Peanut allergy question?

This is a question from a co-worker.
Her child goes to a grade school that a new student with severe peanut allergies now attends. This child is so allergic that he almost died from a dog that had eaten a bone with peanut butter in it. An email was sent out to all parents that stated that any child that ate peanut butter before school must scrub their face and hands and ensure they do not get it on their clothes prior to goiing to school.
Well this has caused an uproar at the grade school among parents and children. This is over 500 students. Some parents are wanting this child removed from the school.
If it was my child and he was that severely allergic, I wouldn’t trust that everyone would follow the rules. I would probably try to home school him.
What do you think should be done?