S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5142--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 11, 2021
                                ___________
 
 Introduced  by  M.  of  A.  BENEDETTO,  JACKSON,  OTIS  -- read once and
   referred to the Committee on Education -- committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 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 TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR AND
 ANNUALLY  THEREAFTER  SHALL  AUTHORIZE  APPROVED  PRIVATE RESIDENTIAL OR
 NON-RESIDENTIAL 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; AND PROVIDED
 FURTHER THAT SUCH FUNDS SHALL  NOT  BE  RECOVERABLE  ON  RECONCILIATION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02625-03-1

 A. 5142--A                          2
 
 FUNDS MAY BE EXPENDED ONLY PURSUANT TO AN AUTHORIZATION OF THE GOVERNING
 BOARD  OF THE SCHOOL OR SCHOOL DISTRICT, FOR A PURPOSE EXPRESSLY AUTHOR-
 IZED AS PART OF THE APPROVED TUITION METHODOLOGY FOR THE YEAR  IN  WHICH
 THE  FUNDS  ARE TO BE EXPENDED. THE DIRECTOR OF THE BUDGET, IN CONSULTA-
 TION WITH THE COMMISSIONER, SHALL ESTABLISH THE AUTHORIZED USES FOR  THE
 EXPENDITURES  OF SUCH FUNDS AS PART OF THE APPROVED TUITION METHODOLOGY.
 ANY SCHOOL OR SCHOOL DISTRICT THAT RETAINS FUNDS PURSUANT TO THIS  PARA-
 GRAPH  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 ADDITIONAL 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.