ASSEMBLY EDUCATION COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1646

with committee amendments

STATE OF NEW JERSEY

DATED:  MAY 7, 2026

      The Assembly Education Committee reports favorably and with committee amendments Assembly Bill No. 1646.

      As amended, the bill provides a timeline within which the Commissioner of Education must issue any adverse finding, adjustment, or penalty regarding an audit submitted by an approved private school for students with disabilities (APSSD).  Many of New Jersey’s most vulnerable students receive the educational program and services required in their individual education program at APSSDs as part of the statutorily created continuum of services established pursuant to N.J.S.18A:46-14.

      Pursuant to regulation, APSSDs are required to submit annually to the Commissioner of Education an independent audit as part of the tuition setting process and accountability structure.  It is not uncommon for the commissioner to take 20 years or more to complete the review of the submitted annual audit and finalize the tuition rate charged by the APSSDs to sending school districts for that school year.  This inordinate delay creates havoc in the budgeting process for both the APSSDs and the sending school districts.  There is also a manifest unfairness in holding APSSDs responsible for audits that were completed so far in the past, because it is difficult for the APSSDs to defend themselves against the audit review findings under these circumstances.  Basic fairness to the APSSDs requires timely notice of the audit review findings and a meaningful chance to be heard and defend against the finding.  There is also a concern that an audit finding by the commissioner regarding an audit completed many years ago will be repeated in each succeeding year as a continuing finding and thereby compound the financial impact of any disagreement, error, or omission.

      The bill provides that, for audits submitted for any school year ending after the effective date of the bill, the action of the commissioner must be within seven years of the date of the submission of that audit.  For audits submitted for any school year ending prior to the effective date of the bill, the action of the commissioner must be within seven years of the date of the submission of that audit or three years following the effective date of the bill, whichever is the later date.

      This bill was pre-filed for introduction in the 2026-2027 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The committee amended the bill to provide that, in the case of audits submitted for any school year ending prior to the effective date of the bill, the action of the commissioner must be within seven years of the date of the submission of that audit or three years, as opposed to two years, following the effective date of the bill, whichever is the later date.