PUBLIC LAW 102-119—OCT. 7, 1991 105 STAT. 591 SEC. 5. STATE PLAN. Section 613(a) (20 U.S.C. 1413(a)) is amended— (1) in paragraph (3), in the matter preceding subparagraph (A), by striking "this Act," and inserting the following: "this Act and with the comprehensive system of personnel development described in section 676(b)(8),"; and (2)(A) in paragraph (13XB), by striking "and" 9t the end; (B) in paragraph (14), by striking the period at the end and inserting a semicolon and "and"; and (C) by adding at the end the following new paragraph: "(15) set forth policies and procedures relating to the smooth transition for those individuals participating in the early intervention program assisted under part H who will participate in preschool programs assisted under this part, including a method of ensuring that when a child turns age three an individualized education program, or, if consistent with sections 614(a)(5) and 677(d), an individualized family service plan, has been developed and is being implemented by such child's third birthday.". SEC. 6. APPLICATION. Section 614(a)(5) (20 U.S.C. 1414(a)(5)) is amended by inserting after "disability" the following: "(or, if consistent with State policy and at the discretion of the local educational agency or intermediate educational unit, and with the concurrence of the parents or guardian, an individualized family service plan described in section 677(d) for each child with a disability aged 3 to 5, inclusive)". SEC. 7. PRESCHOOL GRANTS. Section 619 (20 U.S.C. 1419) is amended— (1) in the heading for the section, by striking "PRE-SCHOOL" and inserting "PRESCHOOL"; (2) in subsection (b)— (A) in paragraph (I)(B), by inserting before the period the following: ", and for any two-year-old children provided services by the State under subsection (c)(2)(B)(iii) or by a local educational agency or intermediate educational unit under subsection (fK2)"; and (B) in paragraph (3), by striking "$1,000" and inserting "$1,500"; (3) in subsection (c)(2), by amending subparagraph (B) to read as follows: "(B) use not more than 20 percent of such grant— "(i) for planning and development of a comprehensive delivery system, "(ii) for direct and support services for children with disabilities, aged 3 to 5, inclusive, and "(iii) at the State's discretion, to provide a free appropriate public education, in accordance with this Act, to 2- year-old children with disabilities who will reach age 3 during the school year, whether or not such children are receiving, or have received, services under part H, and"; (4) in subsection (f), by amending the subsection to read as follows: "(f) Each local educational agency or intermediate educational unit receiving funds under this section—
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