabilities on State or district assessments, in-
cluding children with disabilities taking State or 
district assessments with appropriate accom-
modations; 
‘‘(B) achievement results of children with 
disabilities on State or district alternate assess-
ments; 
‘‘(C) graduation rates of children with dis-
abilities and graduation rates of children with
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disabilities as compared to graduation rates of 
nondisabled children; and 
‘‘(D) dropout rates for children with dis-
abilities and dropout rates of children with dis-
abilities as compared to dropout rates of non-
disabled children. 
‘‘(2) PERMISSIVE INDICATORS.—The Secretary 
also may establish other priorities for review of rel-
evant information and data, including data provided 
by States under section 618, and also including the 
following: 
‘‘(A) PRIORITIES
FOR
THIS
PART.—The 
Secretary may give priority to monitoring on 
the following areas under this part: 
‘‘(i) Provision of educational services 
in the least restrictive environment, includ-
ing—
‘‘(I) education of children with 
disabilities with nondisabled peers to 
the maximum extent appropriate; 
‘‘(II) provision of appropriate 
special education and related services; 
‘‘(III) access to the general cur-
riculum with appropriate accommoda-
tions;
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‘‘(IV) provision of appropriate 
services to students whose behavior 
impedes learning; and 
‘‘(V) participation and perform-
ance of children with disabilities on 
State and local assessments, including 
alternate assessments. 
‘‘(ii) Secondary transition, including 
the extent to which youth exiting special 
education are prepared for post-secondary 
education, employment, and adult life, and 
are participants in appropriate transition 
planning while in school. 
‘‘(iii) State exercise of general super-
visory authority, including effective moni-
toring and use of complaint resolution, me-
diation, and voluntary binding arbitration. 
‘‘(B) PRIORITIES FOR PART C.—The Sec-
retary may give priority to monitoring on the 
following areas under part C: 
‘‘(i) Child find and public awareness 
to support the identification, evaluation 
and assessment of all eligible infants and 
toddlers, including the provision of cul-
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turally relevant materials to inform and 
promote referral. 
‘‘(ii) Provision of early intervention 
services in natural environments, evalua-
tion and assessment to identify child needs 
and family needs related to enhancing the 
development of the child, and provision of 
appropriate early intervention services in 
natural environments to meet the needs of 
individual children. 
‘‘(iii) Effective early childhood transi-
tion to services under this part. 
‘‘(iv) State exercise of general super-
visory authority, including—
‘‘(I) effective monitoring and use 
of other mechanisms such as com-
plaint resolution; 
‘‘(II) implementation of medi-
ation and voluntary binding arbitra-
tion; and 
‘‘(III) coordination of parent and 
child protections. 
‘‘(3) DATA COLLECTION AND ANALYSIS.—The 
Secretary shall review the data collection and anal-
ysis capacity of States to ensure that data and infor-
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mation is collected, analyzed, and accurately re-
ported to the Secretary. The Secretary may provide 
technical assistance to improve the capacity of 
States to meet data requirements. 
‘‘(c) ADDITIONAL PRIORITIES.—
‘‘(1) IN GENERAL.—The Secretary may develop 
additional priorities for monitoring the effective im-
plementation of this Act. 
‘‘(2) PUBLIC COMMENT.—The Secretary shall 
provide a public comment period of at least 30 days 
on any additional priority proposed under this part 
or part C. 
‘‘(3) DATE OF ENFORCEMENT.—The Secretary 
may not begin to enforce a new priority until one 
year from the date of publication of the priority in 
the Federal Register as a final rule. 
‘‘(d) COMPLIANCE.—
‘‘(1) IN GENERAL.—The Secretary shall review 
State data to determine whether the State is in com-
pliance with the provisions of this Act. 
‘‘(2) LACK OF PROGRESS.—If after examining 
data, as provided in section (b) or (c), the Secretary 
determines that a State is not making satisfactory 
progress in improving educational results for chil-
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dren with disabilities, the Secretary shall take one or 
more of the following actions: 
‘‘(A) Advise the State of available sources 
of technical assistance that may help the State 
address the lack of progress, which may include 
assistance from the Office of Special Education 
Programs, other offices of the Department of 
Education, other Federal agencies, technical as-
sistance providers approved by the Secretary, 
and other federally funded nonprofit agencies. 
Such technical assistance may include—
‘‘(i) the provision of advice by experts 
to address the areas of noncompliance, in-
cluding explicit plans for ensuring compli-
ance within a specified period of time; 
‘‘(ii) assistance in identifying and im-
plementing professional development, in-
structional strategies, and methods of in-
struction that are based on scientifically 
based research; 
‘‘(iii) designating and using distin-
guished superintendents, principals, special 
education administrators, regular edu-
cation teachers, and special education
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teachers to provide advice, technical assist-
ance, and support; and 
‘‘(iv) devising additional approaches to 
providing technical assistance, such as col-
laborating with institutions of higher edu-
cation, educational service agencies, na-
tional centers of technical assistance sup-
ported under part D, and private providers 
of scientifically based technical assistance. 
‘‘(B) Direct the use of State level funds for 
technical assistance on the area or areas of un-
satisfactory performance. 
‘‘(C) Each year withhold at least 20 but no 
more than 50 percent of the State’s funds 
under section 611(e), after providing the State 
the opportunity to show cause why the with-
holding should not occur, until the Secretary 
determines that sufficient progress has been 
made in improving educational results for chil-
dren with disabilities. 
‘‘(3) SUBSTANTIAL NON-COMPLIANCE.—
‘‘(A) INITIAL DETERMINATION.—When the 
Secretary determines that a State is not in sub-
stantial compliance with any provision of this
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part, the Secretary shall take one or more of 
the following actions: 
‘‘(i) Request that the State prepare a 
corrective action plan or improvement plan 
if the Secretary determines that the State 
should be able to correct the problem with-
in one year. 
‘‘(ii) Identify the State as a high-risk 
grantee and impose special conditions on 
the State’s grant. 
‘‘(iii) Require the State to enter into 
a compliance agreement under section 457 
of the General Education Provisions Act, if 
the Secretary has reason to believe that 
the State cannot correct the problem with-
in one year. 
‘‘(iv) Recovery of funds under section 
452 of the General Education Provisions 
Act. 
