Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 473 (2025GS)

Sponsor

Rep. Peck, Nicholeen P.

Final action

House/ filed 3/7/2025

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• defines terms;
• includes information regarding sensitive material in the information the state board provides through a certain parent portal;
• requires each local education agency (LEA) to:
• provide certain information to parents at the time of student registration each year; and
• maintain a section on the homepage of the LEA's website regarding sensitive material reporting;
• allows the state board, an LEA, or the Utah Education and Telehealth Network (UETN) to rescind certain contracts if a vendor does not remove access to digital sensitive material after a number of instances;
• requires the state board, an LEA, or UETN to:
• remove access to digital instructional material that a vendor provides after a certain threshold of violations;
• provide certain notice to each vendor with which the entity contracts to provide digital instructional material in a school setting; and
• ensure that any database or school-provided device which a student may access uses a filter or other software to prohibit access to sensitive material; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

17
53E-1-201
53G-6-806
53G-10-103
67-3-1
67-3-14
School Digital Materials Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Nicholeen P. Peck
Senate Sponsor: Keven J. Stratton
LONG TITLE
General Description:
This bill amends and enacts provisions regarding the accessibility of sensitive material 
through digital instructional material in a school setting.
Highlighted Provisions:
This bill:
defines terms;
requires the state auditor to establish and oversee a digital materials regulator (regulator), 
including reporting on the actions of the regulator to the Education Interim Committee;
requires the regulator to:
investigate allegations regarding sensitive material in digital instructional materials;
impose a fine on a vendor that provides digital access to sensitive material in a school 
setting; and
make recommendations regarding the termination of contracts with fined vendors;
includes information regarding sensitive material in the information the state board 
provides through a certain parent portal;
allows the regulator to initiate a sensitive material review in any local education agency 
(LEA);
requires the state board to report alleged sensitive material violations involving digital 
instructional material that a vendor provides to the regulator;
requires each LEA to:
provide certain information to parents at the time of student registration each year; and
maintain a section on the homepage of the LEA's website regarding sensitive material 
reporting;
allows the state board, an LEA, or the Utah Education and Telehealth Network (UETN) 
to rescind certain contracts if a vendor does not remove access to digital sensitive 
material;
requires the state board, an LEA, or UETN to:
provide certain notice to each vendor with which the entity contracts to provide digital 
instructional material in a school setting; and
ensure that any database or device which a student may access uses a filter or other 
software to prohibit access to sensitive material; and
makes technical and conforming 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
, as last amended by Laws of Utah 2024, Chapters 3, 460 and 525
53G-6-806
, as last amended by Laws of Utah 2024, Chapter 21
53G-10-103
, as last amended by Laws of Utah 2024, Chapter 318
67-3-1
, as last amended by Laws of Utah 2024, Chapters 3, 158
ENACTS:
67-3-14
, 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. 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 
63N-20-107
 by the Governor's Office of Economic 
Opportunity on UPSTART;
(m)
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)
upon request, the report described in Section 
53F-5-219
 by the state board on the 
Local Innovations Civics Education Pilot Program;
(o)
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)
the report described in Section 
53B-35-202
 regarding the Higher Education and 
Corrections Council;
(q)
the report described in Section 
53G-7-221
 by the state board regarding innovation 
plans;
(r)
the reports described in Section 
53F-6-412
 regarding the Utah Fits All Scholarship 
Program
.
; and
(s)
the report described in Section 
67-3-1
 from the state auditor regarding the digital 
materials regulator.
(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 
53G-6-806
 is amended to read:
53G-6-806. Parent portal. 
(1)
As used in this section:
(a)
"Parent portal" means the posting the state board is required to provide under this 
section.
(b)
"School" means a public elementary or secondary school, including a charter school.
(2)
(a)
The state board shall post information that allows a parent of a student enrolled in 
a school to:
(i)
access an LEA's policies required by Sections 
53G-9-203
 and 
53G-9-605
;
(ii)
be informed of resources and steps to follow when a student has been the subject, 
perpetrator, or bystander of bullying, cyber-bullying, hazing, retaliation, or 
abusive conduct such as:
(A)
resources for the student, including short-term mental health services;
(B)
options for the student to make changes to the student's educational 
environment;
(C)
options for alternative school enrollment;
(D)
options for differentiated start or stop times;
(E)
options for differentiated exit and entrance locations; and
(F)
the designated employee for an LEA who addresses incidents of bullying, 
cyber-bullying, hazing, retaliation, and abusive conduct;
(iii)
be informed of the steps and resources for filing a grievance with a school or 
LEA regarding bullying, cyber-bullying, hazing, or retaliation;
(iv)
be informed of the steps and resources for seeking accommodations under the 
Americans with Disabilities Act of 1990, 42 U.S.C. 
sec. 
12101 et seq;
(v)
be informed of the steps and resources for seeking accommodations under state or 
federal law regarding religious accommodations;
(vi)
receive information regarding the reporting of sensitive material, as described in 
Section 
53G-10-103
;
(vi)
(vii)
be informed of the steps and resources for filing a grievance for an alleged 
violation of state or federal law, including:
(A)
Title VI of the Civil Rights Act of 1964, 42 U.S.C. Sec. 2000d-2000d-4;
(B)
Title IX of the Education Amendments of 1972, 20 U.S.C. Sec. 1681-1688;
(C)
Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. Sec. 794; and
(D)
Title II of the Americans with Disabilities Act of 1990, 42 U.S.C. Sec. 
