[Federal Register: June 21, 2005 (Volume 70, Number 118)]
[Proposed Rules]               
[Page 35781-35892]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21jn05-39]                         
 

[[Page 35781]]

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Part II





Department of Education





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34 CFR Parts 300, 301, and 304



Assistance to States for the Education of Children With Disabilities; 
Preschool Grants for Children With Disabilities; and Service 
Obligations Under Special Education--Personnel Development To Improve 
Services and Results for Children With Disabilities; Proposed Rule


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DEPARTMENT OF EDUCATION

34 CFR Parts 300, 301 and 304

RIN 1820-AB57

 
Assistance to States for the Education of Children With 
Disabilities; Preschool Grants for Children With Disabilities; and 
Service Obligations Under Special Education--Personnel Development To 
Improve Services and Results for Children With Disabilities

AGENCY: Office of Special Education and Rehabilitative Services, 
Department of Education.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The Secretary proposes to amend the regulations governing the 
Assistance to States for Education of Children with Disabilities 
Program, the Preschool Grants for Children With Disabilities Program, 
and Service Obligations under Special Education Personnel Development 
to Improve Services and Results for Children with Disabilities. These 
amendments are needed to implement recently enacted changes made to the 
Individuals with Disabilities Education Act, as amended by the 
Individuals with Disabilities Education Improvement Act of 2004.

DATES: To be considered, comments must be received at one of the 
addresses provided in the ADDRESSES section no later than 5 p.m. 
Washington, DC Time on September 6, 2005. Comments received after this 
time will not be considered.
    We will hold public meetings about this NPRM. The dates and times 
of the meetings and the cities in which the meetings will take place 
are in Public Meetings under Invitation to Comment elsewhere in this 
preamble.

ADDRESSES: Address all comments about these proposed regulations to 
Troy R. Justesen, U.S. Department of Education, 400 Maryland Avenue, 
SW., Potomac Center Plaza, room 5126, Washington, DC 20202-2641. If you 
prefer to send your comments through the Internet, you may address them 
to us at the U.S. Government Web site: http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.regulations.gov or you may 

send your Internet comments to us at the following address: 
IDEAComments@ed.gov.
    You must include the term IDEA-Part B in the subject line of your 
electronic message. Please submit your comments only one time, in order 
to ensure that we do not receive duplicate copies.
    If you want to comment on the information collection requirements, 
you must send your comments to the Office of Management and Budget at 
the address listed in the Paperwork Reduction Act section of this 
preamble. You may also send a copy of those comments to the U.S. 
Department of Education (Department) representative named in this 
section.
    All first-class and Priority mail sent to the Department is put 
through an irradiation process, which can result in lengthy delays in 
mail delivery. Please keep this in mind when sending your comments and 
please consider using commercial delivery services or e-mail in order 
to ensure timely delivery of your comments.

FOR FURTHER INFORMATION CONTACT: Troy R. Justesen. Telephone: (202) 
245-7468.
    If you use a telecommunications device for the deaf (TDD), you may 
call the Federal Relay System (FRS) at 1-800-877-8339.
    Individuals with disabilities may obtain this document in an 
alternative format (e.g., Braille, large print, audiotape, or computer 
diskette) on request to the contact person listed under FOR FURTHER 
INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION:

Invitation To Comment

    We invite you to submit comments regarding these proposed 
regulations. To ensure that your comments have maximum effect in 
developing the final regulations, we urge you to identify clearly the 
specific section or sections of the proposed regulations that each of 
your comments addresses and to arrange your comments in the same order 
as the proposed regulations.
    We invite you to assist us in complying with the specific 
requirements of Executive Order 12866 and its overall requirement of 
reducing regulatory burden that might result from these proposed 
regulations. Please let us know of any further opportunities we should 
provide to reduce the potential costs or increase potential benefits 
while preserving the effective and efficient administration of these 
programs.
    During and after the comment period, you may inspect all public 
comments about these proposed regulations in room 5126, Potomac Center 
Plaza, 550 12th Street, SW., Washington, DC, between the hours of 8:30 
a.m. and 4 p.m., Eastern time, Monday through Friday of each week 
except Federal holidays.

Assistance to Individuals With Disabilities in Reviewing the Rulemaking 
Record

    On request, we will supply an appropriate aid, such as a reader, or 
print magnifier, to an individual with a disability who needs 
assistance to review the comments or other documents in the public 
rulemaking record for these proposed regulations. If you want to 
schedule an appointment for this type of aid, please contact the person 
listed under FOR FURTHER INFORMATION CONTACT.

Public Meetings

    The dates and cities where the meetings about this NPRM will take 
place are listed below. Each meeting will take place from 1 to 4 p.m. 
and from 5 to 7 p.m.
    Friday, June 17, 2005 in Nashville, TN;
    Wednesday, June 22, 2005 in Sacramento, CA;
    Friday, June 24, 2005 in Las Vegas, NV;
    Monday, June 27, 2005 in New York, NY;
    Wednesday, June 29, 2005 in Chicago, IL;
    Thursday, July 7, 2005 in San Antonio, TX; and
    Tuesday, July 12, 2005 in Washington, DC.
    We provided more specific information on meeting locations in a 
notice published in the Federal Register (70 FR 30917).

Assistance to Individuals With Disabilities at the Public Meetings

    The meeting sites are accessible to individuals with disabilities, 
and sign language interpreters will be available. If you need an 
auxiliary aid or service other than a sign language interpreter (e.g., 
interpreting service such as oral, cued speech, or tactile interpreter, 
assisted listening device, or materials in an alternative format), 
notify the contact person listed in this NPRM at least two weeks before 
the scheduled meeting date. Although we will attempt to meet a request 
we receive after this date, we may not be able to make available the 
requested auxiliary aid or service because of insufficient time to 
arrange it.

Background

    On December 3, 2004, the Individuals with Disabilities Education 
Improvement Act of 2004 was enacted into law as Pub L. 108-446. The 
statute, as passed by Congress and signed by the President, 
reauthorizes and makes significant changes to the Individuals with 
Disabilities Education Act.
    The Individuals with Disabilities Education Act, as amended by the 
Individuals with Disabilities Education Improvement Act of 2004 (Act or 
IDEA), is intended to help children with

[[Page 35783]]

disabilities achieve to high standards--by promoting accountability for 
results, enhancing parental involvement, and using proven practices and 
materials; and, also, by providing more flexibility and reducing 
paperwork burdens for teachers, States, and local school districts. 
Enactment of the new law provides an opportunity to consider 
improvements in the current regulations that would strengthen the 
Federal effort to ensure every child with a disability has available a 
free appropriate public education that--(1) is of high quality, and (2) 
is designed to achieve the high standards reflected in the Elementary 
and Secondary Education Act of 1965, as amended by the No Child Left 
Behind Act of 2001 (NCLB) and its implementing regulations.
    Changes to the current Part B regulations (34 CFR parts 300 and 
301) and Part D regulations (34 CFR part 304) are necessary in order 
for the Department to appropriately and effectively address the 
provisions of the new law and to assist State and local educational 
agencies in implementing their responsibilities under the new law. 
Changes to the current Part C regulations (part 303) also are necessary 
in order for the Department to appropriately and effectively address 
the provisions in Part C of the Act and to assist States in completing 
their responsibilities under the new law. The NPRM for the Part C 
regulations will be published soon.
    On December 29, 2004, the Secretary published a notice in the 
Federal Register requesting advice and recommendations from the public 
on regulatory issues under the Act, and announcing a series of seven 
public meetings during January and February of 2005 to seek further 
input and suggestions from the public for developing regulations based 
on the new statute.
    Over 6000 public comments were received in response to the Federal 
Register notice and at the seven public meetings, including letters 
from parents and public agency personnel, and parent-advocate and 
professional organizations. The comments addressed each major provision 
of the new law (such as discipline procedures, provisions on personnel 
qualifications and highly qualified teachers, provisions related to 
evaluation of children and individualized education programs, 
participation of private school children with disabilities, and 
provisions on early intervening services). These comments were reviewed 
and considered in developing this NPRM. The Secretary appreciates the 
interest and thoughtful attention of the commenters responding to the 
December 29, 2004 notice and participating in the seven public 
meetings.

General Proposed Regulatory Plan and Structure

    In developing this NPRM, we have elected to construct one 
comprehensive, freestanding document that incorporates virtually all 
requirements from the new law along with the applicable regulations, 
rather than publishing a regulation that does not include statutory 
provisions. The rationale for doing this is to create a single 
reference document for parents, State personnel, school personnel, and 
others to use, rather than being forced to shift between one document 
for regulations and a separate document for the statute. This approach 
was used in developing the current regulations. Although this approach 
will result in a larger document, it is our impression that various 
groups strongly support continuing this practice.
    In addition, we have reorganized the regulations by following the 
general order and structure of provisions in the statute, rather than 
using the arrangement of the current regulations. We believe this 
change in organization will be helpful to parents, State and local 
educational agency personnel, and the public both in reading the 
regulations, and in finding the direct link between a given statutory 
requirement and the regulation related to that requirement. Thus, in 
general, the requirements related to a given statutory section (e.g., 
State eligibility in section 612 of the Act) will be included in one 
location (subpart B) and in the same general order as in the statute, 
rather than being spread throughout four or more subparts, as the 
statutory sections are in the current regulations.
    As restructured in this NPRM, the proposed regulations are divided 
into eight major subparts, each of which is directly linked to, and 
comports with, the general order of provisions in a specific section of 
the Act. For example, we have revised subpart G of the regulations to 
include all provisions regarding the allotment and use of funds from 
section 611 of the Act, rather than having those provisions dispersed 
among several different subparts, as they are in the current 
regulations.
    In addition, we have removed part 301 (Preschool Grants for 
Children with Disabilities) from title 34 and placed the Preschool 
Grants provisions from section 619 of the Act into a new subpart H 
under part 300. This restructuring and consolidation of the financial 
requirements from both the statute and regulations into a specific 
location in the regulations should be useful to State and local 
administrators and others in finding the relevant statutory and 
regulatory provisions regarding both the Assistance to States and 
Preschool Grants programs.
    In reviewing the current regulations, we considered their continued 
necessity and relevance in light of a number of factors: Whether 
statutory changes required changes to existing regulations; whether 
changes in other laws, or the passage of time and changed conditions 
rendered the regulations obsolete or unnecessary; whether less 
burdensome alternatives or greater flexibility was appropriate; and 
whether the regulation could be changed in light of section 607(b) of 
the Act (section 607(b) of the Act provides that the Secretary may not 
publish final regulations that would procedurally or substantively 
lessen the protections provided to children with disabilities in the 
regulations that were in effect on July 20, 1983, except to the extent 
that such regulation reflects the clear and unequivocal intent of the 
Congress in legislation). In the following discussion of proposed 
regulatory changes, we identify the changes that would be made to 
existing regulations after consideration of these factors.

Proposed Regulatory Changes

Subpart A--General

Purposes and Applicability
    Proposed Sec.  300.1 would be revised only to add, consistent with 
a change to section 601(d)(1)(A) of the Act, the words ``further 
education'' in paragraph (a).
    Except for the section heading, proposed Sec.  300.2 would be 
unchanged from the existing provision.
    Section 300.3 of the current regulations would be removed as 
unnecessary, because the regulations listed in this section already 
apply, by their own terms, to States and local agencies under Part B of 
the Act.

Definitions Used in This Part

    As in the current regulations, proposed Sec.  300.4 (Act) would 
refer to the Individuals with Disabilities Education Act, as amended.
    Proposed Sec.  300.5 (Assistive technology device) would retain the 
current definition, and include the new language from section 602(1) of 
the Act that the term does not include a medical device that is 
surgically implanted, or the replacement of that device.
    Proposed Sec.  300.6 (Assistive technology service) would be 
consistent with the current regulatory definition of that term.

