HR 1350 EAS

Resolved, That the bill from the House of Representatives (H.R. 1350) entitled `An Act to reauthorize the Individuals with Disabilities Education Act, and for other purposes.', do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE.

This Act may be cited as the `Individuals with Disabilities Education Improvement Act of 2004'.

SEC. 2. ORGANIZATION OF THE ACT.

This Act is organized into the following titles:

TITLE I--AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT

TITLE II--AMENDMENTS TO THE REHABILITATION ACT OF 1973

TITLE III--NATIONAL CENTER FOR SPECIAL EDUCATION RESEARCH

TITLE IV--COMMISSION ON UNIVERSAL DESIGN AND THE ACCESSIBILITY OF CURRICULUM AND INSTRUCTIONAL MATERIALS

TITLE V--MISCELLANEOUS

TITLE I--AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT

SEC. 101. AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT.

Parts A through D of the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.) are amended to read as follows:

`PART A--GENERAL PROVISIONS

`SEC. 601. SHORT TITLE; TABLE OF CONTENTS; FINDINGS; PURPOSES.

`(a) SHORT TITLE- This Act may be cited as the `Individuals with Disabilities Education Act'.

`(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

`Part A--General Provisions

`Part B--Assistance for Education of All Children With Disabilities

`Part C--Infants and Toddlers With Disabilities

`Part D--National Activities To Improve Education of Children With Disabilities

`Subpart 1--State Personnel Preparation and Professional Development Grants

`Subpart 2--Scientifically Based Research, Technical Assistance, Model Demonstration Projects, and Dissemination of Information

`Subpart 3--Supports To Improve Results for Children With Disabilities

`Subpart 4--Interim Alternative Educational Settings, Behavioral Supports, and Whole School Interventions

`(c) FINDINGS- Congress finds the following:

`(1) Disability is a natural part of the human experience and in no way diminishes the right of individuals to participate in or contribute to society. Improving educational results for children with disabilities is an essential element of our national policy of ensuring equality of opportunity, full participation, independent living, and economic self-sufficiency for individuals with disabilities.

`(2) Before the date of the enactment of the Education for All Handicapped Children Act of 1975 (Public Law 94-142), the educational needs of millions of children with disabilities were not being fully met because--

`(A) the children did not receive appropriate educational services;

`(B) the children were excluded entirely from the public school system and from being educated with their peers;

`(C) undiagnosed disabilities prevented the children from having a successful educational experience; or

`(D) a lack of adequate resources within the public school system forced families to find services outside the public school system.

`(3) Since the enactment and implementation of the Education for All Handicapped Children Act of 1975, this Act has been successful in ensuring children with disabilities and the families of such children access to a free appropriate public education and in improving educational results for children with disabilities.

`(4) However, the implementation of this Act has been impeded by low expectations, and an insufficient focus on applying replicable research on proven methods of teaching and learning for children with disabilities.

`(5) Over 25 years of research and experience has demonstrated that the education of children with disabilities can be made more effective by--

`(A) having high expectations for such children and ensuring their access to the general education curriculum in the regular classroom to the maximum extent possible in order to--

`(i) meet developmental goals and, to the maximum extent possible, the challenging expectations that have been established for all children; and

`(ii) be prepared to lead productive and independent adult lives, to the maximum extent possible;

`(B) strengthening the role and responsibility of parents and ensuring that families of such children have meaningful opportunities to participate in the education of their children at school and at home;

`(C) coordinating this Act with other local, educational service agency, State, and Federal school improvement efforts, including improvement efforts under the Elementary and Secondary Education Act of 1965, in order to ensure that such children benefit from such efforts and that special education can become a service for such children rather than a place where they are sent;

`(D) providing appropriate special education and related services, and aids and supports in the regular classroom, to such children, whenever appropriate;

`(E) supporting high-quality, intensive preservice preparation and professional development for all personnel who work with children with disabilities in order to ensure that such personnel have the skills and knowledge necessary to improve the academic achievement and functional performance of children with disabilities, including the use of scientifically based instructional practices, to the maximum extent possible;

`(F) providing incentives for whole-school approaches, scientifically based early reading programs, positive behavioral interventions and supports, and prereferral interventions to reduce the need to label children as disabled in order to address their learning and behavioral needs;

`(G) focusing resources on teaching and learning while reducing paperwork and requirements that do not assist in improving educational results; and

`(H) supporting the development and use of technology, including assistive technology devices and assistive technology services, to maximize accessibility for children with disabilities.

`(6) While States, local educational agencies, and educational service agencies are primarily responsible for providing an education for all children with disabilities, it is in the national interest that the Federal Government have a supporting role in assisting State and local efforts to educate children with disabilities in order to improve results for such children and to ensure equal protection of the law.

`(7) A more equitable allocation of resources is essential for the Federal Government to meet its responsibility to provide an equal educational opportunity for all individuals.

`(8) Parents and schools should be given expanded opportunities to resolve their disagreements in positive and constructive ways.

`(9) Teachers, schools, local educational agencies, and States should be relieved of irrelevant and unnecessary paperwork burdens that do not lead to improved educational outcomes.

`(10)(A) The Federal Government must be responsive to the growing needs of an increasingly more diverse society.

`(B) America's ethnic profile is rapidly changing. In the year 2000, 1 of every 3 persons in the United States was a member of a minority group or was limited English proficient.

`(C) Minority children comprise an increasing percentage of public school students.

`(D) With such changing demographics, recruitment efforts for special education personnel should focus on increasing the participation of minorities in the teaching profession.

`(11)(A) The limited English proficient population is the fastest growing in our Nation, and the growth is occurring in many parts of our Nation.

`(B) Studies have documented apparent discrepancies in the levels of referral and placement of limited English proficient children in special education.

`(C) This poses a special challenge for special education in the referral of, assessment of, and services for, our Nation's students from non-English language backgrounds.

`(12)(A) Greater efforts are needed to prevent the intensification of problems connected with mislabeling and high dropout rates among minority children with disabilities.

`(B) More minority children continue to be served in special education than would be expected from the percentage of minority students in the general school population.

`(C) African-American children are identified as having mental retardation and emotional disturbance at rates greater than their white counterparts.

`(D) In the 1998-1999 school year, African-American children represented just 14.8 percent of the population aged 6 through 21, but comprised 20.2 percent of all children with disabilities.

`(E) Studies have found that schools with predominately Caucasian students and teachers have placed disproportionately high numbers of their minority students into special education.

`(13)(A) As the number of minority students in special education increases, the number of minority teachers and related services personnel produced in colleges and universities continues to decrease.

`(B) The opportunity for minority individuals, organizations, and Historically Black Colleges and Universities to participate fully in awards for grants and contracts, boards of organizations receiving funds under this Act, and peer review panels, and in the training of professionals in the area of special education is essential if we are to obtain greater success in the education of minority children with disabilities.

`(14) As the graduation rates for children with disabilities continue to climb, providing effective transition services to promote successful post-school employment or education is an important measure of accountability for children with disabilities.

`(d) PURPOSES- The purposes of this title are--

`(1)(A) to ensure that all children with disabilities have available to them a free appropriate public education that emphasizes special education and related services designed to meet their unique needs and prepare them for employment, further education, and independent living;

`(B) to ensure that the rights of children with disabilities and parents of such children are protected; and

`(C) to assist States, localities, educational service agencies, and Federal agencies to provide for the education of all children with disabilities;

`(2) to assist States in the implementation of a Statewide, coordinated, multidisciplinary, interagency system of early intervention services for infants and toddlers with disabilities and their families;

`(3) to ensure that educators and parents have the necessary tools to improve educational results for children with disabilities by supporting systemic-change activities; coordinated research and personnel preparation; coordinated technical assistance, dissemination, and support; and technology development and media services; and

`(4) to assess, and ensure the effectiveness of, efforts to educate children with disabilities.

`SEC. 602. DEFINITIONS.

`Except as otherwise provided, as used in this Act:

`(1) ASSISTIVE TECHNOLOGY DEVICE- The term `assistive technology device' means any item, piece of equipment, or product system, whether acquired commercially off the shelf, modified, or customized, that is used to increase, maintain, or improve functional capabilities of a child with a disability. The term does not include a medical device that is surgically implanted, or the repalcement of such device.

`(2) ASSISTIVE TECHNOLOGY SERVICE- The term `assistive technology service' means any service that directly assists a child with a disability in the selection, acquisition, or use of an assistive technology device. Such term includes--

`(A) the evaluation of the needs of such child, including a functional evaluation of the child in the child's customary environment;

`(B) purchasing, leasing, or otherwise providing for the acquisition of assistive technology devices by such child;

`(C) selecting, designing, fitting, customizing, adapting, applying, maintaining, repairing, or replacing of assistive technology devices;

`(D) coordinating and using other therapies, interventions, or services with assistive technology devices, such as those associated with existing education and rehabilitation plans and programs;

`(E) training or technical assistance for such child, or, where appropriate, the family of such child; and

`(F) training or technical assistance for professionals (including individuals providing education and rehabilitation services), employers, or other individuals who provide services to, employ, or are otherwise substantially involved in the major life functions of such child.

