(a) Assignment of responsibility.

1. (1) When a nondisabled student is placed in an out-of-state residential treatment facility for educational purposes by a school district, the placing school district remains responsible for educating the student.
2. (2) When a nondisabled student is placed in an out-of-state residential treatment facility for noneducational reasons and the juvenile's physician determines that the out-of-state placement is medically necessary and is the most appropriate placement available, the student’s resident district, as determined by Arkansas Code § 6-18-202, is responsible for educating the student.
3. (3) When a nondisabled student who is a ward of the state is placed in an out-of-state residential treatment facility and the juvenile's physician determines that the out-of-state placement is medically necessary and is the most appropriate placement available, the Department of Education is responsible for educating the student.
4. (4) When a nondisabled student is placed in an out-of-state residential treatment facility for educational purposes by a parent or agent other than the school district, the parent or agent remains responsible for the education of the student.

(b) Procedures for educational management.

1. (1)

   1. (A) Each school district must designate an individual who will be responsible for ensuring compliance with this part.
   2. (B) This may be the district superintendent or a designee.

2. (2)

   1. (A) When a nondisabled student is placed in an out-of-state residential facility, the facility must notify the responsible school district (superintendent or designee) within seven (7) calendar days of the student’s admission.
   2. (B) Failure of the facility to notify the responsible district in a timely fashion may result in loss of reimbursement funding.

3. (3)

   1. (A) The district superintendent or designee shall convene a conference by a review team within seven (7) calendar days of notice by the residential treatment facility that the student is in a residential program.
   2. (B) This conference may be conducted in person or through technology.

4. (4)

   1. (A) The review team shall be composed of, at a minimum, a representative from the district and a representative from the residential treatment facility.
   2. (B) A Department of Human Services representative shall also be invited if the student is receiving services from one (1) or more Department of Human Services divisions.

5. (5) The review team shall:

   1. (A) Review information available on the student; and
   2. (B) Determine whether a referral for consideration of eligibility for special education and related services is warranted.
6. (6) When the review team determines the student should be referred for consideration of eligibility for special education, a referral form must be completed and a referral conference conducted following the process in 6 CAR § 130-401 et seq., governing referrals.
7. (7) When the review team determines that the student should not be referred for consideration for special education and related services, it must identify the general educational and noneducational needs of the student.

8. (8)

   1. (A) Based on the identified needs of the nondisabled student, the review team will determine and document where the educational program of the student will be implemented.
   2. (B) The inter-linkage of the treatment program needs and educational programming must be discussed in reaching a decision on an appropriate educational setting.

(c) Assignment of costs.

1. (1) For nondisabled students, educational costs are limited to only those costs incurred for direct educational instruction of the student.

2. (2)

   1. (A) All other services provided for the student are considered noneducational and are not reimbursable under this part.
   2. (B) Such other costs will be borne by:

(i) The Department of Human Services;

1. (ii) Medicaid;

   1. (iii) Private insurance;

      1. (iv) The parent; or
      2. (v) Any combination thereof.

2. (3)

   1. (A) Residential treatment facilities must submit a written request to the responsible school district identifying the costs of education and services provided.
   2. (B) The request must be submitted to the school district by the deadline established by the Special Education Unit of the Division of Elementary and Secondary Education in order for the district to seek reimbursement.

3. (4) The Special Education Unit, 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, the juvenile’s physician determines that the out-of-state placement is medically necessary and is the most appropriate placement available;
   2. (B) The Special Education Unit authorizes public payment for educational costs based on a determination that the educational program and facilities are appropriate for the juvenile and the Special Education Unit has approved the facility's education program;
   3. (C) Each educational program authorization precedes the placement; and
   4. (D) The out-of-state residential or inpatient facility is located within a state that borders Arkansas.
4. (5) If the program is not authorized prior to the placement, the Division of Elementary and Secondary Education, 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.
5. (6) The liability of the Division of Elementary and Secondary Education, a public school district, or an open-enrollment charter school for the educational costs or other related costs, shall be limited to the lesser of the reimbursement rate established by the Division of Elementary and Secondary Education for a juvenile placed in a residential or inpatient facility or the 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 determined by the Division of Elementary and Secondary Education.
6. (7) Reimbursement for students without disabilities in an out-of-state facility shall be limited to twenty (20) students at any one (1) time during a calendar year.

7. (8) Nothing in this section shall be construed to require payment by the Division of Elementary and Secondary Education, 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.

   1. (d) Funding.
8. (1) The responsible school district may request reimbursement from the Special Education Unit for the educational costs of nondisabled students placed in residential treatment facilities.
9. (2) The school district shall not be responsible for educational costs exceeding the maximum reimbursement rate for nondisabled students receiving educational services in a residential treatment facility, as determined by the Division of Elementary and Secondary Education.
10. (3) When the requests for reimbursement exceed the amount of funds available, the reimbursement will be prorated.

(e) Extended school year services (ESY).

1. (1)

   1. (A) There is no provision for extended school year (educational) services to nondisabled students when schools are not in session.
   2. (B) This applies to nondisabled students in residential placements, as well as their nondisabled peers who attend the local public school.
   3. (C) Therefore, there is no need for a district to convene a review team during the summer months when school is not in session.
2. (2) Residential treatment facilities cannot bill school districts for educational services provided to nondisabled students during the summer months.