Titles of Regulations: 8VAC20-370. Rules Governing Fees and Charges (repealing 8VAC20-370-10).

8VAC20-720. Regulations Governing Local School Boards and School Divisions (adding 8VAC20-720-10 through 8VAC20-720-170).

Statutory Authority: § 22.1-16 of the Code of Virginia.

Public Hearing Information:

June 3, 2010 - 7 p.m. - Marion Senior High School, 848 Stage Street, Marion, VA

June 10, 2010 - 7 p.m. - T. C. Williams High School, 3330 King Street, Alexandria, VA

June 10, 2010 - 7 p.m. - Jolliff Middle School, 1021 Jolliff Road, Chesapeake, VA

June 10, 2010 - 7 p.m. - James River High School, 3700 James River Road, Midlothian, VA

Public Comment Deadline: July 26, 2010.

Agency Contact: Dr. Margaret N. Roberts, Office of Policy and Communications, Department of Education, P.O. Box 2120, 101 North 14th Street, 25th Floor, Richmond, VA 23219, telephone (804) 225-2540, FAX (804) 225-2524, or email margaret.roberts@doe.virginia.gov.

Basis: Section 22.1-16 of the Code of Virginia authorizes the Board of Education to adopt bylaws for its own governance and promulgate such regulations as may be necessary to carry out its powers and duties and the provisions of Title 22.1 of the Code of Virginia. Additionally, § 22.1-6 of the Code of Virginia limits the fees that may be charged to those that are permitted by state law or Board of Education regulations.

Purpose: The purpose of this proposal is to repeal the current regulations governing fees charged by local school divisions and create new better defined and updated provisions that will be added as a section to the proposed Regulations Governing Local School Boards and School Divisions, 8VAC20-720 once they become final. The current regulations governing fees and charges will be repealed simultaneously with the adoption of the addition to the Regulations Governing Local School Boards and School Divisions.

The proposed regulatory action will have no negative impact on the health, safety, or welfare of the public; however, the action will provide an added safeguard for the public by clarifying for parents any monetary cost to them for their child's activities or programs at public school. Therefore, the proposed action is deemed necessary for the welfare of the public.

Substance: The proposed regulation provides changes to school board policies and procedures and includes specific provisions regarding permissible and impermissible fees, policies for families that cannot afford the fees, and impermissible actions for the failure to pay the fees.

The following changes related to policy are proposed:

1. Local school boards that charge fees would be required to have a policy and a fee schedule that would be provided to parents annually and posted on the school division's website.

2. The policy would include a provision to waive or reduce fees for economically disadvantaged students and students whose families are undergoing economic hardships.

3. The policy and fee schedule would be required to be consistent across the school division.

4. No fees could be charged that had not been approved by the local school division.

The following changes related to fees and charges are proposed:

1. Fees may not be charged as a condition of school enrollment unless the student is not of school age or does not live within the jurisdiction (§§ 22.1-1, 22.1-3, and 22.1-5 of the Code of Virginia).

2. Fees may not be charged for textbooks or textbook deposits; however, § 22.1-143 of the Code of Virginia permits local school divisions to assess a reasonable fee for lost or damaged textbooks.

3. Fees may not be charged for pupil transportation to and from school (Attorney General's Opinion dated August 29, 2007), but may be charged for the student's pro rata cost of providing for voluntary extracurricular activities (§ 22.1-176 of the Code of Virginia).

4. Fees may be charged for summer school unless the summer school program is a remediation program required by the Standards of Quality (§ 22.1-253.13:1 of the Code of Virginia).

5. Fees may be charged for class dues; however, class dues shall not be mandatory, and the school board must specify the kinds of programs and activities covered by class dues.

6. Fees may be charged for nonmandatory services such as parking fees and locker fees (Attorney General's Opinions dated November 8, 1991 and 1964-65 Att'y Gen. Ann. Rep. 294).

7. Fees may be charged for consumable materials, such as workbooks, but the local school board must have a policy to ensure that these are furnished at a reduced price or free of charge to students who are unable to afford them (§ 22.1-243 of the Code of Virginia).

8. Fees may be charged for the behind the wheel portion of the driver's education program (§ 22.1-205 of the Code of Virginia).

9. Fees may be charged for the preparation and distribution of official paper copies of the student's transcript, provided that the school board first provides a reasonable number of copies for free. Official electronic copies of transcripts shall be provided at no cost.

