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, amended on September 11, 2008 as emergency 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.  
**************************************
14.00	Pupils Publicly Placed Outside the District of Residence Definitions
14.01	Approved on-grounds 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 or facility of attendance" means, a district or an eligible facility in which a pupil publicly placed outside the district of residence IN A NON-ELIGIBLE FACILITY is enrolled and in attendance and which provides IN an educational program as part of its approved on-grounds school.
14.03	"Eligible STATE OPERATED facility" means a group care facility or home as defined in these Rules, a community centered board, a state-licensed day treatment facility, a state-operated facility (e.g., regional center, Colorado School for the Deaf and the Blind, Colorado Mental Health Institute at Fort Logan, Colorado Mental Health Institute at Pueblo).
14.03(1)	If an eligible A STATE OPERATED facility’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 eligible facility.
14.04	“ELIGIBLE FACILITY” MEANS AN APPROVED FACILITY SCHOOL OR A STATE OPERATED FACILITY.
14.05	“NON-ELIGIBLE FACILITY” MEANS A FACILITY THAT DOES NOT HAVE AN APPROVED ON-GROUNDS SCHOOL, SUCH AS A GROUP HOME.
14.04 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 an eligible STATE OPERATED FACILITY OR AN APPROVED FACILITY SCHOOL facility's approved on-grounds school.
14.05 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.
14.05 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.
14.05 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.
14.05 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.
14.05 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.
14.05 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.
14.05 (6)	If a group care facility or home loses its authorization, license, certification, or other privilege to operate as required by applicable federal or state statute, rule, or regulation, such group care facility or home shall no longer be deemed an eligible facility.
14.06 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 district and 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 and to the district in which the facility is located the full name (first, middle, last), gender, age DATE OF BIRTH, parent/guardian resident address, DISTRICT OF RESIDENCE, state assigned student identification number (SASID), AND WHETHER THE STUDENT WAS PUBLICLY PLACED and the district or facility of attendance of FOR each pupil included in its pupil membership using the Form CDE-522.
16.02(1)	The Department may fine an eligible facility which fails to meet the October 5 notification deadline up to $500.
16.02(2)(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.
16.02(3)	If an eligible facility fails to include any students on the form CDE-522 for the October 1 pupil count that were actually in attendance during the official count period, the facility shall not bill for those students throughout the year. 
16.03	No later than October 15, a district in which an eligible facility is located shall notify the respective districts of residence and the department using the official notification form (issued by the Department as part of the form “Certification of Pupil Enrollment”) of the full name (first, middle, last), gender, birth date, parent's or legal guardian's name and address, and the name and address of the eligible facility in which the pupil resides of each pupil reported pursuant to Rule 2254-R-16.02.
16.03(1)	The address of an eligible facility shall be listed as a physical street location and not as a post office box address.
16.03(2)	A non-Colorado resident pupil included in an eligible facility s pupil membership pursuant to Rule 2254-R-16.01(1) shall be considered a resident of the district in which the eligible facility is located.
16.03(3)	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.
16.03(4)	A district which provides the educational services to a non-district resident pupil included in the pupil membership of RESIDING IN an A NON-eligible facility located in the district shall include such pupil in its membership count pursuant to Rule 2254-R-5.01 but shall not include AND such pupil in its pupil enrollment pursuant to Rule 2254-R-5.15. Instead, such a pupil shall be included in the pupil enrollment of the district of residence pursuant to Rule 2254-R-16.04.
16.03(5)	If a district in which an eligible facility is located fails to meet the October 15 notification deadline, the Department shall not be required to reimburse a district pursuant to Rule 2254-R- 19.00 for those pupils whose districts of residence were not notified.
16.03(6)	The Department may fine a district in which an eligible facility is located which fails to meet the October 15 notification deadline up to $500.
16.04	Upon receipt of the official notification form pursuant to Rule 2254-R-16.03, a district of residence shall provide to the Department on the required form the count of its pupils included in the pupil memberships of eligible facilities.
16.04(1)	For a pupil who is included in the pupil membership of an eligible facility and whose district of attendance and district of residence are the same, the district of residence shall include such pupil in its membership count pursuant to Rule 2254-R-5.01 and not pursuant to this Rule 2254-R-16.04.
