This report of the Senate Committee on Labor and Human Resources unanimously supports the passage of a bill (Senate Bill 1578) which amends the Individuals with Disabilities Education Act (IDEA) and authorizes appropriations for fiscal years 1997 through 2002. The bill amends parts A through H of IDEA. Amendments are intended to reduce unnecessary administrative burdens and increase flexibility for state and local educational agencies, while continuing the national commitment to ensure that all children with disabilities have available a free appropriate public education. Title I of the proposed bill revises general provisions and grant application procedures. Title II reorganizes and simplifies eligibility, procedural guidelines and safeguards, and administrative requirements. Title III authorizes a competitive state systems-change grant program. Title IV provides for improving educational services through research, demonstrations, outreach, and personnel preparation activities to be coordinated with local and state efforts. It consolidates programs authorized in parts D and E in current law. Title V also consolidates programs and authorizes the continued funding of technical assistance, support, and dissemination projects (including Parent Training and Information Centers) and technology and media projects. Title VI contains minor amendments to Part H of the present law, which provides early intervention services for infants and toddlers with disabilities. Separate sections of the report present information on the historical background of and need for the legislation, cost estimates, the regulatory impact statement, a section-by-section analysis, views of individual senators, and the text of both the original law and the proposed amendments. (DB)