Section 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.