Illinois General Assembly - Full Text of HB4365
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Full Text of HB4365  102nd General Assembly


Rep. Daniel Didech

Filed: 2/22/2022





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2    AMENDMENT NO. ______. Amend House Bill 4365 by replacing
3everything after the enacting clause with the following:
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



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



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1Adm. Code 401 or other applicable laws or rules, subject to the
2requirements of this Section.
3    (c) Prior to the placement of a child in an out-of-state
4special education residential facility, the school district
5must refer to the child or the child's parent or guardian the
6option to place the child in a special education residential
7facility located within this State, if any, that provides
8treatment and services comparable to those provided by the
9out-of-state special education residential facility. The
10school district must review annually the placement of a child
11in an out-of-state special education residential facility. As
12a part of the review, the school district must refer to the
13child or the child's parent or guardian the option to place the
14child in a comparable special education residential facility
15located within this State, if any.
16    (d) Payments shall be made by the resident school district
17to the entity providing the educational services, whether the
18entity is the nonpublic special education facility or the
19school district wherein the facility is located, no less than
20once per quarter, unless otherwise agreed to in writing by the
22    (e) A school district may place a student in a nonpublic
23special education facility providing educational services, but
24not approved by the State Board of Education pursuant to 23
25Ill. Adm. Code 401 or other applicable laws or rules, provided
26that the State Board of Education provides an emergency and



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1student-specific approval for placement. The State Board of
2Education shall promptly, within 10 days after the request,
3approve a request for emergency and student-specific approval
4for placement if the following have been demonstrated to the
5State Board of Education:
6        (1) the facility demonstrates appropriate licensure of
7    teachers for the student population;
8        (2) the facility demonstrates age-appropriate
9    curriculum;
10        (3) the facility provides enrollment and attendance
11    data;
12        (4) the facility demonstrates the ability to implement
13    the child's IEP; and
14        (5) the school district demonstrates that it made good
15    faith efforts to place the student in an approved
16    facility, but no approved facility has accepted the
17    student or has availability for immediate placement of the
18    student.
19A resident school district may also submit such proof to the
20State Board of Education as may be required for its student.
21The State Board of Education may not unreasonably withhold
22approval once satisfactory proof is provided to the State
24    (f) If an impartial due process hearing officer who is
25contracted by the State Board of Education pursuant to this
26Article orders placement of a student with a disability in a



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1residential facility that is not approved by the State Board
2of Education, then, for purposes of this Section, the facility
3shall be deemed approved for placement and school district
4payments and State reimbursements shall be made accordingly.
5    (g) Emergency placement in a facility approved pursuant to
6subsection (e) or (f) may continue to be utilized so long as
7(i) the student's IEP team determines annually that such
8placement continues to be appropriate to meet the student's
9needs and (ii) at least every 3 years following the student's
10placement, the IEP team reviews appropriate placements
11approved by the State Board of Education pursuant to 23 Ill.
12Adm. Code 401 or other applicable laws or rules to determine
13whether there are any approved placements that can meet the
14student's needs, have accepted the student, and have
15availability for placement of the student.
16    (h) The State Board of Education shall promulgate rules
17and regulations for determining when placement in a private
18special education facility is appropriate. Such rules and
19regulations shall take into account the various types of
20services needed by a child and the availability of such
21services to the particular child in the public school. In
22developing these rules and regulations the State Board of
23Education shall consult with the Advisory Council on Education
24of Children with Disabilities and hold public hearings to
25secure recommendations from parents, school personnel, and
26others concerned about this matter.



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1    The State Board of Education shall also promulgate rules
2and regulations for transportation to and from a residential
3school. Transportation to and from home to a residential
4school more than once each school term shall be subject to
5prior approval by the State Superintendent in accordance with
6the rules and regulations of the State Board.
7    (i) A school district making tuition payments pursuant to
8this Section is eligible for reimbursement from the State for
9the amount of such payments actually made in excess of the
10district per capita tuition charge for students not receiving
11special education services. Such reimbursement shall be
12approved in accordance with Section 14-12.01 and each district
13shall file its claims, computed in accordance with rules
14prescribed by the State Board of Education, on forms
15prescribed by the State Superintendent of Education. Data used
16as a basis of reimbursement claims shall be for the preceding
17regular school term and summer school term. Each school
18district shall transmit its claims to the State Board of
19Education on or before August 15. The State Board of
20Education, before approving any such claims, shall determine
21their accuracy and whether they are based upon services and
22facilities provided under approved programs. Upon approval the
23State Board shall cause vouchers to be prepared showing the
24amount due for payment of reimbursement claims to school
25districts, for transmittal to the State Comptroller on the
2630th day of September, December, and March, respectively, and



