An Act To Reorganize the Provision of Services for Infants, Toddlers and Children with Disabilities from Birth to 6 Years of Age and Extend the Age of Eligibility under the Federal Individuals with Disabilities Education Act to 22 Years of Age Reported by Eight Members in Report A from the Joint Standing Committee on Education and Cultural Affairs pursuant to Resolve 2021, chapter 106, section 3.
Maine Legislature, Session 130, LD 2039
Amends: 5 MRSA §285, 5 MRSA §12004-C, 20-A MRSA §7105, 5 MRSA §12021, 5 MRSA §24051, 5 MRSA §24052, 20-A MRSA §1001, 20-A MRSA §5201, 20-A MRSA §6202, 20-A MRSA §7001, 20-A MRSA §7006, 20-A MRSA §7008, 20-A MRSA §7201, 20-A MRSA §7201-A, 20-A MRSA §7202, 20-A MRSA §7203-A, 20-A MRSA §7204, 20-A MRSA §7209, 20-A MRSA §7210, 20-A MRSA §7211, 20-A MRSA §7252-A, 20-A MRSA §7252-B, 22 MRSA §1532, 22 MRSA §3174-P, 22 MRSA §3922, 22 MRSA §3931, 22 MRSA §8301-A, 22 MRSA §8824, 22 MRSA §8943

Legislative Document
No. 2039
H.P. 1531
House of Representatives, April 18, 2022
An Act To Reorganize the Provision of Services for Infants, 
Toddlers and Children with Disabilities from Birth to 6 Years of 
Age and Extend the Age of Eligibility under the Federal Individuals 
with Disabilities Education Act to 22 Years of Age
Reported by Eight Members in Report A from the Joint Standing Committee on Education 
and Cultural Affairs pursuant to Resolve 2021, chapter 106, section 3.
ROBERT B. HUNT
Clerk
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §285, sub-§1, ¶F-7, as corrected by RR 2009, c. 1, §5, is amended 
to read:
F-7.  Any Before July 1, 2026, any employee of a regional site of the Child 
Development Services System under Title 20‑A, section 7209, if the group health plan 
is agreed to in collective bargaining and funds are available and, beginning July 1, 
2026, any employee of the state intermediate educational unit under Title 20-A, section 
7104, if the group health plan is agreed to in collective bargaining and funds are 
available;
Sec. 2.  5 MRSA §12004-C, sub-§10 is enacted to read:
10.   
Board of directors, state intermediate 
educational unit 
Expenses Only 
20-A MRSA §7105 
Sec. 3.  5 MRSA §12021, sub-§6, ¶A, as enacted by PL 2011, c. 616, Pt. A, §1, is 
amended to read:
A.  The Before July 1, 2026, the Child Development Services System under Title 20‑A, 
section 7209 and, beginning July 1, 2026, the state intermediate educational unit under 
Title 20-A, section 7104;
Sec. 4.  5 MRSA §24051, sub-§3, ¶H, as enacted by PL 2019, c. 450, §11, is 
amended to read:
H.  Three persons representing statewide, membership or constituent organizations that 
advance the well‑being of young children and their families, including early care and 
education programs, child care centers, Head Start programs, resource development 
centers, programs for school-age children, child development services the state 
intermediate educational unit, physicians and child advocates, nominated by their 
organizations and appointed by the cabinet;
Sec. 5.  5 MRSA §24052, sub-§1, ¶D, as enacted by PL 2019, c. 450, §11, is 
amended by amending subparagraph (3) to read:
(3)  Enhance and improve quality and outcomes of early childhood and education 
programs and services, including child development services the state intermediate 
educational unit, home visitation, child care, education services, supervision 
services, health services and social services; and
Sec. 6.  20-A MRSA §1001, sub-§9-B, as amended by PL 2005, c. 662, Pt. A, §6, 
is further amended to read:
9-B.  Disciplinary sanctions for children with disabilities.  They retain the authority 
to sanction a child with a disability as defined in section 7001, subsection 1‑A for 
misconduct that violates school rules.  Notwithstanding the duties of school administrative 
units as described in section 7202, the school board may authorize the superintendent, 
principal or assistant principal to enforce this subsection by allowing the superintendent, 
principal or assistant principal to suspend a child with a disability up to a maximum of 10 
days individually or cumulatively for infractions of school rules.  When a child with a 
disability is suspended for 10 days or less individually or cumulatively within a school year 
for a violation of school rules, the school board is not required to provide a tutor, 
transportation or any other aspect of the student's special education program.  Discipline of 
children with disabilities must be consistent with the requirements of the federal 
Individuals with Disabilities Education Act, 20 United States Code, Section 1415(k). 
Beginning July 1, 2026, this subsection applies to a child with a disability as defined in 
section 7201-A, subsection 1.
Sec. 7.  20-A MRSA §5201, sub-§3, ¶E, as amended by PL 2005, c. 662, Pt. A, 
§12, is further amended to read:
E.  The Before July 1, 2026, the eligibility for a child with a disability is governed by 
section 7001, subsection 1‑A. Beginning July 1, 2026, the eligibility for a child with a 
disability is governed by section 7201-A, subsection 1.
Sec. 8.  20-A MRSA §6202, first ¶, as amended by PL 2021, c. 462, §1, is further 
amended to read:
The commissioner shall establish a statewide assessment program to measure and 
evaluate on a continuing basis the academic achievements of students in grades 3 to 12 on 
the accountability standards set forth in section 6209 and in department rules implementing 
that section and other curricular requirements.  The commissioner may elect to provide for 
the use of alternative measures of student achievement in grades 9 to 12.  This assessment 
applies to students in the public elementary and secondary schools, in public charter 
schools, as that term is defined in section 2401, subsection 9, and in all private schools 
approved for tuition whose school enrollments include at least 60% publicly funded 
students, as determined by the previous school year's October and April average 
enrollment.  The Before July 1, 2026, the assessment program must be adapted to meet the 
needs of children with disabilities as defined in section 7001, subsection 1‑A or other 
students as defined under rules by the commissioner.  The assessment program may not 
include the use of the standardized test known as "the SAT" as a method for assessing 
student performance. Beginning July 1, 2026, the assessment program must be adapted to 
meet the needs of children with disabilities as defined in section 7201-A, subsection 1 or 
other students as defined under rules adopted by the commissioner.
Sec. 9.  20-A MRSA §7001, sub-§1-B, ¶B, as amended by PL 2011, c. 542, Pt. A, 
§21, is further amended to read:
B.  For children at least 3 years of age and under 20 22 years of age evaluated in 
accordance with the federal Individuals with Disabilities Education Act, 20 United 
States Code, Section 1414, subsections (a) to (c) as measured by both standardized, 
norm-referenced diagnostic instruments and appropriate procedures with delays or 
impairments such that the children need special education:
(1)  A child at least 3 years of age and under 6 years of age with a significant 
developmental delay, at the discretion of the intermediate educational unit or 
school administrative unit, as defined in rules adopted by the department, in one or 
more of the following areas:  cognitive development; physical development, 
including vision and hearing; communication development; social or emotional 
development; adaptive development; or
(2)  A child with at least one of the following:
(a)  Intellectual disability;
(b)  Hearing impairment, including deafness;
(c)  Speech or language impairment;
(d)  Visual impairment, including blindness;
(e)  Serious emotional disturbance;
(f)  Orthopedic impairment;
(g)  Autism;
(h)  Traumatic brain injury;
(i)  Other health impairment;
(j)  Specific learning disabilities;
(k)  Deafness and blindness; and
(l)  Multiple disabilities.
