First Regular Session

Sixty-first General Assembly

LLS NO. 97­0280.01 JAP HOUSE BILL 97­1173

STATE OF COLORADO

BY REPRESENTATIVES Allen, Anderson, and Keller.

EDUCATION

A BILL FOR AN ACT

CONCERNING SCHOOL FINANCE FUNDING FOR PUPILS PLACED IN ALTERNATIVE FACILITIES.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

Makes the following provisions applicable to fiscal years commencing on or after July 1, 1997.

Provides that children who receive educational services within a school district and who are placed in certain child care facilities, group homes, or day treatment programs as a result of placement by a court or a state agency or by the child's parent with the school district's assent shall be deemed to reside in the school district where they receive the educational services.

For purposes of determining pupil enrollment, counts certain pupils who receive educational services within a school district and who are placed in certain child care facilities, group homes, or day treatment programs as a result of placement by a court, a state agency, or the pupil's parent using a ratio for pupils in eligible facilities to reflect the cost of providing services through the facilities in which the pupil is placed.

Directs the department of education to withhold an amount equal to the district's per pupil operating revenues times the ratio for pupils in eligible facilities for each pupil who receives educational services within a school district and is placed in a child care facility, group home, or day treatment program as a result of placement by a court, a state agency, or the pupil's parent and is counted by the school district as part of the pupil enrollment. Provides that such moneys shall be placed in an alternative facilities school fund. Requires the department to review the amount withheld at least every two years and recommend adjustments in the amount to the general assembly.

Creates the alternative facilities school fund for the use of the department of education to pay school districts, boards of cooperative services, and eligible facilities for the costs of providing an approved educational program. Defines eligible facilities. Directs the department of education to establish an approval process for educational programs offered to pupils who reside in an eligible facility and to establish a program rate based on the actual costs of the programs. Directs school districts, boards of cooperative services, and eligible facilities to bill the department monthly for the costs of approved educational programs in accordance with the program rate set by the department, and directs the department to make the payments from the alternative facilities school fund.

Makes conforming amendments.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  22­1­102 (2), Colorado Revised Statutes, 1995 Repl. Vol., is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

22­1­102.  Residence of child. (2)  A child shall be deemed to reside in a school district if:

(i)  AS A RESULT OF EITHER PLACEMENT BY A COURT OF RECORD, THE DEPARTMENT OF HUMAN SERVICES, OR ANY OTHER STATE AGENCY AUTHORIZED TO MAKE THE PLACEMENT OR PLACEMENT BY THE CHILD'S PARENT, GUARDIAN, OR LEGAL CUSTODIAN WITH THE SCHOOL DISTRICT'S ASSENT, THE CHILD RECEIVES EDUCATIONAL SERVICES FROM A SCHOOL DISTRICT, A BOARD OF COOPERATIVE SERVICES, OR ONE OF THE FACILITIES SPECIFIED IN SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH (i) LOCATED WITHIN THE SCHOOL DISTRICT AND THE CHILD IS PLACED:

(I)  IN A RESIDENTIAL CHILD CARE FACILITY, SECURE RESIDENTIAL TREATMENT CENTER, GROUP CARE FACILITY OR HOME, OR DAY TREATMENT PROGRAM THAT IS DESIGNATED BY THE STATE BOARD OF EDUCATION AND LICENSED PURSUANT TO ARTICLE 6 OF TITLE 26, C.R.S.; OR

(II)  IN A GENERAL OR SPECIALTY HOSPITAL DESIGNATED BY THE STATE BOARD OF EDUCATION AND LICENSED PURSUANT TO ARTICLE 1 OF TITLE 25, C.R.S.

