S T A T E   O F   N E W   Y O R K
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                                   10834
 
                           I N  A S S E M B L Y
 
                               July 20, 2020
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Benedetto)
   -- read once and referred to the Committee on Education
 
 AN ACT to amend the education law, in relation  to  special  act  school
   districts and special education
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 4004 of the education law is amended  by  adding  a
 new subdivision 5 to read as follows:
   5.  THE  BOARD  OF EDUCATION OF A SPECIAL ACT SCHOOL DISTRICT SHALL BE
 AUTHORIZED TO ESTABLISH A FISCAL STABILIZATION RESERVE FUND.  THERE  MAY
 BE  PAID  INTO  SUCH  FUND  AN AMOUNT AS MAY BE PROVIDED PURSUANT TO THE
 REQUIREMENTS OF PARAGRAPH K OF SUBDIVISION FOUR  OF  SECTION  FORTY-FOUR
 HUNDRED FIVE OF THIS TITLE.
   §  2. Subdivision 4 of section 4405 of the education law is amended by
 adding a new paragraph k to read as follows:
   K. THE TUITION METHODOLOGY ESTABLISHED PURSUANT  TO  THIS  SUBDIVISION
 FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR AND ANNU-
 ALLY  THEREAFTER SHALL AUTHORIZE APPROVED PRIVATE RESIDENTIAL OR NON-RE-
 SIDENTIAL SCHOOLS FOR THE EDUCATION OF STUDENTS WITH  DISABILITIES  THAT
 ARE  LOCATED  WITHIN  THE  STATE,  AND  SPECIAL ACT SCHOOL DISTRICTS, TO
 RETAIN FUNDS  IN  EXCESS  OF  THEIR  ALLOWABLE  AND  REIMBURSABLE  COSTS
 INCURRED  FOR SERVICES AND PROGRAMS PROVIDED TO SCHOOL-AGE STUDENTS. THE
 AMOUNT OF FUNDS THAT MAY BE  ANNUALLY  RETAINED  SHALL  NOT  EXCEED  ONE
 PERCENT  OF  THE SCHOOL'S OR SCHOOL DISTRICT'S TOTAL ALLOWABLE AND REIM-
 BURSABLE COSTS FOR SERVICES AND PROGRAMS PROVIDED TO SCHOOL-AGE STUDENTS
 FOR THE SCHOOL YEAR FROM WHICH THE FUNDS ARE TO  BE  RETAINED;  PROVIDED
 THAT THE TOTAL ACCUMULATED BALANCE THAT MAY BE RETAINED SHALL NOT EXCEED
 FOUR  PERCENT  OF  SUCH  TOTAL  COSTS FOR SUCH SCHOOL YEAR. FUNDS MAY BE
 EXPENDED ONLY PURSUANT TO AN AUTHORIZATION OF THE GOVERNING BOARD OF THE
 SCHOOL OR SCHOOL DISTRICT, FOR A PURPOSE EXPRESSLY AUTHORIZED AS PART OF
 THE APPROVED TUITION METHODOLOGY FOR THE YEAR IN WHICH THE FUNDS ARE  TO
 BE  EXPENDED.  THE  DIRECTOR  OF  THE  BUDGET,  IN CONSULTATION WITH THE
 COMMISSIONER, SHALL ESTABLISH THE AUTHORIZED USES FOR  THE  EXPENDITURES
 OF SUCH FUNDS AS PART OF THE APPROVED TUITION METHODOLOGY. ANY SCHOOL OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16791-01-0

 A. 10834                            2

 SCHOOL  DISTRICT  THAT RETAINS FUNDS PURSUANT TO THIS PARAGRAPH SHALL BE
 REQUIRED TO ANNUALLY REPORT A STATEMENT OF THE TOTAL BALANCE OF ANY SUCH
 RETAINED FUNDS, THE AMOUNT, IF ANY, RETAINED IN THE PRIOR  SCHOOL  YEAR,
 THE  AMOUNT,  IF  ANY, DISBURSED IN THE PRIOR SCHOOL YEAR, AND ANY ADDI-
 TIONAL INFORMATION REQUESTED BY THE DEPARTMENT AS PART OF THE  FINANCIAL
 REPORTS THAT ARE REQUIRED TO BE ANNUALLY SUBMITTED TO THE DEPARTMENT.
   § 3. This act shall take effect immediately.