This paragraph is repealed July 1, 2024.
Sec. 10.  20-A MRSA §7001, sub-§2-A, as amended by PL 2011, c. 477, Pt. F, §1, 
is further amended by enacting a new first blocked paragraph to read:
This subsection is repealed July 1, 2024.
Sec. 11.  20-A MRSA §7006, as enacted by PL 2005, c. 662, Pt. A, §20, is repealed.
Sec. 12.  20-A MRSA §7008 is enacted to read:
§7008.  Repeal
This chapter is repealed July 1, 2026.
Sec. 13.  20-A MRSA c. 301-A is enacted to read:
CHAPTER 301-A
EARLY INTERVENTION SERVICES
§7101.  Purpose and commitment
The purpose of this chapter is to implement Part C of the federal Individuals with 
Disabilities Education Act, 20 United States Code, Section 1400 et seq. The State is 
committed to ensuring that all eligible infants and toddlers with disabilities are identified, 
evaluated and provided with the early intervention services selected by their individualized 
family services plan teams and described in their individualized family services plans.
§7102.  Definitions
As used in this chapter, the following terms have the following meanings.
1. Birth to under 3 years of age. "Birth to under 3 years of age" means from the day 
a child is born until the child's 3rd birthday.
2. Board. "Board" means the board of directors established under section 7105.
3. Early intervention services.  Beginning July 1, 2026, "early intervention services" 
means developmental services that are provided under public supervision; 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; are designed to meet the developmental needs of an 
infant or toddler with a disability, as identified by the individualized family services plan 
team, in one or more areas, including physical development, cognitive development, 
communication development, social or emotional development and adaptive development; 
meet the standards of the State; are provided by qualified personnel; to the maximum extent 
appropriate, are provided in natural environments, including the home, and community 
settings in which infants or toddlers without disabilities participate; and are provided in 
conformity with an individualized family services plan.
4. Infant or toddler with a disability. Beginning July 1, 2026, "infant or toddler with 
a disability" means a child from birth to under 3 years of age:
A.  Who needs early intervention services because the child has a significant 
developmental delay, as measured by both diagnostically appropriate instruments and 
procedures, in one or more of the following areas: cognitive development; physical 
development, including vision and hearing; communication development; social or 
emotional development; and adaptive development; or
B.  With a diagnosed physical or mental condition that has a high probability of 
resulting in a developmental delay, with the condition being such that the child needs 
early intervention services.
5. Individualized family services plan. "Individualized family services plan" means 
the plan to provide services in accordance with Part C to an infant or toddler with a 
disability or to the infant's or toddler's family.
6. Individualized family services plan team.  "Individualized family services plan 
team" means the group of individuals composed in accordance with Part C of the federal 
Individuals with Disabilities Education Act, 20 United States Code, Section 1400 et seq. to 
determine the individualized family services plan for an infant or toddler with a disability. 
7. Part B. "Part B" means Part B of the federal Individuals with Disabilities Education 
Act, 20 United States Code, Section 1400 et seq.
8. Part C. "Part C" means Part C of the federal Individuals with Disabilities Education 
Act, 20 United States Code, Section 1400 et seq.
9. State intermediate educational unit. "State intermediate educational unit" or 
"SIEU" means the state intermediate educational unit established in section 7104.
§7103.  Department duties
The department shall: 
1. Lead agency. Beginning July 1, 2026, serve as the lead agency for the statewide 
system pursuant to 20 United States Code, Section 1435, including the identification and 
coordination of all available resources within the State for services to eligible infants and 
toddlers with disabilities from birth to under 3 years of age and their families;
2. Part C coordinator.  Appoint a coordinator of Part C services;
3. Monitoring and oversight. Beginning July 1, 2026, ensure through regular, 
comprehensive monitoring and oversight of the SIEU that:
A. Appropriate early intervention services based on scientifically based research, to the 
extent practicable, are available to all infants and toddlers with disabilities and their 
families, including Indian infants and toddlers with disabilities and their families 
residing on a reservation geographically located in the State and infants and toddlers 
with disabilities who are homeless children and their families;
B. A comprehensive child find system that meets the requirements of Part C is available 
throughout the State;
C. A timely, multidisciplinary evaluation of the functioning of each infant and toddler 
with a disability and a family-directed identification of the needs of each family of such 
an infant or toddler to assist appropriately in the development of the infant or toddler 
are conducted;
D. Each infant or toddler with a disability has an individualized family services plan, 
developed in accordance with Part C, including service coordination in accordance 
with the plan;
E. To the maximum extent appropriate, early intervention services are provided in 
natural environments and that the provision of early intervention services for an infant 
or toddler with a disability that occurs in a setting other than a natural environment that 
is most appropriate, as determined by the parent and the individual family services plan 
team, occurs only when early intervention cannot be achieved satisfactorily for the 
infant or toddler in the natural environment; and
F. Parents are provided with procedural safeguards in accordance with Part C;
4. Application. Submit an annual application to the United States Department of 
Education for a Part C grant and include in its annual application a policy for the extended 
Part C option described by 34 Code of Federal Regulations, Part 303 under which a parent 
of a child with a disability who is eligible for preschool services pursuant to Part B and 
who previously received early intervention services pursuant to Part C may decline the 
right to an individualized education plan and a free, appropriate public education in order 
to choose the continuation of early intervention services from 3 years of age until the 
beginning of the school year following the child's 3rd birthday; 
5. Funding mechanism. Develop and maintain a funding mechanism for the SIEU. 
The funding mechanism must maximize billing through private insurance and the 
MaineCare program. The department shall require the SIEU to enter into a subgrantee 
agreement with the department that makes the distribution of federal Part C and state funds 
contingent on the delivery of early intervention services in accordance with the agreement;
6. Financial oversight of SIEU. Provide monitoring and oversight of fiscal activities 
of the SIEU;
7. Interagency agreements. Enter into interagency agreements, including agreements 
that define the financial responsibility of each agency for paying for early intervention 
services and procedures for resolving interagency disputes;
8. Interagency coordinating council. Establish and support a state interagency 
coordinating council in accordance with Part C;
9. Personnel development. Develop and implement a comprehensive system of 
personnel development, including the training of paraprofessionals and the training of 
primary referral sources with respect to the basic components of early intervention services 
available in the State;
10. Public awareness program. Develop and implement a public awareness program 
focusing on early identification of infants and toddlers with disabilities and disseminate to 
all primary referral sources, especially hospitals and physicians, information to be given to 
parents, especially to parents with premature infants or infants with other physical risk 
factors associated with learning or developmental complications, on the availability of 
early intervention services pursuant to Part C and this chapter as well as procedures for 
assisting such sources in disseminating such information to parents of infants and toddlers 
with disabilities; and
11. Rules. Develop and adopt rules necessary to carry out Part C and this chapter, 
including, but not limited to, rules regarding:
A. A rigorous definition of the term "developmental delay";
B. Child find;
C. Multidisciplinary assessment and family-directed assessment;
D. The role of the individualized family services plan team;
E. Development, implementation and periodic review of the individualized family 
services plan;
F. Procedural safeguards; and
G. Qualifications for all personnel involved in Part C including early intervention 
service providers.
