Department of Education
Colorado State Board of Education
1 CCR 301-39
RULES FOR THE ADMINISTRATION OF THE PUBLIC SCHOOL FINANCE ACT OF 1994
This regulation is adopted pursuant to the authority in section: 22-2-107, C.R.S., 22-2-113, C.R.S., 22-54-104, C.R.S., 22-54-108, C.R.S., 22-54-109, C.R.S., 22-54-120, C.R.S., 22-54-129, C.R.S., 22-2-402, C.R.S. and is intended to be consistent with the requirements of the State Administrative Procedures Act, section 24-4-101 et seq. (the “APA”), C.R.S. 
1.00	Statement of Basis and Purpose 
The basis for these Rules amended on March 6, 2003 is found in Article 54 of Title 22, C.R.S., and in Article 2 of Title 22, C.R.S.  The State Board has the responsibility to establish Rules and regulations to implement these provisions of these Articles.  The purpose of these Rules is to:
Establish regulations and procedures for administration of the Public School Finance Act of 1994, including the procedures for revocation or withholding of school district accreditation for Act violations, determination of district pupil membership and enrollment and district a-risk funding, and assignment of cost of living factors in the event of district reorganizations.
Assure the pupil count associated with the Public School Finance Act of 1994 fairly distributes funding to school districts to provide continuing instructional services.
Establish regulations and procedures regarding out-of-district-placed pupils and coordinate the collection of per pupil operating revenues with approval of facilities as on-grounds schools.
Coordinate these rules with regulations governing the administration of the Exceptional Children Educational Act (article 20 of Title 54, C.R.S.).
The basis for these rules is to establish procedures related to counting of pupils and payments of funding related to publicly placed pupils in eligible facilities.  These changes to the rules are necessary due to legislation enacted through HB08-1204 and HB08-1388.  
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14.00	Pupils Publicly Placed Outside the District of Residence Definitions
14.01	“Approved Facility School” means an educational program meeting the requirements and standards outlined in Rule 2254-R-20.00 and approved by the State Board.  
14.01(1)	If an approved facility school’s authorization, license, certification, or other privilege to operate as required by applicable federal or state statute, rule, or regulation is suspended, terminated, or otherwise restricted, such facility no longer shall be deemed an approved Facility School.  
14.02	"District" means, a district in which a pupil publicly placed in a non-eligible facility is enrolled and in attendance in an educational program.
14.03	"State Operated Program" means a regional center, Colorado School for the Deaf and the Blind, Colorado Mental Health Institute at Fort Logan, and the Colorado Mental Health Institute at Pueblo.
14.04	“Eligible Facility” means an approved facility school or a state operated program (state operated program included in definition only for the purpose of funding eligibility).
14.05	“Non-Eligible Facility” means a facility that does not have an approved on grounds school, such as a group home.
14.06	“Eligible Pupil” means a pupil in public placement who is enrolled in and attending a district or who is receiving his/her education from the staff of state operated program or an approved facility school.
14.07	"Group Care Facility or Home" means a group home for the developmentally disabled, a residential child care facility, a residential treatment center, a secure residential treatment center, a hospital, a specialized group facility for children with disabilities, or other appropriately licensed or approved group home with an approved facility school.
14.07 (1)	"Group Home for the Developmentally Disabled" means a state-licensed non-medical residence or dwelling unit providing supervision and training which is capable of housing developmentally disabled persons.
14.07 (2)	"Hospital" means a general hospital or specialty hospital having a license or certificate of compliance issued by the Colorado Department of Public Health and Environment.
14.07 (3)	"Other Appropriately Licensed or Approved Group Home" means a group facility for five or more children approved or licensed by a county department of social services or by the Colorado Department of Human Services or an approved child placement agency for children without disabilities, not including foster homes.
14.07 (4)	"Residential Child Care Facility," "Residential Treatment Center," "Secure Residential Treatment Center," mean a child care center as defined by the Colorado Department of Human Services which provides 24-hour residential care and treatment for five or more children between 3 and 16 years of age, except that this definition shall not apply to licensed residential camps serving children between 8 and 16 years of age. The residential child care facility must be licensed by the Colorado Department of Human Services.
14.07 (5)	"Specialized Group Facility for Children with Disabilities" means a group home or a group center established, supervised, and appropriately licensed or certified by a county department of social services, by the Colorado Department of Human Services or by the Colorado Department of Public Health and Environment for the purpose of providing 24-hour care for 5 to 12 children whose special needs can best be met in a small group.
