Commonwealth of Virginia Department of Education v. Riley

86 F.3d 1337
CourtCourt of Appeals for the Fourth Circuit
DecidedJune 19, 1996
DocketNo. 95-2627
StatusPublished
Cited by5 cases

This text of 86 F.3d 1337 (Commonwealth of Virginia Department of Education v. Riley) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth of Virginia Department of Education v. Riley, 86 F.3d 1337 (4th Cir. 1996).

Opinions

[1339]*1339OPINION

MURNAGHAN, Circuit Judge:

Under Part B of the Individuals with Disabilities Education Act (“IDEA” or “IDEA-B”), federal funds are provided to participating states for the purpose of helping them to educate disabled children. In order to be eligible for the federal assistance, a state must meet numerous requirements prescribed by Congress, one of which is that the state “assure[ ] all children with disabilities the right to a free appropriate public education.” After learning that Virginia has a policy under which a disabled child may be deprived of all educational services by way of expulsion or long-term suspension if that child misbehaves in a manner unrelated to his or her disability, the United States Department of Education threatened to withhold all of Virginia’s IDEA-B funds unless it amended that policy so that expelled or suspended disabled children could receive educational services in an alternative setting. In Virginia Department of Education v. Riley (Riley I), 23 F.3d 80 (4th Cir.1994), we ordered the Department to conduct a hearing on the matter. Following that hearing, the Secretary of Education ruled that Virginia’s entire allotment of IDEA-B funds could indeed be withheld until the state agreed to amend its disciplinary policies. Virginia has appealed that ruling on numerous grounds. We affirm.

I.

A.

In Part B of the IDEA — formerly known as the Education of the Handicapped Act1— Congress has directed the Department of Education to provide financial assistance, under prescribed conditions, to state and local education agencies for the education of disabled children. See 20 U.S.C. §§ 1411-20 (1990 & Supp.1996). The IDEA-B program is administered by the Office of Special Education Programs (“OSEP”), housed within the Department of Education’s Office of Special Education and Rehabilitative Services (“OSERS”). 20 U.S.C. § 1402(a) (Supp. 1996). To receive IDEA-B funds, a state must do two things. First, the state must submit to OSEP a plan covering a period of three fiscal years, describing (among other things) the policies and procedures that will govern the expenditure of the federal funds. See 20 U.S.C. § 1413 (1990 & Supp.1996); 34 C.F.R. § 300.110. Second, the state must meet the eligibility requirements described in the Act. One of those requirements is that the state have “in effect a policy that assures all children with disabilities the right to a free appropriate public education.”2 20 U.S.C. § 1412(1) (Supp.1996); see also 34 C.F.R. § 300.121(a) (“Each State plan must include information that shows that the State has in effect a policy that ensures that all children with disabilities have the right to FAPE [free appropriate public education] within the age ranges and timelines under § 300.122.”). If the Secretary of Education determines, after notice and an opportunity for a hearing, that the state has failed substantially to comply with that or other requirements set out in sections 1412 and 1413, he or she “shall, after notifying the State educational agency, withhold any further [IDEA-B] payments to the State.” 20 U.S.C. § 1416(a) (Supp.1996).

B.

In August 1992, Virginia submitted to OSEP its IDEA-B plan for fiscal years 1993, 1994, and 1995. The Assistant Secretary of Education for OSERS conditionally approved the plan in October 1992 and permitted Virginia to receive its funds for fiscal year 1993. The Department of Education thereafter discovered that Virginia has a stated policy under which, “[i]f there is no causal connection [between a child’s misconduct and his or [1340]*1340her -disability] and if the child was appropriately placed at the time of the misconduct, the child may be disciplined the same as a non-handicapped child.”3 On December 17, 1993, the Department notified Virginia officials that it would not release Virginia’s IDEA-B funds for fiscal years 1994 and 1995' unless Virginia altered that policy. Relying upon the Act’s statement that a participating state must have “in effect a policy that assures all children with disabilities the right to a free appropriate public education,” as well as upon the Department’s prior interpretation of that provision, the Department asserted that “even during a disciplinary removal that exceeds 10 school days, [participating states] may not cease educational services to students with disabilities ... regardless of whether the student’s misconduct is determined to be a manifestation of the student’s disability.”

Virginia refused to amend its policy, insisting that, if a child’s misbehavior is unrelated to his or her disability, IDEA-B does not strip school officials of their right to deprive the student of all educational services by expelling him or her or by suspending him or her for an extended period of time. After the Department refused to grant it a hearing on the matter, Virginia petitioned this court for interlocutory relief, seeking the release of its $50.2 million IDEA-B allotment for fiscal year 1994. We granted Virginia the relief it requested, holding that, under 20 U.S.C. § 1416(a), Virginia could not be deprived of its IDEA-B funds without reasonable notice and an opportunity for a hearing. Riley I, 23 F.3d at 84-87. The Secretary complied with that ruling, releasing the funds for fiscal year 1994 and ordering that a hearing be held concerning the disposition of the funds for fiscal year 1995.

In October 1994, a hearing was indeed held. The Hearing Officer found (1) that “IDEA-B requires states to assure that eligible students with disabilities suspended long-term or expelled for conduct unrelated to their disabilities continue to receive special education services;” (2) that the Department’s policy on the matter had been articulated in the form of “an interpretive rule not subject to the notice and comment provisions” of the Administrative Procedure Act (“APA”); (3) that the Department’s demand that Virginia amend its policy “did not amount to imposing [on Virginia] an impermissible new condition;” and (4) that the Secretary was acting within the scope of his lawful discretion when he proposed that Virginia’s entire allotment of IDEA-B funds for fiscal year 1995, as well as all future IDEA-B funds, be withheld if Virginia refused to amend its policies in the manner demanded by the Department.

Pursuant to 34 C.F.R. § 300.585, the Secretary reviewed the Hearing Officer’s findings, then issued his final decision on July 3, 1995.

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Related

United States v. Reyna
335 F. App'x 476 (Fifth Circuit, 2009)
Virginia Department of Education v. Riley
106 F.3d 559 (Fourth Circuit, 1997)

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Bluebook (online)
86 F.3d 1337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-of-virginia-department-of-education-v-riley-ca4-1996.