ASSISTANCE FOR EDUCATION OF ALL HANDICAPPED CHILDREN.

SEC. 102. ASSISTANCE FOR EDUCATION OF ALL HANDICAPPED CHILDREN. (a) Allocations.— Section 611 of the Education of the Handicapped Act (20 U.S.C. 1411) is amended— 102 STAT. 3291 (1) in subsection (a)(2), by striking “Northern Mariana Islands” and inserting “Commonwealth of the Northern Mariana Islands”; (2) in subsection (a)(5)— (A) by striking “on the order of any court;” in subparagraph (A)(ii) and inserting “or the order of any court;”; (B) by striking “section 121” in subparagraph (A)(iii) and inserting “subpart 2 of part D of chapter 1 of title 1”; and (C) (i) by striking “five to seventeen,” in subparagraph (B) and inserting “three to seventeen,”; and (ii) by striking “him” in subparagraph (B) and inserting “the Secretary”; (3) in subsection (e)(i), by striking “Northern Mariana Islands” and inserting “Commonwealth of the Northern Mariana Islands”; (4) in subsection (f)(1), by striking “serviced” and inserting “served”; and (5) in subsection (f)(2)(B), by inserting a comma after “inclusive”. (b) Eligibility.— Section 612 of the Education of the Handicapped Act (20 U.S.C. 1412) is amended— (1) by moving paragraphs (1) through (7) 2 ems to the right, so that the left margin of each such paragraph is indented 4 ems; (2) in paragraph (2), by moving subparagraphs (A) through (E) 2 ems to the right, so that the left margin of each such paragraph is indented 6 ems; and (3) in paragraph (2)(E), by striking “the amendment” the first place it appears and inserting “any amendment”. (c) State Plans.— Section 613 of the Education of the Handicapped Act (20 U.S.C. 1413) is amended— (1) in the first sentence of subsection (a), by striking “he” and inserting “the Secretary”; (2) in subsection (a)(2), by striking “section 121” and all that follows through “(20 U.S.C. 1262(a)(4)(B)),” and inserting “subpart 2 of part D of chapter 1 of title I of the Elementary and Secondary Education Act of 1965 and section 202(1) of the Carl D. Perkins Vocational Education Act,”; (3) in subsection (a)(3), by striking “a description of programs and procedures” and all that follows through the semicolon at the end and inserting the following: “a description of programs and procedures for— “(A) the development and implementation of a comprehensive system of personnel development, which shall include— “(i) inservice training of general and special educational instructional and support personnel, “(ii) detailed procedures to assure that all personnel necessary to carry out the purposes of this Act are appropriately and adequately prepared and trained, and “(iii) effective procedures for acquiring and disseminating to teachers and administrators of programs for handicapped children significant information derived from educational research, demonstration, and similar projects, and “(B) adopting, where appropriate, promising educational practices and materials developed through such projects;”; 102 STAT. 3292 (4) by amending subsection (a)(4)(B) to read as follows: “(B) that— “(i) handicapped children in private schools and facilities will be provided special education and related services (in conformance with an individualized education program as required by this part) at no cost to their parents or guardian, 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 handicapped children within such State; and “(ii) in all such instances, the State educational agency shall determine whether such schools and facilities meet standards that apply to State and local educational agencies and that children so served have all the rights they would have if served by such agencies;”; (5) by amending subsection (a)(7) to read as follows: “(7) provide for— “(A) making such reports in such form and containing such information as the Secretary may require to carry out the Secretary’s functions under this part, and “(B) keeping such records and affording such access thereto as the Secretary may find necessary to assure the correctness and verification of such reports and proper disbursement of Federal funds under this part;”; (6) in subsection (a)(9), by striking “under this part” the first place it appears and all that follows through the semicolon at the end and inserting the following: “under this part— “(A) will not be commingled with State funds, and “(B) will be so used as to supplement and increase the level of Federal, State, and local funds (including funds that are not under the direct control of State or local educational agencies) expended for special education and related services provided to handicapped children under this part and in no case to supplant such Federal, State, and local funds, except that, where the State provides clear and convincing evidence that all handicapped children have available to them a free appropriate public education, the Secretary may waive in part the requirement of this subparagraph if the Secretary concurs with the evidence provided by the State;”; (7) in subsection (a)(12), by striking “administrators of programs” and all that follows through the semicolon at the end and inserting the following: “administrators of programs for handicapped children, which— “(A) advises the State educational agency of unmet needs within the State in the education of handicapped children, “(B) comments