 
         CHAPTER 33--EDUCATION OF INDIVIDUALS WITH DISABILITIES
 
      SUBCHAPTER II--ASSISTANCE FOR EDUCATION OF ALL CHILDREN WITH 
                              DISABILITIES
 
Sec. 1411. 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 subchapter.

                         (2) Maximum amounts

        The maximum amount of the grant a State may receive under this 
    section for any fiscal year is--
            (A) the number of children with disabilities in the State 
        who are receiving special education and related services--
                (i) aged 3 through 5 if the State is eligible for a 
            grant under section 1419 of this title; and
                (ii) aged 6 through 21; multiplied by

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

(b) Outlying areas and freely associated States

                         (1) Funds reserved

        From the amount appropriated for any fiscal year under 
    subsection (j) of this section, the Secretary shall reserve not more 
    than one 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) for fiscal years 1998 through 2001, to carry out the 
        competition described in paragraph (2), except that the amount 
        reserved to carry out that competition shall not exceed the 
        amount reserved for fiscal year 1996 for the competition under 
        this subchapter described under the heading ``SPECIAL 
        EDUCATION'' in Public Law 104-134.

             (2) Limitation for freely associated States

        (A) Competitive grants

            The Secretary shall use funds described in paragraph (1)(B) 
        to award grants, on a competitive basis, to Guam, American 
        Samoa, the Commonwealth of the Northern Mariana Islands, and the 
        freely associated States to carry out the purposes of this 
        subchapter.

        (B) Award basis

            The Secretary shall award grants under subparagraph (A) on a 
        competitive basis, pursuant to the recommendations of the 
        Pacific Region Educational Laboratory in Honolulu, Hawaii. Those 
        recommendations shall be made by experts in the field of special 
        education and related services.

        (C) Assistance requirements

            Any freely associated State that wishes to receive funds 
        under this subchapter shall include, in its application for 
        assistance--
                (i) information demonstrating that it will meet all 
            conditions that apply to States under this subchapter;
                (ii) an assurance that, notwithstanding any other 
            provision of this subchapter, it will use those funds only 
            for the direct provision of special education and related 
            services to children with disabilities and to enhance its 
            capacity to make a free appropriate public education 
            available to all children with disabilities;
                (iii) the identity of the source and amount of funds, in 
            addition to funds under this subchapter, that it will make 
            available to ensure that a free appropriate public education 
            is available to all children with disabilities within its 
            jurisdiction; and
                (iv) such other information and assurances as the 
            Secretary may require.

        (D) Termination of eligibility

            Notwithstanding any other provision of law, the freely 
        associated States shall not receive any funds under this 
        subchapter for any program year that begins after September 30, 
        2001.

        (E) Administrative costs

            The Secretary may provide not more than five percent of the 
        amount reserved for grants under this paragraph to pay the 
        administrative costs of the Pacific Region Educational 
        Laboratory under subparagraph (B).

                           (3) Limitation

        An outlying area is not eligible for a competitive award under 
    paragraph (2) unless it receives assistance under paragraph (1)(A).

                          (4) 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 those areas or to the freely associated States 
    under this section.

             (5) Eligibility for discretionary programs

        The freely associated States shall be eligible to receive 
    assistance under part B of subchapter IV of this chapter until 
    September 30, 2001.

              (6) ``Freely associated States'' defined

        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 
(j) of this section, the Secretary shall reserve 1.226 percent to 
provide assistance to the Secretary of the Interior in accordance with 
subsection (i) of this section.

(d) Allocations to States

                           (1) In general

        After reserving funds for studies and evaluations under section 
    1474(e) of this title, and for payments to the outlying areas and 
    the Secretary of the Interior under subsections (b) and (c) of this 
    section, the Secretary shall allocate the remaining amount among the 
    States in accordance with paragraph (2) or subsection (e) of this 
    section, as the case may be.

