Public Act 103-0644
 
SB3606 EnrolledLRB103 38969 RJT 69106 b

    AN ACT concerning education.
 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly:
 
    Section 5. The School Code is amended by changing Sections 
14-1.08 and 14-7.02 and by adding Section 14-1.08a as follows:
 
    (105 ILCS 5/14-1.08)  (from Ch. 122, par. 14-1.08)
    Sec. 14-1.08. Special educational facilities and services. 
"Special educational facilities and services" includes private 
special schools, separate public special education day 
schools, special classes, special housing, including 
residential facilities, special instruction, special reader 
service, braillists and typists for children with visual 
disabilities, sign language interpreters, transportation, 
maintenance, instructional material, therapy, professional 
consultant services, medical services only for diagnostic and 
evaluation purposes provided by a physician licensed to 
practice medicine in all its branches to determine a child's 
need for special education and related services, psychological 
services, school social worker services, special 
administrative services, salaries of all required special 
personnel, and other special educational services, including 
special equipment for use in the classroom, required by the 
child because of his disability if such services or special 
equipment are approved by the State Superintendent of 
Education and the child is eligible therefor under this 
Article and the regulations of the State Board of Education.
(Source: P.A. 89-397, eff. 8-20-95.)
 
    (105 ILCS 5/14-1.08a new)
    Sec. 14-1.08a. Separate public special education day 
school. "Separate public special education day school" means a 
separate special education program or facility that is 
established by a school district, public school, regional 
office of education, or special education cooperative 
exclusively to meet the needs of special education students 
who cannot be educated in the general school environment and 
that provides services comparable to a private special 
education school.
 
