Mont. Code Ann. § 20-7-435

(1) It is the intent of the legislature that eligible children in receiving inpatient in-state treatment children's psychiatric hospitals and residential treatment of facilities a serious emotional disturbance at in-state qualifying facilities be provided with an appropriate educational opportunity in a cost-effective manner, including the provision of a free appropriate public education for an eligible child with manner. The legislature further intends a disability that is consistent with state standards for the provision in-state qualifying facilities prioritize treatment of special education and related services. General education programs for eligible children without disabilities must be Montana residents over residents of other states. provided in accordance with the requirements for a nonpublic school under the provisions of 20-5-109.

(2) The superintendent of public instruction may contract with a qualifying an facility in-state children's psychiatric hospital or residential treatment facility for provision of an educational program for an eligible child in the hospital or treatment qualifying facility. The contract between the superintendent of public instruction and a qualifying facility must include a provision requiring the qualifying facility to provide educational data and regular reports about the academic status and academic progress being made by each eligible child at a qualifying facility.

(3) Whenever the superintendent of public instruction contracts with an in-state children's psychiatric hospital or residential treatment facility for provision of an educational program for an eligible child in the children's psychiatric hospital or residential treatment facility, the superintendent of public instruction shall:

(3) (a) ensure Whenever the provision superintendent of a public free appropriate public education and instruction contracts an with education that is consistent with the requirements for a a nonpublic school in 20-5-109 qualifying facility for children attending provision of an educational program for an eligible child, the hospital or residential treatment facility; superintendent of public instruction shall establish a daily rate per eligible child for each qualifying facility that reflects actual documented costs of providing an appropriate educational opportunity at that facility and that excludes the cost of services that are eligible for reimbursement under any provision of state or federal law or an insurance policy.

(b) negotiate For each eligible child and from appropriations provided for the approval purposes of allowable costs under this section, the provisions superintendent of 20-7-431 for allowable costs for providing special education, including public instruction shall pay the costs of retirement benefits, federal social security system contributions, and unemployment compensation insurance; qualifying facility the daily rate under subsection (3)(a) minus

(c) from appropriations provided for this purpose, fund any approved allowable costs under this section, with For each eligible child, the exception eligible child's school district of services for which reimbursement is made under any provision residence shall pay the qualifying facility a daily rate of state or federal law or an insurance policy; 40% of the tuition per-ANB amount as defined in 20-5-323 divided by 180 in a manner prescribed by the superintendent of public instruction. The district of residence shall finance the tuition amount from the levy authorized to support the district tuition fund or from the district's general fund or any other legally available fund in the discretion of the trustees.

(d) provide funding for allowable costs according to a proration based on average daily membership. An eligible child whose appropriate educational opportunity is provided under subsection (5)(a) or (5)(b) may not receive funding under this subsection (3).

(e) In preparing and submitting an agency budget pursuant to 17-7-111 and 17-7-112, the superintendent of public instruction shall include a request for funding this section based on the daily rate for each facility as determined under subsection (3)(a). If the money appropriated for the payments to qualifying facilities under this section is not sufficient, the superintendent of public instruction shall request the state budget director to submit a request for a supplemental appropriation in the second year of the biennium that is sufficient to complete the funding of the payments.

(4) A supplemental education fee or tuition tuition, beyond those authorized under this section, may not be charged for an eligible Montana child who receives inpatient treatment and an education under contract with an in-state children's psychiatric hospital or residential treatment facility. facility under subsection (3) or as provided under subsection (5).

(5) If a children's psychiatric hospital or residential treatment qualifying facility fails to provide an education in accordance with 20-5-109 or a free appropriate public education under educational opportunity the for provisions of this part for an eligible child at the children's psychiatric hospital or facility residential treatment facility or fails to negotiate a contract under the provisions of subsection (2), the superintendent of public instruction shall negotiate with shall, from appropriations provided for the school district in which purposes of this section, choose either of the children's psychiatric hospital or residential treatment facility is located for the supervision and implementation of following two options: an appropriate educational program that is consistent with accreditation standards provided for in 20-7-111 and with the provisions of 20-7-402 for children attending the children's psychiatric hospital or residential treatment facility. The amount negotiated with the school district must include all education and related services costs that may be negotiated under the provisions of subsection (3) and all education and related services costs necessary to fulfill the requirements of providing the child with an education.

(a) provide for an appropriate educational opportunity for the eligible child utilizing qualified specialists who are employees of the office of public instruction or under contract with the office of public instruction for the purposes of this section. The eligible child's district of residence shall reimburse the office of public instruction at the daily rate established in subsection (3)(c). The district of residence may finance the reimbursement from the levy authorized to support the district tuition fund.

(b) negotiate with the school district in which the qualifying facility is located for the supervision and implementation of an appropriate educational opportunity for eligible children attending the facility. The amount to be paid to the district of attendance by the office of public instruction and the amount to be paid by the eligible child's district of residence are determined in the same manner as provided in 20-5-323 and 20-5-324 for out-of-district attendance agreements approved under 20-5-321(1)(d) and (1)(e).

(6) Funds provided to a district under this section, including funds received under the provisions of 20-7-420:

(a) must be deposited in the miscellaneous programs fund of the district that provides the education program for an eligible child, regardless of the age or grade placement of the child who is served under a negotiated contract; and

(b) are not subject to the budget limitations in 20-9-308.

(7) The superintendent of public instruction shall report to the education interim budget committee and the education interim committee in accordance with 5-11-210 no later than September 30 of even-numbered years on the implementation of this section and an analysis that supports each daily rate. The report must include:

(a) the daily rate calculated for each qualifying facility as described in subsection (3)(a); and

(b) an evaluation of education programs at qualifying facilities funded under this section.

Funding of educational programs at in-state for children's psychiatric hospitals and in-state eligible residential treatment children programs for eligible children receiving