                         (2) Interim formula

        Except as provided in subsection (e) of this section, the 
    Secretary shall allocate the amount described in paragraph (1) among 
    the States in accordance with section 611(a)(3), (4), and (5) and 
    (b)(1), (2), and (3) of this Act, as in effect prior to June 4, 
    1997, except that the determination of the number of children with 
    disabilities receiving special education and related services under 
    such section 611(a)(3) may, at the State's discretion, be calculated 
    as of the last Friday in October or as of December 1 of the fiscal 
    year for which the funds are appropriated.

(e) Permanent formula

                   (1) Establishment of base year

        The Secretary shall allocate the amount described in subsection 
    (d)(1) of this section among the States in accordance with this 
    subsection for each fiscal year beginning with the first fiscal year 
    for which the amount appropriated under subsection (j) of this 
    section is more than $4,924,672,200.

                        (2) Use of base year

        (A) ``Base year'' defined

            As used in this subsection, the term ``base year'' means the 
        fiscal year preceding the first fiscal year in which this 
        subsection applies.

        (B) Special rule for use of base year amount

            If a State received any funds under this section for the 
        base year 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 
        base year amount, 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 the 
        base year on the basis of those children.

                        (3) Increase in funds

        If the amount available for allocations to States under 
    paragraph (1) 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)(i) Except as provided in subparagraph (B), the Secretary 
        shall--
                (I) allocate to each State the amount it received for 
            the base year;
                (II) allocate 85 percent of any remaining funds to 
            States on the basis of their 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 subchapter; and
                (III) allocate 15 percent of those remaining funds to 
            States on the basis of their relative populations of 
            children described in subclause (II) who are living in 
            poverty.

            (ii) For the purpose of making grants under this paragraph, 
        the Secretary shall use the most recent population data, 
        including data on children living in poverty, that are available 
        and satisfactory to the Secretary.
            (B) Notwithstanding subparagraph (A), allocations under this 
        paragraph shall be subject to the following:
                (i) No State's allocation shall be less than its 
            allocation for the preceding fiscal year.
                (ii) No State's allocation shall be less than the 
            greatest of--
                    (I) the sum of--
                        (aa) the amount it received for the base year; 
                    and
                        (bb) one third of one percent of the amount by 
                    which the amount appropriated under subsection (j) 
                    of this section exceeds the amount appropriated 
                    under this section for the base year;

                    (II) the sum of--
                        (aa) the amount it received for the preceding 
                    fiscal year; and
                        (bb) that amount multiplied by the percentage by 
                    which the increase in the funds appropriated from 
                    the preceding fiscal year exceeds 1.5 percent; or

                    (III) the sum of--
                        (aa) the amount it received for the preceding 
                    fiscal year; and
                        (bb) that amount multiplied by 90 percent of the 
                    percentage increase in the amount appropriated from 
                    the preceding fiscal year.

                (iii) Notwithstanding clause (ii), no State's allocation 
            under this paragraph shall exceed the sum of--
                    (I) the amount it received for the preceding fiscal 
                year; and
                    (II) that amount multiplied by the sum of 1.5 
                percent and the percentage increase in the amount 
                appropriated.

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

                        (4) Decrease in funds

        If the amount available for allocations to States under 
    paragraph (1) is less than the amount allocated to the States under 
    this section for the preceding fiscal year, those allocations shall 
    be calculated as follows:
            (A) If the amount available for allocations is greater than 
        the amount allocated to the States for the base year, each State 
        shall be allocated the sum of--
                (i) the amount it received for the base year; and
                (ii) an amount that bears the same relation to any 
            remaining funds as the increase the State received for the 
            preceding fiscal year over the base year bears to the total 
            of all such increases for all States.

            (B)(i) If the amount available for allocations is equal to 
        or less than the amount allocated to the States for the base 
        year, each State shall be allocated the amount it received for 
        the base year.
            (ii) If the amount available is insufficient to make the 
        allocations described in clause (i), those allocations shall be 
        ratably reduced.

