101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1757

 

Introduced 2/15/2019, by Sen. Jennifer Bertino-Tarrant

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/14-7.02  from Ch. 122, par. 14-7.02
105 ILCS 5/14-7.02b
105 ILCS 5/14-8.01  from Ch. 122, par. 14-8.01

    Amends the Children with Disabilities Article of the School Code. Provides after June 30, 2024, no payments may be made by a school district for amounts in excess of $4,500 for children who have been placed in a program in which the actual per pupil costs of tuition for special education and related services based on program enrollment exceed $4,500. With regard to funding for children requiring special education services, provides that for individual students with disabilities whose program costs exceed 2 (rather than 4) times the district's per capita tuition rate, the costs in excess of 2 (rather than 4) times the district's per capita rate must be paid by the State Board of Education from funds made available under a provision in the Code regarding special education facilities (rather than from unexpended IDEA discretionary funds). With regard to the supervision of special education buildings and facilities, provides that beginning with Fiscal Year 2020 through Fiscal Year 2025, the State must fund all necessary expenses related to educating children with excess costs who attend certain public schools and for Fiscal Year 2026 and each fiscal year thereafter, all costs in excess of 2 times a district's per capita tuition charge for educating children who attend certain schools and programs must be reimbursed by the State. Effective July 1, 2019.


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FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Sections
514-7.02, 14-7.02b, and 14-8.01 as follows:
 
6    (105 ILCS 5/14-7.02)  (from Ch. 122, par. 14-7.02)
7    Sec. 14-7.02. Children attending private schools, public
8out-of-state schools, public school residential facilities or
9private special education facilities. The General Assembly
10recognizes that non-public schools or special education
11facilities provide an important service in the educational
12system in Illinois.
13    If because of his or her disability the special education
14program of a district is unable to meet the needs of a child
15and the child attends a non-public school or special education
16facility, a public out-of-state school or a special education
17facility owned and operated by a county government unit that
18provides special educational services required by the child and
19is in compliance with the appropriate rules and regulations of
20the State Superintendent of Education, the school district in
21which the child is a resident shall pay the actual cost of
22tuition for special education and related services provided
23during the regular school term and during the summer school

 

 

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1term if the child's educational needs so require, excluding
2room, board and transportation costs charged the child by that
3non-public school or special education facility, public
4out-of-state school or county special education facility, or
5$4,500 per year, whichever is less, and shall provide him any
6necessary transportation. "Nonpublic special education
7facility" shall include a residential facility, within or
8without the State of Illinois, which provides special education
9and related services to meet the needs of the child by
10utilizing private schools or public schools, whether located on
11the site or off the site of the residential facility.
12    The State Board of Education shall promulgate rules and
13regulations for determining when placement in a private special
14education facility is appropriate. Such rules and regulations
15shall take into account the various types of services needed by
16a child and the availability of such services to the particular
17child in the public school. In developing these rules and
18regulations the State Board of Education shall consult with the
19Advisory Council on Education of Children with Disabilities and
20hold public hearings to secure recommendations from parents,
21school personnel, and others concerned about this matter.
22    The State Board of Education shall also promulgate rules
23and regulations for transportation to and from a residential
24school. Transportation to and from home to a residential school
25more than once each school term shall be subject to prior
26approval by the State Superintendent in accordance with the

 

 

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1rules and regulations of the State Board.
2    A school district making tuition payments pursuant to this
3Section is eligible for reimbursement from the State for the
4amount of such payments actually made in excess of the district
5per capita tuition charge for students not receiving special
6education services. Such reimbursement shall be approved in
7accordance with Section 14-12.01 and each district shall file
8its claims, computed in accordance with rules prescribed by the
9State Board of Education, on forms prescribed by the State
10Superintendent of Education. Data used as a basis of
11reimbursement claims shall be for the preceding regular school
12term and summer school term. Each school district shall
13transmit its claims to the State Board of Education on or
14before August 15. The State Board of Education, before
15approving any such claims, shall determine their accuracy and
16whether they are based upon services and facilities provided
17under approved programs. Upon approval the State Board shall
18cause vouchers to be prepared showing the amount due for
19payment of reimbursement claims to school districts, for
20transmittal to the State Comptroller on the 30th day of
21September, December, and March, respectively, and the final
22voucher, no later than June 20. If the money appropriated by
23the General Assembly for such purpose for any year is
24insufficient, it shall be apportioned on the basis of the
25claims approved.
26    No child shall be placed in a special education program

