Does This Violate UPA?

<?xml version="1.0" encoding="UTF-8"?>
<xs:schema xmlns:xs="http://www.w3.org/2001/XMLSchema" 
elementFormDefault="qualified" attributeFormDefault="unqualified">
 
 <xs:element name="foo" type="xs:string" />
 
<xs:element name="root">
 <xs:complexType>
  <xs:sequence>
   <xs:element ref="foo" maxOccurs="3"/>
   <xs:element ref="foo" />
  </xs:sequence>
  </xs:complexType>
 </xs:element>
 
</xs:schema>
 
I believe the answer is No but can conceive of how this might be considered a gray area. It gets much grayer if both <foo>'s are local declarations.