Illinois General Assembly - Full Text of HB4365
Illinois General Assembly

Previous General Assemblies

Full Text of HB4365  102nd General Assembly




HB4365 EnrolledLRB102 23289 CMG 32455 b

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 Section
514-7.02 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.
10    (a) The General Assembly recognizes that non-public
11schools or special education facilities provide an important
12service in the educational system in Illinois.
13    (b) If a student's individualized education program (IEP)
14team determines that because of his or her disability the
15special education program of a district is unable to meet the
16needs of the a child and the child attends a non-public school
17or special education facility, a public out-of-state school or
18a special education facility owned and operated by a county
19government unit that provides special educational services
20required by the child and is in compliance with the
21appropriate rules and regulations of the State Superintendent
22of Education, the school district in which the child is a
23resident shall pay the actual cost of tuition for special



HB4365 Enrolled- 2 -LRB102 23289 CMG 32455 b

1education and related services provided during the regular
2school term and during the summer school term if the child's
3educational needs so require, excluding room, board and
4transportation costs charged the child by that non-public
5school or special education facility, public out-of-state
6school or county special education facility, or $4,500 per
7year, whichever is less, and shall provide him any necessary
8transportation. "Nonpublic special education facility" shall
9include a residential facility, within or without the State of
10Illinois, which provides special education and related
11services to meet the needs of the child by utilizing private
12schools or public schools, whether located on the site or off
13the site of the residential facility. Resident district
14financial responsibility and reimbursement applies for both
15nonpublic special education facilities that are approved by
16the State Board of Education pursuant to 23 Ill. Adm. Code 401
17or other applicable laws or rules and for emergency placements
18in nonpublic special education facilities that are not
19approved by the State Board of Education pursuant to 23 Ill.
20Adm. Code 401 or other applicable laws or rules, subject to the
21requirements of this Section.
22    (c) Prior to the placement of a child in an out-of-state
23special education residential facility, the school district
24must refer to the child or the child's parent or guardian the
25option to place the child in a special education residential
26facility located within this State, if any, that provides



HB4365 Enrolled- 3 -LRB102 23289 CMG 32455 b

1treatment and services comparable to those provided by the
2out-of-state special education residential facility. The
3school district must review annually the placement of a child
4in an out-of-state special education residential facility. As
5a part of the review, the school district must refer to the
6child or the child's parent or guardian the option to place the
7child in a comparable special education residential facility
8located within this State, if any.
9    (d) Payments shall be made by the resident school district
10to the entity providing the educational services, whether the
11entity is the nonpublic special education facility or the
12school district wherein the facility is located, no less than
13once per quarter, unless otherwise agreed to in writing by the
15    (e) A school district may place a student in a nonpublic
16special education facility providing educational services, but
17not approved by the State Board of Education pursuant to 23
18Ill. Adm. Code 401 or other applicable laws or rules, provided
19that the State Board of Education provides an emergency and
20student-specific approval for placement. The State Board of
21Education shall promptly, within 10 days after the request,
22approve a request for emergency and student-specific approval
23for placement if the following have been demonstrated to the
24State Board of Education:
25        (1) the facility demonstrates appropriate licensure of
26    teachers for the student population;



HB4365 Enrolled- 4 -LRB102 23289 CMG 32455 b

1        (2) the facility demonstrates age-appropriate
2    curriculum;
3        (3) the facility provides enrollment and attendance
4    data;
5        (4) the facility demonstrates the ability to implement
6    the child's IEP; and
7        (5) the school district demonstrates that it made good
8    faith efforts to place the student in an approved
9    facility, but no approved facility has accepted the
10    student or has availability for immediate placement of the
11    student.
12A resident school district may also submit such proof to the
13State Board of Education as may be required for its student.
14The State Board of Education may not unreasonably withhold
15approval once satisfactory proof is provided to the State
17    (f) If an impartial due process hearing officer who is
18contracted by the State Board of Education pursuant to this
19Article orders placement of a student with a disability in a
20residential facility that is not approved by the State Board
21of Education, then, for purposes of this Section, the facility
22shall be deemed approved for placement and school district
23payments and State reimbursements shall be made accordingly.
24    (g) Emergency placement in a facility approved pursuant to
25subsection (e) or (f) may continue to be utilized so long as
26(i) the student's IEP team determines annually that such



HB4365 Enrolled- 5 -LRB102 23289 CMG 32455 b

1placement continues to be appropriate to meet the student's
2needs and (ii) at least every 3 years following the student's
3placement, the IEP team reviews appropriate placements
4approved by the State Board of Education pursuant to 23 Ill.
5Adm. Code 401 or other applicable laws or rules to determine
6whether there are any approved placements that can meet the
7student's needs, have accepted the student, and have
8availability for placement of the student.
9    (h) The State Board of Education shall promulgate rules
10and regulations for determining when placement in a private
11special education facility is appropriate. Such rules and
12regulations shall take into account the various types of
13services needed by a child and the availability of such
14services to the particular child in the public school. In
15developing these rules and regulations the State Board of
16Education shall consult with the Advisory Council on Education
17of Children with Disabilities and hold public hearings to
18secure recommendations from parents, school personnel, and
19others concerned about this matter.
20    The State Board of Education shall also promulgate rules
21and regulations for transportation to and from a residential
22school. Transportation to and from home to a residential
23school more than once each school term shall be subject to
24prior approval by the State Superintendent in accordance with
25the rules and regulations of the State Board.
26    (i) A school district making tuition payments pursuant to



