‘‘(i) IN GENERAL.—For the purpose of
administering programs under this part,
including the coordination of activities
under this part with, and providing tech-
nical assistance to, other programs that pro-
vide services to children with disabilities—
‘‘(I) each territory may use up to
3 percent of the amount allotted to the
territory for a fiscal year, or $35,000,
whichever is greater; and
‘‘(II) each remaining State may
use up to 3 percent of the amount al-
lotted to the State for a fiscal year, or
$450,000, whichever is greater.
‘‘(ii) USE OF AMOUNTS FOR ADMINIS-
TRATION
OF
PART
C.—If the State edu-
cational agency is the lead agency for the
State under part C, amounts described in
clause (i) may also be used for the adminis-
tration of part C.
‘‘(C) OTHER STATE-LEVEL ACTIVITIES.—A
State shall use any amounts reserved under sub-
paragraph (A) for a fiscal year that are not used
for administration under subparagraph (B) for
such fiscal year—
‘‘(i) for support and direct services, in-
cluding technical assistance and personnel
development and training;
‘‘(ii) for administrative costs of mon-
itoring and complaint investigation, but
only to the extent that such costs exceed the
costs incurred for those activities during fis-
cal year 1985;
‘‘(iii) to establish and implement the
mediation 
process 
required 
by 
section
615(d), including providing for the costs of
mediators and support personnel;
‘‘(iv) to assist local educational agen-
cies in meeting personnel shortages;
‘‘(v) to develop a State improvement
plan under part D;
‘‘(vi) for activities at the State and
local levels to meet the performance goals es-
tablished 
by 
the 
State 
under 
section
612(a)(14) and to support implementation
of the State improvement plan under part
D if the State receives funds under that
part; or
‘‘(vii) to supplement other amounts
used to develop and implement a Statewide
coordinated services system designed to im-
prove results for children and families, in-
cluding children with disabilities and their
families, but not to exceed one percent of the
amount received by the State under this sec-
tion (such system shall be coordinated with
and, to the extent appropriate, build on the
system of coordinated services developed by
the State under part C).
‘‘(D) REPORT ON USE OF AMOUNTS.—The
State shall, as part of the information required
to be submitted under section 612, submit a de-
scription of—
‘‘(i) how amounts reserved under sub-
paragraph (A) will be used to meet the re-
quirements of this part;
‘‘(ii) how such amounts will be allo-
cated among the activities described in sub-
paragraphs (B) and (C) to meet State pri-
orities based on input from local edu-
cational agencies; and
‘‘(iii) 
what 
percentage 
of 
such
amounts, if any, will be distributed to local
educational agencies by formula.
‘‘(2) SUBGRANTS TO LOCAL EDUCATIONAL AGEN-
CIES AND CERTAIN STATE AGENCIES.—
‘‘(A) IN GENERAL.—The State shall provide
at least 75 percent of the amount received under
a grant for a fiscal year to local educational
agencies in the State that have established their
eligibility under section 613, and to State agen-
cies that received funds under section 614A(a)
(as such section was in effect on the day before
the date of the enactment of the IDEA Improve-
ment Act of 1996) for fiscal year 1996 and have
established their eligibility under section 613, for
use in accordance with this part.
‘‘(B) METHODS OF DISTRIBUTION.—A State
may provide amounts under subparagraph (A)
to local educational agencies and State agencies
described under such subparagraph on the basis
of—
‘‘(i) school-age population;
‘‘(ii) school enrollment;
‘‘(iii) numbers of children with disabil-
ities receiving a free appropriate public
education;
‘‘(iv) allocations for previous fiscal
years;
‘‘(v) any two or more of the factors de-
scribed in clauses (i) through (iv); or
‘‘(vi) poverty, in combination with one
or more of the factors described in clauses
(i) through (iv).
‘‘(C) FORMER
CHAPTER
STATE
AGEN-
CIES.—
‘‘(i) IN GENERAL.—To the extent nec-
essary for each of the fiscal years 1997,
1998, and 1999, the State shall use amounts
that are available under paragraph (1)(A)
to ensure that each State agency that re-
ceived amounts in fiscal year 1994 under
subpart 2 of part D of chapter 1 of title I
of the Elementary and Secondary Edu-
cation Act of 1965 (as such subpart was in
effect on the day before the date of the enact-
ment of the Improving America’s Schools
Act of 1994) receives, from the combination
of funds under paragraph (1)(A) and funds
provided under subparagraph (A), an
amount equal to—
‘‘(I) the number of children with
disabilities, aged 6 to 21, inclusive, to
whom the agency was providing spe-
cial education and related services on
December 1 of the fiscal year for which
the funds were appropriated, subject to
the methods of distribution under sub-
paragraph (B); multiplied by
‘‘(II) the per-child amount pro-
vided under such subpart for fiscal
year 1994.
‘‘(ii) ADDITIONAL USE OF AMOUNTS.—
The State may use amounts described in
clause (i) to ensure that each local edu-
cational agency that received fiscal year
1994 funds under that subpart for children
who had transferred from a State-operated
or State-supported school or program as-
sisted under that subpart receives, from the
combination of funds available under para-
graph (1)(A) and funds provided under sub-
paragraph (A), an amount for each such
child, aged 3 to 21, inclusive, to whom the
agency was providing special education and
related services on December 1 of the fiscal
year for which the funds were appropriated,
equal to the per-child amount the agency re-
ceived under that subpart for fiscal year
1994.
‘‘(iii) DETERMINATION OF NUMBER OF
CHILDREN.—The number of children count-
ed under clause (i)(I) shall not exceed the
number of children aged 3 to 21, inclusive,
for whom the agency received amounts in
fiscal year 1994 under subpart 2 of part D
of chapter 1 of title I of the Elementary and
Secondary Education Act of 1965 (as such
subpart was in effect on the day before the
date of the enactment of the Improving
America’s Schools Act of 1994).
‘‘(D) REALLOCATION
OF
AMOUNTS.—If a
State educational agency determines that a local
educational agency is adequately providing a
free appropriate public education to all children
with disabilities residing in the area served by
that agency with State and local funds, the State
educational agency may reallocate any portion
of amounts received under a grant under this
part that are not needed by that local agency to
other local educational agencies in the State that
are not adequately providing special education
and related services to all children with disabil-
ities residing in the areas they serve.
‘‘(d) USE OF AMOUNTS BY SECRETARY OF THE INTE-
RIOR.—
‘‘(1) PROVISION
OF
AMOUNTS
FOR
ASSIST-
ANCE.—
‘‘(A) IN GENERAL.—The Secretary of Edu-
cation shall provide amounts to the Secretary of
the Interior to meet the need for assistance for
the education of children with disabilities on res-
ervations aged 5 to 21, inclusive, enrolled in ele-
mentary and secondary schools for Indian chil-
dren operated or funded by the Secretary of the
Interior. The amount of such payment for any
fiscal year shall be equal to 80 percent of the
amount allotted under subsection (b)(2) for that
fiscal year.
‘‘(B) CALCULATION OF NUMBER OF CHIL-
DREN.—In the case of Indian students ages 3 to
5, inclusive, who are enrolled in programs affili-
ated with Bureau of Indian Affairs (hereafter in
this subsection referred to as ‘BIA’) schools and
that are required by the States in which such
schools are located to attain or maintain State
accreditation, and which schools have such ac-
creditation prior to the date of enactment of the
Individuals with Disabilities Education Act
Amendments of 1991, the school shall be allowed
to count those children for the purpose of dis-
tribution of the funds provided under this para-
graph to the Secretary of the Interior. The Sec-
retary of the Interior shall be responsible for
meeting all of the requirements of this part for
these children, in accordance with paragraph
(2).