12131-12165;
(vii)
(viii)
receive information about constitutional rights and freedoms afforded to 
families in public education;
(viii)
(ix)
be informed of how to access an internal audit hotline if established by the 
state board; and
(ix)
(x)
be informed of services for military families.
(b)
In addition to the information required under Subsection (2)(a), the state board:
(i)
shall include in the parent portal:
(A)
the comparison tool created under Section 
53G-6-805
; 
(B)
school level safety data, including data points described in Section 
53E-3-516
; 
and
(C)
a link to the public safety portal described in Section 
63A-16-1002
; and
(ii)
may include in the parent portal other information that the state board determines 
is helpful to parents.
(3)
(a)
The state board shall post the parent portal at a location that is easily located by a 
parent.
(b)
The state board shall update the parent portal at least annually.
(c)
In accordance with state and federal law, the state board may collaborate with a 
third-party to provide safety data visualization in comparison to other states' data.
(4)
An LEA shall annually notify each of the following of how to access the parent portal:
(a)
a parent of a student; and
(b)
a teacher, principal, or other professional staff within the LEA.
Section 3, Section 
53G-10-103
 is amended to read:
53G-10-103. Sensitive instructional materials.
(1)
As used in this section:
(a)
"Digital materials regulator" means the regulator under the oversight of the state 
auditor in accordance with Section 
67-3-14
.
(a)
(b)
(i)
"Instructional material" means a material, regardless of format, used:
(A)
as or in place of textbooks to deliver curriculum within the state curriculum 
framework for courses of study by students; or
(B)
to support a student's learning in any school setting.
(ii)
"Instructional material" includes reading materials, handouts, videos, digital 
materials, websites, online applications, and live presentations.
(iii)
"Instructional material" does not mean exclusively library materials.
(b)
(c)
"LEA governing board" means
:
 the same as that term is defined in Section 
53E-1-102
.
(i)
for a school district, the local school board;
(ii)
for a charter school, the charter school governing board; or
(iii)
for the Utah Schools for the Deaf and the Blind, the state board.
(c)
(d)
"Material" means the same as that term is defined in Section 
76-10-1201
.
(d)
(e)
"Minor" means any person less than 18 years old.
(e)
(f)
"Objective sensitive material" means an instructional material that constitutes 
pornographic or indecent material, as that term is defined in Section 
76-10-1235
, 
under the non-discretionary standards described in Subsection 
76-10-1227
(1)(a)(i), 
(ii), or (iii).
(f)
(g)
"Public school" means:
(i)
a district school;
(ii)
a charter school; or
(iii)
the Utah Schools for the Deaf and the Blind.
(g)
(h)
(i)
"School setting" means, for a public school:
(A)
in a classroom;
(B)
in a school library; or
(C)
on school property.
(ii)
"School setting" includes the following activities that an organization or 
individual or organization outside of a public school conducts, if a public school 
or an LEA sponsors or requires the activity:
(A)
an assembly;
(B)
a guest lecture;
(C)
a live presentation; or
(D)
an event.
(h)
(i)
(i)
"Sensitive material" means an instructional material that constitutes 
objective sensitive material or subjective sensitive material.
(ii)
"Sensitive material" does not include an instructional material:
(A)
that an LEA selects under Section 
53G-10-402
;
(B)
for a concurrent enrollment course that contains sensitive material and for 
which a parent receives notice from the course provider of the material before 
enrollment of the parent's child and gives the parent's consent by enrolling the 
parent's child;
(C)
for medical courses;
(D)
for family and consumer science courses; or
(E)
for another course the state board exempts in state board rule.
(iii)
"Subjective sensitive material" means an instructional material that constitutes 
pornographic or indecent material, as that term is defined in Section 
76-10-1235
, 
under the following factor-balancing standards:
(A)
material that is harmful to minors under Section 
76-10-1201
;
(B)
material that is pornographic under Section 
76-10-1203
; or
(C)
material that includes certain fondling or other erotic touching under 
Subsection 
76-10-1227
(1)(a)(iv).
(j)
"UETN" means the Utah Education and Telehealth Network, created in Section 
53B-17-105
.
(k)
"Vendor" means the same as that term is defined in Section 
67-3-14
.
(2)
(a)
Sensitive materials are prohibited in the school setting.
(b)
A public school or an LEA may not:
(i)
adopt, use, distribute, provide a student access to, or maintain in the school setting, 
sensitive materials; or
(ii)
permit a speaker or presenter in the school setting to display or distribute 
sensitive materials.
(c)
In evaluating, selecting, or otherwise considering action related to a given 
instructional material under this section, each public school and each LEA shall 
prioritize protecting children from the harmful effects of illicit pornography over 
other considerations in evaluating instructional material.
(d)
If an instructional material constitutes objective sensitive material:
(i)
a public school or an LEA is not required to engage in a review under a subjective 
sensitive material standard; and
(ii)
the outcome of a subjective sensitive material evaluation has no bearing on the 
non-discretionary objective sensitive material conclusion.
