Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 455 (2025GS)

Sponsor

Rep. Pierucci, Candice B.

Final action

Governor Signed 3/6/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• strengthens residency requirements and income verification process;
• amends the definition of the program manager;
• creates a financial administrator to process payments and fund expenditures from a scholarship account;
• prohibits contracted entities from charging processing fees to families;
• establishes deadlines for scholarship acceptance or denial;
• limits extracurricular expenses to 20% of the scholarship amount;
• limits physical education expenses to an additional 20% of the scholarship amount;
• creates procedures for students with special needs;
• enhances program manager accountability through audits and transparency;
• adds requirements for a local education agency acting as qualified providers;
• allows for scholarship amount rollovers;
• creates a Utah Fits All Scholarship Restricted Account (the account);
• allows funds within the account to accrue interest and be invested;

Every vote on this bill

Bill text

87
53E-1-201
53F-6-401
53F-6-402
53F-6-403
53F-6-404
53F-6-405
53F-6-405.5
53F-6-406
53F-6-407
53F-6-408
53F-6-409
53F-6-410
53F-6-411
53F-6-412
53F-6-415.5
53F-6-416
53F-6-417
53E-1-201
53F-6-401
53F-6-402
53F-6-403
53F-6-404
53F-6-405
53F-6-405.5
53F-6-406
53F-6-407
53F-6-408
53F-6-409
53F-6-410
53F-6-411
53F-6-412
53F-6-415.5
53F-6-416
53F-6-417
7
Utah Fits All Scholarship Program Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Candice B. Pierucci
Senate Sponsor: Kirk A. Cullimore
LONG TITLE
General Description:
This bill amends provisions related to the Utah Fits All Scholarship Program.
Highlighted Provisions:
This bill:
strengthens residency requirements and income verification processes;
amends the definition of the program manager;
creates a financial administrator to process payments and fund expenditures from a 
scholarship account;
prohibits contracted entities from charging processing fees to families;
establishes deadlines for scholarship acceptance or denial;
limits extracurricular expenses to 20% of the scholarship amount;
limits physical education expenses to an additional 20% of the scholarship amount;
creates procedures for students with special needs;
enhances program manager accountability through audits and transparency;
adds requirements for a local education agency acting as a qualified provider;
allows for scholarship amount rollovers;
creates the Utah Fits All Scholarship Restricted Account (the account);
allows funds within the account to accrue interest and be invested;
allows for rollover amounts of unused scholarship awards;
clarifies the State Tax Commission's role in income verification; 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-1-201
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Chapters 3, 460 and 525
53F-6-401
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Chapter 26
53F-6-402
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Chapter 26
53F-6-403
, (Effective upon governor's approval) as enacted by Laws of Utah 2023, 
Chapter 1
53F-6-404
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Chapter 26
53F-6-405
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Chapter 26
53F-6-406
, (Effective upon governor's approval) as enacted by Laws of Utah 2023, 
Chapter 1
53F-6-407
, (Effective upon governor's approval) as enacted by Laws of Utah 2023, 
Chapter 1
53F-6-408
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Chapter 26
53F-6-409
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Chapter 26
53F-6-410
, (Effective upon governor's approval) as enacted by Laws of Utah 2023, 
Chapter 1
53F-6-411
, (Effective upon governor's approval) as enacted by Laws of Utah 2023, 
Chapter 1
53F-6-412
, (Effective upon governor's approval) as last amended by Laws of Utah 2024, 
Chapter 26
ENACTS:
53F-6-405.5
, (Effective upon governor's approval) Utah Code Annotated 1953
53F-6-415.5
, (Effective upon governor's approval) Utah Code Annotated 1953
53F-6-416
, (Effective upon governor's approval) Utah Code Annotated 1953
53F-6-417
, (Effective upon governor's approval) Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
53E-1-201
 is amended to read:
53E-1-201 (Effective upon governor's approval). Reports to and action required 
of the Education Interim Committee.
(1)
In accordance with applicable provisions and Section 
68-3-14
, the following recurring 
reports are due to the Education Interim Committee:
(a)
the report described in Section 
9-22-109
 by the STEM Action Center Board, 
including the information described in Section 
9-22-113
 on the status of the computer 
science initiative and Section 
9-22-114
 on the Computing Partnerships Grants 
Program;
(b)
the prioritized list of data research described in Section 
53B-33-302
 and the report on 
research and activities described in Section 
53B-33-304
 by the Utah Data Research 
Center;
(c)
the report described in Section 
53B-1-402
 by the Utah Board of Higher Education on 
career and technical education issues and addressing workforce needs;
(d)
the annual report of the Utah Board of Higher Education described in Section 
53B-1-402
;
(e)
the reports described in Section 
53B-28-401
 by the Utah Board of Higher Education 
regarding activities related to campus safety;
(f)
the State Superintendent's Annual Report by the state board described in Section 
53E-1-203
;
(g)
the annual report described in Section 
53E-2-202
 by the state board on the strategic 
plan to improve student outcomes;
(h)
the report described in Section 
53E-8-204
 by the state board on the Utah Schools for 
the Deaf and the Blind;
(i)
the report described in Section 
53E-10-703
 by the Utah Leading through Effective, 
Actionable, and Dynamic Education director on research and other activities;
(j)
the report described in Section 
53F-2-522
 regarding mental health screening 
programs;
(k)
the report described in Section 
53F-4-203
 by the state board and the independent 
evaluator on an evaluation of early interactive reading software;
(l)
the report described in Section 
53F-6-412
 by the program manager of the Utah Fits 
All Scholarship Program;
(l)
(m)
the report described in Section 
63N-20-107
 by the Governor's Office of 
Economic Opportunity on UPSTART;
(m)
(n)
the reports described in Sections 
53F-5-214
 and 
53F-5-215
 by the state board 
related to grants for professional learning and grants for an elementary teacher 
preparation assessment;
(n)
(o)
upon request, the report described in Section 
53F-5-219
 by the state board on 
the Local Innovations Civics Education Pilot Program;
(o)
(p)
the report described in Section 
53F-5-405
 by the state board regarding an 
evaluation of a partnership that receives a grant to improve educational outcomes for 
students who are low income;
(p)
(q)
the report described in Section 
53B-35-202
 regarding the Higher Education and 
Corrections Council;
(q)
(r)
the report described in Section 
53G-7-221
 by the state board regarding 
innovation plans;
 and
(r)
(s)
the reports described in Section 
53F-6-412
 regarding the Utah Fits All 
Scholarship Program.
(2)
In accordance with applicable provisions and Section 
68-3-14
, the following occasional 
reports are due to the Education Interim Committee:
(a)
in 2027, 2030, 2033, and 2035, the reports described in Sections 
53B-1-116
, 
53B-1-117
, and 
53B-1-118
;
(b)
if required, the report described in Section 
53E-4-309
 by the state board explaining 
the reasons for changing the grade level specification for the administration of 
specific assessments;
(c)
if required, the report described in Section 
53E-5-210
 by the state board of an 
adjustment to the minimum level that demonstrates proficiency for each statewide 
assessment;
(d)
the report described in Section 
53E-10-702
 by Utah Leading through Effective, 
Actionable, and Dynamic Education;
(e)
if required, the report described in Section 
53F-2-513
 by the state board evaluating 
the effects of salary bonuses on the recruitment and retention of effective teachers in 
high poverty schools;
(f)
upon request, a report described in Section 
53G-7-222
 by an LEA regarding 
expenditure of a percentage of state restricted funds to support an innovative 
education program;
(g)
the reports described in Section 
53G-11-304
 by the state board regarding proposed 
rules and results related to educator exit surveys; and
(h)
the report described in Section 
26B-5-113
 by the Office of Substance Use and 
Mental Health, the state board, and the Department of Health and Human Services 
regarding recommendations related to Medicaid reimbursement for school-based 
health services.
Section 2, Section 
53F-6-401
 is amended to read:
53F-6-401 (Effective upon governor's approval). Definitions.
As used in this part:
(1)
"Contract administrator" means the state board's appointed Deputy Superintendent of 
Operations that ensures the program manager or financial administrator meets 
contractual obligations.
(2)
"Contract oversight and compliance" means the oversight and coordination functions 
performed by the Department of Operations contract administrator, including:
(a)
establishing and maintaining program standards within a contract with a program 
manager or financial administrator;
(b)
determining operational requirements and structures;
(c)
procuring and managing contracts for program services and standards;
(d)
ensuring program integrity through direct or contracted oversight;
(e)
coordinating program functions and contracted services with a program manager or 
financial administrator; and
(f)
maintaining appropriate separation between government oversight and independent 
program operations.
(3)
"Contracted entity" means:
(a)
an organization that:
(i)
contracts with the state board under Section 
53F-6-404
 to perform duties and 
functions necessary for program administration and operations;
(ii)
is not affiliated with any international organization;
(iii)
does not harvest data for the purpose of reproducing or distributing the data to 
other entities;
(iv)
is not involved in guiding or directing any curriculum or curriculum standards; 
and
(v)
performs the specific duties and functions assigned in the contract with the state 
board.
(b)
"Contracted entity" includes:
(i)
the program manager, unless the program manager is the Department of 
Operations for any duration of time;
(ii)
the financial administrator; and
(iii)
any other entity contracted to perform program functions under Section 
53F-6-404
.
(c)
"Contracted entity" does not include:
(i)
a qualifying provider;
(ii)
an eligible school; or
(iii)
an eligible service provider.
(4)
(a)
"Contracted entity employee" means an individual working for an entity 
contracted under Section 
53F-6-404
 in a position in which the individual's salary, 
wages, pay, or compensation, including as a contractor, is paid from scholarship 
funds.
(b)
"Contracted entity employee" does not include:
(i)
an individual who volunteers for a contracted entity or for a qualifying provider;
(ii)
an individual who works for a qualifying provider; or
(iii)
a qualifying provider.
(5)
"Contracted entity officer" means:
(a)
a member of the board of a contracted entity; or
(b)
the chief administrative officer of a contracted entity.