‘‘(C) ADDITIONAL REQUIREMENT.—With re-
spect to all other children aged 3 to 21, inclusive,
on reservations, the State educational agency
shall be responsible for ensuring that all of the
requirements of this part are implemented.
‘‘(2) SUBMISSION
OF
INFORMATION.—The Sec-
retary of Education may provide the Secretary of the
Interior amounts under paragraph (1) for a fiscal
year only if the Secretary of the Interior submits to
the Secretary of Education information that—
‘‘(A) demonstrates that the Department of
the Interior meets the appropriate requirements,
as determined by the Secretary of Education, of
sections 612 (including monitoring and evalua-
tion activities) and 613;
‘‘(B) includes a description of how the Sec-
retary of the Interior will coordinate the provi-
sion of services under this part with local edu-
cational agencies, tribes and tribal organiza-
tions, and other private and Federal service pro-
viders;
‘‘(C) includes an assurance that there are
public hearings, adequate notice of such hear-
ings, and an opportunity for comment afforded
to members of tribes, tribal governing bodies, and
affected local school boards before the adoption of
the policies, programs, and procedures described
in subparagraph (A);
‘‘(D) includes an assurance that the Sec-
retary of the Interior will provide such informa-
tion as the Secretary of Education may require
to comply with section 618;
‘‘(E) includes an assurance that the Sec-
retary of the Interior and the Secretary of
Health and Human Services have entered into a
memorandum of agreement, to be provided to the
Secretary of Education, for the coordination of
services, resources, and personnel between their
respective Federal, State, and local offices and
with State and local educational agencies and
other entities to facilitate the provision of serv-
ices to Indian children with disabilities residing
on or near reservations (such agreement shall
provide for the apportionment of responsibilities
and costs including, but not limited to, child
find, evaluation, diagnosis, remediation or thera-
peutic measures, and (where appropriate) equip-
ment and medical or personal supplies as needed
for a child to remain in school or a program);
and
‘‘(F) includes an assurance that the Depart-
ment of the Interior will cooperate with the De-
partment of Education in its exercise of monitor-
ing and oversight of this application, and any
agreements entered into between the Secretary of
the Interior and other entities under this part,
and will fulfill its duties under this part.
Section 616(a) shall apply to the information de-
scribed in this paragraph.
‘‘(3) PAYMENTS FOR EDUCATION AND SERVICES
FOR INDIAN CHILDREN WITH DISABILITIES AGED 3 TO
5.—
‘‘(A) IN
GENERAL.—With funds appro-
priated under subsection (e), the Secretary of
Education shall make payments to the Secretary
of the Interior to be distributed to tribes or tribal
organizations (as defined under section 4 of the
Indian Self-Determination and Education As-
sistance Act) or consortia of the above to provide
for the coordination of assistance for special edu-
cation and related services for children with dis-
abilities aged 3 to 5, inclusive, on reservations
served by elementary and secondary schools for
Indian children operated or funded by the De-
partment of the Interior. The amount of such
payments under subparagraph (B) for any fiscal
year shall be equal to 20 percent of the amount
allotted under subsection (b)(2).
‘‘(B) DISTRIBUTION OF FUNDS.—The Sec-
retary of the Interior shall distribute the total
amount of the payment under subparagraph (A)
by allocating to each tribe or tribal organization
an amount based on the number of children with
disabilities, ages 3 to 5, inclusive, residing on
reservations as reported annually divided by the
total of such children served by all tribes or trib-
al organizations.
‘‘(C) SUBMISSION OF INFORMATION.—To re-
ceive a payment under this paragraph, the tribe
or tribal organization shall submit such figures
to the Secretary of the Interior as required to de-
termine the amounts to be allocated under sub-
paragraph (B). This information shall be com-
piled and submitted to the Secretary of Edu-
cation.
‘‘(D) USE OF FUNDS.—The funds received
by a tribe or tribal organization shall be used to
assist in child find, screening, and other proce-
dures for the early identification of children aged
3 to 5, inclusive, parent training, and the provi-
sion of direct services. These activities may be
carried out directly or through contracts or coop-
erative agreements with the BIA, local edu-
cational agencies, and other public or private
nonprofit organizations. The tribe or tribal orga-
nization is encouraged to involve Indian parents
in the development and implementation of these
activities. The above entities shall, as appro-
priate, make referrals to local, State, or Federal
entities for the provision of services or further di-
agnosis.
‘‘(E) BIENNIAL REPORT.—To be eligible to
receive a grant pursuant to subparagraph (A),
the tribe or tribal organization shall provide to
the Secretary of the Interior a biennial report of
activities undertaken under this paragraph, in-
cluding the number of contracts and cooperative
agreements entered into, the number of children
contacted and receiving services for each year
and the estimated number of children needing
services during the 2 years following the one in
which the report is made. The Secretary of the
Interior shall include a summary of this infor-
mation on a biennial basis in the report to the
Secretary of Education required under this sub-
section. The Secretary of Education may require
any additional information from the Secretary
of the Interior.
‘‘(F) PROHIBITIONS.—None of the funds al-
located under this paragraph may be used by the
Secretary of the Interior for administrative pur-
poses, including child count and the provision of
technical assistance.
‘‘(4) PLAN FOR COORDINATION OF SERVICES.—
The Secretary of the Interior shall develop and imple-
ment a plan for the coordination of services for all
Indian children with disabilities residing on reserva-
tions covered under this Act. Such plan shall provide
for the coordination of services benefiting these chil-
dren from whatever source, including tribes, the In-
dian Health Service, other BIA divisions, and other
Federal agencies. In developing such a plan, the Sec-
retary of the Interior shall consult with all interested
and involved parties. It shall be based upon the needs
of the children and the system best suited for meeting
those needs, and may involve the establishment of co-
operative agreements between the BIA, other Federal
agencies, and other entities. Such plan shall also be
distributed upon request to States, State and local
educational agencies, and other agencies providing
services to infants, toddlers, children, and youth with
disabilities, to tribes, and to other interested parties.
‘‘(5) ESTABLISHMENT OF ADVISORY BOARD.—To
meet the requirements of section 612(a)(18), the Sec-
retary of the Interior shall establish, not later than 6
months after the date of the enactment of the IDEA
Improvement Act of 1996, under the Bureau of In-
dian Affairs (BIA), an advisory board composed of
individuals involved in or concerned with the edu-
cation and provision of services to Indian infants,
toddlers, children, and youth with disabilities, includ-
ing Indians with disabilities, Indian parents or
guardians of such children, teachers, service providers,
State and local educational officials, representatives
of tribes or tribal organizations, representatives from
State Interagency Coordinating Councils in States
having reservations, and other members representing
the various divisions and entities of the BIA. The
chairperson shall be selected by the Secretary of the
Interior. The advisory board shall—
‘‘(A) assist in the coordination of services
within BIA and with other local, State, and
Federal agencies in the provision of education
for infants, toddlers, children, and youth with
disabilities;
‘‘(B) advise and assist the Secretary of the
Interior in the performance of the Secretary’s re-
sponsibilities described in this subsection;
‘‘(C) develop and recommend policies con-
cerning effective inter- and intra-agency collabo-
ration, including modifications to regulations,
and the elimination of barriers to inter- and
intra-agency programs and activities;
‘‘(D) provide assistance and disseminate in-
formation on best practices, effective program co-
ordination strategies, and recommendations for
improved educational programming for Indian
infants, toddlers, children, and youth with dis-
abilities; and
‘‘(E) provide assistance in the preparation
of information required under paragraph (2)(D).