    (105 ILCS 5/14-7.02)  (from Ch. 122, par. 14-7.02)
    Sec. 14-7.02. Children attending private special education 
schools, separate public special education day schools, public 
out-of-state schools, public school residential facilities, or 
private special education facilities. 
    (a) The General Assembly recognizes that non-public 
schools or special education facilities provide an important 
service in the educational system in Illinois.
    (b) If a student's individualized education program (IEP) 
team determines that because of his or her disability the 
special education program of a district is unable to meet the 
needs of the child and the child attends a non-public school or 
special education facility, a public out-of-state school or a 
special education facility owned and operated by a county 
government unit that provides special educational services 
required by the child and is in compliance with the 
appropriate rules and regulations of the State Superintendent 
of Education, the school district in which the child is a 
resident shall pay the actual cost of tuition for special 
education and related services provided during the regular 
school term and during the summer school term if the child's 
educational needs so require, excluding room, board and 
transportation costs charged the child by that non-public 
school or special education facility, public out-of-state 
school or county special education facility, or $4,500 per 
year, whichever is less, and shall provide him any necessary 
transportation. "Nonpublic special education facility" shall 
include a residential facility, within or without the State of 
Illinois, which provides special education and related 
services to meet the needs of the child by utilizing private 
schools or public schools, whether located on the site or off 
the site of the residential facility. Resident district 
financial responsibility and reimbursement applies for both 
nonpublic special education facilities that are approved by 
the State Board of Education pursuant to 23 Ill. Adm. Code 401 
or other applicable laws or rules and for emergency 
residential placements in nonpublic special education 
facilities that are not approved by the State Board of 
Education pursuant to 23 Ill. Adm. Code 401 or other 
applicable laws or rules, subject to the requirements of this 
Section.
    (c) Prior to the placement of a child in an out-of-state 
special education residential facility, the school district 
must refer to the child or the child's parent or guardian the 
option to place the child in a special education residential 
facility located within this State, if any, that provides 
treatment and services comparable to those provided by the 
out-of-state special education residential facility. The 
school district must review annually the placement of a child 
in an out-of-state special education residential facility. As 
a part of the review, the school district must refer to the 
child or the child's parent or guardian the option to place the 
child in a comparable special education residential facility 
located within this State, if any.
    (c-5) Before a provider that operates a nonpublic special 
education facility terminates a student's placement in that 
facility, the provider must request an IEP meeting from the 
contracting school district. If the provider elects to 
terminate the student's placement following the IEP meeting, 
the provider must give written notice to this effect to the 
parent or guardian, the contracting public school district, 
and the State Board of Education no later than 20 business days 
before the date of termination, unless the health and safety 
of any student are endangered. The notice must include the 
detailed reasons for the termination and any actions taken to 
address the reason for the termination. 
    (d) Payments shall be made by the resident school district 
to the entity providing the educational services, whether the 
entity is the nonpublic special education facility or the 
school district wherein the facility is located, no less than 
once per quarter, unless otherwise agreed to in writing by the 
parties.
    (e) A school district may residentially place a student in 
a nonpublic special education facility providing educational 
services, but not approved by the State Board of Education 
pursuant to 23 Ill. Adm. Code 401 or other applicable laws or 
rules, provided that the State Board of Education provides an 
emergency and student-specific approval for residential 
placement. The State Board of Education shall promptly, within 
10 days after the request, approve a request for emergency and 
student-specific approval for residential placement if the 
following have been demonstrated to the State Board of 
Education:
        (1) the facility demonstrates appropriate licensure of 
    teachers for the student population;
        (2) the facility demonstrates age-appropriate 
    curriculum;
        (3) the facility provides enrollment and attendance 
    data;
        (4) the facility demonstrates the ability to implement 
    the child's IEP; and
        (5) the school district demonstrates that it made good 
    faith efforts to residentially place the student in an 
    approved facility, but no approved facility has accepted 
    the student or has availability for immediate residential 
    placement of the student.
A resident school district may also submit such proof to the 
State Board of Education as may be required for its student. 
The State Board of Education may not unreasonably withhold 
approval once satisfactory proof is provided to the State 
Board.
    (f) If an impartial due process hearing officer who is 
contracted by the State Board of Education pursuant to this 
Article orders placement of a student with a disability in a 
residential facility that is not approved by the State Board 
of Education, then, for purposes of this Section, the facility 
shall be deemed approved for placement and school district 
payments and State reimbursements shall be made accordingly.
    (g) Emergency residential placement in a facility approved 
pursuant to subsection (e) or (f) may continue to be utilized 
so long as (i) the student's IEP team determines annually that 
such placement continues to be appropriate to meet the 
student's needs and (ii) at least every 3 years following the 
student's residential placement, the IEP team reviews 
appropriate placements approved by the State Board of 
Education pursuant to 23 Ill. Adm. Code 401 or other 
applicable laws or rules to determine whether there are any 
approved placements that can meet the student's needs, have 
accepted the student, and have availability for placement of 
the student. 
    (h) The State Board of Education shall promulgate rules 
and regulations for determining when placement in a private 
special education facility is appropriate. Such rules and 
regulations shall take into account the various types of 
services needed by a child and the availability of such 
services to the particular child in the public school. In 
developing these rules and regulations the State Board of 
Education shall consult with the Advisory Council on Education 
of Children with Disabilities and hold public hearings to 
secure recommendations from parents, school personnel, and 