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    Proposed Sec.  300.7 (Charter school) would define the term to have 
the meaning given that term in section 5210(1) of the Elementary and 
Secondary Education Act of 1965, as amended, 20 U.S.C 6301 et seq. 
(ESEA).
    Proposed Sec.  300.8 (Child with a disability) would make the 
following changes to the current regulatory definition in Sec.  300.7: 
In paragraphs (a)(1) and (a)(2) cross-references to evaluation 
procedures would be updated to reflect the placement of those 
procedures in these proposed regulations. The parenthetical following 
``serious emotional disturbance'' in paragraph (a)(1) would be revised 
to read ``referred to in this part as emotional disturbance.'' The 
cross-reference regarding related services in the definition of special 
education in paragraph (a)(2)(ii) would be updated. In paragraph (b), a 
parenthetical phrase would be added following the reference to children 
aged three through nine to clarify that ``developmental delay'' could 
be used for any subset of that age range, including children three 
through five. This reflects a change in section 602(3)(B) of the Act. 
Paragraph (c)(8) (Orthopedic impairment) would revise current Sec.  
300.7(c)(8) by removing the parenthetical listing of examples, because 
these examples are outdated.
    Finally, in paragraph (c)(10)(i) of proposed Sec.  300.8, which 
contains a definition of the term specific learning disability, the 
word ``the'' would be substituted for ``an'' before the phrase 
``imperfect ability to listen, think, * * *'' reflecting the addition 
of ``the'' in section 602(30)(A) of the Act.
    Proposed Sec.  300.9 would incorporate the regulatory definition of 
Consent that appears in Sec.  300.500(b)(1) of the current regulations. 
The current provision in Sec.  300.8 that cross-references the Sec.  
300.500 definition of consent, would be removed.
    Consistent with section 602(4) of the Act, proposed Sec.  300.10 
would add the new definition of Core academic subjects as that term is 
defined in section 9101 of the ESEA.
    Proposed Sec.  300.11 would revise the definitions of Day; business 
day; school day in current Sec.  300.9 only by updating the cross-
reference to the regulatory requirement in proposed Sec.  300.148(c) 
concerning a limitation on reimbursement for private school placements.
    The regulatory definition of Educational service agency currently 
in Sec.  300.10 would be moved to proposed Sec.  300.12 and revised by 
adding the word ``schools'' after ``public elementary'' in paragraph 
(a)(2) of this section to conform with the language in section 602(5) 
of the Act. In proposed paragraph (c), the provision concerning 
entities that meet the definition of intermediate educational unit in 
section 602(23) of the Act as in effect prior to June 4, 1997 would be 
retained. There are entities still providing special education and 
related services to preschool children with disabilities that meet the 
definition of intermediate educational unit, but may not meet the 
definition of educational service agency because they are not 
responsible for the provision of special education and related services 
provided within public elementary schools of the State.
    Proposed Sec.  300.13 would reflect the definition of Elementary 
school in section 602(6) of the Act, including the new language 
specifying that the term includes a public elementary charter school.
    Proposed Sec.  300.14 would reflect the current statutory 
definition of Equipment and would be substantially the same as Sec.  
300.11 of the current regulations.
    Proposed Sec.  300.15 would incorporate the regulatory definition 
of Evaluation that appears in the current regulations in Sec.  
300.500(b)(2), with the cross-reference to the evaluation procedures 
updated to reflect their placement in these proposed regulations and to 
include the additional procedures regarding specific learning 
disability. The current regulation, regarding evaluation in Sec.  
300.12, which cross-references the definition in current Sec.  300.500, 
would be removed as duplicative and unnecessary.
    Proposed Sec.  300.16 (Excess costs), defined in the current 
regulations in Sec.  300.184, would be revised consistent with changes 
in section 602(8) of the Act. This provision is substantially the same 
as the current definition in Sec.  300.184(b).
    Proposed Sec.  300.17 (free appropriate public education or FAPE) 
would incorporate the provisions of section 602(9) of the Act and be 
the same as the definition in Sec.  300.13 of the current regulations, 
except that Sec.  300.17(d) would be updated to add a cross-reference 
to the individualized education program (IEP) requirements.
    A new definition of highly qualified special education teacher 
would be added in proposed Sec.  300.18, reflecting the addition of a 
definition of this term to the statute in section 602(10) of the Act, 
with the following modifications: Paragraph (a)(1) of this section 
would specify that the term ``highly qualified'' applies only to public 
elementary school and secondary school special education teachers, 
consistent with the definition of that term in section 9101 of the 
ESEA, which is incorporated into the Act and applied to special 
education teachers in section 602(10) of the Act. We do not believe 
that the ``highly qualified'' requirements of the ESEA, or, by 
statutory cross-reference, the Act, were intended to apply to private 
school teachers, even in situations where a child with a disability is 
placed in, or referred to, a private school by a public agency in order 
to carry out the public agency's responsibilities under this part, 
consistent with section 612(a)(10)(B) of the Act and proposed Sec.  
300.146. This issue also is addressed in proposed Sec.  300.156.
    Proposed Sec.  300.18(b)(2) would specify that a teacher 
participating in an alternate route to certification program would be 
considered to be fully certified under certain circumstances. The 
standard to be applied to an alternate route to certification program 
would be the same as for those programs under the regulations 
implementing title I of the ESEA in 34 CFR Sec.  200.56(a)(2)(ii). This 
would provide for consistency in the interpretation and application of 
the alternate route to certification provisions across these programs.
    In proposed Sec.  300.18(b)(3), a provision would be added to 
clarify that a public elementary or secondary school teacher who is not 
teaching a core academic subject would be considered highly qualified 
if the teacher meets the requirements of proposed Sec.  300.18(b)(1) 
and (2). This provision would reflect note 21 in U.S. House of 
Representatives Conference Report No. 108-779, (Conf. Rpt.) that 
special education teachers who are only providing consultative services 
to other teachers who are highly qualified to teach particular academic 
subjects, could be highly qualified by meeting the special education 
qualifications alone. Proposed Sec.  300.18(c)(2) would clarify that 
all special education teachers who are exclusively teaching students 
who are assessed based on alternate academic achievement standards, as 
permitted under the regulations implementing title I of the ESEA, at a 
minimum, have subject matter knowledge at the elementary level or 
above, as determined by the State, needed to effectively teach to those 
standards. Note 21 in the Conf. Rpt. calls for teachers exclusively 
teaching students who are assessed based on alternate academic 
achievement standards above the elementary level to have a high level 
of competency in each of the core academic subjects taught.
    The proposed regulation would not specifically address the use of a 
separate ``high objective uniform State standard of evaluation'' 
(HOUSSE) for special

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education teachers. However, note 21 in the Conf. Rpt. recognized that 
some States have developed HOUSSE standards for special education 
teachers, and indicated that those separate HOUSSE standards should be 
permitted, including single HOUSSE evaluations that cover multiple 
subjects, as long as those adaptations of a State's HOUSSE for use with 
special education teachers would not establish a lesser standard for 
the content knowledge requirements for special education teachers. We 
request comment on whether additional regulatory action is needed on 
this point. Proposed Sec.  300.18(g) would clarify that the 
requirements in proposed Sec.  300.18 regarding highly qualified 
special education teachers do not apply with respect to teachers hired 
by private elementary and secondary schools.
    Proposed Sec.  300.19 would reflect the definition of Homeless 
children added to the statute in section 602(11) of the Act.
    The definition of include in proposed Sec.  300.20 is substantively 
unchanged from the current regulatory provision in Sec.  300.14.
    The proposed definitions of Indian and Indian tribe in Sec.  300.21 
would incorporate the definitions of those terms currently in Sec.  
300.264 and reflect the language in sections 602(12) and 602(13) of the 
Act. The Department of Education seeks comment on the definition of 
Indian tribe because the current definition includes state tribes. The 
Department of the Interior is only authorized to provide services to 
Federally Recognized tribes, therefore, States should provide comments 
on how they would provide these services to State recognized tribes. 
Nothing in this definition is intended to require the BIA to provide 
services or funding to a State Indian tribe for which BIA is not 
responsible.
    The definition of Individualized education program or IEP in 
proposed Sec.  300.22 would incorporate the regulatory definition of 
that term currently in Sec.  300.340(a), and would reflect the language 
in section 602(14) of the Act. The current Sec.  300.15 cross-
referencing the Sec.  300.340 definition would be removed as 
duplicative and unnecessary.
    Proposed Sec.  300.23 (Individualized education program team) would 
be the same as Sec.  300.16 of the current regulations. The definition 
in proposed Sec.  300.24 of Individualized family service plan would be 
the same as the current regulatory definition in Sec.  300.17, except 
that proposed Sec.  300.24 would appropriately refer to the current 
statutory definition of IFSP in section 636 of the Act and not to the 
regulatory definition in 34 CFR 303.340(b).
    Proposed Sec.  300.25 (Infant or toddler with a disability), Sec.  
300.26 (Institution of higher education), and Sec.  300.27 (Limited 
English proficient) would reflect statutory definitions of those terms 
in sections 602(16), 602(17), and 602(18) of the Act, respectively.
    Proposed Sec.  300.28 (Local educational agency or LEA) is 
substantively unchanged from the current regulatory definition in Sec.  
300.18, and would reflect the definition of that term in section 
602(19) of the Act.
    Proposed Sec.  300.29 (Native language) is substantively unchanged 
from the current regulatory definition of that term in Sec.  300.19.
    Proposed Sec.  300.30 (Parent) would revise the current regulatory 
definition of that term in Sec.  300.20 to better reflect the revised 
statutory definition of Parent in section 602(23) of the Act. Proposed 
Sec.  300.30(a)(2) would reflect the provision regarding a State law 
prohibition on when a foster parent can be considered a parent, but 
would add language to recognize that similar restrictions may exist in 
State regulations or in contractual agreements between a State or local 
entity and the foster parent, and should be accorded similar deference. 
Proposed Sec.  300.30(b)(1) would provide that the natural or adoptive 
parent would be presumed to be the parent for purposes of the 
regulations if that person were attempting to act as the parent under 
proposed Sec.  300.30 and more than one person is qualified to act as a 
parent, unless that person does not have legal authority to make 
educational decisions for the child, or there is a judicial order or 
decree specifying some other person to act as the parent under Part B 
of the Act. Proposed Sec.  300.30(b)(2) would provide that if a person 
or persons is specified in a judicial order or decree to act as the 
parent for purposes of Sec.  300.30, that person would be the parent 
under Part B of the Act. Proposed Sec.  300.30(b)(2) would, however, 
exclude an agency involved in the education or care of the child from 
serving as a parent, consistent with the statutory prohibition that 
applies to surrogate parents in sections 615(b)(2) and 639(a)(5) of the 
Act. The provisions in proposed Sec.  300.30(b) should assist schools 
and public agencies in identifying the appropriate person to serve as 
the parent under Part B of the Act, especially in those difficult 
situations in which more than one individual wants to make educational 
decisions.
    Proposed Sec.  300.31 would add a new definition of Parent training 
and information center reflecting section 602(25) of the Act. This term 
would be used in proposed Sec.  300.506.
    Proposed Sec. Sec.  300.32 (Personally identifiable) and 300.33 
(Public agency) are substantively unchanged from current regulatory 
definitions of these terms in Sec.  300.500(b)(3) and Sec.  300.22, 
respectively. We note that throughout these proposed regulations, 
public agency has been used to make clear where the requirements do not 
apply only to States and LEAs.
    The current regulatory definition of Qualified personnel in Sec.  
300.23 would be removed, because personnel qualifications would be 
adequately addressed in proposed Sec.  300.156.
    Proposed Sec.  300.34 (Related services), reflecting changes in 
section 602(26) of the Act, would amend the current regulatory 
definition in Sec.  300.24 in the following ways: In proposed Sec.  
300.34(a) ``interpreting services'' and ``school nurse services 
designed to enable a child with a disability to receive a free 
appropriate public education as described in the IEP of the child'' 
would be added. Proposed Sec.  300.34(b) would be added to address the 
statutory limitation on surgically implanted medical devices. Paragraph 
(b) also would specify that related services would not include the 
costs of maximizing the functioning of a surgically implanted device or 
the maintenance of a surgically implanted device. School districts 
should not be required to bear these costs, which are integral to the 
functioning of the implanted device. Proposed paragraph (c) would 
include new definitions of Interpreting services and School nurse 
services. The list is not intended to be exhaustive and other 
therapies, as well as other services not listed, may be included in a 
child's IEP if the IEP Team determines that a particular service is 
needed for a child to benefit from special education. In all cases 
concerning related services, the IEP Team's determination about 
appropriate services must be reflected in the child's IEP and those 
listed services must be provided in accordance with the IEP at public 
expense and at no cost to the parents. Nothing in the Act or in the 
definition of related services requires the provision of a related 
service to a child unless the child's IEP Team has determined that the 
service is required in order for the child to benefit from special 
education and has included the service on the child's IEP.
    Proposed Sec.  300.35 (Secondary school) would revise the current 
regulatory definition of this term in Sec.  300.25 to add the new 
statutory language specifying

[[Page 35786]]

that the term includes a public secondary charter school.
    Proposed Sec.  300.36 (Services plan) would add a new definition 
that would describe the content, development, and implementation of 
plans for parentally-placed private school children with disabilities 
who have been designated to receive services. The definition would 
cross-reference the specific requirements for the provision of services 
to parentally-placed private school children with disabilities in 
proposed Sec. Sec.  300.132 and 300.137 through 300.139.
    Proposed Sec.  300.37 (Secretary) would reflect the statutory 
definition of that term in section 602(28) of the Act.
    Proposed Sec. Sec.  300.38 (Special education), 300.39 (State), and 
300.41 (Supplementary aids and services) would be substantively 
unchanged from current regulatory provisions in Sec. Sec.  300.26, 
300.27 and 300.28, respectively, except that State would be revised to 
reference an exception when the term is used in subparts G and H of 
these regulations. Proposed Sec.  300.38(b)(5) would revise the 
definition of vocational education in current Sec.  300.26(b)(5) to 
include the definition of vocational and technical education and the 
definition of vocational and technical education in the Carl D. Perkins 
Vocational and Applied Technology Act of 1988, as amended, 20 U.S.C. 
2301, 2302(29) would be added in proposed Sec.  300.38(b)(6).
    Proposed Sec.  300.42 (Transition services) would revise the 
current regulatory definition of the term in Sec.  300.29, reflecting 
new statutory language in section 602(34) of the Act.
    New proposed definitions would be added in Sec. Sec.  300.43 and 
300.44 reflecting the statutory definitions of Universal design and 
Ward of the State, respectively. The definition of Ward of the State 
underscores that the determination of whether a child is a ward of the 
State is limited to applicable State law. Finally, the current list of 
definitions found in the Education Department General Administrative 
Regulations (EDGAR) in Sec.  300.30 would be removed as unnecessary, as 
these definitions already apply by their own terms, except that the 
definition of Secretary in proposed Sec.  300.37 and State educational 
agency in proposed Sec.  300.40, which are included in the current 
EDGAR list, would be included in the proposed regulation because they 
also are defined in section 602(28) and (32) of the Act.