(6)
"Department of Operations" means the section of the state board that oversees financial 
operations, procurement operations, data and statistics operations, school land trust, and 
information technology operations for the state board.
(7)
(a)
"Educational supplements" means:
(i)
materials, tools, and equipment that:
(A)
are directly related to and necessary for subjects aligned with the core 
standards the state board establishes pursuant to Section 53E-4-202;
(B)
are used for specific learning objectives or competencies;
(C)
support structured learning activities or lessons; and
(D)
are consumable or non-reusable in nature;
(ii)
supplemental learning materials that:
(A)
directly support or enhance the delivery of instruction in core academic 
subjects;
(B)
are tied to specific educational goals or outcomes; and
(C)
are not primarily for entertainment or general enrichment purposes;
(iii)
arts and music education materials that:
(A)
align with state core standards; and
(B)
are used in structured arts or music instruction; and
(iv)
other educational materials that the program manager determines are:
(A)
necessary for meeting specific learning objectives;
(B)
appropriate for the student's age or grade level; and
(C)
primarily educational rather than recreational in nature.
(b)
"Educational supplements" does not include:
(i)
entertainment materials;
(ii)
recreational equipment;
(iii)
food or nutritional items;
(iv)
furniture or household items;
(v)
general office supplies not specific to an educational activity; or
(vi)
other items that do not have a clear, direct educational purpose aligned with 
academic instruction.
(1)
(8)
"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 
primary 
resident of the state, including a child of a military service member, 
as that term is defined in Section 
53B-8-102
;
(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 Carson Smith Opportunity Scholarship Program established in Section 
53E-7-402
; and
(ii)
is not enrolled in, upon
before
 receiving the scholarship
 is not enrolled in
:
(A)
an LEA; or
(B)
the Statewide Online Education Program to participate in a course with 
funding provided under 
Title 53F, 
Chapter 4, Part 5, Statewide Online 
Education Program, which does not include participation in a course by an 
entity as described in Subsection 
53F-6-409
(7);
(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)
.
;
(f)
who provides verification of primary residence in Utah, including a parent's utility 
bill, mortgage statement, lease agreement, or property tax records from the current 
calendar year in which the eligible student is renewing, reapplying, or applying for 
the scholarship for the first time; and
(g)
for out-of-state military families, who attests that the student is not enrolled in a 
public school elsewhere while receiving the scholarship.
(2)
(9)
"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.
(10)
(a)
"Financial administrator" means an organization that:
(i)
is not affiliated with any international organization;
(ii)
does not harvest data for the purpose of reproducing or distributing the data to 
other entities;
(iii)
is not involved in guiding or directing any curriculum or curriculum standards; 
and
(iv)
contracts with the state board to administer scholarship payments in accordance 
with this part.
(b)
"Financial administrator" may include an organization that serves as both program 
manager and financial administrator if the organization maintains appropriate 
separation of duties and meets all qualifications for both roles.
(3)
(11)
(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
attests to being
excused
exited
 from enrollment in 
an LEA in accordance 
with Section 
53G-6-204
a public school 
to attend a home school
 if the student 
was enrolled at any time in a public 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)
(12)
"Household income" means: 
(a)
the combined gross income of all parents residing in the same household as the 
eligible student;
(b)
the gross income of a single parent who claims the student as a dependent; or
(c)
the gross income of a parent who claims the student as a dependent under the terms 
of a joint custody agreement.
(13)
"Parent" means:
(a)
the same as that term is defined in Section 
53E-1-102
; and
(b)
a foster parent who has initiated a process to adopt the foster child.
(5)
"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 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.
(14)
"Primary residence" means the one location where an individual resides for the 
majority of the year.
(15)
"Private school" means a full-time, tuition-bearing educational institution where the 
student receives the majority of the student's academic instruction.
(16)
(a)
"Program manager" means a contracted entity or entities that:
(i)
perform program operational functions outlined in the procurement agreement 
described in Section 
53F-6-404
, including:
(A)
processing scholarship applications and eligibility determinations;
(B)
maintaining scholarship account records;
(C)
coordinating with qualifying providers and the financial administrator; and
(D)
providing customer service to program participants;
(ii)
in accordance with required program administration, implement established 
program standards and procedures; and
(iii)
perform other operational duties as specified in the contract.
(b)
"Program manager" may include an organization that serves as both program 
manager and financial administrator if the organization maintains appropriate 
separation of duties and meets all qualifications for both roles.
(6)
(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.
(7)
"Program manager officer" means:
(a)
a member of the board of a program manager; or
(b)
the chief administrative officer of a program manager.
(8)
(17)
(a)
"Qualifying provider" means one of the following entities:
(i)
an eligible school that the program manager approves in accordance with Section 
53F-6-408
; or
(ii)
an eligible service provider that the program manager approves in accordance 
with Section 
53F-6-409
.
(b)
"Qualifying provider" does not include:
(i)
a parent of a home-based scholarship student or a home school student solely in 
relation to the parent's child; or
(ii)
any other individual that does not meet the requirements described in Subsection 
(8)(a)
(17)(a)
.
(9)
(18)
"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)
(19)
"Scholarship account" means the account to which a program manager allocates 
funds for the payment of approved scholarship expenses in accordance with this part.
(11)
(20)
(a)
"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)
(i)
tuition and fees of a qualifying provider;
(b)
(ii)
fees and instructional materials at a technical college;
(c)
(iii)
tutoring services;
(d)
(iv)
fees for after-school or summer education programs;
(e)
(v)
textbooks, curricula, or other instructional materials, including any 
supplemental materials or associated online instruction that a curriculum or a 
qualifying provider recommends;
(f)
(vi)
educational software and applications;
(g)
(vii)
supplies or other equipment related to a scholarship student's educational 
needs;
(h)
(viii)
computer hardware or other technological devices that are intended 
primarily for a scholarship student's educational needs
, not to exceed once every 
three years for a scholarship student
;
(i)
(ix)
fees for the following examinations, or for a preparation course for the 
following examinations, that the program manager approves:
(i)
(A)
a national norm-referenced or standardized assessment described in 
Section 
53F-6-410
, an advanced placement examination, or another similar 
assessment;
(ii)
(B)
a state-recognized industry certification examination; and
(iii)
(C)
an examination related to college or university admission;
(j)
(x)
educational services for students with disabilities from a licensed or 
accredited practitioner or provider, including occupational, behavioral, physical, 
audiology, or speech-language therapies;
(k)
(xi)
contracted services that the program manager approves and that an LEA 
provider 
provides
offers
, including individual classes, after-school tutoring 
services, transportation, or fees or costs associated with participation in 
extracurricular activities;
(l)
(xii)
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)
(xiii)
in accordance with Subsection 
(20)(c)
, 
expenses related to extracurricular 
activities, field trips, educational supplements, 
physical education experiences, 
and other educational experiences; 
or
(xiv)
coursework or an educational supplement for arts and music that aligns with 
state core standards; 
(xv)
a musical instrument rental, excluding purchase; or
(n)
(xvi)
any other expense for a good or service that:
(i)
(A)
a parent or scholarship student incurs in the education of the scholarship 
student; and
(ii)
(B)
the program manager approves
, in accordance with Subsection (5)(d).
.
(b)
"Scholarship expense" does not include:
(i)
chaperone expenses, except that a family with one or more scholarship students 
receiving the scholarship under Subsection 53F-6-402(2)(c)(i) may use 
scholarship funds for one chaperone expense or pass per family, regardless of how 
many scholarship students are in the family or household;
(ii)
season tickets or subscriptions to entertainment venues;
(iii)
ski passes or lift tickets;
(iv)
access to recreational facilities unless for physical education of the student;
(v)
playground equipment;
(vi)
the purchase of any type of:
(A)
furniture; or
(B)
a musical instrument;
(vii)
apparel; and
(viii)
other non-educational expenses as the program manager determines.
(c)
(i)
A scholarship expense for extracurricular activities may not exceed 20% of the 
total scholarship amount.
(ii)
A scholarship expense for physical education requirements may not exceed an 
additional 20% of the total scholarship amount from the amount described in 
Subsection 
(20)(c)(i)
.
(iii)
A scholarship expense for arts and music described in Subsection (20)(a)(xiv) is 
not an extracurricular activity.
(12)
(21)
"Scholarship funds" means:
(a)
funds that the Legislature appropriates for the program; and
(b)
interest that scholarship funds accrue.
(13)
(22)
(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.
(14)
(23)
"Utah Fits All Scholarship Program" or "program" means the scholarship 
program established in Section 
53F-6-402
.
Section 3, Section 
53F-6-402
 is amended to read:
53F-6-402 (Effective upon governor's approval). Utah Fits All Scholarship 
Program -- Scholarship account application -- Scholarship expenses -- Program 
information.
(1)
There
Subject to Section 
53F-6-415.5
, there
 is established the Utah Fits All 
Scholarship Program under which
, beginning March 1, 2024,
 a parent may apply 
to a 
program manager on behalf of the parent's student 
to establish and maintain a 
scholarship account to cover the cost of a scholarship expense.
(2)
(a)
The
In accordance with this part and required program administration, the
program manager shall establish and maintain
, in accordance with this part, 
scholarship accounts for eligible students.
(b)
The program manager shall:
(i)
determine that a student meets the requirements to be an eligible student; and
(ii)
subject to Subsection (2)(c), each year the student is an eligible student,
coordinate with the financial administrator to
 maintain a scholarship account for 
the scholarship student to pay for the cost of one or more scholarship expenses 
that the student or student's parent incurs in the student's education.
(c)
Each year, subject to this part and legislative appropriations, a scholarship student is 
eligible for no more than:
(i)
for the 2024-2025 school year, $8,000; and
(ii)
for each school year following the 2024-2025 school year, the maximum allowed 
amount under this Subsection (2)(c) in the previous year plus a percentage 
increase that is equal to the five-year rolling average inflationary factor described 
in Section 
53F-2-405
.
