Establishes timelines for review and approval by Commissioner of Education of annual certified audits submitted by approved private schools for students with disabilities.

A1646 AED Statement 5/7/26

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.