‘‘(6) ANNUAL REPORTS.—
‘‘(A) IN GENERAL.—The advisory board es-
tablished under paragraph (5) shall prepare and
submit to the Secretary of the Interior and to the
Congress an annual report containing a descrip-
tion of the activities of the advisory board for the
preceding year.
‘‘(B) AVAILABILITY.—The Secretary of the
Interior shall make available to the Secretary of
Education the report described in subparagraph
(A).
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of carrying out this part (except for section 619;
relating to preschool grants), there are authorized to be ap-
propriated to the Secretary such sums as may be necessary.
‘‘SEC. 612. STATE REQUIREMENTS.
‘‘(a) IN GENERAL.—A State shall be eligible to receive
a grant under this part for a fiscal year if, except as pro-
vided in subsection (c), the State submits to the Secretary
information that demonstrates to the satisfaction of the Sec-
retary that the State has in effect policies and procedures
to ensure that it meets each of the following requirements:
‘‘(1) FREE APPROPRIATE PUBLIC EDUCATION.—
‘‘(A) IN GENERAL.—A free appropriate pub-
lic education is available to all children with
disabilities residing in the State between the ages
of 3 and 21, inclusive.
‘‘(B) LIMITATION.—Subparagraph (A) shall
not apply with respect to children with disabil-
ities aged 3 to 5 and children with disabilities
aged 18 to 21 to the extent that such application
to those children would be inconsistent with
State law or practice, or the order of any court,
relating to the provision of public education to
children in such age ranges.
‘‘(2) CHILD FIND.—All children with disabilities
residing in the State, including children with disabil-
ities attending private schools, regardless of the sever-
ity of such disabilities, and who are in need of special
education and related services, are identified, located,
and evaluated and that a practical method is devel-
oped and implemented to determine which children
with disabilities are currently receiving needed spe-
cial education and related services.
‘‘(3) INDIVIDUALIZED
EDUCATION
PROGRAM.—
An individualized education program, or an individ-
ualized family service plan that meets the require-
ments of section 636(d), is developed, reviewed, and
revised for each child with a disability in accordance
with section 614(d).
‘‘(4) LEAST RESTRICTIVE ENVIRONMENT.—
‘‘(A) IN GENERAL.—To the maximum ex-
tent appropriate—
‘‘(i) children with disabilities, includ-
ing children in public or private institu-
tions or other care facilities, are educated
with children who are not disabled; and
‘‘(ii) special classes, separate schooling,
or other removal of children with disabil-
ities from the regular educational environ-
ment occurs only when the nature or sever-
ity of the disability of a child means that
education in regular classes with the use of
supplementary aids and services cannot be
achieved satisfactorily.
‘‘(B) ADDITIONAL REQUIREMENT.—
‘‘(i) IN GENERAL.—The State’s method
of distributing funds shall not result in
placements that violate the requirements of
subparagraph (A).
‘‘(ii) EXCEPTION.—If the State does
not have policies and procedures to ensure
compliance with clause (i), the State shall
provide the Secretary an assurance that it
will revise the funding mechanism as soon
as feasible to ensure that such mechanism
does not result in such placements.
‘‘(5) PROCEDURAL SAFEGUARDS.—
‘‘(A) IN GENERAL.—Children with disabil-
ities and their parents are afforded the proce-
dural safeguards required by section 615.
‘‘(B) 
ADDITIONAL
PROCEDURAL
SAFE-
GUARDS.—Procedures to assure that testing and
evaluation materials and procedures utilized for
the purposes of evaluation and placement of chil-
dren with disabilities will be selected and admin-
istered so as not to be racially or culturally dis-
criminatory. Such materials or procedures shall
be provided and administered in the child’s na-
tive language or mode of communication, unless
it clearly is not feasible to do so, and no single
procedure shall be the sole criterion for determin-
ing an appropriate educational program for a
child.
‘‘(6) EVALUATION.—Children with disabilities
are evaluated in accordance with subsections (a)
through (c) of section 614.
‘‘(7) CONFIDENTIALITY.—Agencies in the State
comply with section 617(c) (relating to the confiden-
tiality of records and information).
‘‘(8) TRANSITION FROM PART C TO PRESCHOOL
PROGRAMS.—Children participating in early-inter-
vention programs assisted under part C, and who will
participate in preschool programs assisted under this
part, experience a smooth transition to those preschool
programs in a manner consistent with section
637(a)(7). By the third birthday of such a child, an
individualized education program or, if consistent
with sections 614(d)(1)(B) and 636(d), an individual-
ized family service plan, has been developed and is
being implemented for the child. The local educational
agency will participate in transition planning con-
ferences by the designated lead agency under section
637(a)(7).
‘‘(9) CHILDREN IN PRIVATE SCHOOLS.—
‘‘(A) IN GENERAL.—To the extent consistent
with the number and location of children with
disabilities in the State who are enrolled in pri-
vate elementary and secondary schools, provision
is made for the participation of such children in
the program assisted or carried out under this
part by providing for such children special edu-
cation and related services, except if the Sec-
retary has arranged for services to such children
under subsection (f).
‘‘(B) CHILDREN PLACED IN, OR REFERRED
TO, PRIVATE SCHOOLS BY PUBLIC AGENCIES.—
‘‘(i) IN GENERAL.—Children with dis-
abilities in private schools and facilities are
provided special education and related serv-
ices, in accordance with an individualized
education program, at no cost to their par-
ents, if they are placed in, or referred to,
such schools or facilities by the State or a
local educational agency in order to comply
with this part or with any other provision
of law requiring the provision of special
education and related services to all chil-
dren with disabilities in the State.
‘‘(ii) ADDITIONAL REQUIREMENTS.—In
all cases described in clause (i)—
‘‘(I) children with disabilities are
placed in, or referred to, only those
private schools and facilities that the
State educational agency determines
meet standards that apply to State
and local educational agencies; and
‘‘(II) children served in such pri-
vate schools or facilities retain access
to a free appropriate public education
in accordance with this part.
‘‘(C) PAYMENT FOR EDUCATION OF CHIL-
DREN
PLACED
IN
PRIVATE
SCHOOLS
WITHOUT
CONSENT
OF
OR
REFERRAL
BY
THE
PUBLIC
AGENCY.—
‘‘(i) IN GENERAL.—If the parents of a
child with a disability that had previously
received special education and related serv-
ices under the authority of a public agency
have enrolled their child in a private ele-
mentary or secondary school without the
consent of or referral by the public agency,
as a result of mediation described in section
615(d), or as a result of a decision rendered
under the procedural safeguards of section
615, the public agency may be required to
reimburse the parents for the cost of the en-
rollment, except that the cost of the reim-
bursement may be reduced or denied—
‘‘(I) if, at least 10 school days
prior to the removal of the child from
the public school, the parents did not
give a written statement of their con-
cerns to the public agency and notice
that they intend to place their child in
a private school at public expense;
‘‘(II) if, prior to the removal of
the child from the public school, the
parents did not make the child avail-
able for an initial assessment and eval-
uation by the local educational agency
prior to enrollment in the private
school; or
‘‘(III) at the discretion of the
judge.