HB4365 Enrolled- 6 -LRB102 23289 CMG 32455 b

1this Section is eligible for reimbursement from the State for
2the amount of such payments actually made in excess of the
3district per capita tuition charge for students not receiving
4special education services. Such reimbursement shall be
5approved in accordance with Section 14-12.01 and each district
6shall file its claims, computed in accordance with rules
7prescribed by the State Board of Education, on forms
8prescribed by the State Superintendent of Education. Data used
9as a basis of reimbursement claims shall be for the preceding
10regular school term and summer school term. Each school
11district shall transmit its claims to the State Board of
12Education on or before August 15. The State Board of
13Education, before approving any such claims, shall determine
14their accuracy and whether they are based upon services and
15facilities provided under approved programs. Upon approval the
16State Board shall cause vouchers to be prepared showing the
17amount due for payment of reimbursement claims to school
18districts, for transmittal to the State Comptroller on the
1930th day of September, December, and March, respectively, and
20the final voucher, no later than June 20. If the money
21appropriated by the General Assembly for such purpose for any
22year is insufficient, it shall be apportioned on the basis of
23the claims approved.
24    (j) No child shall be placed in a special education
25program pursuant to this Section if the tuition cost for
26special education and related services increases more than 10



HB4365 Enrolled- 7 -LRB102 23289 CMG 32455 b

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



HB4365 Enrolled- 8 -LRB102 23289 CMG 32455 b

1General Assembly to front line personnel defined as direct
2support persons, aides, front-line supervisors, qualified
3intellectual disabilities professionals, nurses, and
4non-administrative support staff working in service settings
5in community-based settings within the State and adjust
6customary rates or rates of a special education program to be
7equitable to the wage increase awarded to similar staff
8positions in a community residential setting. Any wage
9increase awarded by the General Assembly to front line
10personnel defined as direct support persons, aides, front-line
11supervisors, qualified intellectual disabilities
12professionals, nurses, and non-administrative support staff
13working in community-based settings within the State,
14including the $0.75 per hour increase contained in Public Act
15100-23 and the $0.50 per hour increase included in Public Act
16100-23, shall also be a basis for any facility covered by this
17Section to appeal its rate before the Review Board under the
18process defined in Title 89, Part 900, Section 340 of the
19Illinois Administrative Code. Illinois Administrative Code
20Title 89, Part 900, Section 342 shall be updated to recognize
21wage increases awarded to community-based settings to be a
22basis for appeal. However, any wage increase that is captured
23upon appeal from a previous year shall not be counted by the
24Review Board as revenue for the purpose of calculating a
25facility's future rate.
26    (l) Any definition used by the Review Board in



HB4365 Enrolled- 9 -LRB102 23289 CMG 32455 b

1administrative rule or policy to define "related
2organizations" shall include any and all exceptions contained
3in federal law or regulation as it pertains to the federal
4definition of "related organizations".
5    (m) The Review Board shall establish uniform definitions
6and criteria for accounting separately by special education,
7room and board and other related services costs. The Board
8shall also establish guidelines for the coordination of
9services and financial assistance provided by all State
10agencies to assure that no otherwise qualified child with a
11disability receiving services under Article 14 shall be
12excluded from participation in, be denied the benefits of or
13be subjected to discrimination under any program or activity
14provided by any State agency.
15    (n) The Review Board shall review the costs for special
16education and related services provided by non-public schools
17or special education facilities and shall approve or
18disapprove such facilities in accordance with the rules and
19regulations established by it with respect to allowable costs.
20    (o) The State Board of Education shall provide
21administrative and staff support for the Review Board as
22deemed reasonable by the State Superintendent of Education.
23This support shall not include travel expenses or other
24compensation for any Review Board member other than the State
25Superintendent of Education.
26    (p) The Review Board shall seek the advice of the Advisory



HB4365 Enrolled- 10 -LRB102 23289 CMG 32455 b

1Council on Education of Children with Disabilities on the
2rules and regulations to be promulgated by it relative to
3providing special education services.
4    (q) If a child has been placed in a program in which the
5actual per pupil costs of tuition for special education and
6related services based on program enrollment, excluding room,
7board and transportation costs, exceed $4,500 and such costs
8have been approved by the Review Board, the district shall pay
9such total costs which exceed $4,500. A district making such
10tuition payments in excess of $4,500 pursuant to this Section
11shall be responsible for an amount in excess of $4,500 equal to
12the district per capita tuition charge and shall be eligible
13for reimbursement from the State for the amount of such
14payments actually made in excess of the districts per capita
15tuition charge for students not receiving special education
17    (r) If a child has been placed in an approved individual
18program and the tuition costs including room and board costs
19have been approved by the Review Board, then such room and
20board costs shall be paid by the appropriate State agency
21subject to the provisions of Section 14-8.01 of this Act. Room
22and board costs not provided by a State agency other than the
23State Board of Education shall be provided by the State Board
24of Education on a current basis. In no event, however, shall
25the State's liability for funding of these tuition costs begin
26until after the legal obligations of third party payors have



