Bill Text: IL HB4365 | 2021-2022 | 102nd General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Reinserts the provisions of the introduced bill with the following changes: Allows a student's (instead of child's) individualized education program (IEP) team to determine whether the special education program of a school district is unable to meet the needs of a child with a disability. Provides that the financial responsibility and reimbursement of the resident district of a child with a disability applies to emergency placements in nonpublic special education facilities that are not approved by the State Board of Education. Provides that a school district may place a student in a nonpublic special education facility providing educational services within the facility, but not approved by the State Board of Education, under specified circumstances. Removes provisions that provide that a school district has no obligation to pay a residential facility unless and until specified proof is provided to the satisfaction of the State Board of Education. Removes provisions that provide that if the State Board of Education denies approval in writing or does not respond to a facility's or resident district's request for approval within 10 days after the request is submitted to the State Board of Education, the matter shall be referred to the Community and Residential Services Authority, which shall make the determination and notify the facility or resident district and the State Board of Education within 10 days after the Authority receives the referral. Provides that emergency placement in an approved facility may continue 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. Removes changes to provisions concerning placement in a residential facility and payment of educational costs and provisions concerning the Community and Residential Services Authority. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Passed) 2022-04-22 - Public Act . . . . . . . . . 102-0703 [HB4365 Detail]

Download: Illinois-2021-HB4365-Enrolled.html

---

HB4365 Enrolled LRB102 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

HB4365 Enrolled - 2 - LRB102 23289 CMG 32455 b
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

HB4365 Enrolled - 3 - LRB102 23289 CMG 32455 b
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;

HB4365 Enrolled - 4 - LRB102 23289 CMG 32455 b
(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

HB4365 Enrolled - 5 - LRB102 23289 CMG 32455 b
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

HB4365 Enrolled - 6 - LRB102 23289 CMG 32455 b
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

HB4365 Enrolled - 7 - LRB102 23289 CMG 32455 b
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

HB4365 Enrolled - 8 - LRB102 23289 CMG 32455 b
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

HB4365 Enrolled - 9 - LRB102 23289 CMG 32455 b
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

HB4365 Enrolled - 10 - LRB102 23289 CMG 32455 b
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

HB4365 Enrolled - 11 - LRB102 23289 CMG 32455 b
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

HB4365 Enrolled - 12 - LRB102 23289 CMG 32455 b
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

HB4365 Enrolled - 13 - LRB102 23289 CMG 32455 b
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

HB4365 Enrolled - 14 - LRB102 23289 CMG 32455 b
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.)