Subpart B--State Eligibility

General
    Revised subpart B would incorporate current provisions from other 
subparts that, under the current regulations, are cross-referenced in 
subpart B. These changes would be consistent with the statutory 
structure. Some of the provisions that are consolidated in proposed 
subpart B would include: certain provisions related to FAPE, currently 
in subpart C; provisions regarding private school children with 
disabilities, currently in subpart D; the least restrictive environment 
(LRE) provisions, currently in subpart E; and the State complaint 
procedures, currently in subpart F.
    Proposed Sec.  300.100 would revise current Sec.  300.110 to 
provide for the submission of a plan that includes assurances related 
to the conditions of eligibility for assistance. The requirement that 
States submit copies of all State statutes, regulations, and other 
documents would be removed from current Sec.  300.110, consistent with 
the changes in Section 612(a) of the Act. Consistent with this 
approach, these proposed regulations would eliminate from the current 
regulations throughout subpart B all provisions requiring that policies 
and procedures be on file with the Secretary.

FAPE Requirements

    Proposed Sec.  300.101 would incorporate the current general FAPE 
provision in Sec.  300.121(a), and would include a reference to the 
SEA's obligation to make FAPE available to children who have been 
suspended or expelled from school, consistent with proposed Sec.  
300.530(d). Consistent with changes to the statute, the current 
provisions in Sec.  300.121(b) regarding submission of State 
documentation, such as statutes and court orders, would be removed. The 
current provisions in Sec.  300.121(c), regarding FAPE beginning at age 
three, generally would be retained. The current provisions in Sec.  
300.121(e), regarding children advancing from grade to grade, also 
would be retained. These provisions provide useful information on 
appropriate implementation of public agency responsibilities under Part 
B. Section 300.121(d) of the current regulations would not be retained 
in these proposed regulations. Instead, the obligation to ensure the 
right to FAPE for children who have been suspended or expelled from 
school would be addressed in proposed Sec.  300.530(d) in subpart E.
    Proposed Sec.  300.102 would retain the current exceptions to FAPE 
in Sec.  300.122. For consistency with the statute, references to 
``students'' would be changed to ``children.'' The proposed regulation 
would contain a new provision regarding children who are eligible for 
services under section 619 of the Act, but who are receiving early 
intervention services under Part C, consistent with the statutory 
language in section 612(a)(1)(c) of the Act. Proposed Sec.  300.102(b) 
also would include a new provision that would require that information 
regarding exceptions to FAPE be current and accurate. This information 
is necessary for the Department to allocate funds accurately among the 
States.

Other FAPE Requirements

    Proposed Sec. Sec.  300.103, 300.104, and 300.105(b), regarding 
methods and payments; residential placement; and proper functioning of 
hearing aids would retain the provisions from Sec. Sec.  300.301 
through 300.303 of the current regulations, respectively. Proposed 
Sec.  300.105(a), regarding assistive technology, would retain the 
provisions in current Sec.  300.308.
    Proposed Sec. Sec.  300.106 through 300.108, regarding extended 
school year services, nonacademic services, and physical education, 
would retain the current provisions in Sec.  300.309, Sec.  300.306, 
and Sec.  300.307, respectively. Proposed Sec.  300.109, regarding a 
full educational opportunity goal, generally would retain the current 
provisions in Sec. Sec.  300.123 and 300.124, but would combine them, 
consistent with section 612(a)(2) of the Act.
    Proposed Sec.  300.110, regarding program options, would retain the 
current provisions in Sec.  300.305.
    Proposed Sec.  300.111, regarding child find, generally would 
retain the current provisions in Sec.  300.125 and, consistent with 
changes in section 612(a)(3) of the Act, would specifically reference 
children who are homeless or are wards of the State. In addition, 
proposed Sec.  300.111(b) would incorporate the provisions related to 
developmental delay currently in Sec.  300.313(a). The proposed 
regulation would remove the current provisions in Sec.  300.313(b) 
regarding use of individual disability categories and Sec.  300.313(c) 
regarding a common definition of developmental delay as they are 
unnecessary. States have the option of using developmental delay and 
other eligibility categories for children with disabilities aged three 
through nine and subsets of that age range and of using a common 
developmental delay definition for Parts B and C of the Act. The 
proposed regulations generally would retain the current provisions in 
Sec.  300.125(a)(2) and (d), regarding other children included in

[[Page 35787]]

child find and the construction of Part B of the Act as not requiring 
that children be classified by their disability, as long as each child 
who needs special education and related services is regarded as having 
a disability under the Act. Consistent with other changes in these 
regulations to remove eligibility documentation requirements, the 
proposed regulation would remove the provision in Sec.  300.125(b) of 
the current regulations that the State must have policies and 
procedures on file with the Secretary. The proposed regulation also 
would remove the provision in Sec.  300.125(c) of the current 
regulations, regarding child find for children from birth through age 
two when the SEA is the lead agency for the Part C program, because 
this is a clarification that does not need to be in the regulations. 
The child find requirement under these regulations has traditionally 
been interpreted to mean identifying and evaluating children from 
birth. While child find under Part C of the Act overlaps, in part, with 
Part B of the Act, the coordination of child find activities under Part 
B and Part C is an implementation matter that would be best left to 
each State. Nothing in the Act prohibits the Part C lead agency's 
participation, with the agreement of the SEA, in the actual 
implementation of child find activities for infants and toddlers with 
disabilities.
    Proposed Sec.  300.112, regarding individualized education programs 
(IEPs), would revise the current provisions in Sec.  300.128 by adding 
an exception that references the requirement in proposed Sec.  
300.300(b)(3)(ii). That exception would provide that if the parent of a 
child with a disability refuses to consent to the initial provision of 
special education and related services, or the parent fails to respond 
to a request to provide consent for the initial provision of special 
education and related services, the public agency is not required to 
convene an IEP meeting to develop an IEP for the child for which the 
public agency requests such consent. Consistent with other changes in 
these proposed regulations, the proposed regulation would remove Sec.  
300.128(b), which requires the State to have policies and procedures on 
file with the Secretary.

Least Restrictive Environment

    Proposed Sec.  300.114, regarding LRE, generally would retain the 
current provisions in Sec.  300.550(b). The proposed regulation would 
remove the documentation requirements of Sec.  300.130(a) and Sec.  
300.550(a) and (b), consistent with other changes in these proposed 
regulations. The current provision related to an assurance regarding a 
State's funding mechanism in Sec.  300.130(b)(2) would be retained in 
proposed Sec.  300.114(b)(1). This section would provide that a State 
funding mechanism must not result in placements that violate the LRE 
provisions and that the State must not use a funding mechanism that 
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 FAPE according to the unique needs of the child, as 
described in the child's IEP. This change is consistent with language 
in section 612(a)(5)(B)(i) of the Act.
    With regard to section 612(a)(5)(B)(i) of the Act, note 89 in the 
Conf. Rpt. states that some States continue to use funding mechanisms 
that provide financial incentives for, and disincentives against, 
certain placements and these new provisions in the statute were added 
to prohibit States from maintaining funding mechanisms that violate 
appropriate placement decisions, not to require States to change 
funding mechanisms that support appropriate placement decisions. Note 
89 of the Conf. Rpt. indicates that it is the intent of the changes to 
section 612(a)(5)(B) of the Act to prevent State funding mechanisms 
from affecting appropriate placement decisions for children with 
disabilities. As also set out in note 89, the law requires that each 
public agency ensure that a continuum of alternative placements 
(instruction in regular classes, special classes, special schools, home 
instruction, and instruction in hospitals and institutions) is 
available to meet the needs of children with disabilities for special 
education and related services. The note further explains that State 
funding mechanisms must be in place to ensure funding is available to 
support the requirements of this provision, not to provide an incentive 
or disincentive for placement and that the LRE principle is intended to 
ensure that a child with a disability is served in a setting where the 
child can be educated successfully in the least restrictive setting. 
Proposed paragraph (b)(2) would replace Sec.  300.130(b)(2) and require 
a State that does not have policies and procedures to this effect to 
provide an assurance as soon as feasible to ensure that the mechanism 
does not result in placements that violate the LRE principle. The other 
provisions regarding LRE would be retained with appropriate updating of 
cross-references, as described in the following paragraphs.
    Proposed Sec.  300.115, regarding continuum of placements, would 
retain the language currently in Sec.  300.551. Proposed Sec.  300.116, 
regarding placements, would retain the language currently in Sec.  
300.552, except that paragraph (b)(3) would be revised to clarify that 
a child's placement must be as close as possible to the child's home 
unless the parent agrees otherwise. Finally, Sec.  300.116(c) would be 
revised to require that each public agency ensure that, unless the IEP 
of a child with a disability requires some other arrangement, the child 
is educated in the school he or she would attend if not disabled, 
unless the parent agrees otherwise. This additional language, ``unless 
the parent agrees otherwise,'' in paragraphs (b)(3) and (c) would 
clarify that parents can choose to send their child to a charter 
school, magnet school, or other specialized school without causing a 
violation of the LRE mandate.
    Proposed Sec.  300.117, regarding nonacademic settings, would 
retain the current provisions in Sec.  300.553. Proposed Sec.  300.118, 
regarding children in public or private institutions, would retain the 
current provisions in Sec.  300.554.
    Proposed Sec.  300.119, regarding technical assistance and 
training, would retain the current provisions in Sec.  300.555.
    Proposed Sec.  300.120, regarding LRE monitoring activities, would 
retain the current provisions in Sec.  300.556.

Additional Eligibility Requirements

    Proposed Sec.  300.121, regarding procedural safeguards, would 
retain the current provision in Sec.  300.129(a), but would remove the 
provision in Sec.  300.129(b) regarding having the safeguards on file 
with the Secretary, consistent with statutory changes eliminating 
requirements that States file documentation with the Secretary.
    Proposed Sec.  300.122 would remove the current requirement in 
Sec.  300.126 that evaluation policies and procedures be on file with 
the Secretary, consistent with statutory changes discussed previously. 
Consistent with the provision in section 612(a)(7) of the Act, proposed 
Sec.  300.122 would require that children with disabilities be 
evaluated consistent with the requirements in subpart D of these 
proposed regulations. The relevant requirements are addressed elsewhere 
in this preamble in the discussion of subpart D.
    Proposed Sec.  300.123 would remove the current requirement in 
Sec.  300.127 that policies and procedures related to confidentiality 
be on file with the Secretary and the criteria the Secretary uses to 
evaluate those policies and

[[Page 35788]]

procedures, consistent with statutory changes discussed previously. 
Instead, the proposed regulation would require that public agencies 
comply with subpart F of these regulations relating to the 
confidentiality of records and information. The relevant requirements 
are addressed elsewhere in this preamble in the discussion of subpart 
F.
    Proposed Sec.  300.124, regarding the transition of children from 
the Part C program to preschool programs under Part B, would remove the 
current requirement in Sec.  300.132 that policies and procedures 
related to confidentiality be on file with the Secretary, as discussed 
previously. The proposed regulation generally would retain the other 
provisions of Sec.  300.132. Proposed Sec.  300.124(c) would clarify 
that only affected LEAs must participate in transition planning 
conferences arranged by the designated lead agency under Part C of the 
Act.

Children in Private Schools

    Proposed Sec.  300.129, concerning State responsibilities regarding 
children in private schools, would revise the current requirements in 
Sec.  300.133, by removing the requirement that a State must have on 
file with the Secretary policies and procedures that ensure that the 
requirements of current Sec. Sec.  300.400 through 300.403 and current 
Sec. Sec.  300.460 through 300.462 are met. Proposed Sec.  300.129 
would make clear that the State must have in effect policies and 
procedures that ensure that LEAs and, if appropriate, the SEA, meet the 
private school requirements in proposed Sec. Sec.  300.130 through 
300.148.