‘‘(v)(I) 
Withholding 
of 
payments 
under subsection (e). 
‘‘(II) Pending the outcome of any 
hearing to withhold payments under sub-
section (e), the Secretary may suspend 
payments to a recipient, suspend the au-
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thority of the recipient to obligate Federal 
funds, or both, after such recipient has 
been given reasonable notice and an oppor-
tunity to show cause why future payments 
or authority to obligate Federal funds 
should not be suspended. 
‘‘(B) CONTINUED NON-COMPLIANCE.—
‘‘(i) SECRETARIAL
ACTION.—If the 
Secretary has imposed special conditions 
on a grant under subparagraph (A)(ii) for 
substantially the same compliance prob-
lems for three consecutive years, and at 
the end of the third year the State has not 
demonstrated that the violation has been 
corrected to the satisfaction of the Sec-
retary, the Secretary shall take such addi-
tional enforcement actions as the Secretary 
determines to be appropriate from among 
those actions specified in clauses (iii) 
through (v) of subparagraph (A). 
‘‘(ii) REPORT
TO
CONGRESS.—The 
Secretary shall report to Congress within 
30 days of taking enforcement action pur-
suant to this paragraph on the specific ac-
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tion taken and the reasons why enforce-
ment action was taken.’’. 
SEC. 207. ADMINISTRATION. 
Section 617 of the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1417) is amended to read as follows: 
‘‘SEC. 617. ADMINISTRATION. 
‘‘(a) RESPONSIBILITIES
OF SECRETARY.—In car-
rying out this part, the Secretary shall—
‘‘(1) cooperate with, and (directly or by grant 
or contract) furnish technical assistance necessary 
to, the State in matters relating to—
‘‘(A) the education of children with disabil-
ities; and 
‘‘(B) carrying out this part; and 
‘‘(2) provide short-term training programs and 
institutes.
‘‘(b) PROHIBITION AGAINST FEDERAL MANDATES, 
DIRECTION, OR CONTROL.—Nothing in this Act may be 
construed to authorize an officer or employee of the Fed-
eral Government to mandate, direct, or control a State, 
local educational agency, or school’s specific instructional 
content, academic achievement standards and assess-
ments, curriculum, or program of instruction. 
‘‘(c) CONFIDENTIALITY.—The Secretary shall take 
appropriate action, in accordance with section 444 of the
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General Education Provisions Act (20 U.S.C. 1232g), to 
ensure the protection of the confidentiality of any person-
ally identifiable data, information, and records collected 
or maintained by the Secretary and by State and local 
educational agencies pursuant to this part. 
‘‘(d) PERSONNEL.—The Secretary is authorized to 
hire qualified personnel necessary to carry out the Sec-
retary’s duties under subsection (a) and under sections 
618 and 661 without regard to the provisions of title 5, 
United States Code, relating to appointments in the com-
petitive service and without regard to chapter 51 and sub-
chapter III of chapter 53 of such title relating to classi-
fication and general schedule pay rates, except that no 
more than twenty such personnel shall be employed at any 
time. 
‘‘(e) PILOT PROGRAM.—The Secretary is authorized 
to grant waivers of paperwork requirements under this 
part for a period of time not to exceed 4 years with respect 
to not more than 10 States based on proposals submitted 
by States for addressing reduction of paperwork and non-
instructional time spent fulfilling statutory and regulatory 
requirements. 
‘‘(f) REPORT.—The Secretary shall include in the an-
nual report to Congress under section 426 of the Depart-
ment of Education Organization Act information related
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to the effectiveness of waivers granted under subsection 
(e)—
‘‘(1) in reducing the paperwork burden on 
teachers, administrators, and related services pro-
viders and non-instructional time spent by teachers 
in complying with this part, including any specific 
recommendations for broader implementation; and 
‘‘(2) in enhancing longer-term educational plan-
ning, improving positive outcomes for children with 
disabilities, promoting collaboration between IEP 
Team members, and ensuring satisfaction of family 
members, including any specific recommendations 
for broader implementation. 
‘‘(g) MODEL FORMS.—Not later than the date on 
which the Secretary publishes final regulations to imple-
ment this part (as amended by the Improving Education 
Results for Children With Disabilities Act of 2003), the 
Secretary shall publish and disseminate widely to States, 
local educational agencies, and parent training and infor-
mation centers—
‘‘(1) a model individualized education program 
form; 
‘‘(2) a model form for the procedural safe-
guards notice described in section 615(d); and
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‘‘(3) a model form for the prior written notice 
described in section 615(b)(3); 
that would be consistent with the requirements of this part 
and be deemed to be sufficient to meet such require-
ments.’’. 
SEC. 208. PROGRAM INFORMATION. 
Section 618 of the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1418) is amended to read as follows: 
‘‘SEC. 618. PROGRAM INFORMATION. 
‘‘(a) IN GENERAL.—Each State and local educational 
agency that receives assistance under this part, and the 
Secretary of the Interior, shall provide data each year to 
the Secretary—
‘‘(1)(A) on—
‘‘(i) the number and percentage of children 
with disabilities, by race, ethnicity, and dis-
ability category, who are receiving a free appro-
priate public education; 
‘‘(ii) the number and percentage of chil-
dren with disabilities, by race and ethnicity, 
who are receiving early intervention services; 
‘‘(iii) the number and percentage of chil-
dren with disabilities, by race, ethnicity, and 
disability category, who are participating in reg-
ular education;
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‘‘(iv) the number and percentage of chil-
dren with disabilities, by race, ethnicity, and 
disability category, who are in separate classes, 
separate schools or facilities, or public or pri-
vate residential facilities; 
‘‘(v) the number and percentage of chil-
dren with disabilities, by race and ethnicity, and 
disability category who begin secondary school 
and graduate with a regular high school di-
ploma, through the age of 21; 
‘‘(vi) the number and percentage of chil-
dren with disabilities, by race, ethnicity, and 
disability category, who, for each year of age 
from age 14 to 21, stopped receiving special 
education and related services because of pro-
gram completion or other reasons and the rea-
sons why those children stopped receiving spe-
cial education and related services; 
‘‘(vii) the number and percentage of chil-
dren with disabilities, by race and ethnicity, 
who, from birth through age 2, stopped receiv-
ing early intervention services because of pro-
gram completion or for other reasons; 
‘‘(viii)(I) the number and percentage of 
children with disabilities, by race, ethnicity, and
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disability category, who under subparagraph 
(A) or (B) of section 615(j)(1), are removed to 
an interim alternative educational setting; 
‘‘(II) the acts or items precipitating those 
removals; 
‘‘(III) the number of children with disabil-
ities, by race, ethnicity, and disability category, 
who are subject to long-term suspensions or ex-
pulsions; and 
‘‘(IV) the incidence, duration, and type of 
disciplinary actions, by race and ethnicity, in-
cluding suspension and expulsions; 
‘‘(ix) the number of complaints resolved 
through voluntary binding arbitration; and 
‘‘(x) the number of mediations held and 
the number of settlement agreements reached 
through mediation; 
‘‘(B) on the number and percentage of infants 
and toddlers, by race and ethnicity, who are at risk 
of having substantial developmental delays (as de-
fined in section 632), and who are receiving early 
intervention services under part C; and 
‘‘(C) on the number of children served with 
funds under section 613(f); and
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‘‘(2) on any other information that may be re-
quired by the Secretary. 