(3)
(a)
Except as provided in Subsection (3)(b), the following individuals may initiate a 
sensitive material review under this section:
(i)
an employee of the relevant LEA;
(ii)
a student who is enrolled in the relevant LEA;
(iii)
a parent of a child who is enrolled in the relevant LEA;
 or
(iv)
a member of the relevant LEA governing board
.
; or
(v)
the digital materials regulator.
(b)
(i)
As used in this Subsection (3)(b), "unsuccessful challenge" means an allegation 
that a given instructional material constitutes sensitive material that the LEA 
concludes to be erroneous, either on direct review or on appeal to the LEA 
governing board, resulting in the retention of the given instructional material.
(ii)
Notwithstanding Subsection (3)(a), after an individual makes three unsuccessful 
challenges during a given academic year, the individual may not trigger a 
sensitive material review under this section during the remainder of the given 
academic year.
(4)
Upon receipt of an allegation from an individual described in Subsection (3)(a), an LEA 
shall:
(a)
(i)
make an initial determination as to whether the allegation presents a plausible 
claim that the challenged instructional material constitutes sensitive material, 
including whether the allegation includes excerpts and other evidence to support 
the allegation; and
(ii)
if the LEA determines that the allegation presents a plausible claim that the 
challenged instructional material constitutes sensitive material under Subsection 
(4)(a)(i), immediately remove the challenged material from any school setting that 
provides student access to the challenged material until the LEA completes the 
LEA's full review of the challenged material under this section;
(b)
(i)
engage in a review of the allegations and the challenged instructional material 
using the objective sensitive material standards; and
(ii)
if the LEA makes a determination that the challenged instructional material 
constitutes objective sensitive material, ensure that the material remains 
inaccessible to students in any school setting;
(c)
only if the LEA makes a determination that the challenged instructional material 
does not constitute objective sensitive material:
(i)
review the allegations and the challenged instructional material under the 
subjective material standards, ensuring that the review includes parents who are 
reflective of the members of the school's community when determining if an 
instructional material is subjective sensitive material;
(ii)
allow student access to the challenged instructional material during the LEA's 
subjective sensitive material review if the student's parent gives consent regarding 
the specific challenged instructional material; and
(iii)
if the LEA makes a determination that the challenged instructional material 
constitutes subjective sensitive material, ensure that the material is inaccessible to 
students in any school setting, including the termination of the parent consent 
option described in Subsection (4)(c)(ii); and
(d)
communicate to the state board the allegation and the LEA's final determination 
regarding the allegation and the challenged instructional material.
(5)
(a)
An individual described in Subsection (3)(a) may appeal an LEA's decision 
regarding a sensitive material review, regardless of whether the LEA removed or 
retained the challenged instructional material, to the LEA governing board.
(b)
An LEA governing board shall vote in a public board meeting to decide the outcome 
of a sensitive material review appeal, clearly identifying:
(i)
the board's rationale for the decision; and
(ii)
the board's determination on each component of the statutory and any additional 
policy standards the board uses to reach the board's conclusions.
(6)
An LEA governing board may not enact rules or policies that prevent the LEA 
governing board from:
(a)
revisiting a previous decision;
(b)
reviewing a recommendation of LEA personnel or a parent-related committee 
regarding a challenged instructional material; or
(c)
reconsidering a challenged instructional material if the LEA governing board 
receives additional information regarding the material.
(7)
(a)
Except as provided in Subsection (7)(d), if the threshold described in Subsection 
(7)(b) is met, each LEA statewide shall remove the relevant instructional material 
from student access.
(b)
The requirement described in Subsection (7)(a) to remove a given material from 
student access applies if the following number of LEAs makes a determination that a 
given instructional material constitutes objective sensitive material:
(i)
at least three school districts; or
(ii)
at least two school districts and five charter schools.
(c)
The state board shall:
(i)
aggregate allegations and LEA determinations described in Subsection (4)(d);
 and
(ii)
report to the digital materials regulator any allegation involving material that a 
vendor provides digitally in a school setting; and
(ii)
(iii)
no later than 10 school days after the day on which the condition described 
in Subsection (7)(b) occurs, communicate to all LEAs the application of the 
requirement described in Subsection (7)(a) to remove the material from student 
access.
(d)
(i)
When the threshold described in Subsection (7)(b) is met for a given 
instructional material, in addition to making the communication described in 
Subsection (7)(c), the state board may:
(A)
place the material on the agenda of a public board meeting within 60 days 
after the day on which the state board makes the communication to LEAs 
under Subsection (7)(c); and
(B)
at the specified state board meeting, vote to overturn the application of the 
requirement described in Subsection (7)(a) to remove a given material from 
student access statewide.
(ii)
If the state board votes to overturn the application of the statewide removal 
requirement described in Subsection (7)(a) under Subsection (7)(d)(i):
(A)
the statewide removal requirement described in Subsection (7)(a) no longer 
applies;
(B)
an LEA may choose to return the given material to student access; and
(C)
nothing affects the findings of an LEA governing board regarding removal of 
the given material within the board's LEA.
(e)
This Subsection (7) applies to sensitive materials that LEAs remove from student 
access, regardless of whether:
(i)
the sensitive material determinations occur in the same academic year; or
(ii)
a sensitive material determination occurred before July 1, 2024.