Children With Disabilities Enrolled by Their Parents in Private Schools

    Proposed Sec.  300.130, regarding the definition of parentally-
placed private school children with disabilities, would incorporate the 
current provisions in Sec.  300.450.
    Proposed Sec.  300.131, regarding child find for parentally-placed 
private school children with disabilities, generally would retain the 
current requirements in Sec.  300.451, but would clarify, consistent 
with the changes in proposed Sec. Sec.  300.132 and 300.133, that the 
provisions governing parentally-placed private school children with 
disabilities apply to children who are enrolled in private schools 
located in the school district served by the LEA. The new statutory 
requirements in section 612(a)(10)(A)(ii) of the Act should ensure that 
parentally-placed private school children will not be denied the 
opportunity to receive services that would otherwise be available to 
them because of practical obstacles posed when they attend a private 
school located outside their district of residence.
    Proposed regulations in Sec.  300.131(b) through (e) also would 
include new provisions that incorporate the new requirements in section 
612(a)(10)(A)(ii) of the Act, designed to ensure that child find for 
parentally-placed private school children suspected of having 
disabilities is comparable to child find for public school children 
suspected of having disabilities. Proposed Sec.  300.131 would require 
that the participation in child find for parentally-placed private 
school children with disabilities be equitable, the counts be accurate, 
the activities undertaken be similar to child find activities for 
public school children with disabilities, and the period for completion 
of the child find process be comparable to the period for completion 
for public school children with disabilities when a parent consents to 
the evaluation. Similar to the current provision in Sec.  300.453(c), 
and consistent with section 612(a)(10)(A)(ii)(IV) of the Act, proposed 
Sec.  300.131(d) would provide that the costs of carrying out the child 
find requirements for parentally-placed private school children with 
disabilities, including individual evaluations, may not be considered 
in determining whether an LEA has met its obligations under proposed 
Sec.  300.133.
    The proposed regulation would remove current Sec.  300.453(d), 
regarding the permissibility of additional services, as it merely 
provides clarification for which a regulation is not necessary. Nothing 
in the Act prohibits SEAs and LEAs from providing other services to 
parentally-placed private school children with disabilities in addition 
to the services that are required under Part B of the Act.
    Proposed Sec.  300.132(a), regarding the provision of services for 
parentally-placed private school children with disabilities, would 
revise current Sec.  300.452(a) in light of changes in section 
612(a)(10)(A) of the Act, which refers to children ``enrolled in 
private elementary schools and secondary schools in the school district 
served by a local educational agency.'' Therefore, proposed Sec.  
300.132(a) would clarify that the provision of services under the 
proposed regulations refers only to children with disabilities enrolled 
by their parents in private schools located in the school district 
served by the LEA. The proposed regulation also would add a reference 
to the by-pass provisions in proposed Sec. Sec.  300.190 through 
300.198. Proposed Sec.  300.132(b) generally would retain current Sec.  
300.452(b), regarding a services plan for each private school child 
with a disability designated to receive special education and related 
services under Part B. Proposed Sec.  300.132(c) would require each LEA 
to maintain and provide to the SEA records on the number of private 
school children with disabilities evaluated, the number determined to 
be children with disabilities, and the number of private school 
children with disabilities served, consistent with section 
612(a)(10)(A)(i)(V) of the Act.
    Proposed Sec.  300.133, regarding expenditures for providing 
special education and related services to parentally-placed private 
school children with disabilities, would revise current Sec.  
300.453(a), regarding the formula used in determining the proportionate 
amount of expenditures, in light of changes in section 
612(a)(10)(A)(i)(II) of the Act. Proposed Sec.  300.133(a) would 
provide that the calculation of the proportionate amount of funds 
allocated for services for parentally-placed private school children be 
based on the count of parentally-placed private school children 
attending private schools located in the LEA. The proposed regulation 
would establish the formula as the number of children with 
disabilities, ages 3 through 21, who are enrolled by their parents in 
private schools located in the school district served by the LEA, 
divided by the total number of children with disabilities, ages 3 
through 21, in the LEA's jurisdiction. Proposed Sec.  300.133(b) would 
incorporate the provision in section 612(a)(10)(A)(i)(II) of the Act 
regarding a thorough and complete child find process. Proposed Sec.  
300.133(c), regarding child count, generally would retain the current 
provision in Sec.  300.453(b), but for clarity, would use the term 
parentally-placed private school children with disabilities. The 
existing provision in Sec.  300.453(c) would be removed, as similar 
content would be more fully addressed in proposed Sec.  300.131(d). 
Proposed Sec.  300.133(d) would incorporate the statutory provision 
regarding supplementing not supplanting in section 612(a)(10)(A)(i)(IV) 
of the Act.
    Proposed Sec. Sec.  300.134 and 300.135 would incorporate new 
provisions in section 612(a)(10)(A)(iii) and (iv) of the Act, regarding 
timely and meaningful consultation with private school representatives 
and representatives of parents of parentally-placed private school 
children with disabilities, including a discussion of: How parentally-
placed children identified through the child find process can 
meaningfully participate; how, where, and by whom special education and 
related services will be provided; and

[[Page 35789]]

how, if the LEA disagrees with the views of the private school 
officials and the services to be provided, the LEA will provide a 
written explanation of why the LEA chose not to provide services 
directly or through a contract. Proposed Sec.  300.135 would require, 
in accordance with section 612(a)(10)(A)(iv) of the Act, a written 
affirmation signed by the representatives of the participating private 
schools that timely and meaningful consultation has occurred. The 
current provisions in Sec.  300.454(b)(1) through (3), regarding the 
consultation process, would be removed because they were superceded by 
new statutory requirements related to consultation in section 
612(a)(10)(A)(v) of the Act.
    Proposed Sec.  300.136, regarding the right of a private school 
official to submit to the SEA a complaint related to the LEA's 
compliance with the timely and meaningful consultation requirements, 
would incorporate the new provisions in section 612(a)(10)(A)(v) of the 
Act.
    Proposed Sec.  300.137(b) and (c), regarding determination of 
services to parentally-placed private school children with 
disabilities, generally would retain the current provisions in Sec.  
300.454(a), (b)(4), and (c). Proposed Sec.  300.137(a) also would 
include language from current Sec.  300.455(a)(3), providing that a 
parentally-placed private school child with a disability has no 
individual entitlement to receive some or all of the special education 
and related services that the child would receive if enrolled in a 
public school. This is an important clarification of the different 
responsibilities that public schools have for providing special 
education and related services to parentally-placed private school 
children with disabilities. Under the Act, LEAs have an obligation to 
provide the group of parentally-placed private school children with 
disabilities with equitable participation in the services funded with 
Federal IDEA funds. Because Federal funding constitutes only a portion 
of the excess costs of providing special education and related services 
to a child with disabilities, LEAs, in consultation with 
representatives of the private schools, will have to make decisions 
about how best to use the available Federal funds to address the needs 
of the parentally-placed private school children with disabilities as a 
group. In some LEAs, geography, school location, and the needs of the 
parentally-placed private school children with disabilities may make it 
possible for most, or even all of those children to receive some 
services under section 612(a)(10)(A) of the Act. In other cases, the 
Federal funds available may not be sufficient to provide all of these 
children with special education and related services. Decisions about 
how best to use the available Federal funds to ensure equitable 
participation of the group of parentally-placed private school children 
with disabilities are left to LEA personnel, in consultation with the 
private school representatives, who understand what is feasible and 
appropriate in particular situations.
    Proposed Sec.  300.138, regarding equitable services provided to 
parentally-placed private school children with disabilities, would 
retain the current provisions in Sec.  300.455(a)(1) and (2), and (b), 
regarding standards for personnel who provide services to parentally-
placed private school children, different amounts of services that may 
be provided to parentally-placed private school children as compared 
with those provided to children in public schools, and the provision of 
services for each parentally-placed private school child who has been 
designated to receive services in accordance with a services plan. The 
proposed regulation also would include language from section 
612(a)(10)(A)(vi) of the Act, which provides that the special education 
and related services be provided directly by employees of the public 
agency or through contract and that special education and related 
services, including materials and equipment, be secular, neutral and 
nonideological.
    Proposed Sec.  300.139, regarding the location of services and 
transportation, generally would retain the current provisions in Sec.  
300.456 that clarify that LEAs may provide special education and 
related services funded under Part B of the Act on site at the private, 
including religious, schools to the extent consistent with law. It 
should be noted that LEAs should provide such services for parentally-
placed private school children with disabilities on site at their 
school, unless there is a compelling rationale for these services to be 
provided off site.
    Proposed Sec.  300.140, regarding the unavailability of due process 
complaints, except for child find and the availability of State 
complaints, would retain the current provisions in Sec.  300.457. 
Proposed Sec.  300.140(b) would clarify that the State complaint 
procedures would be used to address complaints about the implementation 
of the consultation process in proposed Sec.  300.134. Proposed Sec.  
300.141, regarding the requirement that funds not benefit a private 
school, would retain the current provisions in Sec.  300.459. Proposed 
Sec.  300.142 would combine the requirements of current Sec. Sec.  
300.460 and 300.461 regarding the use of public school personnel and 
private school personnel. Proposed Sec.  300.143, regarding the 
prohibition of separate classes, would retain the requirements in 
current Sec.  300.458.
    Proposed Sec.  300.144 would incorporate provisions in section 
612(a)(10)(A)(vii) of the Act regarding property, equipment, and 
supplies for the benefit of private school children with disabilities 
and would replace the current provisions in Sec.  300.462(a). The 
proposed regulation would retain the current provisions in Sec.  
300.462(b) through (e).

Children With Disabilities in Private Schools Placed or Referred by 
Public Agencies

    Proposed Sec. Sec.  300.145, 300.146, and 300.147, regarding 
children with disabilities placed in or referred to private schools by 
public agencies, generally would retain the current provisions in 
Sec. Sec.  300.400, 300.401, and 300.402, which provide that children 
so placed or referred receive special education and related services in 
conformity with an IEP at no cost to the parents. This would be 
consistent with the requirement in section 612(a)(10)(B)(ii) of the 
Act, which provides that the SEA determine whether such private schools 
meet the standards that apply to the SEA and LEAs and that children 
served have all the rights the children would have if served by these 
agencies. Proposed Sec.  300.146(b) would continue to provide that 
publicly-placed children with disabilities be provided an education 
that meets the standards that apply to education provided by the SEA 
and LEAs, including the requirements of part 300, except for the 
requirements of Sec. Sec.  300.18 and 300.156(c). This provision is 
intended to ensure that children with disabilities who are publicly-
placed in or referred to a private school or facility as a means of 
providing these children with special education and related services 
would continue to retain the same right to FAPE that they would have if 
served directly by a public agency. However, because of statutory 
language in the ESEA that the requirements regarding highly qualified 
teachers apply only to public school teachers, as well as related 
language in section 602(10) of the Act and proposed Sec.  300.18, we do 
not read proposed Sec.  300.146(b) as requiring teachers of children 
with disabilities who are placed in or referred to private schools by a 
public agency to meet either the

[[Page 35790]]

``highly qualified teacher'' standard in the ESEA or the ``highly 
qualified special education teacher'' standard in the Act. Proposed 
Sec.  300.147, regarding implementation by the SEA, would incorporate, 
without change, the provisions in current Sec.  300.402.

Children With Disabilities Enrolled by Their Parents in Private Schools 
When FAPE Is at Issue

    Proposed Sec.  300.148, relating to placement of children with 
disabilities in private schools when the provision of FAPE is at issue, 
generally would retain the current provisions in Sec.  300.403(a), (c), 
and (d). Proposed Sec.  300.148 would remove, as unnecessary, language 
currently in Sec.  300.403(b), which provides that disagreements 
regarding the availability of an appropriate program for the child and 
the question of financial responsibility are subject to due process 
procedures. Disputes about these matters would be subject to the due 
process procedures even without this provision, because the central 
issue in such disputes is whether the public agency has made FAPE 
available to the child. Consistent with statutory language, proposed 
Sec.  300.148(b) would include the term ``school'' after 
``elementary.'' Proposed Sec.  300.148(d) would modify current Sec.  
300.403(e), based on the specific provisions in section 
612(a)(10)(C)(IV) of the Act.
    The current provision on documentation of SEA responsibility for 
general supervision in Sec.  300.141(a) and (b) would be removed 
consistent with statutory changes regarding documentation. Proposed 
Sec.  300.149, regarding SEA responsibility for general supervision, 
would replace current Sec.  300.600(a) and incorporate language in 
section 612(a)(11) of the Act to include a new provision referencing 
the requirements of subtitle B of title VII of the McKinney-Vento 
Homeless Assistance Act, 42 U.S.C. 11431. We also are adding a phrase 
to Sec.  300.149(a)(2) to clarify that the SEA is not responsible for 
exercising general supervision for education programs for children with 
disabilities in elementary schools and secondary schools for Indian 
children operated or funded by the Secretary of the Interior. Current 
Sec.  300.600(b) also would be removed as a result of statutory changes 
regarding submission of State information.
    New language referencing the State monitoring and enforcement 
responsibilities in proposed Sec. Sec.  300.602 and 300.606 through 
300.608 would be added in Sec.  300.149(b) because State monitoring and 
enforcement are central to the SEA's exercise of general supervision. 
Proposed Sec.  300.149(c) and (d) respectively, would incorporate 
current Sec.  300.600(c), clarifying that Part B does not limit the 
responsibility of agencies other than educational agencies to provide 
or pay for some or all of the cost of FAPE and Sec.  300.600(d), 
regarding the ability of a Governor or other individual to assign to a 
public agency, other than the SEA, responsibility for ensuring that the 
requirements of Part B are met for students with disabilities convicted 
as adults and incarcerated in adult prisons. As a general matter, for 
educational purposes, students who had been enrolled in a BIA funded 
school and are subsequently convicted as an adult and incarcerated in 
an adult prison are the responsibility of the State where the adult 
prison is located. The Secretary is seeking comment on whether further 
clarification on this issue is warranted.
    Proposed Sec.  300.150 would incorporate language from current 
Sec.  300.143 regarding SEA implementation of procedural safeguards, 
with a revision. Consistent with other changes to remove State 
documentation requirements, proposed Sec.  300.150 would require States 
to have policies in effect, rather than on file with the Department. 
The cross-reference also would be updated. Current Sec.  300.145, 
regarding recovery of funds for misclassified children, would be 
removed. Under section 611 of the Act, funds are no longer distributed 
based on a count of the children with disabilities served in a given 
fiscal year.