‘‘(b) SAMPLING.—The Secretary may permit States 
and the Secretary of the Interior to obtain the data de-
scribed in subsection (a) through sampling. 
‘‘(c) DISPROPORTIONALITY.—
‘‘(1) IN GENERAL.—Each State that receives 
assistance under this part, and the Secretary of the 
Interior, shall provide for the collection and exam-
ination 
of 
data 
to 
determine 
if 
significant 
disproportionality based on race and ethnicity is oc-
curring in the State and the local educational agen-
cies of the State with respect to—
‘‘(A) the identification of children as chil-
dren with disabilities, including the identifica-
tion of children as children with disabilities in 
accordance with a particular impairment de-
scribed in section 602(3); 
‘‘(B) the placement in particular edu-
cational settings of such children; and 
‘‘(C) the incidence, duration, and type of 
disciplinary actions, including suspensions and 
expulsions. 
‘‘(2) REVIEW
AND
REVISION
OF
POLICIES, 
PRACTICES, AND PROCEDURES.—In the case of a de-
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termination of significant disproportionality with re-
spect to the identification of children as children 
with disabilities, or the placement in particular edu-
cational settings of such children, in accordance with 
paragraph (1), the State or the Secretary of the In-
terior, as the case may be—
‘‘(A) shall provide for the review and, if 
appropriate, revision of the policies, procedures, 
and practices used in such identification or 
placement to ensure that such policies, proce-
dures, and practices comply with the require-
ments of this Act; 
‘‘(B) shall require any local educational 
agency identified under paragraph (1) to re-
serve the maximum amount of funds under sec-
tion 613(f) to provide comprehensive coordi-
nated prereferral support services to serve chil-
dren in the local educational agency, particu-
larly children in those groups that were signifi-
cantly overidentified under paragraph (1); and 
‘‘(C) shall require the local educational 
agency to publicly report on the revision of poli-
cies, practices, and procedures described under 
subparagraph (A).’’.
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SEC. 209. PRESCHOOL GRANTS. 
Section 619 of the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1419) is amended to read as follows: 
‘‘SEC. 619. PRESCHOOL GRANTS. 
‘‘(a) IN GENERAL.—The Secretary shall provide 
grants under this section to assist States to provide special 
education and related services, in accordance with this 
part—
‘‘(1) to children with disabilities aged 3 through 
5, inclusive; and 
‘‘(2) at the State’s discretion, to 2-year-old chil-
dren with disabilities who will turn 3 during the 
school year. 
‘‘(b) ELIGIBILITY.—A State shall be eligible for a 
grant under this section if such State—
‘‘(1) is eligible under section 612 to receive a 
grant under this part; and 
‘‘(2) makes a free appropriate public education 
available to all children with disabilities, aged 3 
through 5, residing in the State. 
‘‘(c) ALLOCATIONS TO STATES.—
‘‘(1) IN GENERAL.—The Secretary shall allo-
cate funds among the States in accordance with 
paragraph (2) or (3), as appropriate. 
‘‘(2) INCREASE
IN
FUNDS.—If the amount 
available for allocations to States under paragraph
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(1) is equal to or greater than the amount allocated 
to the States under this section for the preceding 
fiscal year, those allocations shall be calculated as 
follows: 
‘‘(A)(i) Except as provided in subpara-
graph (B), the Secretary shall—
‘‘(I) allocate to each State the amount 
it received for fiscal year 1997; 
‘‘(II) allocate 85 percent of any re-
maining funds to States on the basis of 
their relative populations of children aged 
3 through 5; and 
‘‘(III) allocate 15 percent of those re-
maining funds to States on the basis of 
their relative populations of all children 
aged 3 through 5 who are living in poverty. 
‘‘(ii) For the purpose of making grants 
under this paragraph, the Secretary shall use 
the most recent population data, including data 
on children living in poverty, that are available 
and satisfactory to the Secretary. 
‘‘(B) Notwithstanding subparagraph (A), 
allocations under this paragraph shall be sub-
ject to the following:
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‘‘(i) No State’s allocation shall be less 
than its allocation for the preceding fiscal 
year. 
‘‘(ii) No State’s allocation shall be less 
than the greatest of—
‘‘(I) the sum of—
‘‘(aa) the amount it received 
for fiscal year 1997; and 
‘‘(bb) one third of one per-
cent of the amount by which the 
amount appropriated under sub-
section (j) exceeds the amount 
appropriated under this section 
for fiscal year 1997; 
‘‘(II) the sum of—
‘‘(aa) the amount it received 
for the preceding fiscal year; and 
‘‘(bb) that amount multi-
plied by the percentage by which 
the increase in the funds appro-
priated from the preceding fiscal 
year exceeds 1.5 percent; or 
‘‘(III) the sum of—
‘‘(aa) the amount it received 
for the preceding fiscal year; and
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‘‘(bb) that amount multi-
plied by 90 percent of the per-
centage increase in the amount 
appropriated from the preceding 
fiscal year. 
