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H.B. 174 Enrolled

             1     

EDUCATION VOUCHER AMENDMENTS

             2     
2007 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Bradley G. Last

             5     
Senate Sponsor: Peter C. Knudson

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies a program to award scholarships to students to attend a private
             10      school.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies criteria for qualifying for a scholarship;
             14          .    modifies criteria for private schools to enroll scholarship students;
             15          .    modifies provisions relating to the State Board of Education; and
             16          .    modifies the review by the legislative auditor general.
             17      Monies Appropriated in this Bill:
             18          This bill appropriates:
             19          .    as an ongoing appropriation subject to future budget constraints, $100,000 from the
             20      General Fund for fiscal year 2007-08 to the State Board of Education.
             21      Other Special Clauses:
             22          This bill coordinates with H.B. 148, Education Vouchers, by providing substantively
             23      superseding amendments.
             24      Utah Code Sections Affected:
             25      ENACTS:
             26          53A-1a-804, Utah Code Annotated 1953
             27          53A-1a-805, Utah Code Annotated 1953
             28          53A-1a-806, Utah Code Annotated 1953
             29          53A-1a-808, Utah Code Annotated 1953


             30          53A-1a-811, Utah Code Annotated 1953
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 53A-1a-804 is enacted to read:
             34          53A-1a-804. Scholarship program created -- Qualifications -- Application.
             35          (1) The Parent Choice in Education Program is created to award scholarships to
             36      students to attend a private school.
             37          (2) To qualify for a scholarship under this part:
             38          (a) the student's custodial parent or legal guardian shall reside within Utah;
             39          (b) the student shall be at least five years of age before September 2 of the year in
             40      which admission to a private school is sought and under 19 years of age on the last day of the
             41      school year as determined by the private school, or, if the individual has not graduated from
             42      high school, will be under 22 years of age on the last day of the school year as determined by
             43      the private school;
             44          (c) the student shall meet one or more of the following criteria:
             45          (i) the student was born after September 1, 2001;
             46          (ii) the student was enrolled as a full-time student in a Utah public school on January 1,
             47      2007;
             48          (iii) the individual was not a Utah resident on January 1, 2007; or
             49          (iv) the student's parents had an annual income less than or equal to 100% of the
             50      income eligibility guideline in the calendar year immediately preceding the school year for
             51      which a scholarship is sought; and
             52          (d) the student may not be a recipient of a scholarship awarded under Chapter 1a, Part
             53      7, Carson Smith Scholarships for Students with Special Needs Act.
             54          (3) (a) To receive a scholarship, the parent of a student shall submit an application for
             55      the scholarship to the board by the June 1 preceding the school year for which a scholarship is
             56      sought, except the deadline for submitting an application for the 2007-08 school year is July
             57      15, 2007. Along with the application, the student's parent shall submit documentation


             58      verifying income as required by board rule.
             59          (b) The board may waive the application deadline.
             60          (4) The board shall award scholarships by the July 1 preceding the school year for
             61      which a scholarship is sought, except the deadline for awarding scholarships for the 2007-08
             62      school year is August 15, 2007.
             63          (5) (a) The scholarship application form shall contain the following statement:
             64          "I acknowledge that:
             65          (1) A private school may not provide the same level of services that are provided in a
             66      public school.
             67          (2) The private school in which I have chosen to enroll my child has disclosed to me
             68      the teaching credentials of the school's teachers and the school's accreditation status.
             69          (3) I will assume full financial responsibility for the education of my scholarship
             70      student if I accept this scholarship.
             71          (4) Acceptance of this scholarship has the same effect as a parental refusal to consent
             72      to services pursuant to Section 614(a)(1) of the Individuals with Disabilities Education Act, 20
             73      U.S.C. Sec. 1400 et seq."
             74          (b) Upon acceptance of the scholarship, the parent assumes full financial responsibility
             75      for the education of the scholarship student for the period in which the student receives the
             76      scholarship, including costs associated with transportation.
             77          (c) Acceptance of a scholarship has the same effect as a parental refusal to consent to
             78      services pursuant to Section 614(a)(1) of the Individuals with Disabilities Education Act, 20
             79      U.S.C. Sec. 1400 et seq.
             80          (6) A student's parent, at any time, may remove the student from a private school and
             81      place the student in another eligible private school and retain the scholarship.
             82          Section 2. Section 53A-1a-805 is enacted to read:
             83          53A-1a-805. Eligible private schools.
             84          (1) To be eligible to enroll a scholarship student, a private school shall:
             85          (a) have a physical location in Utah where the scholarship students attend classes and