Rules developed and adopted pursuant to this subsection are major substantive rules as 
defined in Title 5, chapter 375, subchapter 2-A. 
§7104.  State intermediate educational unit
The state intermediate educational unit is established as a body corporate and politic 
and as a public instrumentality of the State for the purpose of identifying, evaluating and 
providing early intervention services to eligible infants and toddlers with disabilities from 
birth to under 3 years of age and their families pursuant to this chapter. The exercise by the 
SIEU of the powers conferred by this chapter is the performance of an essential public 
function by and on behalf of the State.
§7105.  Board of directors
The board of directors is established in Title 5, section 12004-C, subsection 10 as the 
policy-making authority and the governing body of the SIEU. 
1. Membership.  In appointing members to the board, the Governor shall give proper 
consideration to achieving statewide geographical representation, cultural equity and 
gender equity. Each member appointed by the Governor is subject to review by the joint 
standing committee of the Legislature having jurisdiction over education matters and 
confirmation by the Senate. The board consists of 13 voting members and 3 nonvoting 
members as follows:
A. The Commissioner of Education or the commissioner's designee;
B. The Commissioner of Health and Human Services or the commissioner's designee;
C. Three members who are parents of infants and toddlers with disabilities who are 
accessing or have accessed Part C services;
D. Two members who are providers of early intervention services;
E. One representative of the state interagency coordinating council;
F. One representative from a private preschool;
G. One representative from a public prekindergarten program;
H. Three members of the general public;
I. Two employees of the SIEU who are selected by the executive director of the SIEU 
and are nonvoting members; and
J. The executive director of the SIEU, who serves as the clerk of the board and is a 
nonvoting member.
2. Term.  Each member of the board appointed by the Governor serves for a term of 3 
years. Appointed board members may serve no more than 3 consecutive terms.
3. Chair.  The board shall elect a chair annually from among its members. A member 
may not serve more than 2 consecutive terms as chair.
4. Meetings.  The board shall meet at least quarterly.
§7106.  Administrative and programmatic functions
1. Administrative functions. The powers and duties of the board include the following 
administrative functions. The board:
A. Shall develop and adopt policies, including bylaws, necessary or useful for the 
operation of the SIEU;
B. Shall develop and adopt policies necessary or useful for the implementation of Part 
C and any related department regulations;
C. May delegate duties and responsibilities as necessary for the efficient operation of 
the SIEU;
D. Shall hire an executive director;
E. Shall appoint a treasurer, who need not be a member of the board, and accept 
donations, bequests or other forms of financial assistance for any educational purpose 
from a public or private person or agency and comply with rules and regulations 
governing grants from the Federal Government or from any other person or agency;
F. Shall prepare and adopt an annual budget for the operation of the SIEU and exercise 
budgetary responsibility and allocate for expenditure by the SIEU all the resources 
available for the operation of the SIEU and its programs;
G. Shall employ professional and other personnel at the state level and regional levels, 
including those necessary to ensure the implementation of the centralized fiscal and 
data management systems.  All SIEU employees are employees for the purposes of the 
Maine Tort Claims Act;
H. Shall establish standards for a statewide salary and benefits administration system, 
including personnel classifications, position descriptions and salary ranges, and a 
standard package of health, retirement and other fringe benefits for SIEU employees;
I. Shall develop and implement a statewide salary and benefits administration system 
and perform the payroll functions for SIEU employees;  
J. Shall bargain collectively under Title 26, chapter 9‑A if the employees of the SIEU 
choose to be represented by an agent for purposes of collective bargaining.  In such 
circumstances, the SIEU must be considered a public employer for purposes of 
collective bargaining;
K. Shall develop and implement a centralized system for statewide fiscal 
administration. The SIEU shall establish internal controls and implement accounting 
policies and procedures in accordance with standards set forth by the State Controller;
L. Shall indemnify the directors, officers and employees affiliated with the SIEU and 
purchase and maintain insurance to indemnify any such person to the extent provided 
in Title 13‑B, section 714;
M. May collect any fees or costs permitted by Part C and established by department 
rule;
N. Shall submit quarterly financial statements to the commissioner, the joint standing 
committee of the Legislature having jurisdiction over education matters and the joint 
standing committee of the Legislature having jurisdiction over appropriations and 
financial affairs;
O. Shall develop and implement a centralized data management system in accordance 
with Part C; 
P. Shall design and implement a standard, statewide template for contracts with service 
providers, including policies and procedures for the review of contracts;
Q. Shall design and implement a statewide plan to provide professional development 
and training to SIEU personnel;
R. May enter into contracts, leases and agreements and any other instruments and 
arrangements that are necessary, incidental or convenient to the performance of its 
duties and the execution of its powers under this chapter; 
S. May sue or be sued in the name of the SIEU; and
T. May perform any other act necessary or useful for carrying out its powers, duties or 
purposes.
2.  Programmatic functions. Beginning July 1, 2026, the powers and duties of the 
board include the following programmatic functions. The board shall:
A. Engage in child find activities as required by Part C; 
B. Engage in child count activities as required by Part C;
C. Evaluate potentially eligible infants and toddlers and their families and, using a 
properly constituted individualized family services plan team, determine eligibility for 
early intervention services as required by Part C;
D. Develop, using a properly constituted individualized family services plan team, an 
individualized family services plan for every eligible infant and toddler with a 
disability as required by Part C;
E. Ensure that eligible infants and toddlers with disabilities and their families receive 
the early intervention services contained in their individualized family services plans, 
either by providing the services directly or by contracting with qualified service 
providers as defined by department rule; 
F. Ensure that children with disabilities who are eligible for preschool services pursuant 
to Part B and who previously received early intervention services pursuant to Part C 
may decline the right to access a free, appropriate public education and may continue 
to receive early intervention services from 3 years of age until the beginning of the 
school year following the child's 3rd birthday if the parent chooses to continue to 
receive services pursuant to Part C instead of transitioning to receiving services 
pursuant to Part B in accordance with the federal extended Part C option described by 
Code of Federal Regulations, Part 303;
G. Coordinate with the receiving Part B school administrative units to ensure that 
infants and toddlers with disabilities are identified as potentially eligible for Part B 
services;
H. Ensure that parents are provided with procedural safeguards as required by Part C; 
and
I. Ensure that infants and toddlers and their families who are referred to the SIEU also 
receive appropriate referrals for support outside of the Part C program, including 
appropriate public and private programmatic resources, regardless of their eligibility 
for early intervention services.
