S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5878

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              March 8, 2013
                               ___________

Introduced  by M. of A. BROOK-KRASNY, ARROYO -- Multi-Sponsored by -- M.
  of A. COOK, GIBSON, WEISENBERG  --  read  once  and  referred  to  the
  Committee on Education

AN ACT to amend the education law, in relation to the funding of certain
  approved  non-public special education programs and special act public
  school districts

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision  9  of  section 4001 of the education law, as
added by chapter 563 of the laws of 1980 and as  renumbered  by  chapter
947 of the laws of 1981, is amended to read as follows:
  9.  "Tuition"  shall  mean  the  per  pupil  cost of all instructional
services, supplies and equipment, and  the  operation  of  instructional
facilities  as  determined  by  the commissioner.   FOR THE TWO THOUSAND
THIRTEEN--TWO THOUSAND FOURTEEN  SCHOOL  YEAR  AND  THEREAFTER,  TUITION
RATES  FOR  A  PARTICULAR  SCHOOL YEAR THAT ARE CALCULATED BASED ON THAT
SCHOOL YEAR'S ACTUAL COSTS AND REVENUES MAY INCLUDE A SURPLUS FACTOR  OF
NOT MORE THAN TWO PERCENT OF THAT SCHOOL YEAR'S ALLOWABLE AND REIMBURSA-
BLE COSTS AS DETERMINED BY THE COMMISSIONER AND APPROVED BY THE DIRECTOR
OF  THE BUDGET, TO THE EXTENT THAT TUITION REVENUES EXCEED ALLOWABLE AND
REIMBURSABLE COSTS. Approved tuition shall be computed from expenditures
for which no revenue has been received from the following sources:
  a. Receipts from the federal government;
  b. Any cash receipts which reduce the cost of an item applied  against
the item therefor, except gifts, donations and earned interest; and
  c.  Any refunds made or any apportionment or payment received from the
state for experimental or special programs as approved  by  the  commis-
sioner.
  S 2. Subdivision 1 of section 4003 of the education law, as amended by
chapter 947 of the laws of 1981, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07970-01-3

              

