Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 44 First Substitute (2024GS)

Sponsor

Sen. Fillmore, L.

Final action

Governor Signed 3/20/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• renames the Special Needs Opportunity Scholarship program;
• allows for home school students and preschool aged students to receive a scholarship;
• adds expenses with a qualifying provider to allowable scholarship expenses;
• provides regulatory autonomy for a qualifying school, qualifying provider, and home-school student;
• allows scholarships to be used for services from eligible service providers and establishes an approval process;
• requires the Utah State Board of Education to notify participants of termination of the current Carson Smith Scholarship Program;
• phases out new applications and extensions for the Carson Smith Scholarship Program after the 2023-2024 school year; and
• makes technical changes.

Every vote on this bill

Bill text

ALTERNATIVE EDUCATION SCHOLARSHIP COMBINATION
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: 
Candice B. Pierucci
LONG TITLE
Committee Note:
The Education Interim Committee recommended this bill.
Legislative Vote: 11 voting for 0 voting against 9 absent
General Description:
This bill combines the Carson Smith Scholarship and Special Needs Opportunity
Scholarship Programs.
Highlighted Provisions:
This bill:
▸ renames the Special Needs Opportunity Scholarship program;
▸ allows for home school students and preschool aged students to receive a
scholarship;
▸ adds expenses with a qualifying provider to allowable scholarship expenses;
▸ provides regulatory autonomy for a qualifying school, qualifying provider, and
home-school student;
▸ allows scholarships to be used for services from eligible service providers and
establishes an approval process;
▸ requires the Utah State Board of Education to notify participants of termination of
the current Carson Smith Scholarship Program;
▸ phases out new applications and extensions for the Carson Smith Scholarship
Program after the 2023-2024 school year; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
53E-1-202.1
, as enacted by Laws of Utah 2020, Fourth Special Session, Chapter 3
53E-7-401
, as last amended by Laws of Utah 2023, Chapter 190
53E-7-402
, as last amended by Laws of Utah 2023, Chapter 190 and last amended by
Coordination Clause, Laws of Utah 2023, Chapter 190
53E-7-403
, as enacted by Laws of Utah 2020, Fourth Special Session, Chapter 3
53E-7-404
, as last amended by Laws of Utah 2022, Chapter 262
53E-7-405
, as last amended by Laws of Utah 2023, Chapters 190, 353
53E-7-406
, as enacted by Laws of Utah 2020, Fourth Special Session, Chapter 3
53E-7-407
, as last amended by Laws of Utah 2022, Chapter 262
53E-7-408
, as last amended by Laws of Utah 2023, Chapter 353
53E-7-410
, as enacted by Laws of Utah 2020, Fourth Special Session, Chapter 3
53F-4-302
, as last amended by Laws of Utah 2019, Chapter 186
53F-4-304
, as last amended by Laws of Utah 2020, Chapter 408
53F-6-401
, as enacted by Laws of Utah 2023, Chapter 1
59-7-109.1
, as enacted by Laws of Utah 2020, Fourth Special Session, Chapter 3
59-7-625
, as last amended by Laws of Utah 2022, Chapter 262
59-10-1041
, as last amended by Laws of Utah 2022, Chapter 262
63I-2-253
 (Superseded 07/01/24)
, as last amended by Laws of Utah 2023, Chapters 7,
21, 33, 142, 167, 168, 380, 383, and 467
63I-2-253
 (Effective 07/01/24)
, as last amended by Laws of Utah 2023, Chapters 7, 21,
33, 142, 167, 168, 310, 380, 383, and 467
63I-2-267
, as last amended by Laws of Utah 2023, Chapters 139, 530
67-3-1
, as last amended by Laws of Utah 2023, Chapters 16, 330, 353, and 480
ENACTS:
53E-7-408.5
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
53E-1-202.1
 is amended to read:
53E-1-202.1.
Report to the Public Education Appropriations Subcommittee on
the Carson Smith Opportunity Scholarship Program.
(1) Beginning in 2021, the State Board of Education shall, in accordance with Section
68-3-14
, annually submit the report described in Section 
53E-7-404
 to the Public Education
Appropriations Subcommittee.
(2) This section supersedes any conflicting provisions of Utah law.
Section 2. Section 
53E-7-401
 is amended to read:
53E-7-401.
Definitions.
As used in this part:
(1) 
"The Carson Smith Opportunity Scholarship Program" or "program" means the
program established in Section 
53E-7-402
.
(2)
 "Eligible student" means:
(a) a student who:
(i) is
:
(A)
 eligible to participate in public school, in kindergarten or grades 1 through 12;
(B) has enrolled in a qualified private school as defined in Subsection (11);
(C) is a home-based scholarship student as defined in Subsection (6); or
(D) at least three years old before September 2 of the year the scholarship is awarded;
(ii) is a resident of the state;
(iii) 
has a qualified disability identified under 20 U.S.C. Sec. 140(3) as determined by:
(A) having an IEP within the previous three years; or
(B) a multidisciplinary team evaluation described in Subsection (7); and
[
(A) has an IEP; or
]
[
(B) is determined by a multidisciplinary evaluation team to be eligible for services
under 20 U.S.C. Sec. 1401(3); and
]
(iv) during the school year for which the student is applying for the scholarship, is not:
(A) a student who receives a scholarship under the Carson Smith Scholarship Program
created in Section 
53F-4-302
; or
(B) enrolled as a public school student; or
(b) a student who:
(i) meets the requirement of Subsections [
(1)(a)(i) and (ii)
] 
(2)(a)(i) and (ii)
; and
(ii) is a sibling of and resides in the same household as a student described in
Subsection [
(1)(a)
] 
(2)(a)
 if:
(A) the student described in Subsection [
(1)(a)
] 
(2)(a)
 is a scholarship student and has
verified enrollment or intent to enroll at a qualifying school 
or participate in services provided
by a qualifying provider
; and
(B) the sibling is applying for a scholarship to attend the same qualifying school 
or
participate in the same services provided by a qualifying provider
.
[
(2)
] 
(3)
 (a) "Employee" means an individual working in a position in which the
individual's salary, wages, pay, or compensation, including as a contractor, is paid from:
(i) program donations to a scholarship granting organization; or
(ii) scholarship money allocated to a qualifying school 
or qualifying provider
 by a
scholarship granting organization under Section 
53E-7-405
.
(b) "Employee" does not include an individual who volunteers at the scholarship
granting organization
,
 [
or
] qualifying school
, or qualifying provider
.
[
(3)
] 
(4)
 "Family income" means the annual income of the parent, parents, legal
guardian, or legal guardians with whom a scholarship student lives.
[
(4)
] 
(5)
 "Federal poverty level" means the poverty level as defined by the most
recently revised poverty income guidelines published by the United States Department of
Health and Human Services in the Federal Register.
[
(5)
] 
(6) "Home-based scholarship student" means a student who:
(a) is eligible to participate in public school, in kindergarten or grades 1 through 12;
(b) is excused from enrollment in an LEA in accordance with Section 
53G-6-204
 to
attend a home school; and
(c) receives a benefit from a scholarship under the program.
(7)
 "Multidisciplinary evaluation team" means two or more individuals:
(a) who are qualified in two or more separate disciplines or professions; and
(b) who evaluate a child.
[
(6)
] 
(8)
 "Officer" means:
(a) a member of the board of a scholarship granting organization
,
 [
or
] qualifying
school
, or qualifying provider
; or
(b) the chief administrative officer of a scholarship granting organization
,
 [
or
]
qualifying school
, or qualifying provider
.
[
(7)
] 
(9)
 "Program donation" means a donation to the program under Section
53E-7-405
.
[
(8)
] 
(10) "Qualifying provider" means:
(a) an entity that:
(i) is not a public school and is autonomous and not an agent of the state, in accordance
with Section 
53E-7-406
; and
(ii) meets the requirement described in Section 
53E-7-403
; and
(b) is an eligible service provider approved by the scholarship granting organization in
accordance with Section 
53E-7-408.5
.
(11)
 "Qualifying school" means a private school that:
(a) provides kindergarten, elementary, or secondary education;
(b) is approved by the state board under Section 
53E-7-408
; and
(c) meets the requirements described in Section 
53E-7-403
.
[
(9)
] 
(12)
 "Relative" means a father, mother, husband, wife, son, daughter, sister,
brother, uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law,
sister-in-law, son-in-law, or daughter-in-law.
[
(10)
] 
(13)
 "Scholarship" means a grant awarded to an eligible student:
(a) by a scholarship granting organization out of program donations; and
(b) for the purpose of paying for a scholarship expense.
[
(11)
] 
(14)
 "Scholarship expense" means an expense that a parent or eligible student
incurs in the education of the eligible student for goods or a service that a qualifying school 
or
qualifying provider
 provides or facilitates, including:
(a) 
published
 tuition and fees of a qualifying school 
or qualifying provider
;
(b) fees and instructional materials at a technical college;
(c) tutoring services;
(d) fees for after-school or summer education programs;
(e) textbooks, curricula, or other instructional materials, including any supplemental
materials or associated online instruction that a curriculum
, qualifying provider,
 or a qualifying
school recommends;
(f) educational software and applications;
(g) supplies or other equipment related to an eligible student's educational needs;
(h) computer hardware or other technological devices that are intended primarily for an
eligible student's educational needs;
(i) fees for the following examinations, or for a preparation course for the following
examinations, that the scholarship granting organization approves:
(i) a national norm-referenced or standardized assessment described in Section
53F-6-410
, an advanced placement examination, or another similar assessment;
(ii) a state-recognized industry certification examination; and
(iii) an examination related to college or university admission;
(j) educational services for students with disabilities from a licensed or accredited
practitioner or provider, including occupational, behavioral, physical, audiology, or
speech-language therapies;
(k) contracted services that the scholarship granting organization approves and that an
LEA provides, including individual classes, after-school tutoring services, transportation, or
fees or costs associated with participation in extracurricular activities;
(l) ride fees or fares for a fee-for-service transportation provider to transport the
eligible student to and from a qualifying school 
or qualifying provider
, not to exceed $750 in a
given school year;
(m) expenses related to extracurricular activities, field trips, educational supplements,
and other educational experiences; or
(n) the scholarship granting organization approves in accordance with Subsection
53E-7-405
(3).
[
(12)
] 
(15)
 "Scholarship granting organization" means an organization that is:
(a) qualified as tax exempt under Section 501(c)(3), Internal Revenue Code; and
(b) recognized through an agreement with the state board as a scholarship granting
organization, as described in Section 
53E-7-404
.
[
(13)
] 
(16)
 "Scholarship student" means an eligible student
, including a home-based
scholarship student,
 who receives a scholarship under this part.
[
(14) "Special Needs Opportunity Scholarship Program" or "program" means the
program established in Section 
53E-7-402
.
]
[
(15)
] 
(17)
 "Value of the weighted pupil unit" means the amount established each year
in the enacted public education budget that is multiplied by the number of weighted pupil units
to yield the funding level for the basic state-supported school program.