(8)
The state board shall:
(a)
in consultation with the Office of the Attorney General, provide guidance and 
training to support public schools in identifying instructional materials that meet the 
definition of sensitive materials under this section;
(b)
establish a process through which an individual described in Subsection (3)(a) may 
report to the state board an allegation that an LEA is out of compliance with this 
section; and
(c)
annually report to the Education Interim Committee, at or before the November 
interim meeting, on implementation and compliance with this section, including:
(i)
any policy the state board or an LEA adopts to implement or comply with this 
section;
(ii)
any rule the state board makes to implement or comply with this section; and
(iii)
any complaints an LEA or the state board receives regarding a violation of this 
section, including:
(A)
action taken in response to a complaint described in this Subsection (8)(c)(iii);
(B)
if an LEA retains an instructional material for which the LEA or the state 
board receives a complaint, the LEA's rationale for retaining the instructional 
material; and
(C)
compliance failures that the state board identifies through the reporting 
process described in Subsection (8)(b) and other investigations or research.
(9)
The state shall defend, indemnify, and hold harmless a person acting under color of state 
law to enforce this section for any claims or damages, including court costs and attorney 
fees, that:
(a)
a person brings or incurs as a result of this section; and
(b)
is not covered by the person's insurance policies or any coverage agreement that the 
State Risk Management Fund issues.
(10)
Subject to prioritization of the Audit Subcommittee created in Section 
36-12-8
, the 
Office of the Legislative Auditor General shall:
(a)
conduct an audit of each school district's compliance with this section, ensuring the 
completion of all school district audits before November 2028; and
(b)
annually report to the Education Interim Committee regarding completed sensitive 
material audits under this Subsection (10).
(11)
(a)
At the time of student registration each year, each LEA shall provide to parents:
(i)
a physical copy of information regarding the process for reporting sensitive 
material in a school setting within the LEA, including the role of the digital 
materials regulator to investigate allegations involving digital instructional 
material;
(ii)
an email containing the information described in Subsection 
(11)(a)(i)
; and
(iii)
a direct link to the LEA's website that addresses sensitive material reporting 
described in Subsection 
(11)(b)
.
(b)
Each LEA website shall maintain an easily accessible and clearly visible section on 
the website's homepage for reporting violations of law regarding sensitive material.
(12)
(a)
The state board, an LEA, or UETN may refuse donations of materials by a 
vendor or nonprofit, or, without any penalty or any further financial obligation, 
rescind or otherwise terminate a contract for a vendor to provide instructional 
material into which the state board, LEA, or UETN enters on or after July 1, 2025, if:
(i)
the state board or LEA governing board determines that instructional material is or 
contains sensitive material; and
(ii)
within 30 school days after the day on which the state board or LEA governing 
board provide notice of the determination described in Subsection 
(12)(a)(i)
, the 
vendor fails to eliminate the segment of the instructional material containing the 
sensitive material or otherwise remove access to the sensitive material.
(b)
In any contract for a vendor to provide digital instructional material for which the 
parties negotiate terms and into which the state board, an LEA, or UETN enters after 
July 1, 2025, the state board, LEA, or UETN shall ensure that the contract contains:
(i)
notice provisions regarding the requirements and prohibitions regarding sensitive 
material in this section; and
(ii)
provisions requiring the vendor to notify the digital materials regulator and the 
contracting entity of any update, modification, or addition to the instructional 
material the vendor provides that may contain or constitute sensitive material, 
including links to other material or websites from within the instructional material.
(c)
The state board, an LEA, or UETN may remove a segment of digital instructional 
material that is found, through the processes described in this section, to contain 
sensitive material from the relevant curriculum.
(d)
An LEA, the state board, and the Utah Education and Telehealth Network shall each:
(i)
notify each vendor with which the entity contracts to provide digital instructional 
material in a school setting regarding:
(A)
the requirements, prohibitions, and processes in this section and any relevant 
rule or policy of the contracting entity; and
(B)
the authority and duties of the digital materials regulator under Section 
67-3-14
, 
including the potential imposition of fines for violations and the requirement to 
submit an annual compliance letter to the digital materials regulator; and
(ii)
ensure that any device, database, or service that allows a student to access digital 
instructional material includes a filter or other software service that prohibits 
access to sensitive material.
Section 4, Section 
67-3-1
 is amended to read:
67-3-1. Functions and duties.
(1)
(a)
The state auditor is the auditor of public accounts and is independent of any 
executive or administrative officers of the state.
(b)
The state auditor is not limited in the selection of personnel or in the determination 
of the reasonable and necessary expenses of the state auditor's office.
(2)
The state auditor shall examine and certify annually in respect to each fiscal year, 
financial statements showing:
(a)
the condition of the state's finances;
(b)
the revenues received or accrued;
(c)
expenditures paid or accrued;
(d)
the amount of unexpended or unencumbered balances of the appropriations to the 
agencies, departments, divisions, commissions, and institutions; and
(e)
the cash balances of the funds in the custody of the state treasurer.