The following additional provision related to nonpayment of fees is proposed:

A student may not be suspended or expelled for nonpayment of fees and charges.

Issues: While the Code of Virginia does not specifically require these regulations, it does limit the fees that may be charged to those that are permitted by state law or Board of Education regulations. Therefore, the Board of Education must adopt regulations in order to properly address the issue of what fees may or may not be charged by local school divisions. This proposal updates and clarifies an outdated regulation to provide better guidance to local school divisions and incorporates Attorney General's Opinions and changes to the Code of Virginia.

The proposed regulation provides changes to school board policies and procedures and includes specific provisions regarding permissible and impermissible fees, policies for families that cannot afford the fees, and permissible actions for the failure to pay the fees.

Some parents and members of the public have, over the years, believed that school divisions were not making provisions for low-income and disadvantaged families. This proposal is advantageous to students and their families who will have access to necessary information regarding fees and charges and who will be assured that fees charges by local school divisions are in accordance with state law and regulations. Additionally, the regulation will clarify that children from families that are economically disadvantaged will not be denied opportunities based on their inability to pay the imposed fees. There are no disadvantages to the public or the Commonwealth.

The Department of Planning and Budget's Economic Impact Analysis:

Summary of the Proposed Amendments to Regulation. The Rules Governing Fees and Charges, 8VAC20-370-10, were adopted on or before September 1, 1980, and have not been amended since that time. The Board of Education (Board) proposes to repeal these current regulations governing fees charged by local school divisions and create new provisions that would be added as a section to the proposed Regulations Governing Local School Boards and School Divisions, 8VAC20-720-10 et seq.

In addition to a different location within the Virginia Administrative Code, the proposed regulations governing fees charged by local school divisions would have the following changes: 1) Local school boards that charge fees would be required to have a policy and a fee schedule that would be provided to parents annually and posted on the school division's website. 2) The policy would include a provision to waive or reduce fees for economically disadvantaged students and students whose families are undergoing economic hardships. 3) The policy and fee schedule would be required to be consistent across the school division. 4) No fees could be charged that had not been approved by the local school division. 5) Fees may not be charged as a condition of school enrollment unless the student is not of school age or does not live within the jurisdiction (§§ 22.1-1, 22.1-3, and 22.1-5 of the Code of Virginia). 6) Fees may not be charged for textbooks or textbook deposits; however, § 22.1-243 of the Code of Virginia, permits local school divisions to assess a reasonable fee for lost or damaged textbooks. 7) Fees may not be charged for pupil transportation to and from school (Attorney General's Opinion dated August 29, 2007), but may be charged for the student's pro rata cost of providing for voluntary extracurricular activities (§ 22.1-176 of the Code of Virginia). 8) Fees may be charged for summer school unless the summer school program is a remediation program required by the Standards of Quality (§ 22.1-253.13:1 of the Code of Virginia). 9) Fees may be charged for class dues; however, class dues shall not be mandatory, and the school board must specify the kinds of programs and activities covered by class dues. 10) Fees may be charged for non-mandatory services such as parking fees and locker fees (Attorney General's Opinions dated November 8, 1991 and 1964-65 Att'y Gen. Ann. Rep. 294). 11) Fees may be charged for consumable materials, such as workbooks, but the local school board must have a policy to ensure that these are furnished at a reduced price or free of charge to students who are unable to afford them (§ 22.1-243 of the Code of Virginia). 12) Fees may be charged for the behind the wheel portion of the driver's education program (§ 22.1-205 of the Code of Virginia). 13) Fees may be charged for the preparation and distribution of official paper copies of the student's transcript, provided that the school board first provides a reasonable number of copies for free. Official electronic copies of transcripts shall be provided at no cost. 14) A student may not be suspended or expelled for nonpayment of fees and charges.

Result of Analysis. The benefits likely exceed the costs for all proposed changes.

Estimated Economic Impact. Much of the proposed amended language is beneficial in that helps provide clarity for the public. The clarifying language does not increase costs.

The Virginia Department of Education (Department) is not aware of how many school divisions currently post fee schedules on their websites. This is very useful information for parents and guardians. Since all divisions already have websites, the cost of posting this information is relatively small. Thus this proposal to require posting will create a net benefit for the Commonwealth.