Section 3. Section 
53E-7-402
 is amended to read:
53E-7-402.
Carson Smith Opportunity Scholarship Program.
(1) There is established the [
Special Needs
] 
Carson Smith
 Opportunity Scholarship
Program under which a parent may apply to a scholarship granting organization on behalf of
the parent's student for a scholarship to help cover the cost of a scholarship expense.
(2) (a) A scholarship granting organization shall award, in accordance with this part,
scholarships to eligible students.
(b) In awarding scholarships, a scholarship granting organization shall give priority to
an eligible student described in Subsection 
53E-7-401
(1)(a) by:
(i) establishing an August 10 deadline for an eligible student described in Subsection
53E-7-401
(1)(b) to apply for a scholarship; and
(ii) awarding a scholarship to an eligible student described in Subsection
53E-7-401
(1)(b) only if funds exist after awarding scholarships to all eligible students
described in Subsection 
53E-7-401
(1)(a) who have applied and qualify.
(c) Subject to available funds, a scholarship awarded to an eligible student described in
Subsection 
53E-7-401
(1)(b) shall be for a similar term as a scholarship awarded to the eligible
student's sibling.
(3) A scholarship granting organization shall determine a full-year scholarship award to
pay for the cost of one or more scholarship expenses in an amount not more than:
(a) for an eligible student described in Subsection 
53E-7-401
(1)(a) who is:
(i) in kindergarten through grade 12 and whose family income is:
(A) at or below 185% of the federal poverty level, the value of the weighted pupil unit
multiplied by 2.5; [
or
]
(B) 
except as provided in Subsection (3)(a)(i)(C),
 above 185% of the federal poverty
level, the value of the weighted pupil unit multiplied by two; or
(C) above 185% of the federal poverty level and the eligible student would have
received an average of 180 minutes per day or more of special education services in a public
school before transferring to a private school, the value of the weighted pupil unit multiplied by
2.5; or
[
(b)
] 
(ii) in preschool, the value of the weighted pupil unit; or
(b)
 for an eligible student described in Subsection 
53E-7-401
(1)(b), half the value of
the weighted pupil unit.
(4) Eligibility for a scholarship as determined by a multidisciplinary evaluation team
under this program does not establish eligibility for an IEP under the Individuals with
Disabilities Education Act, Subchapter II, 20 U.S.C. Secs. 1400 to 1419, and is not binding on
any LEA that is required to provide an IEP under the Individuals with Disabilities Education
Act.
(5) The scholarship granting organizations shall prepare and disseminate information
on the program to a parent applying for a scholarship on behalf of a student.
Section 4. Section 
53E-7-403
 is amended to read:
53E-7-403.
Qualifying school and qualifying provider requirements.
(1) A qualifying school 
or qualifying provider
 shall:
(a) notify a scholarship granting organization of the qualifying school's 
or qualifying
provider's
 intention to participate in the program;
(b) submit evidence to the scholarship granting organization that the qualifying school
has been approved by the state board under Section 
53E-7-408
; and
(c) submit a signed affidavit to the scholarship granting organization that the qualifying
school 
or qualifying provider
 will comply with the requirements of this part.
(2) A qualifying school 
or qualifying provider
 shall comply with 42 U.S.C. Sec. 1981,
and meet state and local health and safety laws and codes.
(3) Before the beginning of the school year immediately following a school year in
which a qualifying school 
or qualifying provider
 receives scholarship money equal to or more
than [
$100,000
] 
$500,000
, the qualifying school 
or qualifying provider
 shall file with a
scholarship granting organization that allocates scholarship money to the qualifying school:
(a) a surety bond payable to the scholarship granting organization in an amount equal
to the aggregate amount of scholarship money expected to be received during the school year;
or
(b) financial information that demonstrates the financial viability of the qualifying
school 
or qualifying provider
, as required by the scholarship granting organization.
(4) If a scholarship granting organization determines that a qualifying school 
or
qualifying provider
 has violated a provision of this part, the scholarship granting organization
may interrupt disbursement of or withhold scholarship money from the qualifying school 
or
qualifying provider
.
(5) (a) If the state board determines that a qualifying school no longer meets the
eligibility requirements described in Section 
53E-7-408
, the state board may withdraw the state
board's approval of the school.
(b) A private school that does not have the state board's approval under Section
53E-7-408
 may not accept scholarship money under this part.
(6) A qualifying school shall, when administering an annual assessment required under
Section 
53E-7-408
, ensure that the qualifying school uses a norm-referenced assessment.
(7) If a scholarship granting organization determines that a qualifying provider no
longer meets the requirements described in Section 
53E-7-208.5
, the scholarship granting
organization may interrupt disbursement of or withhold scholarship money for the qualifying
provider.
Section 5. Section 
53E-7-404
 is amended to read:
53E-7-404.
State board duties.
(1) The state board shall:
(a) publish on the state board's website:
(i) information about the program; and
(ii) information about each scholarship granting organization;
(b) conduct a financial review or audit of a scholarship granting organization, if the
state board receives evidence of fraudulent practice by the scholarship granting organization;
(c) conduct a criminal background check on each scholarship granting organization
employee and scholarship granting organization officer;
(d) establish uniform financial accounting standards for scholarship granting
organizations;
[
(e) annually calculate the amount of the program donations cap described in Section
53E-7-407
; and
]
[
(f)
] 
(e)
 in accordance with Section 
53E-1-202.1
, annually submit a report on the
program to the Public Education Appropriations Subcommittee that includes:
[
(i) for the 2020-21, 2021-22, 2022-23, and 2023-24 school years, the amount of
tuition and fees a qualifying school charges;
]
[
(ii)
] 
(i)
 administrative costs of the program;
[
(iii)
] 
(ii)
 the number of scholarship students that are eligible students described in
Subsection 
53E-7-401
(1)(a) and the number of scholarship students that are eligible students
described in Subsection 
53E-7-401
(1)(b) from each school district;
[
(iv)
] 
(iii)
 standards used by the scholarship granting organization to determine
whether a student is an eligible student; and
[
(v)
] 
(iv)
 savings to the state and LEAs as a result of scholarship students exiting the
public school system.
(2) (a) In accordance with Subsection (3) and Title 63G, Chapter 6a, Utah Procurement
Code, the state board shall issue a request for proposals and enter into at least one agreement
with an organization that is qualified as tax exempt under Section 501(c)(3), Internal Revenue
Code, to be recognized by the state board as a scholarship granting organization.
(b) An organization that responds to a request for proposals described in Subsection
(2)(a) shall submit the following information in the organization's response:
(i) a copy of the organization's incorporation documents;
(ii) a copy of the organization's Internal Revenue Service determination letter
qualifying the organization as being tax exempt under Section 501(c)(3), Internal Revenue
Code;
(iii) a description of the methodology the organization will use to verify that a student
is an eligible student under this part; and
(iv) a description of the organization's proposed scholarship application process.
(3) (a) The state board shall enter into an agreement described in Subsection (2)(a) with
one scholarship granting organization on or before January 1, 2021.
(b) The state board may enter into an agreement described in Subsection (2)(a) with
additional scholarship granting organizations after January 1, 2023, if the state board makes
rules regarding how multiple scholarship granting organizations may issue tax credit
certificates in accordance with Section 
53E-7-407
.
(c) (i) No later than 10 days after the day on which the state board enters into an
agreement with a scholarship granting organization, the state board shall forward the name and
contact information of the scholarship granting organization to the State Tax Commission.
(ii) If, under Subsection (4)(c)(i), the state board bars a scholarship granting
organization from further participation in the program, the state board shall, no later than 10
days after the day on which the state board bars the scholarship granting organization, forward
the name and contact information of the barred scholarship granting organization to the State
Tax Commission.
(4) (a) If the state board determines that a scholarship granting organization has
violated a provision of this part or state board rule, the state board shall send written notice to
the scholarship granting organization explaining the violation and the remedial action required
to correct the violation.
(b) A scholarship granting organization that receives a notice described in Subsection
(4)(a) shall, no later than 60 days after the day on which the scholarship granting organization
receives the notice, correct the violation and report the correction to the state board.
(c) (i) If a scholarship granting organization that receives a notice described in
Subsection (4)(a) fails to correct a violation in the time period described in Subsection (4)(b),
the state board may bar the scholarship granting organization from further participation in the
program.
(ii) A scholarship granting organization may appeal a decision made by the state board
under Subsection (4)(c)(i) in accordance with Title 63G, Chapter 4, Administrative Procedures
Act.
(d) A scholarship granting organization may not accept program donations while the
scholarship granting organization:
(i) is barred from participating in the program under Subsection (4)(c)(i); or
(ii) has an appeal pending under Subsection (4)(c)(ii).
(e) A scholarship granting organization that has an appeal pending under Subsection
(4)(c)(ii) may continue to administer scholarships from previously donated program donations
during the pending appeal.
(5) The state board shall provide for a process for a scholarship granting organization
to report information as required under Section 
53E-7-405
.
(6) The state board shall make rules in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to administer the program, including rules for:
(a) the administration of scholarships to a qualifying school 
or qualifying provider
receiving scholarship money from a scholarship granting organization that is barred from
participating in the program under Subsection (4)(c)(i);
(b) when an eligible student does not continue in enrollment at a qualifying school 
or
participation in services provided by a qualifying provider
:
(i) requiring the scholarship granting organization to:
(A) notify the state board; and
(B) obtain reimbursement of scholarship money from the qualifying school in which
the eligible student is no longer enrolled 
or qualifying provider in which the eligible student is
no longer participating
; and
(ii) requiring the qualifying school 
or qualifying provider
 in which the eligible student
is no longer enrolled to reimburse scholarship money to the scholarship granting organization;
(c) audit and report requirements as described in Section 
53E-7-405
; and
(d) requiring the scholarship granting organization, in accordance with the Family
Educational Rights and Privacy Act, 20 U.S.C. Sec. 1232g, to submit to the state board:
[
(i) for the 2020-21, 2021-22, 2022-23, and 2023-24 school years, the amount of
tuition and fees a qualifying school charges;
]
[
(ii)
] 
(i)
 the number of scholarship students that are eligible students described in
Subsection 
53E-7-401
(1)(a) and the number of scholarship students that are eligible students
described in Subsection 
53E-7-401
(1)(b) from each school district;
[
(iii)
] 
(ii)
 standards used to determine whether a student is an eligible student; and
[
(iv)
] 
(iii)
 any other information requested by the Public Education Appropriations
Subcommittee for the state board to include in the annual report described in Section
53E-1-202.1
.
Section 6. Section 
53E-7-405
 is amended to read:
53E-7-405.
Program donations -- Scholarship granting organization
requirements -- Legislative appropriations.
(1) A person that makes a donation to a scholarship granting organization to help fund
scholarships through the program may be eligible to receive a nonrefundable tax credit as
described in Sections 
59-7-625
 and 
59-10-1041
.