§7107.  Executive director
1. Employment. The board shall hire an executive director who is qualified by training 
or experience.
2. Duties and responsibilities. The executive director shall:
A. Perform the duties prescribed for the executive director by the board;
B. Hire and supervise SIEU staff;
C. Ensure SIEU staff meet all certification and licensure requirements; and
D. Report annually to the joint standing committee of the Legislature having 
jurisdiction over early childhood education matters.
Sec. 14.  20-A MRSA §7201, sub-§2-A, as enacted by PL 2005, c. 662, Pt. A, §22, 
is amended to read:
2-A.  Natural or least restrictive environment.  To the maximum extent appropriate:
A.  Early intervention services must be provided in natural environments, including the 
home, and community settings in which children from birth to under 3 years of age 
without disabilities participate; and.
This paragraph is repealed July 1, 2026; and
B.  Children with disabilities at least 3 years of age and under 20 22 years of age, 
including children in public or private institutions or other care facilities, must be 
educated with children without disabilities.  Special classes, separate schooling or other 
removal of children with disabilities from the regular educational environment may 
occur only when the nature or severity of the disability of a child is such that education 
in regular classes with the use of supplementary aids and services cannot be achieved 
satisfactorily.
Sec. 15.  20-A MRSA §7201-A is enacted to read:
§7201-A.  Definitions
Beginning July 1, 2024, as used in this chapter, the following terms have the following 
meanings.
1. Child with a disability.  "Child with a disability" means a child at least 3 years of 
age and under 22 years of age evaluated in accordance with the federal Individuals with 
Disabilities Education Act, 20 United States Code, Section 1414, subsections (a) to (c) as 
measured by both standardized, norm-referenced diagnostic instruments and appropriate 
procedures with delays or impairments such that the child needs special education, if the 
child is:
A.  A child at least 3 years of age and under 6 years of age with a significant 
developmental delay, at the discretion of the school administrative unit, as defined in 
rules adopted by the department, in one or more of the following areas: 
(1) Cognitive development; 
(2) Physical development, including vision and hearing;
(3) Communication development;
(4) Social or emotional development; or 
(5) Adaptive development; or
B. A child with at least one of the following:
(1) Intellectual disability;
(2) Hearing impairment, including deafness;
(3) Speech or language impairment;
(4) Visual impairment, including blindness;
(5) Serious emotional disturbance;
(6) Orthopedic impairment;
(7) Autism;
(8) Traumatic brain injury;
(9) Other health impairment;
(10) Specific learning disabilities;
(11) Deafness and blindness; and
(12) Multiple disabilities.
2. Free, appropriate public education.  "Free, appropriate public education" means 
special education and related services that:
A. Are provided at public expense, under public supervision and direction and without 
charge;
B. Meet the standards of the department;
C. Include an appropriate preschool, elementary school or secondary school education 
in the State; and
D. Are provided in conformity with the individualized education program.
3. Three years of age to under 6 years of age. "Three years of age to under 6 years 
of age" means from a child's 3rd birthday until the child's 6th birthday.
4.  Three years of age to under 22 years of age. "Three years of age to under 22 years 
of age" means from a child's 3rd birthday until the child's 22nd birthday.
Sec. 16.  20-A MRSA §7202, sub-§1, as enacted by PL 1981, c. 693, §§5 and 8, is 
amended to read:
1.  Identification.  Identify all children from 3 years of age to under 22 years of age 
within its jurisdiction who require special education;
Sec. 17.  20-A MRSA §7202, sub-§3, as amended by PL 2005, c. 662, Pt. A, §23, 
is further amended to read:
3.  Diagnosis and evaluation.  Provide the evaluations and assessments required by 
the federal Individuals with Disabilities Education Act, 20 United States Code, Section 
1400 et seq., as amended, to plan and implement a special education program for children 
with disabilities at least 3 years of age and under 20 22 years of age within its jurisdiction;
Sec. 18.  20-A MRSA §7203-A is enacted to read:
§7203-A.  Responsibility
The department is designated as the state education agency responsible for carrying out 
the State's obligations under the federal Individuals with Disabilities Education Act, 20 
United States Code, Section 1400 et seq., as amended. The department and every school 
administrative unit, intermediate educational unit, public school or other public agency that 
receives federal or state funds to provide early intervention or free, appropriate public 
education services to children with disabilities shall comply with the federal Individuals 
with Disabilities Education Act, as amended, and all federal regulations adopted under the 
Act.
Sec. 19.  20-A MRSA §7204, sub-§4, as amended by PL 2005, c. 662, Pt. A, §25, 
is further amended to read:
4.  Program approval.  Shall Before July 1, 2026, shall approve plans for all early 
intervention and special education programs and, beginning July 1, 2026, shall approve 
plans for special education programs.  The criteria for approval must include:
A.  Requirements for admission;
B.  Qualification or certification of staff;
C.  Plan of instruction;
D.  Adequacy of facilities;
E.  Adequacy of supportive services;
F.  Professional supervision; and
G.  Teacher-student ratio;
Sec. 20.  20-A MRSA §7209, sub-§9 is enacted to read:
9.  Transition to school administrative units for children from 3 years of age to 
under 6 years of age.  Notwithstanding any provision of this section to the contrary, 
beginning July 1, 2024, school administrative units are responsible for child find and the 
provision of free, appropriate public education for children with disabilities from 3 years 
of age to under 6 years of age in accordance with section 7211.
Sec. 21.  20-A MRSA §7209, sub-§10 is enacted to read:
10.  Repeal.  This section is repealed July 1, 2026.
Sec. 22.  20-A MRSA §7210, as amended by PL 2005, c. 662, Pt. A, §30, is further 
amended by enacting at the end a new paragraph to read:
This section is repealed July 1, 2026.
Sec. 23.  20-A MRSA §7211 is enacted to read:
§7211.  Special education and related services for children with disabilities from 3 
years of age to under 6 years of age
Beginning July 1, 2024 and in accordance with subsection 4, school administrative 
units are responsible for child find and the provision of free, appropriate public education 
for children with disabilities from 3 years of age to under 6 years of age in accordance with 
this section. A school administrative unit shall take responsibility for its own resident 
children whether or not it operates a public preschool program.
1.  Service provision.  A school administrative unit shall provide services using its 
own employees or through contracts with public or private providers. Before July 1, 2026, 
a school administrative unit may contract with the Child Development Services System as 
defined in section 7001, subsection 1-A to provide services.
2.  Support. The department shall provide technical assistance and support to school 
administrative units to implement the provisions of this section.