(3)
(a)
The state auditor shall:
(i)
audit each permanent fund, each special fund, the General Fund, and the accounts 
of any department of state government or any independent agency or public 
corporation as the law requires, as the auditor determines is necessary, or upon 
request of the governor or the Legislature;
(ii)
perform the audits in accordance with generally accepted auditing standards and 
other auditing procedures as promulgated by recognized authoritative bodies; and
(iii)
as the auditor determines is necessary, conduct the audits to determine:
(A)
honesty and integrity in fiscal affairs;
(B)
accuracy and reliability of financial statements;
(C)
effectiveness and adequacy of financial controls; and
(D)
compliance with the law.
(b)
If any state entity receives federal funding, the state auditor shall ensure that the 
audit is performed in accordance with federal audit requirements.
(c)
(i)
The costs of the federal compliance portion of the audit may be paid from an 
appropriation to the state auditor from the General Fund.
(ii)
If an appropriation is not provided, or if the federal government does not 
specifically provide for payment of audit costs, the costs of the federal compliance 
portions of the audit shall be allocated on the basis of the percentage that each 
state entity's federal funding bears to the total federal funds received by the state.
(iii)
The allocation shall be adjusted to reflect any reduced audit time required to 
audit funds passed through the state to local governments and to reflect any 
reduction in audit time obtained through the use of internal auditors working 
under the direction of the state auditor.
(4)
(a)
Except as provided in Subsection (4)(b), the state auditor shall, in addition to 
financial audits, and as the auditor determines is necessary, conduct performance and 
special purpose audits, examinations, and reviews of any entity that receives public 
funds, including a determination of any or all of the following:
(i)
the honesty and integrity of all the entity's fiscal affairs;
(ii)
whether the entity's administrators have faithfully complied with legislative intent;
(iii)
whether the entity's operations have been conducted in an efficient, effective, and 
cost-efficient manner;
(iv)
whether the entity's programs have been effective in accomplishing the intended 
objectives; and
(v)
whether the entity's management, control, and information systems are adequate, 
effective, and secure.
(b)
The auditor may not conduct performance and special purpose audits, examinations, 
and reviews of any entity that receives public funds if the entity:
(i)
has an elected auditor; and
(ii)
has, within the entity's last budget year, had the entity's financial statements or 
performance formally reviewed by another outside auditor.
(5)
The state auditor:
(a)
shall administer any oath or affirmation necessary to the performance of the duties of 
the auditor's office; and
(b)
may:
(i)
subpoena witnesses and documents, whether electronic or otherwise; and
(ii)
examine into any matter that the auditor considers necessary.
(6)
The state auditor may require all persons who have had the disposition or management 
of any property of this state or its political subdivisions to submit statements regarding 
the property at the time and in the form that the auditor requires.
(7)
The state auditor shall:
(a)
except where otherwise provided by law, institute suits in Salt Lake County in 
relation to the assessment, collection, and payment of revenues against:
(i)
persons who by any means have become entrusted with public money or property 
and have failed to pay over or deliver the money or property; and
(ii)
all debtors of the state;
(b)
collect and pay into the state treasury all fees received by the state auditor;
(c)
perform the duties of a member of all boards of which the state auditor is a member 
by the constitution or laws of the state, and any other duties that are prescribed by the 
constitution and by law;
(d)
stop the payment of the salary of any state official or state employee who:
(i)
refuses to settle accounts or provide required statements about the custody and 
disposition of public funds or other state property;
(ii)
refuses, neglects, or ignores the instruction of the state auditor or any controlling 
board or department head with respect to the manner of keeping prescribed 
accounts or funds; or
(iii)
fails to correct any delinquencies, improper procedures, and errors brought to the 
official's or employee's attention;
(e)
establish accounting systems, methods, and forms for public accounts in all taxing or 
fee-assessing units of the state in the interest of uniformity, efficiency, and economy;
(f)
superintend the contractual auditing of all state accounts;
(g)
subject to Subsection (8)(a), withhold state allocated funds or the disbursement of 
property taxes from a state or local taxing or fee-assessing unit, if necessary, to 
ensure that officials and employees in those taxing units comply with state laws and 
procedures in the budgeting, expenditures, and financial reporting of public funds;
(h)
subject to Subsection (9), withhold the disbursement of tax money from any county, 
if necessary, to ensure that officials and employees in the county comply with 
Section 
59-2-303.1
; and
(i)
withhold state allocated funds or the disbursement of property taxes from a local 
government entity or a limited purpose entity, as those terms are defined in Section 
67-1a-15
 if the state auditor finds the withholding necessary to ensure that the entity 
registers and maintains the entity's registration with the lieutenant governor, in 
accordance with Section 
67-1a-15
.
(8)
(a)
Except as otherwise provided by law, the state auditor may not withhold funds 
under Subsection (7)(g) until a state or local taxing or fee-assessing unit has received 
formal written notice of noncompliance from the auditor and has been given 60 days 
to make the specified corrections.
(b)
If, after receiving notice under Subsection (8)(a), a state or independent local 
fee-assessing unit that exclusively assesses fees has not made corrections to comply 
with state laws and procedures in the budgeting, expenditures, and financial reporting 
of public funds, the state auditor:
(i)
shall provide a recommended timeline for corrective actions;
(ii)
may prohibit the state or local fee-assessing unit from accessing money held by 
the state; and
(iii)
may prohibit a state or local fee-assessing unit from accessing money held in an 
account of a financial institution by filing an action in a court with jurisdiction 
under Title 78A, Judiciary and Judicial Administration, requesting an order of the 
court to prohibit a financial institution from providing the fee-assessing unit 
access to an account.