(f) State-level activities

                             (1) General

        (A) Each State may retain not more than the amount described in 
    subparagraph (B) for administration and other State-level activities 
    in accordance with paragraphs (2) and (3).
        (B) For each fiscal year, the Secretary shall determine and 
    report to the State educational agency an amount that is 25 percent 
    of the amount the State received under this section for fiscal year 
    1997, cumulatively adjusted by the Secretary for each succeeding 
    fiscal year by the lesser of--
            (i) the percentage increase, if any, from the preceding 
        fiscal year in the State's allocation under this section; or
            (ii) the rate of inflation, as measured by the percentage 
        increase, if any, from the preceding fiscal year in the Consumer 
        Price Index For All Urban Consumers, published by the Bureau of 
        Labor Statistics of the Department of Labor.

        (C) A State may use funds it retains under subparagraph (A) 
    without regard to--
            (i) the prohibition on commingling of funds in section 
        1412(a)(18)(B) of this title; and
            (ii) the prohibition on supplanting other funds in section 
        1412(a)(18)(C) of this title.

                      (2) State administration

        (A) For the purpose of administering this subchapter, including 
    section 1419 of this title (including the coordination of activities 
    under this subchapter with, and providing technical assistance to, 
    other programs that provide services to children with 
    disabilities)--
            (i) each State may use not more than twenty percent of the 
        maximum amount it may retain under paragraph (1)(A) for any 
        fiscal year or $500,000 (adjusted by the cumulative rate of 
        inflation since fiscal year 1998, 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 use up to five percent of the 
        amount it receives under this section for any fiscal year or 
        $35,000, whichever is greater.

        (B) Funds described in subparagraph (A) may also be used for the 
    administration of subchapter III of this chapter, if the State 
    educational agency is the lead agency for the State under that 
    subchapter.

                  (3) Other State-level activities

        Each State shall use any funds it retains under paragraph (1) 
    and does not use for administration under paragraph (2) for any of 
    the following:
            (A) Support and direct services, including technical 
        assistance and personnel development and training.
            (B) Administrative costs of monitoring and complaint 
        investigation, but only to the extent that those costs exceed 
        the costs incurred for those activities during fiscal year 1985.
            (C) To establish and implement the mediation process 
        required by section 1415(e) of this title, including providing 
        for the costs of mediators and support personnel.
            (D) To assist local educational agencies in meeting 
        personnel shortages.
            (E) To develop a State Improvement Plan under part A of 
        subchapter IV of this chapter.
            (F) Activities at the State and local levels to meet the 
        performance goals established by the State under section 
        1412(a)(16) of this title and to support implementation of the 
        State Improvement Plan under part A of subchapter IV of this 
        chapter if the State receives funds under that part.
            (G) To supplement other amounts used to develop and 
        implement a Statewide coordinated services system designed to 
        improve results for children and families, including children 
        with disabilities and their families, but not to exceed one 
        percent of the amount received by the State under this section. 
        This system shall be coordinated with and, to the extent 
        appropriate, build on the system of coordinated services 
        developed by the State under subchapter III of this chapter.
            (H) For subgrants to local educational agencies for the 
        purposes described in paragraph (4)(A).

    (4)(A) Subgrants to local educational agencies for capacity-
                          building and improvement

        In any fiscal year in which the percentage increase in the 
    State's allocation under this section exceeds the rate of inflation 
    (as measured by the percentage increase, if any, from the preceding 
    fiscal year in the Consumer Price Index For All Urban Consumers, 
    published by the Bureau of Labor Statistics of the Department of 
    Labor), each State shall reserve, from its allocation under this 
    section, the amount described in subparagraph (B) to make subgrants 
    to local educational agencies, unless that amount is less than 
    $100,000, to assist them in providing direct services and in making 
    systemic change to improve results for children with disabilities 
    through one or more of the following:
            (i) Direct services, including 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.
            (ii) Addressing needs or carrying out improvement strategies 
        identified in the State's Improvement Plan under part A of 
        subchapter IV of this chapter.
            (iii) Adopting promising practices, materials, and 
        technology, based on knowledge derived from education research 
        and other sources.
            (iv) Establishing, expanding, or implementing interagency 
        agreements and arrangements between local educational agencies 
        and other agencies or organizations concerning the provision of 
        services to children with disabilities and their families.
            (v) Increasing cooperative problem-solving between parents 
        and school personnel and promoting the use of alternative 
        dispute resolution.