SECTION 2.  22­54­103 (10), Colorado Revised Statutes, 1995 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

22­54­103.  Definitions.  As used in this article, unless the context otherwise requires:

(10) (e.5)  EACH PUPIL WHO RECEIVES EDUCATIONAL SERVICES WITHIN A SCHOOL DISTRICT AND WHO HAS BEEN PLACED IN AN ELIGIBLE FACILITY, AS DEFINED IN SECTION 22­55­103 (2), AS A RESULT OF EITHER A PLACEMENT BY A COURT OF RECORD, THE DEPARTMENT OF HUMAN SERVICES, OR ANY OTHER STATE AGENCY AUTHORIZED TO MAKE THE PLACEMENT OR PLACEMENT BY THE PUPIL'S PARENT, GUARDIAN, OR LEGAL CUSTODIAN WITH THE SCHOOL DISTRICT'S ASSENT SHALL BE COUNTED AS A FULL­DAY PUPIL MULTIPLIED BY THE RATIO FOR PUPILS IN ELIGIBLE FACILITIES. THIS PARAGRAPH (e.5) SHALL NOT APPLY TO A PUPIL WHO ATTENDS A PUBLIC SCHOOL IN THE SCHOOL DISTRICT AND IS NOT RECEIVING AN INDIVIDUAL EDUCATIONAL PROGRAM AS DESCRIBED IN SECTION 22­20­108 OR TO A PUPIL WHO IS PLACED IN A DAY TREATMENT PROGRAM THAT IS OPERATED BY A SCHOOL DISTRICT OR A BOARD OF COOPERATIVE SERVICES.

SECTION 3.  22­54­103, Colorado Revised Statutes, 1995 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

22­54­103.  Definitions.  As used in this article, unless the context otherwise requires:

(10.5)  "RATIO FOR PUPILS IN ELIGIBLE FACILITIES" MEANS THE RATIO OF THE AVERAGE PER PUPIL COST FOR ELIGIBLE PUPILS, AS DEFINED IN SECTION 22­55­103 (3), SERVED IN ELIGIBLE FACILITIES, AS DEFINED IN SECTION 22­55­103 (2), TO THE AVERAGE TOTAL PER PUPIL FUNDING PURSUANT TO THIS ARTICLE. THE AVERAGE PER PUPIL COST FOR ELIGIBLE PUPILS SERVED IN ELIGIBLE FACILITIES IS AN AMOUNT EQUAL TO THE PROGRAM RATE OF EACH EDUCATIONAL PROGRAM APPROVED PURSUANT TO SECTION 22­55­105 MULTIPLIED BY THE NUMBER OF ELIGIBLE PUPILS PARTICIPATING IN EACH EDUCATIONAL PROGRAM DIVIDED BY THE TOTAL NUMBER OF ELIGIBLE PUPILS SERVED IN ELIGIBLE FACILITIES. THE AVERAGE TOTAL PER PUPIL FUNDING PURSUANT TO THIS ARTICLE IS AN AMOUNT EQUAL TO THE TOTAL PROGRAM FOR ALL DISTRICTS DIVIDED BY THE TOTAL FUNDED PUPIL COUNT FOR ALL DISTRICTS.

SECTION 4.  22­54­109 (3), Colorado Revised Statutes, 1995 Repl. Vol., is amended to read:

22­54­109.  Attendance in district other than district of residence. (3) (a)  Every school district THE COLORADO SCHOOL FOR THE DEAF AND THE BLIND AND EVERY COMMUNITY CENTER, REGIONAL CENTER, RESIDENTIAL CHILD CARE FACILITY, SECURE RESIDENTIAL TREATMENT CENTER, GROUP CARE FACILITY OR HOME, AND DAY TREATMENT PROGRAM THAT IS DESIGNATED BY THE STATE BOARD AND LICENSED PURSUANT TO ARTICLE 1 OF TITLE 26, C.R.S., AND EVERY GENERAL OR SPECIALTY HOSPITAL DESIGNATED BY THE STATE BOARD AND LICENSED PURSUANT TO ARTICLE 1 OF TITLE 25, C.R.S., shall report to the department of education, by district of residence, the number of ITS pupils not included in the district's pupil enrollment but who are receiving educational services in residential child care facilities, community centers, regional centers, the school for the deaf and the blind, and other group care facilities or homes designated by the state board within the district's boundaries. IN RESIDENCE OR RECEIVING EDUCATIONAL SERVICES AS A RESULT OF A PLACEMENT BY EITHER A COURT OF RECORD, THE DEPARTMENT OF HUMAN SERVICES, OR ANY STATE AGENCY AUTHORIZED TO MAKE THE PLACEMENT OR AS A RESULT OF PLACEMENT BY THE PUPIL'S PARENT, GUARDIAN, OR LEGAL CUSTODIAN WITH THE SCHOOL DISTRICT'S ASSENT.

