No. 43619 (New Rule): Rule R277-115. LEA Supervision and Monitoring Requirements of Third Party Providers and Contracts

(New Rule)

DAR File No.: 43619
Filed: 04/01/2019 08:06:21 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

In the October Law and Licensing Committee meeting, the Committee reviewed Utah State Board of Education (Board) Rule R277-417 regarding local education agencies (LEAs) requirements to supervise and monitor third party providers, and requested Section R277-417-4 be moved into its own rule regarding LEA supervision and monitoring of contracts to provide assurance regarding compliance.

Summary of the rule or change:

This rule is established from parts of Rule R277-417 dealing with LEAs supervision and monitoring of contracts to provide assurance regarding compliance that are being moved into their own rule (R277-115). This rule is focused on LEAs and third party providers. This rule clarifies that LEA contracts with third party providers must include language whereby the third party provider shall provide, upon request of the LEA, information necessary for the LEA to verify that the educational good or service is in compliance with statute and Board rule. This requirement adds specificity for compliance of third party providers, but LEAs were already required to ensure compliance so the only substantive change may be additional language in contracts between LEAs and third party providers.

Statutory or constitutional authorization for this rule:

• Subsection 53E-3-401(10)
• Subsection 53E-3-401(4)

Anticipated cost or savings to:

the state budget:

This new rule will not have a fiscal impact on state government revenues or expenditures. Any state responsibility within this rule already was in place in Rule R277-417. For these reasons, the establishment of this rule will not have a fiscal impact to the state.

local governments:

This new rule will not have a fiscal impact on local governments' revenues or expenditures. This rule clarifies that LEA contracts with third party providers must include language whereby the third party provider shall provide, upon request of the LEA, information necessary for the LEA to verify that the educational good or service is in compliance with statute and Board rule. This requirement adds specificity for compliance, but LEAs were already required to ensure compliance so the only substantive change may be additional language in contracts between LEAs and third party providers.

small businesses:

This new rule will not have a fiscal impact on small businesses' revenues or expenditures. This rule clarifies that LEA contracts with third party providers must include language whereby the third party provider shall provide, upon request of the LEA, information necessary for the LEA to verify that the educational good or service is in compliance with statute and Board rule. This requirement adds specificity for compliance of third party providers, but LEAs were already required to ensure compliance so the only substantive change may be additional language in contracts between LEAs and third party providers.

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

This new rule will not have a fiscal impact on other individuals� revenues or expenditures. This rule clarifies that LEA contracts with third party providers must include language whereby the third party provider shall provide, upon request of the LEA, information necessary for the LEA to verify that the educational good or service is in compliance with statute and Board rule. This requirement adds specificity for compliance of third party providers, but LEAs were already required to ensure compliance so the only substantive change may be additional language in contracts between LEAs and third party providers.

Compliance costs for affected persons:

There are no compliance costs for affected persons.

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

There are 1,241 entities with a NAICS code 611110 (Elementary and Secondary Schools) operating in Utah according to a "Firm Find Data" search through Utah's Department of Workforce Services. Most of the entities in the list are schools including public schools, charter schools, and private schools. Of the 1,241 entities, there are 15 private businesses, all of which are small businesses (there are no non-small businesses with a NAICS code 611110). This proposed rule has no fiscal impact on LEAs and will not have a fiscal impact on non-small or small businesses. The Program Analyst at the Utah State Board of Education, Jill Curry, has reviewed and approved this fiscal analysis. Utah State Board of Education, Natalie Grange, has reviewed and approved this fiscal analysis.

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 801-538-7550, 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:

05/15/2019

This rule may become effective on:

05/22/2019

Authorized by:

Angela Stallings, Deputy Superintendent of Policy

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$0

$0

$0

Total Fiscal Costs:

$0

$0

$0

Fiscal Benefits

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$0

$0

$0

Net Fiscal Benefits:

$0

$0

$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non - Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

There are 1,241 entities with a NAICS code 611110 (Elementary and Secondary Schools) operating in Utah according to a "Firm Find Data" search through Utah's Department of Workforce Services. Most of the entities in the list are schools including public schools, charter schools, and private schools. Of the 1,241 entities, there are 15 private businesses, all of which are small businesses (there are no non-small businesses with a NAICS code 611110). This new rule has no fiscal impact on local education agencies and will not have a fiscal impact on non-small or small businesses.

 

The Program Analyst at the Utah State Board of Education, Jill Curry, has reviewed and approved this fiscal analysis.

 

 

R277. Education, Administration.

R277-115. LEA Supervision and Monitoring Requirements of Third Party Providers and Contracts.

R277-115-1. Authority and Purpose.

(1) This rule is authorized by:

(a) Subsection 53E-3-401(4), which allows the Board to make rules to execute the Board's duties and responsibilities under the Utah Constitution and state law; and

(b) Subsection 53E-3-401(10), which allows the Board to require an LEA to require in a contract with a third party provider that the third party provider shall provide, upon request of the LEA, information necessary for the LEA to verify that the educational good or service complies with:

(i) Titles 53E, 53F, and 53G; and

(ii) Board rule.

(2) The purpose of this rule is:

(a) to provide standards for an LEA working with a third party provider to ensure the third party provider complies with applicable law.

 

R277-115-2. Definitions.

(1) "Educational good or service" means the same as that term is defined in Section 53E-3-401.

(2) "Third party provider" means a third party who provides an educational good or service on behalf of an LEA.

 

R277-115-3. Third Party Provider Provision of Services.

(1) An LEA that contracts with a third party provider to provide an educational good or service on behalf of the LEA shall:

(a) require in the LEA's contract with a third party provider that the third party provider shall provide, upon request of the LEA, information necessary for the LEA to verify that the educational good or service complies with:

(i) Titles 53E, 53F, and 53G; and

(ii) Board rule;

(b) 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;

(c) develop a written monitoring plan to supervise the educational good or service provided by the third party provider;

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

(i) federal law;

(ii) state law; and

(iii) Board rules;

(e) monitor and supervise all activities of the third party provider related to the educational good or service provided by the third party provider to the LEA; and

(f) 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 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: third party providers, contracts, monitoring

Date of Enactment or Last Substantive Amendment: 2019

Authorizing, and Implemented or Interpreted Law: Art X Sec 3; 53E-3-401(4) and (10)

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