‘‘(ii) 
EXCEPTION.—Notwithstanding
the notice requirement in clause (i)(I), the
cost of the reimbursement may not be re-
duced or denied for failure to provide such
notice if—
‘‘(I) the parent is illiterate or
cannot write in English;
‘‘(II) 
compliance 
with 
clause
(i)(I) would likely result in physical or
serious emotional harm to the child;
‘‘(III) the school prevented the
parent from providing such notice; or
‘‘(IV) the parent had not received
notice, pursuant to section 615(d), of
the notice requirement in clause (i)(I).
‘‘(10) STATE
EDUCATIONAL
AGENCY
RESPON-
SIBLE FOR GENERAL SUPERVISION.—
‘‘(A) IN GENERAL.—The State educational
agency is responsible for ensuring that—
‘‘(i) the requirements of this part are
met; and
‘‘(ii) all educational programs for chil-
dren with disabilities in the State, includ-
ing all such programs administered by any
other State or local agency—
‘‘(I) are under the general super-
vision of individuals in the State who
are responsible for educational pro-
grams for children with disabilities;
and
‘‘(II) meet the educational stand-
ards of the State educational agency.
‘‘(B) LIMITATION.—Subparagraph (A) shall
not limit the responsibility of agencies in the
State other than the State educational agency to
provide, or pay for some or all of the costs of, a
free appropriate public education for any child
with a disability in the State.
‘‘(11) OBLIGATIONS RELATED TO AND METHODS
OF ENSURING SERVICES.—
‘‘(A) ESTABLISHING
RESPONSIBILITY
FOR
SERVICES.—The Chief Executive Officer or des-
ignee of the officer shall ensure that an inter-
agency agreement or other mechanism for inter-
agency coordination is in effect between each
public agency described in subparagraph (B)
and the appropriate educational agency within
the State, in order to ensure that all services de-
scribed in subparagraph (B)(i) that are needed
to ensure a free appropriate public education are
provided, including the provision of such services
during the pendency of any dispute under clause
(iii). Such agreement or mechanism shall include
the following:
‘‘(i) AGENCY FINANCIAL RESPONSIBIL-
ITY.—An identification of, or a method for
defining, the financial responsibility of each
agency for providing services described in
subparagraph (B)(i) to ensure a free appro-
priate public education to children with
disabilities provided that the financial re-
sponsibility of each public agency described
in subparagraph (B), including the State
Medicaid agency and other public insurers
of children with disabilities, shall precede
the financial responsibility of the local edu-
cation agency (or the State agency respon-
sible for developing the child’s IEP).
‘‘(ii) CONDITIONS AND TERMS OF RE-
IMBURSEMENT.—The conditions, terms, and
procedures under which a local educational
agency shall be reimbursed by other agen-
cies.
‘‘(iii) INTERAGENCY
DISPUTES.—Pro-
cedures for resolving interagency disputes
(including procedures under which local
education agencies may initiate proceed-
ings) under the agreement or other mecha-
nism to secure reimbursement from other
agencies or otherwise implement the provi-
sions of the agreement or mechanism.
‘‘(iv) 
COORDINATION
OF
SERVICES
PROCEDURES.—Policies and procedures for
agencies to determine and identify the
interagency coordination responsibilities of
each agency to promote the coordination
and timely and appropriate delivery of
services described in subparagraph (B)(i).
‘‘(B) OBLIGATION OF PUBLIC AGENCY.—
‘‘(i) IN GENERAL.—If any public agen-
cy other than an educational agency is oth-
erwise obligated under Federal or State law,
or assigned responsibility under State pol-
icy or pursuant to subparagraph (A), to
provide or pay for any services that are
considered special education or related serv-
ices (such as, but not limited to, services de-
scribed in sections 602(1) relating to
assistive technology devices, 602(2) relating
to assistive technology services, 602(20) re-
lating to related services, 602(27) related to
supplementary aids and services, and
602(29) relating to transition services) that
are necessary for ensuring a free appro-
priate public education to children with
disabilities within the State, such public
agency shall fulfill that obligation or re-
sponsibility, either directly or through con-
tract or other arrangement.
‘‘(ii) REIMBURSEMENT FOR SERVICES
BY
PUBLIC
AGENCY.—If a public agency
other than an educational agency fails to
provide or pay for the special education and
related services described in clause (i), the
local educational agency (or State agency
responsibility for developing the child’s
IEP) shall provide or pay for such services
to the child. Such local education agency or
State agency may then claim reimburse-
ment for the services from the public agency
that failed to provide or pay for such serv-
ices and such public agency shall reimburse
the local education agency or State agency
pursuant to the terms of the interagency
agreement described in subparagraph (A)(i)
according to the procedures established in
such agreement pursuant to subparagraph
(A)(ii).
‘‘(C) SPECIAL RULE.—The requirements of
subparagraph (A) may be met through—
‘‘(i) State statute or regulation;
‘‘(ii) signed agreements between respec-
tive agency officials that clearly identify the
responsibilities of each agency relating to
the provision of services; or
‘‘(iii) other appropriate methods as de-
termined by the Chief Executive Officer or
designee of the officer.
‘‘(12) PROCEDURAL
REQUIREMENTS
RELATING
TO LOCAL EDUCATIONAL AGENCY ELIGIBILITY.—The
State educational agency will not make a final deter-
mination that a local educational agency is not eligi-
ble for assistance under this part without first afford-
ing that agency reasonable notice and an opportunity
for a hearing.
‘‘(13) COMPREHENSIVE SYSTEM OF PERSONNEL
DEVELOPMENT.—The State has established and imple-
mented, consistent with the purposes of this title and
section 635(a)(7), a comprehensive system of person-
nel development that is designed to ensure an ade-
quate supply of qualified special education and relat-
ed services personnel necessary to carry out this part,
including—
‘‘(A) a statewide, coordinated personnel-de-
velopment plan that meets the personnel develop-
ment requirements of a State improvement plan
under section 683; or
‘‘(B) a personnel-development plan, devel-
oped in consultation with parents of children
with disabilities, State and local educational
agencies, institutions of higher education, and
professional associations that—
‘‘(i) addresses current and projected
needs for special education and related serv-
ices personnel throughout the State;
‘‘(ii) addresses the need for the pre-
service and in-service preparation of per-
sonnel throughout the State, including regu-
lar education personnel, to provide edu-
cational services to children with disabil-
ities;
‘‘(iii) includes a system or procedures
for recruiting, preparing, and retaining
qualified personnel, including personnel
with disabilities and personnel from groups
that are underrepresented in the field of
special education and related services; and
‘‘(iv) is integrated, to the maximum
extent possible, with other professional de-
velopment plans and activities.
‘‘(14) PERSONNEL STANDARDS.—
‘‘(A) IN GENERAL.—The State educational
agency has established and maintains standards
to ensure that personnel necessary to carry out
this part are appropriately and adequately pre-
pared and trained.
‘‘(B) STANDARDS DESCRIBED.—Such stand-
ards shall—
‘‘(i) be consistent with any State-ap-
proved or State-recognized certification, li-
censing, registration, or other comparable
requirements that apply to the professional
discipline in which those personnel are pro-
viding special education or related services;
‘‘(ii) to the extent the standards de-
scribed in subparagraph (A) are not based
on the highest requirements in the State ap-
plicable to a specific profession or dis-
cipline, the State is taking steps to require
retraining or hiring of personnel that meet
appropriate professional requirements in
the State; and
‘‘(iii) allow paraprofessionals and as-
sistants who are appropriately trained and
supervised, in accordance with State law,
regulations, or written policy, in meeting
the requirements of this part to be used to
assist in the provision of special education
and related services to children with disabil-
ities under this part.
