S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  572--A
     Cal. No. 482
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sens.  MAYER,  BROOKS, GAUGHRAN, HARCKHAM, JACKSON, LIU,
   MANNION, MAY -- read twice and ordered printed, and when printed to be
   committed to the Committee on Education  --  reported  favorably  from
   said committee, ordered to first and second report, ordered to a third
   reading,  passed  by  Senate  and delivered to the Assembly, recalled,
   vote reconsidered, restored to  third  reading,  amended  and  ordered
   reprinted, retaining its place in the order of third reading
 
 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
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02625-02-1

 S. 572--A                           2
 
 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.
 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.