Public Act 102-0703
 
HB4365 EnrolledLRB102 23289 CMG 32455 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 Section 
14-7.02 as follows:
 



    (105 ILCS 5/14-7.02)  (from Ch. 122, par. 14-7.02)


    Sec. 14-7.02. Children attending private 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 a 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 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.
    (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 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 placement. The State Board of 
Education shall promptly, within 10 days after the request, 
approve a request for emergency and student-specific approval 
for 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 place the student in an approved 
    facility, but no approved facility has accepted the 
    student or has availability for immediate 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 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 
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.  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 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 
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 districts 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, 
public out-of-state
school or 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 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.

(Source: P.A. 101-10, eff. 6-5-19; 102-254, eff. 8-6-21.)


 
    Section 99. Effective date. This Act takes effect upon 
becoming law.

Effective Date:  4/22/2022