‘‘(C) EXCEPTION.—If the State determines
that, within a geographic area of the State there
is a shortage of an appropriate number and type
of personnel to provide the special education and
related services to children with disabilities with-
in such area, and the appropriate public agency
has taken steps to recruit and hire such person-
nel, the State may, subject to public comment
and review, temporarily suspend the standards
of subparagraph (B)—
‘‘(i) consistent with State law, for the
purpose of recruiting and hiring for such
shortage areas the most qualified available
individuals who are making progress in ap-
plicable coursework; and
‘‘(ii) for a period not to exceed 3 years.
‘‘(15) PERFORMANCE GOALS AND INDICATORS.—
The State—
‘‘(A) has established goals for the perform-
ance of children with disabilities in the State
that—
‘‘(i) will promote the purposes of this
title, as stated in section 601(d); and
‘‘(ii) are consistent, to the maximum
extent appropriate, with other goals and
standards established by the State;
‘‘(B) has established performance indicators
the State will use to assess progress toward
achieving those goals that, at a minimum, ad-
dress the performance of children with disabil-
ities on assessments, drop-out rates, and gradua-
tion rates;
‘‘(C) will, every two years, report to the
Secretary and the public on the progress of the
State, and of children with disabilities in the
State, toward meeting the goals established under
subparagraph (A); and
‘‘(D) based on its assessment of that
progress, will revise its State improvement plan
under part D as may be needed to improve its
performance, if the State receives assistance
under such part.
‘‘(16) PARTICIPATION IN ASSESSMENTS.—
‘‘(A) IN GENERAL.—Children with disabil-
ities are included in general State and district-
wide assessment programs, with appropriate ac-
commodations, where necessary. As appropriate,
the State or local educational agency—
‘‘(i) develops guidelines for the partici-
pation of children with disabilities in alter-
nate assessments for those children who can-
not participate in State and district-wide
assessment programs; and
‘‘(ii) develops and, beginning not later
than July 1, 1999, conducts those alternate
assessments.
‘‘(B) REPORTS.—The State 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.
‘‘(ii) The number of those children par-
ticipating in alternate assessments.
‘‘(iii) The performance of those chil-
dren on regular assessments (beginning not
later than July 1, 1997) and on alternate
assessments (not later than July 1, 1999), if
doing so would be statistically sound and
would not result in the disclosure of per-
formance results identifiable to individual
children.
‘‘(17) SUPPLEMENTATION OF STATE, LOCAL, AND
OTHER FEDERAL FUNDS.—
‘‘(A) IN GENERAL.—The State ensures that
amounts provided under a grant to the State
under this part, except as provided in subpara-
graph (B), will be used to supplement State,
local, and other Federal funds (including funds
not under the direct control of State or local edu-
cational agencies) expended for special education
and related services, and not to supplant those
funds.
‘‘(B) WAIVER.—The Secretary may waive,
in whole or in part, the requirements of subpara-
graph (A) if the Secretary determines that the
State has provided clear evidence that all chil-
dren with disabilities in the State have available
a free appropriate public education or that, such
a waiver would allow the State to improve the
delivery of special education and related services
to children with disabilities in the State.
‘‘(18) PUBLIC
PARTICIPATION.—Prior to the
adoption of any policies and procedures needed to
comply with this section (including any amendments
to such policies and procedures), the State ensures
that there are public hearings, adequate notice of the
hearings, and an opportunity for comment available
to the general public, including individuals with dis-
abilities and parents of children with disabilities.
‘‘(19) STATE ADVISORY PANEL.—
‘‘(A) IN
GENERAL.—The State has estab-
lished and maintains an advisory panel for the
purpose of providing policy guidance with re-
spect to special education and related services for
children with disabilities in the State.
‘‘(B) MEMBERSHIP.—Such advisory panel
shall consist of members appointed by the Gov-
ernor, or any other official authorized under
State law to make such appointments, that is
representative of the State population and that
is composed of individuals involved in, or con-
cerned with, the education of children with dis-
abilities, including—
‘‘(i) parents of children with disabil-
ities;
‘‘(ii) individuals with disabilities;
‘‘(iii) teachers;
‘‘(ii) comment publicly on any rules or
regulations proposed by the State regard-
ing—
‘‘(I) the education of children with
disabilities; and
‘‘(II) the procedures for distribu-
tion of amounts received by the State
under a grant under this part;
‘‘(iii) advise the State educational
agency in developing evaluations and re-
porting on data to the Secretary under sec-
tion 618;
‘‘(iv) advise the State educational
agency in developing corrective action plans
to address findings identified in Federal
monitoring reports under this part; and
‘‘(v) advise the State educational agen-
cy in developing and implementing policies
relating to the coordination of services for
children with disabilities.
‘‘(b) STATE EDUCATIONAL AGENCY AS PROVIDER OF
FREE APPROPRIATE PUBLIC EDUCATION OR DIRECT SERV-
ICES.—If the State educational agency provides free appro-
priate public education to children with disabilities, or pro-
vides 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 chil-
dren without regard to section 613(a)(2)(A)(i) (relat-
ing to excess costs).
‘‘(c) EXCEPTION FOR PRIOR STATE PLANS.—
‘‘(1) IN GENERAL.—If a State has on file with
the Secretary policies and procedures that dem-
onstrate that such State meets any requirement of
subsection (a), including any policies and procedures
filed under this part as in effect before the date of the
enactment of the IDEA Improvement Act of 1996, the
Secretary shall consider such State to have met such
requirement for purposes of receiving a grant under
this part.
‘‘(2) MODIFICATIONS MADE BY STATE.—Subject
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 sec-
tion shall apply to a modification to an application
to the same extent and in the same manner as this
section applies to the original plan.
‘‘(3) MODIFICATIONS
REQUIRED
BY
THE
SEC-
RETARY.—The Secretary may require a State to
amend its application at any time as a result of the
Secretary’s compliance reviews under parts B and C.
The Secretary shall reduce or shall not provide any
further payments to the State educational agency
until the Secretary is satisfied that the State edu-
cational agency is complying with that requirement.
‘‘(d) APPROVAL BY THE SECRETARY.—
‘‘(1) IN GENERAL.—If the Secretary determines
that a State is eligible to receive a grant under this
part, the Secretary shall notify the State of that deter-
mination.
‘‘(2) NOTICE AND HEARING.—The Secretary shall
not make a final determination that a State is not
eligible to receive a grant under this part until after
providing the State—
‘‘(A) with reasonable notice; and
‘‘(B) with an opportunity for a hearing.
‘‘(e) ASSISTANCE UNDER OTHER FEDERAL PRO-
GRAMS.—Nothing in this title permits a State to reduce
medical and other assistance available, or to alter eligi-
bility, under titles V and XIX of the Social Security Act
with respect to the provision of a free appropriate public
education for children with disabilities within the State.
‘‘(f) BY-PASS FOR CHILDREN IN PRIVATE SCHOOLS.—
‘‘(1) IN GENERAL.—If, on the date of enactment
of the Education of the Handicapped Act Amend-
ments of 1983, a State educational agency is prohib-
ited by law from providing for the participation in
special programs of children with disabilities enrolled
in private elementary and secondary schools as re-
quired by subsection (a)(9), the Secretary shall, not-
withstanding such provision of law, arrange for the
provision of services to such children through arrange-
ments which shall be subject to the requirements of
such subsection.
