No. 39784 (Amendment): Rule R277-417. Prohibiting LEAs and Third Party Providers from Offering Incentives or Reimbursements for Enrollment or Participation

(Amendment)

DAR File No.: 39784
Filed: 09/30/2015 11:08:13 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Rule R277-417 was adopted by the Board effective 07/08/2015. Since that time, staff received additional public comment and identified additional recommended changes. Technical and conforming changes are also provided.

Summary of the rule or change:

The amendments to Rule R277-417 clarify that LEAs and third party providers may use public funds for costs related to curriculum, instruction, private lessons, technology, and other educational services as long as the local education agency (LEA) selects and has oversight of the curriculum, instruction, private lessons, technology, and other educational services. The amendments also include technical and conforming changes throughout the rule.

State statutory or constitutional authorization for this rule:

• Subsection 53A-1-401(3)
• Article X, Section 3

Anticipated cost or savings to:

the state budget:

There is likely no cost or savings to the state budget. The amendments to this rule apply to LEA and third party provider use of public funds for identified educational material and services.

local governments:

There is likely no cost or savings to local government. The amendments provide a list of educational materials and services in which public funds may be used by LEAs and third party providers.

small businesses:

There is likely no cost or savings to small businesses. The amendments to the rule allow LEAs and third party providers to use public funds to provide certain educational material and services to students, as long as the LEA selects and has oversight of the educational material and services.

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

There is likely no cost or savings to persons other than small businesses, businesses, or local government entities. The amendments to this rule allow LEAs and third party providers to purchase educational material and services to use when serving public education students.

Compliance costs for affected persons:

There may be compliance costs to LEAs to repay public funds to the superintendent if an LEA or the LEA's third party provider fails to comply with the provisions of this rule. Costs are very speculative and impossible to determine at this time.

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

To the best of my knowledge, the amendments to this rule will not have a fiscal impact on businesses.

Brad C. Smith, State Superintendent

The full text of this rule may be inspected, during regular business hours, at the Division 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:

11/16/2015

This rule may become effective on:

11/23/2015

Authorized by:

Angela Stallings, Associate Superintendent, Policy and Communication

RULE TEXT

R277. Education, Administration.

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

R277-417-[2]1 . Authority and Purpose.

[A.](1) This rule is authorized [under]by:

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

(b) [by ]S ubsection 53A-1-401(3) , which allows the Board to adopt rules in accordance with its responsibilities.

[B.](2) The purpose of this rule is to provide standards and procedures for prohibiting LEAs and third party providers from offering incentives for student enrollment.

 

R277-417-[1]2 . Definitions.

[A. "Board" means the Utah State Board of Education.

] [B.](1) "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:

([1]a) money greater than $10; or

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

[C. "Individualized Education Program (IEP)" means a written statement for a student with a disability that is developed, reviewed, and revised in accordance with the Utah Special Education Rules and Part B of the Individuals with Disabilities Education Act (IDEA).

D. "LEA" or "local education agency" means a school district or charter school.

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

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

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

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

([2]b) "Reimbursement" 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:

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

([b]ii) the expenditure was authorized by the LEA.

[F.](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.

[G.](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.

[A.](1) Except as provided in [R277-417-3B]Subsection (3), an LEA or a third party provider may not use public funds, as defined under S ubsection 51-7-3(26), to provide the following to a student, parent or guardian, individual, or group of individuals:

([1]a) an incentive for a student's:

([a]i) enrollment in an LEA; or

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

([2]b) a referral bonus for a student's:

([a]i) enrollment in an LEA; or

([b]ii) participation in an LEA's program.

[B. An LEA or third party provider may use public funds to provide an incentive to a student or the student's parent or guardian if the incentive is:

(1) provided to all students enrolled in the LEA; and

(2) part of a school uniform used by the LEA.

] [C.](2) Except as provided in [R277-417-3D]Subsection (3), an LEA or third party provider may not use public funds to provide a reimbursement to a student or the student's parent or guardian for:

([1]a) curriculum selected by a parent;

([2]b) instruction not provided by the LEA;

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

([4]d) technology devices selected by a parent; or

([5]e) other educational expense selected by a parent.

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

(a) uniforms, technology devices, curriculum, materials and supplies, or instructional services to a student if the uniforms, technology devices, curriculum, 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.

[D. An LEA or third party provider may use public funds to provide a reimbursement to a student or the student's parent or guardian if:

(1) the reimbursement is required to be paid or provided pursuant to an IEP or Section 504 accommodation plan that is approved by the LEA;

(2) for a student in Kindergarten through grade 6, the reimbursement is provided to a student's parent or guardian for internet accessibility; or

(3) for a student in grade 7 through grade 12:

(a) the reimbursement is provided to a student or student's parent or guardian for internet access in accordance with the fee waiver policy requirements of R277-407-6; and

(b) failure to provide the reimbursement described in R277-417-3D(3)(a) will cause economic hardship.

] [E.](4) An LEA or third party provider shall ensure that [an item]equipment purchased[, rented,] 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:

([1]a) the LEA or third party provider purchases [an item]equipment; and

([2]b) provides the [item]equipment to a student or to the student's parent or guardian.

[F.](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 [R277-417]this rule.

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

([1]a) an LEA or an LEA's third party provider fails to comply with the provisions of this [R277-417]rule; and

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

 

KEY: student, enrollment, incentives

Date of Enactment or Last Substantive Amendment: [ July 8, ]2015

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

 

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