`(3) CHILD WITH A DISABILITY-

`(A) IN GENERAL- The term `child with a disability' means a child--

`(i) with mental retardation, hearing impairments (including deafness), speech or language impairments, visual impairments (including blindness), serious emotional disturbance (hereinafter referred to as `emotional disturbance'), orthopedic impairments, autism, traumatic brain injury, other health impairments, or specific learning disabilities; and

`(ii) who, by reason thereof, needs special education and related services.

`(B) CHILD AGED 3 THROUGH 9- The term `child with a disability' for a child aged 3 through 9 (or any subset of that age range, including ages 3 through 5), may, at the discretion of the State and the local educational agency, include a child--

`(i) experiencing developmental delays, as defined by the State and as measured by appropriate diagnostic instruments and procedures, in 1 or more of the following areas: physical development, cognitive development, communication development, social or emotional development, or adaptive development; and

`(ii) who, by reason thereof, needs special education and related services.

`(4) CORE ACADEMIC SUBJECT- The term `core academic subject' has the meaning given the term in section 9101(11) of the Elementary and Secondary Education Act of 1965.

`(5) EDUCATIONAL SERVICE AGENCY- The term `educational service agency'--

`(A) means a regional public multiservice agency--

`(i) authorized by State law to develop, manage, and provide services or programs to local educational agencies; and

`(ii) recognized as an administrative agency for purposes of the provision of special education and related services provided within public elementary schools and secondary schools of the State; and

`(B) includes any other public institution or agency having administrative control and direction over a public elementary school or secondary school.

`(6) ELEMENTARY SCHOOL- The term `elementary school' means a nonprofit institutional day or residential school that provides elementary education, as determined under State law.

`(7) EQUIPMENT- The term `equipment' includes--

`(A) machinery, utilities, and built-in equipment, and any necessary enclosures or structures to house such machinery, utilities, or equipment; and

`(B) all other items necessary for the functioning of a particular facility as a facility for the provision of educational services, including items such as instructional equipment and necessary furniture; printed, published, and audio-visual instructional materials; telecommunications, sensory, and other technological aids and devices; and books, periodicals, documents, and other related materials.

`(8) EXCESS COSTS- The term `excess costs' means those costs that are in excess of the average annual per-student expenditure in a local educational agency during the preceding school year for an elementary school or secondary school student, as may be appropriate, and which shall be computed after deducting--

`(A) amounts received--

`(i) under part B of this title;

`(ii) under part A of title I of the Elementary and Secondary Education Act of 1965; and

`(iii) under parts A and B of title III of that Act; and

`(B) any State or local funds expended for programs that would qualify for assistance under any of those parts.

`(9) FREE APPROPRIATE PUBLIC EDUCATION- The term `free appropriate public education' means special education and related services that--

`(A) have been provided at public expense, under public supervision and direction, and without charge;

`(B) meet the standards of the State educational agency;

`(C) include an appropriate preschool, elementary school, or secondary school education in the State involved; and

`(D) are provided in conformity with the individualized education program required under section 614(d).

`(10) HIGHLY QUALIFIED- The term `highly qualified' means the following:

`(A) ALL SPECIAL EDUCATION TEACHERS- When used with respect to any public elementary school or secondary school special education teacher teaching in a State, means that the teacher holds at least a bachelor's degree and that--

`(i) the teacher has obtained full State certification as a special education teacher through a State-approved special education teacher preparation program (including certification obtained through alternative routes to certification) or other comparably rigorous methods, or passed the State teacher special education licensing examination, and holds a license to teach in the State as a special education teacher, except that when used with respect to any teacher teaching in a public charter school, the term means that the teacher meets the requirements set forth in the State's public charter school law;

`(ii) the teacher has not had certification or licensure requirements waived on an emergency, temporary, or provisional basis; and

`(iii) the teacher demonstrates knowledge of special education and the teaching skills necessary to teach children with disabilities.

`(B) NEW ELEMENTARY SCHOOL SPECIAL EDUCATION TEACHERS- When used with respect to a special education elementary school teacher who is new to the profession, means that the teacher demonstrated, by passing a rigorous State test, subject knowledge and teaching skills in reading, writing, mathematics, and other areas of the basic elementary school curriculum (which may consist of passing a State-required certification or licensing test or tests in reading, writing, mathematics, and other areas of the basic elementary school curriculum).

`(C) NEW MIDDLE SCHOOL AND SECONDARY SCHOOL SPECIAL EDUCATION TEACHERS- When used with respect to a special education middle school or secondary school teacher who is new to the profession, means that the teacher has demonstrated a high level of competency in each of the academic subjects in which the teacher teaches by--

`(i) passing a rigorous State academic subject test in each of the academic subjects in which the teacher teaches (which may consist of a passing level of performance on a State-required certification or licensing test or tests in each of the academic subjects in which the teacher teaches); or

`(ii) successful completion, in each of the academic subjects in which the teacher teaches, of an academic major, graduate degree, coursework equivalent to an undergraduate academic major, or advanced certification or credentialing.

`(D) VETERAN SPECIAL EDUCATION TEACHERS- When used with respect to an elementary school, middle school, or secondary school special education teacher who is not new to the profession, means that the teacher has--

`(i) met the applicable standard in subparagraph (B) or (C), which includes an option for a test; or

`(ii) has demonstrated competence in all the academic subjects in which the teacher teaches based on a high objective uniform State standard of evaluation for special education teachers that--

`(I) is set by the State for both grade-appropriate academic subject matter knowledge and special education teaching skills;

`(II) is aligned with challenging State academic content and student academic achievement standards and developed in consultation with special education teachers, core content specialists, teachers, principals, and school administrators;

`(III) provides objective, coherent information about the teachers' attainment of knowledge of core content knowledge in the academic subjects in which a teacher teaches;

`(IV) is applied uniformly to all special education teachers who teach in the same academic subject and the same grade level throughout the State;

`(V) takes into consideration, but is not based primarily on, the time the teacher has been teaching in the academic subject;

`(VI) is made available to the public on request; and

`(VII) may involve multiple objective measures of teacher competency.

`(E) TEACHERS PROVIDING CONSULTATIVE SERVICES-

`(i) IN GENERAL- Notwithstanding subparagraphs (B) through (D), when used with respect to a special education teacher who provides only consultative services to a highly qualified regular education teacher (as the term highly qualified is defined in section 9101(23) of the Elementary and Secondary Education Act of 1965), means that the teacher meets the requirements of subparagraph (A).

`(ii) CONSULTATIVE SERVICES- As used in clause (i), the term `consultative services' means services that adjust the learning environment, modify instructional methods, adapt curricula, use positive behavior supports and interventions, and select and implement appropriate accommodations to meet the needs of individual children.

`(F) EXCEPTION- Notwithstanding subparagraphs (B) through (D), when used with respect to a special education teacher who teaches more than 1 subject, primarily to middle school and secondary school-aged children with significant cognitive disabilities, means that the teacher has demonstrated subject knowledge and teaching skills in reading, mathematics, and other areas of the basic elementary school curriculum by--

`(i) passing a rigorous State test (which may consist of passing a State-required certification or licensing test or tests in those areas); or

`(ii) demonstrating competency in all the academic subjects in which the teacher teaches, based on a high objective uniform State standard as described in subparagraph (D)(ii).

`(11) INDIAN- The term `Indian' means an individual who is a member of an Indian tribe.

`(12) INDIAN TRIBE- The term `Indian tribe' means any Federal or State Indian tribe, band, rancheria, pueblo, colony, or community, including any Alaska Native village or regional village corporation (as defined in or established under the Alaska Native Claims Settlement Act).

`(13) INDIVIDUALIZED EDUCATION PROGRAM- The term `individualized education program' or `IEP' means a written statement for each child with a disability that is developed, reviewed, and revised in accordance with section 614(d).

`(14) INDIVIDUALIZED FAMILY SERVICE PLAN- The term `individualized family service plan' has the meaning given such term in section 636.

`(15) INFANT OR TODDLER WITH A DISABILITY- The term `infant or toddler with a disability' has the meaning given such term in section 632.

`(16) INSTITUTION OF HIGHER EDUCATION- The term `institution of higher education'--

`(A) has the meaning given such term in section 101 (a) and (b) of the Higher Education Act of 1965; and

`(B) also includes any community college receiving funding from the Secretary of the Interior under the Tribally Controlled College or University Assistance Act of 1978.

`(17) LIMITED ENGLISH PROFICIENT- The term `limited English proficient' has the meaning given the term in section 9101(25) of the Elementary and Secondary Education Act of 1965.

`(18) LOCAL EDUCATIONAL AGENCY-

`(A) The term `local educational agency' means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary schools or secondary schools in a city, county, township, school district, or other political subdivision of a State, or for such combination of school districts or counties as are recognized in a State as an administrative agency for its public elementary schools or secondary schools.