             86      have direct contact with the school's teachers;
             87          (b) contract with an independent certified public accountant to perform the agreed upon
             88      procedures specified in Subsection (2) and produce a report of the results which shall be
             89      submitted to the board at the times specified in Subsection (2);
             90          (c) comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d;
             91          (d) meet state and local health and safety laws and codes;
             92          (e) disclose to the parent of each prospective student, before the student is enrolled, the
             93      special education services that will be provided to the student, if any, including the cost of
             94      those services;
             95          (f) (i) annually assess the achievement of each student by administering:
             96          (A) a norm-referenced test scored by an independent party that provides a comparison
             97      of the student's academic performance to other students on a national basis; or
             98          (B) an alternative assessment of the student's achievement, if the student:
             99          (I) has a disability or limited English proficiency; and
             100          (II) would be exempt from taking a nationally norm-referenced achievement test if
             101      enrolled in a Utah public school;
             102          (ii) report the test results to the student's parents; and
             103          (iii) upon request, make test results available to other persons, in a manner that does
             104      not reveal the identity of any student;
             105          (g) employ or contract with teachers who have completed a criminal background check
             106      that complies with the requirements of Section 53A-3-410 and:
             107          (i) hold baccalaureate or higher degrees; or
             108          (ii) have special skills, knowledge, or expertise that qualifies them to provide
             109      instruction in the subjects taught;
             110          (h) provide to parents the teaching credentials of the school's teachers; and
             111          (i) provide, upon request to any person, a statement indicating which, if any,
             112      organizations have accredited the private school.
             113          (2) (a) The agreed upon procedures to be performed pursuant to Subsection (1)(b) are


             114      as follows:
             115          (i) (A) determine that working capital is at least 80% of average quarterly expenditures
             116      by taking total expenditures for a year and dividing it by four and then dividing average
             117      quarterly expenditures into working capital; and
             118          (B) for a school in the first year of operations, use the estimated budget to estimate
             119      average quarterly expenditures;
             120          (ii) (A) determine that scholarship payments are accounted for separately and
             121      reconciled to student records; and
             122          (B) for the first year of operations, determine that procedures are in place for this
             123      accounting; and
             124          (iii) (A) determine that expenditure of scholarship funds have been made for education
             125      expenses and is consistent with other tuition expenditures; and
             126          (B) for the first year of operations, determine that procedures are in place for this
             127      accounting.
             128          (b) (i) The independent certified public accountant's report on the agreed upon
             129      procedures specified in Subsection (2)(a) shall be submitted to the board when the private
             130      school applies to accept scholarship students and every four years thereafter, except as
             131      provided in Subsection (2)(b)(ii).
             132          (ii) The board may, by rule, delay the date when the independent certified public
             133      accountant's report shall be submitted for private schools applying to accept scholarship
             134      students in the 2007-08 school year.
             135          (3) The following are not eligible to enroll scholarship students:
             136          (a) a school with an enrollment of fewer than 40 students;
             137          (b) a school that operates in a residence;
             138          (c) a school that encourages illegal conduct; or
             139          (d) a residential treatment facility licensed by the state.
             140          (4) (a) Except as provided in Subsection (4)(b), a private school intending to enroll
             141      scholarship students shall submit an application to the board by April 1 of the school year


