No. 41188 (Amendment): Rule R277-417. Prohibiting LEAs and Third Party Providers from Offering Incentives or Reimbursements for Enrollment or Participation

(Amendment)

DAR File No.: 41188
Filed: 01/17/2017 03:41:03 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is amended to provide greater clarity to local education agencies (LEAs) on prohibited uses of state funding for incentives and certain disbursements to parents and students.

Summary of the rule or change:

The amendments to this rule provide changes to definitions; add and remove language for LEA or third party provider's use of public funds for incentives and disbursements; and provide procedures for LEAs that contract with third party providers for provision of educational services.

Statutory or constitutional authorization for this rule:

• Art X, Sec 3
• Section 53A-1-401

Anticipated cost or savings to:

the state budget:

The amendments to this rule provide greater clarity to LEAs on prohibited uses of state funding for incentives and certain disbursements to parents and students, which likely will not result in a cost or savings to the state budget.

local governments:

The amendments to this rule provide greater clarity to LEAs prohibited uses of state funding for incentives and certain disbursements to parents and students, which likely will not result in a cost or savings to local government.

small businesses:

The amendments to this rule provide greater clarity to LEAs on prohibited uses of state funding for incentives and certain disbursements to parents and students, which likely will not result in a cost or savings to small businesses.

persons other than small businesses, businesses, or local governmental entities:

The amendments to this rule provide greater clarity to LEAs on prohibited uses of state funding for incentives and certain disbursements to parents and students, which likely will not result in a cost or savings to persons other than small businesses, businesses, or local government entities.

Compliance costs for affected persons:

The amendments to this rule provide greater clarity to LEAs on prohibited uses of state funding for incentives and certain disbursements to parents and students, which likely will not result in any compliance costs for affected persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

To the best of my knowledge, there should be no fiscal impact on businesses resulting from the amendments to this rule.

Sydnee Dickson, State Superintendent

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Education
Administration
250 E 500 S
SALT LAKE CITY, UT 84111-3272

Direct questions regarding this rule to:

• Angela Stallings at the above address, by phone at 801-538-7656, by FAX at 801-538-7768, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/03/2017

This rule may become effective on:

03/10/2017

Authorized by:

Angela Stallings, Deputy Superintendent, Policy and Communication

RULE TEXT

R277. Education, Administration.

R277-417. Prohibiting LEAs and Third Party Providers from Offering Incentives or [Reimbursements]Disbursement for Enrollment or Participation.

R277-417-1. Authority and Purpose.

(1) This rule is authorized by:

(a) Utah Constitution Article X, Section 3, which vests general control and supervision over public education in the Board; and

(b) S[ubs]ection 53A-1-401[(3)], which allows the Board to [adopt]make rules [in accordance with its responsibilities]to execute the Board's duties and responsibilities under the Utah Constitution and state law.

(2) The purpose of this rule is :

(a) to provide standards and procedures for prohibiting LEAs and third party providers from offering incentives for student enrollment[.]; and

(b) to provide standards for an LEA working with a third party provider to ensure the third party provider complies with this R277-417.

 

R277-417-2. Definitions.

([3]1)(a) "[Reimbursement]Disbursement" means the payment of money or provision of other item of value greater than $10 , per school year, offered as payment or compensation to a student or to a parent or guardian for:

(i) a student's enrollment in an LEA; or

(ii) a student's participation in an LEA's program.

(b) "[Reimbursement]Disbursement" does not include a reimbursement paid by an LEA to a student, parent or guardian, for an expenditure incurred by the student, parent or guardian on behalf of the LEA if:

(i) the expenditure is for an item that will be the property of the LEA; and

(ii) the expenditure was preauthorized by the LEA , as evidenced by preauthorization documentation.

([1]2) "Incentive" means one of the following given to a student or to the student's parent or guardian by an LEA or by a third party provider as a condition of the student's enrollment in an LEA or specific program for any length of time, during any school year:

(a) money greater than $10; or

(b) an item of value greater than $10.

([2]3) "Program" means a program within a school that is designed to accomplish a predetermined curricular objective or set of objectives.