3.  Other resources for services. The commissioner shall:
A.  Consider any school administrative unit facility upgrades and renovations necessary 
for providing special education and related services for children from 3 years of age to 
under 6 years of age to have Priority 1 status under the School Revolving Renovation 
Fund under Title 30-A, section 6006-F;
B.  Consider any school administrative unit space necessary for providing early 
childhood special education and related services for children from 3 years of age to 
under 6 years of age as instructional space or regional programs and services space 
under section 15672, subsection 2-A, paragraph B. Shared space with a community 
partner is permissible if the shared space meets the necessary licensing standards for 
the external spaces;
C.  For the purposes of transporting students from 3 years of age to under 6 years of 
age pursuant to this section, include seat belts and car seats as an allowable component 
for bus purchases pursuant to approvals under chapter 215 and for the purposes of 
school funding under chapter 606-B; and
D.  Consider any additional administrative and technical support that would enhance 
consistent delivery of services to children from 3 years of age to under 6 years of age.
4. Funding. Funding for school administrative units must be provided through a 
funding formula, determined by the commissioner, that is separate from the essential 
programs and services funding formula pursuant to chapter 606-B and must fund 100% of 
the cost of education, including prekindergarten education, special education and related 
services for children eligible for services under the federal Individuals with Disabilities 
Education Act, Part B, Section 619. If funding is not provided to school administrative 
units in accordance with this subsection, school administrative units are not required to take 
responsibility for child find and the provision of free, appropriate public education for 
children with disabilities from 3 years of age to under 6 years of age under this section.
Sec. 24.  20-A MRSA §7252-A, as amended by PL 2005, c. 662, Pt. A, §31, is 
further amended by enacting at the end a new paragraph to read:
Beginning July 1, 2026, this section applies only to special education programs.
Sec. 25.  20-A MRSA §7252-B, as amended by PL 2005, c. 662, Pt. A, §32, is 
further amended to read:
§7252-B.  Early intervention; special Special education services; approval
The commissioner shall adopt or amend rules to define allowable early intervention 
and special education services and the qualifications of individuals who provide early 
intervention or special education services.  Each intermediate educational unit, approved 
private school or state licensed agency providing early intervention services shall submit a 
report at such time and in such form as the commissioner may require.  Each school 
administrative unit, approved private school or state licensed agency providing special 
education services shall submit a report at such time and in such form as the commissioner 
may require. This paragraph is repealed July 1, 2026.
Beginning July 1, 2026, the commissioner shall adopt or amend rules to define 
allowable special education services and the qualifications of individuals who provide 
special education services. Each school administrative unit, approved private school or 
state licensed agency providing special education services shall submit a report at such time 
and in such form as the commissioner may require.
Sec. 26.  22 MRSA §1532, sub-§2, as enacted by PL 2013, c. 397, §1, is amended 
to read:
2.  Referrals.  The department shall in a timely fashion refer newborn infants with 
confirmed treatable congenital, genetic or metabolic conditions or critical congenital heart 
disease to the Child Development Services System as defined in Title 20‑A, section 7001, 
subsection 1‑A state intermediate educational unit established in Title 20-A, Part 4, Subpart 
1.  The department shall in a timely fashion refer a newborn infant to the Child 
Development Services System state intermediate educational unit if at least 6 months have 
passed since an initial positive test result of a treatable congenital, genetic or metabolic 
condition without the specific nature of the condition having been confirmed.  The 
department and the Department of Education shall execute an interagency agreement to 
facilitate all referrals made pursuant to this section.  In accordance with the interagency 
agreement, the Department of Education shall offer a single point of contact for the 
Department of Health and Human Services to use in making referrals.  Also in accordance 
with the interagency agreement, the Child Development Services System state intermediate 
educational unit may make direct contact with the families who are referred.  The referrals 
may be made electronically. For purposes of quality assurance and improvement, the Child 
Development Services System state intermediate educational unit shall supply aggregate 
data to the department at least annually on the numbers of children referred to the Child 
Development Services System state intermediate educational unit under this section who 
were found eligible and ineligible for early intervention services.  The department shall 
supply data at least annually to the Child Development Services System state intermediate 
educational unit on how many children in the newborn blood spot screening program as 
established by rule of the department under section 1533, subsection 2, paragraph G were 
screened and how many were found to have a disorder.
Sec. 27.  22 MRSA §3174-PP, as enacted by PL 2009, c. 643, §1, is amended to 
read:
§3174-PP.  Medicaid reimbursement for eligible services provided through the Child 
Development Services System and school administrative units
1.  Consultation.  Prior to adopting or amending any rule that pertains to the 
administration of a program of Medicaid coverage established by the department pursuant 
to this chapter for services that qualify for reimbursement and are provided through the 
auspices of the Child Development Services System state intermediate educational unit and 
school administrative units in accordance with the federal Individuals with Disabilities 
Education Act, 20 United States Code, Section 1400 et seq., the Office of MaineCare 
Services shall consult with the following interested parties on the proposed adoption or 
amendment of rules:
A.  The Commissioner of Education or the commissioner's designee;
B.  The Executive Director of the Maine School Management Association or the 
executive director's designee;
C.  The executive director of a statewide organization of administrators of services for 
children with disabilities or the executive director's designee;
D.  The executive director of a statewide organization for disability rights or the 
executive director's designee; and
E.  The Executive Director of the Maine Developmental Disabilities Council or the 
executive director's designee.
2.  Monthly report.  The Office of MaineCare Services shall prepare and submit at the 
beginning of each month a report that includes a detailed statement of the status of any 
proposed adoption or amendment of rules that pertain to the Medicaid programs specified 
in subsection 1 to the joint standing committee of the Legislature having jurisdiction over 
education matters and the joint standing committee of the Legislature having jurisdiction 
over health and human services matters.
Sec. 28.  22 MRSA §3922, sub-§1, as enacted by PL 2021, c. 457, §1, is amended 
to read:
1.  Expansion of services.  Increase the percentage of children screened for 
developmental, social or emotional issues at all appropriate locations, including, but not 
limited to, early childhood education facilities, child care facilities, Head Start facilities, 
Early Head Start facilities, regional sites of the Child Development Services System state 
intermediate educational unit under Title 20‑A, section 7209, subsection 3 7104 and health 
care providers to ensure access to early periodic screening, diagnosis and treatment and 
other related services to promote children's healthy development.  For purposes of this 
section, "Head Start" means a program operated under 42 United States Code, Sections 
9831 to 9852c and "Early Head Start" means a program under 42 United States Code, 
Section 9840a;
Sec. 29.  22 MRSA §3922, sub-§2, as enacted by PL 2021, c. 457, §1, is amended 
to read:
2.  Coordinated system.  Develop a coordinated system of early identification, referral 
and follow-up services across early childhood education, child care facilities, home visitor 
services as defined in section 3931, subsection 2, paragraph P, Head Start, Early Head Start, 
the Child Development Services System state intermediate educational unit under Title 
20‑A, section 7209, subsection 3 7104, health care providers and family supports;
Sec. 30.  22 MRSA §3931, sub-§4, ¶B, as enacted by PL 2021, c. 457, §2, is 
amended to read:
B.  Screening and ongoing child assessments conducted in a manner that is responsive 
to a child's home language and culture.  Screening must include an initial assessment 
of developmental, behavioral, motor, language, cognitive and social and emotional 
skills to identify a delay in development in a child's skills or identify a disability that 
may require further evaluation.  Ongoing assessment must monitor a child's 
development and progress toward individual goals with input from the child's family 
to determine a child's strengths and needs and possible adjustment of child care center 
and family child care provider teaching practices and home visit strategies and to 
support a referral to the Child Development Services System state intermediate 
educational unit under Title 20‑A, section 7209, subsection 3 7104 when necessary;
Sec. 31.  22 MRSA §8301-A, sub-§1-A, ¶B, as amended by PL 2009, c. 211, Pt. 