A. 5878                             2

  1.  The  commissioner [of education], the commissioner of [social] THE
OFFICE OF CHILDREN AND  FAMILY  services,  and,  when  appropriate,  the
commissioner  of mental health shall develop reimbursement methodologies
for the tuition and maintenance components of  child  care  institutions
and  special  act  school districts. The commissioner [of education], in
consultation with the appropriate state agencies and departments AND  IN
ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION FOUR OF SECTION FORTY-FOUR
HUNDRED FIVE OF THIS CHAPTER, shall have responsibility for developing a
reimbursement  methodology  for tuition which shall be based upon appro-
priate educational standards promulgated pursuant to regulations of  the
commissioner  [of education]. The commissioner of [social] THE OFFICE OF
CHILDREN AND FAMILY services, except  for  institutions  for  which  the
state health department or the office of mental health establishes main-
tenance  rates,  in  consultation  with  appropriate  state agencies and
departments, shall have responsibility for  developing  a  reimbursement
methodology  for  maintenance, pursuant to section three hundred ninety-
eight-a of the social services law and the regulations promulgated ther-
eunder.
  S 3. Subdivision 5 of section 4401 of the education law, as amended by
chapter 470 of the laws of 1977, is amended to read as follows:
  5. "Tuition" shall mean  the  per  pupil  cost  of  all  instructional
services, supplies and equipment, the operation of instructional facili-
ties  and  allocable  debt  service for the instructional facilities, as
determined by the commissioner.   FOR  THE  TWO  THOUSAND  THIRTEEN--TWO
THOUSAND  FOURTEEN  SCHOOL  YEAR  AND  THEREAFTER,  TUITION  RATES FOR A
PARTICULAR SCHOOL THAT ARE CALCULATED BASED ON THAT SCHOOL YEAR'S ACTUAL
COSTS AND REVENUES MAY INCLUDE A SURPLUS FACTOR OF  NOT  MORE  THAN  TWO
PERCENT  OF  THAT  SCHOOL  YEAR'S  ALLOWABLE  AND REIMBURSABLE COSTS, AS
DETERMINED BY THE COMMISSIONER AND APPROVED BY THE DIRECTOR OF THE BUDG-
ET, TO THE EXTENT THAT TUITION REVENUES EXCEED ALLOWABLE AND  REIMBURSA-
BLE  COSTS.  Approved  tuition  shall be computed from expenditures from
which no revenue has been received from the following sources:
  (a) receipts from the federal government;
  (b) any cash receipts which reduce the cost of an item applied against
the item therefor, except gifts, donations and earned interest[,]; and
  (c) any refunds made or any apportionment or payment received from the
state for experimental or special programs as approved  by  the  commis-
sioner.
  S  4. Subdivision 4 of section 4405 of the education law is amended by
adding two new paragraphs j and k to read as follows:
  J. NOTWITHSTANDING ANY PROVISION OF LAW OR REGULATION TO THE CONTRARY,
FOR THE PURPOSE OF ESTABLISHING TUITION RATES FOR THE TWO THOUSAND THIR-
TEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR AND THEREAFTER, THE COMMISSIONER
SHALL DEVELOP A MULTI-YEAR TUITION RATE SETTING METHODOLOGY, PURSUANT TO
THIS PARAGRAPH, IN WHICH RATES ESTABLISHED IN  YEAR  ONE  ARE  BASED  ON
ALLOWABLE  HISTORICAL  COSTS  AS  DETERMINED  BY  THE  COMMISSIONER  AND
APPROVED BY THE DIRECTOR OF THE BUDGET. THE TUITION RATE  FOR  YEAR  TWO
SHALL  BE  CALCULATED BY APPLYING A COST-OF-LIVING FACTOR, AS DETERMINED
BY THE COMMISSIONER AND APPROVED BY THE DIRECTOR OF THE BUDGET,  TO  THE
APPROVED  YEAR ONE RATE. THE TUITION RATE FOR YEAR THREE SHALL BE CALCU-
LATED BY APPLYING A COST-OF-LIVING FACTOR, AS DETERMINED BY THE  COMMIS-
SIONER  AND APPROVED BY THE DIRECTOR OF THE BUDGET, TO THE APPROVED YEAR
TWO TUITION RATE. THIS MULTI-YEAR  RATE  SETTING  METHODOLOGY  SHALL  BE
IMPLEMENTED  ON A STAGGERED BASIS SO THAT APPROXIMATELY ONE-THIRD OF THE
SCHOOLS TO WHICH THE METHODOLOGY IS APPLIED WILL HAVE INITIAL  YEAR  ONE
RATES  CALCULATED  DURING  EACH  YEAR  OF  THE FIRST THREE YEAR CYCLE AS

A. 5878                             3

DETERMINED BY THE COMMISSIONER, PROVIDED, HOWEVER, THAT DURING THE TRAN-
SITION PERIOD WHILE SCHOOLS ARE BEING SHIFTED  TO  A  THREE-YEAR  CYCLE,
SUCH  METHODOLOGY  SHALL  PROVIDE FOR COST-OF-LIVING INCREASES FOR THOSE
SCHOOLS NOT YET IN YEAR TWO OF A THREE-YEAR CYCLE AS OF THE TWO THOUSAND
FOURTEEN--TWO  THOUSAND  FIFTEEN SCHOOL YEAR BASED UPON APPLICATION OF A
COST-OF-LIVING FACTOR TO THE TUITION RATE OTHERWISE CALCULATED FOR  SUCH
SCHOOLS PURSUANT TO THIS SUBDIVISION.  THE COMMISSIONER SHALL PROMULGATE
REGULATIONS  NECESSARY FOR IMPLEMENTATION OF THE MULTI-YEAR RATE SETTING
METHODOLOGY AS PROVIDED BY THIS PARAGRAPH.
  K. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR  REGULATION  TO
THE  CONTRARY,  TUITION  RATES  FOR  SPECIAL EDUCATION ITINERANT TEACHER
PROGRAMS APPROVED UNDER SECTION FORTY-FOUR HUNDRED TEN OF  THIS  CHAPTER
FOR  THE  TWO  THOUSAND  THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR AND
THEREAFTER SHALL BE ESTABLISHED ON A REGIONAL BASIS.
  S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law provided, however, that the  commissioner  of
education shall promulgate rules and regulations immediately to effectu-
ate the timely implementation of this act.