‘‘(2) PAYMENTS.—
‘‘(A) DETERMINATION OF AMOUNTS.—If the
Secretary arranges for services pursuant to this
subsection, the Secretary, after consultation with
the appropriate public and private school offi-
cials, shall pay to the provider of such services
for a fiscal year an amount per child that does
not exceed the amount determined by dividing—
‘‘(i) the total amount received by the
State under this part for such fiscal year;
by
‘‘(ii) the number of children with dis-
abilities served in the prior year, as re-
ported to the Secretary by the State under
section 618.
‘‘(B) 
WITHHOLDING
OF
CERTAIN
AMOUNTS.—Pending final resolution of any in-
vestigation or complaint that could result in a
determination under this subsection, the Sec-
retary may withhold from the allocation of the
affected State educational agency the amount the
Secretary estimates would be necessary to pay
the cost of services described in subparagraph
(A).
‘‘(C) PERIOD
OF
PAYMENTS.—The period
under which payments are made under subpara-
graph (A) shall continue until the Secretary de-
termines that there will no longer be any failure
or inability on the part of the State educational
agency to meet the requirements of subsection
(a)(9).
‘‘(3) NOTICE AND HEARING.—
‘‘(A) IN GENERAL.—The Secretary shall not
take any final action under this subsection until
the State educational agency affected by such ac-
tion has had an opportunity, for at least 45 days
after receiving written notice thereof, to submit
written objections and to appear before the Sec-
retary or the Secretary’s designee to show cause
why such action should not be taken.
‘‘(B) REVIEW OF ACTION.—If a State edu-
cational agency is dissatisfied with the Sec-
retary’s final action after a proceeding under
subparagraph (A), such agency may, not later
than 60 days after notice of such action, file with
the United States court of appeals for the circuit
in which such State is located a petition for re-
view of that action. A copy of the petition shall
be forthwith transmitted by the clerk of the court
to the Secretary. The Secretary thereupon shall
file in the court the record of the proceedings on
which the Secretary based the Secretary’s action,
as provided in section 2112 of title 28, United
States Code.
‘‘(C) REVIEW OF FINDINGS OF FACT.—The
findings of fact by the Secretary, if supported by
substantial evidence, shall be conclusive, but the
court, for good cause shown, may remand the
case to the Secretary to take further evidence,
and the Secretary may thereupon make new or
modified findings of fact and may modify the
Secretary’s previous action, and shall file in the
court the record of the further proceedings. Such
new or modified findings of fact shall likewise be
conclusive if supported by substantial evidence.
‘‘(D) JURISDICTION OF COURT OF APPEALS;
REVIEW BY UNITED STATES SUPREME COURT.—
Upon the filing of a petition under subpara-
graph (B), the United States court of appeals
shall have jurisdiction to affirm the action of the
Secretary or to set it aside, in whole or in part.
The judgment of the court shall be subject to re-
view by the Supreme Court of the United States
upon certiorari or certification as provided in
section 1254 of title 28, United States Code.
‘‘SEC. 613. LOCAL EDUCATIONAL AGENCY REQUIREMENTS.
‘‘(a) IN GENERAL.—A local educational agency shall
be eligible for assistance under this part for any fiscal year
if, except as provided in subsection (b), such agency submits
to the State educational agency information that dem-
onstrates to the satisfaction of the State educational agency
the following:
‘‘(1) CONSISTENCY WITH STATE POLICIES.—The
local educational agency, in providing for the edu-
cation of children with disabilities within its jurisdic-
tion, has in effect policies, procedures, and programs
that are consistent with the State policies and proce-
dures established under section 612.
‘‘(2) USE OF AMOUNTS.—
‘‘(A) IN
GENERAL.—Amounts provided to
the local educational agency under this part—
‘‘(i) shall be used only to pay the excess
costs of providing special education and re-
lated services to children with disabilities;
‘‘(ii) shall be used to supplement State,
local, and other Federal funds and not to
supplant such funds;
‘‘(iii) except as provided in subpara-
graph (B), may not be used to reduce the
level of expenditures for the education of
children with disabilities made by the local
educational agency from State or local
funds below the level of those expenditures
for the preceding fiscal year;
‘‘(iv) may be used, notwithstanding
clause (i) or any other provision of this
part, for the costs of special education and
related services provided in a regular class
or other education related setting to a child
with a disability in accordance with the
child’s individualized education program,
even if one or more nondisabled children
benefit from those services; and
‘‘(v) may be used, in accordance with
subsection (f) and notwithstanding clause
(i) or any other provision of this part, to
develop and implement a coordinated serv-
ices system.
‘‘(B) EXCEPTION.—Notwithstanding the re-
striction in subparagraph (A)(iii), a local edu-
cation agency may reduce the level of expendi-
tures where such reduction is attributable to—
‘‘(i) the departure, by retirement or
otherwise, of special education personnel;
‘‘(ii) a decrease in the enrollment of
children with disabilities;
‘‘(iii) the termination of the obligation
of the agency, consistent with this part, to
provide a program of special education to a
particular child with a disability that is an
exceptionally costly program, as determined
by the State educational agency, because the
child—
‘‘(I) has left the jurisdiction of the
agency;
‘‘(II) has reached the age at which
the obligation of the agency to provide
a free appropriate public education to
the child has terminated; or
‘‘(III) no longer needs such pro-
gram of special education; or
‘‘(iv) the termination of costly expendi-
tures for long-term purchases, such as the
acquisition of equipment or the construction
of school facilities.
‘‘(3) INFORMATION
FOR
STATE
EDUCATIONAL
AGENCY.—The local educational agency shall provide
the State educational agency with information nec-
essary to enable the State educational agency to carry
out its duties under this part, including, with respect
to paragraphs (14) and (15) of section 612(a), infor-
mation relating to the performance of children with
disabilities participating in programs carried out
under this part.
‘‘(4) PUBLIC
INFORMATION.—The local edu-
cational agency shall make available to parents of
children with disabilities and to the general public all
documents relating to the eligibility of such agency
under this part.
‘‘(b) EXCEPTION FOR PRIOR LOCAL PLANS.—
‘‘(1) IN GENERAL.—If a local educational agency
or State agency has on file with the State educational
agency policies and procedures that demonstrate that
such local educational agency, or such State agency,
as the case may be, meets any requirement of sub-
section (a), including any policies and procedures
filed under this part as in effect before the date of
the enactment of IDEA Improvement Act of 1996, 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 ap-
plication submitted by a local educational agency in
accordance with this section shall remain in effect
until the such agency submits to the State educational
agency such modifications as the local educational
agency deems necessary.
‘‘(3) MODIFICATIONS REQUIRED BY STATE EDU-
CATIONAL
AGENCY.—The State educational agency
may require a local educational agency to amend its
application at anytime as a result of the compliance
reviews of the State educational agency under parts
B and C. This paragraph shall apply to a modifica-
tion to an application to the same extent and in the
same manner as this section applies to the original
plan.
‘‘(c) NOTIFICATION OF LOCAL EDUCATIONAL AGENCY
OR STATE AGENCY IN CASE OF INELIGIBILITY.—If the
State educational agency determines that a local edu-
cational agency or State agency is not eligible under this
section, the State educational agency shall notify such local
educational agency or State agency, as the case may be,
of that determination and shall provide such local edu-
cational agency or State agency with reasonable notice and
an opportunity for a hearing.
‘‘(d) LOCAL EDUCATIONAL AGENCY COMPLIANCE.—
‘‘(1) IN
GENERAL.—If the State educational
agency, after reasonable notice and an opportunity
for a hearing, finds that a local educational agency
or State agency that has been determined to be eligi-
ble under this section is failing to comply with any
requirement described in subsection (a), the State
educational agency shall reduce or shall not provide
any further payments to the local educational agency
or State agency until the State educational agency is
satisfied that the local educational agency or State
agency, as the case may be, is complying with that
requirement.
