Restrict draggable elements to parent?

I'm not sure if this already exists and I haven't seen it yet (apologies if that's the case). Is there a way to restrict where certain draggable elements are droppable?

Say I have a list:

<ul>
<li>one</li>
<li>two</li>
<li>three</li>
</ul>

And I want the user to be able to rearrange the list items, but restrict them from dragging outside of the <ul>.

similar to http://api.jqueryui.com/draggable/#option-containment