                        (B) Maximum subgrant

        For each fiscal year, the amount referred to in subparagraph (A) 
    is--
            (i) the maximum amount the State was allowed to retain under 
        paragraph (1)(A) for the prior fiscal year, or for fiscal year 
        1998, 25 percent of the State's allocation for fiscal year 1997 
        under this section; multiplied by
            (ii) the difference between the percentage increase in the 
        State's allocation under this section and the rate of inflation, 
        as measured by the percentage increase, if any, from the 
        preceding fiscal year in the Consumer Price Index For All Urban 
        Consumers, published by the Bureau of Labor Statistics of the 
        Department of Labor.

                     (5) Report on use of funds

        As part of the information required to be submitted to the 
    Secretary under section 1412 of this title, each State shall 
    annually describe--
            (A) how amounts retained under paragraph (1) will be used to 
        meet the requirements of this subchapter;
            (B) how those amounts will be allocated among the activities 
        described in paragraphs (2) and (3) to meet State priorities 
        based on input from local educational agencies; and
            (C) the percentage of those amounts, if any, that will be 
        distributed to local educational agencies by formula.

(g) 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 it does not retain under 
    subsection (f) of this section (at least 75 percent of the grant 
    funds) to local educational agencies in the State that have 
    established their eligibility under section 1413 of this title, and 
    to State agencies that received funds under section 614A(a) of this 
    Act for fiscal year 1997, as then in effect, and have established 
    their eligibility under section 1413 of this title, for use in 
    accordance with this subchapter.

            (2) Allocations to local educational agencies

        (A) Interim procedure

            For each fiscal year for which funds are allocated to States 
        under subsection (d)(2) of this section, each State shall 
        allocate funds under paragraph (1) in accordance with section 
        611(d) of this Act, as in effect prior to June 4, 1997.

        (B) Permanent procedure

            For each fiscal year for which funds are allocated to States 
        under subsection (e) of this section, each State shall allocate 
        funds under paragraph (1) as follows:
            (i) Base payments

                The State shall first award each agency described in 
            paragraph (1) the amount that agency would have received 
            under this section for the base year, as defined in 
            subsection (e)(2)(A) of this section, if the State had 
            distributed 75 percent of its grant for that year under 
            section 611(d), as 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 agencies on the basis of the relative numbers of 
                children enrolled in public and private elementary and 
                secondary schools within the agency's jurisdiction; and
                    (II) allocate 15 percent of those remaining funds to 
                those agencies in accordance with their relative numbers 
                of children living in poverty, as determined by the 
                State educational agency.

                 (3) Former chapter 1 State agencies

        (A) To the extent necessary, the State--
            (i) shall use funds that are available under subsection 
        (f)(1)(A) of this section to ensure that each State agency that 
        received fiscal year 1994 funds under subpart 2 of part D of 
        chapter 1 of title I of the Elementary and Secondary Education 
        Act of 1965 receives, from the combination of funds under 
        subsection (f)(1)(A) of this section and funds provided under 
        paragraph (1) of this subsection, an amount equal to--
                (I) the number of children with disabilities, aged 6 
            through 21, to whom the agency was providing special 
            education and related services on December 1 of the fiscal 
            year for which the funds were appropriated, subject to the 
            limitation in subparagraph (B); multiplied by
                (II) the per-child amount provided under such subpart 
            for fiscal year 1994; and

            (ii) may use those funds to ensure that each local 
        educational agency that received fiscal year 1994 funds under 
        that subpart for children who had transferred from a State-
        operated or State-supported school or program assisted under 
        that subpart receives, from the combination of funds available 
        under subsection (f)(1)(A) of this section and funds provided 
        under paragraph (1) of this subsection, an amount for each such 
        child, aged 3 through 21 to whom the agency was providing 
        special education and related services on December 1 of the 
        fiscal year for which the funds were appropriated, equal to the 
        per-child amount the agency received under that subpart for 
        fiscal year 1994.

