(a) Assignment of responsibility.

1. (1) When a student with a disability is placed in a residential treatment facility for educational purposes by a school district, the placing school district remains responsible for procedural safeguards and the provision of FAPE.
2. (2) When a student with a disability is unilaterally placed in a residential facility for educational purposes by a parent or agent other than the school district, the parent may petition the school district where the student permanently resides (home school district, usually that of the student’s parent or guardian) for the provision of procedural safeguards and FAPE.
3. (3) When a child with a disability is a ward of the state and is placed in a residential treatment facility outside the boundaries of the State of Arkansas, the Department of Education is responsible for procedural safeguards and FAPE.

(c) Assignment of costs.

1. (1) The Division of Elementary and Secondary Education, a public school district, or an open-enrollment charter school shall not be liable for any educational costs or other related costs associated with the placement of a juvenile in an out-of-state residential or inpatient facility for any care and treatment, including psychiatric treatment, unless:

   1. (A) At the time of placement:

(i) The juvenile qualifies as disabled under the Individuals with Disabilities Education Act, 20 U.S.C. § 1400 et seq.;

1. (ii) Payment is required under the Individuals with Disabilities Education Act; and

   1. (iii) The juvenile’s physician determines that the out-of-state placement is medically necessary and is the most appropriate placement available;
   2. (B) The Department of Education authorizes public payment for educational costs based on a determination that the educational program and facilities are appropriate for the juvenile and the division has approved the facility's education program;

   3. (C)

      1. (i) Each program authorization precedes the placement.
      2. (ii) If the program is not authorized prior to placement, the department, public school districts, or open-enrollment charter schools shall not be responsible for education or other related costs, nor shall they be subject to any order to pay for educational or other related costs; and
   4. (D) The out-of-state residential or inpatient facility is located within a state that borders Arkansas.
2. (2) Nothing in this section shall be construed to require payment by the division, a public school district, or an open-enrollment charter school for education costs and other related costs associated with the placement of a juvenile in an out-of-state residential or inpatient facility for any care or treatment, including psychiatric treatment, prior to April 7, 2005.
3. (3) For identified students with disabilities, those costs defined as being educational in accordance with the Individuals with Disabilities Education Act will be borne by the district/agency responsible for provision of procedural safeguards and FAPE.

4. (4) All other costs will be borne by either:

   1. (A) The Department of Human Services;
   2. (B) Medicaid;
   3. (C) Private insurance;
   4. (D) The parent; or
   5. (E) Any combination thereof.

5. (5) The liability of the division for the educational costs or other related costs for a student placed in a residential facility by a parent or agent other than the school district shall be limited to the lesser of the:

   1. (A) Reimbursement rate established by the division for a juvenile placed in a residential or inpatient facility; or

   2. (B) Normal and customary educational cost reimbursement rate of the state in which a juvenile is placed in an out-of-state residential or inpatient facility as determined by the division.

      1. (d) Funding.

6. (1)

   1. (A) A school district may request reimbursement for the educational costs of a student with disabilities placed in an approved residential treatment facility located outside the boundaries of Arkansas.
   2. (B) Reimbursement may be used to fund the cost of such placement incurred by a school district.
7. (2) When requests for reimbursement exceed the amount of funds available, the reimbursement will be prorated.

(e) Extended school year services (ESY).

1. (1) Not all students with disabilities receiving educational services in residential placement will be eligible for or in need of ESY services.
2. (2) Determination of student eligibility for ESY services is made by the resident school district or agency based on the rules governing ESY in 6 CAR § 130-1901 et seq.