HI Indigo,
Thanks for your time and effort. Here is a link to that law they are quoting.
http://www.k12.wa.us/ProfPractices/adminresources/RulesProcess/OTS-7858-4.pdf
Thanks again for any ideas how to proceed. I'd rather fight this for the good of all kids than worry about promoting my kid to 10th grade to skirt the issue.