(a) The department is the lead agency designated by the governor under Part C, Individuals with Disabilities Education Act (IDEA) (20 U.S.C. § 1431 et seq.), and its subsequent amendments, for the administration, supervision, and monitoring of a statewide comprehensive system of early intervention services that will ensure that all infants and toddlers in this state who are below the age of three and have developmental needs or are at risk of developmental delay receive services that are provided in partnership with their families and in the context of their local community.
(b) The executive commissioner by rule shall:
(1) provide for compliance with the terms and provisions of applicable federal and state laws in the administration of programs and the delivery of services under this chapter;
(2) establish a program to monitor fiscal and program implementation under this chapter; and
(3) establish appropriate sanctions for providers who fail to comply with statutory and regulatory fiscal and program requirements under this chapter.

(c) The department may enter into, administer, and monitor contracts with providers for programs and projects authorized under this chapter.
(d) The department shall periodically monitor program activities and fiscal performance of the entities funded under this chapter to:
(1) determine compliance with federal and state requirements;
(2) assess the performance of the entities in identifying children under three years of age with developmental delay in populations at risk of developmental delay; and
(3) issue reports regarding program monitoring.
(e) The department may apply for and accept gifts, grants, and donations from public and private sources for use in programs authorized under this chapter. The department shall deposit money received under this section into the state treasury.
(f) The department shall:
(1) cooperate with the commission and other local, state, and federal agencies in the strategic planning, funding, delivery, and monitoring of services authorized under this chapter; and
(2) jointly with the Department of Family and Protective Services develop and implement policies applicable to providers of services authorized under this chapter in situations involving service recipients who are vulnerable to abuse or neglect.
(g) The department shall make periodic reports relating to the department’s functions under this chapter as required by law to other agencies, the legislature, appropriate committees, the governor, and the United States secretary of education.
(h) The department shall ensure that all programs and department functions under this chapter are conducted in a nondiscriminatory manner.
(i) The department shall include parents when deciding the appropriate treatment for the needs of their child or children under this chapter. After establishing an initial and ongoing treatment plan for a child, the department shall ensure that the child’s parents continue to be included in all decisions relating to the services provided to the child, including the determination of the most appropriate setting for the child to receive services. The department shall ensure that a child’s parents receive written notification of the progress toward meeting the child’s treatment plan. The notification must include details to assist parents in meeting the child’s treatment goals.
(j) The department shall provide services under this chapter in the child’s natural environments but must make alternatives available when early intervention cannot be achieved satisfactorily in a natural environment.
(k) The department shall cooperate with the commission to select an appropriate automated system or systems currently used by a state agency to plan, manage, and maintain records of client services under this chapter. If cost-effective, the department may use the automated system or systems to carry out other appropriate department administrative functions under this chapter.
(l) The executive commissioner by rule may establish a system of payments by families of children receiving services under this chapter, including a schedule of sliding fees, in a manner consistent with 34 C.F.R. Sections 303.13(a)(3), 303.520, and 303.521.