‘‘(2) ADDITIONAL
REQUIREMENT.—Any State
educational agency, State agency, or local educational
agency in receipt of a notice pursuant to the notice
described in paragraph (1) shall, by means of public
notice, take such measures as may be necessary to
bring the pendency of an action pursuant to this sub-
section to the attention of the public within the juris-
diction 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) IN GENERAL.—A State educational agency
may require a local educational agency to establish
its eligibility jointly with another local educational
agency if the State educational agency determines
that the local educational agency would be ineligible
under this section because the local educational agen-
cy would not be able to establish and maintain pro-
grams of sufficient size and scope to effectively meet
the needs of children with disabilities.
‘‘(2) AMOUNT OF PAYMENTS.—If a State edu-
cational agency requires the joint establishment of eli-
gibility under paragraph (1), the total amount of
funds made available to the affected local educational
agencies shall be equal to the sum of the payments
that each such local educational agency would have
received under section 611(c) if such agencies were el-
igible for such payments.
‘‘(3) REQUIREMENTS.—Local educational agen-
cies that establish joint eligibility under this sub-
section shall—
‘‘(A) adopt policies and procedures that are
consistent with the State’s policies and proce-
dures under section 612(a); and
‘‘(B) be jointly responsible for implementing
programs that receive assistance under this part.
‘‘(4) REQUIREMENTS FOR EDUCATIONAL SERVICE
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—
100
‘‘(i) not apply to the administration
and disbursement of any payments received
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)(4).
‘‘(f) COORDINATED SERVICES SYSTEM.—
‘‘(1) IN GENERAL.—A local educational agency
may not use more than 5 percent of the amount such
agency receives under this part for any fiscal year, in
combination with other amounts (which shall include
amounts other than education funds), to develop and
implement a coordinated services system designed to
improve results for children and families, including
children with disabilities and their families.
‘‘(2) ACTIVITIES.—In implementing a coordi-
nated services system under this subsection, a local
educational agency may carry out activities which
include—
101
‘‘(A) improving the effectiveness and effi-
ciency of service delivery, including developing
strategies that promote accountability for results;
‘‘(B) service coordination and case manage-
ment that facilitates the linkage of individual-
ized education programs under this part and in-
dividualized family service plans under part C
with individualized service plans under multiple
Federal and State programs, such as title I of
the Rehabilitation Act of 1973 (vocational reha-
bilitation), title XIX of the Social Security Act
(Medicaid), and title XVI of the Social Security
Act (supplemental security income);
‘‘(C) developing and implementing inter-
agency financing strategies for the provision of
education, health, mental health, and social serv-
ices, including transition services and related
services under this title; and
‘‘(D) interagency personnel development for
individuals working on coordinated services.
‘‘(3) COORDINATION
WITH
CERTAIN
PROJECTS
UNDER
ELEMENTARY
AND
SECONDARY
EDUCATION
ACT OF 1965.—If a local educational agency is carry-
ing out a coordinated services project under title XI
of the Elementary and Secondary Education Act of
102
1965 and a coordinated services project under this
part in the same schools, such agency shall use
amounts under this subsection in accordance with the
requirements of that title.
‘‘(g) DIRECT SERVICES BY THE STATE EDUCATIONAL
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 related serv-
ices directly to children with disabilities residing in
the area served by that local agency, or for whom that
State agency is responsible, if the State educational
agency determines that the local education agency or
State agency, as the case may be—
‘‘(A) has not provided the information need-
ed to establish the eligibility of such agency
under this section;
‘‘(B) is unable to establish and maintain
programs of free appropriate public education
that meet the requirements of subsection (a);
‘‘(C) is unable or unwilling to be consoli-
dated with one or more local educational agen-
cies in order to establish and maintain such pro-
grams; or
103
‘‘(D) has one or more children with disabil-
ities who can best be served by a regional or
State program or service delivery system de-
signed to meet the needs of such children.
‘‘(2) MANNER AND LOCATION OF EDUCATION AND
SERVICES.—The State educational agency may pro-
vide special education and related services under
paragraph (1) in such manner and at such locations
(including regional or State centers) as the State
agency considers appropriate. Such education and
services shall be provided in accordance with this
part.
‘‘(h) STATE AGENCY ELIGIBILITY.—Any State agency
that desires to receive a subgrant for any fiscal year under
section 611(c) shall demonstrate to the satisfaction of the
State educational agency that—
‘‘(1) all children with disabilities who are par-
ticipating in programs and projects funded under this
part receive a free appropriate public education, and
that those children and their parents are provided all
the rights and procedural safeguards described in this
part; and
‘‘(2) the agency meets such other conditions of
this section as the Secretary determines to be appro-
priate.
104
‘‘SEC. 614. EVALUATIONS, REEVALUATIONS, INDIVIDUAL-
IZED 
EDUCATION 
PROGRAMS, 
AND 
EDU-
CATIONAL PLACEMENTS.
‘‘(a) EVALUATIONS AND REEVALUATIONS.—
‘‘(1) INITIAL EVALUATIONS.—
‘‘(A) IN
GENERAL.—A State educational
agency, other State agency, or local educational
agency shall conduct an initial evaluation, in
accordance with this paragraph and subsection
(b), before the initial provision of special edu-
cation and related services to a child with a dis-
ability under this part.
‘‘(B) PROCEDURES.—Such initial evalua-
tion shall consist of procedures—
‘‘(i) to determine whether a child is a
child with a disability (as defined in sec-
tion 602(3)); and
‘‘(ii) to determine the educational
needs of such child.
‘‘(C) PARENTAL CONSENT.—
‘‘(i) IN GENERAL.—The agency propos-
ing to conduct an initial evaluation to de-
termine if the child qualifies as a child with
a disability as defined in section 602(3)(A)
or 602(3)(B) shall obtain an informed con-
sent from the parent of such child before the
105
evaluation is conducted. Parental consent
for evaluation shall not be construed as con-
sent for placement for receipt of special edu-
cation and related services.
‘‘(ii) REFUSAL.—If the parents of such
child refuse consent for the evaluation, the
agency may continue to pursue an evalua-
tion by utilizing the mediation and due
process procedures under section 615(e).
‘‘(2) 
REEVALUATIONS.—A 
local 
educational
agency shall ensure that a reevaluation of each child
with a disability is conducted—
‘‘(A) if conditions warrant a reevaluation
or if the child’s parent or teacher requests a re-
evaluation, but at least once every 3 years; and
‘‘(B) in accordance with subsections (b) and
(c).
‘‘(b) EVALUATION PROCEDURES.—
‘‘(1) NOTICE.—The local educational agency
shall provide notice to the parents of a child with a
disability, in accordance with subsections (b)(3),
(b)(4), and (c) of section 615, that describes any eval-
uation procedures such agency proposes to conduct.
‘‘(2) CONDUCT OF EVALUATION.—In conducting
the evaluation, the local educational agency shall—
106
‘‘(A) use a variety of assessment tools and
strategies to gather relevant functional and de-
velopmental information, including information
provided by the parent, that may assist in deter-
mining whether the child is a child with a dis-
ability and the content of the child’s individual-
ized education program, including information
related to enabling the child to be involved in
and progress in the general curriculum or, for
preschool children, to participate in appropriate
activities;
‘‘(B) not use any single procedure as the
sole criterion for determining whether a child is
a child with a disability or determining an ap-
propriate educational program for the child; and
‘‘(C) use technically sound instruments that
may assess the relative contribution of cognitive
and behavioral factors, in addition to physical
or developmental factors.