 

 

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1pursuant to this Section if the tuition cost for special
2education and related services increases more than 10 percent
3over the tuition cost for the previous school year or exceeds
4$4,500 per year unless such costs have been approved by the
5Illinois Purchased Care Review Board. The Illinois Purchased
6Care Review Board shall consist of the following persons, or
7their designees: the Directors of Children and Family Services,
8Public Health, Public Aid, and the Governor's Office of
9Management and Budget; the Secretary of Human Services; the
10State Superintendent of Education; and such other persons as
11the Governor may designate. The Review Board shall also consist
12of one non-voting member who is an administrator of a private,
13nonpublic, special education school. The Review Board shall
14establish rules and regulations for its determination of
15allowable costs and payments made by local school districts for
16special education, room and board, and other related services
17provided by non-public schools or special education facilities
18and shall establish uniform standards and criteria which it
19shall follow. The Review Board shall approve the usual and
20customary rate or rates of a special education program that (i)
21is offered by an out-of-state, non-public provider of
22integrated autism specific educational and autism specific
23residential services, (ii) offers 2 or more levels of
24residential care, including at least one locked facility, and
25(iii) serves 12 or fewer Illinois students.
26    In determining rates based on allowable costs, the Review

 

 

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1Board shall consider any wage increases awarded by the General
2Assembly to front line personnel defined as direct support
3persons, aides, front-line supervisors, qualified intellectual
4disabilities professionals, nurses, and non-administrative
5support staff working in service settings in community-based
6settings within the State and adjust customary rates or rates
7of a special education program to be equitable to the wage
8increase awarded to similar staff positions in a community
9residential setting. Any wage increase awarded by the General
10Assembly to front line personnel defined as direct support
11persons, aides, front-line supervisors, qualified intellectual
12disabilities professionals, nurses, and non-administrative
13support staff working in community-based settings within the
14State shall also be a basis for any facility covered by this
15Section to appeal its rate before the Review Board under the
16process defined in Title 89, Part 900, Section 340 of the
17Illinois Administrative Code. Illinois Administrative Code
18Title 89, Part 900, Section 342 shall be updated to recognize
19wage increases awarded to community-based settings to be a
20basis for appeal.
21    The Review Board shall establish uniform definitions and
22criteria for accounting separately by special education, room
23and board and other related services costs. The Board shall
24also establish guidelines for the coordination of services and
25financial assistance provided by all State agencies to assure
26that no otherwise qualified child with a disability receiving

 

 

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1services under Article 14 shall be excluded from participation
2in, be denied the benefits of or be subjected to discrimination
3under any program or activity provided by any State agency.
4    The Review Board shall review the costs for special
5education and related services provided by non-public schools
6or special education facilities and shall approve or disapprove
7such facilities in accordance with the rules and regulations
8established by it with respect to allowable costs.
9    The State Board of Education shall provide administrative
10and staff support for the Review Board as deemed reasonable by
11the State Superintendent of Education. This support shall not
12include travel expenses or other compensation for any Review
13Board member other than the State Superintendent of Education.
14    The Review Board shall seek the advice of the Advisory
15Council on Education of Children with Disabilities on the rules
16and regulations to be promulgated by it relative to providing
17special education services.
18    If a child has been placed in a program in which the actual
19per pupil costs of tuition for special education and related
20services based on program enrollment, excluding room, board and
21transportation costs, exceed $4,500 and such costs have been
22approved by the Review Board, the district shall pay such total
23costs which exceed $4,500. A district making such tuition
24payments in excess of $4,500 pursuant to this Section shall be
25responsible for an amount in excess of $4,500 equal to the
26district per capita tuition charge and shall be eligible for

 

 

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1reimbursement from the State for the amount of such payments
2actually made in excess of the districts per capita tuition
3charge for students not receiving special education services.
4However, no payments may be made by a school district for these
5purposes after June 30, 2024.
6    If a child has been placed in an approved individual
7program and the tuition costs including room and board costs
8have been approved by the Review Board, then such room and
9board costs shall be paid by the appropriate State agency
10subject to the provisions of Section 14-8.01 of this Act. Room
11and board costs not provided by a State agency other than the
12State Board of Education shall be provided by the State Board
13of Education on a current basis. In no event, however, shall
14the State's liability for funding of these tuition costs begin
15until after the legal obligations of third party payors have
16been subtracted from such costs. If the money appropriated by
17the General Assembly for such purpose for any year is
18insufficient, it shall be apportioned on the basis of the
19claims approved. Each district shall submit estimated claims to
20the State Superintendent of Education. Upon approval of such
21claims, the State Superintendent of Education shall direct the
22State Comptroller to make payments on a monthly basis. The
23frequency for submitting estimated claims and the method of
24determining payment shall be prescribed in rules and
25regulations adopted by the State Board of Education. Such
26current state reimbursement shall be reduced by an amount equal