`(B) The term includes--

`(i) an educational service agency, as defined in paragraph (5); and

`(ii) any other public institution or agency having administrative control and direction of a public elementary school or secondary school.

`(C) The term includes an elementary school or secondary school funded by the Bureau of Indian Affairs, but only to the extent that such inclusion makes the school eligible for programs for which specific eligibility is not provided to the school in another provision of law and the school does not have a student population that is smaller than the student population of the local educational agency receiving assistance under this Act with the smallest student population, except that the school shall not be subject to the jurisdiction of any State educational agency other than the Bureau of Indian Affairs.

`(19) NATIVE LANGUAGE- The term `native language', when used with respect to an individual of limited English proficiency, means the language normally used by the individual, or in the case of a child, the language normally used by the parents of the child.

`(20) NONPROFIT- The term `nonprofit', as applied to a school, agency, organization, or institution, means a school, agency, organization, or institution owned and operated by 1 or more nonprofit corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

`(21) OUTLYING AREA- The term `outlying area' means the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

`(22) PARENT-

`(A) IN GENERAL- The term `parent'--

`(i) means--

`(I) a natural or adoptive parent of a child;

`(II) a guardian (but not the State if the child is a ward of the State);

`(III) an individual acting in the place of a natural or adoptive parent, including a grandparent, stepparent, or other relative with whom the child lives or an individual who is legally responsible for the child's welfare; or

`(IV) except as used in sections 615(b)(2) and 639(a)(5), an individual assigned under either of those sections to be a surrogate parent; and

`(ii) in the case of a homeless child who is not in the physical custody of a parent or guardian, includes a related or unrelated adult with whom the child is living or other adult jointly designated by the child and the local educational agency liaison for homeless children and youths (designated pursuant to section 722(g)(1)(J)(ii) of the McKinney-Vento Homeless Assistance Act), in addition to other individuals permitted by law.

`(B) FOSTER PARENT- Unless State law prohibits a foster parent from acting as a parent, the term `parent' includes a foster parent if--

`(i) the natural or adoptive parents' authority to make educational decisions on the child's behalf has been extinguished under State law; and

`(ii) the foster parent--

`(I) has an ongoing, long-term parental relationship with the child;

`(II) is willing to make the educational decisions required of parents under this Act; and

`(III) has no interest that would conflict with the interests of the child.

`(23) PARENT ORGANIZATION- The term `parent organization' has the meaning given such term in section 671(g).

`(24) PARENT TRAINING AND INFORMATION CENTER- The term `parent training and information center' means a center assisted under section 671 or 672.

`(25) RELATED SERVICES- The term `related services' means transportation, and such developmental, corrective, and other supportive services (including speech-language pathology and audiology services, interpreting services, psychological services, physical and occupational therapy, recreation, including therapeutic recreation, social work services, school health services, counseling services, including rehabilitation counseling, orientation and mobility services, travel training instruction, and medical services, except that such medical services shall be for diagnostic and evaluation purposes only) as may be required to assist a child with a disability to benefit from special education, and includes the early identification and assessment of disabling conditions in children. The term does not include a medical device that is surgically implanted, or the replacement of such device.

`(26) SECONDARY SCHOOL- The term `secondary school' means a nonprofit institutional day or residential school that provides secondary education, as determined under State law, except that it does not include any education beyond grade 12.

`(27) SECRETARY- The term `Secretary' means the Secretary of Education.

`(28) SPECIAL EDUCATION- The term `special education' means specially designed instruction, at no cost to parents, to meet the unique needs of a child with a disability, including--

`(A) instruction conducted in the classroom, in the home, in hospitals and institutions, and in other settings; and

`(B) instruction in physical education.

`(29) SPECIFIC LEARNING DISABILITY-

`(A) IN GENERAL- The term `specific learning disability' means a disorder in 1 or more of the basic psychological processes involved in understanding or in using language, spoken or written, which disorder may manifest itself in the imperfect ability to listen, think, speak, read, write, spell, or do mathematical calculations.

`(B) DISORDERS INCLUDED- Such term includes such conditions as perceptual disabilities, brain injury, minimal brain dysfunction, dyslexia, and developmental aphasia.

`(C) DISORDERS NOT INCLUDED- Such term does not include a learning problem that is primarily the result of visual, hearing, or motor disabilities, of mental retardation, of emotional disturbance, or of environmental, cultural, or economic disadvantage.

`(30) STATE- The term `State' means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, and each of the outlying areas.

`(31) STATE EDUCATIONAL AGENCY- The term `State educational agency' means the State board of education or other agency or officer primarily responsible for the State supervision of public elementary schools and secondary schools, or, if there is no such officer or agency, an officer or agency designated by the Governor or by State law.

`(32) SUPPLEMENTARY AIDS AND SERVICES- The term `supplementary aids and services' means aids, services, and other supports that are provided in regular education classes or other education-related settings to enable children with disabilities to be educated with nondisabled children to the maximum extent appropriate in accordance with section 612(a)(5).

`(33) TRANSITION SERVICES- The term `transition services' means a coordinated set of activities for a child with a disability (as defined in paragraph (3)(A)) that--

`(A) is designed to be within a results-oriented process, that is focused on improving the academic and functional achievement of the child with a disability to facilitate the child's movement from school to post-school activities, including post-secondary education, vocational training, integrated employment (including supported employment), continuing and adult education, adult services, independent living, or community participation;

`(B) is based on the individual child's needs, taking into account the child's strengths, preferences, and interests; and

`(C) includes instruction, related services, community experiences, the development of employment and other post-school adult living objectives, and, when appropriate, acquisition of daily living skills and functional vocational evaluation.

`(34) CHILD WITH A DISABILITY IN A MILITARY FAMILY- The term `child with a disability in a military family' means a child with a disability who has a parent who is a member of the Armed Forces, including a member of the National Guard or Reserves.

`(35) HOMELESS CHILDREN- The term `homeless children' has the meaning given the term `homeless children and youths' in section 725 of the McKinney-Vento Homeless Assistance Act.

`(36) WARD OF THE STATE- The term `ward of the State' means a child who, as defined by the State where the child resides, is a foster child, a ward of the State or is in the custody of a public child welfare agency.

`SEC. 603. OFFICE OF SPECIAL EDUCATION PROGRAMS.

`(a) ESTABLISHMENT- There shall be, within the Office of Special Education and Rehabilitative Services in the Department of Education, an Office of Special Education Programs, which shall be the principal agency in such Department for administering and carrying out this Act and other programs and activities concerning the education of children with disabilities.

`(b) DIRECTOR- The Office established under subsection (a) shall be headed by a Director who shall be selected by the Secretary and shall report directly to the Assistant Secretary for Special Education and Rehabilitative Services.

`(c) VOLUNTARY AND UNCOMPENSATED SERVICES- Notwithstanding section 1342 of title 31, United States Code, the Secretary is authorized to accept voluntary and uncompensated services in furtherance of the purposes of this Act.

`SEC. 604. ABROGATION OF STATE SOVEREIGN IMMUNITY.

`(a) IN GENERAL- A State shall not be immune under the 11th amendment to the Constitution of the United States from suit in Federal court for a violation of this Act.

`(b) REMEDIES- In a suit against a State for a violation of this Act, remedies (including remedies both at law and in equity) are available for such a violation to the same extent as those remedies are available for such a violation in the suit against any public entity other than a State.

`(c) EFFECTIVE DATE- Subsections (a) and (b) apply with respect to violations that occur in whole or part after the date of enactment of the Education of the Handicapped Act Amendments of 1990.

`SEC. 605. ACQUISITION OF EQUIPMENT; CONSTRUCTION OR ALTERATION OF FACILITIES.

`(a) IN GENERAL- If the Secretary determines that a program authorized under this Act will be improved by permitting program funds to be used to acquire appropriate equipment, or to construct new facilities or alter existing facilities, the Secretary is authorized to allow the use of those funds for those purposes.

`(b) COMPLIANCE WITH CERTAIN REGULATIONS- Any construction of new facilities or alteration of existing facilities under subsection (a) shall comply with the requirements of--

`(1) appendix A of part 36 of title 28, Code of Federal Regulations (commonly known as the `Americans with Disabilities Accessibility Guidelines for Buildings and Facilities'); or

`(2) appendix A of subpart 101-19.6 of title 41, Code of Federal Regulations (commonly known as the `Uniform Federal Accessibility Standards').

`SEC. 606. EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.

`The Secretary shall ensure that each recipient of assistance under this Act makes positive efforts to employ and advance in employment qualified individuals with disabilities in programs assisted under this Act.

`SEC. 607. REQUIREMENTS FOR PRESCRIBING REGULATIONS.

`(a) IN GENERAL- In carrying out the provisions of this Act, the Secretary shall issue regulations under this Act only to the extent that such regulations are necessary to ensure that there is compliance with the specific requirements of this Act.