(b)  EXCEPT AS PROVIDED IN PARAGRAPH (c) OF THIS SUBSECTION (3), the department of education shall annually withhold an amount equal to the district of residence's per pupil operating revenues for each such child counted by local school districts but not actually attending classes in the district of residence and included on the roll of out­of­district placed children. The department shall forward to the district or state institution or facility delivering the education, on a monthly basis, the proportional amount of the state average per pupil operating revenues.

(c)  FOR EACH PUPIL COUNTED IN A DISTRICT'S PUPIL ENROLLMENT PURSUANT TO SECTION 22­54­103 (10) (e.5) AND REPORTED TO THE DEPARTMENT OF EDUCATION PURSUANT TO PARAGRAPH (a) OF THIS SUBSECTION (3), EXCEPT FOR THOSE REPORTED BY THE COLORADO SCHOOL FOR THE DEAF AND THE BLIND, A COMMUNITY CENTER, OR A REGIONAL CENTER, THE DEPARTMENT OF EDUCATION SHALL ANNUALLY WITHHOLD AN AMOUNT EQUAL TO THE DISTRICT OF RESIDENCE'S PER PUPIL OPERATING REVENUES MULTIPLIED BY THE RATIO FOR PUPILS IN ELIGIBLE FACILITIES. THIS AMOUNT SHALL BE DEPOSITED IN THE ALTERNATIVE FACILITIES SCHOOL FUND CREATED IN SECTION 22­55­104 FOR ALLOCATION IN ACCORDANCE WITH ARTICLE 55 OF THIS TITLE. THE DEPARTMENT SHALL REVIEW THE AMOUNT WITHHELD AT LEAST EVERY TWO YEARS AND SHALL RECOMMEND TO THE GENERAL ASSEMBLY ADJUSTMENTS IN THE AMOUNT, IF NECESSARY OR DESIRABLE IN THE JUDGMENT OF THE DEPARTMENT.

SECTION 5.  Title 22, Colorado Revised Statutes, 1995 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW ARTICLE to read:

ARTICLE 55

Alternative Educational Facilities Funding Act

22­55­101.  Short title.  THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "ALTERNATIVE EDUCATIONAL FACILITIES FUNDING ACT".

22­55­102.  Legislative declaration. (1)  THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT:

(a)  IT IS APPROPRIATE TO TREAT PUPILS WHO ARE PLACED IN RESIDENTIAL CHILD CARE FACILITIES, SECURE RESIDENTIAL TREATMENT CENTERS, GROUP CARE FACILITIES OR HOMES, OR DAY TREATMENT PROGRAMS THAT ARE DESIGNATED BY THE STATE BOARD OF EDUCATION AND LICENSED PURSUANT TO ARTICLE 6 OF TITLE 26, C.R.S., OR IN GENERAL OR SPECIALTY HOSPITALS THAT ARE LICENSED PURSUANT TO ARTICLE 1 OF TITLE 25, C.R.S., AS RESIDENTS OF THE SCHOOL DISTRICT IN WHICH THEY ACTUALLY RECEIVE EDUCATIONAL SERVICES; AND

(b)  SERVING THE EDUCATIONAL NEEDS OF SUCH PUPILS WILL FREQUENTLY REQUIRE THE DEVELOPMENT OF SPECIAL EDUCATIONAL PROGRAMS AND MAY PLACE ADDITIONAL DEMANDS ON THE STAFF AND TEACHERS PROVIDING SUCH PROGRAMS.