(2) In accordance with Section 
53E-7-404
, an organization may enter into an
agreement with the state board to be a scholarship granting organization.
(3) A scholarship granting organization shall:
(a) accept program donations and allow a person that makes a program donation to
designate a qualifying school 
or qualifying provider
 to which the donation shall be directed for
scholarships;
(b) adopt an application process in accordance with Subsection (5);
(c) review scholarship applications and determine scholarship awards;
(d) allocate scholarship money to a scholarship student's parent or, on the parent's
behalf, to a qualifying school 
or qualifying provider
 in which the scholarship student is
enrolled 
or participates
;
(e) adopt a process, with state board approval, that allows a parent to use a scholarship
to pay for a nontuition scholarship expense for the scholarship student;
(f) ensure that during the state fiscal year:
(i) at least 92% of the scholarship granting organization's revenue from program
donations 
and other funding sources
 is spent on scholarships;
(ii) up to 5% of the scholarship granting organization's revenue from program
donations 
and other funding sources
 is spent on administration of the program;
(iii) up to 3% of the scholarship granting organization's revenue from program
donations 
and other funding sources
 is spent on marketing and fundraising costs; and
(iv) all revenue from [
program donations'
] interest or investments is spent on
scholarships;
(g) carry forward no more than 60% of the scholarship granting organization's
[
program donations
] 
funds
, less funds for a scholarship that has been awarded, and funds
expended for administration and marketing, from the state fiscal year in which the scholarship
granting organization received the [
program donations
] 
funds
 to the following state fiscal year;
(h) at the end of a state fiscal year, remit to the state treasurer donation amounts greater
than the amount described in Subsection (3)(g);
(i) prohibit a scholarship granting organization employee or officer from handling,
managing, or processing program donations 
or other funds
, if, based on a criminal background
check conducted by the state board in accordance with Section 
53E-7-404
, the state board
identifies the employee or officer as posing a risk to the appropriate use of program donations
or other funds
;
(j) ensure that a scholarship can be transferred during the school year to a different
qualifying school 
or qualifying provider
 that accepts the scholarship student;
(k) report to the state board on or before [
October
] 
November
of each year the
following information, prepared by a certified public accountant:
(i) the name and address of the scholarship granting organization;
(ii) the total number and total dollar amount of program donations 
and other funding
sources
 that the scholarship granting organization received during the previous calendar year;
(iii) (A) the total number and total dollar amount of scholarships the scholarship
granting organization awarded during the previous state fiscal year to eligible students
described in Subsection 
53E-7-401
(1)(a); and
(B) the total number and total dollar amount of scholarships the scholarship granting
organization awarded during the previous state fiscal year to eligible students described in
Subsection 
53E-7-401
(1)(b); and
(iv) the percentage of first-time scholarship recipients who were enrolled in a public
school during the previous school year or who entered kindergarten or a higher grade for the
first time in Utah;
(l) issue tax credit certificates as described in Section 
53E-7-407
; and
(m) 
(i)
 require a parent to notify a scholarship granting organization if the parent's
scholarship recipient:
[
(i)
] 
(A)
 receives scholarship money for tuition expenses; and
[
(ii)
] 
(B)
 does not have continuing enrollment and attendance at a qualifying school[
.
]
;
or
(ii) has transitioned to be a home-based student.
(4) The state treasurer shall deposit the money described in Subsection (3)(h) into the
Income Tax Fund.
(5) (a) An application for a scholarship shall contain an acknowledgment by the
applicant's parent that the qualifying school 
or qualifying provider
 selected by the parent for the
applicant to attend 
or participate in
 using a scholarship is capable of providing the level of
disability services required for the student.
(b) A scholarship application form shall contain the following statement:
"I acknowledge that:
(1) A private school may not provide the same level of disability services that are
provided in a public school;
(2) I will assume full financial responsibility for the education of my scholarship
recipient if I accept this scholarship;
(3) Acceptance of this scholarship has the same effect as a parental refusal to consent to
services as described in 24 C.F.R. Sec. 300.300, issued under the Individuals with Disabilities
Education Act, 20 U.S.C. Sec. 1400 et seq.; and
(4) My child may return to a public school at any time."
(c) Upon acceptance of a scholarship, the parent assumes full financial responsibility
for the education of the scholarship recipient.
(d) Acceptance of a scholarship has the same effect as a parental refusal to consent to
services as described in 24 C.F.R. Sec. 300.300, issued under the Individuals with Disabilities
Education Act, 20 U.S.C. Sec. 1400 et seq.
(e) The creation of the program or granting of a scholarship does not:
(i) imply that a public school did not provide a free and appropriate public education
for a student; or
(ii) constitute a waiver or admission by the state.
(6) A scholarship granting organization shall demonstrate the scholarship granting
organization's financial accountability by annually submitting to the state board a financial
information report that:
(a) complies with the uniform financial accounting standards described in Section
53E-7-404
; and
(b) is prepared by a certified public accountant.
(7) (a) If a scholarship granting organization allocates $500,000 or more in
scholarships annually through the program, the scholarship granting organization shall:
(i) contract for an annual audit, conducted by a certified public accountant who is
independent from:
(A) the scholarship granting organization; and
(B) the scholarship granting organization's accounts and records pertaining to program
donations 
and other funding sources
; and
(ii) in accordance with Subsection (7)(b), report the results of the audit to the state
board for review.
(b) For the report described in Subsection (7)(a)(ii), the scholarship granting
organization shall:
(i) include the scholarship granting organization's financial statements in a format that
meets generally accepted accounting standards; and
(ii) submit the report to the state board no later than [
days after the last day of the
state fiscal year
] 
November 1
.
(c) The certified public accountant shall conduct an audit described in Subsection
(7)(a)(i) in accordance with generally accepted auditing standards and rules made by the state
board.
(d) (i) The state board shall review a report submitted under this section and may
request that the scholarship granting organization revise or supplement the report if the report
is not in compliance with the provisions of this Subsection (7) or rules adopted by the state
board.
(ii) A scholarship granting organization shall provide a revised report or supplement to
the report no later than 45 days after the day on which the state board makes a request
described in Subsection (7)(d)(i).
(8) (a) A scholarship granting organization may not allocate scholarship money to a
qualifying school 
or qualifying provider
 if:
(i) the scholarship granting organization determines that the qualifying school 
or
qualifying provider
 intentionally or substantially misrepresented information on overpayment;
(ii) the qualifying school 
or qualifying provider
 fails to refund an overpayment in a
timely manner; or
(iii) the qualifying school 
or qualifying provider
 routinely fails to provide scholarship
recipients with promised educational goods or services.
(b) A scholarship granting organization shall notify a scholarship recipient if the
scholarship granting organization stops allocation of the recipient's scholarship money to a
qualifying school 
or qualifying provider
 under Subsection (8)(a).
(9) If a scholarship recipient transfers to another qualifying school 
or qualifying
provider
 during the school year, the scholarship granting organization may prorate scholarship
money between the qualifying schools 
or qualifying providers
 according to the time the
scholarship recipient spends at each school 
or each provider
.
(10) A scholarship granting organization may not:
(a) award a scholarship to a relative of the scholarship granting organization's officer
[
or employee
]; or
(b) allocate scholarship money to a qualifying school 
or qualifying provider
 at which
the scholarship recipient has a relative who is an officer or an [
employee
] 
administrator
 of the
qualifying school 
or qualifying provider
.
(11) The Legislature may appropriate funds to the board to be distributed in an equal
amount to each scholarship granting organization for the same purposes program donations are
used.
Section 7. Section 
53E-7-406
 is amended to read:
53E-7-406.
Qualifying school or qualifying provider regulatory autonomy --
Home school autonomy -- Student records -- Scholarship student status.
(1) Nothing in this part:
(a) except as expressly described in this part, grants additional authority to any state
agency or LEA to regulate or control:
(i) a qualifying school, qualifying provider, or home school; or
(ii) students receiving education from a qualifying school, qualifying provider, or home
school;
(b) applies to or otherwise affects the freedom of choice of an out-of-program home
school student, including the curriculum, resources, developmental planning, or any other
aspect of the out-of-program home school student's education; or
(c) expands the regulatory authority of the state, a state office holder, or an LEA to
impose any additional regulation of a qualifying school or qualifying provider beyond any
regulation necessary to administer this part.
(2) A qualifying school or qualifying provider:
(a) has a right to maximum freedom from unlawful governmental control in providing
for the educational needs of a scholarship student who attends or engages with the qualifying
school or qualifying provider; and
(b) is not an agent of the state by virtue of the provider's acceptance of payment from a
scholarship account in accordance with this part.
(3) Except as provided in Section 
53E-7-403
 regarding qualifying schools or qualifying
providers, Section 
53E-7-408
 regarding eligible schools, or Section 
53E-7-408.5
 regarding
eligible service providers, a scholarship granting organization may not require a qualifying
provider to alter the qualifying provider's creed, practices, admissions policies, hiring practices,
or curricula in order to accept scholarship funds.
(4) An LEA or a school in an LEA in which a scholarship student was previously
enrolled shall provide to the scholarship student's parent a copy of all school records relating to
the student that the LEA possesses within 30 days after the day on which the LEA or school
receives the parent's request for the student's records, subject to:
(a) Title 53E, Chapter 9, Student Privacy and Data Protection; and
(b) Family Educational Rights and Privacy Act, 20 U.S.C. Sec. 1232g.
(5) By virtue of a scholarship student's involvement in the program and unless
otherwise expressly provided in statute, a scholarship student is not:
(a) enrolled in the public education system; or
(b) otherwise subject to statute, administrative rules, or other state regulations as if the
student was enrolled in the public education system.
[
(1) Nothing in this part
]:
[
(a) grants additional authority to any state agency or LEA to regulate private schools
except as expressly described in this part; or
]
[
(b) expands the regulatory authority of the state, a state office holder, or a local school
district to impose any additional regulation of a qualifying school beyond those necessary to
enforce the requirements of the program.
]
[
(2) A qualifying school shall be given the maximum freedom to provide for the
educational needs of a scholarship recipient who attends the qualifying school without
unlawful governmental control.
]
[
(3) Except as provided in Section 
53E-7-403
, a qualifying school may not be required
to alter the qualifying school's creed, practices, admission policy, or curriculum in order to
accept scholarship money.
]
[
(4) A local education agency or school in a local education agency in which a
scholarship recipient was previously enrolled shall provide to a qualifying school in which the
scholarship recipient is currently enrolled a copy of all requested school records relating to the
scholarship recipient, subject to:
]
[
(a) Title 53E, Chapter 9, Student Privacy and Data Protection; and
]
[
(b) Family Educational Rights and Privacy Act, 20 U.S.C. Sec. 1232g.
]
Section 8. Section 
53E-7-407
 is amended to read:
53E-7-407.
Tax credit certificates issued by a scholarship granting organization.