‘‘(iii) Notwithstanding clause (ii), no 
State’s allocation under this paragraph 
shall exceed the sum of—
‘‘(I) the amount it received for 
the preceding fiscal year; and 
‘‘(II) that amount multiplied by 
the sum of 1.5 percent and the per-
centage increase in the amount appro-
priated. 
‘‘(C) If the amount available for allocations 
under this paragraph is insufficient to pay 
those allocations in full, those allocations shall 
be ratably reduced, subject to subparagraph 
(B)(i). 
‘‘(3) DECREASE
IN
FUNDS.—If the amount 
available for allocations to States under paragraph 
(1) is less than the amount allocated to the States 
under this section for the preceding fiscal year, those 
allocations shall be calculated as follows:
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‘‘(A) If the amount available for allocations 
is greater than the amount allocated to the 
States for fiscal year 1997, each State shall be 
allocated the sum of—
‘‘(i) the amount it received for fiscal 
year 1997; and 
‘‘(ii) an amount that bears the same 
relation to any remaining funds as the in-
crease the State received for the preceding 
fiscal year over fiscal year 1997 bears to 
the total of all such increases for all 
States. 
‘‘(B) If the amount available for alloca-
tions is equal to or less than the amount allo-
cated to the States for fiscal year 1997, each 
State shall be allocated the amount it received 
for that year, ratably reduced, if necessary. 
‘‘(d) RESERVATION FOR STATE ACTIVITIES.—
‘‘(1) IN GENERAL.—Each State may retain not 
more than the amount described in paragraph (2) 
for administration and other State-level activities in 
accordance with subsections (e) and (f). 
‘‘(2) AMOUNT
DESCRIBED.—For each fiscal 
year, the Secretary shall determine and report to the 
State educational agency an amount that is 25 per-
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cent of the amount the State received under this sec-
tion for fiscal year 1997, cumulatively adjusted by 
the Secretary for each succeeding fiscal year by the 
lesser of—
‘‘(A) the percentage increase, if any, from 
the preceding fiscal year in the State’s alloca-
tion under this section; or 
‘‘(B) 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 Depart-
ment of Labor. 
‘‘(e) STATE ADMINISTRATION.—
‘‘(1) IN GENERAL.—For the purpose of admin-
istering this section (including the coordination of 
activities under this part with, and providing tech-
nical assistance to, other programs that provide 
services to children with disabilities) a State may 
use not more than 20 percent of the maximum 
amount it may retain under subsection (d) for any 
fiscal year. 
‘‘(2) ADMINISTRATION OF PART C.—Funds de-
scribed in paragraph (1) may also be used for the 
administration of part C of this Act, if the State
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educational agency is the lead agency for the State 
under that part. 
‘‘(f) OTHER STATE-LEVEL ACTIVITIES.—Each State 
shall use any funds it retains under subsection (d) and 
does not use for administration under subsection (e)—
‘‘(1) for support services (including establishing 
and implementing the mediation and voluntary bind-
ing arbitration process required by section 615(e)), 
which may benefit children with disabilities younger 
than 3 or older than 5 as long as those services also 
benefit children with disabilities aged 3 through 5; 
‘‘(2) for direct services for children eligible for 
services under this section; 
‘‘(3) for activities at the State and local levels 
to meet the performance goals established by the 
State under section 612(a)(16) and to support im-
plementation of the State plan under subpart 1 of 
part D if the State receives funds under that sub-
part; or 
‘‘(4) to supplement other funds used to develop 
and implement a Statewide coordinated services sys-
tem designed to improve results for children and 
families, including children with disabilities and their 
families, but not to exceed one percent of the
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amount received by the State under this section for 
a fiscal year. 
‘‘(g) SUBGRANTS TO LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) SUBGRANTS REQUIRED.—Each State that 
receives a grant under this section for any fiscal 
year shall distribute all of the grant funds that it 
does not reserve under subsection (d) to local edu-
cational agencies in the State that have established 
their eligibility under section 613, 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 1997 if the 
State had distributed 75 percent of its grant for 
that year under section 619(c)(3), as then in ef-
fect. 
‘‘(B) 
ALLOCATION
OF
REMAINING 
FUNDS.—After making allocations under sub-
paragraph (A), the State shall—
‘‘(i) allocate 85 percent of any re-
maining funds to those agencies on the 
basis of the relative numbers of children 
enrolled in public and private elementary
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and secondary schools within the agency’s 
jurisdiction; and 
‘‘(ii) allocate 15 percent of those re-
maining funds to those agencies in accord-
ance with their relative numbers of chil-
dren living in poverty, as determined by 
the State educational agency. 
‘‘(2) REALLOCATION
OF
FUNDS.—If a State 
educational agency determines that a local edu-
cational agency is adequately providing a free appro-
priate public education to all children with disabil-
ities aged 3 through 5 residing in the area served by 
that agency with State and local funds, the State 
educational agency may reallocate any portion of the 
funds under this section that are not needed by that 
local agency to provide a free appropriate public 
education to other local educational agencies in the 
State that are not adequately providing special edu-
cation and related services to all children with dis-
abilities aged 3 through 5 residing in the areas they 
serve. 
‘‘(h) PART C INAPPLICABLE.—Part C of this Act 
does not apply to any child with a disability receiving a 
free appropriate public education, in accordance with this 
part, with funds received under this section.
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‘‘(i) DEFINITION.—For the purpose of this section, 
the term ‘State’ means each of the 50 States, the District 
of Columbia, and the Commonwealth of Puerto Rico. 
‘‘(j) AUTHORIZATION OF APPROPRIATIONS.—For the 
purpose of carrying out this section, there are authorized 
to be appropriated to the Secretary $500,000,000 for fis-
cal year 2004 and such sums as may be necessary for each 
subsequent fiscal year.’’. 
TITLE III—INFANTS AND 
TODDLERS WITH DISABILITIES 
SEC. 301. SECTIONS 631 THROUGH 638 OF THE INDIVIDUALS 
WITH DISABILITIES EDUCATION ACT. 
Sections 631 through 638 of the Individuals with 
Disabilities Education Act (20 U.S.C. 1431–1438) are 
amended to read as follows: 
‘‘SEC. 631. FINDINGS AND POLICY. 