`(b) PROTECTIONS PROVIDED TO CHILDREN- The Secretary may not implement, or publish in final form, any regulation prescribed pursuant to this Act that--

`(1) violates or contradicts any provision of this Act; and

`(2) procedurally or substantively lessens the protections provided to children with disabilities under this Act, as embodied in regulations in effect on July 20, 1983 (particularly as such protections related to parental consent to initial evaluation or initial placement in special education, least restrictive environment, related services, timelines, attendance of evaluation personnel at individualized education program meetings, or qualifications of personnel), except to the extent that such regulation reflects the clear and unequivocal intent of the Congress in legislation.

`(c) PUBLIC COMMENT PERIOD- The Secretary shall provide a public comment period of not more than 90 days on any regulation proposed under part B or part C of this Act on which an opportunity for public comment is otherwise required by law.

`(d) POLICY LETTERS AND STATEMENTS- The Secretary may not issue policy letters or other statements (including letters or statements regarding issues of national significance) that--

`(1) violate or contradict any provision of this Act; or

`(2) establish a rule that is required for compliance with, and eligibility under, this Act without following the requirements of section 553 of title 5, United States Code.

`(e) EXPLANATION AND ASSURANCES- Any written response by the Secretary under subsection (d) regarding a policy, question, or interpretation under part B of this Act shall include an explanation in the written response that--

`(1) such response is provided as informal guidance and is not legally binding;

`(2) when required, such response is issued in compliance with the requirements of section 553 of title 5, United States Code; and

`(3) such response represents the interpretation by the Department of Education of the applicable statutory or regulatory requirements in the context of the specific facts presented.

`(f) CORRESPONDENCE FROM DEPARTMENT OF EDUCATION DESCRIBING INTERPRETATIONS OF THIS ACT-

`(1) IN GENERAL- The Secretary shall, on a quarterly basis, publish in the Federal Register, and widely disseminate to interested entities through various additional forms of communication, a list of correspondence from the Department of Education received by individuals during the previous quarter that describes the interpretations of the Department of Education of this Act or the regulations implemented pursuant to this Act.

`(2) ADDITIONAL INFORMATION- For each item of correspondence published in a list under paragraph (1), the Secretary shall--

`(A) identify the topic addressed by the correspondence and shall include such other summary information as the Secretary determines to be appropriate; and

`(B) ensure that all such correspondence is issued, where applicable, in compliance with the requirements of section 553 of title 5, United States Code.

`SEC. 608. STATE ADMINISTRATION.

`(a) RULEMAKING- Each State that receives funds under this Act shall--

`(1) ensure that any State rules, regulations, and policies relating to this Act conform to the purposes of this Act; and

`(2) identify in writing to its local educational agencies and the Secretary any such rule, regulation, or policy as a State-imposed requirement that is not required by this Act and Federal regulations.

`(b) SUPPORT AND FACILITATION- State rules, regulations, and policies under this Act shall support and facilitate local educational agency and school-level systemic reform designed to enable children with disabilities to meet the challenging State student academic achievement standards.

`SEC. 609. PAPERWORK REDUCTION.

`(a) REPORT TO CONGRESS- The Comptroller General shall conduct a review of Federal, State, and local requirements relating to the education of children with disabilities to determine which requirements result in excessive paperwork completion burdens for teachers, related services providers, and school administrators, and shall report to Congress not later than 18 months after the date of enactment of the Individuals with Disabilities Education Improvement Act of 2003 regarding such review along with strategic proposals for reducing the paperwork burdens on teachers.

`(b) PAPERWORK REDUCTION DEMONSTRATION-

`(1) PILOT PROGRAM-

`(A) PURPOSE- The purpose of this subsection is to provide an opportunity for States to identify ways to reduce paperwork burdens and other administrative duties that are directly associated with the requirements of this Act, in order to increase the time and resources available for instruction and other activities aimed at improving educational and functional results for children with disabilities.

`(B) AUTHORIZATION-

`(i) IN GENERAL- In order to carry out the purpose of this subsection, the Secretary is authorized to grant waivers of statutory requirements of, or regulatory requirements relating to, this part for a period of time not to exceed 4 years with respect to not more than 15 States based on proposals submitted by States to reduce excessive paperwork and noninstructional time burdens that do not assist in improving educational and functional results for children with disabilities.

`(ii) EXCEPTION- The Secretary shall not waive any statutory requirements of, or regulatory requirements relating to, applicable civil rights requirements.

`(iii) RULE OF CONSTRUCTION- Nothing in this subsection shall be construed to--

`(I) affect the right of a child with a disability to receive a free appropriate public education under this part; and

`(II) permit a State or local educational agency to waive procedural safeguards under section 615.

`(C) PROPOSAL-

`(i) IN GENERAL- A State desiring to participate in the program under this subsection shall submit a proposal to the Secretary at such time and in such manner as the Secretary may reasonably require.

`(ii) CONTENT- The proposal shall include--

`(I) a list of any statutory requirements of, or regulatory requirements relating to, this part that the State desires the Secretary to waive or change, in whole or in part; and

`(II) a list of any State requirements that the State proposes to waive or change, in whole or in part, to carry out a waiver granted to the State by the Secretary.

`(D) TERMINATION OF WAIVER- The Secretary shall terminate a State's waiver under this subsection if the Secretary determines that the State--

`(i) has failed to make satisfactory progress in meeting the indicators described in section 616; or

`(ii) has failed to appropriately implement its waiver.

`(2) REPORT- Beginning 2 years after the date of enactment of the Individuals with Disabilities Education Improvement Act of 2003, the Secretary shall include in the annual report to Congress submitted pursuant to section 426 of the Department of Education Organization Act information related to the effectiveness of waivers granted under paragraph (1), including any specific recommendations for broader implementation of such waivers, in--

`(A) reducing--

`(i) the paperwork burden on teachers, principals, administrators, and related service providers; and

`(ii) noninstructional time spent by teachers in complying with this part;

`(B) enhancing longer-term educational planning;

`(C) improving positive outcomes for children with disabilities;

`(D) promoting collaboration between IEP Team members; and

`(E) ensuring satisfaction of family members.

`SEC. 610. FREELY ASSOCIATED STATES.

`The Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau shall continue to be eligible for competitive grants administered by the Secretary under this Act to the extent that such grants continue to be available to States and local educational agencies under this Act.

`PART B--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH DISABILITIES

`SEC. 611. AUTHORIZATION; ALLOTMENT; USE OF FUNDS; AUTHORIZATION OF APPROPRIATIONS.

`(a) GRANTS TO STATES-

`(1) PURPOSE OF GRANTS- The Secretary shall make grants to States and the outlying areas, and provide funds to the Secretary of the Interior, to assist them to provide special education and related services to children with disabilities in accordance with this part.

`(2) MAXIMUM AMOUNT- The maximum amount available for awarding grants under this section for any fiscal year is--

`(A) the total number of children with disabilities in the 2002-2003 school year in the States who received special education and related services and who were--

`(i) aged 3 through 5, if the State was eligible for a grant under section 619; and

`(ii) aged 6 through 21; multiplied by

`(B) 40 percent of the average per-pupil expenditure in public elementary schools and secondary schools in the United States; adjusted by;

`(C) the rate of change in the sum of--

`(i) 85 percent of the change in the nationwide total of the population described in subsection (d)(3)(A)(i)(II); and

`(ii) 15 percent of the change in the nationwide total of the population described in subsection (d)(3)(A)(i)(III).

`(b) OUTLYING AREAS AND FREELY ASSOCIATED STATES-

`(1) FUNDS RESERVED- From the amount appropriated for any fiscal year under subsection (i), the Secretary shall reserve not more than 1 percent, which shall be used--

`(A) to provide assistance to the outlying areas in accordance with their respective populations of individuals aged 3 through 21; and

`(B) to provide each freely associated State a grant in the amount that such freely associated State received for fiscal year 2003 under this part, but only if the freely associated State meets the applicable requirements of this part, as well as the requirements of section 611(b)(2)(C) as such section was in effect on the day before the date of enactment of the Individuals with Disabilities Education Improvement Act of 2004.

`(2) SPECIAL RULE- The provisions of Public Law 95-134, permitting the consolidation of grants by the outlying areas, shall not apply to funds provided to the outlying areas or the freely associated States under this section.

`(3) DEFINITION- As used in this subsection, the term `freely associated States' means the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.

`(c) SECRETARY OF THE INTERIOR- From the amount appropriated for any fiscal year under subsection (i), the Secretary shall reserve 1.226 percent to provide assistance to the Secretary of the Interior in accordance with subsection (i).

`(d) ALLOCATIONS TO STATES-

`(1) IN GENERAL- After reserving funds for studies and evaluations under section 665, and for payments to the outlying areas, the freely associated States, and the Secretary of the Interior under subsections (b) and (c) for a fiscal year, the Secretary shall allocate the remaining amount among the States in accordance with this subsection.

`(2) SPECIAL RULE FOR USE OF FISCAL YEAR 1999 AMOUNT- If a State received any funds under this section for fiscal year 1999 on the basis of children aged 3 through 5, but does not make a free appropriate public education available to all children with disabilities aged 3 through 5 in the State in any subsequent fiscal year, the Secretary shall compute the State's amount for fiscal year 1999, solely for the purpose of calculating the State's allocation in that subsequent year under paragraph (3) or (4), by subtracting the amount allocated to the State for fiscal year 1999 on the basis of those children.