(1) In accordance with this section [
and subject to Subsection (3)
], a scholarship
granting organization shall provide a tax credit certificate, on a form provided by the State Tax
Commission, to a person that makes a donation as described in Section 
53E-7-405
.
(2) (a) The scholarship granting organization shall provide the information from a
completed tax credit certificate to the State Tax Commission electronically and in a manner
prescribed by the State Tax Commission.
(b) A scholarship granting organization shall issue a tax credit certificate within 30
days after the day on which a person makes a donation to the program.
[
(3) (a) A scholarship granting organization may not issue a tax credit certificate for a
calendar year if issuing the tax credit certificate will cause the total amount of the tax credit
certificates issued for the calendar year to exceed the program donations cap amount described
in Subsection (4).
]
[
(b)
] 
(3) (a)
 Before accepting a donation to the program from a person, the scholarship
granting organization shall provide the person with notice:
(i) that the donation may not be eligible for a tax credit;
(ii) of the process described in Subsection [
(3)(c)
] 
(3)(b)
; and
(iii) of the total amount of tax credit certificates that the scholarship granting
organization has issued for the calendar year.
[
(c)
] 
(b)
 During a calendar year, a scholarship granting organization shall:
(i) issue tax credit certificates in the order that the scholarship granting organization
received a corresponding donation; and
(ii) track the total amount of program donations received during the year as
corresponding tax credit certificates are issued.
[
(d)
] 
(c)
 If a scholarship granting organization accepts a donation that, when added to
the current total amount of program donations received that year, will exceed the program
donations cap described in Subsection (4), the scholarship granting organization shall issue a
tax credit certificate in the amount that is the difference between the program donations cap
and the total amount of program donations received before the donation was received.
(4) (a) The program donations cap for the 2021 calendar year is $5,940,000.
(b) For a calendar year after 2021, the state board shall calculate the program donations
cap as follows:
(i) if the total program donations for the previous calendar year exceed 90% of the cap
amount for that calendar year, the cap for the current calendar year is the cap amount for the
previous calendar year increased by 10% 
plus a percentage equal to the percentage of growth in
the participation of the program from the previous calendar year
; or
(ii) if the total program donations for the previous calendar year did not exceed 90% of
the cap amount for that calendar year, the cap for the current calendar year is [
the same as the
cap amount for the previous calendar year
] 
increased by a percentage equal to the percentage of
growth in the participation of the program from the previous calendar year
.
(5) A person that receives a tax credit certificate in accordance with this section shall
retain the certificate for the same time period a person is required to keep books and records
under Section 
59-1-1406
.
Section 9. Section 
53E-7-408
 is amended to read:
53E-7-408.
Eligible private schools.
(1) To be eligible to enroll a scholarship student, a private school shall:
(a) have a physical location in Utah where the scholarship students attend classes and
have direct contact with the school's teachers;
(b) (i) contract with an independent licensed certified public accountant to conduct an
Agreed Upon Procedures engagement as adopted by the state board, or obtain an audit and
report from a licensed independent certified public accountant that conforms with the following
requirements:
(A) the audit shall be performed in accordance with generally accepted auditing
standards;
(B) the financial statements shall be presented in accordance with generally accepted
accounting principles; and
(C) the audited financial statements shall be as of a period within the last 12 months;
and
(ii) submit the audit report or report of the agreed upon procedure to the state board
when the private school applies to accept scholarship students;
(c) comply with the antidiscrimination provisions of 42 U.S.C. 2000d;
(d) meet state and local health and safety laws and codes;
(e) provide a written disclosure to the parent of each prospective student, before the
student is enrolled, of:
(i) the special education services that will be provided to the student, including the cost
of those services;
(ii) tuition costs;
(iii) additional fees a parent will be required to pay during the school year; and
(iv) the skill or grade level of the curriculum in which the prospective student will
participate;
(f) (i) administer an annual assessment of each scholarship student's academic
progress; and
(ii) report the results of the assessment described in Subsection (1)(f)(i) to the
scholarship student's parent;
(g) employ or contract with teachers who:
(i) hold baccalaureate or higher degrees;
(ii) have at least three years of teaching experience in public or private schools; or
(iii) have the necessary skills, knowledge, or expertise that qualifies the teacher to
provide instruction:
(A) in the subject or subjects taught; and
(B) to the special needs students taught;
(h) maintain documentation demonstrating that teachers at the private school meet the
qualifications described in Subsection (1)(g);
(i) require the following individuals to submit to a nationwide, fingerprint-based
criminal background check and ongoing monitoring, in accordance with Section 
53G-11-402
,
as a condition for employment or appointment, as authorized by the Adam Walsh Child
Protection and Safety Act of 2006, Pub. L. No. 109-248:
(i) an employee who does not hold a current Utah educator license issued by the state
board under Chapter 6, Education Professional Licensure;
(ii) a contract employee; and
(iii) a volunteer who is given significant unsupervised access to a student in connection
with the volunteer's assignment; and
(j) provide to the parent of a scholarship student the relevant credentials of the teachers
who will be teaching the scholarship student.
(2) A private school is not eligible to enroll scholarship students if:
(a) the private school requires a student to sign a contract waiving the student's rights
to transfer to another qualifying school during the school year;
(b) the audit report submitted under Subsection (1)(b) contains a going concern
explanatory paragraph;
(c) the report of the agreed upon procedures submitted under Subsection (1)(b) shows
that the private school does not have adequate working capital to maintain operations for the
first full year, as determined under Subsection (1)(b); or
(d) the private school charges a scholarship student more in tuition or fees than another
student based solely upon the scholarship student being a scholarship recipient under this part.
[
(3) A home school is not eligible to enroll scholarship students.
]
[
(4)
] 
(3)
 Residential treatment facilities licensed by the state are not eligible to enroll
scholarship students.
[
(5)
] 
(4)
 A private school intending to enroll scholarship students shall submit an
application to the state board.
[
(6)
] 
(5)
 The state board shall:
(a) approve a private school's application to enroll scholarship students, if the private
school meets the eligibility requirements of this section; and
(b) publish on the state board's website, a list of private schools approved under this
section.
[
(7)
] 
(6)
 A private school approved under this section that changes ownership shall:
(a) submit a new application to the state board; and
(b) demonstrate that the private school continues to meet the eligibility requirements of
this section.
Section 10. Section 
53E-7-408.5
 is enacted to read:
 53E-7-408.5.
Eligible service provider.
(1) To be an eligible service provider, a private program or service:
(a) shall provide to the scholarship granting organization:
(i) a federal employer identification number;
(ii) the provider's address and contact information;
(iii) a description of each program or service the provider proposes to offer directly to a
scholarship student; and
(iv) subject to Subsection (2), any other information as required by the scholarship
granting organization;
(b) shall comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d; and
(c) may not act as a consultant, clearing house, or intermediary that connects a
scholarship student with or otherwise facilitates the student's engagement with a program or
service that another entity provides.
(2) The scholarship granting organization shall adopt policies that maximize the
number of eligible service providers, including accepting new providers throughout the school
year, while ensuring education programs or services provided through the program meet
student needs and otherwise comply with this part.
(3) A private program or service intending to receive scholarship funds shall:
(a) submit an application to the scholarship granting organization; and
(b) agree to not refund, rebate, or share scholarship funds with scholarship students or
scholarship students' parents in any manner except remittances or refunds to a scholarship
account in accordance with this part and procedures that the program manager establishes.
(4) The scholarship granting organization shall:
(a) if the private program or service meets the eligibility requirements of this section,
recognize the private program or service as an eligible service provider and approve a private
program or service's application to receive scholarship funds on behalf of a scholarship student;
and
(b) make available to the public a list of eligible service providers approved under this
section.
(5) A private program or service approved under this section that changes ownership
shall:
(a) cease operation as an eligible service provider until:
(i) the program or service submits a new application to the scholarship granting
organization; and
(ii) the scholarship granting organization approves the new application; and
(b) demonstrate that the private program or service continues to meet the eligibility
requirements of this section.
Section 11. Section 
53E-7-410
 is amended to read:
53E-7-410.
Background checks for scholarship granting organizations -- State
board responsibilities -- Bureau responsibilities -- Fees.
(1) As used in this section:
(a) "Applicant" means an employee or officer of a scholarship granting organization.
(b) "Bureau" means the Bureau of Criminal Identification created in Section 
53-10-201
within the Department of Public Safety.
(c) "Department" means the Department of Public Safety.
(d) "Division" means the Criminal Investigations and Technical Services Division
created in Section 
53-10-103
.
(e) "FBI" means the Federal Bureau of Investigation.
(f) "FBI Rap Back System" means the rap back system maintained by the FBI.
(g) "Personal identifying information" means:
(i) current name;
(ii) former names;
(iii) nicknames;
(iv) aliases;
(v) date of birth;
(vi) address;
(vii) telephone number;
(viii) driver license number or other government-issued identification number;
(ix) social security number; and
(x) fingerprints.
(h) "Rap back system" means a system that enables authorized entities to receive
ongoing status notifications of any criminal history reported on individuals whose fingerprints
are registered in the system.
(i) "WIN Database" means the Western Identification Network Database that consists
of eight western states sharing one electronic fingerprint database.
(2) The state board shall:
(a) require an applicant to submit to a nationwide criminal background check and
ongoing monitoring in accordance with Section 
53E-7-404
;
(b) collect the following from an applicant:
(i) personal identifying information;
(ii) a fee described in Subsection (4); and
(iii) consent, on a form specified by the state board, for:
(A) an initial fingerprint-based background check by the FBI and bureau;
(B) retention of personal identifying information for ongoing monitoring through
registration with the systems described in Subsection (3); and
(C) disclosure of any criminal history information to the state board;
(c) submit an applicant's personal identifying information to the bureau for:
(i) an initial fingerprint-based background check by the FBI and bureau; and
(ii) ongoing monitoring through registration with the systems described in Subsection
(3) if the results of the initial background check do not contain disqualifying criminal history
information as determined by the state board in accordance with Section 
53E-7-404
;
(d) identify the appropriate privacy risk mitigation strategy that will be used to ensure
that the state board only receives notifications for individuals with whom the state board
maintains an authorizing relationship; and
(e) submit the information to the bureau for ongoing monitoring through registration
with the systems described in Subsection (3)(a).
(3) The bureau shall:
(a) upon request from the state board, register the fingerprints submitted by the state
board as part of a background check with:
(i) the WIN Database rap back system, or any successor system; and
(ii) the FBI Rap Back System;
(b) notify the state board when a new entry is made against an individual whose
fingerprints are registered with the rap back systems described in Subsection (3)(a) regarding:
(i) an alleged offense; or
(ii) a conviction, including a plea in abeyance;
(c) assist the state board to identify the appropriate privacy risk mitigation strategy that
is to be used to ensure that the state board only receives notifications for individuals with
whom the authorized entity maintains an authorizing relationship; and
(d) collaborate with the state board to provide training to appropriate state board
employees on the notification procedures and privacy risk mitigation strategies described in
this section.
