§ 4410-b. Use of certain federal funds. 1. Definitions. For purposes
of this section:

a. "Approved preschool special education program" shall mean a public
or private agency which has been approved by the commissioner as a
provider of special education programs or services to preschool students
with disabilities pursuant to subdivision nine of section forty-four
hundred ten of this article or pursuant to article eighty-five of this
chapter.

b. "Base year" shall mean the school year next preceding the school
year in which funds are sub-allocated pursuant to this section.

c. "IEP team" means a committee on special education, a subcommittee
on special education, a committee on preschool special education or a
subcommittee on preschool special education.

d. "Public or private agency" shall mean an approved preschool special
education program, or a state-supported school operating pursuant to
article eighty-five of this chapter, or an approved private
non-residential or residential school that provides special services or
programs pursuant to subdivision two of section forty-four hundred one
of this article. Such term shall not include an individual providing
related services only to preschool students with disabilities pursuant
to section forty-four hundred ten of this article. Such term shall
include a board of cooperative educational services only to the extent
it is an approved preschool special education program, and only for
those students provided special education programs or services pursuant
to section forty-four hundred ten of this article.

2. Preschool grants for children with disabilities. Each school
district receiving an allocation of funds pursuant to section six
hundred nineteen of the individuals with disabilities education act for
the nineteen hundred ninety-nine--two thousand school year or any
subsequent school year shall sub-allocate such funds in accordance with
this subdivision to other public and private agencies providing special
education services to students ages three to five who were placed in
such agency by the school district's IEP team. For school years prior to
two thousand six--two thousand seven, such sub-allocations shall be made
on a per capita basis, based upon the number of students three to five
years of age who were placed in such agency by the school district's IEP
team and are served by the public or private agency as of December first
of the base year, as reported to the commissioner; and, for school years
two thousand six--two thousand seven and thereafter, such
sub-allocations shall be made on a per capita basis, based upon the
number of students three to five years of age who were placed in such
agency by the school district's IEP team and who are receiving special
education programming and instruction from the public or private agency
as of December first of the base year, as reported to the commissioner,
and according to a formulae based upon the number of students three to
five years of age who are receiving related services only from the
public or private agency as of December first of the base year, as
reported to the commissioner, such that such sub-allocation shall be in
an amount determined in accordance with the provisions of this
subdivision; provided, however, that for the nineteen hundred
ninety-nine--two thousand school year, the sub-allocation payable to
each public or private agency shall not be less than five hundred
forty-eight dollars per pupil. For the school year two thousand six--two
thousand seven, the per capita sub-allocation shall be adjusted whereby
each student three to five years of age who was placed in an agency by
the school district's IEP team and who is receiving special education
programming and instruction therefrom shall be counted as one per capita
and each such student who is receiving related services only from such
public or private agency shall be counted as two-thirds of a per capita,
for purposes of determining such per capita sub-allocation for such
school year and that for the school year two thousand seven--two
thousand eight and thereafter, shall be counted as one-third for the
purposes of determining the per capita sub-allocation for such school
year; provided, however, that any municipality which, prior to July
first, two thousand three, operated an approved special education
itinerant teacher program for students three to five years of age who
were placed in such program by a school district's IEP team, shall be
deemed to be a public or private agency for purposes of this section and
the sub-allocation directed by this subdivision shall be made on a per
capita basis, based upon the number of students, three to five years of
age who are receiving special education programming and instruction and
related services only therefrom. In the event the total amount allocated
to any school district pursuant to such section six hundred nineteen for
the nineteen hundred ninety-nine--two thousand school year is
insufficient to pay such sub-allocations at the required per pupil
level, the school district may apply to the department for a
supplemental allocation of funds in the amount of such deficiency from
the state allocation received pursuant to such section six hundred
nineteen. Payments of such sub-allocation shall be made in the same
proportion as such funds are paid to the school district by the state,
within thirty days after: (i) the school district receives any portion
of its allocation of funds for the current year pursuant to section six
hundred nineteen of the individuals with disabilities education act; or
(ii) the school district receives an application for a sub-allocation by
a public or private agency, or, for the nineteen hundred
ninety-nine--two thousand school year only, the school district receives
notice from the commissioner that such an application for a
sub-allocation has been filed with the commissioner, whichever occurs
later.