State Complaint Procedures

    In 1992, the Department moved these procedures into part 300 from 
34 CFR 76.780 through 76.782 based on a decision to place the complaint 
procedures into the specific program regulations to which they relate. 
Proposed Sec.  300.151, regarding the adoption of State complaint 
procedures, would incorporate the current provisions in Sec.  300.660, 
with one substantive change. Proposed Sec.  300.151(b)(1) would remove 
the reference to monetary reimbursement, so as not to imply that 
reimbursement would be appropriate in the majority of State complaints. 
Proposed Sec.  300.152, regarding minimum State complaint procedures, 
would retain the current provisions in Sec.  300.661, with several 
changes. Proposed Sec.  300.152(a)(3) would be added in order to 
incorporate into the State complaint procedures an opportunity for a 
public agency to respond to a complaint, including a chance to make a 
proposal to resolve the complaint, and, with the consent of the parent, 
to engage the parent in mediation or other alternative means of dispute 
resolution. This change would encourage meaningful informal resolution 
of disputes between the parties to the dispute. Proposed Sec.  
300.152(b)(1) would add a provision that would allow extensions of the 
60-day time limit if the parties agree to extend the timelines so that 
they can engage in mediation or other alternative means of dispute 
resolution. This change is intended to support cooperative dispute 
resolution efforts, and not to result in uniform extensions. Proposed 
Sec.  300.152(c)(1) would revise the language in current Sec.  
300.661(c)(1) to provide a simplified process for setting aside 
complaints that also are the subject of a due process hearing, which 
should aid State implementation of the State complaint process. 
Finally, current Sec.  300.661(c)(3) regarding a complaint involving a 
public agency's failure to implement a due process decision would be 
removed. The enforcement and implementation of due process hearing 
decisions are matters in the province of State and Federal courts.
    Proposed Sec.  300.153, regarding the filing of a complaint, would 
retain the current provisions in Sec.  300.662, with some changes. 
Proposed Sec.  300.153(b)(3) and (4) would add new information 
requirements for complaints, similar to the basic notice requirement 
for filing a due process complaint, in order to give the public agency 
the information that would allow it to attempt to resolve the complaint 
at the earliest opportunity. Proposed Sec.  300.153(c) would revise the 
language in current Sec.  300.662(c) to require that the complaint must 
allege a violation that occurred not more than one year prior to the 
date the complaint is received, removing references to longer periods 
for continuing violations and for compensatory services claims, to 
ensure expedited resolution for public agencies and children with 
disabilities. A one-year timeline is reasonable, and will assist in 
smooth implementation of the State complaint procedures. Finally, 
proposed Sec.  300.153(d) would add a new requirement that the party 
filing a complaint forward a copy to the public agency involved at the 
same time as the party files the complaint with the SEA. This will 
ensure that the public agency involved has knowledge of the issues 
raised, and an opportunity to resolve them directly with the 
complaining party.

Methods of Ensuring Services

    Proposed Sec.  300.154, regarding methods of ensuring services, 
generally would retain the current provisions in Sec.  300.142. 
Consistent with changes in section 612(a)(11) of the Act, the proposed 
regulation would clarify in Sec.  300.154(b)(1)(i), that a public 
agency

[[Page 35791]]

may fulfill its obligation to ensure FAPE either directly or through 
contracts or other arrangements pursuant to Sec.  300.154(a) or (c). 
Likewise, the proposed regulation would clarify, in Sec.  
300.154(b)(2), that the LEA or State agency is authorized to claim 
reimbursement and, in Sec.  300.154(c)(3), that other appropriate 
written methods also must be approved by the Secretary. Consistent with 
statutory changes regarding submission of State information, the 
proposed regulation would remove the current regulatory language in 
Sec.  300.142(d), that the State have on file with the Secretary, 
information to demonstrate that the requirements of this regulation are 
met. However, as reflected in proposed Sec.  300.704(a)(3), section 
611(e)(1)(C) of the Act requires that States certify to the Secretary 
that agreements to establish responsibility for services are current 
before the State may expend section 611 funds for State administration.
    Proposed Sec.  300.154(d)(2)(iv) would include a new provision that 
to access the parent's public insurance proceeds, the public agency 
must obtain parental consent, in accordance with proposed Sec.  300.622 
the first time that access is sought, and notify parents that refusal 
to allow access to their public insurance does not relieve the public 
agency of its responsibility to ensure that all required services are 
provided at no cost to the parents. Under Part B of the Act, special 
education and related services, as well as supplementary aids and 
services and supports that an IEP Team determines a child with a 
disability needs in order to receive FAPE, must be provided at no cost 
to the parents or the child. Use of a parent's insurance often imposes 
costs to the parent that are not, and often cannot be known at the time 
the costs are billed to the insurance provider. Under the Family 
Educational Rights and Privacy Act of 1974, 20 U.S.C. 1232g (FERPA), a 
child's records cannot be released without parental consent, except for 
a few specified exceptions. No FERPA exception permits public agencies 
to release educational records for insurance billing purposes without a 
parent's consent. We must ensure that a parent consents to the release 
of a child's records for that purpose and that the parents are informed 
that refusing to give consent to the release of education records for 
that purpose will not prevent a child from receiving the services that 
are in the child's IEP.
    Proposed Sec.  300.154(e) would retain the current requirements 
regarding children with disabilities who are covered by private 
insurance. Proposed Sec.  300.154(f), (g), and (h), respectively, 
regarding use of Part B funds, proceeds from public and private 
insurance, and construction are essentially the same as paragraphs (g), 
(h), and (i) of Sec.  300.142 of the current regulations.

Additional Eligibility Requirements

    Proposed Sec.  300.155, regarding hearings for LEA eligibility, 
would remove the current requirements in Sec.  300.144 that States have 
procedures on file with the Secretary, but generally would retain the 
requirement that States have procedures to give an LEA notice and an 
opportunity for a hearing prior to a final determination that it is not 
eligible for funds under Part B.
    Current Sec. Sec.  300.135 and 300.136, regarding a comprehensive 
system of personnel development and personnel standards, would be 
removed consistent with the statutory removal of these provisions in 
the Act (see section 612(a)(14) and (15) of the Act in effect before 
December 3, 2004) relating to the comprehensive system of personnel 
development and personnel standards.
    Proposed Sec.  300.156, regarding personnel qualifications, would 
include the statutory provisions related to States' establishment and 
maintenance of personnel qualifications for special education teachers 
that align Part B of the Act with the highly qualified teacher 
provisions in section 1119(a)(2) of the ESEA; and also address 
personnel qualifications for related services providers and 
paraprofessionals. As provided in note 21 of the Conf. Rpt., the 
incorporated provisions require that special education teachers obtain 
full State certification as special education teachers, but it does not 
prevent regular education and other teachers who are highly qualified 
in particular subjects from providing instruction in core academic 
subjects to children with disabilities in those subjects. For example, 
a reading specialist who is highly qualified in reading instruction, 
but who is not certified as a special education teacher, would not be 
prohibited from providing reading instruction to children with 
disabilities. Proposed Sec.  300.156(a) contains the general 
requirement that a State's qualifications ensure that personnel 
carrying out the purposes of part 300 are appropriately and adequately 
prepared and trained, including that those personnel have the content 
knowledge and skills to serve children with disabilities.
    Proposed Sec.  300.156(b) would incorporate the provisions in 
section 612(a)(14)(B) of the Act regarding personnel qualifications for 
related services providers and paraprofessionals. This would include 
the requirement that the State's standards must ensure that related 
services personnel and paraprofessionals meet qualifications that are 
consistent with any State-approved or recognized certification, 
licensing, registration or other comparable requirements for their 
professional discipline. These procedures also must ensure that related 
services personnel who deliver services meet applicable qualification 
standards and have not had certification or licensure requirements 
waived on an emergency, temporary, or provisional basis. Proposed Sec.  
300.156(b) reflects the comment in note 97 of the Conf. Rpt. that the 
current regulations requiring related services providers to meet the 
highest State standard applicable to their profession across all State 
agencies have established an unreasonable standard for SEAs to meet, 
and as a result, have led to a shortage of the availability of related 
services for students with disabilities. Conferees intended for SEAs to 
establish rigorous qualifications for related services providers to 
ensure that students with disabilities receive the appropriate quality 
and quantity of care. SEAs are encouraged to consult with LEAs, other 
State agencies, the disability community, and professional 
organizations to determine the appropriate qualifications for related 
services providers, including the use of consultative, supervisory, and 
collaborative models to ensure that students with disabilities receive 
the services described in their individual IEPs. To that end, proposed 
Sec.  300.156(b)(2)(iii), similar to the current regulation in Sec.  
300.136(f), generally would permit States to allow paraprofessionals 
and assistants who are appropriately trained and supervised to assist 
in providing special education and related services under Part B of the 
Act to children with disabilities.
    Proposed Sec.  300.156(c) would incorporate the new requirement in 
section 612(a)(14)(C) of the Act that all special education teachers be 
highly qualified by the deadline established in the ESEA (the end of 
the 2005-2006 school year). It would also specify that this requirement 
applies only to public school special education teachers, in light of 
the statutory definition of ``highly qualified'' in section 602(10) of 
the Act. Proposed Sec.  300.156(d) would include the statutory 
authorization for a State to adopt a policy requiring LEAs to take 
measurable steps to recruit, hire, train, and retain highly qualified 
personnel.
    Proposed Sec.  300.156(e) would incorporate the language in section 
612(a)(14)(E) of the Act, regarding the

[[Page 35792]]

rule of construction that these provisions do not create a right of 
action on behalf of an individual student for the failure of a 
particular SEA or LEA staff person to be highly qualified or prevent a 
parent from filing a State complaint with the SEA about staff 
qualifications under Sec. Sec.  300.151 through 300.153 of the proposed 
regulations.
    Proposed Sec.  300.157, regarding performance goals and indicators, 
would revise the current Sec.  300.137, consistent with the revised 
provisions in section 612(a)(15) of the Act. Proposed Sec.  
300.157(a)(2) would include a new provision that aligns the goals and 
indicators with the State's definition of adequate yearly progress, 
including progress by children with disabilities, under section 
1111(b)(2)(C) of the ESEA. Proposed Sec.  300.157(a)(3) would retain 
the current provision in Sec.  300.137(b), that public agencies must 
address graduation and dropout rates. In order to conform to the 
language in section 612(a)(15) of the Act, the proposed regulation 
would contain the following changes: proposed Sec.  300.157(a)(4) would 
remove from the current provision in Sec.  300.137(a)(2), the term 
``maximum'' before ``extent appropriate'' and add the word ``any'' 
before ``other goals and standards for all children established by the 
State.'' Likewise, proposed Sec.  300.157(b) would remove from the 
current provision in Sec.  300.137(b), the words appearing after the 
word, ``achieving'' and add, in their place, the words, ``the goals 
described in paragraph (a) of this section, including measurable annual 
objectives for progress by children with disabilities under section 
1111(b)(2)(C)(v)(II)(cc) of the ESEA; and''. Proposed Sec.  300.157(c) 
would change the requirement for reporting to the public and to the 
Secretary in current Sec.  300.137(c) from every two years to annually 
and would provide that elements of the report under section 1111(h) of 
the ESEA may be included in the annual report under Part B of the Act.
    Proposed Sec.  300.160, regarding participation in assessments, 
would replace Sec. Sec.  300.138 and 300.139 of the current regulations 
and would incorporate the changes in section 612(a)(16) of the Act. For 
reasons of burden reduction described throughout this preamble, the 
proposed regulation would remove the current requirement in Sec.  
300.138 that the State have information on file with the Secretary.
    Consistent with language in section 613(a)(16) of the Act, proposed 
Sec.  300.160(a) would add to the current provision in Sec.  300.138(a) 
the word ``all'' before the word ``children'', and before the phrase 
``general State and districtwide assessment programs'' and would 
clarify that this requirement includes assessments described in section 
1111 of the ESEA. Proposed Sec.  300.160(a) also would remove, from the 
current provision in Sec.  300.138(a), ``modifications in 
administration'' and add, in its place, ``alternate assessments'' and 
would add after the word ``necessary'', the words, and ``as indicated 
in their respective IEPs.''
    Proposed Sec.  300.160(b) would require that States, (or, in the 
case of districtwide assessments, LEAs) develop guidelines for 
providing appropriate accommodations in assessments. Proposed Sec.  
300.160(c)(1) would address guidelines for participation in alternate 
assessments for those children who cannot participate in regular 
assessments as indicated in their IEPs. Proposed Sec.  300.160(c)(2) 
would include a provision that, in the case of assessments of student 
academic progress, alternate assessments and guidelines under proposed 
Sec.  300.160(c)(1) are aligned with the State's challenging academic 
content and challenging student academic achievement standards or the 
alternate achievement standards, if adopted under the regulations 
implementing section 1111(b)(1) of the ESEA. Proposed Sec.  
300.160(c)(3) would require that the State conduct the alternate 
assessments described in section 1111(b)(1) of the ESEA.
    Proposed Sec.  300.160(d) would incorporate the requirement in 
section 612(a)(16)(D) of the Act for the SEA, in the case of a 
statewide assessment, and the LEA, in the case of a districtwide 
assessment, to report to the public on the assessment of children with 
disabilities with the same frequency and in the same detail that it 
reports on the assessment of nondisabled children, and replace the 
current requirements in Sec.  300.139.
    Proposed Sec.  300.160(e) would incorporate the new requirement in 
section 612(a)(16)(E) of the Act that the SEA, in the case of statewide 
assessments, and the LEA, in the case of districtwide assessments, to 
the extent possible, use universal design in developing and 
implementing assessments.
    Consistent with section 612(a)(17) of the Act, the current 
provisions in Sec.  300.155, regarding use of funds; Sec.  300.152, 
regarding non-commingling; and Sec.  300.153, regarding State-level 
nonsupplanting, would be combined into proposed Sec.  300.162. The 
proposed regulation generally would retain the requirements that Part B 
funds be expended in accordance with Part B of the Act, that Part B and 
State funds not be commingled, and that Part B funds be used to 
supplement, and in no case to supplant other Federal, State, and local 
funds expended for special education and related services. Consistent 
with statutory changes discussed previously, the proposed regulation 
would eliminate the current provision in Sec.  300.155, that States 
have policies and procedures on file with the Secretary; would replace 
the current provisions in Sec.  300.152(a), that States provide the 
Secretary an assurance; and would replace the current provision in 
Sec.  300.153(a)(2), that the State have information on file with the 
Secretary demonstrating compliance with the use of Part B funds to 
supplement and not supplant, with straightforward statements of the 
statutory requirements. These changes would be consistent with changes 
in section 612(a) of the Act regarding State submission of information. 
Proposed Sec.  300.162(b)(2) would retain the current provision in 
Sec.  300.152(b) clarifying that use of a separate accounting system 
including an audit trail of expenditures of Part B funds would satisfy 
the prohibition on commingling.
    Proposed Sec.  300.162(c)(1) would retain the current provision in 
Sec.  300.153(a)(1), regarding the basic non-supplanting requirement. 
Proposed Sec.  300.162(c)(2) would retain the current provision in 
Sec.  300.153(b), regarding the Secretary's ability to waive, in whole 
or in part, the State-level nonsupplanting requirement if the State 
provides clear and convincing evidence regarding the availability of 
FAPE to all children with disabilities. This waiver would be addressed 
further in proposed Sec.  300.164.
    Proposed Sec.  300.163 generally would retain the current 
provisions in Sec.  300.154, regarding maintenance of State financial 
support. However, consistent with the language in section 612(a) of the 
Act, the proposed regulation would eliminate the provision regarding 
information that States must have on file with the Secretary 
demonstrating, on either a total or per-capita basis, that the State 
will not reduce the amount of State financial support for special 
education and related services for children with disabilities.
    Proposed Sec.  300.164, regarding waiver of the requirement 
regarding supplementing and not supplanting Part B funds, would retain 
the current provisions in Sec.  300.589, except that to reduce 
regulatory burden, proposed Sec.  300.164(c)(4) would reduce the number 
of entities with which a State must consult when determining that FAPE 
is currently available to all