B, §20, is further amended by enacting a new first blocked paragraph to read:
This paragraph is repealed July 1, 2026.
Sec. 32.  22 MRSA §8301-A, sub-§1-A, ¶B-1 is enacted to read:
B-1.  Beginning July 1, 2026, "child care facility" means a child care center, small child 
care facility or nursery school. "Child care facility" does not include a facility operated 
by a family child care provider, a youth camp licensed under section 2495, programs 
offering instruction to children for the purpose of teaching a skill such as karate, dance 
or basketball, a formal public or private school in the nature of a kindergarten or 
elementary or secondary school approved by the Commissioner of Education in 
accordance with Title 20-A or a private school recognized by the Department of 
Education as a provider of equivalent instruction for the purpose of compulsory school 
attendance. Any program for children under 5 years of age that is located in a private 
school is required to be licensed as a child care facility.
Sec. 33.  22 MRSA §8824, sub-§1-A, as amended by PL 2007, c. 695, Pt. A, §28, 
is further amended to read:
1-A.  Referral to Child Development Services System state intermediate 
educational unit.  The department shall adopt rules according to which it shall in a timely 
fashion refer children identified in subsection 1 as having a high likelihood of having a 
hearing impairment to the Child Development Services System state intermediate 
educational unit.  The rules must also describe the timetables under which the department 
shall refer to the Child Development Services System state intermediate educational unit 
children identified by the department in accordance with subsection 1 as having possible 
hearing impairment but for whom hearing impairment has been neither confirmed nor 
disconfirmed by 6 months of age.  The Department of Education and the Department of 
Health and Human Services shall execute an interagency agreement to facilitate the 
referrals in this subsection.  In accordance with the interagency agreement, the Department 
of Education shall offer a single point of contact for the Department of Health and Human 
Services to use in making referrals.  Also in accordance with the interagency agreement, 
the Child Development Services System state intermediate educational unit may make 
direct contact with the families who are referred.  The referrals may take place 
electronically.  For purposes of quality assurance and improvement, the Child Development 
Services System state intermediate educational unit shall supply to the Department of 
Health and Human Services aggregate data at least annually on the number of children 
referred under this subsection who are found eligible for early intervention services and on 
the number of children found not eligible for early intervention services.
Sec. 34.  22 MRSA §8943, as amended by PL 2007, c. 450, Pt. A, §9, is further 
amended to read:
§8943.  Central registry
The department shall establish and maintain a central registry for cases of birth defects 
to accomplish the purposes of this chapter and facilitate research on birth defects.  The 
submission of information to and distribution of information from the central registry are 
subject to the requirements of this chapter and other provisions of law.  Information that 
directly or indirectly identifies individual persons contained within the registry is 
confidential and must be distributed from the registry in accordance with rules adopted by 
the department.  The department shall adopt rules according to which it will in a timely 
fashion refer to the Child Development Services System state intermediate educational unit 
children with confirmed birth defects who may be eligible for early intervention. The 
department and the Department of Education shall execute an interagency agreement to 
facilitate the referrals under this section. In accordance with the interagency agreement, the 
Department of Education shall offer a single point of contact for the Department of Health 
and Human Services to use in making referrals.  Also in accordance with the interagency 
agreement, the Child Development Services System state intermediate educational unit 
may make direct contact with the families who are referred.  The referrals may take place 
electronically.  For purposes of quality assurance and improvement, the Child Development 
Services System state intermediate educational unit shall supply to the department 
aggregate data at least annually on the number of children referred under this section who 
were found eligible for early intervention services and on the number of children found not 
eligible for early intervention services.  In addition, the department shall supply data at 
least annually to the Child Development Services System state intermediate educational 
unit on how many children had data entered into the registry. For a child whose parent or 
legal guardian objects on the basis of sincerely held religious belief, the department may 
not require the reporting of information about that child to the central registry or enter into 
the central registry information regarding birth defects of that child.
Sec. 35. Transition provisions. The following provisions govern the transition and 
reorganization of responsibility for providing special education and related services to 
children with disabilities from 3 years of age to under 6 years of age from the Child 
Development Services System to the school administrative units of residence and the 
elimination of the Child Development Services System.
1. Responsibility for children with disabilities from 3 years of age to under 6 years 
of age. Notwithstanding the Maine Revised Statutes, Title 20-A, section 7209, subsection 
3-A, beginning July 1, 2024, the school administrative unit of residence is responsible for 
providing child find and special education and related services to children with disabilities 
from 3 years of age to under 6 years of age in accordance with Title 20-A, section 7211. 
2. Regional sites. The Department of Education shall adjust the Child Development 
Services System regional sites as necessary based on the capacity of the school 
administrative units to serve students. As of July 1, 2024, the Child Development Services 
System is no longer responsible for the provision of early childhood special education 
services to children with disabilities but must remain available to serve as a service provider 
for the school administrative units until July 1, 2026.
3. Funds. The funds appropriated to the Child Development Services System, state 
intermediate educational unit for services under the federal Individuals with Disabilities 
Education Act, Part B, Section 619 may be reallocated as necessary to the school 
administrative units effective July 1, 2024 through a reimbursement model developed by 
the Department of Education.
4. Child Development Services System. The Department of Education shall ensure 
that any transition issues relating to the elimination of the Child Development Services 
System by July 1, 2026 are addressed.
5. Funding mechanisms. The Department of Education shall develop a funding 
mechanism for the state intermediate educational unit to be in place on or before July 1, 
2026 that includes maximizing insurance billing for private insurance and the MaineCare 
program.
6. Compensatory services. The Department of Education shall pay 100% of costs for 
compensatory services for children with a disability from 3 years of age to under 6 years 
of age who have been underserved through the independent education unit model for fiscal 
years 2022-23, 2023-24, 2024-25, 2025-26 and 2026-27.
7. Budget; funding formula. The Department of Education shall develop a budget for 
the costs for school administrative units to serve children with disabilities from 3 years of 
age to under 6 years of age and a funding formula for children with disabilities from 3 years 
of age to under 6 years of age to be in place on or before July 1, 2024 and that is in 
accordance with the 100% funding requirement pursuant to the Maine Revised Statutes, 
Title 20-A, section 7211, subsection 4. The department shall submit the proposed funding 
formula to the joint standing committee of the Legislature having jurisdiction over 
education matters for review no later than February 1, 2023.
8. Total cost. The Department of Education shall develop an estimate of the total cost 
for each year of the transition and the estimated total ongoing cost per year after the 
transition. 