 

 

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1to the proceeds which the child or child's parents are eligible
2to receive under any public or private insurance or assistance
3program. Nothing in this Section shall be construed as
4relieving an insurer or similar third party from an otherwise
5valid obligation to provide or to pay for services provided to
6a child with a disability.
7    If it otherwise qualifies, a school district is eligible
8for the transportation reimbursement under Section 14-13.01
9and for the reimbursement of tuition payments under this
10Section whether the non-public school or special education
11facility, public out-of-state school or county special
12education facility, attended by a child who resides in that
13district and requires special educational services, is within
14or outside of the State of Illinois. However, a district is not
15eligible to claim transportation reimbursement under this
16Section unless the district certifies to the State
17Superintendent of Education that the district is unable to
18provide special educational services required by the child for
19the current school year.
20    Nothing in this Section authorizes the reimbursement of a
21school district for the amount paid for tuition of a child
22attending a non-public school or special education facility,
23public out-of-state school or county special education
24facility unless the school district certifies to the State
25Superintendent of Education that the special education program
26of that district is unable to meet the needs of that child

 

 

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1because of his disability and the State Superintendent of
2Education finds that the school district is in substantial
3compliance with Section 14-4.01. However, if a child is
4unilaterally placed by a State agency or any court in a
5non-public school or special education facility, public
6out-of-state school, or county special education facility, a
7school district shall not be required to certify to the State
8Superintendent of Education, for the purpose of tuition
9reimbursement, that the special education program of that
10district is unable to meet the needs of a child because of his
11or her disability.
12    Any educational or related services provided, pursuant to
13this Section in a non-public school or special education
14facility or a special education facility owned and operated by
15a county government unit shall be at no cost to the parent or
16guardian of the child. However, current law and practices
17relative to contributions by parents or guardians for costs
18other than educational or related services are not affected by
19this amendatory Act of 1978.
20    Reimbursement for children attending public school
21residential facilities shall be made in accordance with the
22provisions of this Section.
23    Notwithstanding any other provision of law, any school
24district receiving a payment under this Section or under
25Section 14-7.02b, 14-13.01, or 29-5 of this Code may classify
26all or a portion of the funds that it receives in a particular

 

 

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1fiscal year or from general State aid pursuant to Section
218-8.05 of this Code as funds received in connection with any
3funding program for which it is entitled to receive funds from
4the State in that fiscal year (including, without limitation,
5any funding program referenced in this Section), regardless of
6the source or timing of the receipt. The district may not
7classify more funds as funds received in connection with the
8funding program than the district is entitled to receive in
9that fiscal year for that program. Any classification by a
10district must be made by a resolution of its board of
11education. The resolution must identify the amount of any
12payments or general State aid to be classified under this
13paragraph and must specify the funding program to which the
14funds are to be treated as received in connection therewith.
15This resolution is controlling as to the classification of
16funds referenced therein. A certified copy of the resolution
17must be sent to the State Superintendent of Education. The
18resolution shall still take effect even though a copy of the
19resolution has not been sent to the State Superintendent of
20Education in a timely manner. No classification under this
21paragraph by a district shall affect the total amount or timing
22of money the district is entitled to receive under this Code.
23No classification under this paragraph by a district shall in
24any way relieve the district from or affect any requirements
25that otherwise would apply with respect to that funding
26program, including any accounting of funds by source, reporting

 

 

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1expenditures by original source and purpose, reporting
2requirements, or requirements of providing services.
3(Source: P.A. 99-78, eff. 7-20-15; 99-143, eff. 7-27-15;
4100-587, eff. 6-4-18.)
 