(4) (a) The division shall impose fees set in accordance with Section 
63J-1-504
 for an
applicant fingerprint card, name check, and to register fingerprints under this section.
(b) Funds generated under this Subsection (4) shall be deposited into the General Fund
as a dedicated credit by the department to cover the costs incurred in providing the information.
Section 12. Section 
53F-4-302
 is amended to read:
53F-4-302.
Scholarship program created -- Qualifications.
(1) The Carson Smith Scholarship Program is created to award scholarships to students
with disabilities to attend a private school.
(2) To qualify for a scholarship:
(a) the student's custodial parent shall reside within Utah;
(b) the student shall have one or more of the following disabilities:
(i) an intellectual disability;
(ii) deafness or being hard of hearing;
(iii) a speech or language impairment;
(iv) a visual impairment;
(v) a serious emotional disturbance;
(vi) an orthopedic impairment;
(vii) autism;
(viii) traumatic brain injury;
(ix) other health impairment;
(x) specific learning disabilities;
(xi) deafblindness; or
(xii) a developmental delay, provided the student is at least three years [
of age,
pursuant
] 
old, as described
 to Subsection (2)(c), and is younger than eight years [
of age
] 
old
;
(c) the student shall be at least three years [
of age
] 
old
 before September 2 of the year
in which admission to a private school is sought and under 19 years [
of age
] 
old
 on the last day
of the school year as determined by the private school, or, if the individual has not graduated
from high school, will be under 22 years [
of age
] 
old
 on the last day of the school year as
determined by the private school; and
(d) except as provided in Subsection (3), the student shall:
(i) be enrolled in a Utah public school in the school year prior to the school year the
student will be enrolled in a private school;
(ii) have an IEP; and
(iii) have obtained acceptance for admission to an eligible private school.
(3) The requirements of Subsection (2)(d) do not apply in the following circumstances:
(a) the student is enrolled or has obtained acceptance for admission to an eligible
private school that has previously served students with disabilities; and
(b) an assessment team is able to readily determine with reasonable certainty:
(i) that the student has a disability listed in Subsection (2)(b) and would qualify for
special education services, if enrolled in a public school; and
(ii) for the purpose of establishing the scholarship amount, the appropriate level of
special education services which should be provided to the student.
(4) (a) [
To
] 
Except as provided in Subsection (11)(a), to
 receive a full-year scholarship
under this part, a parent of a student shall submit to the LEA where the student is enrolled an
application on or before the August 15 immediately preceding the first day of the school year
for which the student would receive the scholarship.
(b) [
The
] 
Except as provided in Subsection (11)(b), the
 state board may waive the
full-year scholarship deadline described in Subsection (4)(a).
(c) An application for a scholarship shall contain an acknowledgment by the parent that
the selected school is qualified and capable of providing the level of special education services
required for the student.
(5) (a) The scholarship application form shall contain the following statement:
"I acknowledge that:
(1) A private school may not provide the same level of special education services that
are provided in a public school;
(2) I will assume full financial responsibility for the education of my scholarship
student if I accept this scholarship;
(3) Acceptance of this scholarship has the same effect as a parental refusal to consent to
services pursuant to Section 614(a)(1) of the Individuals with Disabilities Education Act, 20
U.S.C. Sec. 1400 et seq.; and
(4) My child may return to a public school at any time."
(b) Upon acceptance of the scholarship, the parent assumes full financial responsibility
for the education of the scholarship student.
(c) Acceptance of a scholarship has the same effect as a parental refusal to consent to
services pursuant to Section 614(a)(1) of the Individuals with Disabilities Education Act, 20
U.S.C. Sec. 1400 et seq.
(d) The creation of the scholarship program or granting of a scholarship does not:
(i) imply that a public school did not provide a free and appropriate public education
for a student; or
(ii) constitute a waiver or admission by the state.
(6) (a) Except as provided in Subsection (6)(b), a scholarship shall remain in force for
the lesser of:
(i) three years; or
(ii) until the student is determined ineligible for special education services.
(b) If a student is determined ineligible for special education services as described in
Subsection (6)(a)(ii) before the end of a school year, the student may remain enrolled at the
private school and qualifies for the scholarship until the end of the school year.
(c) [
A
] 
Except as provided in Subsection (11)(c), a
 scholarship shall be extended for an
additional three years, if:
(i) the student is evaluated by an assessment team; and
(ii) the assessment team determines that the student would qualify for special education
services, if enrolled in a public school.
(d) The assessment team shall determine the appropriate level of special education
services which should be provided to the student for the purpose of setting the scholarship
amount.
(e) [
A
] 
Except as provided in Subsection (11)(c), a
 scholarship shall be extended for
successive three-year periods as provided in Subsections (6)(a) and (c):
(i) until the student graduates from high school; or
(ii) if the student does not graduate from high school, until the student is [
age
] 22 
years
old
.
(7) A student's parent, at any time, may remove the student from a private school and
place the student in another eligible private school and retain the scholarship.
(8) A scholarship student:
(a) may participate in the Statewide Online Education Program described in Part 5,
Statewide Online Education Program; and
(b) may not participate in a dual enrollment program pursuant to Section 
53G-6-702
.
(9) The parents of a scholarship student have the authority to choose the private school
that will best serve the interests and educational needs of that student, which may be a sectarian
or nonsectarian school, and to direct the scholarship resources available for that student solely
as a result of their genuine and independent private choices.
(10) 
The state board shall:
(a) notify the parents of a scholarship student in writing of the termination of the
existing scholarship program including when the final scholarship payment will be awarded;
and
(b) direct current recipients and prospective applicants to the website for the Carson
Smith Opportunity Scholarship Program described in Title 53E, Chapter 7, The Carson Smith
Opportunity Scholarship Program.
[
(a) An LEA shall notify in writing the parents of students enrolled in the LEA who
have an IEP of the availability of a scholarship to attend a private school through the Carson
Smith Scholarship Program.
]
[
(b) The notice described under Subsection (10)(a) shall:
]
[
(i) be provided no later than 30 days after the student initially qualifies for an IEP;
]
[
(ii) be provided annually no later than February 1 to all students who have an IEP;
and
]
[
(iii) include the address of the Internet website maintained by the state board that
provides prospective applicants with detailed program information and application forms for
the Carson Smith Scholarship Program.
]
[
(c) An LEA or school within an LEA that has an enrolled student who has an IEP
shall post the address of the Internet website maintained by the state board that provides
prospective applicants with detailed program information and application forms for the Carson
Smith Scholarship Program on the LEA's or school's website, if the LEA or school has one.
]
(11) After the 2023-2024 school year, an LEA or the state board may not:
(a) accept a new application;
(b) provide a waiver of a full-year application; or
(c) extend an existing scholarship as described in Subsections (6)(c) and (e).
Section 13. Section 
53F-4-304
 is amended to read:
53F-4-304.
Scholarship payments.
(1) (a) The state board shall award scholarships subject to the availability of money
appropriated by the Legislature for that purpose.
(b) The Legislature shall annually appropriate money to the state board from the
General Fund to make scholarship payments.
[
(c) The Legislature shall annually increase the amount of money appropriated under
Subsection (1)(b) by an amount equal to the product of:
]
[
(i) the average scholarship amount awarded as of December 1 in the previous year;
and
]
[
(ii) the product of:
]
[
(A) the number of students in preschool through grade 12 in public schools statewide
who have an IEP on December 1 of the previous year; and
]
[
(B) 0.0007.
]
[
(d)
] 
(c)
 If the number of scholarship students as of December 1 in any school year
equals or exceeds 7% of the number of students in preschool through grade 12 in public
schools statewide who have an IEP as of December 1 in the same school year, the Public
Education Appropriations Subcommittee shall study the requirement to increase appropriations
for scholarship payments as provided in this section.
[
(e)
] 
(d)
 (i) If money is not available to pay for all scholarships requested, the state
board shall allocate scholarships on a random basis except that the state board shall give
preference to students who received scholarships in the previous school year.
(ii) If money is insufficient in a school year to pay for all the continuing scholarships,
the state board may not award new scholarships during that school year and the state board
shall prorate money available for scholarships among the eligible students who received
scholarships in the previous year.
(2) Except as provided in Subsection (4), the state board shall award full-year
scholarships in the following amounts:
(a) for a student who received an average of 180 minutes per day or more of special
education services in a public school before transferring to a private school, an amount not to
exceed the lesser of:
(i) the value of the weighted pupil unit multiplied by 2.5; or
(ii) the private school tuition and fees; and
(b) for a student who received an average of less than 180 minutes per day of special
education services in a public school before transferring to a private school, an amount not to
exceed the lesser of:
(i) the value of the weighted pupil unit multiplied by 1.5; or
(ii) the private school tuition and fees.
(3) The scholarship amount for a student enrolled in a half-day kindergarten or part-day
preschool program shall be the amount specified in Subsection (2)(a) or (b) multiplied by .55.
(4) If a student leaves a private school before the end of a fiscal quarter:
(a) the private school is only entitled to the amount of scholarship equivalent to the
number of days that the student attended the private school; and
(b) the private school shall remit a prorated amount of the scholarship to the state board
in accordance with the procedures described in rules adopted by the state board in accordance
with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(5) For the amount of funds remitted under Subsection (4)(b), the state board shall:
(a) make the amount available to the student to enroll immediately in another
qualifying private school; or
(b) refund the amount back to the Carson Smith Scholarship Program account to be
available to support the costs of another scholarship.
(6) (a) The state board shall make an additional allocation on a random basis before
June 30 each year only:
(i) if there are sufficient remaining funds in the program; and
(ii) for scholarships for students enrolled in a full-day preschool program.
(b) If the state board awards a scholarship under Subsection (6)(a), the scholarship
amount or supplement may not exceed the lesser of:
(i) the value of the weighted pupil unit multiplied by 1.0; or
(ii) the private school tuition and fees.
(c) The state board shall, when preparing annual growth projection numbers for the
Legislature, include the annual number of applications for additional allocations described in
Subsection (6)(a).
(7) (a) The scholarship amount for a student who receives a waiver under Subsection
53F-4-302
(3) shall be based upon the assessment team's determination of the appropriate level
of special education services to be provided to the student.
(b) (i) If the student requires an average of 180 minutes per day or more of special
education services, a full-year scholarship shall be equal to the amount specified in Subsection
(2)(a).
(ii) If the student requires less than an average of 180 minutes per day of special
education services, a full-year scholarship shall be equal to the amount specified in Subsection
(2)(b).
(iii) If the student is enrolled in a half-day kindergarten or part-day preschool program,
a full-year scholarship is equal to the amount specified in Subsection (3).
(8) (a) Except as provided in Subsection (8)(b), upon review and receipt of
documentation that verifies a student's admission to, or continuing enrollment and attendance
at, a private school, the state board shall make scholarship payments quarterly in four equal
amounts in each school year in which a scholarship is in force.