9. Infants and toddlers with disabilities. On July 1, 2026, the responsibility for early 
intervention services for infants and toddlers with disabilities transfers from the Child 
Development Services System to the board of directors of the state intermediate 
educational unit.
10. Positions. The Department of Education shall eliminate all Child Development 
Services System positions on or before July 1, 2026.  The Department of Education shall 
transfer Part C employees to the state intermediate educational unit on July 1, 2026. Part B 
employees must be offered the following beginning August 1, 2022:
A. Career counseling through the Department of Labor;
B. Course work and expedited certification pathways to obtain certification in early 
childhood special education;
C. Retraining in early intervention services to serve in the state intermediate 
educational unit; and
D. Retirement options.
11.  Maine Public Employees Retirement System one-time election.  A Child 
Development Services System employee who transfers from the Child Development 
Services System to a school administrative unit between July 1, 2022 and July 1, 2026 who 
otherwise would be a mandatory member of the State Employee and Teacher Retirement 
Program or the Participating Local District Consolidated Retirement Plan as a result of such 
transfer, within 30 days of the transfer, may make a one-time election whether to be a 
member of the applicable program or plan. Once an election is made under this subsection, 
the election is irrevocable with respect to all subsequent employment with the same 
employer when membership in the program is not optional except as provided in the Maine 
Revised Statutes, Title 5, section 18252-A or 18252-C.
12. Early adopters. Prior to July 1, 2023, school administrative units providing special 
education and related services for children from 3 years of age to under 6 years of age must 
be reimbursed at 100% by the Child Development Services System for the costs of these 
services. Beginning July 1, 2023, school administrative units providing special education 
and related services to children from 3 years of age to under 6 years of age must receive 
100% reimbursement for these costs directly from the Department of Education. School 
administrative units assuming this responsibility before July 1, 2024 must be considered 
early adopters. The department shall provide financial support for early adopters, including 
but not limited to first-year start-up funds from available state and federal resources, a 
reallocation of available Child Development Services System funds and the other resources 
for services under the Maine Revised Statutes, Title 20-A, section 7211, subsection 3. 
Support may also include funds for the cost of administrative support approved by the 
department. 
13. Reports to joint standing committee. The Department of Education shall submit 
reports to the joint standing committee of the Legislature having jurisdiction over education 
matters on the reorganization of the provision of services to eligible children from birth to 
under 6 years of age in accordance with the following.
A. Between the effective date of this Act and November 2, 2022, the Department of 
Education shall submit 3 reports to the joint standing committee. These reports must 
address the transition provisions included in this section and the following:
(1) How the funding formula being developed for children with disabilities from 3 
years of age to under 6 years of age will provide 100% funding and any other 
details regarding budgetary matters and funding mechanisms;
(2) Information on MaineCare and private insurance billing and any issues 
regarding requirements to obtain parental consent for billing insurance;
(3) Updates and improvements to child find;
(4) Reporting requirements pursuant to the Maine Revised Statutes, Title 20-A, 
section 7209, subsection 4, paragraph E that should also be a reporting requirement 
for the new state intermediate educational unit pursuant to Title 20-A, section 
7104;
(5) Updates and additional information regarding the employment of current Child 
Development Services System employees, including but not limited to 
employment and retirement protections, memoranda of understanding with local 
service providers and the status of and plans for appropriate training and educator 
credentialing;
(6) Whether and how superintendent agreements for students from 3 years of age 
to under 6 years of age will occur for students receiving services outside of the 
school district in which the student resides;
(7) Updates and information regarding the provision of compensatory services 
under subsection 6 and whether there are any additional unanticipated costs or 
liability for school administrative units as a result of these services;
(8) Updates on and status of school administrative unit and local service provider 
or agency capacity assessments;
(9) Updates on the eligibility of and any federal changes on the expansion of the 
standard deviation for qualification of services;
(10) A plan to address labor shortages related to the provision of services under 
this Act; 
(11) Recommendations on additional appointing authorities, other than the 
Governor, for the board of directors of the state intermediate educational unit under 
the Maine Revised Statutes, Title 20-A, section 7105; and
(12) Any other information, findings or recommendations regarding the transition 
of services under this Act.   
The Joint Standing Committee on Education and Cultural Affairs is authorized to meet 
times between the effective date of this Act and November 2, 2022 to receive and 
discuss the reports under this paragraph.
B. No later than February 1, 2023, and annually thereafter until the transition is 
complete, the Department of Education shall submit a report to the joint standing 
committee of the Legislature having jurisdiction over education matters on the 
reorganization of the provision of services to eligible children from birth to under 6 
years of age.
Sec. 36. Rulemaking. The Department of Education shall adopt rules to accomplish 
the transition and reorganization required by this Act, including the reorganization and 
transition provisions. Rules adopted pursuant to this section are major substantive rules as 
defined in the Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A. The 
department shall submit the provisionally adopted rules under this section to the Legislature 
no later than January 13, 2023.
Sec. 37. Board of directors; appointments; staggered terms. The Governor 
shall make all appointments to the board of directors of the state intermediate educational 
unit pursuant to the Maine Revised Statutes, Title 20-A, section 7105 no earlier than July 
1, 2023 and no later than July 1, 2025. Notwithstanding Title 20-A, section 7105, 
subsection 2, the Governor, for original appointments, shall designate their first 
appointment for a 2-year term or a 3-year term. An initial term of 2 years may not be 
considered a full term for purposes of limiting the number of terms for which a member 
may serve.
Sec. 38. Authority for legislation. The joint standing committee of the Legislature 
having jurisdiction over education matters may submit legislation to the 131st Legislature 
upon receipt of any reports or provisionally adopted major substantive rules or to 
implement any necessary revisions to provisions of law related to this Act, including but 
not limited to delaying the dates of the reorganization of services if the joint standing 
committee determines necessary benchmarks for the reorganization of services have not 
been met.
Sec. 39.  Effective date. Those sections of this Act that amend the Maine Revised 
Statutes, Title 22, section 1532, subsection 2; Title 22, section 3174-PP; Title 22, section 
3922, subsections 1 and 2; Title 22, section 3931, subsection 4, paragraph B; Title 22, 
section 8824, subsection 1-A; and Title 22, section 8943 take effect July 1, 2026.