publicly on any rules or regulations proposed for issuance by the State regarding the education of handicapped children and the procedures for distribution of funds under this part, and “(C) assists the State in developing and reporting such data and evaluations as may assist the Secretary in the performance of the responsibilities of the Secretary under section 618;”; 102 STAT. 3293 (8) in subsection (a)(13), by striking “appropriate State and local agencies” and all that follows through the period at the end and inserting the following: “appropriate State and local agencies to— “(A) define the financial responsibility of each agency for providing handicapped children and youth with free appropriate public education, and “(B) resolve interagency disputes, including procedures under which local educational agencies may initiate proceedings under the agreement in order to secure reimbursement from other agencies or otherwise implement the provisions of the agreement; and”; (9) in subsection (a)(14)— (A) by inserting “set forth” after the paragraph designation; and (B) in subparagraph (A), by striking “he or she is” and inserting “such personnel are”; (10) in subsection (c)— (A) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; (B) by inserting “(1)” after the subsection designation; (C) by indenting the first line of the matter following subparagraph (B) (as redesignated by paragraph (1) of this subsection) 2 ems to the right and designating such matter as paragraph (2); and (D) by striking “the preceding sentence” where it appears in paragraph (2) (as designated by subparagraph (C) of this paragraph) and inserting “paragraph (1)”; (11) in subsection (d)(3)(A), by striking “his” and inserting “the Secretary’s”; (12) in subsection (d)(3)(B)— (A) by striking “he” and inserting “the Secretary”; and (B) by striking “his” and inserting “the Secretary’s”; (13) in subsection (d)(3)(C), by striking “his” in the first sentence and inserting “the Secretary’s”; and (14) in subsection (e), by striking “; and” at the end and inserting a period. (d) Local Educational Agency Applications.— Section 614 of the Education of the Handicapped Act (20 U.S.C. 1414) is amended— (1) by amending subsection (a)(2) to read as follows: “(2) provide satisfactory assurance that— “(A) the control of funds provided under this part, and title to property derived from such funds, shall be in a public agency for the uses and purposes provided in this part, and that a public agency will administer such funds and property; “(B) Federal funds expended by local educational agencies and intermediate educational units for programs under this part— “(i) shall be used to pay only the excess costs directly attributable to the education of handicapped children; and “(ii) shall be used to supplement and, to the extent practicable, increase the level of State and local funds expended for the education of handicapped children, and in no case to supplant such State and local funds; and 102 STAT. 3294 “(C) State and local funds will be used in the jurisdiction of the local educational agency or intermediate educational unit to provide services in program areas that, taken as a whole, are at least comparable to services being provided in areas of such jurisdiction that are not receiving funds under this part;”; (2) by amending subsection (a)(3) to read as follows: “(3) provide for— “(A) furnishing such information (which, in the case of reports relating to performance, is in accordance with specific performance criteria related to program objectives), as may be necessary to enable the State educational agency to perform its duties under this part, including information relating to the educational achievement of handicapped children participating in programs carried out under this part; and “(B) keeping such records, and affording such access to such records, as the State educational agency may find necessary to assure the correctness and verification of such information furnished under subparagraph (A);”; and (3) in subsection (a)(5)— (A) by striking “establish,” and inserting “establish”; and (B) by inserting a comma after “if appropriate”. (e) Procedural Safeguards.— Section 615 of the Education of the Handicapped Act (20 U.S.C. 1415) is amended— (1) in subsection (b)(1)(D), by striking “inform” and inserting “informs”; and (2) in subsection (d), by striking “shall be accorded” and all that follows through the period at the end and inserting the following: “shall be accorded— “(1) the right to be accompanied and advised by counsel and by individuals with special knowledge or training with respect to the problems of handicapped children, “(2) the right to present evidence and confront, cross-examine, and compel the attendance of witnesses, “(3) the right to a written or electronic verbatim record of such hearing, and “(4) the right to written findings of fact and decisions (which findings and decisions shall be made available to the public consistent with the requirements of section 617(c) and shall also be transmitted to the advisory panel established pursuant to section 613(a)(12)).”. (f) Withholding and Judicial Review.