State Education Department Director Ken James says it is OK for teachers to continue giving out candy as rewards. Teachers have received mixed messages whether the state has banned handing out candy. The state has been promoting healty eating habits and working to control obesity among school children. The Pulaski County Special School District had told elementary school principals last month to inform their teachers that they could no longer hand out candy or sell ice cream as incentives and rewards. But James says that such a directive has only been proposed, not enacted.