others concerned about this matter.
    The State Board of Education shall also promulgate rules 
and regulations for transportation to and from a residential 
school. Transportation to and from home to a residential 
school more than once each school term shall be subject to 
prior approval by the State Superintendent in accordance with 
the rules and regulations of the State Board.
    (i) A school district making tuition payments pursuant to 
this Section is eligible for reimbursement from the State for 
the amount of such payments actually made in excess of the 
district per capita tuition charge for students not receiving 
special education services. Such reimbursement shall be 
approved in accordance with Section 14-12.01 and each district 
shall file its claims, computed in accordance with rules 
prescribed by the State Board of Education, on forms 
prescribed by the State Superintendent of Education. Data used 
as a basis of reimbursement claims shall be for the preceding 
regular school term and summer school term. Each school 
district shall transmit its claims to the State Board of 
Education on or before August 15. The State Board of 
Education, before approving any such claims, shall determine 
their accuracy and whether they are based upon services and 
facilities provided under approved programs. Upon approval the 
State Board shall cause vouchers to be prepared showing the 
amount due for payment of reimbursement claims to school 
districts, for transmittal to the State Comptroller on the 
30th day of September, December, and March, respectively, and 
the final voucher, no later than June 20. If the money 
appropriated by the General Assembly for such purpose for any 
year is insufficient, it shall be apportioned on the basis of 
the claims approved.
    (j) No child shall be placed in a special education 
program pursuant to this Section if the tuition cost for 
special education and related services increases more than 10 
percent over the tuition cost for the previous school year or 
exceeds $4,500 per year unless such costs have been approved 
by the Illinois Purchased Care Review Board. The Illinois 
Purchased Care Review Board shall consist of the following 
persons, or their designees: the Directors of Children and 
Family Services, Public Health, Public Aid, and the Governor's 
Office of Management and Budget; the Secretary of Human 
Services; the State Superintendent of Education; and such 
other persons as the Governor may designate. The Review Board 
shall also consist of one non-voting member who is an 
administrator of a private, nonpublic, special education 
school, one non-voting member who is an administrator of a 
separate public special education day school, and one 
non-voting member from a State agency that administers and 
provides early childhood education and care programs and 
services to children and families. The Review Board shall 
establish rules and regulations for its determination of 
allowable costs and payments made by local school districts 
for special education, room and board, and other related 
services provided by non-public schools, separate public 
special education day schools, or special education facilities 
and shall establish uniform standards and criteria which it 
shall follow. The Review Board shall approve the usual and 
customary rate or rates of a special education program that 
(i) is offered by an out-of-state, non-public provider of 
integrated autism specific educational and autism specific 
residential services, (ii) offers 2 or more levels of 
residential care, including at least one locked facility, and 
(iii) serves 12 or fewer Illinois students. 
    (k) In determining rates based on allowable costs, the 
Review Board shall consider any wage increases awarded by the 
General Assembly to front line personnel defined as direct 
support persons, aides, front-line supervisors, qualified 
intellectual disabilities professionals, nurses, and 
non-administrative support staff working in service settings 
in community-based settings within the State and adjust 
customary rates or rates of a special education program to be 
equitable to the wage increase awarded to similar staff 
positions in a community residential setting. Any wage 
increase awarded by the General Assembly to front line 
personnel defined as direct support persons, aides, front-line 
supervisors, qualified intellectual disabilities 
professionals, nurses, and non-administrative support staff 
working in community-based settings within the State, 
including the $0.75 per hour increase contained in Public Act 
100-23 and the $0.50 per hour increase included in Public Act 
100-23, shall also be a basis for any facility covered by this 
Section to appeal its rate before the Review Board under the 
process defined in Title 89, Part 900, Section 340 of the 
Illinois Administrative Code. Illinois Administrative Code 
Title 89, Part 900, Section 342 shall be updated to recognize 
wage increases awarded to community-based settings to be a 
basis for appeal. However, any wage increase that is captured 
upon appeal from a previous year shall not be counted by the 
Review Board as revenue for the purpose of calculating a 
facility's future rate.
    (l) Any definition used by the Review Board in 
administrative rule or policy to define "related 
organizations" shall include any and all exceptions contained 
in federal law or regulation as it pertains to the federal 
definition of "related organizations". 
    (m) The Review Board shall establish uniform definitions 
and criteria for accounting separately by special education, 
room and board and other related services costs. The Board 
shall also establish guidelines for the coordination of 
services and financial assistance provided by all State 
agencies to assure that no otherwise qualified child with a 
disability receiving services under Article 14 shall be 
excluded from participation in, be denied the benefits of or 
be subjected to discrimination under any program or activity 
provided by any State agency.
    (n) The Review Board shall review the costs for special 
education and related services provided by non-public schools, 
separate public special education day schools, or special 
education facilities and shall approve or disapprove such 
facilities in accordance with the rules and regulations 
established by it with respect to allowable costs.
    (o) The State Board of Education shall provide 
administrative and staff support for the Review Board as 
deemed reasonable by the State Superintendent of Education. 
This support shall not include travel expenses or other 
compensation for any Review Board member other than the State 
Superintendent of Education.
    (p) The Review Board shall seek the advice of the Advisory 
Council on Education of Children with Disabilities on the 
rules and regulations to be promulgated by it relative to 
providing special education services.
    (q) If a child has been placed in a program in which the 
actual per pupil costs of tuition for special education and 
related services based on program enrollment, excluding room, 
board and transportation costs, exceed $4,500 and such costs 
have been approved by the Review Board, the district shall pay 