[[Page 35793]]

eligible children with disabilities in the State, and eliminate the 
requirement for a summary of the input of the entities consulted.
    Proposed Sec.  300.165(a) would incorporate the language in section 
612(a)(19) of the Act regarding public participation in the adoption of 
policies and procedures to implement Part B of the Act, which is the 
same as the current provision in Sec.  300.148(a)(1). Current Sec.  
300.148(a)(2) and (b), regarding alternate ways of meeting the public 
participation requirement and the requirement that the State 
documentation be on file with the Secretary, would be removed. The 
current provisions in Sec. Sec.  300.280 through 300.284 regarding 
public participation also would be removed. Removing the requirement 
for States to submit extensive documentation to the Secretary on how 
the public participation requirements are met should reduce regulatory 
burden on States. States are required to comply with the public 
participation requirements of the General Education Provisions Act, in 
20 U.S.C. 1232d(b)(7), as provided for in proposed Sec.  300.165(b), as 
well as State-specific requirements, in adopting policies and 
procedures relating to Part B of the Act, which should provide 
sufficient opportunities for public participation.
    Proposed Sec.  300.166 would incorporate the language in section 
612(a)(20) of the Act, regarding the rule of construction on use of 
Federal funds to satisfy State-mandated funding of obligations to LEAs 
for purposes of complying with proposed Sec. Sec.  300.162 and 300.163.

State Advisory Panel

    Proposed Sec.  300.167, regarding State advisory panels, would 
incorporate the provisions in section 612(a)(21)(A) of the Act and 
would remove from current Sec.  300.650, language regarding information 
on file with the Secretary. The proposed regulation also would remove 
the provision from current Sec.  300.650 permitting modification of 
existing advisory panels to be consistent with section 612(a)(21)(A) of 
the Act.
    Proposed Sec.  300.168, regarding the membership of State advisory 
panels, generally would retain the current provisions in Sec.  300.651. 
In addition, proposed Sec.  300.168(a)(5) and (10), would incorporate 
the statutory references to officials who carry out activities under 
subtitle B of title VII of the McKinney-Vento Homeless Assistance Act, 
42 U.S.C. 11431 et seq., and a representative from the State child 
welfare agency responsible for foster care, respectively. Consistent 
with the Act, proposed Sec.  300.168(b) would include a provision in 
the special rule that clarifies that for panel membership a majority of 
the members of the panel must be individuals with disabilities or 
parents of children with disabilities (ages birth through 26).
    Proposed Sec.  300.169, regarding duties of the advisory panel, 
generally would retain the current provisions of Sec.  300.652, except 
that the current language in Sec.  300.652(b), regarding advising on 
eligible students with disabilities in adult prisons, would be removed. 
Given the breadth of its statutory responsibilities, nonstatutory 
mandates on the State advisory panels would be removed.
    To provide greater flexibility for States in the operations of 
advisory panels, the current provision in Sec.  300.653, regarding 
procedures of the advisory panel, would be removed.

Other Provisions Required for State Eligibility

    Proposed Sec.  300.170, regarding suspension and expulsion rates, 
would retain most of the current provisions in Sec.  300.146, but would 
remove the language that the States have information on file with the 
Secretary, consistent with statutory changes on State submission of 
information. In addition, consistent with section 612(a)(22) of the 
Act, proposed Sec.  300.170(b) would replace, from the current Sec.  
300.146(b), ``behavioral interventions'' with ``positive behavioral 
interventions and supports.''
    Proposed Sec.  300.171, regarding the annual description of the use 
of Part B funds, would clarify the current Sec.  300.156(a)(1) that 
addresses the amounts retained for State administration and State-level 
activities, generally would retain the current provisions in Sec.  
300.156(a)(2) and (b), and would remove the current provision in Sec.  
300.156(c) regarding percentages distributed to LEAs since this 
information does not assist the Department in determining whether an 
SEA is complying with Part B of the Act in this regard. Proposed Sec.  
300.171 also would add a new paragraph (c) to clarify that, based on 
section 611(g)(2) of the statute, the provisions of this section do not 
apply to the Virgin Islands, Guam, American Samoa, the Commonwealth of 
the Northern Mariana Islands, and the freely associated States.
    Proposed Sec.  300.172, regarding access to instructional 
materials, would incorporate the new language in section 612(a)(23) of 
the Act regarding the timely provision of instructional materials to 
blind persons or other persons with print disabilities. Proposed Sec.  
300.172 uses ``persons'' to conform to the language in the Act. 
However, in the context of this regulatory provision, ``persons'' means 
``children.'' Proposed Sec.  300.172(a) would repeat the requirement 
from section 612(a)(23)(A) of the Act that the State must adopt the 
National Instructional Materials Accessibility Standard (NIMAS) in a 
timely manner after its publication in the Federal Register by the 
Department. The NIMAS will be the subject of a separate rulemaking 
process. In that proposed rulemaking document, we will propose to add 
the NIMAS to part 300 as an appendix.
    Proposed Sec.  300.172(b) would incorporate the provision in 
section 612(a)(23)(B) of the Act that a State is not required to 
coordinate with the National Instructional Materials Accessibility 
Center (NIMAC) and the requirements that apply if an SEA chooses not to 
coordinate with the NIMAC. Proposed Sec.  300.172(b)(3) would provide 
that nothing in this section would relieve an SEA of its responsibility 
to ensure that children with disabilities who need instructional 
materials in accessible formats, but who do not fall within the 
category of children for whom the SEA may receive assistance from 
NIMAC, receive those instructional materials in a timely manner. Timely 
access to appropriate and accessible instructional materials is an 
inherent component of public agencies' obligations under the Act to 
ensure that FAPE is available for children with disabilities and that 
they participate in the general education curriculum as specified in 
their IEPs. The provisions in section 612(a)(23) of the Act will assist 
SEAs in carrying out that responsibility for most children with 
disabilities who need accessible instructional materials. Section 
674(e)(3)(A) of the Act limits the authority of the NIMAC to provide 
assistance to SEAs and LEAs in acquiring instructional materials for 
children who are blind, have visual disabilities, are unable to read or 
use standard printed materials because of physical limitations, and 
children who have reading disabilities that result from organic 
dysfunction, as provided for in 36 CFR Sec.  701.10(b). Clearly, SEAs 
and LEAs that choose to use the services of the NIMAC will be able to 
assist blind persons or other persons with print disabilities who need 
accessible instructional materials through this mechanism. However, 
SEAs and LEAs still have an obligation to provide accessible 
instructional materials in a timely manner to other children with 
disabilities, who also may need accessible materials even though SEAs

[[Page 35794]]

and LEAs may not receive assistance for these children from NIMAC.
    Proposed paragraph Sec.  .172(c) would incorporate the provision in 
section 612(a)(23)(C) of the Act regarding preparation and delivery of 
files if an SEA chooses to coordinate with the NIMAC.
    In accordance with section 612(a)(23)(D) of the Act, Sec.  
300.172(d) would require an SEA, to the maximum extent possible, to 
collaborate with the State agency responsible for assistive technology 
programs. Proposed Sec.  300.172(e) contains, in accordance with 
section 612(a)(23)(E) of the Act, definitions of blind persons or other 
persons with print disabilities, NIMAC, NIMAS, and specialized formats.
    Proposed Sec.  300.173, regarding State policies and procedures 
designed to prevent inappropriate overidentification and 
disproportionality, would incorporate the new provision in section 
612(a)(24) of the Act. This proposed regulation would require the State 
to have in effect, consistent with section 618(d) of the Act, policies 
and procedures to prevent the inappropriate overidentification or 
disproportionate representation by race and ethnicity of children as 
children with disabilities, including children with disabilities with a 
particular impairment.
    Proposed Sec.  300.174 would incorporate the new provision in 
section 612(a)(25) of the Act and would prohibit State and LEA 
personnel from requiring parents to obtain prescriptions for controlled 
substances for a child as a condition of the child's school attendance, 
the child's receipt of a Part B evaluation, or the child's receipt of 
services. Proposed paragraph Sec.  300.174(b) would contain the 
statutory rule of construction in section 612(a)(25)(B) of the Act and 
would clarify that this provision does not create a Federal prohibition 
against teachers and other school personnel consulting or sharing with 
parents their observations on the student's functional or academic 
performance, and behavior in the classroom or school, or the child's 
possible need for an initial evaluation for special education and 
related services.
    Proposed Sec.  300.175, regarding the SEA as provider of FAPE or 
direct services, generally would retain the current provisions in Sec.  
300.147. The proposed regulation would remove the provision that States 
must have information on file with the Secretary demonstrating that 
they meet these requirements, consistent with statutory changes 
discussed previously.
    Consistent with the statutory changes, proposed Sec.  300.176, 
regarding exceptions for prior State plans and modifications to the 
plans, generally would combine and retain the current provisions in 
Sec. Sec.  300.111 and 300.112, with some minor changes. The date in 
proposed Sec.  300.176(a) would be changed to December 3, 2004, the 
date on which the Act was signed into law. Consistent with the statute, 
proposed Sec.  300.176(b)(1) would revise the current language from 
``State decides are necessary'' to ``State determines necessary.'' 
Consistent with the Act, proposed Sec.  300.176(b)(2) would replace 
references to ``policies and procedures'' with ``application'' and 
``original'' State plan. Consistent with the Act, proposed Sec.  
300.176(c)(1) would reference December 3, 2004, the date on which the 
Act was signed into law.

Department Procedures

    Proposed Sec.  300.178, regarding the Secretary's determination of 
State eligibility to receive a grant, would retain the current 
requirements in Sec. Sec.  300.113(a) and 300.580.
    Proposed Sec.  300.179, regarding notice and hearing before 
determining a State is not eligible to receive a grant, would retain 
the current requirements in Sec. Sec.  300.113(b) and 300.581.
    Proposed Sec.  300.180, regarding the hearing official or panel, 
would retain the current requirements in Sec.  300.582.
    Proposed Sec.  300.181, regarding the hearing procedures, would 
retain the current requirements in Sec.  300.583.
    Proposed Sec.  300.182, regarding the initial and final hearing 
decisions, would retain the current requirements in Sec.  300.584 
except proposed Sec.  300.182(h) would be revised to clarify that the 
Secretary rejects or modifies the initial decision of the Hearing 
Official or Hearing Panel if the Secretary finds that it is clearly 
erroneous.
    Proposed Sec.  300.183, regarding filing requirements, would retain 
the current requirements in Sec.  300.585.
    Proposed Sec.  300.184, regarding judicial review, would retain the 
current requirements in Sec.  300.586.
    Proposed Sec.  300.186, regarding assistance under other Federal 
programs, would incorporate the provisions in section 612(e) of the 
Act. Proposed Sec.  300.186 would clarify the current requirements in 
Sec.  300.601, regarding the relation of Part B to assistance under 
other Federal programs, and would continue to provide that Part B of 
the Act may not be construed to permit a State to reduce or alter 
eligibility for medical or other assistance for children with 
disabilities under titles V and IX of the Social Security Act, but 
would reference ``with respect to the provision of FAPE for children 
with disabilities'' instead of ``services that are part of FAPE.''