(c)
Each year, subject to this part and legislative appropriations, a scholarship student is 
eligible for no more than:
(i)
for a private school student, $8,000;
(ii)
for a home-based scholarship student age 5-11 as of September 1 of the 
scholarship year, $4,000; and 
(iii)
for a home-based scholarship student age 12-18 as of September 1 of the 
scholarship year, $6,000.
(d)
Unless otherwise authorized under Section 
53F-6-411
, scholarship funds to eligible 
scholarship students shall be distributed to the program manager and through the 
financial administrator in two equal payments:
(i)
the first payment no later than July 31 of the scholarship year; and
(ii)
the second payment no later than December 31 of the scholarship year.
(e)
When a scholarship student exits the program during the school year:
(i)
the program manager or the financial administrator shall:
(A)
remove any remaining funds from the exited student's scholarship account; and
(B)
make those funds available for new scholarship awards within the same year; 
and
(ii)
any new scholarship award made during the same year and using funds from an 
exited student's account shall be prorated as follows:
(A)
if awarded during the second quarter of the school year, no more than 75% of 
the annual scholarship amount is allocated;
(B)
if awarded during the third quarter of the school year, no more than 50% of 
the annual scholarship amount is allocated; and
(C)
no new scholarship awards shall be made during the fourth quarter of the 
school year.
(3)
(a)
A
In accordance with required program administration, a
 program manager shall 
direct the financial administrator to 
establish a scholarship account on behalf of an 
eligible student who submits a timely application, unless the number of applications 
exceeds available scholarship funds for the school year.
(b)
If the number of applications exceeds the available scholarship funds for a school 
year, the program manager shall select students on a random basis, except as 
provided in Subsection (6)
, and as long as the student meets the eligibility criteria
.
(c)
An eligible student or a public education student shall submit an application for an 
initial scholarship or renewal for each school year that the student intends to receive 
scholarship funds.
(d)
(i)
To maintain eligibility for the following school year, a scholarship student or 
the scholarship student's parent shall:
(A)
complete and deliver to the program manager a portfolio describing the 
scholarship student's educational opportunities and achievements under the 
program for the given year; or
(B)
submit results from an assessment as described in Section 53F-6-410.
(ii)
The portfolio or assessment described in Subsection (3)(d)(i) must be submitted:
(A)
no later than May 31; or
(B)
in accordance with the assessment schedule submitted to and approved by the 
program manager.
(iii)
The receipt of the portfolio or assessment results by the program manager is a 
condition of scholarship award for the following school year.
(iv)
The program manager may not disclose the content of a given scholarship 
student's portfolio except to the scholarship student's parent, unless the parent 
provides written consent for the portfolio to be used as a sample or example, in 
which case all personally identifiable information must be removed prior to such 
use.
(d)
(i)
To maintain eligibility, a scholarship student or the scholarship student's 
parent shall annually complete and deliver to the program manager a portfolio 
describing the scholarship student's educational opportunities and achievements 
under the program for the given year.
(ii)
The program manager may not disclose the content of a given scholarship 
student's portfolio except to the scholarship student's parent.
(4)
(a)
An application for a scholarship account shall contain an acknowledgment by the 
student's parent that the qualifying provider selected by the parent for the student's 
enrollment or engagement 
is capable of providing
can provide
 education services for 
the student.
(b)
A scholarship account application form shall contain the following statement:
"I acknowledge that:
1: A qualifying provider 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 agree to this scholarship account;
3: Agreeing to establish this scholarship account has the same effect as a parental refusal 
to consent to services as described in 34 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
, and I will notify the program 
manager within five business days if my child returns to a public school that is not a qualifying 
provider or if we have elected to take courses from the public portion of a qualifying provider
.".
(c)
Upon agreeing to establish a scholarship account, the parent assumes full financial 
responsibility for the education of the scholarship student, including the balance of 
any expense incurred at a qualifying provider or for goods that are not paid for by the 
scholarship student's scholarship account.
(d)
Agreeing to establish a scholarship account has the same effect as a parental refusal 
to consent to services as described in 34 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 establishment of a scholarship account on behalf of a 
student 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.
(5)
A program manager 
or financial administrator 
may not charge a scholarship account 
application fee.
(6)
(a)
A program manager shall give an enrollment preference based on the following 
order of preference:
(i)
to an eligible student who used a scholarship account in the previous school year
and has submitted the required accountability measure
;
(ii)
to an eligible student:
(A)
who did not use a scholarship account in the previous school year; and
(B)
with a family income at or below 
200%
300%
 of the federal poverty level;
(iii)
to an eligible student who is a sibling of an eligible student who:
(A)
uses a scholarship account at the time the sibling applies for a scholarship 
account; or
(B)
used a scholarship account in the school year immediately preceding the 
school year for which the sibling is applying for a scholarship account; and
(iv)
for any remaining scholarships, 
to an eligible student
:
 on a lottery basis.
(A)
who did not use a scholarship account in the previous school year; and
(B)
with a family income between 200% and 555% of the federal poverty level.
(b)
The State Tax Commission may, upon request, provide state individual income tax 
information to the program manager for income verification purposes regarding a 
given individual if:
(i)
the individual voluntarily provides the individual's social security number to the 
program manager; and
(ii)
consents in writing to the sharing of state individual income tax information 
solely for income verification purposes.
(c)
In addition to the tax information described in Subsection (6)(b), the program 
manager shall accept the following for income verification:
(i)
a federal form W-2;
(ii)
a wage statement from an employer; and
(iii)
other methods or documents that the program manager identifies.
(b)
If the number of eligible students within any preference tier described in Subsection 
(6)(a) exceeds available scholarship funds the program manager shall grant awards 
on a lottery basis.
(c)
(i)
For income verification purposes, a parent of a scholarship student shall:
(A)
provide written consent authorizing the State Tax Commission to disclose the 
parent's state individual income tax return information to the program manager; 
and
(B)
submit the consent in a form prescribed by the State Tax Commission.
(ii)
Upon receiving the consent described in Subsection (6)(c)(i), the State Tax 
Commission shall provide state individual income tax information to the program 
manager for income verification purposes regarding the parent within 10 business 
days.
(d)
For income verification purposes:
(i)
the program manager shall require documentation of household income, not 
individual income;
(ii)
if the individual income tax is a business income filing, require:
(A)
the most recently filed business tax returns;
(B)
year-to-date profit and loss statements; and 
(C)
documentation of the owner's draw or distributions; and
(iii)
for households awaiting completion of tax filings for the year immediately 
preceding the current year, the program manager shall accept the following 
documentation for conditional approval and only until such a time as the current 
tax year returns, year-to-date profit and loss statements, or documentation of 
owner's draw or distributions are provided for the current tax year:
(A)
the most recent W-2s;
(B)
a current pay stub showing year-to-date earnings; and
(C)
an employer verification letter.
(7)
(a)
Subject to Subsections (7)(b) through (e), a parent may use a scholarship account 
to pay for a scholarship expense from a qualifying provider that a parent or 
scholarship student incurs in the education of the scholarship student.
(b)
A scholarship student or the scholarship student's parent may not use a scholarship 
account for an expense that the student or parent does not incur in the education of 
the scholarship student, including:
(i)
a rehabilitation program that is not primarily designed for an educational purpose; 
or
(ii)
a travel expense other than a transportation expense described in Section 
53F-6-401
.
(c)
The program manager 
or financial administrator 
may not:
(i)
approve a scholarship expense for a service that a qualifying provider provides 
unless the program manager determines that the scholarship student or the 
scholarship student's parent incurred the 
scholarship 
expense in the education of 
the scholarship student; or
(ii)
reimburse an expense for a service or good that a provider that is not a qualifying 
provider provides unless:
(A)
the parent or scholarship student submits a receipt that shows the cost and 
type of service or good and the name of provider; 
(B)
the expense would have qualified as a scholarship expense if a qualifying 
provider provided the good or service;
(C)
the provider of the good or service is not the parent of the student who is a 
home-based scholarship student solely in relation to the parent's child; 
and
(D)
the program manager determines that the parent or scholarship student 
incurred the expense in the education of the scholarship student
.
; and
(E)
the program manager or financial administrator determines that the parent or 
scholarship student incurred the expense when the student was not enrolled in a 
public school.
(d)
The parent of a scholarship student may not receive scholarship funds as payment for 
the parent's time spent educating the parent's child.
(e)
Except for cases in which a scholarship student or the scholarship student's parent is 
convicted of fraud in relation to scholarship funds, if a qualifying provider, 
scholarship student, or scholarship student's parent repays an expenditure from a 
scholarship account for an expense that is not approved under this Subsection (7), the 
program manager shall credit the repaid amount back to the scholarship account 
balance within 30 days after the day on which the program manager receives the 
repayment.
(8)
Notwithstanding any other provision of law, funds that the program manager
 or 
financial administrator
 disburses
 from the Utah Fits All Scholarship Program Restricted 
Account created in Section 
53F-6-411
 under this part to a scholarship account on behalf 
of a scholarship student do not constitute state taxable income to the parent of the 
scholarship student.
(9)
The program manager shall prepare and disseminate information on the program to a 
parent applying for a scholarship account on behalf of a student, including the 
information that the program manager provides in accordance with Section 
53F-6-405
.
(10)
On or before September 1, 2023, and as 
As 
frequently as necessary to maintain the 
information, the state board shall provide information on the state board's website, 
including:
(a)
scholarship account information;
(b)
information on the program manager
 or financial administrator
, including the 
program 
manager's
manager's or financial administrator's
 contact information; and
(c)
an overview of the program.
(11)
In accordance with required program administration, the program manager shall:
(a)
in alignment with deadlines specified in Subsection 
53F-6-405(1)(c)
, establish and 
communicate to an eligible student a deadline by which the eligible student must 
accept or deny the scholarship offer; and
(b)
communicate to an eligible student that failure to respond by the deadline described 
in Subsection 
(11)(a)
 shall result in forfeiture of the scholarship offer.
