S T A T E   O F   N E W   Y O R K
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                                  4178

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 29, 2015
                               ___________

Introduced  by M. of A. BROOK-KRASNY, ARROYO -- Multi-Sponsored by -- M.
  of A. COOK -- 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
FIFTEEN--TWO  THOUSAND SIXTEEN 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  REIMBURSABLE
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:
  1. The commissioner [of education], the commissioner of  [social]  THE
OFFICE  OF  CHILDREN  AND  FAMILY  services,  and, when appropriate, the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08246-01-5
              

A. 4178                             2

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 FIFTEEN--TWO THOU-
SAND  SIXTEEN 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 BUDGET, TO THE
EXTENT THAT TUITION REVENUES EXCEED ALLOWABLE  AND  REIMBURSABLE  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 k and l to read as follows:
  K. NOTWITHSTANDING ANY PROVISION OF LAW OR REGULATION TO THE CONTRARY,
FOR THE PURPOSE OF ESTABLISHING  TUITION  RATES  FOR  THE  TWO  THOUSAND
FIFTEEN--TWO  THOUSAND  SIXTEEN  SCHOOL YEAR AND THEREAFTER, THE COMMIS-
SIONER 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  DETER-
MINED 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
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 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
DETERMINED BY THE COMMISSIONER, PROVIDED, HOWEVER, THAT DURING THE TRAN-
SITION PERIOD WHILE SCHOOLS ARE BEING SHIFTED  TO  A  THREE-YEAR  CYCLE,

A. 4178                             3

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
SIXTEEN--TWO THOUSAND SEVENTEEN 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.
  L.  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 FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL YEAR AND THER-
EAFTER 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.