‘‘(a) FINDINGS.—The Congress finds that there is an 
urgent and substantial need—
‘‘(1) to enhance the development of infants and 
toddlers with disabilities and to minimize their po-
tential for developmental delay; 
‘‘(2) to reduce the educational costs to our soci-
ety, including our Nation’s schools, by minimizing 
the need for special education and related services
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after infants and toddlers with disabilities reach 
school age; 
‘‘(3) to minimize the likelihood of institutional-
ization of individuals with disabilities and maximize 
the potential for their independently living in society; 
‘‘(4) to enhance the capacity of families to meet 
the special needs of their infants and toddlers with 
disabilities; and 
‘‘(5) to enhance the capacity of State and local 
agencies and service providers to identify, evaluate, 
and meet the needs of historically underrepresented 
populations, particularly minority, low-income, inner-
city, and rural populations. 
‘‘(b) POLICY.—It is the policy of the United States 
to provide financial assistance to States—
‘‘(1) to develop and implement a statewide, 
comprehensive, coordinated, multidisciplinary, inter-
agency system that provides early intervention serv-
ices for infants and toddlers with disabilities and 
their families; 
‘‘(2) to facilitate the coordination of payment 
for early intervention services from Federal, State, 
local, and private sources (including public and pri-
vate insurance coverage);
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‘‘(3) to enhance their capacity to provide qual-
ity early intervention services and expand and im-
prove existing early intervention services being pro-
vided to infants and toddlers with disabilities and 
their families; and 
‘‘(4) to encourage States to expand opportuni-
ties for children under 3 years of age who would be 
at risk of having substantial developmental delay if 
they did not receive early intervention services. 
‘‘SEC. 632. DEFINITIONS. 
‘‘As used in this part: 
‘‘(1) AT-RISK INFANT OR TODDLER.—The term 
‘at-risk infant or toddler’ means an individual under 
3 years of age who would be at risk of experiencing 
a substantial developmental delay if early interven-
tion services were not provided to the individual. 
‘‘(2) COUNCIL.—The term ‘council’ means a 
State interagency coordinating council established 
under section 641. 
‘‘(3) DEVELOPMENTAL DELAY.—The term ‘de-
velopmental delay’, when used with respect to an in-
dividual residing in a State, has the meaning given 
such term by the State under section 635(a)(1).
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‘‘(4) EARLY
INTERVENTION
SERVICES.—The 
term ‘early intervention services’ means develop-
mental services that—
‘‘(A) are provided under public supervision; 
‘‘(B) are provided at no cost except where 
Federal or State law provides for a system of 
payments by families, including a schedule of 
sliding fees; 
‘‘(C) are designed to address family-identi-
fied priorities and concerns that are determined 
by individualized family service plan team to re-
late to enhancing the child’s development in any 
one or more of the following areas—
‘‘(i) physical development; 
‘‘(ii) cognitive development; 
‘‘(iii) communication development; 
‘‘(iv) social or emotional development; 
or 
‘‘(v) adaptive development; 
‘‘(D) meet the standards of the State in 
which they are provided, including the require-
ments of this part; 
‘‘(E) include—
‘‘(i) family training, family therapy, 
counseling, and home visits;
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‘‘(ii) special instruction; 
‘‘(iii) speech-language pathology and 
audiology services; 
‘‘(iv) occupational therapy; 
‘‘(v) physical therapy; 
‘‘(vi) psychological services; 
‘‘(vii) service coordination services; 
‘‘(viii) medical services only for diag-
nostic or evaluation purposes; 
‘‘(ix) early identification, screening, 
and assessment services; 
‘‘(x) health services necessary to en-
able the infant or toddler to benefit from 
the other early intervention services; 
‘‘(xi) social work services; 
‘‘(xii) vision services; 
‘‘(xiii) assistive technology devices and 
assistive technology services; and 
‘‘(xiv) transportation and related costs 
that are necessary to enable an infant or 
toddler and the infant’s or toddler ’s family 
to receive another service described in this 
paragraph; 
‘‘(F) are provided by qualified personnel, 
including—
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‘‘(i) special educators; 
‘‘(ii) speech-language pathologists and 
audiologists; 
‘‘(iii) occupational therapists; 
‘‘(iv) physical therapists; 
‘‘(v) psychologists; 
‘‘(vi) social workers; 
‘‘(vii) nurses; 
‘‘(viii) registered dietitians; 
‘‘(ix) family therapists; 
‘‘(x) vision specialists, including oph-
thalmologists and optometrists; 
‘‘(xi) orientation and mobility special-
ists; and 
‘‘(xii) pediatricians and other physi-
cians; 
‘‘(G) to the maximum extent appropriate, 
are provided in natural environments, including 
the home, and community settings in which 
children without disabilities participate; and 
‘‘(H) are provided in conformity with an 
individualized family service plan adopted in ac-
cordance with section 636.
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‘‘(5) INFANT
OR
TODDLER
WITH
A
DIS-
ABILITY.—The term ‘infant or toddler with a dis-
ability ’—
‘‘(A) means an individual under 3 years of 
age who needs early intervention services be-
cause the individual—
‘‘(i) is experiencing developmental 
delays, as measured by appropriate diag-
nostic instruments and procedures in one 
or more of the areas of cognitive develop-
ment, physical development, communica-
tion development, social or emotional devel-
opment, and adaptive development; or 
‘‘(ii) has a diagnosed physical or men-
tal condition which has a high probability 
of resulting in developmental delay; 
‘‘(B) may also include, at a State’s discre-
tion, at-risk infants and toddlers; and
‘‘(C) may also include, at a State’s discre-
tion, a child aged 3 through 5, who previously 
received services under this part and who is eli-
gible for services under section 619, if—
‘‘(i) services provided to this age 
group under this part include an edu-
cational component that promotes school
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readiness and incorporates scientifically 
based pre-literacy, language, and numeracy 
skills; and 
‘‘(ii) parents are provided a written 
notification of their rights and responsibil-
ities in determining whether their child will 
continue to receive services under this part 
or participate in preschool programs as-
sisted under section 619. 
‘‘SEC. 633. GENERAL AUTHORITY. 
‘‘The Secretary shall, in accordance with this part, 
make grants to States (from their allotments under sec-
tion 643) to assist each State to maintain and implement 
a statewide, comprehensive, coordinated, multidisciplinary, 
interagency system to provide early intervention services 
for infants and toddlers with disabilities and their families. 