By-pass for Children in Private Schools

    The proposed regulations regarding by-pass for children in private 
schools would incorporate changes in section 612(f) of the Act and 
would represent the first amendments to these regulations since they 
were adopted in 1984. Because the statutory changes related to the 
participation of parentally-placed private school children with 
disabilities should make it more likely that these procedures will be 
implemented, these proposed revisions would align the by-pass 
provisions from Part B of the Act with the general by-pass procedures 
in the Department's general administrative regulations in 34 CFR 76.670 
through 76.677 that apply to other Department programs, including 
programs under titles I and IX of the ESEA. This alignment should help 
to ensure consistent implementation of the by-pass provisions 
throughout the Department.
    Proposed Sec.  300.190, regarding the general by-pass provision, 
would revise the current requirements in Sec.  300.480. Consistent with 
changes in section 612(f)(1) of the Act, the proposed regulation would 
retain the current authority for a by-pass and would add additional 
authority in cases where the Secretary determines that an SEA, LEA, or 
other entity has substantially failed or is unwilling to provide for 
equitable participation. The proposed regulation generally would retain 
the current provision in Sec.  300.480(b) regarding waiver of the 
requirements in these proposed regulations governing parentally-placed 
private school children with disabilities.
    Proposed Sec.  300.191, regarding services under a by-pass, 
generally would retain the current provisions in Sec.  300.481, but 
with some exceptions. Proposed Sec.  300.191(a)(1) would replace ``The 
prohibition'' with ``Any prohibition'' and would add ``and'' at the end 
of Sec.  300.191(a)(1). The current provision in Sec.  300.481(a)(3), 
regarding policies and procedures, would be removed consistent with 
other burden reduction changes in these proposed regulations. Proposed 
Sec.  300.191(a) would add ``and, as appropriate, LEA or other public 
agency officials'' and paragraphs (b) and (c)(1) of proposed Sec.  
300.191 would add ``LEA or other public agency.'' These changes are 
necessary to ensure effective implementation of the by-pass provision 
within an affected State because, in general, a by-pass would be 
implemented only in a specific LEA or

[[Page 35795]]

other public agency within the State and not statewide. Thus, the 
change in proposed Sec.  300.191(a) would ensure that the Secretary 
also consults with appropriate agency officials in any affected LEA or 
public agency within the State.
    Proposed Sec.  300.191(c)(1), regarding the calculation of the 
amount per child that is to be paid to providers, would revise the 
current provision in Sec.  300.481(c)(1) to reflect the provision in 
section 612(f)(2)(A) of the Act.
    Proposed Sec. Sec.  300.192 and 300.193, regarding notice of intent 
to implement a by-pass and request to show cause, would retain the 
current provisions in Sec. Sec.  300.482 and 300.483, but would add 
``LEA or other public agency'' for consistency with statutory language.
    Proposed Sec.  300.194, regarding the show cause hearing, would 
retain the current provisions in Sec.  300.484 and would add language 
to address statutory changes and align the proposed regulation with the 
by-pass regulations in 34 CFR 76.673 and 76.674 that apply to other 
Department programs. Proposed Sec.  300.194(a) would add ``LEA or other 
public agency'' to make the provisions consistent with language in 
section 612(f) of the Act. Proposed Sec.  300.194(a)(3) is a new 
provision that would provide an opportunity for an SEA, LEA, or other 
public agency and representatives of private schools to be represented 
by legal counsel and to submit oral or written evidence and arguments. 
Proposed Sec.  300.194(d) would incorporate the by-pass provision in 34 
CFR 76.763(b), and would specify that the designee conducting the 
hearing has no authority to require or conduct discovery. Proposed 
Sec.  300.194(g) would incorporate the by-pass provision in 34 CFR 
76.674(b), and would specify that within 10 days after the hearing, the 
designee indicates that a decision will be issued on the basis of the 
existing record or requests further information from one or more of the 
parties to the hearing.
    Proposed Sec.  300.195, regarding the show cause hearing decision, 
would retain the current provisions in Sec.  300.485 and add language 
to address statutory changes and to align the proposed regulation with 
the by-pass regulations in 34 CFR 76.675. Proposed Sec.  300.195(a)(1) 
would incorporate the 120-day time period for closing the record of the 
hearing from the by-pass provision in 34 CFR 76.675(a)(1). Proposed 
Sec.  300.195(b) would replace the 15-day time period to submit 
comments and recommendations on the designee's decision with the 30-day 
time period consistent with 34 CFR 76.675(b). Proposed Sec.  300.195(c) 
would replace ``SEA'' with ``all parties to the show cause hearing'' in 
order to make the provision consistent with language in section 612(f) 
of the Act.
    Proposed Sec. Sec.  300.196 and 300.197, regarding filing 
requirements and judicial review, would retain the current regulations 
in Sec. Sec.  300.486 and 300.487, respectively.
    Proposed Sec.  300.198, regarding continuation of a by-pass, is a 
new provision that would incorporate the continuation of a by-pass 
requirement in 34 CFR 76.677 and would permit continuation of the by-
pass until the Secretary determines that the SEA, LEA, or other public 
agency will meet the requirements for providing services to private 
school children.
    Proposed Sec.  300.199, regarding State administration, would 
incorporate the requirements in section 608 of the Act requiring that 
rulemaking conducted by the State conform to the purposes of Part B of 
the Act, that States minimize the number of rules, regulations, and 
policies to which LEAs and schools are subject to under the Act, and 
identify in writing any rule, regulation, or policy that is State-
imposed and not required under the Act and its implementing 
regulations.

Subpart C--LEA Eligibility

    Proposed Sec.  300.200 would be similar to the current Sec.  
300.180 regarding the conditions of LEA eligibility, but would be 
revised consistent with the change in section 613(a) of the Act to 
require LEAs to provide assurances, rather than demonstrate, to the 
State that they meet the eligibility conditions. Cross-references to 
those eligibility conditions would be updated.
    Proposed Sec.  300.201, regarding consistency with State policies, 
would be essentially the same as the current Sec.  300.220(a), with 
appropriate updating to reflect the structure of these proposed 
regulations. Current Sec.  300.220(b) concerning policies on file with 
the SEA would be removed in light of the statutory change requiring 
only that an LEA provide assurances regarding its policies and 
procedures.
    Proposed Sec.  300.202 would combine the provisions addressed in 
current Sec. Sec.  300.184(c) and 300.185, regarding excess cost 
requirements, and current Sec.  300.230, regarding use of funds, with 
appropriate updating. Current Sec.  300.184(a) would be removed because 
it is duplicative of the requirement in proposed Sec.  300.202(a)(2) 
that Part B funds must be used only to pay the excess costs of special 
education and related services to children with disabilities. The 
definition of excess costs in the current Sec.  300.184(b) would be 
moved to proposed Sec.  300.16 of subpart A of these proposed 
regulations.
    Proposed Sec.  300.203 would incorporate current Sec.  300.231 on 
LEA maintenance of effort, with appropriate updating to reflect the 
structure of these proposed regulations. The standard for determining 
whether an LEA is complying with the LEA maintenance of effort 
requirement would be in proposed Sec.  300.203(b) and would be 
substantively the same as current Sec.  300.231(c). The language in 
current Sec.  300.231(b) would be removed, based on the statutory 
change requiring LEAs to provide assurances in their applications to 
the State, rather than information that demonstrates their compliance.
    Proposed Sec.  300.204 would replace current Sec.  300.232, 
regarding the exceptions to the LEA maintenance of effort provision, 
with language that more closely reflects the language in section 
613(a)(2)(B) of the Act and clarifies the conditions under which the 
LEA may reduce the level of expenditures under Part B of the Act below 
the level of expenditures for the preceding year. As a result, we would 
remove the provisions in the current Sec.  300.232(a) that limit the 
circumstances under which LEAs may reduce expenditures as a result of 
the voluntary departure of special education personnel only to 
situations in which those departing personnel are replaced with 
qualified, lower-salaried staff. In addition, the requirements that the 
voluntary departures be in conformity with existing board policies, 
collective bargaining agreements, and applicable State statutes would 
be removed. These changes would reduce regulatory burden on school 
districts and provide increased flexibility in funding decisions. 
However, the basic requirement that LEAs must ensure the provision of 
FAPE to eligible children, regardless of the costs, would remain the 
same.
    Proposed Sec.  300.204(e) would add a condition based on section 
611(e)(3) of the Act, regarding the assumption of costs by the high 
cost fund, under which an LEA may reduce its level of expenditures. 
Proposed Sec.  300.204(e) is needed because LEAs should not be required 
to maintain a level of fiscal effort based on costs that are assumed by 
the SEA's high cost fund.
    Section 613(a)(2)(C)(i) of the Act was substantially revised to 
provide an adjustment to local fiscal effort in certain years in place 
of a provision in the prior law that permitted LEAs to use a portion of 
the Federal funds they received as local funds for special education. 
As a result, we would remove the current Sec.  300.233, which

[[Page 35796]]

was based on the prior statutory language, and replace it with proposed 
Sec.  300.205, which is based on the revised statute. Proposed Sec.  
300.205 would add an exception that, if an SEA exercises its authority 
under Sec.  300.230(a), LEAs in the State may not reduce local effort 
under Sec.  300.205 by more than the reduction in the State funds they 
receive. Section 300.230 only applies if an SEA pays or reimburses all 
LEAs in the State 100 percent of the non-Federal share of the costs of 
special education and related services.
    Under proposed Sec.  300.205, in years when the LEA receives an 
allocation of formula funds that exceeds the amount it received in the 
prior year, the LEA would be permitted to reduce the level of its local 
maintenance of effort amount by not more than 50 percent of the 
increase in its section 611 allocation. The LEA would then be required 
to use local funds equal to the reduction to carry out activities 
authorized under the ESEA, as explained in proposed Sec.  300.205(b). 
In subsequent years, an LEA that reduced local fiscal effort in 
accordance with proposed Sec.  300.205(a) would be required to meet 
this lower fiscal effort amount, unless it could again reduce local 
fiscal effort based on proposed Sec.  300.205. Proposed Sec.  
300.205(c) would describe circumstances under which the SEA may 
prohibit an LEA from reducing the level of local expenditure. Proposed 
Sec.  300.205(d) would implement the provision in section 
613(a)(2)(C)(iv) of the Act that provides that the amount of funds 
expended for early intervening services will count toward the maximum 
amount by which an LEA may reduce local maintenance of effort.
    LEAs wanting to exercise the authority in section 613(a)(2)(C)(iv) 
of the Act in conjunction with the authority to use not more than 15 
percent of the LEA's total grant for early intervening services under 
proposed Sec.  300.226 should use caution, however, because as noted in 
proposed Sec. Sec.  300.205(a) and (d), and 300.226(a), the operation 
of the local maintenance of effort reduction provision and the 
authority to use Part B funds for early intervening services under 
section 613(f)(1) of the Act and proposed Sec.  300.226(a) would be 
interconnected. The decisions that an LEA makes about the amount of 
funds that it would use for one purpose would affect the amount that it 
may use for the other. The following examples illustrate how these 
provisions affect one another:

    Example 1: In this example, the amount that is 15 percent of the 
LEA's total grant (see proposed Sec.  300.226(a)), which is the 
maximum amount that the LEA may use for early intervening services 
(EIS), is greater than the amount that may be used for local 
maintenance of effort (MOE) reduction (50 percent of the increase in 
the LEA's grant from the prior year's grant) (see proposed Sec.  
300.205(a)).

    Prior Year's Allocation: $900,000.
    Current Year's Allocation: $1,000,000.
    Increase: $100,000.
    Maximum Available for MOE Reduction: $50,000.
    Maximum Available for EIS: $150,000.
     If the LEA chooses to set aside $150,000 for EIS, it may 
not reduce its MOE (MOE maximum $50,000 less $150,000 for EIS means $0 
can be used for MOE).
     If the LEA chooses to set aside $100,000 for EIS, it may 
not reduce its MOE (MOE maximum $50,000 less $100,000 for EIS means $0 
can be used for MOE).
     If the LEA chooses to set aside $50,000 for EIS, it may 
not reduce its MOE (MOE maximum $50,000 less $50,000 for EIS means $0 
can be used for MOE).
     If the LEA chooses to set aside $30,000 for EIS, it may 
reduce its MOE by $20,000 (MOE maximum $50,000 less $30,000 for EIS 
means $20,000 can be used for MOE).
     If the LEA chooses to set aside $0 for EIS, it may reduce 
its MOE by $50,000 (MOE maximum $50,000 less $0 for EIS means $50,000 
can be used for MOE).

    Example 2: In this example, the amount that is 15 percent of the 
LEA's total grant (see proposed Sec.  300.226(a)), which is the 
maximum amount that the LEA may use for EIS, is less than the amount 
that may be used for MOE reduction (50 percent of the increase in 
the LEA's grant from the prior year's grant) (see proposed Sec.  
300.205(a)).

    Prior Year's Allocation: $1,000,000.
    Current Year's Allocation: $2,000,000.
    Increase: $1,000,000.
    Maximum Available for MOE Reduction: $500,000.
    Maximum Available for EIS: $300,000.
     If the LEA chooses to use no funds for MOE, it may set 
aside $300,000 for EIS (EIS maximum $300,000 less $0 means $300,000 for 
EIS).
     If the LEA chooses to use $100,000 for MOE, it may set 
aside $200,000 for EIS (EIS maximum $300,000 less $100,000 means 
$200,000 for EIS).
     If the LEA chooses to use $150,000 for MOE, it may set 
aside $150,000 for EIS (EIS maximum $300,000 less $150,000 means 
$150,000 for EIS).
     If the LEA chooses to use $300,000 for MOE, it may not set 
aside anything for EIS (EIS maximum $300,000 less $300,000 means $0 for 
EIS).
     If the LEA chooses to use $500,000 for MOE, it may not set 
aside anything for EIS (EIS maximum $300,000 less $500,000 means $0 for 
EIS).
    With regard to the new statutory provision on which proposed Sec.  
300.205 is based, note 122 of the Conf. Rpt. states:

    The Conferees intend for school districts to have meaningful 
flexibility to use local funds that are generated from their 
reduction in the maintenance of effort. The Conferees do not intend 
that school districts have to use these local funds for programs 
exclusively authorized under the Elementary and Secondary Education 
Act of 1965. The conferees recognize that most state and local 
education programs are consistent with the broad flexibility that is 
provided in section 5131 of the Elementary and Secondary Education 
Act of 1965.
    The Conferees intend that in any fiscal year in which the local 
educational agency or State educational agency reduces expenditures 
pursuant to section 613(a)(2)(C) or section 613(j), the reduced 
level of effort shall be considered the new base for purposes of 
determining the required level of fiscal effort for the succeeding 
year.

