They can keep their look alike drug policy and apply it when/if a kid is actually distributing for money the look alike drug, not joking with friends. Even in that case I wouldn't advocate sticking the child with a felony, which will affect his options for the rest of his life. Save that for the real campus drug dealers.
Maybe they can bring in look-alike guns and simulate drive-by shootings? Oh, what fun! Then the teachers could simulate the public paying for simulated medical care and simulated drug rehab for the victims!
Education? Who cares! The kids are having fun, practicing real life capitalisn, applying mathematical skills, and harming no one!
AND, learning a trade!