‘‘SEC. 634. ELIGIBILITY. 
‘‘In order to be eligible for a grant under section 633, 
a State shall provide assurances to the Secretary that the 
State—
‘‘(1) has adopted a policy that appropriate early 
intervention services are available to all infants and 
toddlers with disabilities in the State and their fami-
lies, including Indian infants and toddlers with dis-
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abilities and their families residing on a reservation 
geographically located in the State; and 
‘‘(2) has in effect a statewide system that meets 
the requirements of section 635. 
‘‘SEC. 635. REQUIREMENTS FOR STATEWIDE SYSTEM. 
‘‘(a) IN GENERAL.—A statewide system described in 
section 633 shall include, at a minimum, the following 
components: 
‘‘(1) A definition of the term ‘developmental 
delay’ that will be used by the State in carrying out 
programs under this part. 
‘‘(2) A State policy that is in effect and that 
ensures that appropriate early intervention services 
based on scientifically based research are available to 
all infants and toddlers with disabilities and their 
families, including Indian infants and toddlers and 
their families residing on a reservation geographi-
cally located in the State. 
‘‘(3) A timely, comprehensive, multidisciplinary 
evaluation of the functioning of each infant or tod-
dler with a disability in the State, and a family-di-
rected identification of the needs of each family of 
such an infant or toddler, to appropriately assist in 
the development of the infant or toddler.
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‘‘(4) For each infant or toddler with a disability 
in the State, an individualized family service plan in 
accordance with section 636, including service co-
ordination services in accordance with such service 
plan. 
‘‘(5) A comprehensive child find system, con-
sistent with part B, including a system for making 
referrals to service providers that includes timelines 
and provides for participation by primary referral 
sources. 
‘‘(6) A public awareness program focusing on 
early identification of infants and toddlers with dis-
abilities, including the preparation and dissemination 
by the lead agency designated or established under 
paragraph (10) to all primary referral sources, espe-
cially hospitals and physicians, of information to be 
given to parents, especially to inform parents with 
premature infants, or infants with other physical 
risk factors associated with learning or develop-
mental complications, on the availability of early 
intervention services under this part and of services 
under section 619 of this Act, and procedures for as-
sisting such sources in disseminating such informa-
tion to parents of infants and toddlers.
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‘‘(7) A central directory that includes informa-
tion on early intervention services, resources, and ex-
perts available in the State and research and dem-
onstration projects being conducted in the State. 
‘‘(8) A comprehensive system of personnel de-
velopment, including the training of paraprofes-
sionals and the training of primary referral sources 
respecting the basic components of early intervention 
services available in the State that—
‘‘(A) shall include—
‘‘(i) implementing innovative strate-
gies and activities for the recruitment and 
retention of early education service pro-
viders; 
‘‘(ii) promoting the preparation of 
early intervention providers who are fully 
and appropriately qualified to provide early 
intervention services under this part; and 
‘‘(iii) training personnel to coordinate 
transition services for infants and toddlers 
served under this part from a program 
providing early intervention services under 
this part and under part B (other than 
section 619), to a preschool program re-
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ceiving funds under section 619, or an-
other appropriate program; and 
‘‘(B) may include—
‘‘(i) training personnel to work in 
rural and inner-city areas; and 
‘‘(ii) training personnel in the emo-
tional and social development of young 
children. 
‘‘(9) Subject to subsection (b), policies and pro-
cedures relating to the establishment and mainte-
nance of standards to ensure that personnel nec-
essary to carry out this part are appropriately and 
adequately prepared and trained, including the es-
tablishment and maintenance of standards that are 
consistent with any State-approved or recognized 
certification, licensing, registration, or other com-
parable requirements that apply to the area in which 
such personnel are providing early intervention serv-
ices. 
‘‘(10) A single line of responsibility in a lead 
agency designated or established by the Governor for 
carrying out—
‘‘(A) the general administration and super-
vision of programs and activities receiving as-
sistance under section 633, and the monitoring
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of programs and activities used by the State to 
carry out this part, whether or not such pro-
grams or activities are receiving assistance 
made available under section 633, to ensure 
that the State complies with this part; 
‘‘(B) the identification and coordination of 
all available resources within the State from 
Federal, State, local, and private sources; 
‘‘(C) the assignment of financial responsi-
bility in accordance with section 637(a)(2) to 
the appropriate agencies; 
‘‘(D) the development of procedures to en-
sure that services are provided to infants and 
toddlers with disabilities and their families 
under this part in a timely manner pending the 
resolution of any disputes among public agen-
cies or service providers; 
‘‘(E) the resolution of intra- and inter-
agency disputes; and 
‘‘(F) the entry into formal interagency 
agreements that define the financial responsi-
bility of each agency for paying for early inter-
vention services (consistent with State law) and 
procedures for resolving disputes and that in-
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clude all additional components necessary to en-
sure meaningful cooperation and coordination. 
‘‘(11) A policy pertaining to the contracting or 
making of other arrangements with service providers 
to provide early intervention services in the State, 
consistent with the provisions of this part, including 
the contents of the application used and the condi-
tions of the contract or other arrangements. 
‘‘(12) A procedure for securing timely reim-
bursements of funds used under this part in accord-
ance with section 640(a). 
‘‘(13) Procedural safeguards with respect to 
programs under this part, as required by section 
639. 
‘‘(14) A system for compiling data requested by 
the Secretary under section 618 that relates to this 
part. 
‘‘(15) A State interagency coordinating council 
that meets the requirements of section 641. 
‘‘(16) Policies and procedures to ensure that, 
consistent with section 636(d)(5)—
‘‘(A) to the maximum extent appropriate, 
early intervention services are provided in nat-
ural environments; and
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‘‘(B) the provision of early intervention 
services for any infant or toddler occurs in a 
setting other than a natural environment only 
when early intervention cannot be achieved sat-
isfactorily for the infant or toddler in a natural 
environment or in a setting that is most appro-
priate, as determined by the parent and the in-
dividualized family service plan team. 