5    (105 ILCS 5/14-7.02b)
6    Sec. 14-7.02b. Funding for children requiring special
7education services. Payments to school districts for children
8requiring special education services documented in their
9individualized education program regardless of the program
10from which these services are received, excluding children
11claimed under Sections 14-7.02 and 14-7.03 of this Code, shall
12be made in accordance with this Section. Funds received under
13this Section may be used only for the provision of special
14educational facilities and services as defined in Section
1514-1.08 of this Code.
16    The appropriation for fiscal year 2005 through fiscal year
172017 shall be based upon the IDEA child count of all students
18in the State, excluding students claimed under Sections 14-7.02
19and 14-7.03 of this Code, on December 1 of the fiscal year 2
20years preceding, multiplied by 17.5% of the general State aid
21foundation level of support established for that fiscal year
22under Section 18-8.05 of this Code.
23    Beginning with fiscal year 2005 and through fiscal year
242007, individual school districts shall not receive payments
25under this Section totaling less than they received under the

 

 

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1funding authorized under Section 14-7.02a of this Code during
2fiscal year 2004, pursuant to the provisions of Section
314-7.02a as they were in effect before the effective date of
4this amendatory Act of the 93rd General Assembly. This base
5level funding shall be computed first.
6    Beginning with fiscal year 2008 through fiscal year 2017,
7individual school districts must not receive payments under
8this Section totaling less than they received in fiscal year
92007. This funding shall be computed last and shall be a
10separate calculation from any other calculation set forth in
11this Section. This amount is exempt from the requirements of
12Section 1D-1 of this Code.
13    Through fiscal year 2017, an amount equal to 85% of the
14funds remaining in the appropriation shall be allocated to
15school districts based upon the district's average daily
16attendance reported for purposes of Section 18-8.05 of this
17Code for the preceding school year. Fifteen percent of the
18funds remaining in the appropriation shall be allocated to
19school districts based upon the district's low income eligible
20pupil count used in the calculation of general State aid under
21Section 18-8.05 of this Code for the same fiscal year. One
22hundred percent of the funds computed and allocated to
23districts under this Section shall be distributed and paid to
24school districts.
25    For individual students with disabilities whose program
26costs exceed 2 4 times the district's per capita tuition rate

 

 

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1as calculated under Section 10-20.12a of this Code, the costs
2in excess of 2 4 times the district's per capita tuition rate
3shall be paid by the State Board of Education from funds made
4available under unexpended IDEA discretionary funds originally
5designated for room and board reimbursement pursuant to Section
614-8.01 of this Code. The amount of tuition for these children
7shall be determined by the actual cost of maintaining classes
8for these children, using the per capita cost formula set forth
9in Section 14-7.01 of this Code, with the program and cost
10being pre-approved by the State Superintendent of Education.
11Reimbursement for individual students with disabilities whose
12program costs exceed 2 4 times the district's per capita
13tuition rate shall be claimed beginning with costs encumbered
14for the 2019-2020 2004-2005 school year and thereafter.
15    The State Board of Education shall prepare vouchers equal
16to one-fourth the amount allocated to districts, for
17transmittal to the State Comptroller on the 30th day of
18September, December, and March, respectively, and the final
19voucher, no later than June 20. The Comptroller shall make
20payments pursuant to this Section to school districts as soon
21as possible after receipt of vouchers. If the money
22appropriated from the General Assembly for such purposes for
23any year is insufficient, it shall be apportioned on the basis
24of the payments due to school districts.
25    Nothing in this Section shall be construed to decrease or
26increase the percentage of all special education funds that are

 

 

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1allocated annually under Article 1D of this Code or to alter
2the requirement that a school district provide special
3education services.
4    Nothing in this amendatory Act of the 93rd General Assembly
5shall eliminate any reimbursement obligation owed as of the
6effective date of this amendatory Act of the 93rd General
7Assembly to a school district with in excess of 500,000
8inhabitants.
9    Except for reimbursement for individual students with
10disabilities whose program costs exceed 2 4 times the
11district's per capita tuition rate, no funding shall be
12provided to school districts under this Section after fiscal
13year 2017.
14    In fiscal year 2018 and each fiscal year thereafter, all
15funding received by a school district from the State pursuant
16to Section 18–8.15 of this Code that is attributable to
17students requiring special education services must be used for
18special education services authorized under this Code.
19(Source: P.A. 100-465, eff. 8-31-17.)
 