(12)
In accordance with Subsection 
53F-6-403(7)
, the program manager shall:
(a)
verify student eligibility status before removing any student from scholarship 
eligibility;
(b)
establish protocols for reviewing disputed eligibility determinations;
(c)
implement a process for immediate reinstatement of eligibility when errors are 
identified;
(d)
maintain detailed records of all eligibility removals and reinstatements; and
(e)
provide regular reports to the state board regarding eligibility status changes of a 
scholarship student.
Section 4, Section 
53F-6-403
 is amended to read:
53F-6-403 (Effective upon governor's approval). Qualifying providers.
(1)
Before the beginning of the school year immediately following a school year in which a 
qualifying provider receives scholarship funds equal to or more than $500,000, the 
qualifying provider shall file with the program manager a surety bond payable to the 
program manager in an amount equal to the aggregate amount of scholarship funds 
expected to be received during the school year.
(2)
If a program manager determines that a qualifying provider has violated a provision of 
this part, the program manager may 
interrupt
have the
 disbursement 
of
interrupted
 or 
withhold scholarship funds from the qualifying provider.
(3)
(a)
If the program manager determines that a qualifying provider no longer meets the 
eligibility requirements described in this part, the program manager may withdraw 
the organization's approval of the qualifying provider.
(b)
A provider or person that does not have the approval of the program manager in 
accordance with the following may not accept scholarship funds for services under 
this part:
(i)
Section 
53F-6-408
 regarding eligible schools; or
(ii)
Section 
53F-6-409
 regarding eligible service providers.
(4)
If a qualifying provider requires partial payment of tuition or fees before the beginning 
of the academic year to reserve space for a scholarship student who has been admitted to 
the qualifying provider, the program manager may
 direct the financial administrator to
:
(a)
pay the partial payment before the beginning of the school year in which the 
scholarship funds are awarded; and
(b)
deduct the amount of the partial payment from subsequent scholarship fund deposits 
in an equitable manner that provides the best availability of scholarship funds to the 
student throughout the remainder of the school year.
(5)
If a scholarship student 
described in Subsection 
(4)(a)
chooses to withdraw from or 
otherwise not engage with the qualifying provider before the beginning of the school 
year:
(a)
the qualifying provider shall remit the partial payment described in Subsection 
(4)(a)
to the program manager
to the financial administrator
; and
(b)
the program manager shall
 direct the financial administrator to
 credit the remitted 
partial payment to the scholarship student's scholarship account.
(6)
 A qualifying provider that is an LEA shall:
(a)
comply with the additional requirements set forth in Section 
53F-6-408
, including 
ensuring enrollment systems provide a distinct separation of a scholarship student 
from a public education student;
(b)
utilize the reporting process established under Subsection 
(7)
;
(c)
submit enrollment verifications in accordance with rules established by the state 
board; and
(d)
maintain records of enrollment reporting and verification activities.
(7)
The Department of Operations shall:
(a)
establish a process for an LEA provider to report:
(i)
instances of double counted enrollment; and
(ii)
students who are erroneously removed from scholarship eligibility;
(b)
develop a standardized reporting mechanism that:
(i)
allows LEA providers to submit verification of accurate student enrollment status;
(ii)
maintains documentation of enrollment discrepancies; and
(iii)
tracks resolution of reported enrollment issues;
(c)
implement data validation measures to:
(i)
identify potential double counted enrollment across LEA providers; and
(ii)
ensure students maintain proper scholarship eligibility status; and
(d)
provide training to LEA providers on:
(i)
proper enrollment reporting procedures;
(ii)
use of the reporting mechanism described in Subsection (7)(b); and
(iii)
resolution of enrollment discrepancies.
Section 5, Section 
53F-6-404
 is amended to read:
53F-6-404 (Effective upon governor's approval). State board procurement -- 
Failure to comply.
(1)
(a)
In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the state board 
shall issue 
a request
requests
 for proposals
, on or before June 15, 2023, and enter an 
agreement with no more than one organization that qualifies as tax exempt under 
Section 501(c)(3), Internal Revenue Code, for the state board to recognize as the 
program manager, on or before September 1, 2023.
 for entities to perform duties and 
functions necessary for program operations.
(b)
An organization that responds to a request for proposals described in Subsection 
(1)(a) shall submit 
the following 
information 
in the organization's response
demonstrating
:
(i)
organizational qualifications and capacity to perform the specific duties or 
functions;
(ii)
relevant experience in education program administration or financial management;
(iii)
the proposed methodology for performing assigned responsibilities; and
(iv)
an affidavit or other evidence that the organization:
(A)
is not affiliated with any international organization;
(B)
does not harvest data for the purpose of reproducing or distributing the data to 
another entity; and
(C)
has no involvement in guiding or directing any curriculum standards.
(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 a student's 
eligibility under this part;
(iv)
a description of the organization's proposed scholarship account application 
process; and
(v)
an affidavit or other evidence that the organization:
(A)
is not affiliated with any international organization;
(B)
does not harvest data for the purpose of reproducing or distributing the data 
to another entity; and
(C)
has no involvement in guiding or directing any curriculum standards.
(c)
The state board shall ensure that the agreement described in Subsection (1)(a):
(i)
clearly delineates the specific duties and functions to be performed;
(ii)
ensures the efficiency and success of the program; 
(iii)
maintains appropriate separation between program and contract administration 
and direct educational services;
(iv)
preserves the independence of educational decisions made between parents and 
providers; 
and
(ii)
(v)
does not impose any requirements on the program manager that:
(A)
are not essential to the basic administration of the program; or
(B)
create restrictions, directions, or mandates regarding instructional content or 
curriculum.
(2)
The state board may regulate and take enforcement action as necessary against 
a 
program manager
a contracted entity
 in accordance with the provisions of the state 
board's agreement with the 
program manager
contracted entity
.
(3)
(a)
If the state board determines that a 
program manager
contracted entity
 has 
violated a provision of this part or a provision of the state board's agreement with the 
program manager
contracted entity
, the state board shall send written notice to the 
program manager
contracted entity
 explaining the violation and the remedial action 
required to correct the violation.
(b)
A 
program manager
contracted entity
 that receives a notice described in Subsection 
(3)(a) shall, no later than 60 days after the day on which the 
program manager
contracted entity
 receives the notice, correct the violation and report the correction to 
the state board.
(c)
(i)
If a 
program manager
contracted entity
 that receives a notice described in 
Subsection (3)(a) fails to correct a violation in the time period described in 
Subsection (3)(b), the state board may bar the 
program manager
contracted entity
from further participation in the program.
(ii)
A 
program manager
contracted entity
 may appeal a decision of the state board 
under Subsection (3)(c)(i) in accordance with Title 63G, Chapter 4, 
Administrative Procedures Act.
(d)
A 
program manager
contracted entity
 may not accept state funds while the 
program 
manager
contracted entity
:
(i)
is barred from participating in the program under Subsection (3)(c)(i); or
(ii)
has an appeal pending under Subsection (3)(c)(ii).
(e)
A
 program manager 
 contracted entity 
that has an appeal pending under Subsection 
(3)(c)(ii) may continue to administer scholarship accounts during the pending appeal.
(4)
The state board shall establish a process for a 
program manager
contracted entity
 to 
report the information the 
program manager
contracted entity
 is required to report to 
the state board under Section 
53F-6-405
.
(5)
The state board shall make rules in accordance with Title 63G, Chapter 3, Utah 
Administrative Rulemaking Act, and include provisions in the state board's agreement 
with 
the scholarship organization
a contracted entity
 for:
(a)
subject to Subsection (6), the administration of scholarship accounts and 
disbursement of scholarship funds if a 
program manager
contracted entity
 is barred 
from participating in the program under Subsection (3)(c)(i); and
(b)
audit and report requirements as described in Section 
53F-6-405
.
(6)
(a)
The state board shall include in the rules and provisions described in Subsection 
(5)(a) measures to ensure that the establishment and maintenance of scholarship 
accounts and enrollment in the program are not disrupted if the 
program manager
contracted entity
 is barred from participating in the program.
(b)
The state board may, if the 
program manager
contracted entity
 is barred from 
participating in the program, issue a new request for proposals and enter into a new 
agreement with an alternative 
program manager
contracted entity
 in accordance with 
this section
 and, if applicable, Section 
53F-6-415.5
.
(7)
(a)
On or before January 1, 2024, the program manager shall:
(i)
establish a process for a scholarship student or a scholarship student's parent to 
appeal any administrative decision of the program manager, includingscholarship 
expense denialsand determinations regarding enrollment eligibility or suspension 
or disqualification under Section 
53F-6-405
; 
(ii)
ensure that the body that determines the outcome of internal appeals:
(A)
includes parents of scholarship students; and
(B)
makes a determination within 30 days after the day of the appeal;
(iii)
make information available regarding the internal appeals process on the 
program manager's website and on the scholarship application.
(b)
If the program manager stays or reverses an administrative decision of the program 
manager on internal appeal, the program manager may not withhold scholarship 
funds or application approval for the scholarship student on account of the appealed 
administrative decision unless as the resolution of the internal appeal expressly 
allows.
(8)
(7)
The state board may not include a provision in any rule that creates or implies a 
restriction, direction, or mandate regarding
:
(a)
instructional content
 or 
;
(b)
curriculum
.
; or
(c)
program operations that a contracted entity performs pursuant to an agreement under 
this section.
(9)
(8)
No later than 10 business days after
 July 1 of each year
each distribution described 
in Section 
53F-6-411
, the state board shall disperse to the program manager an amount 
equal to the funds appropriated for the Utah Fits All Scholarship Program for the given 
fiscal year.
Section 6, Section 
53F-6-405
 is amended to read:
53F-6-405 (Effective upon governor's approval). Program manager duties -- 
Audit -- Prohibitions.