(c)
The state auditor shall remove a limitation on accessing funds under Subsection (8)(b) 
upon compliance with state laws and procedures in the budgeting, expenditures, and 
financial reporting of public funds.
(d)
If a local taxing or fee-assessing unit has not adopted a budget in compliance with 
state law, the state auditor:
(i)
shall provide notice to the taxing or fee-assessing unit of the unit's failure to 
comply;
(ii)
may prohibit the taxing or fee-assessing unit from accessing money held by the 
state; and
(iii)
may prohibit a taxing or fee-assessing unit from accessing money held in an 
account of a financial institution by:
(A)
contacting the taxing or fee-assessing unit's financial institution and 
requesting that the institution prohibit access to the account; or
(B)
filing an action in a court with jurisdiction under Title 78A, Judiciary and 
Judicial Administration, requesting an order of the court to prohibit a financial 
institution from providing the taxing or fee-assessing unit access to an account.
(e)
If the local taxing or fee-assessing unit adopts a budget in compliance with state law, 
the state auditor shall eliminate a limitation on accessing funds described in 
Subsection (8)(d).
(9)
The state auditor may not withhold funds under Subsection (7)(h) until a county has 
received formal written notice of noncompliance from the auditor and has been given 60 
days to make the specified corrections.
(10)
(a)
The state auditor may not withhold funds under Subsection (7)(i) until the state 
auditor receives a notice of non-registration, as that term is defined in Section 
67-1a-15
.
(b)
If the state auditor receives a notice of non-registration, the state auditor may 
prohibit the local government entity or limited purpose entity, as those terms are 
defined in Section 
67-1a-15
, from accessing:
(i)
money held by the state; and
(ii)
money held in an account of a financial institution by:
(A)
contacting the entity's financial institution and requesting that the institution 
prohibit access to the account; or
(B)
filing an action in a court with jurisdiction under Title 78A, Judiciary and 
Judicial Administration, requesting an order of the court to prohibit a financial 
institution from providing the entity access to an account.
(c)
The state auditor shall remove the prohibition on accessing funds described in 
Subsection (10)(b) if the state auditor received a notice of registration, as that term is 
defined in Section 
67-1a-15
, from the lieutenant governor.
(11)
Notwithstanding Subsection (7)(g), (7)(h), (7)(i), (8)(b), (8)(d), or (10)(b), the state 
auditor:
(a)
shall authorize a disbursement by a local government entity or limited purpose entity, 
as those terms are defined in Section 
67-1a-15
, or a state or local taxing or 
fee-assessing unit if the disbursement is necessary to:
(i)
avoid a major disruption in the operations of the local government entity, limited 
purpose entity, or state or local taxing or fee-assessing unit; or
(ii)
meet debt service obligations; and
(b)
may authorize a disbursement by a local government entity, limited purpose entity, 
or state or local taxing or fee-assessing unit as the state auditor determines is 
appropriate.
(12)
(a)
The state auditor may seek relief under the Utah Rules of Civil Procedure to take 
temporary custody of public funds if an action is necessary to protect public funds 
from being improperly diverted from their intended public purpose.
(b)
If the state auditor seeks relief under Subsection (12)(a):
(i)
the state auditor is not required to exhaust the procedures in Subsection (7) or (8); 
and
(ii)
the state treasurer may hold the public funds in accordance with Section 
67-4-1
 if 
a court orders the public funds to be protected from improper diversion from their 
public purpose.
(13)
The state auditor shall:
(a)
establish audit guidelines and procedures for audits of local mental health and 
substance abuse authorities and their contract providers, conducted pursuant to Title 
17, Chapter 43, Part 2, Local Substance Abuse Authorities, Title 17, Chapter 43, Part 
3, Local Mental Health Authorities, Title 26B, Chapter 5, Health Care - Substance 
Use and Mental Health, and Title 51, Chapter 2a, Accounting Reports from Political 
Subdivisions, Interlocal Organizations, and Other Local Entities Act; and
(b)
ensure that those guidelines and procedures provide assurances to the state that:
(i)
state and federal funds appropriated to local mental health authorities are used for 
mental health purposes;
(ii)
a private provider under an annual or otherwise ongoing contract to provide 
comprehensive mental health programs or services for a local mental health 
authority is in compliance with state and local contract requirements and state and 
federal law;
(iii)
state and federal funds appropriated to local substance abuse authorities are used 
for substance abuse programs and services; and
(iv)
a private provider under an annual or otherwise ongoing contract to provide 
comprehensive substance abuse programs or services for a local substance abuse 
authority is in compliance with state and local contract requirements, and state and 
federal law.
(14)
(a)
The state auditor may, in accordance with the auditor's responsibilities for 
political subdivisions of the state as provided in Title 51, Chapter 2a, Accounting 
Reports from Political Subdivisions, Interlocal Organizations, and Other Local 
Entities Act, initiate audits or investigations of any political subdivision that are 
necessary to determine honesty and integrity in fiscal affairs, accuracy and reliability 
of financial statements, effectiveness, and adequacy of financial controls and 
compliance with the law.