20    (105 ILCS 5/14-8.01)  (from Ch. 122, par. 14-8.01)
21    Sec. 14-8.01. Supervision of special education buildings
22and facilities. All special educational facilities, building
23programs, housing, and all educational programs for the types
24of children with disabilities defined in Section 14-1.02 shall
25be under the supervision of and subject to the approval of the

 

 

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1State Board of Education.
2    All special education facilities, building programs, and
3housing shall comply with the building code authorized by
4Section 2-3.12.
5    All educational programs for children with disabilities as
6defined in Section 14-1.02 administered by any State agency
7shall be under the general supervision of the State Board of
8Education. Such supervision shall be limited to insuring that
9such educational programs meet standards jointly developed and
10agreed to by both the State Board of Education and the
11operating State agency, including standards for educational
12personnel.
13    Any State agency providing special educational programs
14for children with disabilities as defined in Section 14-1.02
15shall promulgate rules and regulations, in consultation with
16the State Board of Education and pursuant to the Illinois
17Administrative Procedure Act as now or hereafter amended, to
18insure that all such programs comply with this Section and
19Section 14-8.02.
20    No otherwise qualified child with a disability receiving
21special education and related services under Article 14 shall
22solely by reason of his or her disability be excluded from the
23participation in or be denied the benefits of or be subjected
24to discrimination under any program or activity provided by a
25State agency.
26    State agencies providing special education and related

 

 

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1services, including room and board, either directly or through
2grants or purchases of services shall continue to provide these
3services according to current law and practice. Room and board
4costs not provided by a State agency other than the State Board
5of Education shall be provided by the State Board of Education
6to the extent of available funds. An amount equal to one-half
7of the State education agency's share of IDEA PART B federal
8monies, or so much thereof as may actually be needed, shall
9annually be appropriated to pay for the additional costs of
10providing for room and board for those children placed pursuant
11to Section 14-7.02 of this Code and, after all such room and
12board costs are paid, for similar expenditures for children
13served pursuant to Section 14-7.02 or 14-7.02b of this Code.
14Any such excess room and board funds must first be directed to
15those school districts with students costing in excess of 4
16times the district's per capita tuition charge and then to
17community based programs that serve as alternatives to
18residential placements.
19    Beginning with Fiscal Year 1997 and continuing through
20Fiscal Year 2000, 100% of the former Chapter I, Section 89-313
21federal funds shall be allocated by the State Board of
22Education in the same manner as IDEA, PART B "flow through"
23funding to local school districts, joint agreements, and
24special education cooperatives for the maintenance of
25instructional and related support services to students with
26disabilities. However, beginning with Fiscal Year 1998, the

 

 

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1total IDEA Part B discretionary funds available to the State
2Board of Education shall not exceed the maximum permissible
3under federal law or 20% of the total federal funds available
4to the State, whichever is less. After all room and board
5payments and similar expenditures are made by the State Board
6of Education as required by this Section, the State Board of
7Education may use the remaining funds for administration and
8for providing discretionary activities. However, the State
9Board of Education may use no more than 25% of its available
10IDEA Part B discretionary funds for administrative services.
11    Beginning with Fiscal Year 2020 through Fiscal Year 2025,
12the State must fund all necessary expenses related to educating
13children with excess costs who attend public schools under
14Section 14-7.02b. For Fiscal Year 2026 and each fiscal year
15thereafter, all costs in excess of 2 times a district's per
16capita tuition charge for educating children who attend schools
17and programs described in Sections 14-7.02 and 14-7.02b must be
18reimbursed by the State.
19    Special education and related services included in the
20child's individualized educational program which are not
21provided by another State agency shall be included in the
22special education and related services provided by the State
23Board of Education and the local school district.
24    The State Board of Education with the advice of the
25Advisory Council shall prescribe the standards and make the
26necessary rules and regulations for special education programs

 

 

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1administered by local school boards, including but not limited
2to establishment of classes, training requirements of teachers
3and other professional personnel, eligibility and admission of
4pupils, the curriculum, class size limitation, building
5programs, housing, transportation, special equipment and
6instructional supplies, and the applications for claims for
7reimbursement. The State Board of Education shall promulgate
8rules and regulations for annual evaluations of the
9effectiveness of all special education programs and annual
10evaluation by the local school district of the individualized
11educational program for each child for whom it provides special
12education services.
13    A school district is responsible for the provision of
14educational services for all school age children residing
15within its boundaries excluding any student placed under the
16provisions of Section 14-7.02 or any student with a disability
17whose parent or guardian lives outside of the State of Illinois
18as described in Section 14-1.11.
19(Source: P.A. 99-143, eff. 7-27-15.)
 
20    Section 99. Effective date. This Act takes effect July 1,
212019.