14.08	“Pupil in Public Placement or Pupil Publicly Placed” means a pupil placed in an eligible facility by the official action of a court, a county department of social services, the Colorado department of Human Services (which may include division of youth corrections), any other authorized agency, or a district within Colorado.  Placements made by entities or organizations outside the State of Colorado are not allowed to be included in billings from facilities.
15.00	Pupils Publicly Placed Outside the District of Residence-General
15.01	The Department shall provide instructions including appropriate definitions of terms for use by eligible facility personnel in preparing certifications required under these rules and related statutes.
16.00	Pupils Publicly Placed Outside the District of Residence-Determining Pupil Membership at eligible Facilities
16.01	To determine its pupil membership, an eligible facility shall count as of the official count date specified in Rule 2254-R-3.00 each of its Colorado resident, publicly-placed pupils being served who is under age 21 as of the official count date and who has not met the graduation requirements of the education program provided by the district or facility of attendance as of the official count date.
16.01(1)	An eligible facility may include in its pupil membership a non-Colorado resident pupil only if parental rights have been terminated, if the pupil is defined as abandoned or homeless pursuant to Section 22-1-102, C.R.S., or Section 22-1-102.5, C.R.S., or if an in-state public agency has publicly placed the pupil in the eligible facility.
16.01(1.01)	A non-Colorado resident pupil included in an eligible facility’s pupil membership shall be considered a resident of the district in which the eligible facility is located.
16.01(1.02)	A pupil who is defined as abandoned or homeless pursuant to section 22-1-102, C.R.S. or section 22-1-102-.5, C.R.S., or with parental rights terminated shall be considered a resident of the district in which the eligible facility is located.
16.01(2)	An eligible facility serving a non-Colorado resident pupil not qualifying for inclusion in its pupil membership pursuant to Rule 2254-R-16.01(1) is responsible for arranging funding from the pupil’s out-of-state district of residence or parent.
16.02	No later than October 5, an eligible facility shall report to the Department the full name (first, middle, last), gender, date of birth, parent/guardian resident address, district of residence, state assigned student identification number (SASID), and whether the student was publicly placed for each pupil included in its pupil membership.
16.02(1)	If an eligible facility fails to meet the October 5 notification deadline, the State Board may revoke its approval of such eligible facility’s on-grounds school
16.03	A district which provides the educational services to a non-district resident pupil residing in a non-eligible facility located in the district shall include such pupil in its membership count pursuant to Rule 2254-R-5.01 and in its pupil enrollment pursuant to Rule 2254-R-5.15.
17.00	Pupils Publicly Placed Outside the District of Residence-Monthly Reporting to CDE for Reimbursement
17.01	On or before the fifteenth day of each month, an eligible facility shall report to the Department using the format required by the department its number of eligible pupils served during the prior calendar month and the corresponding full-time equivalent membership of such pupils determined by the number of instructional days served.
17.01(1)	An eligible facility’s attendance report received after the fifteenth day of the month shall be deemed late.
17.01(2)	The Department may accept amended monthly reports from an eligible facility prior to making that month’s reimbursement payment pursuant to Rule 2254-R-19.00.
17.02 A state operated program shall report a maximum of one full-time equivalent membership for each eligible pupil in a school year.
17.03	An approved facility school shall report a maximum of o ne and one third full-time equivalent membership for each eligible pupil in a school year.
18.00	Pupils Publicly Placed Outside the District of Residence-Determining Full-time Equivalent Membership
18.01	The first day of attendance following an eligible pupil’s enrollment in the educational program of an eligible facility establishes the first day of an eligible pupil's full-time equivalent membership in an educational program.
18.02	Membership in an educational program continues until an eligible pupil withdraws and such eligible pupil's name no longer appears on the roster of the facility, or until terminated automatically after seven continuous calendar days beginning on an eligible pupil’s first day of non-authorized absence from the educational program.
18.02(1)	Non-authorized absences are time away from the educational program for any reason other than, but not limited to, days on which no educational program is scheduled, pre-approved vacations, sickness, hospitalization, pre-approved therapeutic leave, and sentencing to a detention center.
18.03	Full-time equivalent membership is determined as follows: Total instructional days in membership divided by total instructional calendar days in reporting period (usually a month) equals full-time equivalent membership
18.04	An eligible pupil means a child or youth who has attained three years of age on or before August 1 and who is under twenty-one years of age.
18.05	If an eligible pupil returns on or before the seventh educational calendar day after the first day of non-authorized absences from the educational program, an eligible facility may include the days the pupil was absent in its calculation of total educational calendar days in membership.
18.06	If an eligible pupil returns after the seventh calendar day after the first day of non-authorized absences from the educational program, an eligible facility may include only those days preceding and including the last day of actual attendance in the educational program in its calculation of total calendar days in membership.
