Washoe County officials oppose NDE plan to repeal special-education residential-placement regulations; litigation cited

The Nevada Department of Education opened a workshop Aug. 13 to discuss repeal of Nevada Administrative Code sections 388.46 through 388.488 and related amendments to regulations governing services for persons with disabilities with unique needs. Julie Bowers, director of the Office of Comprehensive Student Services, presented the department’s rationale and proposed edits.

Bowers said the department proposes repealing NAC 388.460–388.488 because those sections were written to implement a now-repealed statutory chapter and have created “legal and operational confusion” for districts. She told the workshop the NDE uses a contingency account for special education (the “case” process) established under statute (codified in NRS 388.5243 via Senate Bill 508) to reimburse extraordinary special education expenses. Bowers said the department proposes to repeal the outdated NAC sections, then amend regulations under NRS 388.5243 to clarify student eligibility, define potentially fundable expenses (including educationally necessary residential costs not covered by insurance or Medicaid), and make the application and reimbursement process more transparent and user-friendly.

The proposal drew extensive public comment from Washoe County School District counsel. Neil Lombardo, chief general counsel for the Washoe County School District, told the workshop the district opposes the repeal and asserted that the department’s public notice exceeded its agenda and violated Nevada’s Open Meeting Law. Lombardo recounted a recent court order in Second Judicial District Court, case number CV25-01018 (Judge David A. Hardy), which found that NRS 388.5223–388.5243 and NAC 388.46–388.488 apply to the program for persons with disabilities with unique needs and that the department’s “case” regulation (NAC 388.319) does not provide for residential placements. “This court is persuaded that the NDE’s actions constitute a constitutional violation of the rights of the student,” Lombardo said, citing the court order.

Washoe County’s written comment, submitted by Sarah Montalvo, deputy chief general counsel, urged the NDE not to repeal the NAC sections without replacing them with regulations that ensure funding and facilitation of residential placements. The written comment noted that the contingency account is replenished to $2,000,000 annually, that the NDE has reimbursed seven districts for in-state services and that Clark, Churchill and Washoe counties have received reimbursements for residential and out-of-state services. The comment said the district has sought public records about where account funds have been spent and that the district has pending litigation and a preliminary injunction restraining the NDE from repealing certain NAC provisions as they relate to Washoe County and the specific student at issue.

Bowers said the department’s goals are to: (1) repeal regulations tied to statutory authority the department considers obsolete; (2) align remaining regulations with NRS 388.5243 to clarify eligibility and reimbursable expenses; and (3) update the case application process to be more transparent, including opportunities for more frequent reimbursement schedules (monthly, quarterly or annually). Bowers said the department will work with community partners and local control districts to draft the amendments.

No formal vote or rule adoption occurred at the workshop. The department closed the public comment period and said it will post revised regulation language and accept further written comments. Washoe County’s written and oral comments were entered into the record and attached to the district’s public comment filing.