NWR: Need Guidance Counselor or Admin opinions..

We're trying to plan for summer school. I have a bunch of kids that either failed courses or missed parts of the course b/c they came from another country or state.

I vaguely remember a NYS reg that stated that a Principal can award credit for the first year of a subject if a student
passed a Regents exam. (I know there's a loophole that says that the student can get an 85 ans submit a project and be awrded credit w/o seat time, but that's not going to help). Has anyone else seen this? Where would I find it?

Thanks!