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1the final voucher, no later than June 20. If the money
2appropriated by the General Assembly for such purpose for any
3year is insufficient, it shall be apportioned on the basis of
4the claims approved.
5    (j) No child shall be placed in a special education
6program pursuant to this Section if the tuition cost for
7special education and related services increases more than 10
8percent over the tuition cost for the previous school year or
9exceeds $4,500 per year unless such costs have been approved
10by the Illinois Purchased Care Review Board. The Illinois
11Purchased Care Review Board shall consist of the following
12persons, or their designees: the Directors of Children and
13Family Services, Public Health, Public Aid, and the Governor's
14Office of Management and Budget; the Secretary of Human
15Services; the State Superintendent of Education; and such
16other persons as the Governor may designate. The Review Board
17shall also consist of one non-voting member who is an
18administrator of a private, nonpublic, special education
19school. The Review Board shall establish rules and regulations
20for its determination of allowable costs and payments made by
21local school districts for special education, room and board,
22and other related services provided by non-public schools or
23special education facilities and shall establish uniform
24standards and criteria which it shall follow. The Review Board
25shall approve the usual and customary rate or rates of a
26special education program that (i) is offered by an



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1out-of-state, non-public provider of integrated autism
2specific educational and autism specific residential services,
3(ii) offers 2 or more levels of residential care, including at
4least one locked facility, and (iii) serves 12 or fewer
5Illinois students.
6    (k) In determining rates based on allowable costs, the
7Review Board shall consider any wage increases awarded by the
8General Assembly to front line personnel defined as direct
9support persons, aides, front-line supervisors, qualified
10intellectual disabilities professionals, nurses, and
11non-administrative support staff working in service settings
12in community-based settings within the State and adjust
13customary rates or rates of a special education program to be
14equitable to the wage increase awarded to similar staff
15positions in a community residential setting. Any wage
16increase awarded by the General Assembly to front line
17personnel defined as direct support persons, aides, front-line
18supervisors, qualified intellectual disabilities
19professionals, nurses, and non-administrative support staff
20working in community-based settings within the State,
21including the $0.75 per hour increase contained in Public Act
22100-23 and the $0.50 per hour increase included in Public Act
23100-23, shall also be a basis for any facility covered by this
24Section to appeal its rate before the Review Board under the
25process defined in Title 89, Part 900, Section 340 of the
26Illinois Administrative Code. Illinois Administrative Code



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1Title 89, Part 900, Section 342 shall be updated to recognize
2wage increases awarded to community-based settings to be a
3basis for appeal. However, any wage increase that is captured
4upon appeal from a previous year shall not be counted by the
5Review Board as revenue for the purpose of calculating a
6facility's future rate.
7    (l) Any definition used by the Review Board in
8administrative rule or policy to define "related
9organizations" shall include any and all exceptions contained
10in federal law or regulation as it pertains to the federal
11definition of "related organizations".
12    (m) The Review Board shall establish uniform definitions
13and criteria for accounting separately by special education,
14room and board and other related services costs. The Board
15shall also establish guidelines for the coordination of
16services and financial assistance provided by all State
17agencies to assure that no otherwise qualified child with a
18disability receiving services under Article 14 shall be
19excluded from participation in, be denied the benefits of or
20be subjected to discrimination under any program or activity
21provided by any State agency.
22    (n) The Review Board shall review the costs for special
23education and related services provided by non-public schools
24or special education facilities and shall approve or
25disapprove such facilities in accordance with the rules and
26regulations established by it with respect to allowable costs.



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1    (o) The State Board of Education shall provide
2administrative and staff support for the Review Board as
3deemed reasonable by the State Superintendent of Education.
4This support shall not include travel expenses or other
5compensation for any Review Board member other than the State
6Superintendent of Education.
7    (p) The Review Board shall seek the advice of the Advisory
8Council on Education of Children with Disabilities on the
9rules and regulations to be promulgated by it relative to
10providing special education services.
11    (q) If a child has been placed in a program in which the
12actual per pupil costs of tuition for special education and
13related services based on program enrollment, excluding room,
14board and transportation costs, exceed $4,500 and such costs
15have been approved by the Review Board, the district shall pay
16such total costs which exceed $4,500. A district making such
17tuition payments in excess of $4,500 pursuant to this Section
18shall be responsible for an amount in excess of $4,500 equal to
19the district per capita tuition charge and shall be eligible
20for reimbursement from the State for the amount of such
21payments actually made in excess of the districts per capita
22tuition charge for students not receiving special education
24    (r) If a child has been placed in an approved individual
25program and the tuition costs including room and board costs
26have been approved by the Review Board, then such room and



