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This OSEP memo clarifies actions that state and local educational agencies (SEA and LEA) must take to identify and act upon disproportionality of racial and ethnic groups in special education. The regulations state that the SEA must require any LEA identified as having significant disproportionality to reserve 15 percent of the flow-through funds under IDEA Part B to provide comprehensive CEIS to serve children not identified with disabilities. This document describes the differences between the requirements for significant disproportionality and CEIS and the requirements related to disproportionate representation as a result of inappropriate identification. See 20 U.S.C. §1416(a)(3)(C), 34 CFR §300.600(d)(3), and 34 CFR §300.646(b)(2).