such total costs which exceed $4,500. A district making such 
tuition payments in excess of $4,500 pursuant to this Section 
shall be responsible for an amount in excess of $4,500 equal to 
the district per capita tuition charge and shall be eligible 
for reimbursement from the State for the amount of such 
payments actually made in excess of the district's districts 
per capita tuition charge for students not receiving special 
education services. If a child has been placed in a private 
special education school, separate public special education 
day school, or private special education facility, a district 
making tuition payments in excess of $4,500 pursuant to this 
Section shall be responsible for an amount in excess of $4,500 
equal to 2 times the district's per capita tuition charge and 
shall be eligible for reimbursement from the State for the 
amount of such payments actually made in excess of 2 times the 
district's per capita tuition charge for students not 
receiving special education services. 
    (r) If a child has been placed in an approved individual 
program and the tuition costs including room and board costs 
have been approved by the Review Board, then such room and 
board costs shall be paid by the appropriate State agency 
subject to the provisions of Section 14-8.01 of this Act. Room 
and board costs not provided by a State agency other than the 
State Board of Education shall be provided by the State Board 
of Education on a current basis. In no event, however, shall 
the State's liability for funding of these tuition costs begin 
until after the legal obligations of third party payors have 
been subtracted from such costs. If the money appropriated by 
the General Assembly for such purpose for any year is 
insufficient, it shall be apportioned on the basis of the 
claims approved. Each district shall submit estimated claims 
to the State Superintendent of Education. Upon approval of 
such claims, the State Superintendent of Education shall 
direct the State Comptroller to make payments on a monthly 
basis. The frequency for submitting estimated claims and the 
method of determining payment shall be prescribed in rules and 
regulations adopted by the State Board of Education. Such 
current state reimbursement shall be reduced by an amount 
equal to the proceeds which the child or child's parents are 
eligible to receive under any public or private insurance or 
assistance program. Nothing in this Section shall be construed 
as relieving an insurer or similar third party from an 
otherwise valid obligation to provide or to pay for services 
provided to a child with a disability.
    (s) If it otherwise qualifies, a school district is 
eligible for the transportation reimbursement under Section 
14-13.01 and for the reimbursement of tuition payments under 
this Section whether the non-public school or special 
education facility, public out-of-state school or county 
special education facility, attended by a child who resides in 
that district and requires special educational services, is 
within or outside of the State of Illinois. However, a 
district is not eligible to claim transportation reimbursement 
under this Section unless the district certifies to the State 
Superintendent of Education that the district is unable to 
provide special educational services required by the child for 
the current school year.
    (t) Nothing in this Section authorizes the reimbursement 
of a school district for the amount paid for tuition of a child 
attending a non-public school or special education facility, a 
public special education facility, a public out-of-state 
school, or a county special education facility unless the 
school district certifies to the State Superintendent of 
Education that the special education program of that district 
is unable to meet the needs of that child because of the 
child's his disability and the State Superintendent of 
Education finds that the school district is in substantial 
compliance with Section 14-4.01. However, if a child is 
unilaterally placed by a State agency or any court in a 
non-public school or special education facility, public 
out-of-state school, or county special education facility, a 
school district shall not be required to certify to the State 
Superintendent of Education, for the purpose of tuition 
reimbursement, that the special education program of that 
district is unable to meet the needs of a child because of his 
or her disability.
    (u) Any educational or related services provided, pursuant 
to this Section in a non-public school or special education 
facility or a special education facility owned and operated by 
a county government unit shall be at no cost to the parent or 
guardian of the child. However, current law and practices 
relative to contributions by parents or guardians for costs 
other than educational or related services are not affected by 
this amendatory Act of 1978.
    (v) Reimbursement for children attending public school 
residential facilities shall be made in accordance with the 
provisions of this Section.
    (w) Notwithstanding any other provision of law, any school 
district receiving a payment under this Section or under 
Section 14-7.02b, 14-13.01, or 29-5 of this Code may classify 
all or a portion of the funds that it receives in a particular 
fiscal year or from general State aid pursuant to Section 
18-8.05 of this Code as funds received in connection with any 
funding program for which it is entitled to receive funds from 
the State in that fiscal year (including, without limitation, 
any funding program referenced in this Section), regardless of 
the source or timing of the receipt. The district may not 
classify more funds as funds received in connection with the 
funding program than the district is entitled to receive in 
that fiscal year for that program. Any classification by a 
district must be made by a resolution of its board of 
education. The resolution must identify the amount of any 
payments or general State aid to be classified under this 
paragraph and must specify the funding program to which the 
funds are to be treated as received in connection therewith. 
This resolution is controlling as to the classification of 
funds referenced therein. A certified copy of the resolution 
must be sent to the State Superintendent of Education. The 
resolution shall still take effect even though a copy of the 
resolution has not been sent to the State Superintendent of 
Education in a timely manner. No classification under this 
paragraph by a district shall affect the total amount or 
timing of money the district is entitled to receive under this 
Code. No classification under this paragraph by a district 
shall in any way relieve the district from or affect any 
requirements that otherwise would apply with respect to that 
funding program, including any accounting of funds by source, 
reporting expenditures by original source and purpose, 
reporting requirements, or requirements of providing services.
    (x) The State Board of Education may adopt such rules as 
may be necessary to implement this Section. 
(Source: P.A. 102-254, eff. 8-6-21; 102-703, eff. 4-22-22; 
103-175, eff. 6-30-23; 103-546, eff. 8-11-23; revised 
8-30-23.)
 
    Section 99. Effective date. This Act takes effect July 1, 
2024.