        (B) The number of children counted under subparagraph (A)(i)(I) 
    shall not exceed the number of children aged 3 through 21 for whom 
    the agency received fiscal year 1994 funds under subpart 2 of part D 
    of chapter 1 of title I of the Elementary and Secondary Education 
    Act of 1965.

                      (4) 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 agency with State and local funds, the State 
    educational agency may reallocate any portion of the funds under 
    this subchapter that are not needed by that local agency to provide 
    a free appropriate public education to other local educational 
    agencies in the State that are not adequately providing special 
    education and related services to all children with disabilities 
    residing in the areas they serve.

(h) Definitions

    For the purpose of this section--
        (1) the term ``average per-pupil expenditure in public 
    elementary and secondary schools in the United States'' means--
            (A) without regard to the source of funds--
                (i) the aggregate current 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 agencies; divided by

            (B) the aggregate number of children in average daily 
        attendance to whom those 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.

(i) 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 to 21, inclusive, enrolled in elementary and secondary schools 
        for Indian children operated or funded by the Secretary of the 
        Interior. The amount of such payment for any fiscal year shall 
        be equal to 80 percent of the amount allotted under subsection 
        (c) of this section for that fiscal year.

        (B) Calculation of number of children

            In the case of Indian students aged 3 to 5, inclusive, 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 have such accreditation prior to October 7, 
        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 subchapter for these children, in 
        accordance with paragraph (2).

        (C) Additional requirement

            With respect to all other children aged 3 to 21, inclusive, 
        on reservations, the State educational agency shall be 
        responsible for ensuring that all of the requirements of this 
        subchapter 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 1412 (including monitoring and evaluation 
        activities) and 1413 of this title;
            (B) includes a description of how the Secretary of the 
        Interior will coordinate the provision of services under this 
        subchapter 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 1418 of this title;
            (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 subchapter, and will 
        fulfill its duties under this subchapter.

    Section 1416(a) of this title shall apply to the information 
    described in this paragraph.

    (3) Payments for education and services for Indian children 
                     with disabilities aged 3 through 5

        (A) In general

            With funds appropriated under subsection (j) of this 
        section, 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 450b of title 25) 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 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) of this section.

        (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 one 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.

                (4) 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 chapter. 
    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. It shall be based on the 
    needs of the children and the system best suited for meeting those 
    needs, and may involve the establishment of cooperative agreements 
    between the BIA, other Federal agencies, and other entities. The 
    plan shall also be distributed upon request to States, State and 
    local educational agencies, and other agencies providing services to 
    infants, toddlers, and children with disabilities, to tribes, and to 
    other interested parties.

                 (5) Establishment of advisory board

        To meet the requirements of section 1412(a)(21) of this title, 
    the Secretary of the Interior shall establish, not later than 6 
    months after June 4, 1997, 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 1441 of this title 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).

                         (6) Annual reports

        (A) In general

            The advisory board established under paragraph (5) shall 
        prepare and submit to the Secretary of the Interior and to the 
        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).

(j) Authorization of appropriations

    For the purpose of carrying out this subchapter, other than section 
1419 of this title, there are authorized to be appropriated such sums as 
may be necessary.

(Pub. L. 91-230, title VI, Sec. 611, as added Pub. L. 105-17, title I, 
Sec. 101, June 4, 1997, 111 Stat. 49.)