(b) In accordance with state board rule, made in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, the state board may make a scholarship payment before
the first quarterly payment of the school year, if a private school requires partial payment of
tuition before the start of the school year to reserve space for a student admitted to the school.
(9) A parent of a scholarship student shall notify the state board if the student does not
have continuing enrollment and attendance at an eligible private school.
(10) Before scholarship payments are made, the state board shall cross-check
enrollment lists of scholarship students, LEAs, and youth in custody to ensure that scholarship
payments are not erroneously made.
Section 14. Section 
53F-6-401
 is amended to read:
53F-6-401.
Definitions.
As used in this part:
(1) "Eligible student" means a student:
(a) who is eligible to participate in public school, in kindergarten, or grades 1 through
12;
(b) who is a resident of the state;
(c) who, during the school year for which the student is applying for a scholarship
account:
(i) does not receive a scholarship under:
(A) the Carson Smith Scholarship Program established in Section 
53F-4-302
; or
(B) the [
Special Needs
] 
Carson Smith
 Opportunity Scholarship Program established in
Section 
53E-7-402
; and
(ii) except for a student who is enrolled part-time in accordance with Section
53G-6-702
, is not enrolled in an LEA upon receiving the scholarship;
(d) whose eligibility is not suspended or disqualified under Section 
53F-6-401
; and
(e) who completes, to maintain eligibility, the portfolio requirement described in
Subsection 
53F-6-402
(3)(d).
(2) "Federal poverty level" means the United States poverty level as defined by the
most recently revised poverty income guidelines published by the United States Department of
Health and Human Services in the Federal Register.
(3) (a) "Home-based scholarship student" means a student who:
(i) is eligible to participate in public school, in kindergarten or grades 1 through 12;
(ii) is excused from enrollment in an LEA in accordance with Section 
53G-6-204
 to
attend a home school; and
(iii) receives a benefit of scholarship funds.
(b) "Home-based scholarship student" does not mean a home school student who does
not receive a scholarship under the program.
(4) "Program manager" means an organization that:
(a) is qualified as tax exempt under Section 501(c)(3), Internal Revenue Code;
(b) is not affiliated with any international organization;
(c) does not harvest data for the purpose of reproducing or distributing the data to other
entities;
(d) has no involvement in guiding or directing any curriculum or curriculum standards;
(e) does not manage or otherwise administer a scholarship under:
(i) the Carson Smith Scholarship Program established in Section 
53F-4-302
; or
(ii) the [
Special Needs
] 
Carson Smith
 Opportunity Scholarship Program established in
Section 
53E-7-402
; and
(f) an agreement with the state board recognizes as a program manager, in accordance
with this part.
(5) (a) "Program manager employee" means an individual working for the program
manager in a position in which the individual's salary, wages, pay, or compensation, including
as a contractor, is paid from scholarship funds.
(b) "Program manager employee" does not include:
(i) an individual who volunteers for the program manager or for a qualifying provider;
(ii) an individual who works for a qualifying provider; or
(iii) a qualifying provider.
(6) "Program manager officer" means:
(a) a member of the board of a program manager; or
(b) the chief administrative officer of a program manager.
(7) "Qualifying provider" means one of the following entities that is not a public school
and is autonomous and not an agent of the state, in accordance with Section 
53F-6-406
:
(a) an eligible school that the program manager approves in accordance with Section
53F-6-408
; or
(b) an eligible service provider that the program manager approves in accordance with
Section 
53F-6-409
.
(8) "Relative" means a father, mother, husband, wife, son, daughter, sister, brother,
uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law,
sister-in-law, son-in-law, or daughter-in-law.
(9) "Scholarship account" means the account to which a program manager allocates
funds for the payment of approved scholarship expenses in accordance with this part.
(10) "Scholarship expense" means an expense described in Section 
53F-6-402
 that a
parent or scholarship student incurs in the education of the scholarship student for a service or
goods that a qualifying provider provides, including:
(a) tuition and fees of a qualifying provider;
(b) fees and instructional materials at a technical college;
(c) tutoring services;
(d) fees for after-school or summer education programs;
(e) textbooks, curricula, or other instructional materials, including any supplemental
materials or associated online instruction that a curriculum or a qualifying provider
recommends;
(f) educational software and applications;
(g) supplies or other equipment related to a scholarship student's educational needs;
(h) computer hardware or other technological devices that are intended primarily for a
scholarship student's educational needs;
(i) fees for the following examinations, or for a preparation course for the following
examinations, that the program manager approves:
(i) a national norm-referenced or standardized assessment described in Section
53F-6-410
, an advanced placement examination, or another similar assessment;
(ii) a state-recognized industry certification examination; and
(iii) an examination related to college or university admission;
(j) educational services for students with disabilities from a licensed or accredited
practitioner or provider, including occupational, behavioral, physical, audiology, or
speech-language therapies;
(k) contracted services that the program manager approves and that an LEA provides,
including individual classes, after-school tutoring services, transportation, or fees or costs
associated with participation in extracurricular activities;
(l) ride fees or fares for a fee-for-service transportation provider to transport the
scholarship student to and from a qualifying provider, not to exceed $750 in a given school
year;
(m) expenses related to extracurricular activities, field trips, educational supplements,
and other educational experiences; or
(n) any other expense for a good or service that:
(i) a parent or scholarship student incurs in the education of the scholarship student;
and
(ii) the program manager approves, in accordance with Subsection (4)(d).
(11) "Scholarship funds" means:
(a) funds that the Legislature appropriates for the program; and
(b) interest that scholarship funds accrue.
(12) (a) "Scholarship student" means an eligible student, including a home-based
scholarship student, for whom the program manager establishes and maintains a scholarship
account in accordance with this part.
(b) "Scholarship student" does not include a home school student who does not receive
a scholarship award under the program.
(13) "Utah Fits All Scholarship Program" or "program" means the scholarship program
established in Section 
53F-6-402
.
Section 15. Section 
59-7-109.1
 is amended to read:
59-7-109.1.
Charitable contributions to the Carson Smith Opportunity
Scholarship Program.
(1) Notwithstanding anything to the contrary in Section 
59-7-109
, a taxpayer may not
subtract a charitable contribution that meets the requirements of Section 
59-7-109
 to the extent
that the taxpayer claims a tax credit under Section 
59-7-625
 for the same charitable
contribution.
(2) This section supersedes any conflicting provisions of Utah law.
Section 16. Section 
59-7-625
 is amended to read:
59-7-625.
Nonrefundable tax credit for donation to the Carson Smith
Opportunity Scholarship Program.
(1) A taxpayer that makes a donation to the [
Special Needs
] 
Carson Smith
 Opportunity
Scholarship Program established in Section 
53E-7-402
 may claim a nonrefundable tax credit
equal to 100% of the amount stated on a tax credit certificate issued in accordance with Section
53E-7-407
.
(2) If the amount of a tax credit listed on the tax credit certificate exceeds a taxpayer's
liability under this chapter for a taxable year, the taxpayer:
(a) may carry forward the amount of the tax credit exceeding the liability for a period
that does not exceed the next three taxable years; and
(b) may carry back the amount of the tax credit that exceeds the taxpayer's tax liability
to the previous taxable year.
Section 17. Section 
59-10-1041
 is amended to read:
59-10-1041.
Nonrefundable tax credit for donation to the Carson Smith
Opportunity Scholarship Program.
(1) Except as provided in Subsection (3), a claimant, estate, or trust that makes a
donation to the [
Special Needs
] 
Carson Smith
 Opportunity Scholarship Program established in
Section 
53E-7-402
 may claim a nonrefundable tax credit equal to 100% of the amount stated
on a tax credit certificate issued in accordance with Section 
53E-7-407
.
(2) If the amount of a tax credit listed on the tax credit certificate exceeds a claimant's,
estate's, or trust's tax liability under this chapter for a taxable year, the claimant, estate, or trust:
(a) may carry forward the amount of the tax credit exceeding the liability for a period
that does not exceed the next three taxable years; and
(b) may carry back the amount of the tax credit that exceeds the claimant's, estate's, or
trust's tax liability to the previous taxable year.
(3) A claimant, estate, or trust may not claim a credit described in Subsection (1) to the
extent the claimant, estate, or trust claims a donation described in Subsection (1) as an itemized
deduction on the claimant's, estate's, or trust's federal individual income tax return for that
taxable year.
Section 18. Section 
63I-2-253 (Superseded 07/01/24)
 is amended to read:
63I-2-253 (Superseded 07/01/24).
Repeal dates: Titles 53 through 53G.
(1) Section 
53-1-118
 is repealed on July 1, 2024.
(2) Section 
53-1-120
 is repealed on July 1, 2024.
(3) Section 
53-7-109
 is repealed on July 1, 2024.
(4) Section 
53-22-104
 is repealed December 31, 2023.
(5) Section 
53B-6-105.7
 is repealed July 1, 2024.
(6) Section 
53B-7-707
 regarding performance metrics for technical colleges is repealed
July 1, 2023.
(7) Section 
53B-8-114
 is repealed July 1, 2024.
(8) The following provisions, regarding the Regents' scholarship program, are repealed
on July 1, 2023:
(a) in Subsection 
53B-8-105
(12), the language that states, "or any scholarship
established under Sections 
53B-8-202
 through 
53B-8-205
";
(b) Section 
53B-8-202
;
(c) Section 
53B-8-203
;
(d) Section 
53B-8-204
; and
(e) Section 
53B-8-205
.
(9) Section 
53B-10-101
 is repealed on July 1, 2027.
(10) Subsection 
53E-1-201
(1)(s) regarding the report by the Educational Interpretation
and Translation Services Procurement Advisory Council is repealed July 1, 2024.
(11) Section 
53E-1-202.2
, regarding a Public Education Appropriations Subcommittee
evaluation and recommendations, is repealed January 1, 2024.
(12) Subsection 
53E-7-401
(1)(a)(iv)(A) is repealed July 1, 2027.
[
(12)
] 
(13)
 Section 
53F-2-209
, regarding local education agency budgetary flexibility,
is repealed July 1, 2024.
[
(13)
] 
(14)
 Subsection 
53F-2-314
(4), relating to a one-time expenditure between the
at-risk WPU add-on funding and previous at-risk funding, is repealed January 1, 2024.
[
(14)
] 
(15)
 Section 
53F-2-524
, regarding teacher bonuses for extra work assignments,
is repealed July 1, 2024.
(16) Title 53F, Chapter 4, Part 3, Carson Smith Scholarship Program, is repealed July
1, 2027.
[
(15)
] 
(17)
 Section 
53F-5-221
, regarding a management of energy and water pilot
program, is repealed July 1, 2028.
(18) Subsection 
53F-6-401
(1)(c)(i)(A) is repealed July 1, 2027.
(19) Subsection 
53F-6-401
(4)(e)(i) is repealed July 1, 2027.