(2)  IT IS THEREFORE THE INTENT OF THE GENERAL ASSEMBLY IN ENACTING THIS ARTICLE TO ESTABLISH A METHOD FOR ALLOCATING SCHOOL FINANCE FUNDING FOR SUCH PUPILS IN A MANNER THAT DIRECTS THE FUNDING TO THE SCHOOL DISTRICT, BOARD OF COOPERATIVE SERVICES, OR FACILITY THAT PROVIDES THE PUPILS' EDUCATIONAL SERVICES AND ACCOUNTS FOR ANY SPECIAL EDUCATIONAL NEEDS THAT MUST BE SERVED.

22­55­103.  Definitions.  AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1)  "DEPARTMENT" MEANS THE DEPARTMENT OF EDUCATION.

(2)  "ELIGIBLE FACILITY" MEANS A RESIDENTIAL CHILD CARE FACILITY, SECURE RESIDENTIAL TREATMENT CENTER, GROUP CARE FACILITY OR HOME, OR DAY TREATMENT PROGRAM THAT IS DESIGNATED BY THE STATE BOARD OF EDUCATION AND LICENSED PURSUANT TO ARTICLE 6 OF TITLE 26, C.R.S., OR A GENERAL OR SPECIALTY HOSPITAL THAT IS DESIGNATED BY THE STATE BOARD OF EDUCATION AND LICENSED PURSUANT TO ARTICLE 1 OF TITLE 25, C.R.S.

(3)  "ELIGIBLE PUPIL" MEANS A PUPIL INCLUDED IN A DISTRICT'S PUPIL ENROLLMENT PURSUANT TO SECTION 22­54­103 (10) (e.5) AND REPORTED TO THE DEPARTMENT PURSUANT TO SECTION 22­54­109 (3) (a).

22­55­104.  Alternative facilities school fund ­ creation ­ revenues. (1)  THERE IS HEREBY CREATED IN THE STATE TREASURY A FUND, SEPARATE FROM THE GENERAL FUND, TO BE KNOWN AS THE ALTERNATIVE FACILITIES SCHOOL FUND. THERE SHALL BE CREDITED TO THE FUND THE MONEYS WITHHELD BY THE DEPARTMENT PURSUANT TO SECTION 22­54­109 (3) (c).

(2)  MONEYS IN THE ALTERNATIVE FACILITIES SCHOOL FUND ARE SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY TO THE DEPARTMENT TO PAY SCHOOL DISTRICTS, BOARDS OF COOPERATIVE SERVICES, AND ELIGIBLE FACILITIES IN ACCORDANCE WITH THIS ARTICLE, ON A MONTHLY BASIS, THE AMOUNT OF THE PROGRAM RATE OF AN EDUCATIONAL PROGRAM THAT IS APPROVED PURSUANT TO SECTION 22­55­105 MULTIPLIED BY THE NUMBER OF FULL­TIME EQUIVALENT ELIGIBLE PUPILS SERVED.

(3)  ALL UNAPPROPRIATED OR UNEXPENDED BALANCES REMAINING IN THE ALTERNATIVE FACILITIES SCHOOL FUND AT THE CLOSE OF ANY FISCAL YEAR SHALL REMAIN THEREIN AND SHALL NOT REVERT TO THE GENERAL FUND. ALL INTEREST DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEYS IN THE FUND SHALL BE CREDITED TO THE FUND.

22­55­105.  Educational programs at eligible facilities ­ approval ­ fee schedule ­ monitoring. (1)  A SCHOOL DISTRICT, A BOARD OF COOPERATIVE SERVICES, OR AN ELIGIBLE FACILITY THAT PROVIDES AN EDUCATIONAL PROGRAM TO SERVE ELIGIBLE PUPILS IS ELIGIBLE TO RECEIVE FUNDING FOR THE PROGRAM FROM THE DEPARTMENT IF THE PROGRAM HAS BEEN APPROVED PURSUANT TO THIS SECTION.