‘‘(3) ADDITIONAL
REQUIREMENTS.—Each local
educational agency shall ensure that—
‘‘(A) tests and other evaluation materials
used to assess a child under this section—
107
‘‘(i) are selected and administered so
as not to be discriminatory on a racial or
cultural basis; and
‘‘(ii) are provided and administered in
the child’s native language or other mode of
communication, unless it is clearly not fea-
sible to do so; and
‘‘(B) any standardized tests that are given
to the child—
‘‘(i) have been validated for the specific
purpose for which they are used;
‘‘(ii) are administered by qualified
personnel; and
‘‘(iii) are administered in accordance
with any instructions provided by the pro-
ducer of such tests; and
‘‘(C) the child is assessed in all areas of sus-
pected disability.
‘‘(4) DETERMINATION
OF
ELIGIBILITY.—Upon
completion of administration of tests and other eval-
uation materials—
‘‘(A) the determination of whether the child
is a child with a disability as defined in section
602(3) or section 602(3)(B) will be made by a
108
team of qualified professionals and the parent of
the child in accordance 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 based on any
of the following:
‘‘(A) Lack of instruction, including instruc-
tion in reading or math.
‘‘(B) Limited English proficiency.
‘‘(C) Cultural or environmental factors.
‘‘(D) Economic disadvantage.
‘‘(c) REEVALUATION PROCEDURES.—
‘‘(1) IN GENERAL.—As part of any reevaluation
to assess a child under this section, the individualized
education program team and other qualified profes-
sionals, as appropriate, shall—
‘‘(A) review existing evaluation data on the
child, including current classroom-based assess-
ments and teacher and related services providers
observation; and
109
‘‘(B) on the basis of that review and input
from the child’s parents, identify what addi-
tional data, if any, are needed to determine—
‘‘(i) whether the child continues to have
a 
disability, 
as 
described 
in 
section
602(3)(A)(i) or section 602(3)(B);
‘‘(ii) the child’s present levels of per-
formance and educational needs; and
‘‘(iii)(I) whether the child continues to
need special education and related services;
and
‘‘(II) if so, any additions or modifica-
tions to the special education and related
services to enable the child to meet the objec-
tives set out in the individualized education
program of the child and to participate, as
appropriate, in the general curriculum.
‘‘(2) TESTS
AND
OTHER
EVALUATION
MATE-
RIALS.—The local educational agency shall admin-
ister such tests and other evaluation materials as may
be needed to produce the data identified by the IEP
Team under paragraph (1)(B).
‘‘(3) REQUIREMENTS IF ADDITIONAL DATA NOT
NEEDED.—If the IEP Team and other qualified pro-
fessionals, as appropriate, determines that no addi-
110
tional data are needed to determine whether the child
continues to be a child with a disability, the local
educational agency—
‘‘(A) shall notify the child’s parents of—
‘‘(i) that determination and the rea-
sons for it; and
‘‘(ii) the right of such parents to re-
quest an assessment to determine whether
the child continues to be a child with a dis-
ability; and
‘‘(B) shall not be required to conduct such
an assessment unless requested to by the child’s
parents.
‘‘(d) INDIVIDUALIZED EDUCATION PROGRAMS.—
‘‘(1) REQUIREMENT THAT PROGRAM BE IN EF-
FECT.—
‘‘(A) IN
GENERAL.—At the beginning of
each school year, each local educational agency,
or State educational agency, as the case may be,
shall have in effect, for each child with a disabil-
ity in its jurisdiction, an individualized edu-
cation program, as defined in section 602(11).
‘‘(B) PROGRAM FOR CHILD AGED 3 TO 5.—
In the case of a child with a disability aged 3
to 5, inclusive, an individualized family service
111
plan that contains the material described in sec-
tion 636, and that is developed in accordance
with this section, may serve as the IEP of the
child if using that plan as the IEP is—
‘‘(i) consistent with State policy; and
‘‘(ii) agreed to by the agency and the
child’s parents.
‘‘(2) DEVELOPMENT OF IEP.—
‘‘(A) IN GENERAL.—An individualized edu-
cation program team shall develop the IEP de-
scribed in paragraph (1). In developing such
IEP, the IEP Team, subject to subparagraph
(B), shall—
‘‘(i) consider the child’s strengths and
the parents’ concerns for enhancing their
child’s education;
‘‘(ii) consider the results of the initial
evaluation or most recent reevaluation;
‘‘(iii) in the case of a child whose be-
havior impedes his or her learning or that
of others, consider, when appropriate, strat-
egies, including positive behavior manage-
ment interventions and strategies to help
the child behave in an appropriate and re-
sponsible manner conducive to learning;
112
‘‘(iv) in the case of a child with lim-
ited English proficiency, consider the lan-
guage needs of the child as such needs relate
to the child’s IEP;
‘‘(v) in the case of a child who is blind
or visually impaired, provide for instruc-
tion in braille and the use of braille unless
all members of the IEP Team concur that,
after an evaluation of the child’s reading
and writing skills, needs, and appropriate
reading and writing media (including an
evaluation of the child’s future needs for in-
struction in braille or the use of braille), in-
struction in braille or the use of braille is
not appropriate for the child;
‘‘(vi) 
consider 
the 
communication
needs of the child, and in the case of a child
who is deaf, hard-of-hearing, blind, or com-
municatively disabled, consider the lan-
guage and communication needs of the
child; and
‘‘(vii) consider whether the child re-
quires assistive technology services or de-
vices.
113
‘‘(B) REQUIREMENT
WITH
RESPECT
TO
REGULAR
EDUCATION
TEACHER.—The regular
education teacher of the child, as a member of
the IEP Team, shall, to the extent appropriate,
participate in the development of the IEP of the
child, including the determination of appro-
priate behavior-management techniques consist-
ent with subparagraph (A)(iii) of this para-
graph, and the determination of supplementary
aids and services, program modifications, and
support for school personnel consistent with sec-
tion 602(11)(E).
‘‘(3) REVIEW AND REVISION OF IEP.—
‘‘(A) IN GENERAL.—The local educational
agency shall ensure that, subject to subpara-
graphs (B) and (C), the IEP Team—
‘‘(i) reviews each IEP at least once a
year to determine whether the annual objec-
tives for the child are being achieved; and
‘‘(ii) revises the IEP to address—
‘‘(I) any lack of expected progress
toward the annual objectives and in
the general curriculum, where appro-
priate;
114
‘‘(II) the results of any reevalua-
tion conducted under this section;
‘‘(III) information about the child
provided to, or by, the parents, as de-
scribed in section 602(11)(F)(ii); or
‘‘(IV) the child’s anticipated needs
as otherwise appropriate.
‘‘(B) CERTAIN
CHILDREN
WITH
DISABIL-
ITIES.—
‘‘(i) IN GENERAL.—In the case of a
child with a disability who has dem-
onstrated a pattern of behavior that signifi-
cantly impairs the education of the child, or
the education of the classmates of the child,
and the ability of the teacher of the child to
teach, if such teacher initiates or requests
an IEP meeting, then the appropriate au-
thority shall convene an IEP meeting to re-
view the child’s educational program, relat-
ed services, supplementary aids and serv-
ices, and placement.
‘‘(ii) REVIEW OF IEP.—In carrying out
a review of the IEP of the child, the IEP
Team shall determine—