The proposal to require that each school division provide for the reduction or waiver of fees for economically disadvantaged students and students whose families are undergoing economic hardships would reduce costs for some households. In 2008 the Department surveyed school divisions about fee policies. Of the 83 school divisions that responded to the survey in 2008, 64 school divisions answered that they assessed fees. Of these 64 divisions, 38 divisions answered that they had a schedule of fees and 20 responded that they had a financial hardship policy concerning fees. Thus it is likely that the proposed requirement to provide for the reduction or waiver of fees for economically disadvantaged students and students whose families are undergoing economic hardships will have a significant positive impact for some less well-to-do Virginia families.

Neither the Code of Virginia nor current regulations reference charges for the preparation and distribution of official paper copies of student transcripts. The Board proposes to specify that local school boards may charge fees for "the preparation and distribution of official paper copies of student transcripts; however, each school board shall provide a reasonable number of copies for free before a charge is levied for additional official copies. Official electronic copies of student transcripts shall be provided for free." The Department did not ask about transcript fees in their 2008 survey and are not currently aware of the distribution of fee policies for transcripts among local school divisions.

Businesses and Entities Affected. The proposed amendments affect the 132 school divisions in the Commonwealth as well as the over one million students in Virginia's public schools and their parents or guardians.

Localities Particularly Affected. The proposed amendments affect all localities and are not specifically known to disproportionately affect particular localities.

Projected Impact on Employment. The proposed amendments are unlikely to significantly affect employment.

Effects on the Use and Value of Private Property. The proposal to require that each school division provide for the reduction or waiver of fees for economically disadvantaged students and students whose families are undergoing economic hardships would reduce costs for some households.

Small Businesses: Costs and Other Effects. The proposed amendments are unlikely to significantly affect small businesses.

Small Businesses: Alternative Method that Minimizes Adverse Impact. The proposed amendments are unlikely to significantly affect small businesses.

Real Estate Development Costs. The proposed amendments are unlikely to significantly affect real estate development costs.

Legal Mandate. The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Administrative Process Act and Executive Order Number 36 (06). Section 2.2-4007.04 requires that such economic impact analyses include, but need not be limited to, the projected number of businesses or other entities to whom the regulation would apply, the identity of any localities and types of businesses or other entities particularly affected, the projected number of persons and employment positions to be affected, the projected costs to affected businesses or entities to implement or comply with the regulation, and the impact on the use and value of private property. Further, if the proposed regulation has adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include (i) an identification and estimate of the number of small businesses subject to the regulation; (ii) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the regulation, including the type of professional skills necessary for preparing required reports and other documents; (iii) a statement of the probable effect of the regulation on affected small businesses; and (iv) a description of any less intrusive or less costly alternative methods of achieving the purpose of the regulation. The analysis presented above represents DPB's best estimate of these economic impacts.

Agency's Response to the Department of Planning and Budget's Economic Impact Analysis: The agency agrees with the economic impact analysis done by Department of Planning and Budget. The agency will continue to examine the economic and administrative impact of the regulations as they progress through the Administrative Process Act process.

Summary:

The Rules Governing Fees and Charges, 8VAC20-370-10, were adopted on or before September 1, 1980, and have not been amended since that time. The Board of Education proposes to repeal these current regulations governing fees charged by local school divisions and create new provisions that would be added as a section to the proposed Regulations Governing Local School Boards and School Divisions, 8VAC20-720.

In addition to a different location within the Virginia Administrative Code, the proposed regulations governing fees charged by local school divisions would have the following changes: (i) local school boards that charge fees would be required to have a policy and a fee schedule that would be provided to parents annually and posted on the school division's website; (ii) the policy would include a provision to waive or reduce fees for economically disadvantaged students and students whose families are undergoing economic hardships; (iii) the policy and fee schedule would be required to be consistent across the school division; and (iv) no fee could be charged that had not been approved by the local school division. Additionally, fees may not be charged (i) as a condition of school enrollment unless the student is not of school age or does not live within the jurisdiction; (ii) for textbooks or textbook deposits; however, local school divisions may assess a reasonable fee for lost or damaged textbooks; and (iii) for pupil transportation to and from school but may be charged for the student's pro rata cost of providing for voluntary extracurricular activities. However, fees may be charged for (i) summer school unless the summer school program is a remediation program required by the Standards of Quality; (ii) class dues; however, class dues shall not be mandatory and the school board must specify the kinds of programs and activities covered by class dues; (iii) consumable materials, such as workbooks, but the local school board must have a policy to ensure that these are furnished at a reduced price or free of charge to students who are unable to afford them; (iv) nonmandatory services such as parking and lockers; (v) the behind the wheel portion of the driver's education program; and (vi) the preparation and distribution of official paper copies of the student's transcript, provided that the school board first provides a reasonable number of copies for free and official electronic copies of transcripts at no cost. Also, a student may not be suspended or expelled for nonpayment of fees and charges.