`(3) INCREASE IN FUNDS- If the amount available for allocations to States under paragraph (1) for a fiscal year is equal to or greater than the amount allocated to the States under this paragraph for the preceding fiscal year, those allocations shall be calculated as follows:

`(A) ALLOCATION OF INCREASE-

`(i) IN GENERAL- Except as provided in subparagraph (B), the Secretary shall allocate for the fiscal year--

`(I) to each State the amount the State received under this section for fiscal year 1999;

`(II) 85 percent of any remaining funds to States on the basis of the States' relative populations of children aged 3 through 21 who are of the same age as children with disabilities for whom the State ensures the availability of a free appropriate public education under this part; and

`(III) 15 percent of those remaining funds to States on the basis of the States' relative populations of children described in subclause (II) who are living in poverty.

`(ii) DATA- For the purpose of making grants under this paragraph, the Secretary shall use the most recent population data, including data on children living in poverty, that are available and satisfactory to the Secretary.

`(B) LIMITATIONS- Notwithstanding subparagraph (A), allocations under this paragraph shall be subject to the following:

`(i) PRECEDING YEAR ALLOCATION- No State's allocation shall be less than its allocation under this section for the preceding fiscal year.

`(ii) MINIMUM- No State's allocation shall be less than the greatest of--

`(I) the sum of--

`(aa) the amount the State received under this section for fiscal year 1999; and

`(bb) 1/3 of 1 percent of the amount by which the amount appropriated under subsection (i) for the fiscal year exceeds the amount appropriated for this section for fiscal year 1999;

`(II) the sum of--

`(aa) the amount the State received under this section for the preceding fiscal year; and

`(bb) that amount multiplied by the percentage by which the increase in the funds appropriated for this section from the preceding fiscal year exceeds 1.5 percent; or

`(III) the sum of--

`(aa) the amount the State received under this section for the preceding fiscal year; and

`(bb) that amount multiplied by 90 percent of the percentage increase in the amount appropriated for this section from the preceding fiscal year.

`(iii) MAXIMUM- Notwithstanding clause (ii), no State's allocation under this paragraph shall exceed the sum of--

`(I) the amount the State received under this section for the preceding fiscal year; and

`(II) that amount multiplied by the sum of 1.5 percent and the percentage increase in the amount appropriated under this section from the preceding fiscal year.

`(C) RATABLE REDUCTION- If the amount available for allocations under this paragraph is insufficient to pay those allocations in full, those allocations shall be ratably reduced, subject to subparagraph (B)(i).

`(4) DECREASE IN FUNDS- If the amount available for allocations to States under paragraph (1) for a fiscal year is less than the amount allocated to the States under this section for the preceding fiscal year, those allocations shall be calculated as follows:

`(A) AMOUNTS GREATER THAN FISCAL YEAR 1999 ALLOCATIONS- If the amount available for allocations is greater than the amount allocated to the States for fiscal year 1999, each State shall be allocated the sum of--

`(i) the amount the State received under this section for fiscal year 1999; and

`(ii) an amount that bears the same relation to any remaining funds as the increase the State received under this section for the preceding fiscal year over fiscal year 1999 bears to the total of all such increases for all States.

`(B) AMOUNTS EQUAL TO OR LESS THAN FISCAL YEAR 1999 ALLOCATIONS-

`(i) IN GENERAL- If the amount available for allocations under this paragraph is equal to or less than the amount allocated to the States for fiscal year 1999, each State shall be allocated the amount the State received for fiscal year 1999.

`(ii) RATABLE REDUCTION- If the amount available for allocations under this paragraph is insufficient to make the allocations described in clause (i), those allocations shall be ratably reduced.

`(e) STATE-LEVEL ACTIVITIES-

`(1) STATE ADMINISTRATION-

`(A) IN GENERAL- For the purpose of administering this part, including paragraph (3), section 619, and the coordination of activities under this part with, and providing technical assistance to, other programs that provide services to children with disabilities--

`(i) each State may reserve not more than the maximum amount the State was eligible to reserve for State administration for fiscal year 2003 or $800,000 (adjusted by the cumulative rate of inflation since fiscal year 2003 as measured by the percentage increase, if any, in the Consumer Price Index For All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor), whichever is greater; and

`(ii) each outlying area may reserve not more than 5 percent of the amount the outlying area receives under subsection (b) for any fiscal year or $35,000, whichever is greater.

`(B) PART C- Funds reserved under subparagraph (A) may be used for the administration of part C, if the State educational agency is the lead agency for the State under that part.

`(C) CERTIFICATION- Prior to expenditure of funds under this paragraph, the State shall certify to the Secretary that the arrangements to establish responsibility for services pursuant to section 612(a)(12)(A) are current as of the date of submission of the certification.

`(2) OTHER STATE-LEVEL ACTIVITIES-

`(A) STATE-LEVEL ACTIVITIES-

`(i) IN GENERAL- For the purpose of carrying out State-level activities, each State may reserve for each of the fiscal years 2004 and 2005, not more than 10 percent of the amount that remains after subtracting the amount reserved under paragraph (1) from the amount of the State's allocation under subsection (d) for fiscal years 2004 and 2005, respectively. For fiscal years 2006, 2007, 2008, and 2009, the State may reserve the maximum amount the State was eligible to reserve under the preceding sentence for fiscal year 2005 (adjusted by the cumulative rate of inflation since fiscal year 2005 as measured by the percentage increase, if any, in the Consumer Price Index for All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor).

`(ii) SMALL STATE ADJUSTMENT- Notwithstanding clause (i), in the case of a State for which the maximum amount reserved for State administration under paragraph (1) is not greater than $800,000 (as adjusted pursuant to paragraph (1)(A)(i)), the State may reserve for the purpose of carrying out State-level activities for each of the fiscal years 2004 and 2005, not more than 12 percent of the amount that remains after subtracting the amount reserved under paragraph (1) from the amount of the State's allocation under subsection (d) for fiscal years 2004 and 2005, respectively. For each of the fiscal years 2006, 2007, 2008, and 2009, each such State may reserve for such purpose the maximum amount the State was eligible to reserve under the preceding sentence for fiscal year 2005 (adjusted by the cumulative rate of inflation since fiscal year 2005 as measured by the percentage increase, if any, in the Consumer Price Index For All Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor).

`(B) REQUIRED ACTIVITIES- Funds reserved under subparagraph (A) shall be used to carry out the following activities:

`(i) For monitoring, enforcement and complaint investigation.

`(ii) To establish and implement the mediation, processes required by section 615(e)(1), including providing for the costs of mediators and support personnel;

`(iii) To support the State protection and advocacy system to advise and assist parents in the areas of--

`(I) dispute resolution and due process;

`(II) voluntary mediation; and

`(III) the opportunity to resolve complaints.

`(C) AUTHORIZED ACTIVITIES- Funds reserved under subparagraph (A) may be used to carry out the following activities:

`(i) For support and direct services, including technical assistance, personnel preparation, and professional development and training.

`(ii) To support paperwork reduction activities, including expanding the use of technology in the IEP process.

`(iii) To assist local educational agencies in providing positive behavioral interventions and supports and mental health services for children with disabilities.

`(iv) To improve the use of technology in the classroom by children with disabilities to enhance learning.

`(v) To support the development and use of technology, including universally designed technologies and assistive technology devices, to maximize accessibility to the general curriculum for children with disabilities.

`(vi) Development and implementation of transition programs, including coordination of services with agencies involved in supporting the transition of students with disabilities to post-secondary activities.

`(vii) To assist local educational agencies in meeting personnel shortages.

`(viii) To support capacity building activities and improve the delivery of services by local educational agencies to improve results for children with disabilities.

`(ix) Alternative programming for children who have been expelled from school, and services for children in correctional facilities, children enrolled in State-operated or State-supported schools, and children in charter schools.

`(x) To support the development and provision of appropriate accommodations for children with disabilities, or the development and provision of alternate assessments that are valid and reliable for assessing the performance of children with disabilities, in accordance with sections 1111(b) and 6111 of the Elementary and Secondary Education Act of 1965.

`(3) LOCAL EDUCATIONAL AGENCY RISK POOL-

`(A) IN GENERAL- For the purpose of assisting local educational agencies (and charter schools that are local educational agencies) in addressing the needs of high-need children and the unanticipated enrollment of other children eligible for services under this part, each State shall reserve for each of the fiscal years 2004 through 2009, 2 percent of the amount that remains after subtracting the amount reserved under paragraph (1) from the amount of the State's allocation under subsection (d) for each of the fiscal years 2004 through 2009, respectively, to--

`(i) establish a high-cost fund; and

`(ii) make disbursements from the high-cost fund to local educational agencies in accordance with this paragraph.

