Can parents file a complaint thru OSPI or just DOE? If parents can file a complaint with OSPI, what is the process? What could be the outcomes for the district?
The complaint process you identify (in sec. 300.151) refers to a citizen complaint, which is a written statement to OSPI alleging that a federal or state special education rule or law has been violated by a school district, among others. The citizen complaint process is defined by federal law, and all states are required to have one in place as a condition to receiving IDEA Part B grant funding. The U.S. Department of Education does not have a similar process of its own for special education complaints.
OSPI's citizen complaint process: www.k12.wa.us/SpecialEd/
Has OSPI seen a case like this before involving a legal case and student data at a law firm?
To the best of our knowledge, we have not.
Is there any kind of regs/rules that any entity receiving student data from a district should check to make sure it IS the data that was asked for and/or that it has been properly redacted before releasing out on discovery?
Under the federal FERPA rules, outside contractors with legitimate educational interest in a student record can be considered “school officials” for purposes of the FERPA privacy rule, and may obtain copies of the records without parental consent in certain situations. But these officials are subject to all of FERPA’s limitations regarding the disclosure of personally identifiable student information. So, generally speaking, they should be aware of FERPA’s rules and best practices.
Does OSPI have any kind of statement in specific on this case and/or about student data and the handling of it by districts?
End of statement by OSPI
I do find that reply to the FERPA question interesting because OSPI is saying the law firm should have known these limitations and "best practices." It would seem whether or not the district is the law firm's client (and has lawyer-client privilege), the law firm may be responsible to have followed FERPA guidelines.