             142      preceding the school year in which it intends to enroll scholarship students.
             143          (b) A private school intending to enroll scholarship students in the 2007-08 school year
             144      shall submit an application by June 15, 2007.
             145          (5) The board shall:
             146          (a) approve a private school's application to enroll scholarship students if the private
             147      school meets the eligibility requirements of this section; and
             148          (b) make available to the public a list of the eligible private schools:
             149          (i) for the 2008-09 school year and each school year thereafter, by the April 30
             150      preceding the school year; and
             151          (ii) for the 2007-08 school year, by July 1, 2007.
             152          Section 3. Section 53A-1a-806 is enacted to read:
             153          53A-1a-806. Scholarship payments.
             154          (1) (a) Scholarships shall be awarded by the board subject to the availability of money
             155      appropriated by the Legislature for that purpose.
             156          (b) The Legislature shall annually appropriate money to the board from the General
             157      Fund to make scholarship payments for all students projected to apply for scholarships.
             158          (c) (i) If monies are not available to pay for all scholarships requested, the scholarships
             159      shall be allocated on a random basis except that preference shall be given to students who
             160      received scholarships in the previous year.
             161          (ii) If monies are insufficient in a school year to pay for all the continuing scholarships:
             162          (A) new scholarships may not be awarded during that school year;
             163          (B) the monies available for scholarships shall be prorated among the eligible students
             164      who received scholarships in the previous year; and
             165          (C) the board shall request a supplemental appropriation from the Legislature to make
             166      full scholarship payments as provided in Subsection (4) or (5).
             167          (2) (a) Scholarships shall be awarded based upon the income of a scholarship student's
             168      parents in the calendar year immediately preceding the school year for which a scholarship is
             169      sought.


             170          (b) (i) The board shall make rules specifying how the income of a prospective
             171      scholarship student's parents shall be determined and verified.
             172          (ii) The rules shall provide that the scholarship shall be based upon parental income as
             173      follows:
             174          (A) if the parents are married, the income of both parents;
             175          (B) if a parent is widowed, the income of the widowed parent;
             176          (C) if a parent is widowed and has remarried, the income of the parent and stepparent;
             177          (D) if the parents are divorced, the income of the parent with whom the scholarship
             178      student resided for the greatest amount of time during the past 12 months;
             179          (E) if the parents are divorced and the scholarship student resided with each parent an
             180      equal amount of time, the income of the parent who provided more financial support during the
             181      past 12 months;
             182          (F) if the divorced parent with whom the scholarship student resided for the greatest
             183      amount of time or who provided the greatest financial support has remarried, the income of the
             184      parent and stepparent; and
             185          (G) if the scholarship student resides with a guardian, the income of the guardian,
             186      unless the guardian's income is exempt by board rule.
             187          (iii) The rules shall provide that:
             188          (A) if a parent filed federal or state income tax forms, income shall be based upon
             189      adjusted gross income as listed on the income tax forms;
             190          (B) if a parent was exempt from filing federal and state income tax forms, income shall
             191      be based on income earned from work; and
             192          (C) a parent shall submit documentation verifying income.
             193          (3) (a) The board shall compare the income of a scholarship student's parents to the
             194      maximum annual incomes listed in the income eligibility guideline as defined in Section
             195      53A-1a-803 to set the scholarship amount.
             196          (b) In determining scholarship amounts, the board shall use:
             197          (i) the income eligibility guideline in effect for the school year immediately preceding