3. Federal flow-through funds. Each school district receiving an
allocation of funds pursuant to section six hundred eleven of the
individuals with disabilities education act for the nineteen hundred
ninety-nine--two thousand school year or any subsequent school year
shall sub-allocate such funds in accordance with this subdivision to
other public and private agencies providing special education services
to students ages three to twenty-one who were placed in such agency by
the school district's IEP team. For school years prior to two thousand
six--two thousand seven, such sub-allocations shall be made on a per
capita basis, based upon the number of students three to twenty-one
years of age who were placed in such agency by the school district's IEP
team and were served by the public or private agency as of December
first of the base year, as reported to the commissioner; and, for the
school year two thousand six--two thousand seven and thereafter, such
sub-allocations shall be made on a per capita basis, based upon the
number of students three to twenty-one years of age who were placed in
such agency by the school district's IEP team and who were receiving
special education programming and instruction from the public or private
agency as of December first of the base year, as reported to the
commissioner, and according to a formulae based upon the number of
students three to twenty-one years of age who were receiving related
services only from the public or private agency as of December first of
the base year, as reported to the commissioner, such that such
sub-allocation shall be in an amount determined in accordance with the
provisions of this subdivision. For the school year two thousand
six--two thousand seven, the per capita sub-allocation shall be adjusted
whereby each student three to twenty-one years of age who was placed in
an agency by the school district's IEP team and who is receiving special
education programming and instruction therefrom shall be counted as one
per capita and each such student who is receiving related services only
from such public or private agency shall be counted as two-thirds of a
per capita, for purposes of determining such per capita sub-allocation
for such school year and that for the school year two thousand
seven--two thousand eight and thereafter, shall be counted as one-third
for the purposes of determining the per capita sub-allocation for such
school year; provided, however, that any municipality which, prior to
July first, two thousand three, operated an approved special education
itinerant teacher program for students three to five years of age who
were placed in such program by a school district's IEP team, shall be
deemed to be a public or private agency for purposes of this section and
the sub-allocation directed by this subdivision shall be made on a per
capita basis, based upon the number of students, three to twenty-one
years of age who are receiving special education programming and
instruction and related services only therefrom. Payments of such
sub-allocation shall be made in the same proportion as such funds are
paid to the school district by the state within thirty days after: (i)
the school district receives any portion of its allocation of funds for
the current year pursuant to section six hundred eleven of the
individuals with disabilities education act; or (ii) the school district
receives an application for a sub-allocation by a public or private
agency, or, for the nineteen hundred ninety-nine--two thousand school
year only, the school district receives notice from the commissioner
that such an application for a sub-allocation has been filed with the
commissioner; whichever occurs later.

4. Charter schools. Notwithstanding the provisions of subdivisions two
and three of this section, any sub-allocation of funds received pursuant
to sections six hundred eleven and six hundred nineteen of the
individuals with disabilities education act shall be made in accordance
with section twenty-eight hundred fifty-six of this chapter and the
regulations of the commissioner implementing such section.

5. Carryover funds. In addition to the sub-allocations required
pursuant to subdivisions two and three of this section, each school
district receiving carryover funds from the nineteen hundred
ninety-eight--ninety-nine allocation pursuant to sections six hundred
eleven and six hundred nineteen of the individuals with disabilities
education act shall sub-allocate such carryover funds pursuant to this
subdivision to public and private agencies that have their chief
administrative offices located within the school district and have
carryover funds remaining from such allocation. Such sub-allocations
shall be made in the amounts determined by the commissioner in
accordance with procedures established by the commissioner. In the event
such a public or private agency has its chief administrative offices
located outside of the state, such agency may designate any school
district having resident students attending its programs as the district
responsible for sub-allocation of its nineteen hundred
ninety-eight--ninety-nine carryover funds pursuant to this subdivision.

6. Unobligated funds. Notwithstanding any other provision of law to
the contrary, funds sub-allocated to public and private agencies
pursuant to subdivisions two and three of this section for any school
year that are neither obligated by the last day of the project year nor
expended consistent with procedures established by the commissioner
shall be carried over to the following school year and shall be made
available to such agencies in accordance with procedures established by
the commissioner, commencing in July and August of such following school
year.

7. Funds; failure to apply. Any school district that fails to apply
for its full allocation of funds pursuant to both sections six hundred
eleven and six hundred nineteen of the individuals with disabilities
education act by a date to be prescribed by the commissioner shall
nevertheless be required to make sub-allocations to public or private
agencies pursuant to this section using local funds, based on the full
amount that the school district was eligible to receive, as if the
district had received an allocation of federal funds on such date.

8. Reporting requirements. a. Each public or private agency that
receives a sub-allocation of funds pursuant to this section shall submit
an annual cost report in a form approved by the commissioner.

b. The commissioner shall, in consultation with representatives of
statewide and regional provider organizations including municipalities
and school district personnel and other interested parties:

(1) develop forms to be submitted by school districts that report the
number of students three to twenty-one years of age who are placed in a
public or private agency providing special education services and who
are receiving special education programming and instruction from such
agency, and the number of such students who are receiving related
services only from such agency; and

(2) develop guidelines to assure that funds allocated and
sub-allocated pursuant to this section are used for purposes consistent
with federal laws and regulations governing such funds.