`(B) REQUIRED DISBURSEMENTS FROM THE FUND-

`(i) IN GENERAL- Each State educational agency shall make disbursements from the fund established under subparagraph (A) to local educational agencies to pay the percentage, described in subparagraph (D), of the costs of providing a free appropriate public education to high-need children.

`(ii) SPECIAL RULE- If funds reserved for a fiscal year under subparagraph (A) are insufficient to pay the percentage described in subparagraph (D) to assist all the local educational agencies having applications approved under subparagraph (C), then the State educational agency shall ratably reduce the amount paid to each local educational agency that receives a disbursement for that fiscal year.

`(C) APPLICATION- A local educational agency that desires a disbursement under this subsection shall submit an application to the State educational agency at such time, in such manner, and containing such information as the State educational agency may require. Such application shall include assurances that funds provided under this paragraph shall not be used to pay costs that otherwise would be reimbursable as medical assistance for a child with a disability under the State medicaid program under title XIX of the Social Security Act.

`(D) DISBURSEMENTS-

`(i) IN GENERAL- A State educational agency shall make a disbursement to a local educational agency that submits an application under subparagraph (C) in an amount that is equal to 75 percent of the costs that are in excess of 4 times the average per-pupil expenditure in the United States or in the State where the child resides (whichever average per-pupil expenditure is lower) associated with educating each high need child served by such local educational agency in a fiscal year for whom such agency desires a disbursement.

`(ii) APPROPRIATE COSTS- The costs associated with educating a high need child under clause (i) are only those costs associated with providing direct special education and related services to such child that are identified in such child's appropriately developed IEP.

`(E) LEGAL FEES- The disbursements under subparagraph (D) shall not support legal fees, court costs, or other costs associated with a cause of action brought on behalf of such child to ensure a free appropriate public education for such child.

`(F) PERMISSIBLE DISBURSEMENTS FROM REMAINING FUNDS- A State educational agency may make disbursements to local educational agencies from any funds that are remaining in the high cost fund after making the required disbursements under subparagraph (D) for a fiscal year for the following purposes:

`(i) To pay the costs associated with serving children with disabilities who moved into the areas served by such local agencies after the budget for the following school year had been finalized to assist the local educational agencies in providing a free appropriate public education for such children in such year.

`(ii) To compensate local educational agencies for extraordinary costs, as determined by the State, of any children eligible for services under this part due to--

`(I) unexpected enrollment or placement of children eligible for services under this part; or

`(II) a significant underestimate of the average cost of providing services to children eligible for services under this part.

`(G) REMAINING FUNDS- Funds reserved under subparagraph (A) in any fiscal year but not expended in that fiscal year pursuant to subparagraph (D) or subparagraph (F) shall--

`(i) be allocated to local educational agencies pursuant to subparagraphs (D) or (F) for the next fiscal year; or

`(ii) be allocated to local educational agencies in the same manner as funds are allocated to local educational agencies under subsection (f).

`(H) ASSURANCE OF A FREE APPROPRIATE PUBLIC EDUCATION- Nothing in this section shall be construed--

`(i) to limit or condition the right of a child with a disability who is assisted under this part to receive a free appropriate public education pursuant to section 612(a)(1) in a least restrictive environment pursuant to section 612(a)(5); or

`(ii) to authorize a State educational agency or local educational agency to indicate a limit on what is expected to be spent on the education of a child with a disability.

`(I) MEDICAID SERVICES NOT AFFECTED- Disbursements provided under this subsection shall not be used to pay costs that otherwise would be reimbursable as medical assistance for a child with a disability under the State medicaid program under title XIX of the Social Security Act.

`(J) DEFINITIONS- In this paragraph:

`(i) AVERAGE PER-PUPIL EXPENDITURE- The term `average per-pupil expenditure' has the meaning given the term in section 9101 of the Elementary and Secondary Education Act of 1965.

`(ii) HIGH-NEED CHILD- The term `high-need', when used with respect to a child with a disability, means a child with a disability for whom a free appropriate public education in a fiscal year costs more than 4 times the average per-pupil expenditure for such fiscal year.

`(K) SPECIAL RULE FOR RISK POOL AND HIGH-NEED ASSISTANCE PROGRAMS IN EFFECT AS OF JANUARY 1, 2003- Notwithstanding the provisions of subparagraphs (A) through (J), a State may use funds reserved pursuant to this paragraph for administering and implementing a placement-neutral cost-sharing and reimbursement program of high-need, low-incidence, emergency, catastrophic, or extraordinary aid to local educational agencies that provides services to students eligible under this part based on eligibility criteria for such programs that were operative on January 1, 2003.

`(4) INAPPLICABILITY OF CERTAIN PROHIBITIONS- A State may use funds the State reserves under paragraphs (1), (2), and (3) without regard to--

`(A) the prohibition on commingling of funds in section 612(a)(17)(B); and

`(B) the prohibition on supplanting other funds in section 612(a)(17)(C).

`(5) REPORT ON USE OF FUNDS- As part of the information required to be submitted to the Secretary under section 612, each State shall annually describe how amounts under this section--

`(A) will be used to meet the requirements of this Act; and

`(B) will be allocated among the activities described in this section to meet State priorities based on input from local educational agencies.

`(6) FLEXIBILITY IN USING FUNDS FOR PART C- Any State eligible to receive a grant under section 619 may use funds made available under paragraph (1)(A), subsection (f)(3), or section 619(f)(5) to develop and implement a State policy jointly with the lead agency under part C and the State educational agency to provide early intervention services (which shall include an educational component that promotes school readiness and incorporates pre-literacy, language, and numeracy skills) in accordance with part C to children with disabilities who are eligible for services under section 619 and who previously received services under part C until such children enter, or are eligible under State law to enter, kindergarten.

`(f) SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES-

`(1) SUBGRANTS REQUIRED- Each State that receives a grant under this section for any fiscal year shall distribute any funds the State does not reserve under subsection (e) to local educational agencies (including public charter schools that operate as local educational agencies) in the State that have established their eligibility under section 613 for use in accordance with this part.

`(2) PROCEDURE FOR ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES-

`(A) PROCEDURE- For each fiscal year for which funds are allocated to States under subsection (d), each State shall allocate funds under paragraph (1) as follows:

`(i) BASE PAYMENTS- The State shall first award each local educational agency described in paragraph (1) the amount the local educational agency would have received under this section for fiscal year 1999, if the State had distributed 75 percent of its grant for that year under section 611(d) as section 611(d) was then in effect.

`(ii) ALLOCATION OF REMAINING FUNDS- After making allocations under clause (i), the State shall--

`(I) allocate 85 percent of any remaining funds to those local educational agencies on the basis of the relative numbers of children enrolled in public and private elementary schools and secondary schools within the local educational agency's jurisdiction; and

`(II) allocate 15 percent of those remaining funds to those local educational agencies in accordance with their relative numbers of children living in poverty, as determined by the State educational agency.

`(3) REALLOCATION OF FUNDS- 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 local educational agency with State and local funds, the State educational agency may reallocate any portion of the funds under this part that are not needed by that local educational agency to provide a free appropriate public education to other local educational agencies in the State that are not adequately providing special education and related services to all children with disabilities residing in the areas served by those other local educational agencies.

`(g) DEFINITIONS- For the purpose of this section--

`(1) the term `average per-pupil expenditure in public elementary schools and secondary schools in the United States' means--

`(A) without regard to the source of funds--

`(i) the aggregate current expenditures, during the second fiscal year preceding the fiscal year for which the determination is made (or, if satisfactory data for that year are not available, during the most recent preceding fiscal year for which satisfactory data are available) of all local educational agencies in the 50 States and the District of Columbia; plus

`(ii) any direct expenditures by the State for the operation of those local educational agencies; divided by

`(B) the aggregate number of children in average daily attendance to whom those local educational agencies provided free public education during that preceding year; and

`(2) the term `State' means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.

`(h) USE OF AMOUNTS BY SECRETARY OF THE INTERIOR-

`(1) PROVISION OF AMOUNTS FOR ASSISTANCE-

`(A) IN GENERAL- The Secretary of Education shall provide amounts to the Secretary of the Interior to meet the need for assistance for the education of children with disabilities on reservations aged 5 through 21 who are enrolled in elementary schools and secondary schools for Indian children operated or funded by the Secretary of the Interior. The amount of such payment for any fiscal year shall be equal to 80 percent of the amount allotted under subsection (c) for that fiscal year.

`(B) CALCULATION OF NUMBER OF CHILDREN- In the case of Indian students aged 3 through 5 who are enrolled in programs affiliated with the Bureau of Indian Affairs (hereafter in this subsection referred to as `BIA') schools, and that are required by the States in which such schools are located to attain or maintain State accreditation, and which schools had such accreditation prior to the date of enactment of the Individuals with Disabilities Education Act Amendments of 1991, the school shall be allowed to count those children for the purpose of distribution of the funds provided under this paragraph to the Secretary of the Interior. The Secretary of the Interior shall be responsible for meeting all of the requirements of this part for these children, in accordance with paragraph (2).

