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OP, if you are concerned about the legality of this process, have you inquired with the School Board as to how and when they officially adopted this policy - you can request them point you to the minutes of a Board of Ed meeting where it was voted on.
Even after that, if they can prove it was voted on as a formal policy, you might then ask if they have gotten an opinion from your State Dept of Education as to its legality. You have a right to know this information about how their policies have been adopted, whether they were properly vetted, etc.