— Section 616 of the Education of the Handicapped Act (20 U.S.C. 1416) is amended— (1) in subsection (a)— (A) by striking “pursuant to the State plan” and all that follows through “If the Secretary withholds” and inserting the following: “pursuant to the State plan, the Secretary— “(A) shall, after notifying the State educational agency, withhold any further payments to the State under this part, and “(B) may, after notifying the State educational agency, withhold further payments to the State under the Federal programs specified in section 613(a)(2) within the Secretary’s jurisdiction, to the extent that funds under such programs are available for the provision of assistance for the education of handicapped children. 102 STAT. 3295 If the Secretary withholds”; (B) by striking “he” in the second sentence and inserting “the Secretary”; (C) by striking “his jurisdiction” in the penultimate sentence and inserting “the Secretary’s jurisdiction”; and (2) in subsection (b)(1), by striking “on which he based his action” and inserting “upon which the Secretary’s action was based”; and (3) in subsection (b)(2), by striking “his” and inserting “the Secretary’s”. (g) Administration.— Section 617 of the Education of the Handicapped Act (20 U.S.C. 1417) is amended— (1) in subsection (a)(1), by striking “his” and inserting “the Secretary’s”; (2) in subsection (a)(1)(D), by inserting after “1975” the following: “and every year thereafter”; and (3) in subsection (d), by striking “his” and inserting “the Secretary’s”. (h) Evaluation.— Section 618 of the Education of the Handicapped Act (20 U.S.C. 1418) is amended— (1) by amending subsection (a) to read as follows: “(a) The Secretary shall, directly or by grant, contract, or cooperative agreement, collect data and conduct studies, investigations, and evaluations— “(1) to assess progress in the implementation of this Act; “(2) to assess the impact and effectiveness of State and local efforts, and efforts by the Secretary of the Interior, to provide— “(A) free appropriate public education to handicapped children and youth; and “(B) early intervention services to handicapped infants and toddlers; and “(3) to provide— “(A) Congress with information relevant to policymaking; and “(B) State, local, and Federal agencies, including the Department of the Interior, with information relevant to program management, administration, and effectiveness with respect to such education and early intervention services.’; (2) in subsection (b)(1), by striking “intervention services” and all that follows through the comma at the end and inserting the following: “intervention services— “(A) in age groups 0–2 and 3–5, and “(B) in age groups 6–11, 12–17, and 18–21, by disability category,”; (3) in subsection (b)(3), by striking “or otherwise” and all that follows through the comma at the end and inserting the following: “or otherwise— “(A) in age group 3–5, and “(B) in age groups 6–11, 12–17, and 18–21, by disability category and anticipated services for the next year,”; (4) in subsection (b)(6), by striking “handicapped children and youth” and all that follows through the period at the end and inserting the following: “handicapped children and youth— “(A) in age group 3–5, and “(B) in age groups 6–11, 12–17, and 18–21, and by disability category.”; 102 STAT. 3296 (5) in subsection (d)(4), by striking “resources” and inserting “resource”; (6) in subsection (f)(4), by striking “a free appropriate public education” and all that follows through the period at the end and inserting the following: “a free appropriate public education to— “(A) handicapped infants, toddlers, children, and youth in rural areas, “(B) handicapped migrants, “(C) handicapped Indians (particularly programs operated under section 611(0), “(D) handicapped Native Hawaiian (and other native Pacific basin) children and youth, and “(E) handicapped infants, toddlers, children, and youth with limited English proficiency.”; and (7) in subsection (f)(5)— (A) by striking “National Council for the Handicapped” and inserting “National Council on Disability”; and (B) by inserting “the Secretary shall include” before “a description of”. (i) Preschool Grants.— Section 619 of the Education of the Handicapped Act (20 U.S.C. 1419) is amended— (1) in subsection (a)(2)(A)(ii)(II), by inserting “increase in the” after “multiplied by the estimated”; (2) in subsection (a)(2)(E), by striking “clause (ii)(II) of the applicable subparagraph,”; (3) in subsection (b)(2)(A), by striking “$656,000,000, and” and inserting “$656,000,000, or”; (4) in subsection (c)(3)(B)— (A) by striking “the amount available under subsection (a)(2)(A)(ii)(II)” and inserting “the amount of such funds”; and (B) by striking “aggregate number of handicapped children” and ail that follows through “related services” and inserting “aggregate number of such children”; and (5) by adding at the end the following new subsection: “(f) Notwithstanding any other provision of law, unless enacted in express limitation of this subsection, amounts appropriated under this section for fiscal years 1987 and 1988 and received by a State whose allotment for the succeeding fiscal year is adjusted downwards under subsection (a)(2)(E) shall remain available for obligation by such State, and by local educational agencies and intermediate educational units in such State, during the 2 fiscal years succeeding the fiscal year for which such amounts were appropriated.”.