`(C) ADDITIONAL REQUIREMENT- With respect to all other children aged 3 through 21 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 Secretary 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 evaluation activities) and 613;

`(B) includes a description of how the Secretary of the Interior will coordinate the provision of services under this part with local educational agencies, tribes and tribal organizations, and other private and Federal service providers;

`(C) includes an assurance that there are public hearings, adequate notice of such hearings, 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 Secretary of the Interior will provide such information as the Secretary of Education may require to comply with section 618;

`(E) includes an assurance that the Secretary of the Interior and the Secretary of Health and Human Services have entered into a memorandum of agreement, to be provided to the Secretary of Education, for the coordination of services, resources, and personnel between their respective Federal, State, and local offices and with State and local educational agencies and other entities to facilitate the provision of services to Indian children with disabilities 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 therapeutic measures, and (where appropriate) equipment and medical or personal supplies as needed for a child to remain in school or a program); and

`(F) includes an assurance that the Department of the Interior will cooperate with the Department of Education in its exercise of monitoring and oversight of this application, and any agreements entered into between the Secretary of the Interior and other entities under this part, and will fulfill its duties under this part.

`(3) APPLICABILITY- Section 616(a) shall apply to the information described in this paragraph.

`(4) PAYMENTS FOR EDUCATION AND SERVICES FOR INDIAN CHILDREN WITH DISABILITIES AGED 3 THROUGH 5-

`(A) IN GENERAL- With funds appropriated under subsection (i), the Secretary of Education shall make payments to the Secretary of the Interior to be distributed to tribes or tribal organizations (as defined under section 4 of the Indian Self-Determination and Education Assistance Act) or consortia of the above to provide for the coordination of assistance for special education and related services for children with disabilities aged 3 through 5 on reservations served by elementary schools and secondary schools for Indian children operated or funded by the Department of the Interior. The amount of such payments under subparagraph (B) for any fiscal year shall be equal to 20 percent of the amount allotted under subsection (c).

`(B) DISTRIBUTION OF FUNDS- The Secretary of the Interior shall distribute the total amount of the payment under subparagraph (A) by allocating to each tribe or tribal organization an amount based on the number of children with disabilities ages 3 through 5 residing on reservations as reported annually, divided by the total of those children served by all tribes or tribal organizations.

`(C) SUBMISSION OF INFORMATION- To receive a payment under this paragraph, the tribe or tribal organization shall submit such figures to the Secretary of the Interior as required to determine the amounts to be allocated under subparagraph (B). This information shall be compiled and submitted to the Secretary of Education.

`(D) USE OF FUNDS- The funds received by a tribe or tribal organization shall be used to assist in child find, screening, and other procedures for the early identification of children aged 3 through 5, parent training, and the provision of direct services. These activities may be carried out directly or through contracts or cooperative agreements with the BIA, local educational agencies, and other public or private nonprofit organizations. The tribe or tribal organization is encouraged to involve Indian parents in the development and implementation of these activities. The above entities shall, as appropriate, make referrals to local, State, or Federal entities for the provision of services or further diagnosis.

`(E) BIENNIAL REPORT- To be eligible to receive a grant pursuant to subparagraph (A), the tribe or tribal organization shall provide to the Secretary of the Interior a biennial report of activities undertaken under this paragraph, including the number of contracts and 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 year in which the report is made. The Secretary of the Interior shall include a summary of this information on a biennial basis in the report to the Secretary of Education required under this subsection. The Secretary of Education may require any additional information from the Secretary of the Interior.

`(F) PROHIBITIONS- None of the funds allocated under this paragraph may be used by the Secretary of the Interior for administrative purposes, including child count and the provision of technical assistance.

`(5) PLAN FOR COORDINATION OF SERVICES- The Secretary of the Interior shall develop and implement a plan for the coordination of services for all Indian children with disabilities residing on reservations covered under this Act. Such plan shall provide for the coordination of services benefiting these children from whatever source, including tribes, the Indian Health Service, other BIA divisions, and other Federal agencies. In developing the plan, the Secretary of the Interior shall consult with all interested and involved parties. The plan shall be based on the needs of the children and the system best suited for meeting those needs, and may involve the establishment of cooperative agreements between the BIA, other Federal agencies, and other entities. The plan shall also be distributed upon request to States, State and local educational agencies, and other agencies providing services to infants, toddlers, and children with disabilities, to tribes, and to other interested parties.

`(6) ESTABLISHMENT OF ADVISORY BOARD- To meet the requirements of section 612(a)(20), the Secretary of the Interior shall establish, under the BIA, an advisory board composed of individuals involved in or concerned with the education and provision of services to Indian infants, toddlers, children, and youth with disabilities, including Indians with 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 under section 641 in States having reservations, and other members representing the various divisions and entities of the BIA. The chairperson shall be selected by the Secretary of the Interior. The advisory board shall--

`(A) assist in the coordination of services within the BIA and with other local, State, and Federal agencies in the provision of education for infants, toddlers, and children with disabilities;

`(B) advise and assist the Secretary of the Interior in the performance of the Secretary's responsibilities described in this subsection;

`(C) develop and recommend policies concerning effective inter- and intra-agency collaboration, including modifications to regulations, and the elimination of barriers to inter- and intra-agency programs and activities;

`(D) provide assistance and disseminate information on best practices, effective program coordination strategies, and recommendations for improved educational programming for Indian infants, toddlers, and children with disabilities; and

`(E) provide assistance in the preparation of information required under paragraph (2)(D).

`(7) ANNUAL REPORTS-

`(A) IN GENERAL- The advisory board established under paragraph (6) shall prepare and submit to the Secretary of the Interior and to Congress an annual report containing a description of the activities of the advisory board for the preceding year.

`(B) AVAILABILITY- The Secretary of the Interior shall make available to the Secretary of Education the report described in subparagraph (A).

`(i) AUTHORIZATION OF APPROPRIATIONS- For the purpose of carrying out this part, other than section 619, there are authorized to be appropriated--

`(1) $12,358,376,571 for fiscal year 2005;

`(2) $14,648,647,143 for fiscal year 2006;

`(3) $16,938,917,714 for fiscal year 2007;

`(4) $19,229,188,286 for fiscal year 2008;

`(5) $21,519,458,857 for fiscal year 2009;

`(6) $23,809,729,429 for fiscal year 2010;

`(7) $26,100,000,000 for fiscal year 2011; and

`(8) such sums as may be necessary for fiscal year 2012 and each succeeding fiscal year.

`SEC. 612. STATE ELIGIBILITY.

`(a) IN GENERAL- A State is eligible for assistance under this part for a fiscal year if the State submits a plan that provides assurances to the Secretary that the State has in effect policies and procedures to ensure that the State meets each of the following conditions:

`(1) FREE APPROPRIATE PUBLIC EDUCATION-

`(A) IN GENERAL- A free appropriate public education is available to all children with disabilities residing in the State between the ages of 3 and 21, inclusive, including children with disabilities who have been suspended or expelled from school.

`(B) LIMITATION- The obligation to make a free appropriate public education available to all children with disabilities does not apply with respect to children--

`(i) aged 3 through 5 and 18 through 21 in a State to the extent that its application to those children would be inconsistent with State law or practice, or the order of any court, respecting the provision of public education to children in those age ranges; and

`(ii) aged 18 through 21 to the extent that State law does not require that special education and related services under this part be provided to children with disabilities who, in the educational placement prior to their incarceration in an adult correctional facility--

`(I) were not actually identified as being a child with a disability under section 602(3); or

`(II) did not have an individualized education program under this part.

`(C) STATE FLEXIBILITY- A State that provides early intervention services in accordance with part C to a child who is eligible for services under section 619, is not required to provide such child with a free appropriate public education.

`(2) FULL EDUCATIONAL OPPORTUNITY GOAL- The State has established a goal of providing full educational opportunity to all children with disabilities and a detailed timetable for accomplishing that goal.

`(3) CHILD FIND-

`(A) IN GENERAL- All children with disabilities residing in the State, including children with disabilities who are homeless children or are wards of the State and children with disabilities attending private schools, regardless of the severity of their disabilities, and who are in need of special education and related services, are identified, located, and evaluated and a practical method is developed and implemented to determine which children with disabilities are currently receiving needed special education and related services.

`(B) CONSTRUCTION- Nothing in this Act requires that children be classified by their disability so long as each child who has a disability listed in section 602 and who, by reason of that disability, needs special education and related services is regarded as a child with a disability under this part.

`(4) INDIVIDUALIZED EDUCATION PROGRAM- An individualized education program, or an individualized family service plan that meets the requirements of section 636(d), is developed, reviewed, and revised for each child with a disability in accordance with section 614(d).

`(5) LEAST RESTRICTIVE ENVIRONMENT-

`(A) IN GENERAL- To the maximum extent appropriate, children with disabilities, including children in public or private institutions or other care facilities, are educated with children who are not disabled, and special classes, separate schooling, or other removal of children with disabilities from the regular educational environment occurs only when the nature or 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.