(b)
If the state auditor receives notice under Subsection 
11-41-104
(7) from the 
Governor's Office of Economic Opportunity on or after July 1, 2024, the state auditor 
may initiate an audit or investigation of the public entity subject to the notice to 
determine compliance with Section 
11-41-103
.
(15)
(a)
The state auditor may not audit work that the state auditor performed before 
becoming state auditor.
(b)
If the state auditor has previously been a responsible official in state government 
whose work has not yet been audited, the Legislature shall:
(i)
designate how that work shall be audited; and
(ii)
provide additional funding for those audits, if necessary.
(16)
The state auditor shall:
(a)
with the assistance, advice, and recommendations of an advisory committee 
appointed by the state auditor from among special district boards of trustees, officers, 
and employees and special service district boards, officers, and employees:
(i)
prepare a Uniform Accounting Manual for Special Districts that:
(A)
prescribes a uniform system of accounting and uniform budgeting and 
reporting procedures for special districts under Title 17B, Limited Purpose 
Local Government Entities - Special Districts, and special service districts 
under Title 17D, Chapter 1, Special Service District Act;
(B)
conforms with generally accepted accounting principles; and
(C)
prescribes reasonable exceptions and modifications for smaller districts to the 
uniform system of accounting, budgeting, and reporting;
(ii)
maintain the manual under this Subsection (16)(a) so that the manual continues to 
reflect generally accepted accounting principles;
(iii)
conduct a continuing review and modification of procedures in order to improve 
them;
(iv)
prepare and supply each district with suitable budget and reporting forms; and
(v)
(A)
prepare instructional materials, conduct training programs, and render other 
services considered necessary to assist special districts and special service 
districts in implementing the uniform accounting, budgeting, and reporting 
procedures; and
(B)
ensure that any training described in Subsection (16)(a)(v)(A) complies with 
Title 63G, Chapter 22, State Training and Certification Requirements; and
(b)
continually analyze and evaluate the accounting, budgeting, and reporting practices 
and experiences of specific special districts and special service districts selected by 
the state auditor and make the information available to all districts.
(17)
(a)
The following records in the custody or control of the state auditor are protected 
records under Title 63G, Chapter 2, Government Records Access and Management 
Act:
(i)
records that would disclose information relating to allegations of personal 
misconduct, gross mismanagement, or illegal activity of a past or present 
governmental employee if the information or allegation cannot be corroborated by 
the state auditor through other documents or evidence, and the records relating to 
the allegation are not relied upon by the state auditor in preparing a final audit 
report;
(ii)
records and audit workpapers to the extent the workpapers would disclose the 
identity of an individual who during the course of an audit, communicated the 
existence of any waste of public funds, property, or manpower, or a violation or 
suspected violation of a law, rule, or regulation adopted under the laws of this 
state, a political subdivision of the state, or any recognized entity of the United 
States, if the information was disclosed on the condition that the identity of the 
individual be protected;
(iii)
before an audit is completed and the final audit report is released, records or 
drafts circulated to an individual who is not an employee or head of a 
governmental entity for the individual's response or information;
(iv)
records that would disclose an outline or part of any audit survey plans or audit 
program; and
(v)
requests for audits, if disclosure would risk circumvention of an audit.
(b)
The provisions of Subsections (17)(a)(i), (ii), and (iii) do not prohibit the disclosure 
of records or information that relate to a violation of the law by a governmental entity 
or employee to a government prosecutor or peace officer.
(c)
The provisions of this Subsection (17) do not limit the authority otherwise given to 
the state auditor to classify a document as public, private, controlled, or protected 
under Title 63G, Chapter 2, Government Records Access and Management Act.
(d)
(i)
As used in this Subsection (17)(d), "record dispute" means a dispute between 
the state auditor and the subject of an audit performed by the state auditor as to 
whether the state auditor may release a record, as defined in Section 
63G-2-103
, 
to the public that the state auditor gained access to in the course of the state 
auditor's audit but which the subject of the audit claims is not subject to disclosure 
under Title 63G, Chapter 2, Government Records Access and Management Act.
(ii)
The state auditor may submit a record dispute to the State Records Committee, 
created in Section 
63G-2-501
, for a determination of whether the state auditor 
may, in conjunction with the state auditor's release of an audit report, release to 
the public the record that is the subject of the record dispute.
(iii)
The state auditor or the subject of the audit may seek judicial review of a State 
Records Committee determination under Subsection (17)(d)(ii), as provided in 
Section 
63G-2-404
.
(18)
If the state auditor conducts an audit of an entity that the state auditor has previously 
audited and finds that the entity has not implemented a recommendation made by the 
state auditor in a previous audit, the state auditor shall notify the Legislative 
Management Committee through the Legislative Management Committee's audit 
subcommittee that the entity has not implemented that recommendation.
(19)
The state auditor shall, with the advice and consent of the Senate, appoint the state 
privacy officer described in Section 
67-3-13
.
(20)
Except as provided in Subsection (21), the state auditor shall report, or ensure that 
another government entity reports, on the financial, operational, and performance 
metrics for the state system of higher education and the state system of public education, 
including metrics in relation to students, programs, and schools within those systems.
