DAR File No. 43658

Education, Administration

Rule R277-417

Prohibiting LEAs and Third Party Providers from Offering Incentives or Disbursement for Enrollment or Participation

Notice of Proposed Rule

(Amendment)

DAR File No.: 43658
Filed: 04/15/2019 05:33:13 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section R277-417-4 was moved into its own rule, R277-115, regarding local education agency (LEA) supervision and monitoring of contracts. Based on the Utah State Board of Education's (Board) approval of Rule R277-115, the changes in Rule R277-417 are necessary.

Summary of the rule or change:

Rule R277-417 is being amended to remove language referencing LEAs working with third party providers and eliminating Section R277-417-4 from this rule to create Rule R277-115.

Statutory or constitutional authorization for this rule:

• Article X Section 3
• Subsection 53E-3-401(4)

Anticipated cost or savings to:

the state budget:

These rule changes are not expected to have a fiscal impact on state government revenues or expenditures. Section R277-417-4, which is marked for removal, was moved to its own rule, R277-115. The remainder of this rule is intact except for the addition of a definition for an educational good or service. Thus, there is no fiscal impact to the state from these changes.

local governments:

These rule changes are not expected to have a fiscal impact on local governments' revenues or expenditures. Section R277-417-4, which is marked for removal, was moved to its own rule, R277-115. The remainder of this rule is intact except for the addition of a definition for an educational good or service. Thus, there is no fiscal impact to local governments from these changes.

small businesses:

These rule changes are not expected to have any fiscal impact on small businesses' revenues or expenditures. Section R277-417-4, which is marked for removal, was moved to its own rule, R277-115. The remainder of this rule is intact except for the addition of a definition for an educational good or service. Thus, there is no fiscal impact to small businesses from these changes.

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

These rule changes are not expected to have any fiscal impact on persons other than small businesses', businesses', or local government entities' revenues or expenditures. Section R277-417-4, which is marked for removal, was moved to its own rule, R277-115. The remainder of this rule is intact except for the addition of a definition for an educational good or service. Thus, there is no fiscal impact to other individuals from these changes.

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). These rule changes have 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.

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 angie.stallings@schools.utah.gov

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:

05/31/2019

This rule may become effective on:

06/07/2019

Authorized by:

Angela Stallings, Deputy Superintendent of Policy

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). Thus, these rule changes are not expected to have any fiscal impact on non-small businesses' revenue or expenditures because there are no applicable non-small businesses and it does not require any expenditures of or generate revenues for non-small businesses.

 

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

 

 

R277. Education, Administration.

R277-417. Prohibiting LEAs and Third Party Providers from Offering Incentives or 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) 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.

(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.

(1)(a) "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) "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.

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

[(2)](3) "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.

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

[(4)](5) "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)](6) "Third party provider" means a third party who provides an educational good or service[s] on behalf of an LEA.

 

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

(1) 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) An LEA or third party provider may not use public funds to provide a 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 provided by:

(i) an employee of the LEA; or

(ii) a third party provider who meets all of the requirements of [R277-417-4]R277-115;

(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 to a student if the uniforms, technology devices, curriculum, or materials and supplies 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 Section 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 R277-407-8[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.

 

[ 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: students, enrollment, incentives

Date of Enactment or Last Substantive Amendment: [March 14, 2017]2019

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