16.05	For each pupil included in the pupil membership of an eligible facility and reported by the district of residence, the Department shall withhold an amount equal to the district of residence's per pupil operating revenues from the state's share of Total Program payments provided to the district of residence pursuant to Section 22-54-106, C.R.S.
16.05(1)	The Department shall withhold amounts from districts of residence during the months of July through November based on estimated pupil memberships in eligible facilities to be reported pursuant to Rule 2254-R-16.04.
16.05(2)	The Department shall adjust amounts withheld from districts of residence in December and again in June to reflect final pupil counts reported pursuant to Rule 2254-R-16.04 and final calculated per pupil operating revenues.
16.05(3)	The Department shall use the amounts withheld from districts of residence to fund payments to districts or facilities of attendance pursuant to Rule 2254-R-19.00.
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 district or facility of attendance shall report to the Department using Form CDE-354 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 district’s or ELIGIBLE facilities FACILITY’S of 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 a district or AN ELIGIBLE facility of attendance prior to making that month’s reimbursement payment pursuant to Rule 2254-R-19.00.
17.02	A district or facility of attendance which operates a nine-month program beginning in August shall include its number of eligible pupils served during August and its August full-time equivalent membership in its reporting for the month of September.
17.03	A district or facility of attendance which operates a nine-month program ending in June shall include its number of eligible pupils served during June and its June full-time equivalent membership in its reporting for the month of May.
17.04 17.02 AN ELIGIBLE district or facility of attendance shall report a maximum of one 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 school EDUCATIONAL program of a district or AN ELIGIBLE facility of attendance 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 district or facility of attendance, or until terminated automatically after seven continuous calendar days beginning on an eligible pupils 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 calendar 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 who has not reached age 6 as of the official count date and who is in membership in the educational program for an entire month shall be counted as 0.5 full-time equivalent.
18.05	An eligible pupil whose schedule provides at least 90 hours but less than 360 hours of teacher-pupil instruction and teacher-pupil contact in a semester and who is in membership in the educational program for an entire month shall be counted as 0.5 full-time equivalent.
18.06	An eligible pupil whose schedule provides less than 90 hours of teacher-pupil instruction and teacher-pupil contact in a semester and who is in membership in the educational program for an entire month shall not be included in full-time equivalent membership.
18.07	An eligible pupil receiving educational services under an Individual Education Plan (IEP) may be counted as a full-time equivalent only if: (a) the pupil would be enrolled in any grade of the grade 1 through grade 12 group but for the pupil's disabling condition; (b) the pupil has an IEP schedule which provides at least 360 hours of teacher-pupil instruction and teacher-pupil contact in the semester of the official count date; or the pupil is unable to benefit from a full-time program because of his/her disabling condition.
18.08 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, a district or AN ELIGIBLE facility of attendance may include the days the pupil was absent in its calculation of total EDUCATIONAL calendar days in membership.
18.09 18.06	If an eligible pupil returns after the seventh calendar day after the first day of non-authorized absences from the educational program, a district or AN ELIGIBLE facility of attendance 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.
18.10 18.07	For authorized eligible pupil absences, a district or AN ELIGIBLE facility of attendance 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.
18.11 18.08	When an eligible pupil reaches age 21, a district or AN ELIGIBLE facility of attendance 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.
18.12 18.09	A district or AN ELIGIBLE facility of attendance 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 a district or AN ELIGIBLE facility of attendance 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 district or facility of attendance a proportional amount of the state average per pupil operating revenues based on the district’s of facilities FACILITY’S of attendance reported full-time equivalent membership DETERMINED BY THE NUMBER OF INSTRUCTIONAL DAYS SERVED.
19.01(1)	A district or AN APPROVED facility SCHOOL of attendance which operates a 12-month educational program shall receive 1/12  A DAILY RATE of ONE AND ONE-THIRD TIMES the state average per pupil operating revenues 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 district or facility of attendance which operates a 9-month educational program shall receive 1/9 of the state average per pupil operating revenues for each full-time equivalent membership reported.
19.01(2)	A STATE OPERATED FACILITY WHICH OPERATES A 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 FACILITIES 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 district or facility of attendance a maximum of ONE AND ONE-THIRD TIMES the state average per pupil operating 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 district’s or facilities of attendance 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 made.
19.04	An eligible facility annually shall submit its school year calendar to the Department on or before May 1 JULY 31ST.
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) at least 720 hours of service in a school year program plan, 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.