# Title 67 — Public Instruction, Superintendent of

## Article 67-23 — Special Education

## Chapter 67-23-02 — State Funding for Special Education

Condition
Significant Medical Condition
Medical Condition
or Students With a Significant Medical Condition Attending an In-State Private or
Public School or an Out-of-State Public or Private School
Condition
Disabilities or Students With a Significant Medical Condition
### § 67-23-02-01. Definition.

As used in this chapter, "contract for services" means a contract between the resident district and
another school district or an organization outside the local education agency for services to a student
with disabilities or a significant medical condition.
History: Effective February 1, 2000; amended effective October 1, 2024.
General Authority: NDCC 15.1-32-04, 15.1-32-09, 28-32-02
Law Implemented: NDCC 15.1-32-09, 15.1-32-14; 20 USC 1400-1419
### § 67-23-02-02. State funding for students with disabilities or students with a significant

medical condition.
The resident district must pay the cost of special education and related services required by law for
the student with disabilities or the student with a significant medical condition.
History: Effective February 1, 2000; amended effective October 1, 2024.
General Authority: NDCC 15.1-32-04, 15.1-32-09, 28-32-02
Law Implemented: NDCC 15.1-32-14; 20 USC 1400-1419
### § 67-23-02-03. Conditions for contracted services for students with disabilities or a significant

medical condition.
A resident district may enter a contract for services for students with disabilities or students with a
significant medical condition if all of the following requirements are met:
1. The IEP or 504 team has developed an educational plan and determined that the least
restrictive environment for the education of a student with disabilities or student with a
significant medical condition is not available in the resident district.
2. Another setting is available for education in the least restrictive environment in another district
or other setting in North Dakota or another state.
3. The educational services provided in the least restrictive setting are approved by the resident
school district. The resident district, or the educating district in the event of open enrollment,
has notified the superintendent of public instruction using the online application. The student's

current educational plan must be submitted to the department with the contract if it is not in
North Dakota's case management system.
4. The school district making the education placement is able to assure the superintendent that
alternative public school placements in the state were investigated and that the alternate
setting selected is accredited, nonprofit, and nonsectarian and has proper facilities and
services for the education of the student. Assurance is made by completing the contract form
with required signatures.
History: Effective February 1, 2000; amended effective October 1, 2024.
General Authority: NDCC 15.1-29-14, 15.1-32-04, 15.1-32-09, 28-32-02
Law Implemented: NDCC 15.1-29-14, 15.1-32-14, 15.1-32-15; 20 USC 1400-1419
### § 67-23-02-03.1. Building contracts for students with disabilities or students with a significant

medical condition.
1. A school district making the school placement of a student with disabilities or significant
medical condition shall:
a. Participate in development of the educational planning for the student;
b. Evaluate the alternate program as defined in subdivision b of subsection 1 of
disabilities within the resident district system whenever feasible;
c. Maintain a case file, including progress and periodic evaluations of the student with
disabilities;
d. Provide transportation and when applicable boarding care for the student; and
e. Share educational records with other school districts or residential facilities that provide
educational services.
2. The school or facility providing the education shall:
a. Provide the education program as prescribed in the educational plan developed by the
IEP or 504 team including representation from the resident district;
b. Report to parents at the same frequency as progress reports are provided for students
attending the school during the school year;
c. Report progress and summary evaluations to the resident district two times during the
school year;
d. Share educational records with school districts or other residential facilities that provide
educational services for the student; and
e. Bill only for direct services in the student's educational plan provided by special
education and related services providers.
3. The educating district shall create an electronic contract with educational costs using the
online application. Out-of-state contracts and costs may be created with the assistance of the
superintendent of public instruction.
4. Submission of the contract is initiated by the educating district, followed by approval from the
resident district and the superintendent of public instruction. Electronic mail must be
generated with approval or rejection to the educating district, the resident district, and the
superintendent of public instruction.

