,,ii  #aadth ,,congress  #ast ,session  
,s4 #dae  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,february #i1       
#bjae,mr4 ,udall 7for himself and ,mr4  
,heinrich7 introduced the following     
bill2 which was read twice and referred 
to the ,committee on ,health1           
,education1 ,labor1 and ,pensions  ,a   
,,bill  ,to amend the ,individuals with 
,disabilities ,education ,act in order  
to limit the penalties to a ,state that 
does not meet its maintenance of effort 
level of funding to a one-time penalty1 
and for other purposes4  #a4 ,short     
title ,this ,act may be cited as the    
,,idea ,,moe ,adjustment ,act4  #b4     
,,idea penalty limitation  7a7 ,in      
general ,section #faa7;d7 of the        
,individuals with ,disabilities         
,education ,act 7#bj ,u4,s4,c4          
#adaa7;d77 is amended by adding at the  
end the following3  7#e7 ,special rule  
regarding penalties  7,a7 ,distribution 
of funds ,in any case where a ,state's  
allocation under this subsection is     

reduced pursuant to section             
#fab7;a77#ah77;,b71 the ,secretary shall
 distribute to all other ,states that   
were not subject to a reduction in      
allocation under such section1 the      
amount by which any ,state's allocation 
under this subsection was reduced under 
such section1 in accordance with        
subclauses 7,,ii7 and 7,,iii7 of        
paragraph 7#c77;,a77i7 and without      
regard to paragraphs 7,a77i77,i7 and    
7,b7 of paragraph 7#c74  7,b7 ,use of   
funds by ,states ,each ,state that      
receives additional funds under         
subparagraph 7,a7 shall allocate such   
funds to local educational agencies in  
accordance with subsection 7f74  7,c7   
,no consideration for future years      
allocation ,in calculating the amounts  
for allocations under this subsection   
for fiscal year #bjac and all subsequent
 years1 the ,secretary1 when determining
 the amount a ,state received under this
 subsection for a preceding fiscal year1
 shall not consider--  7i7 any amount by

 which a ,state's allocation for fiscal 
year #bjab or any subsequent year is    
reduced pursuant to section             
#fab7;a77#ah72 and  7ii7 any amount by  
which a ,state's allocation increased1  
pursuant to subparagraph 7,a71 as a     
result of a ,state's reduction in       
allocation for fiscal year #bjab or any 
subsequent year4  4  7b7 ,application of
 reduction over multi-,year period      
,subparagraph 7,b7 of section           
#fab7;a77#ah7 of the ,individuals with  
,disabilities ,education ,act 7#bj      
,u4,s4,c4 #adab7;a77#ah77;,b77 is       
amended to read as follows3  7,b7       
,reduction of funds for failure to      
maintain support ,in any case where a   
,state fails to comply with the         
requirement of subparagraph 7,a7 for a  
fiscal year1 the ,state shall be subject
 to a reduction of the ,state's         
allocation of funds under section #faa  
by the amount by which the ,state fails 
to meet the requirement4 ,the ,secretary
 shall carry out such reduction1 in     

accordance with section #faa7;d77#e71   
by--  7i7 reducing the ,state's         
allocation under section #faa for the   
following fiscal year by the entire     
amount of the reduction2 or  7ii7       
applying the reduction to the ,state's  
allocations under such section over a   
multi-year period of not more than #e   
consecutive fiscal years1 until the     
entire amount of the reduction has been 
applied4  4