1 of 1 HOUSE DOCKET, NO. 3864 FILED ON: 1/17/2025 HOUSE . . . . . . . . . . . . . . . No. 670 The Commonwealth of Massachusetts _________________ PRESENTED BY: Alice Hanlon Peisch _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act relative to special education finance. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :DATE ADDED:Alice Hanlon Peisch14th Norfolk1/17/2025 1 of 4 HOUSE DOCKET, NO. 3864 FILED ON: 1/17/2025 HOUSE . . . . . . . . . . . . . . . No. 670 By Representative Peisch of Wellesley, a petition (accompanied by bill, House, No. 670) of Alice Hanlon Peisch relative to special education finance. Education. [SIMILAR MATTER FILED IN PREVIOUS SESSION SEE HOUSE, NO. 547 OF 2023-2024.] The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act relative to special education finance. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1: Section 1B of Chapter 69 of the General Laws, as appearing in the 2022 2Official Edition, is hereby amended by inserting after the seventh paragraph the following 3paragraph:- 4 The board shall annually publish a supplemental report containing student achievement 5data for each approved private special education school or program, provided that such data shall 6include student performance on the statewide assessment system approved by the board under 7section 1I. 8 SECTION 2. Section 8 of chapter 70B of the General Laws, as so appearing, is hereby 9amended by striking out, in line 24, the word “and”. 2 of 4 10 SECTION 3. Said section 8 of said chapter 70B, as so appearing, is hereby further 11amended by inserting in line 28, after the word “districts” the following:- 12 “; and (9) priority shall be given to projects needed in the judgment of said authority to 13create space for in-district special education programs and services” 14 SECTION 4. Section 10 of said chapter 70B, as so appearing, is hereby amended by 15inserting, in line 44, after the sentence ending in the word “construction”, the following new 16sentence:- 17 “The authority shall award incentive points for projects that include spaces for in-district 18special education programs and services, including special education programs and services 19provided by education collaboratives pursuant to section 4E of chapter 40 for public school 20districts within public school buildings.” 21 SECTION 5. Chapter 71B of the General Laws is hereby amended by inserting after 22section 10 the following new section:- 23 Section 10A. Each approved private special education school or program authorized 24under this chapter to provide special education services to children, and that enrolls students 25funded by the commonwealth or its political subdivisions, shall file annual reports with the 26department of elementary and secondary education. Each approved private special education 27school or program shall annually prepare, financial statements, including: (1) a statement of net 28assets; (2) a statement of revenues, expenditures and changes in net assets; and (3) such 29supplemental statements and schedules that may be required by the department. Each school 30shall annually cause an independent audit to be made of its financial statements consistent with 31the generally accepted governmental auditing standards. Each school shall file the audit report 3 of 4 32and any related management letters annually on or before January 1, for the previous fiscal year 33with the department and the state auditor, and shall submit a copy of the audit report and any 34related management letters to each school district that enrolled students in said approved private 35special education school during the period covered by the audit report. 36 The audited financial statements, accompanying notes and schedules shall disclose, but 37not be limited to: (1) transactions between the approved private special education school and any 38related for profit or non-profit organization; (2) transactions or contracts related to the purchase, 39sale or lease of real property; (3) the names, duties and total compensation of the 5 most highly 40compensated employees; (4) the amounts expended on administration and overhead; (5) 41information on programs and services provided by the school, including the cost effectiveness of 42such programs and services; and (6) any other items that may be required by regulation. 43 SECTION 6. The department of early education and care and the department of 44elementary and secondary education may share data only for residential programs approved by 45both departments. 46 SECTION 7. Notwithstanding any general or special law to the contrary, the secretary of 47education shall, in consultation with the department of elementary and secondary education, the 48department of early education and care, and the operational services division, study and make 49recommendations regarding the oversight of Approved Massachusetts Day and Residential 50Private Special Education Programs. 51 The recommendations shall provide information on topics including, but not limited to: 52(1) best practices of licensing, monitoring and providing oversight of Approved Massachusetts 53Day and Residential Private Special Education Programs (Chapter 766 schools); (2) the 4 of 4 54collection of data related to providing appropriate educational programming; (3) the collection of 55data related to providing the most appropriate services to students in chapter 766 schools; (4) 56consideration of the relevant aspects of the statute governing education collaboratives, as defined 57in section 4E of Chapter 40, and their potential application to chapter 766 schools; and (5) the 58collection of data relevant to the structure for congregate care for the students and review of the 59appropriate agency placement policies. 60 In developing recommendations, the secretary of education, the department of elementary 61and secondary education, the department of early education and care, and the operational 62services division shall consult with and solicit input from various persons and groups, including 63but not limited to, the department of developmental services; the division of local services, the 64executive directors of chapter 766 schools of varying size and scope throughout the 65commonwealth; organizations representing individuals with developmental disabilities; district 66directors of special education throughout the commonwealth; organizations representing children 67with disabilities and their parents; and associations representing special education administers 68and other educational administers, school officials, and municipal officials. 69 The secretary of education shall file findings containing recommendations, including 70legislation and regulations necessary to carry out the recommendations, with the clerks of the 71house of representatives and senate not later than 12 months following the passage of this act.