`(B) ADDITIONAL REQUIREMENT-

`(i) IN GENERAL- A State funding mechanism shall not result in placements that violate the requirements of subparagraph (A), and a State shall not use a funding mechanism by which the State distributes funds on the basis of the type of setting in which a child is served that will result in the failure to provide a child with a disability a free appropriate public education according to the unique needs of the child as described in the child's IEP.

`(ii) ASSURANCE- If the State does not have policies and procedures to ensure compliance with clause (i), the State shall provide the Secretary an assurance that the State will revise the funding mechanism as soon as feasible to ensure that such mechanism does not result in such placements.

`(6) PROCEDURAL SAFEGUARDS-

`(A) IN GENERAL- Children with disabilities and their parents are afforded the procedural safeguards required by section 615.

`(B) ADDITIONAL PROCEDURAL SAFEGUARDS- Procedures to ensure that testing and evaluation materials and procedures utilized for the purposes of evaluation and placement of children with disabilities will be selected and administered so as not to be racially or culturally discriminatory. Such materials or procedures shall be provided and administered in the child's native language or mode of communication, unless it clearly is not feasible to do so, and no single procedure shall be the sole criterion for determining an appropriate educational program for a child.

`(7) EVALUATION- Children with disabilities are evaluated in accordance with subsections (a) and (b) of section 614.

`(8) CONFIDENTIALITY- Agencies in the State comply with section 617(c) (relating to the confidentiality of records and information).

`(9) TRANSITION FROM PART C TO PRESCHOOL PROGRAMS- Children participating in early-intervention programs assisted under part C, and who will participate in preschool programs assisted under this part, experience a smooth and effective transition to those preschool programs in a manner consistent with section 637(a)(8). By the third birthday of such a child, an individualized education program or, if consistent with sections 614(d)(2)(B) and 636(d), an individualized family service plan, has been developed and is being implemented for the child. The local educational agency will participate in transition planning conferences arranged by the designated lead agency under section 635(a)(10).

`(10) CHILDREN IN PRIVATE SCHOOLS-

`(A) CHILDREN ENROLLED IN PRIVATE SCHOOLS BY THEIR PARENTS-

`(i) IN GENERAL- To the extent consistent with the number and location of children with disabilities in the State who are enrolled by their parents in private elementary schools and secondary schools in the school district served by a local educational agency, provision is made for the participation of those children in the program assisted or carried out under this part by providing for such children special education and related services in accordance with the following requirements, unless the Secretary has arranged for services to those children under subsection (f):

`(I) Amounts to be expended for the provision of those services (including direct services to parentally placed children) by the local educational agency shall be equal to a proportionate amount of Federal funds made available under this part.

`(II) Such services may be provided to children with disabilities on the premises of private, including religious, schools, to the extent consistent with law.

`(III) Each local educational agency shall maintain in its records and provide to the State educational agency the number of children evaluated under this paragraph, the number of children determined to be children with disabilities, and the number of children served under this subsection.

`(ii) CHILD-FIND REQUIREMENT-

`(I) IN GENERAL- The requirements of paragraph (3) of this subsection (relating to child find) shall apply with respect to children with disabilities in the State who are enrolled in private, including religious, elementary schools and secondary schools. Such child find process shall be conducted in a comparable time period as for other students attending public schools in the local educational agency.

`(II) EQUITABLE PARTICIPATION- The child find process shall be designed to ensure the equitable participation of parentally placed private school children and an accurate count of such children.

`(III) ACTIVITIES- In carrying out this clause, the local educational agency, or where applicable, the State educational agency, shall undertake activities similar to those activities undertaken for its public school children.

`(IV) COST- The cost of carrying out this clause, including individual evaluations, may not be considered in determining whether a local education agency has met its obligations under clause (i).

`(iii) CONSULTATION- To ensure timely and meaningful consultation, a local educational agency, or where appropriate, a State educational agency, shall consult with representatives of children with disabilities who are parentally placed in private schools, during the design and development of special education and related services for these children, including consultation regarding--

`(I) the child find process and how parentally placed private school children suspected of having a disability can participate equitably, including how parents, teachers, and private school officials will be informed of the process;

`(II) the determination of the proportionate share of Federal funds available to serve parentally placed private school children with disabilities under this paragraph, including the determination of how the proportionate share of those funds were calculated;

`(III) the consultation process among the school district, private school officials, and parents of parentally placed private school children with disabilities, including how such process will operate throughout the school year to ensure that parentally placed children with disabilities identified through the child find process can meaningfully participate in special education and related services;

`(IV) how, where, and by whom special education and related services will be provided for parentally placed private school children, including a discussion of alternate service delivery mechanisms, how such services will be apportioned if funds are insufficient to serve all children, and how and when these decisions will be made; and

`(V) how, if the local educational agency disagrees with the views of the private school officials on the provision of services through a contract, the local educational agency shall provide to the private school officials a written explanation of the reasons why the local educational agency chose not to provide services through a contract.

`(iv) WRITTEN AFFIRMATION- When timely and meaningful consultation as required by this section has occurred, the local educational agency shall obtain a written affirmation signed by the representatives of participating private schools, and if such officials do not provide such affirmation within a reasonable period of time, the local educational agency shall forward the documentation of the consultation process to the State educational agency.

`(v) COMPLIANCE-

`(I) IN GENERAL- A private school official shall have the right to complain to the State educational agency that the local educational agency did not engage in consultation that was meaningful and timely, or did not give due consideration to the views of the private school official.

`(II) PROCEDURE- If the private school official wishes to complain, the official shall provide the basis of the noncompliance with this section by the local educational agency to the State educational agency, and the local educational agency shall forward the appropriate documentation to the State educational agency. If the private school official is dissatisfied with the decision of the State educational agency, such official may complain to the Secretary by providing the basis of the noncompliance with this section by the local educational agency to the Secretary, and the State educational agency shall forward the appropriate documentation to the Secretary.

`(vi) PROVISION OF EQUITABLE SERVICES-

`(I) DIRECT SERVICES- To the extent practicable, the local educational agency shall provide direct services to children with disabilities parentally placed in private schools.

`(II) DIRECTLY OR THROUGH CONTRACTS- A public agency may provide special education and related services directly or through contracts with public and private agencies, organizations, and institutions.

`(III) SECULAR, NEUTRAL, NONIDEOLOGICAL- Special education and related services provided to children with disabilities attending private schools, including materials and equipment, shall be secular, neutral, and nonideological.

`(vii) PUBLIC CONTROL OF FUNDS- The control of funds used to provide special education and related services under this section, and title to materials, equipment, and property purchased with those funds, shall be in a public agency for the uses and purposes provided in this Act, and a public agency shall administer the funds and property.

`(B) CHILDREN PLACED IN, OR REFERRED TO, PRIVATE SCHOOLS BY PUBLIC AGENCIES-

`(i) IN GENERAL- Children with disabilities in private schools and facilities are provided special education and related services, in accordance with an individualized education program, at no cost to their parents, if such children are placed in, or referred to, such schools or facilities by the State or appropriate local educational agency as the means of carrying out the requirements of this part or any other applicable law requiring the provision of special education and related services to all children with disabilities within such State.

`(ii) STANDARDS- In all cases described in clause (i), the State educational agency shall determine whether such schools and facilities meet standards that apply to State and local educational agencies and that children so served have all the rights the children would have if served by such agencies.

`(C) PAYMENT FOR EDUCATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS WITHOUT CONSENT OF OR REFERRAL BY THE PUBLIC AGENCY-

`(i) IN GENERAL- Subject to subparagraph (A), this part does not require a local educational agency to pay for the cost of education, including special education and related services, of a child with a disability at a private school or facility if that agency made a free appropriate public education available to the child and the parents elected to place the child in such private school or facility.

`(ii) REIMBURSEMENT FOR PRIVATE SCHOOL PLACEMENT- If the parents of a child with a disability, who previously received special education and related services under the authority of a public agency, enroll the child in a private elementary school or secondary school without the consent of or referral by the public agency, a court or a hearing officer may require the agency to reimburse the parents for the cost of that enrollment if the court or hearing officer finds that the agency had not made a free appropriate public education available to the child in a timely manner prior to that enrollment.

`(iii) LIMITATION ON REIMBURSEMENT- The cost of reimbursement described in clause (ii) may be reduced or denied--

`(I) if--

`(aa) at the most recent IEP meeting that the parents attended prior to removal of the child from the public school, the parents did not inform the IEP Team that they were rejecting the placement proposed by the public agency to provide a free appropriate public education to their child, including stating their concerns and their intent to enroll their child in a private school at public expense; or

`(bb) 10 business days (including any holidays that occur on a business day) prior to the removal of the child from the public school, the parents did not give written notice to the public agency of the information described in division (aa);

`(II) if, prior to the parents' removal of the child from the public school, the public agency informed the parents, through the notice requirements described in section 615(b)(3), of its intent to evaluate the child (including a statement of the purpose of the evaluation that was appropriate and reasonable), but the parents did not make the child available for such