‘‘(b) POLICY.—In implementing subsection (a)(9), a 
State may adopt a policy that includes making ongoing 
good-faith efforts to recruit and hire appropriately and 
adequately trained personnel to provide early intervention 
services to infants and toddlers with disabilities, including, 
in a geographic area of the State where there is a shortage 
of such personnel, the most qualified individuals available 
who are making satisfactory progress toward completing 
applicable course work necessary to meet the standards 
described in subsection (a)(9), consistent with State law 
within 3 years.
‘‘(c) TREATMENT OF CHILDREN AGED 3 THROUGH 
5.—
‘‘(1) IN GENERAL.—If a State includes children 
described in section 632(5)(C) in the system de-
scribed in section 633, the State shall be considered 
to have fulfilled any obligation under part B with re-
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spect to the provision of a free appropriate public 
education to those children during the period in 
which they are receiving services under this part. 
‘‘(2) CONSTRUCTION.—Nothing in paragraph 
(1) shall be construed to alter or diminish the rights 
and protections afforded under this part to children 
described in such paragraph. 
‘‘SEC. 636. INDIVIDUALIZED FAMILY SERVICE PLAN. 
‘‘(a) ASSESSMENT AND PROGRAM DEVELOPMENT.—
A statewide system described in section 633 shall provide, 
at a minimum, for each infant or toddler with a disability, 
and the infant’s or toddler’s family, to receive—
‘‘(1) a multidisciplinary assessment of the 
unique strengths and needs of the infant or toddler 
and the identification of services appropriate to meet 
such needs; 
‘‘(2) a family-directed assessment of the re-
sources, priorities, and concerns of the family and 
the identification of the supports and services nec-
essary to enhance the family ’s capacity to meet the 
developmental needs of the infant or toddler; and 
‘‘(3) a written individualized family service plan 
developed by a multidisciplinary team, including the 
parents, as required by subsection (e), including a
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description of the appropriate transition services for 
the child’s entrance in school. 
‘‘(b) PERIODIC REVIEW.—The individualized family 
service plan shall be evaluated once a year and the family 
shall be provided a review of the plan at 6-month intervals 
(or more often where appropriate based on infant or tod-
dler and family needs). 
‘‘(c) PROMPTNESS AFTER ASSESSMENT.—The indi-
vidualized family service plan shall be developed within a 
reasonable time after the assessment required by sub-
section (a)(1) is completed. With the parents’ consent, 
early intervention services may commence prior to the 
completion of the assessment. 
‘‘(d) CONTENT OF PLAN.—The individualized family 
service plan shall be in writing and contain—
‘‘(1) a statement of the infant’s or toddler ’s 
present levels of physical development, cognitive de-
velopment, communication development, social or 
emotional development, and adaptive development, 
based on objective criteria; 
‘‘(2) a statement of the family ’s resources, pri-
orities, and concerns relating to enhancing the devel-
opment of the family ’s infant or toddler with a dis-
ability;
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‘‘(3) a statement of the major goals expected to 
be achieved for the infant or toddler and the family, 
including pre-literacy and language skills, as devel-
opmentally appropriate for the child, and the cri-
teria, procedures, and timelines used to determine 
the degree to which progress toward achieving the 
goals is being made and whether modifications or re-
visions of the goals or services are necessary; 
‘‘(4) a statement of specific early intervention 
services based on peer-reviewed research, to the ex-
tent practicable, necessary to meet the unique needs 
of the infant or toddler and the family, including the 
frequency, intensity, and method of delivering serv-
ices; 
‘‘(5) a statement of the natural environments in 
which early intervention services will appropriately 
be provided, including a justification of the extent, 
if any, to which the services will not be provided in 
a natural environment; 
‘‘(6) the projected dates for initiation of serv-
ices and the anticipated length, duration, and fre-
quency of the services; 
‘‘(7) the identification of the service coordinator 
from the profession most immediately relevant to the 
infant’s or toddler’s or family’s needs (or who is oth-
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erwise qualified to carry out all applicable respon-
sibilities under this part) who will be responsible for 
the implementation of the plan and coordination 
with other agencies and persons, including transition 
services; and 
‘‘(8) the steps to be taken to support the transi-
tion of the toddler with a disability to preschool or 
other appropriate services. 
‘‘(e) PARENTAL CONSENT.—The contents of the indi-
vidualized family service plan shall be fully explained to 
the parents and informed written consent from the par-
ents shall be obtained prior to the provision of early inter-
vention services described in such plan. If the parents do 
not provide consent with respect to a particular early 
intervention service, then only the early intervention serv-
ices to which consent is obtained shall be provided. 
‘‘SEC. 637. STATE APPLICATION AND ASSURANCES. 
‘‘(a) APPLICATION.—A State desiring to receive a 
grant under section 633 shall submit an application to the 
Secretary at such time and in such manner as the Sec-
retary may reasonably require. The application shall con-
tain—
‘‘(1) a designation of the lead agency in the 
State that will be responsible for the administration 
of funds provided under section 633;
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‘‘(2) a designation of an individual or entity re-
sponsible 
for 
assigning 
financial 
responsibility 
among appropriate agencies; 
‘‘(3) information demonstrating eligibility of the 
State under section 634, including a description of 
services to be provided to infants and toddlers with 
disabilities and their families through the system; 
‘‘(4) if the State provides services to at-risk in-
fants and toddlers through the statewide system, a 
description of such services; 
‘‘(5) a description of the State policies and pro-
cedures requiring the referral of a child under the 
age 3 who is involved in a substantiated case of child 
abuse or neglect consistent with section 635(a)(5) or 
who is born and identified with fetal alcohol effects, 
fetal alcohol syndrome, neonatal intoxication, or neo-
natal physical or neurological harm resulting from 
prenatal drug exposure; 
‘‘(6) a description of the uses for which funds 
will be expended in accordance with this part; 
‘‘(7) a description of the procedure used to en-
sure that resources are made available under this 
part for all geographic areas within the State; 
‘‘(8) a description of State policies and proce-
dures that ensure that, prior to the adoption by the
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State of any other policy or procedure necessary to 
meet the requirements of this part, there are public 
hearings, adequate notice of the hearings, and an 
opportunity for comment available to the general 
public, including individuals with disabilities and 
parents of infants and toddlers with disabilities; 
‘‘(9) a description of the policies and procedures 
to be used—
‘‘(A) to ensure a smooth transition for tod-
dlers receiving early intervention services under 
this part to preschool or other appropriate serv-
ices, including a description of how—
‘‘(i) the families of such toddlers will 
be included in the transition plans required 
by subparagraph (C); and 
‘‘(ii) the lead agency designated or es-
tablished under section 635(a)(10) will—
‘‘(I) notify the local educational 
agency for the area in which such a 
child resides that the child will shortly 
reach the age of eligibility for pre-
school services under part B, as deter-
mined in accordance with State law; 
‘‘(II) in the case of a child who 
may be eligible for such preschool
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services, with the approval of the fam-
ily of the child, convene a conference 
among the lead agency, the family, 
and the local educational agency at 
least 90 days (and at the discretion of 
all such parties, up to 6 months) be-
fore the child is eligible for the pre-
school services, to discuss any such 
services that the child may receive; 
and 
‘‘(III) in the case of a child who 
may not be eligible for such preschool 
services, with the approval of the fam-
ily, make reasonable efforts to con-
vene a conference among the lead 
agency, the family, and providers of 
other appropriate services for children 
who are not eligible for preschool serv-
ices under part B, to discuss the ap-
propriate services that the child may 
receive; 
‘‘(B) to review the child’s program options 
for the period from the child’s third birthday 
through the remainder of the school year; and 
‘‘(C) to establish a transition plan;
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‘‘(10) a description of State efforts to promote 
collaboration between Early Head Start programs, 
child care, and services under part C of this Act; 
and 
‘‘(11) such other information and assurances as 
the Secretary may reasonably require. 