(21)
(a)
Notwithstanding Subsection (20), the state auditor shall conduct regular audits of:
(i)
the scholarship granting organization for the Carson Smith Opportunity 
Scholarship Program, created in Section 
53E-7-402
;
(ii)
the State Board of Education for the Carson Smith Scholarship Program, created 
in Section 
53F-4-302
; and
(iii)
the scholarship program manager for the Utah Fits All Scholarship Program, 
created in Section 
53F-6-402
, including an analysis of the cost effectiveness of the 
program, taking into consideration the amount of the scholarship and the amount 
of state and local funds dedicated on a per-student basis within the traditional 
public education system.
(b)
Nothing in this subsection limits or impairs the authority of the State Board of 
Education to administer the programs described in Subsection (21)(a).
(22)
The state auditor shall, based on the information posted by the Office of Legislative 
Research and General Counsel under Subsection 
36-12-12.1
(2), for each policy, track 
and post the following information on the state auditor's website:
(a)
the information posted under Subsections 
36-12-12.1
(2)(a) through (e);
(b)
an indication regarding whether the policy is timely adopted, adopted late, or not 
adopted;
(c)
an indication regarding whether the policy complies with the requirements 
established by law for the policy; and
(d)
a link to the policy.
(23)
(a)
A legislator may request that the state auditor conduct an inquiry to determine 
whether a government entity, government official, or government employee has 
complied with a legal obligation directly imposed, by statute, on the government 
entity, government official, or government employee.
(b)
The state auditor may, upon receiving a request under Subsection (23)(a), conduct 
the inquiry requested.
(c)
If the state auditor conducts the inquiry described in Subsection (23)(b), the state 
auditor shall post the results of the inquiry on the state auditor's website.
(d)
The state auditor may limit the inquiry described in this Subsection (23) to a simple 
determination, without conducting an audit, regarding whether the obligation was 
fulfilled.
(24)
The state auditor shall:
(a)
ensure compliance with Title 63G, Chapter 31, Distinctions on the Basis of Sex, in 
accordance with Section 
63G-31-401
; and
(b)
report to the Legislative Management Committee, upon request, regarding the state 
auditor's actions under this Subsection (24).
(25)
The state auditor shall report compliance with Sections 
67-27-107
, 
67-27-108
, and 
67-27-109
 by:
(a)
establishing a process to receive and audit each alleged violation; and
(b)
reporting to the Legislative Management Committee, upon request, regarding the 
state auditor's findings and recommendations under this Subsection (25).
(26)
The state auditor shall:
(a)
establish and oversee a digital materials regulator, in accordance with Section 
67-3-14
;
(b)
establish the compensation of the digital materials regulator and any other staff the 
state auditor deems necessary to fulfill the role of the digital materials regulator;
(c)
review the actions of the digital materials regulator; and
(d)
annually report regarding the digital materials regulator to the Education Interim 
Committee.
Section 5, Section 
67-3-14
 is enacted to read:
67-3-14. Digital materials regulator.
(1)
As used in this section:
(a)
"Instructional material" means the same as that term is defined in Section 
53G-10-103
.
(b)
"LEA" means the same as that term is defined in Section 
53E-1-102
.
(c)
"Regulator" means the digital materials regulator the state auditor establishes under 
this section.
(d)
"School setting" means the same as that term is defined in Section 
53G-10-102
.
(e)
"Sensitive material" means the same as that term is defined in Section 
53G-10-103
.
(f)
"State board" means the State Board of Education.
(g)
"Vendor" means an entity that provides instructional material to students in a school 
setting:
(i)
under a contract with the state board, an LEA, or the Utah Education and 
Telehealth Network; or
(ii)
through donating instructional material.
(2)
The state auditor shall establish a digital materials regulator to oversee compliance with 
state laws governing sensitive material in a school setting, including the marketing and 
sale of sensitive material to minors through educational resources.
(3)
The regulator shall:
(a)
investigate reports of, through digital instructional material in a school setting:
(i)
the marketing of sensitive material to minors; and
(ii)
the availability of sensitive material to minors in school databases or other 
educational resources;
(b)
conduct research;
(c)
(i)
impose a fine of $10,000 per day per item of sensitive material in accordance 
with Subsection (4); and
(ii)
deposit any fee the regulator collects under Subsection 
(3)(c)(i)
 into the Uniform 
School Fund;
(d)
make recommendations to LEA governing boards and the state board for the 
termination of contracts with vendors with three or more fines under Subsection 
(3)(c)
; 
and
(e)
refer alleged violations of Title 76, Chapter 10, Part 12, Pornographic and Harmful 
Materials and Performances, regarding sensitive material in a school setting to 
relevant law enforcement agencies.
(4)
A vendor is subject to a fine of $10,000 per day for each item of sensitive material that a 
vendor makes accessible to a minor through digital instructional material in a school 
setting.
(5)
A vendor shall submit an annual compliance letter, before August 1 of each year, 
affirming understanding of and compliance with Section 
53G-10-103
.
Section 6. 
Effective Date.
This bill takes effect on 
July 1, 2025
.
2-10-25 4:33 PM