                       References in Text

    Provisions under the heading ``SPECIAL EDUCATION'' in Public Law 
104-134, referred to in subsec. (b)(1)(B), are provisions of Pub. L. 
104-134, title I, Sec. 101(d) [title III], Apr. 26, 1996, 110 Stat. 
1321-211, 1321-231, which are not classified to the Code.
    Public Law 95-134, referred to in subsec. (b)(4), is Pub. L. 95-134, 
Oct. 15, 1977, 91 Stat. 1159, as amended. Provisions relating to 
consolidation of grants are contained in section 501 of Pub. L. 95-134 
which is classified to section 1469a of Title 48, Territories and 
Insular Possessions.
    Section 611 of this Act, as in effect prior to June 4, 1997, 
referred to in subsecs. (d)(2) and (g)(2)(A), (B)(i), means section 611 
of Pub. L. 91-230, title VI, Apr. 13, 1970, 84 Stat. 178, as amended, 
which was classified to section 1411 of this title prior to the general 
amendment of subchapters I to IV of this chapter by Pub. L. 105-17, 
title I, Sec. 101, June 4, 1997, 111 Stat. 37.
    Section 614A of this Act for fiscal year 1997, as then in effect, 
referred to in subsec. (g)(1), means section 614A of Pub. L. 91-230, 
title VI, as added by Pub. L. 103-382, title III, Sec. 312, Oct. 20, 
1994, 108 Stat. 3934, which was classified to section 1414a of this 
title prior to the general amendment of subchapters I to IV of this 
chapter by Pub. L. 105-17, title I, Sec. 101, June 4, 1997, 111 Stat. 
37.
    Subpart 2 of part D of chapter 1 of title I of the Elementary and 
Secondary Education Act of 1965, referred to in subsec. (g)(3), is 
subpart 2 of part D of chapter 1 of title I of Pub. L. 89-10, as added 
by Pub. L. 100-297, title I, Sec. 1001, Apr. 28, 1988, 102 Stat. 179, as 
amended, which was classified generally to subpart 2 (Sec. 2791 et seq.) 
of part D of div. I of subchapter I of chapter 47 of this title prior to 
being omitted in the general amendment of Pub. L. 89-10 by Pub. L. 103-
382, title I, Sec. 101, Oct. 20, 1994, 108 Stat. 3519.


                            Prior Provisions

    A prior section 1411, Pub. L. 91-230, title VI, Sec. 611, Apr. 13, 
1970, 84 Stat. 178; Pub. L. 93-380, title VI, Sec. 614(a), (e)(1), (2), 
Aug. 21, 1974, 88 Stat. 580, 582; Pub. L. 94-142, Secs. 2(a)(1)-(3), 
5(a), (c), Nov. 29, 1975, 89 Stat. 773, 776, 794; Pub. L. 95-561, title 
XIII, Sec. 1341(a), Nov. 1, 1978, 92 Stat. 2364; Pub. L. 96-270, 
Sec. 13, June 14, 1980, 94 Stat. 498; Pub. L. 98-199, Secs. 3(b), 15, 
Dec. 2, 1983, 97 Stat. 1358, 1374; Pub. L. 99-159, title VI, Sec. 601, 
Nov. 22, 1985, 99 Stat. 904; Pub. L. 99-362, Sec. 2, July 9, 1986, 100 
Stat. 769; Pub. L. 99-457, title II, Sec. 201(b), title IV, Secs. 403, 
404, Oct. 8, 1986, 100 Stat. 1158, 1173; Pub. L. 100-630, title I, 
Sec. 102(a), Nov. 7, 1988, 102 Stat. 3290; Pub. L. 101-476, title II, 
Sec. 201, title IX, Sec. 901(b)(25)-(32), Oct. 30, 1990, 104 Stat. 1111, 
1143; Pub. L. 102-73, title VIII, Sec. 802(d)(2), (3), July 25, 1991, 
105 Stat. 361; Pub. L. 102-119, Secs. 4, 25(a)(4), (19), (b), Oct. 7, 
1991, 105 Stat. 587, 606, 607; Pub. L. 103-382, title III, Sec. 311, 
Oct. 20, 1994, 108 Stat. 3931, related to entitlements and allocations, 
prior to the general amendment of subchapters I to IV of this chapter by 
Pub. L. 105-17.


                             Effective Date

    Section effective beginning with funds appropriated for fiscal year 
1998, see section 201(a)(2)(D) of Pub. L. 105-17, set out as a note 
under section 1400 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1412, 1413, 1416, 1419, 
1443, 1453, 1474 of this title.
