while I certainly would not consider this best practice your school is not technically doing anything wrong. Schools are not covered under HIPAA (not even school nurses). So all information is covered under FERPA. This is a key difference because it allows then to release information to anyone that would have an educational reason to know. So since the report card would only go to the parent or another educational entity it would be fine. That is why when a child changes schools and records are sent any IEP's, evaluations and 504 plans are sent along as well. While I don't see the need to put this info on a report card they are not technically doing anything illegal.
http://www.hhs.gov/hipaa/for-profes...apply-to-an-elementary-school/index.html