(1)
The program manager shall
:
(a)
administer the program, including:
(a)
(i)
maintaining an application website that includes information on enrollment, 
relevant application dates, and dates for notification of acceptance;
(b)
(ii)
reviewing applications from and determining if a person is:
(i)
(A)
an eligible school under Section 
53F-6-408
; or
(ii)
(B)
an eligible service provider under Section 
53F-6-409
;
(c)
(iii)
establishing an application process
, including application dates opening 
before March 1, 2024, in accordance with Section 
53F-6-402
;
 that:
(A)
opens March 1 of each year for existing scholarship students;
(B)
opens April 1 of each year for new scholarship students;
(C)
closes May 1 of each year;
(D)
aligns with the acceptance deadline established under Subsection 
53F-6-402(11)
 that shall be prior to July 1 of each year; and
(E)
provides an eligible student with a decision regarding the eligible student's 
application within 30 days of the application deadline specified in this 
Subsection 
(1)(a)
;
(d)
(iv)
reviewing and granting or denying applications for a scholarship account;
(v)
determining the eligibility of scholarship expenses, including establishing 
necessary policies and procedures;
(vi)
approving qualifying providers in accordance with Section 
53F-6-403
; and
(vii)
maintaining a list of approved qualifying providers;
(i)
expending all revenue from interest on scholarship funds or investments on 
scholarship expenses;
(b)
direct the financial administrator to:
(e)
(i)
providing
provide
 an online portal for the parent of a scholarship student to 
access the scholarship student's account
;
(ii)
 to 
facilitate payments to a qualifying provider from the online portal;
(f)
(iii)
ensuring 
ensure 
that scholarship funds in a scholarship account are readily 
available to a scholarship student
 within five business days after receipt of funds 
from the state board
;
(iv)
process scholarship payments in accordance with the payment schedule 
established in Section 
53F-6-411
, unless otherwise authorized;
(v)
in accordance with program administration when needed, develop and implement 
a commercially viable, cost-effective, and parent-friendly system that:
(A)
processes scholarship payments;
(B)
maximizes payment flexibility;
(C)
allows scholarship students and scholarship student's parents to publicly rate, 
review, and share information about qualifying providers; and
(D)
provides the program manager with continuous, real-time, view-only access to 
all scholarship account transactions and balances, payment processing status, 
provider payment history, reimbursement tracking, and account reconciliation 
data;
(vi)
upon receiving notification under Subsection (1)(c):
(A)
obtain reimbursement of scholarship funds from a qualifying provider that 
provides the services in which a scholarship student is no longer enrolled or 
with which the scholarship student is no longer engaged; and
(B)
expend all revenue from interest on scholarship funds or investments on 
scholarship expenses; and
(vii)
implement accounting procedures to track partial payments and remaining 
balances;
(g)
(c)
requiring
require
 a parent to notify the program manager if the parent's 
scholarship student is no longer enrolled in or engaging a service:
(i)
for which the scholarship student receives scholarship funds; and
(ii)
that is provided to the scholarship student for an entire school year;
(h)
obtaining reimbursement of scholarship funds from a qualifying provider that 
provides the services in which a scholarship student is no longer enrolled or with 
which the scholarship student is no longer engaged;
(j)
(d)
each time the program manager makes an administrative decision that is adverse 
to a scholarship student or the scholarship student's parent, 
informing
inform
 the 
scholarship student and the scholarship student's parent of the opportunity and 
process to appeal an administrative decision of the program manager in accordance 
with the process described in Section 
53F-6-404
53F-6-417
;
(k)
(e)
maintaining 
maintain 
a protected internal waitlist of all eligible students who 
have applied to the program and are not yet scholarship students, including any 
student who removed the student's application from the waitlist; 
and
(l)
(f)
providing 
provide 
aggregate data regarding the number of scholarship students 
and the number of eligible students on the waitlist described in Subsection 
(1)(k).
(1)(e);
(g)
contract for annual and random audits on scholarship accounts conducted:
(i)
by a certified public accountant who is independent from:
(A)
the program manager; and
(B)
the financial administrator's accounts and records pertaining to scholarship 
funds; and
(ii)
in accordance with generally accepted auditing standards;
(h)
require the financial administrator to demonstrate financial accountability through 
annual reporting requirements described in Section 
53F-6-405.5
;
(i)
develop and implement an annual orientation for qualifying providers;
(j)
administer the appeals process described in Section 
53F-6-417
;
(k)
in accordance with Subsection 
53F-6-411(4)
, manage scholarship rollovers;
(l)
track and ensure compliance of allowed scholarship expenses; and
(m)
comply with enhanced accountability measures, including independent audits and 
public disclosure of third-party contracts and fees related to the administration of the 
program.
(2)
The program manager shall:
(a)
contract with one or more private entities to develop and implement a commercially 
viable, cost-effective, and parent-friendly system 
(a)
require the financial administrator to submit monthly financial reports including:
(i)
a statement of financial position;
(ii)
a statement of activities;
(iii)
account reconciliation statements;
(iv)
detailed transaction reports; and
(v)
to:
exception reports highlighting any unusual activity; and
(i)
establish scholarship accounts;
(ii)
maximize payment flexibility by allowing:
(A)
for payment of services to qualifying providers using scholarship funds by 
electronic or online funds transfer from the online portal; and
(B)
pre-approval of a reimbursement to a parent for a good that is a scholarship 
expense; and
(iii)
allow scholarship students and scholarship student's parents to publicly rate, 
review, and share information about qualifying providers;
(b)
oversee the financial administrator's compliance with requirements regarding:
(b)
(i)
except for a reimbursement authorized under this part, 
ensuring 
the use of 
scholarship funds from the online portal directly to a qualifying provider to pay 
for scholarship expenses without the availability of withdrawal or other direct 
access to scholarship funds by an individual; and
(c)
(ii)
ensure that the 
system 
complies
compliance
 with industry standards for 
data privacy and cybersecurity, including ensuring compliance with the Family 
Educational Rights and Privacy Act, 34 C.F.R. Part 99.
(3)
In advance of the program manager accepting applications in accordance with Section 
53F-6-402
 and as regularly as information develops, the program manager shall provide 
information regarding the program by publishing a program handbook online for 
scholarship applicants, scholarship students, parents, service providers seeking to 
become qualifying providers, and qualifying providers, that includes information 
regarding:
(a)
the policies and processes of the program;
(b)
approved scholarship expenses and qualifying providers;
(c)
the responsibilities of parents regarding the program and scholarship funds;
(d)
the duties of 
the program manager
each contracted entity
;
 and
(e)
the opportunity and process to appeal an administrative decision of the program 
manager in accordance with the process described in Section 
53F-6-404
53F-6-417
.
; 
and
(f)
the role of any private financial management firms or other private organizations 
with which the program manager may contract to administer any aspect of the 
program.
(4)
To ensure the fiscal security and compliance of the program, the program manager shall:
(a)
prohibit 
a program manager employee or program manager officer
any person
 from 
handling, managing, or processing scholarship funds, if, 
based on a criminal 
background check that the state board conducts in accordance with Section 
53F-6-407
, 
the state board identifies the program manager employee or program manager officer 
as posing a risk to the appropriate use of scholarship funds
the person poses a risk to 
the appropriate use of scholarship funds, as determined by background checks the 
program manager conducted in accordance with Section 
53F-6-407
;
(b)
establish procedures to ensure a fair process to:
(i)
suspend scholarship student's eligibility for the program in the event of the 
scholarship student's or scholarship student's parent's:
(A)
intentional or substantial misuse of scholarship funds; or
(B)
violation of this part or the terms of the program; and
(ii)
if the program manager
 or financial administrator
 obtains evidence of fraudulent 
use of scholarship funds, refer the case to the attorney general for collection or 
criminal investigation;
 and
(iii)
ensure that a scholarship student whose eligibility is suspended or disqualified 
under this Subsection (4)(b) or Subsection (4)(c) based on the actions of the 
student's parent regains eligibility if the student is placed with a different parent or 
otherwise no longer resides with the parent related to the suspension or 
disqualification;
 and
(c)
notify the 
state board
financial administrator
, scholarship student, and scholarship 
student's parent in writing:
(i)
of the suspension described in Subsection (4)(b)(i);
(ii)
that no further transactions, disbursements, or reimbursements are allowed;
(iii)
that the scholarship student or scholarship student's parent may take corrective 
action within 10 business days of the day on which the program manager provides 
the notification; and
(iv)
that without taking the corrective action within the time period described in 
Subsection (4)(c)(iii), the program manager may disqualify the student's eligibility.
(5)
(a)
A program manager may not
 direct the financial administrator to
:
(i)
disburse scholarship funds to a qualifying provider or allow a qualifying provider 
to use scholarship funds if:
(A)
the program manager determines that the qualifying provider intentionally or 
substantially misrepresented information on overpayment;
(B)
the qualifying provider fails to refund an overpayment in a timely manner; or
(C)
the qualifying provider routinely fails to provide scholarship students with 
promised educational services; or
(ii)
reimburse with scholarship funds an individual for the purchase of a good or 
service if the program manager determines that:
(A)
the scholarship student or the scholarship student's parent requesting 
reimbursement intentionally or substantially misrepresented the cost or 
educational purpose of the good or service; or
(B)
the relevant scholarship student was not the exclusive user of the good or 
service.
(b)
A program manager shall notify a scholarship student if the program manager:
(i)
stops disbursement of the scholarship student's scholarship funds to a qualifying 
provider under Subsection (5)(a)(i); or
(ii)
refuses reimbursement under Subsection (5)(a)(ii).
(6)
(a)
At any time, a scholarship student may change the qualifying provider to which 
the scholarship student's scholarship account makes distributions.
(b)
If, during the school year, a scholarship student changes the student's enrollment in 
or engagement with a qualifying provider to another qualifying provider, the program 
manager may 
direct the financial administrator to 
prorate scholarship funds between 
the qualifying providers based on the time the scholarship student received the goods 
or services or was enrolled.
(7)
A program manager may not subvert the enrollment preferences required under Section 
53F-6-402
 or other provisions of this part to establish a scholarship account on behalf of 
a relative 
of a program manager officer
of a contracted entity employee or contracted 
employee officer
.