[
(16)
] 
(20)
 Section 
53F-9-401
 is repealed on July 1, 2024.
[
(17)
] 
(21)
 Section 
53F-9-403
 is repealed on July 1, 2024.
(22) Subsection 
53G-11-401
(8)(a) is repealed July 1, 2027.
[
(18)
] 
(23)
 On July 1, 2023, when making changes in this section, the Office of
Legislative Research and General Counsel shall, in addition to the office's authority under
Section 
36-12-12
, make corrections necessary to ensure that sections and subsections identified
in this section are complete sentences and accurately reflect the office's perception of the
Legislature's intent.
Section 19. Section 
63I-2-253 (Effective 07/01/24)
 is amended to read:
63I-2-253 (Effective 07/01/24).
Repeal dates: Titles 53 through 53G.
(1) Subsection 
53-1-104
(1)(b), regarding the Air Ambulance Committee, is repealed
July 1, 2024.
(2) Section 
53-1-118
 is repealed on July 1, 2024.
(3) Section 
53-1-120
 is repealed on July 1, 2024.
(4) Section 
53-2d-107
, regarding the Air Ambulance Committee, is repealed July 1,
2024.
(5) In relation to the Air Ambulance Committee, on July 1, 2024, Subsection
53-2d-702
(1)(a) is amended to read:
"(a) provide the patient or the patient's representative with the following information
before contacting an air medical transport provider:
(i) which health insurers in the state the air medical transport provider contracts with;
(ii) if sufficient data is available, the average charge for air medical transport services
for a patient who is uninsured or out of network; and
(iii) whether the air medical transport provider balance bills a patient for any charge not
paid by the patient's health insurer; and".
(6) Section 
53-7-109
 is repealed on July 1, 2024.
(7) Section 
53-22-104
 is repealed December 31, 2023.
(8) Section 
53B-6-105.7
 is repealed July 1, 2024.
(9) Section 
53B-7-707
 regarding performance metrics for technical colleges is repealed
July 1, 2023.
(10) Section 
53B-8-114
 is repealed July 1, 2024.
(11) The following provisions, regarding the Regents' scholarship program, are
repealed on July 1, 2023:
(a) in Subsection 
53B-8-105
(12), the language that states, "or any scholarship
established under Sections 
53B-8-202
 through 
53B-8-205
";
(b) Section 
53B-8-202
;
(c) Section 
53B-8-203
;
(d) Section 
53B-8-204
; and
(e) Section 
53B-8-205
.
(12) Section 
53B-10-101
 is repealed on July 1, 2027.
(13) Subsection 
53E-7-401
(1)(a)(iv)(A) is repealed July 1, 2027.
[
(13)
] 
(14)
 Subsection 
53E-1-201
(1)(s) regarding the report by the Educational
Interpretation and Translation Services Procurement Advisory Council is repealed July 1, 2024.
[
(14)
] 
(15)
 Section 
53E-1-202.2
, regarding a Public Education Appropriations
Subcommittee evaluation and recommendations, is repealed January 1, 2024.
[
(15)
] 
(16)
 Section 
53F-2-209
, regarding local education agency budgetary flexibility,
is repealed July 1, 2024.
[
(16)
] 
(17)
 Subsection 
53F-2-314
(4), relating to a one-time expenditure between the
at-risk WPU add-on funding and previous at-risk funding, is repealed January 1, 2024.
[
(17)
] 
(18)
 Section 
53F-2-524
, regarding teacher bonuses for extra work assignments,
is repealed July 1, 2024.
(19) Title 53F, Chapter 4, Part 3, Carson Smith Scholarship Program, is repealed July
1, 2027.
[
(18)
] 
(20)
 Section 
53F-5-221
, regarding a management of energy and water pilot
program, is repealed July 1, 2028.
(21) Subsection 
53F-6-401
(1)(c)(i)(A) is repealed July 1, 2027.
(22) Subsection 
53F-6-401
(4)(e)(i) is repealed July 1, 2027.
[
(19)
] 
(23)
 Section 
53F-9-401
 is repealed on July 1, 2024.
[
(20)
] 
(24)
 Section 
53F-9-403
 is repealed on July 1, 2024.
(25) Subsection 
53G-11-401
(8)(a) is repealed July 1, 2027.
[
(21)
] 
(26)
 On July 1, 2023, when making changes in this section, the Office of
Legislative Research and General Counsel shall, in addition to the office's authority under
Section 
36-12-12
, make corrections necessary to ensure that sections and subsections identified
in this section are complete sentences and accurately reflect the office's perception of the
Legislature's intent.
Section 20. Section 
63I-2-267
 is amended to read:
63I-2-267.
Repeal dates: Title 67.
Subsection 
67-3-1
(21)(a)(ii) is repealed July 1, 2027.
Section 21. Section 
67-3-1
 is amended to read:
67-3-1.
Functions and duties.
(1) (a) The state auditor is the auditor of public accounts and is independent of any
executive or administrative officers of the state.
(b) The state auditor is not limited in the selection of personnel or in the determination
of the reasonable and necessary expenses of the state auditor's office.
(2) The state auditor shall examine and certify annually in respect to each fiscal year,
financial statements showing:
(a) the condition of the state's finances;
(b) the revenues received or accrued;
(c) expenditures paid or accrued;
(d) the amount of unexpended or unencumbered balances of the appropriations to the
agencies, departments, divisions, commissions, and institutions; and
(e) the cash balances of the funds in the custody of the state treasurer.
(3) (a) The state auditor shall:
(i) audit each permanent fund, each special fund, the General Fund, and the accounts of
any department of state government or any independent agency or public corporation as the law
requires, as the auditor determines is necessary, or upon request of the governor or the
Legislature;
(ii) perform the audits in accordance with generally accepted auditing standards and
other auditing procedures as promulgated by recognized authoritative bodies; and
(iii) as the auditor determines is necessary, conduct the audits to determine:
(A) honesty and integrity in fiscal affairs;
(B) accuracy and reliability of financial statements;
(C) effectiveness and adequacy of financial controls; and
(D) compliance with the law.
(b) If any state entity receives federal funding, the state auditor shall ensure that the
audit is performed in accordance with federal audit requirements.
(c) (i) The costs of the federal compliance portion of the audit may be paid from an
appropriation to the state auditor from the General Fund.
(ii) If an appropriation is not provided, or if the federal government does not
specifically provide for payment of audit costs, the costs of the federal compliance portions of
the audit shall be allocated on the basis of the percentage that each state entity's federal funding
bears to the total federal funds received by the state.
(iii) The allocation shall be adjusted to reflect any reduced audit time required to audit
funds passed through the state to local governments and to reflect any reduction in audit time
obtained through the use of internal auditors working under the direction of the state auditor.
(4) (a) Except as provided in Subsection (4)(b), the state auditor shall, in addition to
financial audits, and as the auditor determines is necessary, conduct performance and special
purpose audits, examinations, and reviews of any entity that receives public funds, including a
determination of any or all of the following:
(i) the honesty and integrity of all the entity's fiscal affairs;
(ii) whether the entity's administrators have faithfully complied with legislative intent;
(iii) whether the entity's operations have been conducted in an efficient, effective, and
cost-efficient manner;
(iv) whether the entity's programs have been effective in accomplishing the intended
objectives; and
(v) whether the entity's management, control, and information systems are adequate,
effective, and secure.
(b) The auditor may not conduct performance and special purpose audits,
examinations, and reviews of any entity that receives public funds if the entity:
(i) has an elected auditor; and
(ii) has, within the entity's last budget year, had the entity's financial statements or
performance formally reviewed by another outside auditor.
(5) The state auditor:
(a) shall administer any oath or affirmation necessary to the performance of the duties
of the auditor's office; and
(b) may:
(i) subpoena witnesses and documents, whether electronic or otherwise; and
(ii) examine into any matter that the auditor considers necessary.
(6) The state auditor may require all persons who have had the disposition or
management of any property of this state or its political subdivisions to submit statements
regarding the property at the time and in the form that the auditor requires.
(7) The state auditor shall:
(a) except where otherwise provided by law, institute suits in Salt Lake County in
relation to the assessment, collection, and payment of revenues against:
(i) persons who by any means have become entrusted with public money or property
and have failed to pay over or deliver the money or property; and
(ii) all debtors of the state;
(b) collect and pay into the state treasury all fees received by the state auditor;
(c) perform the duties of a member of all boards of which the state auditor is a member
by the constitution or laws of the state, and any other duties that are prescribed by the
constitution and by law;
(d) stop the payment of the salary of any state official or state employee who:
(i) refuses to settle accounts or provide required statements about the custody and
disposition of public funds or other state property;
(ii) refuses, neglects, or ignores the instruction of the state auditor or any controlling
board or department head with respect to the manner of keeping prescribed accounts or funds;
or
(iii) fails to correct any delinquencies, improper procedures, and errors brought to the
official's or employee's attention;
(e) establish accounting systems, methods, and forms for public accounts in all taxing
or fee-assessing units of the state in the interest of uniformity, efficiency, and economy;
(f) superintend the contractual auditing of all state accounts;
(g) subject to Subsection (8)(a), withhold state allocated funds or the disbursement of
property taxes from a state or local taxing or fee-assessing unit, if necessary, to ensure that
officials and employees in those taxing units comply with state laws and procedures in the
budgeting, expenditures, and financial reporting of public funds;
(h) subject to Subsection (9), withhold the disbursement of tax money from any county,
if necessary, to ensure that officials and employees in the county comply with Section
59-2-303.1
; and
(i) withhold state allocated funds or the disbursement of property taxes from a local
government entity or a limited purpose entity, as those terms are defined in Section 
67-1a-15
 if
the state auditor finds the withholding necessary to ensure that the entity registers and
maintains the entity's registration with the lieutenant governor, in accordance with Section
67-1a-15
.
(8) (a) Except as otherwise provided by law, the state auditor may not withhold funds
under Subsection (7)(g) until a state or local taxing or fee-assessing unit has received formal
written notice of noncompliance from the auditor and has been given 60 days to make the
specified corrections.
(b) If, after receiving notice under Subsection (8)(a), a state or independent local
fee-assessing unit that exclusively assesses fees has not made corrections to comply with state
laws and procedures in the budgeting, expenditures, and financial reporting of public funds, the
state auditor:
(i) shall provide a recommended timeline for corrective actions;
(ii) may prohibit the state or local fee-assessing unit from accessing money held by the
state; and
(iii) may prohibit a state or local fee-assessing unit from accessing money held in an
account of a financial institution by filing an action in district court requesting an order of the
court to prohibit a financial institution from providing the fee-assessing unit access to an
account.
(c) The state auditor shall remove a limitation on accessing funds under Subsection
(8)(b) upon compliance with state laws and procedures in the budgeting, expenditures, and
financial reporting of public funds.
