Authority: IC 20-19-2-8; IC 20-19-2-16

Affected: IC 20-19-2; IC 20-35

Sec. 7. (a) A public agency must do the following:

1. (1) Offer services to each student who is:

   1. (A) eligible to receive special education and related services; and
   2. (B) parentally-placed by his or her parent in a nonpublic school within the boundaries of the public agency. Public agencies may use state funds and Part B funds to provide services under this rule.
2. (2) Control and administer Part B funds that are used to provide special education and related services under this rule.

3. (3) Determine the number of parentally-placed nonpublic school students with disabilities attending nonpublic schools located in the public agency. The count:

   1. (A) must be conducted annually on December 1; and
   2. (B) is used to determine the amount of Part B funds that the public agency must spend on providing special education and related services to parentally-placed nonpublic school students with disabilities in the next subsequent school year.
4. (4) Spend a proportionate share of its Part B funds to serve parentally-placed nonpublic school students with disabilities. The proportionate amount of Part B funds must be calculated according the specifications set forth in subsections (b) through (e).

(b) The public agency, in providing special education and related services to students in nonpublic schools, must expend at least an amount that is the same proportion of the public agency total subgrant under 20 U.S.C. 1411(f) as the number of nonpublic school students with disabilities, who are enrolled by their parents in nonpublic schools within its boundaries, is to the total number of students with disabilities of the same age range.

(c) To calculate the proportionate amount of Part B funds specified in subsection (b), the public agency must take the following steps:

1. (1) Using data from the previous calendar year's December 1 count, divide the number of parentally-placed nonpublic school students with disabilities by the total number of students with disabilities (public school and nonpublic school students).
2. (2) The quotient obtained in subdivision (1) is multiplied by the public agency's current total subgrant under 20 U.S.C. 1411(f).
3. (3) The product obtained in subdivision (2) equals the public agency's proportionate amount of Part B funds that must be spent on parentally-placed nonpublic school students.

(d) For students three (3) years of age through five (5) years of age, the public agency, in providing special education and related services to students in nonpublic schools, must expend at least an amount that is the same proportion of the public agency total subgrant under 20 U.S.C. 1419(g) as the number of nonpublic school students with disabilities three (3) years of age through five (5) years of age, who are enrolled by their parents in nonpublic schools within its boundaries, is to the total number of students with disabilities three (3) years of age through five (5) years of age.

(e) To calculate the proportionate amount of Part B funds specified in subsection (d), the public agency must take the following steps:

1. (1) Using data from the previous calendar year's December 1 count, divide the number of parentally-placed students with disabilities three (3) years of age through five (5) years of age, who attend nonpublic schools that meet the definition of an elementary school in 511 IAC 7-32-33, by the total number of students with disabilities three (3) years of age through five (5) years of age (public school and nonpublic school students).
2. (2) The quotient obtained in subdivision (1) is multiplied by the public agency's current total subgrant under 20 U.S.C. 1419(g).
3. (3) The product obtained in subdivision (2) equals the public agency's proportionate amount of Part B funds that must be spent on parentally-placed nonpublic school students three (3) years of age through five (5) years of age who attend nonpublic schools that meet the definition of elementary school in 511 IAC 7-32-33.

(f) A public agency must calculate the proportionate share of Part B funds before designating funds for early intervening services.

(g) State and local funds may supplement, but in no case supplant, the proportionate share of Part B funds required to be expended for parentally-placed nonpublic school students with disabilities under this rule.

(h) If a public agency has not expended all of the proportionate amount of Part B funds described in subsections (b) through (e) by the end of the fiscal year for which the division of special education allocated the funds, the public agency must obligate the remaining funds for special education and related services, including direct services, to parentally-placed nonpublic school students with disabilities during a carryover period of one (1) additional year.

(i) Expenditures for child find activities, including the cost of individual evaluations and reevaluations, shall not be considered in determining whether the public agency has met the proportionate share requirement in this section.

(j) The public agency shall not use the Part B funds to do the following:

1. (1) Fund existing levels of instruction currently provided by the nonpublic school, or otherwise benefit the nonpublic school.
2. (2) Meet the needs of the nonpublic school.
3. (3) Meet the general needs of the students enrolled in the nonpublic school.

4. (4) Fund classes that are organized separately on the basis of school enrollment or religion of the students if the classes:

   1. (A) are at the same site; and
   2. (B) include students enrolled in public schools and students enrolled in nonpublic schools.

(k) The public agency may use Part B funds for the following:

1. (1) To make public school personnel available in places other than public facilities:

   1. (A) to the extent necessary to provide special education and related services to students with disabilities in nonpublic schools; and
   2. (B) if those services are not normally provided by the nonpublic school.

2. (2) To pay for the services of an employee of the nonpublic school to provide special education and related services if the employee performs the services:

   1. (A) outside of the employee's regular hours of duty; and
   2. (B) under public supervision and control.

(Indiana State Board of Education; 511 IAC 7-34-7; filed Jul 14, 2008, 1:24 p.m.: 20080813-IR-511080112FRA; readopted filed Nov 6, 2014, 3:23 p.m.: 20141203-IR-511140382RFA; filed Mar 18, 2019, 2:33 p.m.: 20190417-IR-511180153FRA; readopted filed Dec 1, 2020, 1:48 p.m.: 20201230-IR-511200548RFA; filed Mar 4, 2024, 10:02 a.m.: 20240403-IR-511230504FRA)