(8)
In regards to customer service needs related to the program, the program manager shall:
(a)
provide customer service regarding:
(i)
program eligibility determinations;
(ii)
application status;
(iii)
qualifying provider approvals;
(iv)
scholarship expense eligibility;
(v)
program policies and requirements;
(vi)
appeals and grievances; 
(vii)
accessibility for disabled individuals; and
(viii)
general program information;
(b)
ensure the financial administrator provides customer service regarding:
(i)
scholarship account access;
(ii)
payment processing status;
(iii)
technical support for the payment portal;
(iv)
account balance inquiries;
(v)
transaction history; and
(vi)
reimbursement status;
(c)
establish customer service standards that the program manager and the financial 
administrator must meet;
(d)
require the financial administrator to:
(i)
maintain adequate customer service staffing;
(ii)
meet specified response time requirements; and
(iii)
track and report on customer service metrics; and
(e)
coordinate with the financial administrator to ensure seamless referral of inquiries 
between contracted entities.
(8)
The program manager shall:
(a)
contract for annual and random audits on scholarship accounts conducted:
(i)
by a certified public accountant who is independent from:
(A)
the program manager;
(B)
the state board; and
(C)
the program manager's accounts and records pertaining to scholarship funds; 
and
(ii)
in accordance with generally accepted auditing standards;
(b)
demonstrate the program manager's financial accountability by annually submitting 
to the state board the following:
(i)
a financial information report that a certified public accountant prepares and that 
includes the total number and total dollar amount of scholarship funds disbursed 
during the previous calendar year; and
(ii)
no later than 180 days after the last day of the program manager's fiscal year, the 
results of the audits described in Subsection (8)(a), including the program 
manager's financial statements in a format that meets generally accepted 
accounting principles.
(9)
(a)
The state board:
(i)
shall review a report described in this section; and
(ii)
may request that the program manager revise or supplement the report if the 
report does not fully comply with this section.
(b)
The program manager shall provide to the state board a revised report or a 
supplement to the report no later than 45 days after the day on which the state board 
makes a request described in Subsection (9)(a).
(9)
Contracted entities may not charge processing fees to an eligible student or pass on 
third-party fees related to the use or management of scholarship funds.
Section 7, Section 
53F-6-405.5
 is enacted to read:
53F-6-405.5 (Effective upon governor's approval). Financial administrator 
duties and requirements.
(1)
The financial administrator shall:
(a)
operate independently in processing and distributing scholarship funds while:
(i)
following program requirements the program manager establishes;
(ii)
implementing payment directives from the program manager regarding:
(A)
scholarship student eligibility;
(B)
qualifying provider status;
(C)
payment timing; and
(D)
other established program requirements;
(iii)
maintaining separate systems and controls from program administration; and
(iv)
providing necessary reporting while preserving operational independence;
(b)
implement and maintain a payment processing system that:
(i)
provides an online portal for scholarship account access;
(ii)
facilitates electronic payments to qualifying providers;
(iii)
enables pre-approval of parent reimbursements for eligible expenses;
(iv)
includes provider rating and review capabilities;
(v)
processes payments efficiently;
(vi)
prevents unauthorized access;
(vii)
provides real-time reporting to the program manager; and 
(viii)
maintains backup systems and disaster recovery capabilities;
(c)
process payments only:
(i)
to qualifying providers approved by the program manager;
(ii)
for scholarship expenses determined eligible by the program manager, including 
the reimbursement for the scholarship expense to parents; and
(iii)
when directed by the program manager;
(d)
maintain security measures that:
(i)
prevent unauthorized access to scholarship funds;
(ii)
comply with industry standards for data privacy; and
(iii)
ensure compliance with federal education privacy laws; and
(e)
process scholarship payments according to the distribution schedule described in 
Section 
53F-6-411
, including:
(i)
tracking initial and second-half payments;
(ii)
managing early disbursement authorizations; and
(iii)
reconciling payment records with the Utah Fits All Scholarship Restricted 
Account balance.
(2)
For financial accountability, the financial administrator shall:
(a)
maintain detailed records of:
(i)
all scholarship account transactions to the service or item level;
(ii)
payment processing activities; and
(iii)
reimbursements and refunds;
(b)
provide monthly reports to the program manager including:
(i)
scholarship account balances and activity;
(ii)
payment processing status and issues;
(iii)
provider payment summaries; and
(iv)
reimbursement tracking; and
(c)
submit annual financial reports including:
(i)
total scholarship funds disbursed;
(ii)
account reconciliation statements; and
(iii)
audit results and responses.
(3)
The financial administrator shall:
(a)
implement payment suspensions or cancellations as directed by the program manager;
(b)
process reimbursements from providers as required;
(c)
credit returned funds to appropriate scholarship accounts; and
(d)
maintain records of all suspended or canceled payments.
(4)
The financial administrator:
(a)
may not:
(i)
approve or deny scholarship expenses;
(ii)
determine provider eligibility;
(iii)
establish program policies; and
(iv)
charge processing fees to an eligible student or pass on third-party fees related to 
the use or management of scholarship funds; and
(b)
shall:
(i)
follow all program manager directives regarding fund disbursement;
(ii)
maintain separation between policy decisions and payment processing; and
(iii)
implement internal controls to prevent unauthorized payments.
(5)
The financial administrator shall:
(a)
cooperate with all program audits;
(b)
provide requested financial records;
(c)
respond to audit findings as directed; and
(d)
implement corrective actions as required by the program manager.
Section 8, Section 
53F-6-406
 is amended to read:
53F-6-406 (Effective upon governor's approval). 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 private school, qualifying provider, or home school;
(ii)
students receiving education from a private school, qualifying provider, or home 
school;
(b)
applies to or otherwise affects the freedom of choice of a home school student, 
including the curriculum, resources, developmental planning, or any other aspect of 
the home school student's education; or
(c)
except as expressly provided in Section 
53F-6-408
 regarding LEA providers, 
expands the regulatory authority of the state, a state office holder, or an LEA to 
impose any additional regulation of a qualifying provider beyond any regulation 
necessary to administer this part.
(2)
A 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 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 
53F-6-403
 regarding qualifying providers, Section 
53F-6-408
 regarding eligible schools, or Section 
53F-6-409
 regarding eligible service 
providers, a program manager 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.
Section 9, Section 
53F-6-407
 is amended to read:
53F-6-407 (Effective upon governor's approval). Background checks for 
program manager -- Bureau responsibilities -- Fees.
(1)
As used in this section:
(a)
"Bureau" means the Bureau of Criminal Identification created in Section 
53-10-201
within the Department of Public Safety.
(b)
"Department" means the Department of Public Safety.
(c)
"Division" means the Criminal Investigations and Technical Services Division 
created in Section 
53-10-103
.
(d)
"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.
(e)
"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.
(f)
"WIN Database" means the Western Identification Network Database that consists of 
eight western states sharing one electronic fingerprint database.
(2)
The program manager 
Each contracted entity 
shall:
(a)
require an employee or officer of the 
program manager
contracted entity
 to submit 
to a criminal background check and ongoing monitoring;
(b)
collect the following from an employee or officer of the 
program manager
contracted entity
:
(i)
personal identifying information;
(ii)
a fee described in Subsection 
(4)
; and
(iii)
consent, on a form specified by the program manager, for:
(A)
an initial fingerprint-based background check by the 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 
program manager
contracted entity
;
(c)
submit the personal identifying information of an employee or officer of the 
program manager
contracted entity
 to the bureau for:
(i)
an initial fingerprint-based background check by the 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 program manager;
(d)
identify the appropriate privacy risk mitigation strategy that will be used to ensure 
that the 
program manager 
contracted entity 
only receives notifications for 
individuals with whom the 
program manager
contracted entity
 maintains an 
authorizing relationship; and
(e)
submit the information to the bureau for ongoing monitoring through registration 
with the systems described in Subsection 
(3)
.
(3)
The bureau shall:
(a)
upon request from the program manager, register the fingerprints submitted by the 
program manager 
contracted entity 
as part of a background check with the WIN 
Database rap back system, or any successor system;
(b)
notify the program manager when a new entry is made against an individual whose 
fingerprints are registered with the WIN Database rap back system regarding:
(i)
an alleged offense; or
(ii)
a conviction, including a plea in abeyance;
(c)
assist the 
program manager
contracted entity
 to identify the appropriate privacy risk 
mitigation strategy that is to be used to ensure that the 
program manager
contracted 
entity
 only receives notifications for individuals with whom the authorized 
entity 
maintains
entity maintains
 an authorizing relationship; and
(d)
collaborate with the 
program manager
contracted entity
 to provide training to 
appropriate 
program manager
contracted entity
 employees on the notification 
procedures and privacy risk mitigation strategies described in this section.
(4)
(a)
The division shall impose fees that the division sets in accordance with Section 
63J-1-504
 for the fingerprint card of an employee or officer of the program manager, 
for a 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 10, Section 
53F-6-408
 is amended to read:
53F-6-408 (Effective upon governor's approval). Eligible schools.
(1)
To be eligible to receive scholarship funds on behalf of a scholarship student as an 
eligible school, a private school with 150 or more enrolled students shall:
(a)
(i)
contract with an independent licensed certified public accountant to conduct an 
agreed upon procedures engagement as the state board adopts, or obtain an audit 
and report that:
(A)
a licensed independent certified public accountant conducts in accordance 
with generally accepted auditing standards;
(B)
presents the financial statements in accordance with generally accepted 
accounting principles; and
(C)
audits financial statements from within the 12 months immediately preceding 
the audit; and
(ii)
submit the audit report or report of the agreed upon procedure to the program 
manager when the private school applies to receive scholarship funds;
(b)
comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d;
(c)
provide a written disclosure to the parent of each prospective scholarship student, 
before the student is enrolled, of:
(i)
the education services that the school will provide to the scholarship student, 
including the cost of the provided services;
(ii)
tuition costs;
(iii)
additional fees the school will require a parent to pay during the school year; and
(iv)
the skill or grade level of the curriculum in which the prospective scholarship 
student will participate; and
(d)
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)
a current Utah educator license issued by the state board under Title 53E, 
Chapter 6, Education Professional Licensure; or
(B)
if the private school is not physically located in Utah, a current educator 
license in the state where the private school is physically located; and
(ii)
a contract employee.