(d) If a local taxing or fee-assessing unit has not adopted a budget in compliance with
state law, the state auditor:
(i) shall provide notice to the taxing or fee-assessing unit of the unit's failure to
comply;
(ii) may prohibit the taxing or fee-assessing unit from accessing money held by the
state; and
(iii) may prohibit a taxing or fee-assessing unit from accessing money held in an
account of a financial institution by:
(A) contacting the taxing or fee-assessing unit's financial institution and requesting that
the institution prohibit access to the account; or
(B) filing an action in district court requesting an order of the court to prohibit a
financial institution from providing the taxing or fee-assessing unit access to an account.
(e) If the local taxing or fee-assessing unit adopts a budget in compliance with state
law, the state auditor shall eliminate a limitation on accessing funds described in Subsection
(8)(d).
(9) The state auditor may not withhold funds under Subsection (7)(h) until a county has
received formal written notice of noncompliance from the auditor and has been given 60 days
to make the specified corrections.
(10) (a) The state auditor may not withhold funds under Subsection (7)(i) until the state
auditor receives a notice of non-registration, as that term is defined in Section 
67-1a-15
.
(b) If the state auditor receives a notice of non-registration, the state auditor may
prohibit the local government entity or limited purpose entity, as those terms are defined in
Section 
67-1a-15
, from accessing:
(i) money held by the state; and
(ii) money held in an account of a financial institution by:
(A) contacting the entity's financial institution and requesting that the institution
prohibit access to the account; or
(B) filing an action in district court requesting an order of the court to prohibit a
financial institution from providing the entity access to an account.
(c) The state auditor shall remove the prohibition on accessing funds described in
Subsection (10)(b) if the state auditor received a notice of registration, as that term is defined in
Section 
67-1a-15
, from the lieutenant governor.
(11) Notwithstanding Subsection (7)(g), (7)(h), (7)(i), (8)(b), (8)(d), or (10)(b), the
state auditor:
(a) shall authorize a disbursement by a local government entity or limited purpose
entity, as those terms are defined in Section 
67-1a-15
, or a state or local taxing or fee-assessing
unit if the disbursement is necessary to:
(i) avoid a major disruption in the operations of the local government entity, limited
purpose entity, or state or local taxing or fee-assessing unit; or
(ii) meet debt service obligations; and
(b) may authorize a disbursement by a local government entity, limited purpose entity,
or state or local taxing or fee-assessing unit as the state auditor determines is appropriate.
(12) (a) The state auditor may seek relief under the Utah Rules of Civil Procedure to
take temporary custody of public funds if an action is necessary to protect public funds from
being improperly diverted from their intended public purpose.
(b) If the state auditor seeks relief under Subsection (12)(a):
(i) the state auditor is not required to exhaust the procedures in Subsection (7) or (8);
and
(ii) the state treasurer may hold the public funds in accordance with Section 
67-4-1
 if a
court orders the public funds to be protected from improper diversion from their public
purpose.
(13) The state auditor shall:
(a) establish audit guidelines and procedures for audits of local mental health and
substance abuse authorities and their contract providers, conducted pursuant to Title 17,
Chapter 43, Part 2, Local Substance Abuse Authorities, Title 17, Chapter 43, Part 3, Local
Mental Health Authorities, Title 26B, Chapter 5, Health Care - Substance Use and Mental
Health, and Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal
Organizations, and Other Local Entities Act; and
(b) ensure that those guidelines and procedures provide assurances to the state that:
(i) state and federal funds appropriated to local mental health authorities are used for
mental health purposes;
(ii) a private provider under an annual or otherwise ongoing contract to provide
comprehensive mental health programs or services for a local mental health authority is in
compliance with state and local contract requirements and state and federal law;
(iii) state and federal funds appropriated to local substance abuse authorities are used
for substance abuse programs and services; and
(iv) a private provider under an annual or otherwise ongoing contract to provide
comprehensive substance abuse programs or services for a local substance abuse authority is in
compliance with state and local contract requirements, and state and federal law.
(14) (a) The state auditor may, in accordance with the auditor's responsibilities for
political subdivisions of the state as provided in Title 51, Chapter 2a, Accounting Reports from
Political Subdivisions, Interlocal Organizations, and Other Local Entities Act, initiate audits or
investigations of any political subdivision that are necessary to determine honesty and integrity
in fiscal affairs, accuracy and reliability of financial statements, effectiveness, and adequacy of
financial controls and compliance with the law.
(b) If the state auditor receives notice under Subsection 
11-41-104
(7) from the
Governor's Office of Economic Opportunity on or after July 1, 2024, the state auditor may
initiate an audit or investigation of the public entity subject to the notice to determine
compliance with Section 
11-41-103
.
(15) (a) The state auditor may not audit work that the state auditor performed before
becoming state auditor.
(b) If the state auditor has previously been a responsible official in state government
whose work has not yet been audited, the Legislature shall:
(i) designate how that work shall be audited; and
(ii) provide additional funding for those audits, if necessary.
(16) The state auditor shall:
(a) with the assistance, advice, and recommendations of an advisory committee
appointed by the state auditor from among special district boards of trustees, officers, and
employees and special service district boards, officers, and employees:
(i) prepare a Uniform Accounting Manual for Special Districts that:
(A) prescribes a uniform system of accounting and uniform budgeting and reporting
procedures for special districts under Title 17B, Limited Purpose Local Government Entities -
Special Districts, and special service districts under Title 17D, Chapter 1, Special Service
District Act;
(B) conforms with generally accepted accounting principles; and
(C) prescribes reasonable exceptions and modifications for smaller districts to the
uniform system of accounting, budgeting, and reporting;
(ii) maintain the manual under this Subsection (16)(a) so that the manual continues to
reflect generally accepted accounting principles;
(iii) conduct a continuing review and modification of procedures in order to improve
them;
(iv) prepare and supply each district with suitable budget and reporting forms; and
(v) (A) prepare instructional materials, conduct training programs, and render other
services considered necessary to assist special districts and special service districts in
implementing the uniform accounting, budgeting, and reporting procedures; and
(B) ensure that any training described in Subsection (16)(a)(v)(A) complies with Title
63G, Chapter 22, State Training and Certification Requirements; and
(b) continually analyze and evaluate the accounting, budgeting, and reporting practices
and experiences of specific special districts and special service districts selected by the state
auditor and make the information available to all districts.
(17) (a) The following records in the custody or control of the state auditor are
protected records under Title 63G, Chapter 2, Government Records Access and Management
Act:
(i) records that would disclose information relating to allegations of personal
misconduct, gross mismanagement, or illegal activity of a past or present governmental
employee if the information or allegation cannot be corroborated by the state auditor through
other documents or evidence, and the records relating to the allegation are not relied upon by
the state auditor in preparing a final audit report;
(ii) records and audit workpapers to the extent the workpapers would disclose the
identity of an individual who during the course of an audit, communicated the existence of any
waste of public funds, property, or manpower, or a violation or suspected violation of a law,
rule, or regulation adopted under the laws of this state, a political subdivision of the state, or
any recognized entity of the United States, if the information was disclosed on the condition
that the identity of the individual be protected;
(iii) before an audit is completed and the final audit report is released, records or drafts
circulated to an individual who is not an employee or head of a governmental entity for the
individual's response or information;
(iv) records that would disclose an outline or part of any audit survey plans or audit
program; and
(v) requests for audits, if disclosure would risk circumvention of an audit.
(b) The provisions of Subsections (17)(a)(i), (ii), and (iii) do not prohibit the disclosure
of records or information that relate to a violation of the law by a governmental entity or
employee to a government prosecutor or peace officer.
(c) The provisions of this Subsection (17) do not limit the authority otherwise given to
the state auditor to classify a document as public, private, controlled, or protected under Title
63G, Chapter 2, Government Records Access and Management Act.
(d) (i) As used in this Subsection (17)(d), "record dispute" means a dispute between the
state auditor and the subject of an audit performed by the state auditor as to whether the state
auditor may release a record, as defined in Section 
63G-2-103
, to the public that the state
auditor gained access to in the course of the state auditor's audit but which the subject of the
audit claims is not subject to disclosure under Title 63G, Chapter 2, Government Records
Access and Management Act.
(ii) The state auditor may submit a record dispute to the State Records Committee,
created in Section 
63G-2-501
, for a determination of whether the state auditor may, in
conjunction with the state auditor's release of an audit report, release to the public the record
that is the subject of the record dispute.
(iii) The state auditor or the subject of the audit may seek judicial review of a State
Records Committee determination under Subsection (17)(d)(ii), as provided in Section
63G-2-404
.
(18) If the state auditor conducts an audit of an entity that the state auditor has
previously audited and finds that the entity has not implemented a recommendation made by
the state auditor in a previous audit, the state auditor shall notify the Legislative Management
Committee through the Legislative Management Committee's audit subcommittee that the
entity has not implemented that recommendation.
(19) The state auditor shall, with the advice and consent of the Senate, appoint the state
privacy officer described in Section 
67-3-13
.
(20) Except as provided in Subsection (21), the state auditor shall report, or ensure that
another government entity reports, on the financial, operational, and performance metrics for
the state system of higher education and the state system of public education, including metrics
in relation to students, programs, and schools within those systems.
(21) (a) Notwithstanding Subsection (20), the state auditor shall conduct regular audits
of:
(i) the scholarship granting organization for the [
Special Needs
] 
Carson Smith
Opportunity Scholarship Program, created in Section 
53E-7-402
;
(ii) the State Board of Education for the Carson Smith Scholarship Program, created in
Section 
53F-4-302
; and
(iii) the scholarship program manager for the Utah Fits All Scholarship Program,
created in Section 
53F-6-402
.
(b) Nothing in this subsection limits or impairs the authority of the State Board of
Education to administer the programs described in Subsection (21)(a).
(22) The state auditor shall, based on the information posted by the Office of
Legislative Research and General Counsel under Subsection 
36-12-12.1
(2), for each policy,
track and post the following information on the state auditor's website:
(a) the information posted under Subsections 
36-12-12.1
(2)(a) through (e);
(b) an indication regarding whether the policy is timely adopted, adopted late, or not
adopted;
(c) an indication regarding whether the policy complies with the requirements
established by law for the policy; and
(d) a link to the policy.
(23) (a) A legislator may request that the state auditor conduct an inquiry to determine
whether a government entity, government official, or government employee has complied with
a legal obligation directly imposed, by statute, on the government entity, government official,
or government employee.
(b) The state auditor may, upon receiving a request under Subsection (23)(a), conduct
the inquiry requested.
(c) If the state auditor conducts the inquiry described in Subsection (23)(b), the state
auditor shall post the results of the inquiry on the state auditor's website.
(d) The state auditor may limit the inquiry described in this Subsection (23) to a simple
determination, without conducting an audit, regarding whether the obligation was fulfilled.
Section 22. 
Effective date.
(1) Except as provided in Subsection (2), this bill takes effect on July 1, 2024.
 (2) The actions affecting Section 
63I-2-253
 (Superseded 07/01/24) take effect on May
1, 2024.