5. The resident district shall make all payments to the school providing the education-related
service and boarding care, according to the period of service indicated in the contract.
6. The school providing the education shall invite the resident district to participate in the IEP or
504 or other planning meetings and shall maintain contact regarding the student's progress
with the resident district and with the parents of the student during the year.
History: Effective October 1, 2024.
General Authority: NDCC 15.1-32-04, 15.1-32-09, 28-32-02
Law Implemented: NDCC 15.1-29-14, 15.1-32-14, 15.1-32-15, 15.1-32-16; 20 USC 1400-1419
### § 67-23-02-04. Excess costs allowed under school-placed contracts for students with

disabilities or students with a significant medical condition attending an in-state private or
public school or an out-of-state public or private school.
1. Excess costs allowed under school-placed contracts for students with disabilities or students
with a significant medical condition partially reimbursable from state special education funds
include:
a. Boarding care costs, including:
(1) Room costs;
(2) Nursing service (unless billed directly to the student);
(3) Child care;
(4) Central services and supply;
(5) Dietary services;
(6) Plant operation;
(7) Building maintenance and grounds;
(8) Housekeeping;
(9) Laundry and linen;
(10) Depreciation; and
(11) Insurance.
b. Education, including salaries and employee benefits, which include teacher, coordinator,
and instructional aide or general education paraprofessional.
c. Related services, including:
(1) Speech therapy;
(2) Physical therapy;
(3) Occupational therapy; and
(4) Any other service required to assist a child with a disability designed to meet their
individual needs.
d. Administrative salaries and benefits for:

(1) Special education director;
(2) Special education assistant director; and
(3) Other special education central office staff.
History: Effective February 1, 2000; amended effective October 1, 2024.
General Authority: NDCC 15.1-32-04, 15.1-32-09, 15.1-32-18, 28-32-02
Law Implemented: NDCC 15.1-29-14, 15.1-32-14, 15.1-32-15, 15.1-32-19; 20 USC 1400-1419
### § 67-23-02-05. Additional staff for students with disabilities or a significant medical condition.

The full cost of a paraprofessional, speech-language pathology paraprofessional, registered
behavior technician, and special education may be claimed as an allowable cost under a school-placed
contract as defined in the student's educational plan.
History: Effective February 1, 2000; amended effective October 1, 2024.
General Authority: NDCC 15.1-32-04, 15.1-32-09, 28-32-02
Law Implemented: NDCC 15.1-29-14, 15.1-32-14, 15.1-32-15; 20 USC 1400-1419
### § 67-23-02-06. Special education boarding care placement and reimbursement for students

with disabilities or students with a significant medical condition.
Educational boarding care placement for a student with disabilities or a student with a significant
medical condition may be accomplished only through the recommendation of the IEP or 504 team.
Boarding care placement must be in a state-registered home or institution. Reimbursement is
requested by the resident district through the local education agency for eighty percent of the cost of
boarding care for the student.
History: Effective February 1, 2000; amended effective October 1, 2024.
General Authority: NDCC 15.1-32-04, 15.1-32-09, 28-32-02
Law Implemented: NDCC 15.1-29-14, 15.1-32-14, 15.1-32-15, 15.1-32-19; 20 USC 1400-1419
### § 67-23-02-07. Costs not allowed under school-placed contracts.

Costs not allowed under contracts for school-placed students with disabilities or students with a
significant medical condition are:
1. Medical services provided by a physician beyond diagnostic procedures;
2. Drugs and medication;
3. Incidental fees or personal equipment that are the responsibility of the parents of the students
such as eyeglasses, a prosthesis,entertainment, or driver's education fees; and
4. Staff expenses including staff:
a. Travel; and
b. Education and training.
History: Effective February 1, 2000; amended effective October 1, 2024.
General Authority: NDCC 15.1-32-04, 15.1-32-09, 15.1-32-18, 28-32-02
Law Implemented: NDCC 15.1-29-14, 15.1-32-14, 15.1-32-15, 15.1-32-19; 20 USC 1400-1419