    In order to effectuate the flexibility in the use of local funds 
suggested by this language, proposed Sec.  300.205(b) would provide 
that the local funds equal to the reduction in local expenditures for 
special education and related services authorized by proposed Sec.  
300.205(a) may be used to carry out activities that could be supported 
with funds under the ESEA regardless of whether the LEA is actually 
using funds under the ESEA for those activities. An LEA can demonstrate 
that it meets the requirements in proposed Sec.  300.205(b) by showing 
that it has expended, for elementary and secondary education, an 
increased amount of local funds equal to the reduction under proposed 
Sec.  300.205(a) when compared to local expenditures for elementary and 
secondary education for the prior year.
    Proposed Sec.  300.206, regarding schoolwide programs under title I 
of the ESEA, would be essentially the same as the current Sec.  
300.234, with appropriate updating.
    Proposed Sec.  300.207, regarding personnel development, would 
reflect the new requirement under section 613(a)(3) of the Act that 
LEAs ensure that all needed personnel be appropriately and adequately 
prepared subject to the requirements that apply to SEAs regarding 
personnel qualifications and requirements under section 2122 of the 
ESEA.
    Current Sec.  300.221 on implementation of the State's 
comprehensive system of personnel development (CSPD) would be removed, 
as section 612(a) of the Act

[[Page 35797]]

no longer requires that a State develop and implement a CSPD.
    Proposed Sec.  300.208 on permissive uses of LEA funds would revise 
the current Sec.  300.235 in the following ways: Paragraph (a)(2) from 
the current Sec.  300.235 would be removed, as the authority to use 
Part B funds to develop and implement an integrated and coordinated 
services system was removed from the statute. Paragraphs (a)(2) and (3) 
of proposed Sec.  300.208 would incorporate the new statutory 
provisions permitting LEAs to use Part B funds for early intervening 
services and to establish and implement cost or risk sharing 
arrangements for high cost special education and related services, 
consistent with section 613(a)(4)(A)(ii) and (iii) of the Act. 
Paragraph (b) of proposed Sec.  300.208 would incorporate the new 
statutory authority for LEAs to use Part B funds for administrative 
case management services related to serving children with disabilities 
in section 613(a)(4)(B) of the Act. Current Sec.  300.235(b) would be 
removed because that information would be conveyed by the introductory 
material in proposed Sec.  300.208(a), with the cross-references 
updated.
    Proposed Sec.  300.209 would revise current Sec.  300.241, 
concerning treatment of charter schools and their students (based on 
changes in section 613(a)(5) of the Act), and would also incorporate 
current Sec.  300.312, regarding children with disabilities in public 
charter schools. Paragraph (a) of proposed Sec.  300.209 would include 
current Sec.  300.312(a), to clarify that children with disabilities 
who attend public charter schools retain all rights afforded under this 
part. Proposed Sec.  300.209(b) would include the provisions from 
section 613(a)(5) of the Act to clarify (in paragraph (b)(1)(i)) that, 
in providing services to children with disabilities attending charter 
schools that are public schools of the LEA, the LEA must provide 
supplementary and related services on site at the charter school to the 
same extent as it does at its other public schools. Paragraph 
(b)(1)(ii) of proposed Sec.  300.209 would specify that an LEA must 
provide funds under Part B of the Act to the LEA's charter schools on 
the same basis as it provides funds to its other schools, including 
proportional distribution based on the relative enrollment of children 
with disabilities, and that it must provide those funds at the same 
time as the LEA distributes funds to its other public schools.
    Proposed Sec.  300.209(b)(2) would include current Sec.  
300.312(c), to provide that if the public charter school is a school of 
an LEA that receives funding under Sec.  300.705 and includes other 
public schools, the LEA is responsible for ensuring that the 
requirements of this part are met (unless State law assigns that 
responsibility to some other entity), and must meet the requirements of 
proposed paragraph (b)(1) of this section.
    Proposed Sec.  300.209(c) would add current Sec.  300.312(b) 
(regarding public charter schools that are LEAs), to specify that a 
charter school covered by this paragraph is responsible for ensuring 
that the requirements of this part are met, unless State law assigns 
that responsibility to some other entity.
    Proposed Sec.  300.209(d) would include current Sec.  300.312(d). 
Paragraph (d)(1) of proposed Sec.  300.209 would provide that if a 
public charter school is not an LEA receiving funding under this part 
or a school that is part of an LEA receiving funding, the SEA is 
responsible for ensuring that the requirements of this part are met. 
Proposed Sec.  300.209(d)(2) would clarify that a State would not be 
precluded from assigning that responsibility to another entity, but the 
SEA must maintain the ultimate responsibility for ensuring compliance 
with this part.
    Proposed Sec.  300.210 would incorporate the new requirement in 
section 613(a)(6) of the Act that not later than two years after the 
date of enactment of the Individuals with Disabilities Education 
Improvement Act of 2004 (that is, not later than December 3, 2006), an 
LEA, when purchasing print instructional materials, must acquire those 
materials in the same manner as an SEA under proposed Sec.  300.172. 
Proposed Sec.  300.210(b)(1) also would make clear that an LEA would 
not be required to coordinate with the NIMAC, and proposed Sec.  
300.210(b)(2) would explain that if it chooses not to so coordinate, 
the LEA would be required to provide an assurance to the SEA that the 
LEA will provide instructional materials to blind and other print 
disabled persons in a timely manner. For the reasons explained 
elsewhere in this preamble under the discussion of proposed Sec.  
300.172, we would add paragraph (b)(3) to proposed Sec.  300.210 
specifying that nothing in proposed Sec.  300.210 would relieve an LEA 
of its obligations to ensure that children with disabilities who need 
instructional materials in accessible formats receive those 
instructional materials in a timely manner, even if it could not obtain 
assistance from NIMAC in doing so.
    Proposed Sec.  300.211 on LEAs providing information to the SEA to 
enable the SEA to carry out its duties under Part B of the Act would be 
essentially the same as the current Sec.  300.240(a), but would be 
appropriately updated. The current Sec.  300.240(b) regarding 
assurances the LEA would have to file with the SEA would be removed as 
unnecessary because that condition would be covered by proposed Sec.  
300.200.
    Proposed Sec.  300.212 on public availability of LEA eligibility 
information would be essentially the same as current Sec.  300.242, but 
with appropriate updating.
    Proposed Sec.  300.213 would reflect the new provision in section 
613(a)(9) of the Act regarding LEA cooperation with the Secretary's 
efforts under section 1308 of the ESEA to ensure the linkage of health 
and educational information pertaining to migratory children among the 
States.
    Proposed Sec.  300.220 on an exception for prior local plans would 
essentially consolidate the requirements in current Sec. Sec.  300.181 
and 300.182. In proposed Sec.  300.220, we use the term ``policies and 
procedures'' in place of the term ``application,'' which is used in 
section 613(b)(2) of the Act because we use the term policies and 
procedures in the current regulation. The statutory authority for 
proposed Sec.  300.220 is not new, and was not changed from prior law.
    Proposed Sec.  300.221 on notification of the LEA or State agency 
if determined ineligible, proposed Sec.  300.222 on LEA and State 
agency compliance determinations, proposed Sec.  300.223 on joint 
establishment of eligibility, and proposed Sec.  300.224 on the 
requirements for establishing joint eligibility are essentially the 
same as current Sec. Sec.  300.181, 300.196, 300.197, 300.190 and 
300.192, respectively, but with appropriate updating.
    The requirements in current Sec.  300.244 regarding permissible use 
of a portion of the LEA's Part B funds on coordinated services systems 
and current Sec. Sec.  300.245 through 300.250 regarding LEA use of 
Part B funds in school based improvement plans would be removed, as the 
statutory authority for those uses has been eliminated.
    Proposed Sec.  300.226 would implement the new authority under 
section 613(f) of the Act, which provides that an LEA may use not more 
than 15 percent of the Part B funds it receives for a fiscal year, less 
certain reductions, if any, to develop and implement coordinated, early 
intervening services for children who have not been identified as 
eligible under the Act but who need additional academic and behavioral 
support to succeed in a general education environment. Paragraph (c) of 
proposed Sec.  300.226 would clarify that nothing in proposed Sec.  
300.226 is construed to either limit or create a right to FAPE

[[Page 35798]]

under Part B of the Act or to delay appropriate evaluation of a child 
suspected of having a disability. We have included the language 
regarding evaluation of children suspected of having a disability in 
proposed Sec.  300.226(c) because we believe it is critical to ensure 
that any child suspected of being a child with a disability is 
evaluated in a timely manner and without any undue or unnecessary 
delay. Proposed paragraph Sec.  300.226(d) would reflect the reporting 
requirement in section 613(f)(4) of the Act. The term ``children'' 
would be used in this provision, in lieu of the statutory term 
``students'' to be consistent throughout part 300. Proposed Sec.  
300.226(e) would implement the provision in section 613(f)(5) of the 
Act that funds to provide early intervening services may be used in 
conjunction with ESEA funds for early intervening services aligned with 
ESEA activities under certain circumstances.
    Proposed Sec.  300.227 would incorporate provisions from the 
regulations in current Sec. Sec.  300.360 and 300.361 on direct 
services by the SEA when an LEA or State agency has not demonstrated 
its eligibility or has failed to apply for funds, is unable to 
establish and maintain programs of FAPE consistent with Part B of the 
Act, is unable or unwilling to be consolidated with one or more LEAs in 
order to establish and maintain programs of FAPE, or has one or more 
children best served by a regional or State program or service delivery 
system. Proposed Sec.  300.227(a)(1) would include the phrase ``or 
elected not to apply for its Part B allotment'' because there could be 
situations in which an LEA chooses not to accept funds under Part B of 
the Act. Finally, proposed Sec.  300.227 would reflect editorial 
changes made to eliminate repetition.
    Proposed Sec.  300.228 on State agency eligibility would be 
essentially the same as current Sec.  300.194, but with the appropriate 
updating of cross-references.
    Proposed Sec.  300.229 regarding disciplinary information would be 
the same as current Sec.  300.576.
    Proposed Sec.  300.230 would incorporate the new provision from 
section 613(i) of the Act on exceptions to SEA maintenance of effort 
requirements for a State for which the amount of the State's allocation 
under section 611 of the Act exceeds the amount available to the State 
for the preceding fiscal year and the State pays or reimburses all LEAs 
in the State, from State revenues, 100 percent of the non-Federal share 
of the costs of special education. Under these conditions, the SEA 
would be permitted to reduce its level of expenditures from State 
sources for the education of children with disabilities by not more 
than 50 percent of the amount of the increase in its section 611 
allocation from the prior fiscal year, unless prohibited from doing so 
by the Secretary, as provided in proposed Sec.  300.230(b). Paragraph 
(e)(2) of proposed Sec.  300.230, which is not in section 613(i) of the 
Act, would specify that if an SEA used its authority to reduce its 
effort under proposed Sec.  300.230, LEAs in the State would not be 
able to reduce local effort under proposed Sec.  300.205 by more than 
the reduction in State funds that they receive. Proposed Sec.  
300.230(e)(2) is necessary to ensure that SEAs and LEAs are not 
independently calculating the reduction in maintenance of effort 
permitted when a State is providing 100 percent of the non-Federal 
share of the costs of special education and related services.

Subpart D--Evaluations, Eligibility Determinations, IEPs, and 
Educational Placements

    The provisions in subpart D of these proposed regulations would 
reflect the requirements of section 614 of the Act. As a result, the 
provisions on parental consent and evaluations and reevaluations 
contained in subpart E of current regulations would be moved to subpart 
D of these proposed regulations. Also, the provisions on IEPs contained 
in subpart C of the current regulations would be renumbered, and in 
some cases, have been moved to subpart D of these proposed regulations.

Parental Consent

    Proposed Sec.  300.300 regarding parental consent for initial 
evaluations, reevaluations, and the initial provision of services would 
replace Sec.  300.505 of the current regulations and would incorporate 
new requirements regarding parental consent contained in section 
614(a)(1)(D) of the Act. Some of the provisions contained in proposed 
Sec.  300.300 would be similar to those contained in Sec.  300.505 of 
the current regulations, but with some differences.
    Proposed Sec.  300.300(a)(1)(i) would incorporate section 
614(a)(1)(D)(i)(I) of the Act, and would provide that with the 
exception of children who are wards of the State, the public agency 
proposing to conduct the evaluation must obtain informed parental 
consent before conducting an initial evaluation of a child to determine 
if the child qualifies as a child with a disability under the Act.
    Proposed Sec.  300.300(a)(1)(ii) would retain the provision in 
Sec.  300.505(a)(2) of the current regulations that consent for the 
initial evaluation may not be construed as consent for the initial 
provision of special education and related services. The proposed 
regulations would use the term ``initial provision'' rather than the 
statutory term ``receipt'' of special education and related services. 
This would make clear that consent does not need to be sought every 
time a particular service is provided to the child. The proposed 
regulation would continue to refer to consent for the initial provision 
of services, in lieu of using the statutory language, which refers to 
``consent for placement for receipt of special education and related 
services.'' This would be consistent with the revised language in 
section 614(a)(1)(D)(i)(I) of the Act and the Department's positi