(2)
A private school described in Subsection (1) is not eligible to receive scholarship funds 
if:
(a)
the private school requires a scholarship student to sign a contract waiving the 
scholarship student's right to transfer to another qualifying provider during the school 
year;
(b)
the audit report described in Subsection (1)(a) contains a going concern explanatory 
paragraph; or
(c)
the report of the agreed upon procedures described in Subsection (1)(a) shows that 
the private school does not have adequate working capital to maintain operations for 
the first full year.
(3)
To be eligible to receive scholarship funds on behalf of a scholarship student as an 
eligible school, a private school with fewer than 150 enrolled students shall:
(a)
provide to the program manager
 and financial administrator
:
(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 a 
scholarship student; and
(iv)
any other information as required by the program manager
 or financial 
administrator
; and
(b)
comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d.
(4)
A private school described in Subsection (3) is not eligible to receive scholarship funds 
if the private school requires a scholarship student to sign a contract waiving the 
student's rights to transfer to another qualifying provider during the school year.
(5)
To be eligible to receive scholarship funds on behalf of a scholarship student as an 
eligible school, an LEA shall:
(a)
provide to the program manager
 and financial administrator
:
(i)
a federal employer identification number;
(ii)
the LEA's address and contact information; and
(iii)
the amount to be charged under the program
 for
, in correlation with the LEA's 
course and activity fee schedules, and a description of a class, program, or service 
the LEA provides to a 
home-based 
scholarship student;
(b)
comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d; and
(c)
ensure the provision of services to a scholarship student through which:
(i)
the scholarship student does not enroll in the LEA; and
(ii)
in accordance with Subsection 
53F-2-302
(2), the LEA does not receive WPU 
funding related to the student's participation with the LEA
.
;
(d)
treat a scholarship student the same as the LEA would treat an enrolled student, 
including in:
(i)
participation allowances;
(ii)
audition rules;
(iii)
athletic team participation;
(iv)
extracurricular activities; and
(v)
co-curricular activities;
(e)
not deny a scholarship student participation in any activity, team, or program simply 
because:
(i)
the student is a scholarship student; or
(ii)
of liability concerns specific to the student's scholarship status;
(f)
establish a transparent and fair fee structure for scholarship expenses offered by the 
LEA, including a fee schedule that:
(i)
is based on actual costs of providing services;
(ii)
is consistent with fees charged to enrolled students;
(iii)
itemizes all charges and fees;
(iv)
explains the basis for each fee; and
(v)
is updated annually;
(g)
provide the same liability coverage to scholarship students as provided to enrolled 
students; and
(h)
in accordance with Subsection 
53F-6-402(7)
, create and maintain a distinct identifier 
in the LEA's student information system that:
(i)
clearly identifies a scholarship student; and
(ii)
distinguishes the scholarship student from a student enrolled in the LEA.
(6)
An LEA described in Subsection (5) is not eligible to receive scholarship funds if:
(a)
the LEA requires a public education system scholarship student to sign a contract 
waiving the student's rights to engage with another qualifying provider for a 
scholarship expense during the school year; or
(b)
the LEA refuses to offer services that do not require LEA enrollment to scholarship 
students under the program.
(7)
Residential treatment facilities licensed by the state are not eligible to receive 
scholarship funds.
(8)
A private school or LEA intending to receive scholarship funds shall:
(a)
(i)
for a private school, submit an application to the program manager; or
(ii)
for an LEA, submit a notice to the program manager containing the information 
described in Subsection (5)(a); and
(b)
agree to not refund, rebate, or share scholarship funds with scholarship students or 
scholarship student's parents in any manner except remittances or refunds
 processed 
through the financial administrator
 to a scholarship account in accordance with this 
part and procedures that the program manager establishes
, and the payment schedule 
described in Section 
53F-6-411
.
(9)
The program manager shall:
(a)
if the private school or LEA meets the eligibility requirements of this section, 
recognize the private school or LEA as an eligible school and, for a private school, 
approve the application; and
(b)
make available to the public a list of eligible schools approved under this section.
(10)
A private school approved under this section that changes ownership shall:
(a)
cease operation as an eligible school until:
(i)
the school submits a new application to the program manager; and
(ii)
the program manager approves the new application; and
(b)
demonstrate that the private school continues to meet the eligibility requirements of 
this section.
(11)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
state board shall establish rules for an LEA to create and publish fee structures for 
scholarship students.
Section 11, Section 
53F-6-409
 is amended to read:
53F-6-409 (Effective upon governor's approval). Eligible service providers.
(1)
To be an eligible service provider, a private program or service:
(a)
shall provide to the program manager
 and financial administrator
:
(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 program 
manager;
(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 program manager 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 program manager; 
(b)
complete all required orientation programs established by the program manager 
before receiving any scholarship funds and maintain a current orientation status 
throughout participation in the program; 
and
(b)
(c)
agree to not refund, rebate, or share scholarship funds with scholarship students 
or scholarship students' parents in any manner except remittances or refunds
processed through the financial administrator
 to a scholarship account in accordance 
with this part and procedures that the program manager establishes.
(4)
The program manager 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 program manager; and
(ii)
the program manager approves the new application; and
(b)
demonstrate that the private program or service continues to meet the eligibility 
requirements of this section.
(6)
The following are not eligible service providers:
(a)
a parent of a home-based scholarship student or a home school student solely in 
relation to the parent's child; or
(b)
any other individual that does not meet the requirements described in this section.
(7)
Nothing prohibits an entity that provides education services under the Statewide Online 
Education Program described in
 Title 53F, 
Chapter 4, Part 5, Statewide Online 
Education Program, from operating as an eligible service provider under this part to 
provide education services to scholarship students.
Section 12, Section 
53F-6-410
 is amended to read:
53F-6-410 (Effective upon governor's approval). Parental rights -- Optional 
assessment.
(1)
In accordance with Section 
53G-6-803
 regarding a parent's right to academic 
accommodations, nothing in this chapter restricts or affects a parent's interests and role 
in the care, custody, and control of the parent's child, including the duty and right to 
nurture and direct the child's upbringing and education.
(2)
(a)
A parent may request that the program manager facilitate one of the following 
assessments of the parent's scholarship student:
(i)
a standards assessment described in Section 
53E-4-303
;
(ii)
a high school assessment described in Section 
53E-4-304
;
(iii)
a college readiness assessment described in Section 
53E-4-305
;
(iv)
an assessment of students in grade 3 to measure reading grade level described in 
Section 
53E-4-307
; or
(v)
a nationally norm-referenced assessment.
(b)
(i)
Notwithstanding any other provision of law, the entity administering an 
assessment described in Subsection 
(2)(a)
 to a scholarship student in accordance 
with this section may not report the result of or any other data pertaining to the 
assessment or scholarship student to a person other than the program manager, the 
scholarship student, or the scholarship student's parent.
(ii)
The program manager may not report or communicate the result or data described 
in Subsection 
(2)(b)(i)
 to a person other than the relevant scholarship student and 
the scholarship student's parent unless the result or data is included in a 
de-identified compilation of data related to all scholarship students.
(c)
In any communication from the program manager regarding an assessment described 
in this Subsection 
(2)
, the program manager shall include a disclaimer that no 
assessment is required.
(d)
The completion of an optional assessment under this section satisfies the portfolio 
eligibility qualification described in Subsection 
53F-6-402(3)(d)
.
(3)
The rights described in this section shall be exercised in conjunction with the 
procedures for students with special needs as described in Section 
53F-6-416
.
Section 13, Section 
53F-6-411
 is amended to read:
53F-6-411 (Effective upon governor's approval). Program funding.
(1)
If
Except as provided in Subsection (7), if
 a scholarship student enters or reenters the 
public education system during a given school year:
(a)
no later than five business days after the day on which the student enters or reenters 
the public education system, the program manager shall
 direct the financial 
administrator to
 immediately remove the balance in the scholarship student's 
scholarship account for other use within the program;
(b)
the state board may not distribute any remaining state funds to the program manager
or financial administrator
 for the student; and
(c)
the program manager may
 direct the financial administrator to
 use the balance 
described in Subsection 
(1)(a)
 for another scholarship student.
(2)
At the end of a school year, a program manager shall
:
(a)
direct the financial administrator to:
(i)
withdraw any remaining scholarship funds in a scholarship account
;
 and 
(ii)
retain the scholarship funds for disbursement in the following year.
allocate 
these funds as rollovers in accordance with Subsection (4); and
(b)
return any funds not allocated as rollovers to the program manager or the state board 
to be deposited in the restricted account described in Subsection 
(4)
.
(3)
(a)
To administer the program, the program manager may use up to 
the lesser of 
5% 
or $2,500,000 
of the funds the Legislature appropriates for the program.
(b)
Subject to Subsection 
(3)(a)
, the 
The 
funds for program administration described in 
Subsection 
(3)(a)
 are nonlapsing.
(c)
The program manager may not retain administrative cost balances in excess of 25% 
of total administrative costs in any fiscal year.
(4)
(a)
There is created a restricted account within the Income Tax Fund known as the 
"Utah Fits All Scholarship Program Restricted Account."
(b)
The restricted account shall consist of:
(i)
money appropriated to the restricted account by the Legislature;
(ii)
interest earned on the restricted account; and
(iii)
in accordance with Subsection 
(6)
, unused scholarship funds returned to the 
restricted account under this section.
(5)
(a)
Subject to legislative appropriations, the state board shall distribute scholarship 
funds to the program manager or financial administrator from the restricted account 
in two equal payments:
(i)
the first payment at the beginning of the scholarship year; and
(ii)
the second payment during the second half of the scholarship year.
(b)
Notwithstanding Subsection (5)(a), the program manager may authorize 
disbursement of a scholarship student's full annual award amount at the beginning of 
the scholarship year if:
(i)
 the funds are for private school tuition; or
(ii)
the program manager determines immediate disbursement is necessary for the 
student's education.