‘‘(b) ASSURANCES.—The application described in 
subsection (a)—
‘‘(1) shall provide satisfactory assurance that 
Federal funds made available under section 643 to 
the State will be expended in accordance with this 
part; 
‘‘(2) shall contain an assurance that the State 
will comply with the requirements of section 640; 
‘‘(3) shall provide satisfactory assurance that 
the control of funds provided under section 643, and 
title to property derived from those funds, will be in 
a public agency for the uses and purposes provided 
in this part and that a public agency will administer 
such funds and property; 
‘‘(4) shall provide for—
‘‘(A) making such reports in such form 
and containing such information as the Sec-
retary may require to carry out the Secretary’s 
functions under this part; and
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‘‘(B) keeping such records and affording 
such access to them as the Secretary may find 
necessary to ensure the correctness and 
verification of those reports and proper dis-
bursement of Federal funds under this part; 
‘‘(5) provide satisfactory assurance that Federal 
funds made available under section 643 to the 
State—
‘‘(A) will not be commingled with State 
funds; and 
‘‘(B) will be used so as to supplement the 
level of State and local funds expended for in-
fants and toddlers with disabilities and their 
families and in no case to supplant those State 
and local funds; 
‘‘(6) shall provide satisfactory assurance that 
such fiscal control and fund accounting procedures 
will be adopted as may be necessary to ensure prop-
er disbursement of, and accounting for, Federal 
funds paid under section 643 to the State; 
‘‘(7) shall provide satisfactory assurance that 
policies and procedures have been adopted to ensure 
meaningful involvement of underserved groups, in-
cluding minority, low-income, and rural families, in
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the planning and implementation of all the require-
ments of this part; and 
‘‘(8) shall contain such other information and 
assurances as the Secretary may reasonably require 
by regulation. 
‘‘(c) STANDARD
FOR DISAPPROVAL
OF APPLICA-
TION.—The Secretary may not disapprove such an appli-
cation unless the Secretary determines, after notice and 
opportunity for a hearing, that the application fails to 
comply with the requirements of this section. 
‘‘(d) SUBSEQUENT STATE APPLICATION.—If a State 
has on file with the Secretary a policy, procedure, or as-
surance that demonstrates that the State meets a require-
ment of this section, including any policy or procedure 
filed under this part (as in effect before the date of the 
enactment of the Improving Education Results for Chil-
dren With Disabilities Act of 2003), the Secretary shall 
consider the State to have met the requirement for pur-
poses of receiving a grant under this part. 
‘‘(e) MODIFICATION OF APPLICATION.—An applica-
tion submitted by a State in accordance with this section 
shall remain in effect until the State submits to the Sec-
retary such modifications as the State determines nec-
essary. This section shall apply to a modification of an
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application to the same extent and in the same manner 
as this section applies to the original application. 
‘‘(f) MODIFICATIONS
REQUIRED
BY
THE
SEC-
RETARY.—The Secretary may require a State to modify 
its application under this section, but only to the extent 
necessary to ensure the State’s compliance with this part, 
if—
‘‘(1) an amendment is made to this Act, or a 
Federal regulation issued under this Act; 
‘‘(2) a new interpretation of this Act is made by 
a Federal court or the State’s highest court; or 
‘‘(3) an official finding of noncompliance with 
Federal law or regulations is made with respect to 
the State. 
‘‘SEC. 638. USES OF FUNDS. 
‘‘In addition to using funds provided under section 
633 to maintain and implement the statewide system re-
quired by such section, a State may use such funds—
‘‘(1) for direct early intervention services for in-
fants and toddlers with disabilities, and their fami-
lies, under this part that are not otherwise funded 
through other public or private sources; 
‘‘(2) to expand and improve on services for in-
fants and toddlers and their families under this part 
that are otherwise available;
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‘‘(3) to provide a free appropriate public edu-
cation, in accordance with part B, to children with 
disabilities from their third birthday to the begin-
ning of the following school year; and 
‘‘(4) in any State that does not provide services 
for at-risk infants and toddlers under section 
637(a)(4), to strengthen the statewide system by ini-
tiating, expanding, or improving collaborative efforts 
related to at-risk infants and toddlers, including es-
tablishing linkages with appropriate public or private 
community-based organizations, services, and per-
sonnel for the purposes of—
‘‘(A) identifying and evaluating at-risk in-
fants and toddlers; 
‘‘(B) making referrals of the infants and 
toddlers identified and evaluated under sub-
paragraph (A); and 
‘‘(C) conducting periodic followup on each 
such referral to determine if the status of the 
infant or toddler involved has changed with re-
spect to the eligibility of the infant or toddler 
for services under this part.’’.