             198      the school year for which a scholarship is sought; and
             199          (ii) the scholarship student's household size as the applicable household size for the
             200      purpose of determining maximum annual income under the income eligibility guideline.
             201          (4) Full-year scholarships shall be awarded in the amounts shown in the following
             202      table, or for the amount of tuition for a full year, whichever is less.
             203      If the annual income of a scholarship
             204      student's parents is:                    The full-year scholarship amount is:
             205      Less than or equal to 100% of the
             206          income eligibility guideline                    $3,000
             207      Greater than 100% but less than or equal
             208           to 125% of the income eligibility guideline            $2,750
             209      Greater than 125% but less than or equal to
             210          150% of the income eligibility guideline            $2,500
             211      Greater than 150% but less than or equal to
             212          175% of the income eligibility guideline            $2,250
             213      Greater than 175% but less than or equal to
             214          200% of the income eligibility guideline            $2,000
             215      Greater than 200% but less than or equal to
             216          225% of the income eligibility guideline            $1,750
             217      Greater than 225% but less than or equal to
             218          250% of the income eligibility guideline            $1,000
             219      Greater than 250% of the income eligibility guideline        $500
             220          (5) The full-year scholarship amounts shown in the table in Subsection (4) apply to
             221      scholarships for all grades except kindergarten. The full-year scholarship amount for
             222      kindergarten shall be .55 times the amounts shown in the table in Subsection (4).
             223          (6) The board shall annually increase the full-year scholarship amounts shown in the
             224      table in Subsection (4) by the same percentage annual increase in the value of the weighted
             225      pupil unit established in Section 53A-17a-103 .


             226          (7) (a) Except as provided in Subsection (7)(b), upon review and receipt of
             227      documentation that verifies a student's admission to, or continuing enrollment and attendance
             228      at, a private school, the board shall make scholarship payments in four equal amounts no later
             229      than September 1, November 1, February 1, and April 15 of each school year in which a
             230      scholarship is in force.
             231          (b) In accordance with board rule, the board shall make a scholarship payment before
             232      the first quarterly payment of the school year, if a private school requires partial payment of
             233      tuition before the start of the school year to reserve space for a student admitted to the school.
             234          (8) A parent of a scholarship student and the student's private school shall notify the
             235      board if the student does not have continuing enrollment and attendance at the private school.
             236          (9) Before scholarship payments are made, the board shall cross-check enrollment lists
             237      of scholarship students, school districts, and youth in custody to ensure that scholarship
             238      payments are not erroneously made.
             239          (10) (a) Scholarship payments shall be made by the board by individual warrant made
             240      payable to the student's parent and mailed by the board to the private school. The parent shall
             241      restrictively endorse the warrant to the private school for deposit into the account of the private
             242      school.
             243          (b) A person, on behalf of a private school, may not accept a power of attorney from a
             244      parent to sign a warrant referred to in Subsection (10)(a), and a parent of a scholarship student
             245      may not give a power of attorney designating a person, on behalf of a private school, as the
             246      parent's attorney in fact.
             247          Section 4. Section 53A-1a-808 is enacted to read:
             248          53A-1a-808. Board to make rules.
             249          (1) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             250      board shall make rules consistent with this part:
             251          (a) establishing the application process for the scholarship program, including
             252      procedures to allow a parent to apply for a scholarship online;
             253          (b) establishing how the income of a scholarship student's parents shall be determined


             254      and verified; and
             255          (c) implementing Section 53A-1a-807 .
             256          (2) By May 15, 2007, the board shall adopt rules establishing:
             257          (a) the application process for private schools and scholarship students; and
             258          (b) how the income of a scholarship student's parents shall be determined.
             259          Section 5. Section 53A-1a-811 is enacted to read:
             260          53A-1a-811. Review by legislative auditor general.
             261          The legislative auditor general shall conduct a review and issue a report on the Parent
             262      Choice in Education Program after the conclusion of the 2011-12 school year.
             263          Section 6. Appropriation.
             264          As an ongoing appropriation subject to future budget constraints, there is appropriated
             265      from the General Fund for fiscal year 2007-08, $100,000 to the State Board of Education for
             266      the administration of the Parent Choice in Education Act created in Title 53A, Chapter 1a, Part
             267      8.
             268          Section 7. Coordinating H.B. 174 with H.B. 148 -- Substantively superseding
             269      amendments.
             270          If this H.B. 174 and H.B. 148, Education Vouchers, both pass, it is the intent of the
             271      Legislature that the amendments to the sections in this bill supersede the amendments to the
             272      same numbered sections in H.B. 148 when the Office of Legislative Research and General
             273      Counsel prepares the Utah Code database for publication.


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