CHAPTER 720
REGULATIONS GOVERNING LOCAL SCHOOL BOARDS AND SCHOOL DIVISIONS

8VAC20-720-10 through 8VAC20-720-70. (Reserved.)

8VAC20-720-80. Student fees and charges.

A. No fees or charges may be levied on any pupil by any school board unless authorized by the Board of Education or prescribed by the Code of Virginia.

B. Each local school board shall develop a policy in accordance with the requirements of the Standards of Quality, § 22.1-253.13:7 of the Code of Virginia, addressing any fees that are charged. The policy shall include the schedule of fees charged by the school division, provisions for reducing or waiving fees, and sanctions for nonpayment of fees. The policy and the fee schedule shall be provided to parents annually and posted on the school division's website.

C. The policy shall provide for the reduction or waiver of fees for economically disadvantaged students and students whose families are undergoing economic hardships. This shall include, but not be limited to, families receiving unemployment benefits and public assistance, including Temporary Assistance for Needy Families (TANF), food stamps, and Medicaid; foster families caring for children in foster care; and families that are homeless.

D. School divisions shall not charge any fees that have not been approved by the local school board.

E. The fee policy and the fee schedule shall be consistent throughout the school division, although there may be different fee schedules for elementary, middle, and high schools.

F. Local school boards shall not charge fees:

1. As a condition of school enrollment, except for students who are not of school-age or who do not reside within the jurisdiction, in accordance with §§ 22.1-1 and 22.1-3 of the Code of Virginia and as provided for in § 22.1-5 of the Code of Virginia;

2. For instructional programs and activities, or materials required for instruction, except as specified in subsection G of this section;

3. For textbooks or textbook deposits; however, § 22.1-243 of the Code of Virginia permits a local school board to assess a reasonable fee or charge for lost or damaged textbooks;

4. For pupil transportation to and from school; or

5. For summer school programs or other forms of remediation required by the Standards of Quality, § 22.1-253.13:1 of the Code of Virginia.

G. Local school boards may charge fees for the following:

1. Nonmandatory services, such as parking or locker rental;

2. Nonmandatory extracurricular activities;

3. Class dues; however, class dues shall not be mandatory, and the school board shall specify the kinds of programs and activities covered by class dues;

4. Field trips or educationally-related programs that are not required instructional activities;

5. Deposits for musical instruments not required for instructional activities;

6. Distance learning classes for enrichment and not necessary to meet the requirements for a diploma;

7. Summer school, unless the classes are required for remediation as prescribed by the Standards of Quality, § 22.1-253.13:1 of the Code of Virginia;

8. Overdue or lost or damaged library books;

9. Lost or damaged textbooks, in accordance with § 22.1-243 of the Code of Virginia; however, textbooks shall be provided free of charge;

10. Consumable materials such as workbooks, writing books, and drawing books; however, in accordance with § 22.1-243 of the Code of Virginia, the local school board shall develop a policy ensuring that workbooks, writing books, and drawing books are furnished to students who are unable to afford them at a reduced price or free of charge;

11. The behind-the-wheel portion of the driver's education program in accordance with § 22.1-205 of the Code of Virginia;

12. A student's pro rata share of the cost of providing transportation for voluntary extracurricular activities, in accordance with § 22.1-176 of the Code of Virginia; and

13. The preparation and distribution of official paper copies of student transcripts; however, each school board shall provide a reasonable number of copies for free before a charge is levied for additional official copies. Official electronic copies of student transcripts shall be provided for free.

H. Local school boards shall not:

1. Withhold any student's scholastic report card or diploma because of nonpayment of fees and charges, in accordance with § 22.1-6 of the Code of Virginia; or

2. Suspend or expel a student for nonpayment of fees and charges.

I. Nothing in this chapter shall be construed to prohibit the school board of any county, city, or town from making supplies, services, or materials available to pupils at cost.

J. These regulations do not address the operation of school stores or fund-raising activities where transactions are strictly voluntary.

8VAC20-720-90 through 8VAC20-720-170. (Reserved.)