(2)  THE STATE BOARD OF EDUCATION, BY RULE, SHALL ESTABLISH QUALITY STANDARDS AND AN APPROVAL PROCESS FOR PROPOSED EDUCATIONAL PROGRAMS FOR PUPILS WHO HAVE BEEN PLACED IN AN ELIGIBLE FACILITY THAT CONSIDERS, AT A MINIMUM, THE NEEDS OF THE PUPILS TO BE SERVED, THE NUMBER OF PUPILS TO BE SERVED, AND THE PROPOSED EDUCATIONAL PROGRAM. IF A PUPIL WHO HAS BEEN PLACED IN AN ELIGIBLE FACILITY ATTENDS A PUBLIC SCHOOL IN A SCHOOL DISTRICT, THE SCHOOL DISTRICT'S EDUCATIONAL PROGRAM SHALL BE DEEMED APPROVED PURSUANT TO THIS SECTION; EXCEPT THAT A DAY TREATMENT PROGRAM OPERATED BY A SCHOOL DISTRICT OR A BOARD OF COOPERATIVE SERVICES SHALL NOT BE DEEMED APPROVED AND THE SCHOOL DISTRICT OR BOARD OF COOPERATIVE SERVICES MAY NOT RECEIVE FUNDING FOR SUCH A PROGRAM PURSUANT TO THIS ARTICLE.

(3)  FOR EACH EDUCATIONAL PROGRAM THAT IS APPROVED PURSUANT TO THIS SECTION, THE DEPARTMENT SHALL ESTABLISH A PROGRAM RATE FOR THE OPERATION OF THE PROGRAM THAT IS BASED ON THE ESTIMATED COST OF PROVIDING THE PROGRAM. IN ESTABLISHING THE PROGRAM RATE, THE DEPARTMENT MAY SOLICIT INFORMATION CONCERNING AND CONSIDER THE NATURE OF THE FACILITY PROVIDING THE PROGRAM, THE NEEDS OF THE PUPILS TO BE SERVED BY THE PROGRAM, THE PURPOSE AND SCOPE OF THE PROGRAM, THE SPECIAL SERVICES AND MATERIALS REQUIRED TO PROVIDE THE PROGRAM, AND ANY OTHER COSTS THAT ARE ASSOCIATED WITH THE PROGRAM.

(4)  THE DEPARTMENT SHALL BE RESPONSIBLE, IN CONJUNCTION WITH SCHOOL DISTRICTS, BOARDS OF COOPERATIVE SERVICES, AND ELIGIBLE FACILITIES, FOR MONITORING THE CONDUCT OF EDUCATIONAL PROGRAMS APPROVED PURSUANT TO THIS SECTION AND ENSURING THAT QUALITY EDUCATIONAL SERVICES ARE PROVIDED. THE DEPARTMENT MAY TERMINATE THE APPROVED STATUS OF AN EDUCATIONAL PROGRAM IF IT DETERMINES THAT THE PROGRAM FAILS TO MEET THE STANDARDS ESTABLISHED WHEN THE PROGRAM WAS APPROVED.

(5)  THE STATE BOARD OF EDUCATION SHALL PROMULGATE RULES IN ACCORDANCE WITH SECTION 24­4­103, C.R.S., FOR THE IMPLEMENTATION OF THIS ARTICLE.

22­55­106.  Educational programs at eligible facilities ­ billing. (1)  ANY SCHOOL DISTRICT, BOARD OF COOPERATIVE SERVICES, OR ELIGIBLE FACILITY PROVIDING AN EDUCATIONAL PROGRAM THAT HAS BEEN APPROVED PURSUANT TO SECTION 22­55­105 SHALL BILL THE DEPARTMENT, ON A MONTHLY BASIS, AN AMOUNT EQUAL TO THE NUMBER OF FULL­TIME EQUIVALENT ELIGIBLE PUPILS SERVED MULTIPLIED BY THE PROGRAM RATE ESTABLISHED PURSUANT TO SECTION 22­55­105 FOR THE COSTS OF PROVIDING THE EDUCATIONAL PROGRAM.