18.07	For authorized eligible pupil absences, an eligible facility may include the actual number of instructional days the pupil was absent, up to a maximum of fourteen, in its calculation of total educational calendar days in membership.
18.08	When an eligible pupil reaches age 21, an eligible facility may include such pupil in its monthly report of pupils served and in its calculation of full-time equivalent membership only through the end of the semester in which the eligible pupil reaches age 21.
18.09	An eligible facility shall retain documentation of eligible pupils' names, birthdates, addresses, SASID, dates of admission, schedules, records of attendance, dates of discharge, and placement information until audited by the Department or until five years from the date it submits its monthly reports to the Department pursuant to Rule 2254-R-17.00.
19.00	Pupils Publicly Placed Outside the District of Residence-Monthly CDE Reimbursement Payments
19.01	On or before the fifteenth day of the month following the month in which an eligible facility is required to report its numbers of pupils served and its full-time equivalent membership pursuant to Rule 2254-R-17.00, the Department shall pay the facility a proportional amount of the state average per pupil revenues based on the facility’s reported full-time equivalent membership determined by the number of instructional days served.
19.01(1)	An approved facility school which operates an educational program shall receive a daily rate of one and one-third times the state average per pupil revenue for each full-time equivalent membership reported.  The number of instructional days may range from 176 days to 235 days per year, depending on whether the eligible facility provides a nine, ten, eleven or twelve month educational program.
19.01(2)	A state operated program which operates an educational program shall receive a daily rate based on the state average per pupil revenue for each full-time equivalent membership reported.  The number of instructional days may range from 176 days to 235 days per year, depending on whether the eligible facility provides a nine, ten, eleven or twelve month educational program.  State operated programs are provided other state appropriations to assist with their educational programs.
19.01(3)	The Department may prorate its reimbursement payments if deemed necessary to accommodate a projected revenue shortfall.
19.02	The Department shall pay a facility a maximum of one and one-third times the state average per pupil revenues for each full-time equivalent membership for a school year. 
19.03	The Department is authorized to hold late reports pursuant to Rule 2254-R-17.01(1) and to hold any facility’s adjustment to its full-time membership information previously reported until the end of the fiscal year, at which time adjusted reimbursement payments may BE made.
19.04	An eligible facility annually shall submit its school year calendar to the Department on or before May 1st.
20.00	Pupils Publicly Placed Outside the District of Residence-State Board Approval for On-Grounds Schools
20.01	To receive State Board approval for an on-grounds school, an eligible facility shall at a minimum:
20.01(1)	Ensure that each eligible pupil with a disability under the Elementary and Secondary Education Act or the Individuals with Disabilities Education Act shall have an Individual Education Plan (IEP) that is developed by the pupil’s district of residence in cooperation with the eligible facility and that the eligible facility shall deliver the services in accordance with the IEP and that the eligible facility shall assist in IEP reviews, if requested;
20.01(2)	Ensure that an eligible pupil who is not determined to have a disability under the Elementary and Secondary Education Act or the Individuals with Disabilities Education Act shall have a statement of educational objectives to be accomplished and that such statement shall be prepared by the eligible facility and reviewed at least annually and that in preparing these objectives the eligible facility shall seek input from the pupil’s district of residence regarding the pupil's educational history and that the eligible facility shall mail a copy of the statement to the district of residence and that the eligible facility shall notify the district of resident of the status of such objectives upon the pupil’s departure from the eligible facility;
20.01(3)	Demonstrate that it can provide services to meet the requirements of the Individual Education Plan (IEP) or statement of objectives and that such services shall be provided by individuals meeting applicable certification or licensing standards of appropriate state agencies and shall be accompanied by adequate and appropriate educational materials and equipment;
20.01(4)	Meet all applicable state and federal education laws and regulations;
20.01(5)	Provide each eligible pupil with the opportunity for enrollment and attendance in instructional services commensurate with that provided by public school districts in a school year program plan (1080 hours for secondary, 990 hours for elementary), except as otherwise approved by the Department when reviewing the intent of all federal and state requirements upon the eligible facility when interpreted as a whole.  In no case shall a program be eligible for approval if it provides less than 720 hours of instructional service in a school year.
20.01(6)	Provide for the evaluation of individual pupil progress;
20.01(7)	Agree to cooperate with Department on-site review teams;
20.01(8)	Provide for the maintenance and retention of pupil records;
20.01(9)	Adhere to requirements as delineated in the Rules for the Administration of the Exceptional Children's Educational Act (Article 20 of Title 22, C.R.S.).
20.02	An eligible facility may appeal a denial of its on-grounds school approval pursuant to procedures provided in the Rules for the Administration of the Exceptional Children's Educational Act.