It is the intent of the Legislature that the role of a
nonpublic, nonsectarian school or agency shall be maintained and
continued as an alternative special education service available to a
local educational agency and parents.
   (a) The master contract for nonpublic, nonsectarian school or
agency services shall be developed in accordance with the following
provisions:
   (1) The master contract shall specify the general administrative
and financial agreements, including teacher-to-pupil ratios, between
the nonpublic, nonsectarian school or agency and the local
educational agency to provide the special education and designated
instruction and services, as well as transportation specified in each
pupil's individualized education program. The administrative
provisions of the contract also shall include procedures for
recordkeeping and documentation, and the maintenance of school
records by the contracting local educational agency to ensure that
appropriate high school graduation credit is received by each pupil.
The contract may allow for partial or full-time attendance at the
nonpublic, nonsectarian school.
   (2) (A) The master contract shall include an individual services
agreement for each pupil placed by a local educational agency that
will be negotiated for the length of time for which nonpublic,
nonsectarian school or agency special education and designated
instruction and services are specified in the pupil's individualized
education program.
   (B) The master contract shall include a description of the process
being utilized by the local educational agency to oversee and
evaluate placements in nonpublic, nonsectarian schools, as required
by federal law. This description shall include a method for
evaluating whether each pupil is making appropriate educational
progress. At least once every year, the local educational agency
shall do all of the following and, to the extent possible, the
following shall be conducted as part of the development and provision
of an individualized education program:
   (i) Evaluate the educational progress of each pupil placed in a
nonpublic, nonsectarian school, including all state assessment
results pursuant to the requirements of Section 52052.
   (ii) Consider whether or not the needs of the pupil continue to be
best met at the nonpublic, nonsectarian school and whether changes
to the individualized education program of the pupil are necessary,
including whether the pupil may be transitioned to a public school
setting. This consideration shall be made at the meeting required by
subdivision (d) of Section 56343.
   (C) In the case of a nonpublic, nonsectarian school that is owned,
operated by, or associated with a licensed children's institution,
the master contract shall include a method for evaluating whether the
nonpublic, nonsectarian school is in compliance with the mandate set
forth in Section 56366.9 of this code and subdivision (b) of Section
1501.1 of the Health and Safety Code.
   (3) Changes in educational instruction, services, or placement
provided under contract may only be made on the basis of revisions to
a pupil's individualized education program.
   At any time during the term of the contract or individual services
agreement, the parent, the nonpublic, nonsectarian school or agency,
or the local educational agency may request a review of a pupil's
individualized education program by the individualized education
program team. Changes in the administrative or financial agreements
of the master contract that do not alter the individual services
agreement that outlines each pupil's educational instruction,
services, or placement may be made at any time during the term of the
contract as mutually agreed by the nonpublic, nonsectarian school or
agency and the local educational agency.
   (4) The master contract or individual services agreement may be
terminated for cause. The cause shall not be the availability of a
public class initiated during the period of the contract unless the
parent agrees to the transfer of the pupil to a public school
program. To terminate the contract either party shall give 20 days'
notice.
   (5) The nonpublic, nonsectarian school or agency shall provide all
services specified in an individualized education program, unless
the nonpublic, nonsectarian school or agency and the local
educational agency agree otherwise in the contract or individual
services agreement.
   (6) Related services provided pursuant to a nonpublic,
nonsectarian agency master contract shall only be provided during the
period of a pupil's regular or extended school year program, or
both, unless otherwise specified by the pupil's individualized
education program.
   (7) The nonpublic, nonsectarian school or agency shall report
attendance of pupils receiving special education and designated
instruction and services, as defined by Section 46307, for purposes
of submitting a warrant for tuition to each contracting local
educational agency.
   (8) (A) A nonpublic, nonsectarian school is subject to the
alternative accountability system developed pursuant to Section 52052
in the same manner as public schools and each pupil placed in the
nonpublic, nonsectarian school by a local educational agency shall be
tested by qualified staff of the nonpublic, nonsectarian school in
accordance with that accountability program. The test results shall
be reported by the nonpublic, nonsectarian school to the department.
   (B) Beginning with the 2006-07 school year testing cycle, each
nonpublic, nonsectarian school shall determine its STAR testing
period subject to subdivisions (b) and (c) of Section 60640. The
nonpublic, nonsectarian school shall determine this period based on
completion of 85 percent of the instructional year at that nonpublic,
nonsectarian school, plus and minus 10 days, resulting in a 21-day
period. Each nonpublic, nonsectarian school shall notify the district
of residence of a pupil enrolled in the school of its testing
period. Staff at the nonpublic, nonsectarian school who administer
the assessments shall attend the regular testing training sessions
provided by the district of residence. If staff from a nonpublic,
nonsectarian school have received training from one local educational
agency, that training will be sufficient for all local educational
agencies that send pupils to the nonpublic, nonsectarian school. The
district of residence shall order testing materials for its pupils
that have been placed in the nonpublic, nonsectarian school. The
board shall adopt regulations to facilitate the distribution of and
collection of testing materials.
   (9) With respect to a nonpublic, nonsectarian school, the school
shall prepare a school accountability report card in accordance with
Section 33126.
   (b) The master contract or individual services agreement shall not
include special education transportation provided through the use of
services or equipment owned, leased, or contracted by a local
educational agency for pupils enrolled in the nonpublic, nonsectarian
school or agency unless provided directly or subcontracted by that
nonpublic, nonsectarian school or agency.
   The superintendent shall withhold 20 percent of the amount
apportioned to a local educational agency for costs related to the
provision of nonpublic, nonsectarian school or agency placements if
the superintendent finds that the local educational agency is in
noncompliance with this subdivision. This amount shall be withheld
from the apportionments in the fiscal year following the
superintendent's finding of noncompliance. The superintendent shall
take other appropriate actions to prevent noncompliant practices from
occurring and report to the Legislature on those actions.
   (c) (1) If a pupil is enrolled in a nonpublic, nonsectarian school
or agency with the approval of the local educational agency prior to
agreement to a contract or individual services agreement, the local
educational agency shall issue a warrant, upon submission of an
attendance report and claim, for an amount equal to the number of
creditable days of attendance at the per diem tuition rate agreed
upon prior to the enrollment of the pupil. This provision shall be
allowed for 90 days during which time the contract shall be
consummated.
   (2) If after 60 days the master contract or individual services
agreement has not been finalized as prescribed in paragraph (1) of
subdivision (a), either party may appeal to the county superintendent
of schools, if the county superintendent is not participating in the
local plan involved in the nonpublic, nonsectarian school or agency
contract, or the superintendent, if the county superintendent is
participating in the local plan involved in the contract, to
negotiate the contract. Within 30 days of receipt of this appeal, the
county superintendent or the superintendent, or his or her designee,
shall mediate the formulation of a contract, which shall be binding
upon both parties.
   (d) A master contract for special education and related services
provided by a nonpublic, nonsectarian school or agency may not be
authorized under this part, unless the school or agency has been
certified as meeting those standards relating to the required special
education and specified related services and facilities for
individuals with exceptional needs. The certification shall result in
the school or agency receiving approval to educate pupils under this
part for a period no longer than 18 months from the date of the
initial approval.
   (e) By September 30, 1998, the procedures, methods, and
regulations for the purposes of contracting for nonpublic,
nonsectarian school and agency services pursuant to this section and
for reimbursement pursuant to Sections 56836.16 and 56836.20 shall be
developed by the superintendent in consultation with statewide
organizations representing providers of special education and
designated instruction and services. The regulations shall be
established by rules and regulations issued by the board.