(4) "Section 504 accommodation plan" required by Section 504 of the Rehabilitation Act of 1973, means a plan designed to accommodate an individual who has been determined, as a result of an evaluation, to have a physical or mental impairment that substantially limits one or more major life activities.

(5) "Third party provider" means a third party who provides educational services on behalf of an LEA.

 

R277-417-3. LEA and Third Party Provider Use of Public Funds for Incentives and [Reimbursements]Disbursement.

(1) [Except as provided in Subsection (3), a]An LEA or a third party provider may not use public funds, as defined under Subsection 51-7-3(26), to provide the following to a student, parent or guardian, individual, or group of individuals:

(a) an incentive for a student's:

(i) enrollment in an LEA; or

(ii) participation in an LEA's program; or

(b) a referral bonus for a student's:

(i) enrollment in an LEA; or

(ii) participation in an LEA's program.

(2) [Except as provided in Subsection (3), an]An LEA or third party provider may not use public funds to provide a [reimbursement]disbursement to a student or the student's parent or guardian for:

(a) curriculum exclusively selected by a parent;

(b) instruction not provided by the LEA;

(c) private lessons or classes not [managed or facilitated by the LEA;]provided by:

(i) an employee of the LEA; or

(ii) a third party provider who meets all of the requirements of R277-417-4;

(d) technology devices exclusively selected by a parent; or

(e) other educational expense exclusively selected by a parent.

(3) An LEA may use public funds to provide:

(a) uniforms, technology devices, curriculum, or materials and supplies[, or instructional services] to a student if the uniforms, technology devices, curriculum, or materials and supplies[, or instructional services] are:

(i) available to all students enrolled in the LEA or program within the LEA; or

(ii) authorized by the student's college and career readiness plan, IEP, or 504 accommodation plan; or

(b) internet access for instructional purposes to a student:

(i) in kindergarten through grade 6; or

(ii) in grade 7 through grade 12 if:

(A) the internet access is provided in accordance with the fee waiver policy requirements of Section R277-407-6; or

(B) failure to provide the internet access will cause economic hardship on the student or parent.

(4) An LEA or third party provider shall ensure that equipment purchased or leased by the LEA or third party provider remains the property of the LEA and is subject to the LEA's asset policies if:

(a) the LEA or third party provider purchases equipment; and

(b) provides the equipment to a student or to the student's parent or guardian.

[(5) An LEA shall establish monitoring procedures to ensure that a third party provider who provides educational services to a student on behalf of the LEA complies with the provisions of this rule.

(6) The Board or the Superintendent may require an LEA to repay public funds to the Superintendent if:

(a) an LEA or an LEA's third party provider fails to comply with the provisions of this rule; and

(b) the repayment is made in accordance with the procedures established in Rule R277-114.]

 

R277-417-4. Third Party Provider Provision of Educational Services.

(1) An LEA that contracts with a third party provider to provide services on behalf of the LEA shall:

(a) establish monitoring and compliance procedures to ensure that a third party provider who provides educational services to a student on behalf of the LEA complies with the provisions of this rule;

(b) develop a written monitoring plan to supervise the activities and services provided by the third party provider;

(c) ensure the third party provider is complying with:

(i) federal law;

(ii) state law; and

(iii) Board rules;

(d) monitor and supervise all activities of the third party provider related to services provided by the third party provider to the LEA; and

(e) maintain documentation of the LEA's supervisory activities consistent with the LEA's administrative records retention schedule.

(2) An LEA shall:

(a) verify the accuracy and validity of a student's enrollment verification data, prior to enrolling a student in the LEA; and

(b) provide a student and the student's parent or guardian with notification of the student's enrollment in a school or program within the LEA.

(3) The Board or the Superintendent may require an LEA to repay public funds to the Superintendent if:

(a) the LEA or the LEA's third party provider fails to comply with the provisions of this rule; and

(b) the repayment is made in accordance with the procedures established in R277-114.

 

KEY: student s , enrollment, incentives

Date of Enactment or Last Substantive Amendment: [November 23, 2015]2017

Authorizing, and Implemented or Interpreted Law: Art X Sec 3; 53A-1-401[(3)]

 

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