HB4365 Enrolled- 11 -LRB102 23289 CMG 32455 b

1been subtracted from such costs. If the money appropriated by
2the General Assembly for such purpose for any year is
3insufficient, it shall be apportioned on the basis of the
4claims approved. Each district shall submit estimated claims
5to the State Superintendent of Education. Upon approval of
6such claims, the State Superintendent of Education shall
7direct the State Comptroller to make payments on a monthly
8basis. The frequency for submitting estimated claims and the
9method of determining payment shall be prescribed in rules and
10regulations adopted by the State Board of Education. Such
11current state reimbursement shall be reduced by an amount
12equal to the proceeds which the child or child's parents are
13eligible to receive under any public or private insurance or
14assistance program. Nothing in this Section shall be construed
15as relieving an insurer or similar third party from an
16otherwise valid obligation to provide or to pay for services
17provided to a child with a disability.
18    (s) If it otherwise qualifies, a school district is
19eligible for the transportation reimbursement under Section
2014-13.01 and for the reimbursement of tuition payments under
21this Section whether the non-public school or special
22education facility, public out-of-state school or county
23special education facility, attended by a child who resides in
24that district and requires special educational services, is
25within or outside of the State of Illinois. However, a
26district is not eligible to claim transportation reimbursement



HB4365 Enrolled- 12 -LRB102 23289 CMG 32455 b

1under this Section unless the district certifies to the State
2Superintendent of Education that the district is unable to
3provide special educational services required by the child for
4the current school year.
5    (t) Nothing in this Section authorizes the reimbursement
6of a school district for the amount paid for tuition of a child
7attending a non-public school or special education facility,
8public out-of-state school or county special education
9facility unless the school district certifies to the State
10Superintendent of Education that the special education program
11of that district is unable to meet the needs of that child
12because of his disability and the State Superintendent of
13Education finds that the school district is in substantial
14compliance with Section 14-4.01. However, if a child is
15unilaterally placed by a State agency or any court in a
16non-public school or special education facility, public
17out-of-state school, or county special education facility, a
18school district shall not be required to certify to the State
19Superintendent of Education, for the purpose of tuition
20reimbursement, that the special education program of that
21district is unable to meet the needs of a child because of his
22or her disability.
23    (u) Any educational or related services provided, pursuant
24to this Section in a non-public school or special education
25facility or a special education facility owned and operated by
26a county government unit shall be at no cost to the parent or



HB4365 Enrolled- 13 -LRB102 23289 CMG 32455 b

1guardian of the child. However, current law and practices
2relative to contributions by parents or guardians for costs
3other than educational or related services are not affected by
4this amendatory Act of 1978.
5    (v) Reimbursement for children attending public school
6residential facilities shall be made in accordance with the
7provisions of this Section.
8    (w) Notwithstanding any other provision of law, any school
9district receiving a payment under this Section or under
10Section 14-7.02b, 14-13.01, or 29-5 of this Code may classify
11all or a portion of the funds that it receives in a particular
12fiscal year or from general State aid pursuant to Section
1318-8.05 of this Code as funds received in connection with any
14funding program for which it is entitled to receive funds from
15the State in that fiscal year (including, without limitation,
16any funding program referenced in this Section), regardless of
17the source or timing of the receipt. The district may not
18classify more funds as funds received in connection with the
19funding program than the district is entitled to receive in
20that fiscal year for that program. Any classification by a
21district must be made by a resolution of its board of
22education. The resolution must identify the amount of any
23payments or general State aid to be classified under this
24paragraph and must specify the funding program to which the
25funds are to be treated as received in connection therewith.
26This resolution is controlling as to the classification of



HB4365 Enrolled- 14 -LRB102 23289 CMG 32455 b

1funds referenced therein. A certified copy of the resolution
2must be sent to the State Superintendent of Education. The
3resolution shall still take effect even though a copy of the
4resolution has not been sent to the State Superintendent of
5Education in a timely manner. No classification under this
6paragraph by a district shall affect the total amount or
7timing of money the district is entitled to receive under this
8Code. No classification under this paragraph by a district
9shall in any way relieve the district from or affect any
10requirements that otherwise would apply with respect to that
11funding program, including any accounting of funds by source,
12reporting expenditures by original source and purpose,
13reporting requirements, or requirements of providing services.
14(Source: P.A. 101-10, eff. 6-5-19; 102-254, eff. 8-6-21.)
15    Section 99. Effective date. This Act takes effect upon
16becoming law.