Bill Summary: HB 5433 - Special Education Excess Cost Cooperative

• Establishes a not-for-profit captive insurance company governed by a 17-member board of directors including state officials, municipal representatives, and special education stakeholders to provide reimbursement for excess special education costs to local and regional school boards.

• Reimburses school boards for special education costs exceeding 4.5 times their net current expenditures per resident student, effective fiscal year ending June 30, 2022, with all funding directed through the captive insurance company rather than directly from the state.

• Requires towns to make annual "community contribution" payments to the captive insurance company, calculated by the board based on resident student population, special education needs, and ability to pay, with ineligible towns forfeited state reimbursement.

• Establishes eight municipal member groups based on population and median household income, each electing a representative to the board of directors to ensure local governance participation.

• Limits administrative and operational costs to not more than 1% of allocated funds, imposes state ethics requirements on employees and agents, and requires annual reporting to legislative committees on operation and financial condition.