(6)
The program manager shall:
(a)
allow unused scholarship funds to rollover in a 2:1 ratio, where:
(i)
for every three dollars of unused scholarship funds, two dollars rollover to the 
scholarship student to be added to the student's scholarship award for the next 
scholarship year, up to a maximum rollover amount of $2,000 that may cumulate; 
and
(ii)
the remaining unused funds return to the restricted account;
(b)
verify the scholarship student maintains program eligibility before executing any 
rollover; and
(c)
direct the financial administrator to return any unused funds not allocated as 
rollovers to the restricted account described in this section.
(7)
(a)
Before determining a student has reentered public education, the program 
manager shall:
(i)
notify the parent in writing of:
(A)
the identified public school enrollment; and
(B)
the parent's right to verify or dispute the enrollment finding; and
(ii)
allow the parent five business days to:
(A)
confirm the accuracy of the enrollment; or
(B)
provide evidence disputing the enrollment finding.
(b)
A parent may appeal an incorrect reentry determination by submitting documentation 
to the program manager within the time specified in Subsection 
(7)
(a).
Section 14, Section 
53F-6-412
 is amended to read:
53F-6-412 (Effective upon governor's approval). Reports.
Beginning in 2025 and in
In
 accordance with Section 
68-3-14
 and the Family 
Educational Rights and Privacy Act, 20 U.S.C. Sec. 1232g, the program manager shall submit 
a report on the program to the Education Interim Committee no later than September 1 of each 
year that includes:
(1)
the number and outcomes of appeals processed through the appeals process established 
in Section 
53F-6-417
;
(2)
the total amount and usage of rollover funds as described in Section 
53F-6-411
;
(3)
a summary of the income verification process and outcomes, including the number of 
households verified through each method described in Section 
53F-6-402
;
(4)
for scholarship rollovers:
(a)
the total amount of funds rolled over;
(b)
the number of students with rollovers; and
(c)
the impact on subsequent year scholarship amounts;
(5)
for restricted expenses:
(a)
the total amount spent on extracurricular and physical education expenses;
(b)
the percentage of scholarship funds used for restricted expenses by students; and
(c)
the number of students reaching:
(i)
the 20% restriction limit for physical education expenses; and
(ii)
the 20% limit for extracurricular related expenses;
(6)
in consultation with the financial administrator, all financial data necessary for the 
preparation of the report required under this section no later than 30 days before each 
reporting deadline;
(1)
(7)
the total amount of tuition and fees qualifying providers charged for the current 
year and previous two years;
(2)
(8)
the total amount of goods paid for with scholarship funds in the previous year and a 
general characterization of the types of goods;
(3)
(9)
administrative costs of the program;
(4)
(10)
the number of scholarship students from each county and the aggregate number of 
eligible students on the waitlist described in Section 
53F-6-405
;
(5)
(11)
the percentage of first-time scholarship students 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;
(6)
(12)
the program manager's strategy and outreach efforts to reach eligible students 
whose family income is at or below 200% of the federal poverty level and related 
obstacles to enrollments;
(7)
(13)
in the report that the program manager submits in 2025, information on steps the 
program manager has taken and processes the program manager has adopted to 
implement the program; 
and
(14)
breakdown of scholarship students by:
(a)
private school enrollment versus home-based education; and
(b)
enrollment preference tier through which the student received the scholarship; and
(8)
(15)
any other information regarding the program and the program's implementation 
that the committee requests.
Section 15, Section 
53F-6-415.5
 is enacted to read:
53F-6-415.5 (Effective upon governor's approval). Transition provisions.
(1)
As used in this section:
(a)
"Previous contracted entity" means an organization that was contracted to perform 
program functions immediately prior to a transition event.
(b)
"Transition event" means:
(i)
the expiration or termination of a contracted entity contract;
(ii)
the inability of a contracted entity to perform required duties; or
(iii)
any other circumstance requiring transition to a new contracted entity, including 
legislative changes to this part or the program appropriations.
(c)
"Transition period" means the time between:
(i)
the occurrence of a transition event; and
(ii)
the effective date of a contract with a new contracted entity selected through the 
state's procurement process.
(2)
Upon the occurrence of a transition event, the Department of Operations shall:
(a)
serve as a temporary bridge program administrator solely during the time required to:
(i)
maintain essential program operations with the full cooperation from the previous 
contracted entity that is undergoing termination of contract; and
(ii)
complete the procurement process for selecting new contracted entities;
(b)
immediately initiate and complete the procurement process described in Section 
53F-6-404
 in an expedited manner;
(c)
establish clear timelines and procedures for the transition process between the 
previous contracted entity to the Department of Operations to the new contracted 
entity;
(d)
if the transition event affects the financial administrator:
(i)
immediately secure temporary financial services through an emergency 
procurement process to ensure continuity of payment processing;
(ii)
ensure the temporary financial services provider meets all qualifications of a 
financial administrator under Section 
53F-6-401
; and
(iii)
maintain separation between program administration and financial operations 
during the transition period; and
(e)
provide proper notice to and coordinate with:
(i)
qualifying providers;
(ii)
parents;
(iii)
all contracted entities;
(iv)
the state board; and
(v)
other affected parties.
(3)
During the transition period, the Department of Operations:
(a)
shall ensure with full cooperation and support of the previous contracted entity:
(i)
all existing scholarship accounts remain valid and operational;
(ii)
all qualifying provider approvals remain in effect;
(iii)
no interruption in:
(A)
scholarship payments;
(B)
account access for parents;
(C)
contracted entity operations; and
(D)
other essential program functions;
(iv)
if a temporary financial services provider is necessary:
(A)
the provider's compliance with program requirements;
(B)
proper processing of scholarship payments; and
(C)
appropriate separation of duties is maintained between the provider and the 
Department of Operations;
(v)
preservation of all program data and records for transfer to new contracted 
entities; and
(vi)
continuation of necessary reporting and compliance activities;
(b)
may not:
(i)
implement new policies or procedures;
(ii)
modify existing program operations; or
(iii)
directly handle or process any scholarship funds; and
(c)
shall maintain the program's operational independence from governmental control.
(4)
The Department of Operations' temporary bridge program administrator role:
(a)
is limited to maintaining essential program functions;
(b)
may not extend beyond the minimum time necessary to complete the procurement 
process;
(c)
does not constitute ongoing program management or operations;
(d)
shall be performed solely to maintain program continuity during the transition to a 
new program manager; and
(e)
shall terminate immediately upon the new program manager assuming the duties of a 
program manager.
(5)
All contracts, agreements, and obligations with the previous contracted entity shall:
(a)
remain in effect during the transition period unless specifically terminated through 
appropriate procedures;
(b)
be reviewed by the Department of Operations for continuation, modification, or 
termination; and
(c)
if necessary, be transferred to appropriate entities as determined through the 
procurement process.
(6)
Upon selection and awarding of a new contract to a contracted entity, the Department of 
Operations shall:
(a)
facilitate an orderly transfer of all relevant program operations, records, and data;
(b)
ensure the new contracted entity is prepared to assume all relevant program 
responsibilities; and
(c)
except for contract administrator duties, terminate all temporary administrative duties.
(7)
During the transition period:
(a)
if a temporary financial services provider is necessary:
(i)
the provider shall process all program payments and maintain all scholarship 
accounts;
(ii)
the Department of Operations may not directly handle or process any scholarship 
funds; and
(iii)
the temporary financial services provider shall receive the portion of 
administrative funds necessary for financial operations;
(b)
the state board shall:
(i)
allocate administrative funds as directed by the Department of Operations to:
(A)
the temporary financial services provider for financial operations; and
(B)
other contracted entities continuing to perform program functions; and
(ii)
ensure the total administrative costs do not exceed the limit in Subsection 
53F-6-411(3)(a)(i)
; and
(c)
the Department of Operations:
(i)
shall maintain detailed accounting of all transition period administrative 
expenditures;
(ii)
shall report transition period expenditures to the state board;
(iii)
may not directly handle scholarship funds or accounts; and
(iv)
shall ensure proper separation between program administration and financial 
operations is maintained throughout the transition period.
(8)
Any unexpended administrative funds at the end of the transition period shall:
(a)
transfer to the newly contracted entities upon completion of the procurement process; 
or
(b)
return to the restricted account described in Section 
53F-6-411
 if not needed for 
contracted entity operations.
(9)
Within 30 days after terminating temporary administrative duties under Subsection 
(6)(c), the Department of Operations shall submit a report to the Executive 
Appropriations Committee that includes:
(a)
a summary of actions taken during the transition period;
(b)
an accounting of all expenditures made during the transition period;
(c)
confirmation that all program operations, records, and data have been properly 
transferred to new contracted entities; and
(d)
verification that all temporary administrative duties have been terminated.
Section 16, Section 
53F-6-416
 is enacted to read:
53F-6-416 (Effective upon governor's approval). Students with special needs.
The program manager shall coordinate with the program manager of the Carson Smith 
Opportunity Scholarship Program created in Section 
53E-7-402
 and the Carson Smith 
Scholarship Program created in Section 
53F-4-302
 to ensure that a student is not receiving 
duplicate benefits.
Section 17, Section 
53F-6-417
 is enacted to read:
53F-6-417 (Effective upon governor's approval). Appeals process for denied 
reimbursements.
In accordance with required program administration the program manager shall:
(1)
follow an appeals process for when a student's eligibility is suspended or disqualified 
under Section 
53F-6-405
; and
(2)
establish the process and procedures for the appeals process described in this section.
Section 18. 
Effective Date.
This bill takes effect:
(1)
except as provided in Subsection (2), 
May 7, 2025
; or
(2)
if approved by two-thirds of all members elected to each house:
(a)
upon approval by the governor;
(b)
without the governor's signature, the day following the constitutional time limit of 
Utah Constitution, Article VII, Section 8; or
(c)
in the case of a veto, the date of veto override.
3-5-25 9:20 AM