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1board costs shall be paid by the appropriate State agency
2subject to the provisions of Section 14-8.01 of this Act. Room
3and board costs not provided by a State agency other than the
4State Board of Education shall be provided by the State Board
5of Education on a current basis. In no event, however, shall
6the State's liability for funding of these tuition costs begin
7until after the legal obligations of third party payors have
8been subtracted from such costs. If the money appropriated by
9the General Assembly for such purpose for any year is
10insufficient, it shall be apportioned on the basis of the
11claims approved. Each district shall submit estimated claims
12to the State Superintendent of Education. Upon approval of
13such claims, the State Superintendent of Education shall
14direct the State Comptroller to make payments on a monthly
15basis. The frequency for submitting estimated claims and the
16method of determining payment shall be prescribed in rules and
17regulations adopted by the State Board of Education. Such
18current state reimbursement shall be reduced by an amount
19equal to the proceeds which the child or child's parents are
20eligible to receive under any public or private insurance or
21assistance program. Nothing in this Section shall be construed
22as relieving an insurer or similar third party from an
23otherwise valid obligation to provide or to pay for services
24provided to a child with a disability.
25    (s) If it otherwise qualifies, a school district is
26eligible for the transportation reimbursement under Section



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114-13.01 and for the reimbursement of tuition payments under
2this Section whether the non-public school or special
3education facility, public out-of-state school or county
4special education facility, attended by a child who resides in
5that district and requires special educational services, is
6within or outside of the State of Illinois. However, a
7district is not eligible to claim transportation reimbursement
8under this Section unless the district certifies to the State
9Superintendent of Education that the district is unable to
10provide special educational services required by the child for
11the current school year.
12    (t) Nothing in this Section authorizes the reimbursement
13of a school district for the amount paid for tuition of a child
14attending a non-public school or special education facility,
15public out-of-state school or county special education
16facility unless the school district certifies to the State
17Superintendent of Education that the special education program
18of that district is unable to meet the needs of that child
19because of his disability and the State Superintendent of
20Education finds that the school district is in substantial
21compliance with Section 14-4.01. However, if a child is
22unilaterally placed by a State agency or any court in a
23non-public school or special education facility, public
24out-of-state school, or county special education facility, a
25school district shall not be required to certify to the State
26Superintendent of Education, for the purpose of tuition



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1reimbursement, that the special education program of that
2district is unable to meet the needs of a child because of his
3or her disability.
4    (u) Any educational or related services provided, pursuant
5to this Section in a non-public school or special education
6facility or a special education facility owned and operated by
7a county government unit shall be at no cost to the parent or
8guardian of the child. However, current law and practices
9relative to contributions by parents or guardians for costs
10other than educational or related services are not affected by
11this amendatory Act of 1978.
12    (v) Reimbursement for children attending public school
13residential facilities shall be made in accordance with the
14provisions of this Section.
15    (w) Notwithstanding any other provision of law, any school
16district receiving a payment under this Section or under
17Section 14-7.02b, 14-13.01, or 29-5 of this Code may classify
18all or a portion of the funds that it receives in a particular
19fiscal year or from general State aid pursuant to Section
2018-8.05 of this Code as funds received in connection with any
21funding program for which it is entitled to receive funds from
22the State in that fiscal year (including, without limitation,
23any funding program referenced in this Section), regardless of
24the source or timing of the receipt. The district may not
25classify more funds as funds received in connection with the
26funding program than the district is entitled to receive in



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1that fiscal year for that program. Any classification by a
2district must be made by a resolution of its board of
3education. The resolution must identify the amount of any
4payments or general State aid to be classified under this
5paragraph and must specify the funding program to which the
6funds are to be treated as received in connection therewith.
7This resolution is controlling as to the classification of
8funds referenced therein. A certified copy of the resolution
9must be sent to the State Superintendent of Education. The
10resolution shall still take effect even though a copy of the
11resolution has not been sent to the State Superintendent of
12Education in a timely manner. No classification under this
13paragraph by a district shall affect the total amount or
14timing of money the district is entitled to receive under this
15Code. No classification under this paragraph by a district
16shall in any way relieve the district from or affect any
17requirements that otherwise would apply with respect to that
18funding program, including any accounting of funds by source,
19reporting expenditures by original source and purpose,
20reporting requirements, or requirements of providing services.
21(Source: P.A. 101-10, eff. 6-5-19; 102-254, eff. 8-6-21.)
22    Section 99. Effective date. This Act takes effect upon
23becoming law.".