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                                                       PRINTER'S NO. 160

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 147 Session of 1989


        INTRODUCED BY LASHINGER, D. W. SNYDER, NAHILL, CORNELL, MRKONIC,
           ITKIN, TIGUE, VROON, DISTLER, SCHULER, E. Z. TAYLOR, PETRARCA
           AND SAURMAN, JANUARY 30, 1989

        REFERRED TO COMMITTEE ON EDUCATION, JANUARY 30, 1989

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," further providing for the education
     6     of children with severe learning disabilities.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Section 1376 of the act of March 10, 1949
    10  (P.L.30, No.14), known as the Public School Code of 1949,
    11  amended December 20, 1983 (P.L.267, No.73), is amended to read:
    12     Section 1376.  Cost of Tuition and Maintenance of Certain
    13  Exceptional Children in Approved Institutions.--(a)  When any
    14  child between the ages of six (6) and twenty-one (21) years of
    15  age and resident in this Commonwealth, who is blind or deaf, or
    16  afflicted with cerebral palsy and/or brain damage and/or
    17  muscular dystrophy, and/or mentally retarded and/or socially and
    18  emotionally disturbed and/or severely learning disabled, is
    19  enrolled, with the approval of the Department of Education, as a


     1  pupil in an approved school for the blind or deaf, or cerebral
     2  palsied and/or brain damaged and/or muscular dystrophied and/or
     3  mentally retarded, and/or socially and emotionally disturbed
     4  and/or severely learning disabled, approved by the Department of
     5  Education, in accordance with standards and regulations
     6  promulgated by the Council of Basic Education, the school
     7  district in which such child is resident shall pay twenty per
     8  centum (20%) of the actual audited cost of tuition and
     9  maintenance of such child in such school, as determined by the
    10  Department of Education; and the Commonwealth shall pay, out of
    11  funds appropriated to the department for special education,
    12  eighty per centum (80%) of the cost of their tuition and
    13  maintenance, as determined by the Department. If the residence
    14  of such child in a particular school district cannot be
    15  determined, the Commonwealth shall pay, out of moneys
    16  appropriated to the department for special education, the whole
    17  cost of tuition and maintenance of such child. The Department of
    18  Education shall be provided with such financial data from
    19  approved schools as may be necessary to determine the
    20  reasonableness of costs for tuition and room and board
    21  concerning Pennsylvania resident approved reimbursed students.
    22  The Department of Education shall evaluate such data and shall
    23  disallow any cost deemed unreasonable. Any costs deemed
    24  unreasonable by the Department of Education for disallowance
    25  shall be considered an adjudication within the meaning of Title
    26  2 of the Pa.C.S. (relating to administrative law and procedure)
    27  and regulations promulgated thereunder.
    28     (b)  When any person less than six (6) or more than twenty-
    29  one (21) years of age and resident in this Commonwealth, who is
    30  blind or deaf, or afflicted with cerebral palsy and/or brain
    19890H0147B0160                  - 2 -

     1  damage and/or muscular dystrophy, and/or severely learning
     2  disabled, is enrolled, with the approval of the Department of
     3  Education, as a pupil in an approved school for the blind or
     4  deaf, or cerebral palsied and/or brain damaged and/or muscular
     5  dystrophied and/or severely learning disabled, approved by the
     6  Department of Education, the Commonwealth shall pay to such
     7  school, out of moneys appropriated to the department for special
     8  education, the actual audited cost of tuition and maintenance of
     9  such person, as determined by the Department of Education,
    10  subject to review and approval in accordance with standards and
    11  regulations promulgated by the Council of Basic Education, and
    12  in addition, in the case of any child less than six (6) years of
    13  age, who is blind, the cost, as determined by the Department of
    14  Education of instructing the parent of such blind child in
    15  caring for such child.
    16     (c)  Each approved school, prior to the start of the school
    17  year, shall submit to the department such information as the
    18  department may require in order to establish an estimate of
    19  reimbursable costs. [Based upon this information, any other data
    20  deemed necessary by the department and in accordance with
    21  department standards, the department shall develop for each
    22  approved school an estimate of reimbursable costs. Based upon
    23  such estimate, the department shall provide each approved school
    24  with quarterly payments in advance of department audit. The
    25  department may withhold a portion of such payments not exceeding
    26  five percent (5%) of such payment, pending final audit. In no
    27  event shall either the advance payments or final reimbursement
    28  made by the department following audit exceed the appropriation
    29  available for approved schools.] The department shall enter into
    30  an agreement with each approved school prior to the school year.
    19890H0147B0160                  - 3 -

     1  Such agreement shall set forth an estimate of reimbursable costs
     2  based on audit standards promulgated by the department and the
     3  estimate of daily average attendance. Based upon such estimate,
     4  the department shall provide each approved school with quarterly
     5  payments in advance of final department audit. The audit
     6  standards, promulgated by the department, shall specify as
     7  reasonable any cost allowed publicly operated education
     8  programs. In addition, the audit standards shall specify as
     9  reasonable, costs associated with the operation of a private
    10  nonprofit business (such as director's liability insurance or
    11  interest on money borrowed to operate the instructional program
    12  necessary to meet the requirements of an approved school). The
    13  department may withhold a portion of the advance quarterly
    14  payments. In no case, however, shall such withheld money exceed
    15  in total for any one (1) year or a combination of years, a sum
    16  equal to five per cent (5%) of the most recent year's agreement
    17  of estimated reimbursable costs. In no event shall either the
    18  advance payments or final reimbursements made by the department
    19  following the final audit exceed the appropriation available for
    20  approved schools.
    21     (d)  No private institution receiving payment in accordance
    22  with this section shall impose any charge on the student and/or
    23  parents who are Pennsylvania approved reimbursable residents for
    24  a program of individualized instruction and maintenance
    25  appropriate to the child's needs; except that charges for
    26  services not part of such program may be made if agreed to by
    27  the parents.
    28     (e)  Any private institution or approved school refusing to
    29  cooperate with the Department of Education's audit process shall
    30  be ineligible for the payments provided for in subsection (c).
    19890H0147B0160                  - 4 -

     1     Section 2.  This act applies to the school year 1989-1990 and
     2  each year thereafter.
     3     Section 3.  This act shall take effect in 60 days.


















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