The local district will be out of compliance if it fails to develop an IEP for a child with a disability. HOWEVER there is no requirement that the IEP team find that the virtual school is an appropriate setting. Students who are not enrolled in the local school district are parentally enrolled students participating in a public instructional program. The local school district is not required to prepare parentally enrolled students, but they may be eligible for services under the proportionate share requirements of the IDEA.