118 STAT. 2667 PUBLIC LAW 108–446—DEC. 3, 2004 year, the State may reserve the maximum amount the State was eligible to reserve under the preceding sentence for fiscal year 2006 (cumulatively adjusted by the rate of inflation as measured by the percentage increase, if any, from the preceding fiscal year in the Consumer Price Index For All Urban Consumers, pub lished by the Bureau of Labor Statistics of the Depart ment of Labor). ‘‘(ii) SMALL STATE ADJUSTMENT.—Notwithstanding clause (i) and except as provided in clause (iii), in the case of a State for which the maximum amount reserved for State administration is not greater than $850,000, the State may reserve for the purpose of carrying out State level activities for each of the fiscal years 2005 and 2006, not more than 10.5 percent from the amount of the State’s allocation under subsection (d) for each of the fiscal years 2005 and 2006, respec tively. For fiscal year 2007 and each subsequent fiscal year, such State may reserve the maximum amount the State was eligible to reserve under the preceding sentence for fiscal year 2006 (cumulatively adjusted by the rate of inflation as measured by the percentage increase, if any, from the preceding fiscal year in the Consumer Price Index For All Urban Consumers, pub lished by the Bureau of Labor Statistics of the Depart ment of Labor). ‘‘(iii) EXCEPTION.—If a State does not reserve funds under paragraph (3) for a fiscal year, then— ‘‘(I) in the case of a State that is not described in clause (ii), for fiscal year 2005 or 2006, clause (i) shall be applied by substituting ‘9.0 percent’ for ‘10 percent’; and ‘‘(II) in the case of a State that is described in clause (ii), for fiscal year 2005 or 2006, clause (ii) shall be applied by substituting ‘9.5 percent’ for ‘10.5 percent’. ‘‘(B) REQUIRED ACTIVITIES.—Funds reserved under subparagraph (A) shall be used to carry out the following activities: ‘‘(i) For monitoring, enforcement, and complaint investigation. ‘‘(ii) To establish and implement the mediation process required by section 615(e), including providing for the cost of mediators and support personnel. ‘‘(C) AUTHORIZED ACTIVITIES.—Funds reserved under subparagraph (A) may be used to carry out the following activities: ‘‘(i) For support and direct services, including tech nical assistance, personnel preparation, and profes sional development and training. ‘‘(ii) To support paperwork reduction activities, including expanding the use of technology in the IEP process. ‘‘(iii) To assist local educational agencies in pro viding positive behavioral interventions and supports and appropriate mental health services for children with disabilities.
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