(2)  THE DEPARTMENT SHALL FORWARD FUNDING FOR EDUCATIONAL PROGRAMS PROVIDED BY SCHOOL DISTRICTS, BOARDS OF COOPERATIVE SERVICES, OR ELIGIBLE FACILITIES FROM MONEYS AVAILABLE IN THE ALTERNATIVE FACILITIES SCHOOL FUND BASED ON THE PROGRAM RATES ESTABLISHED PURSUANT TO SECTION 22­55­105. SUCH PAYMENTS SHALL BE MADE ON A MONTHLY BASIS.

SECTION 6.  22­20­107.5, Colorado Revised Statutes, 1995 Repl. Vol., is amended to read:

22­20­107.5.  District of residence of a child with a disability ­ jurisdiction. (1)  Notwithstanding the provisions of section 22­1­102 (2), for the purposes of this article the district of residence of a child with a disability is the school district in which such child lives on a day­to­day basis; except that:

(a)  If a child with a disability is homeless, as defined by section 22­1­102.5, the provisions of section 22­1­102 (2) (h) shall apply;

(b)  IF, AS A RESULT OF EITHER PLACEMENT BY A COURT OF RECORD, THE DEPARTMENT OF HUMAN SERVICES, OR ANY OTHER STATE AGENCY AUTHORIZED TO MAKE THE PLACEMENT OR PLACEMENT BY THE CHILD'S PARENT, GUARDIAN, OR LEGAL CUSTODIAN WITH THE SCHOOL DISTRICT'S ASSENT, THE CHILD RECEIVES EDUCATIONAL SERVICES FROM A SCHOOL DISTRICT, BOARD OF COOPERATIVE SERVICES, OR ELIGIBLE FACILITY, AS DEFINED IN SECTION 22­55­103 (2), LOCATED WITHIN THE SCHOOL DISTRICT, THE PROVISIONS OF SECTION 22­2­102 (i) SHALL APPLY; and except that,

(c)  When a child is living at one of the regional centers including satellite homes of such centers operated by the department of human services or any other facility operated by or under contract to the department of human services or at the Colorado mental health institute at Pueblo or Fort Logan, a group care facility or home, or the school for the deaf and the blind, such child shall be deemed to reside where the parent or guardian of such child resides; except that, when a child lives in such facility and the district of residence cannot be determined due to the inability to locate a parent or guardian, the child shall be considered a resident of the school district in which such facility is located.

(2)  If there is a dispute as to which school district constitutes the district of residence, the commissioner of education shall have the authority to determine questions of residency and thus jurisdiction after reviewing necessary details involved in the determination of residency.

SECTION 7.  22­20­109, Colorado Revised Statutes, 1995 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

22­20­109.  Tuition. (6)  THE PROVISIONS OF THIS SECTION SHALL NOT APPLY IF, AS A RESULT OF EITHER PLACEMENT BY A COURT OF RECORD, THE DEPARTMENT OF HUMAN SERVICES, OR ANY OTHER STATE AGENCY AUTHORIZED TO MAKE THE PLACEMENT OR PLACEMENT BY A CHILD'S PARENT, GUARDIAN, OR LEGAL CUSTODIAN WITH THE SCHOOL DISTRICT'S ASSENT, A CHILD RECEIVES EDUCATIONAL SERVICES FROM A SCHOOL DISTRICT, BOARD OF COOPERATIVE SERVICES, OR ELIGIBLE FACILITY, AS DEFINED IN SECTION 22­55­103 (2), LOCATED WITHIN THE SCHOOL DISTRICT AND THE SCHOOL DISTRICT, BOARD OF COOPERATIVE SERVICES, OR ELIGIBLE FACILITY RECEIVES REIMBURSEMENT PURSUANT TO ARTICLE 55 OF THIS TITLE.

SECTION 8.  Effective date ­ applicability.  This act shall take effect upon passage and shall apply to fiscal years commencing on or after July 1, 1997.

SECTION 9.  Safety clause.  The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.