SUMMARY
This bill, which is reported out by the Joint Standing Committee on Education and 
Cultural Affairs pursuant to Resolve 2021, chapter 106, extends the age of eligibility under 
the federal Individuals with Disabilities Education Act to 22 years of age and provides for 
the reorganization of the provision of services for infants, toddlers and children with 
disabilities from birth to 6 years of age. The bill:
1. Establishes a new chapter of law governing early intervention services to implement 
Part C of the federal Individuals with Disabilities Education Act beginning July 1, 2026. It 
provides for the duties and responsibilities of the Department of Education, establishes the 
state intermediate educational unit, which will replace the current child development 
services system for infants and toddlers from birth to under 3 years of age, creates a board 
of directors and provides for the board’s powers and duties, including administrative and 
programmatic functions, and an executive director;
2. Provides that, beginning July 1, 2024, school administrative units are responsible for 
child find and the provision of free, appropriate public education for children with 
disabilities from 3 years of age to under 6 years of age, whether or not the school 
administrative units operate public preschool programs, and requires the Department of 
Education to develop a funding formula to provide funds for school administrative units to 
be implemented no later than July 1, 2024. It further provides that funding for school 
administrative units must be provided through a funding formula, determined by the 
Commissioner of Education, that is separate from the essential programs and services 
funding formula pursuant to the Maine Revised Statutes, Title 20-A, chapter 606-B and 
must fund 100% of the cost of education, including prekindergarten education, special 
education and related services for children eligible for services under the federal 
Individuals with Disabilities Education Act, Part B, Section 619. If funding is not provided 
to school administrative units, school administrative units are not required to take 
responsibility for child find and the provision of free, appropriate public education for 
children with disabilities from 3 years of age to under 6 years of age;
3. Amends cross-references to the Child Development Services System to refer to the 
state intermediate educational unit. Before July 1, 2026, the Child Development Services 
System is the state intermediate educational unit; beginning July 1, 2026, the state 
intermediate educational unit is established pursuant to the Maine Revised Statutes, Title 
20-A, section 7104; 
4. Repeals, on July 1, 2026, those sections of law governing the Child Development 
Services System;
5. Provides provisions for the transition and reorganization of services for infants and 
toddlers and children with disabilities from birth to 6 years of age, including but not limited 
to provisions that require the Department of Education to:
A. Adjust Child Development Services System regional sites as necessary based on 
school administrative units’ capacity to serve students. Between July 1, 2024 and July 
1, 2026, school administrative units may contract with Child Development Services 
System sites to provide services to children, and funds for the Child Development 
Services System may be reallocated as necessary to school administrative units 
beginning July 1, 2024;
B. Develop a funding mechanism for the state intermediate educational unit to be in 
place on or before July 1, 2026; 
C. Pay 100% of costs for compensatory services for children with disabilities from 3 
years of age to under 6 years of age who have been underserved through the 
independent education unit model for fiscal years 2022-23, 2023-24, 2024-25, 2025-
and 2026-27;
D. Develop a budget to include costs for school administrative units to serve children 
with disabilities from 3 years of age to under 6 years of age and develop a funding 
formula to be in place on or before July 1, 2024, which must be submitted to the joint 
standing committee of the Legislature having jurisdiction over education matters for 
review no later than February 1, 2023;
E. Develop a projection of the total cost for each year of the transition and the 
anticipated total cost for each year after the transition;
F. Eliminate all Child Development Services System positions on or before July 1, 
2026. The Department of Education is required to transfer Part C employees to the state 
intermediate educational unit on July 1, 2026. Part B employees must be offered career 
counseling, course work and expedited certification pathways, retraining in early 
intervention services and retirement options beginning August 1, 2022;
G. Report to the joint standing committee annually throughout the transition and 3 
times between the effective date of this legislation and November 2, 2022. The Joint 
Standing Committee on Education and Cultural Affairs is authorized to meet 3 times 
during that same time period to receive and discuss the reports; and
H. Adopt major substantive rules governing the transition and to implement this 
legislation. The rules must be submitted to the Legislature no later than January 13, 
2023; 
6. Provides a provision for school administrative units that want to adopt responsibility 
early for the provision of a free, appropriate public education for children from 3 years of 
age to under 6 years of age to do so and receive 100% reimbursement for these costs directly 
from the Department of Education and additional financial support from the department;
7. Provides that a Child Development Services System employee who transfers from 
the Child Development Services System to a school administrative unit between July 1, 
2022 and July 1, 2026 who otherwise would be a mandatory member of the State Employee 
and Teacher Retirement Program or the Participating Local District Consolidated 
Retirement Plan as a result of such transfer, within 30 days of the transfer, may make a 
one-time election whether to be a member of the applicable program or plan; and
8. Gives authority to the joint standing committee of the Legislature having jurisdiction 
over education matters to submit legislation to the 131st Legislature upon receipt of any 
reports or provisionally adopted rules pursuant to this legislation or to implement any 
necessary revisions to provisions of the law related to this legislation, including but not 
limited to delaying the dates of the reorganization of services if the committee determines 
that necessary benchmarks for the reorganization of services have not been met.
FISCAL NOTE REQUIRED
(See attached)
Approved: 04/05/22
LD 2039     
LR 2686(01)
Fiscal Detail and Notes
Fiscal Note
Potential future biennium cost increase - General Fund
An Act To Reorganize the Provision of Services for Infants, Toddlers and Children with Disabilities 
from Birth to 6 Years of Age and Extend the Age of Eligibility under the Individuals with Disabilities 
Education Act to 22
Fiscal Note for Original Bill
Committee: Education Committee
Fiscal Note Required: Yes
Under current law, services for infants, toddlers and children with disabilities from birth to 6 years of age is provided 
through the Child Development Services System (CDS) which receives General Fund appropriations of approximately 
$39.7 million per year along with approximately $5.3 million annually in federal funds. This legislation reorganizes 
how services to these children are provided and extends the age that a child with a disability is eligible to receive 
services under the Individuals with Disabilities Education Act from age 21 to age 22. The bill requires the Department 
of Education to develop projections for the total cost of this reorganization and to report to the joint standing 
committee having jurisdiction over education matters on the cost and proposed funding mechanisms by November 2, 
2022 If the projected costs exceed current funding levels, additional General Fund appropriations will be required.
As part of the reorganization, the bill requires school administrative units (SAU's) to assume responsibility for 
identifying and providing free, appropriate public education (FAPE) for children with disabilities from 3 years of age 
to under 6 beginning July 1, 2024 using their own employees or through contracts with public or private providers 
(SAU's are allowed to contract with the Child Development Services System until July 1, 2026) only if funding is 
provided to cover the total costs to SAU's through a funding formula to be developed by the Department of Education. 
The bill allows for funds appropriated to the current Child Development Services System program for children with 
disabilities from 3 years of age to under 6 to be reallocated through a reimbursement model developed by the 
department to SAU's beginning July 1, 2024.
This legislation also repeals the current Child Development Services System and replaces it with a State Intermediate 
Educational Unit (SIEU) established as a public instrumentality of the State responsible for identifying, evaluating and 
providing early intervention services to eligible infants and toddlers with disabilities from birth to under age 3 and 
their families effective July 1, 2026. The bill requires the Department of Education to develop a funding mechanism 
for the SIEU to be in place by that effective date.
This bill requires the Department of Education to pay 100% of the costs for compensatory services for children with a 
disability from 3 years of age to under 6 years of age who have been underserved through the current model from 
fiscal year 2022-23 through fiscal year 2025-26. This requirement is expected to result in additional costs to the State, 
but the total impact can not be estimated at this time.
LR2686(01) - Fiscal Note - Page 1 of 2
Any additional costs to the Department of Health and Human Services from the provisions of this bill are expected to 
be minor and can be absorbed within existing budgeted resources.
LR2686(01) - Fiscal Note - Page 2 of 2