! The Capitol Complex is closed to the public due to COVID-19. All meetings will be held virtually online. View procedures and guidelines for remote public comment

Download Zipped Introduced WordPerfect SB0151.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 151

             1     

STUDENT OPPORTUNITY SCHOLARSHIPS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Howard A. Stephenson

             5     
House Sponsor: Gregory H. Hughes

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill provides for nonrefundable tax credits for donations made to a scholarship
             10      organization to be used for scholarships for a qualifying student to attend a private
             11      school.
             12      Highlighted Provisions:
             13          This bill:
             14          .    creates the Student Opportunity Scholarship Act to award scholarships to students
             15      who meet any of the following qualifications to attend a private school:
             16              .    the student's parents or legal guardians have an annual income that is less than
             17      or equal to 200% of the income eligibility guideline for reduced price meals;
             18              .    the student, while in grades 1 through 2, scored below the expected reading
             19      level for the student's grade on a reading assessment administered at the end of
             20      the school year;
             21              .    the student, while in grades 3 through 11, scored below the proficient level on a
             22      statewide summative assessment of language arts, mathematics, science, or
             23      writing achievement;
             24              .    the student's school of residence has received a grade of "F" on the school
             25      grading system for two consecutive school years; or
             26              .    the student received a scholarship for the previous school year;
             27          .    requires a scholarship organization to:


             28              .    allow a student to attend any eligible private school, and allow a parent to
             29      transfer a scholarship during the school year to any other eligible private school;
             30              .    expend at least 90% of revenue received for scholarships and no more than 10%
             31      of revenue received for administration of the scholarship program;
             32              .    return revenue not spent for scholarships within a certain period to the state
             33      treasurer for deposit to the Education Fund;
             34              .    obtain an annual financial and compliance audit by an independent certified
             35      public accountant; and
             36              .    submit a report to the State Tax Commission annually;
             37          .    establishes the maximum amount of a scholarship;
             38          .    establishes a maximum amount of tax credits that may be awarded annually under
             39      Title 59, Chapter 7, Corporate Franchise and Income Taxes, for donations made to a
             40      scholarship organization and provides procedures for the allocation of the maximum
             41      amount;
             42          .    allows the State Tax Commission to make certain rules;
             43          .    requires a private school that enrolls a scholarship student to:
             44              .    contract with an independent certified public accountant to examine the
             45      financial condition of the school and the expenditure of scholarship funds;
             46              .    annually assess the achievement of each student by administering a
             47      norm-referenced achievement test and making test results available to the
             48      student's parent and aggregated test results to others upon request; and
             49              .    conduct criminal background checks on school personnel;
             50          .    provides for a nonrefundable tax credit under Title 59, Chapter 7, Corporate
             51      Franchise and Income Taxes, for a donation to a scholarship organization;
             52          .    provides for a nonrefundable tax credit under the Individual Income Tax Act up to a
             53      certain amount for a donation to a scholarship organization; and
             54          .    makes technical and conforming amendments.
             55      Money Appropriated in this Bill:
             56          None
             57      Other Special Clauses:
             58          This bill provides retrospective operation for a taxable year beginning on or after


             59      January 1, 2012.
             60      Utah Code Sections Affected:
             61      AMENDS:
             62          53A-3-410, as last amended by Laws of Utah 2010, Chapter 362
             63          59-10-1002.2, as last amended by Laws of Utah 2011, Chapter 302
             64      ENACTS:
             65          53A-1a-1101, Utah Code Annotated 1953
             66          53A-1a-1102, Utah Code Annotated 1953
             67          53A-1a-1103, Utah Code Annotated 1953
             68          53A-1a-1104, Utah Code Annotated 1953
             69          53A-1a-1105, Utah Code Annotated 1953
             70          53A-1a-1106, Utah Code Annotated 1953
             71          53A-1a-1107, Utah Code Annotated 1953
             72          53A-1a-1108, Utah Code Annotated 1953
             73          53A-1a-1109, Utah Code Annotated 1953
             74          53A-1a-1110, Utah Code Annotated 1953
             75          53A-1a-1111, Utah Code Annotated 1953
             76          53A-1a-1112, Utah Code Annotated 1953
             77          53A-1a-1113, Utah Code Annotated 1953
             78          53A-1a-1114, Utah Code Annotated 1953
             79          53A-1a-1115, Utah Code Annotated 1953
             80          59-7-614.7, Utah Code Annotated 1953
             81          59-10-1029, Utah Code Annotated 1953
             82     
             83      Be it enacted by the Legislature of the state of Utah:
             84          Section 1. Section 53A-1a-1101 is enacted to read:
             85     
Part 11. Student Opportunity Scholarship Act

             86          53A-1a-1101. Title.
             87          This part is known as the "Student Opportunity Scholarship Act."
             88          Section 2. Section 53A-1a-1102 is enacted to read:
             89          53A-1a-1102. Definitions.


             90          As used in this part:
             91          (1) "Board" means the State Board of Education.
             92          (2) "Committed donation" means an eligible donation a listed donor commits to make
             93      to a scholarship organization as stated on an application for a tax credit allocation certificate
             94      the scholarship organization files with the State Tax Commission.
             95          (3) "Eligible donation" means a monetary donation:
             96          (a) a person makes to a scholarship organization on or before the date prescribed by
             97      Subsection 53A-1a-1107 (4);
             98          (b) that the person does not designate for the benefit of a particular student;
             99          (c) with respect to which the person does not claim an exemption or tax credit or make
             100      a deduction or subtraction on the person's state or federal income tax return for the taxable
             101      year, other than a tax credit under Section 59-7-614.7 ; and
             102          (d) to the extent the person does not receive property or a service in return for the
             103      donation.
             104          (4) "Eligible private school" means a private school that meets the eligibility
             105      requirements of Section 53A-1a-1113 .
             106          (5) "Listed donor" means a person who:
             107          (a) commits to make an eligible donation to a scholarship organization; and
             108          (b) the scholarship organization lists as a donor who commits to make an eligible
             109      donation on an application for a tax credit allocation certificate the scholarship organization
             110      files with the State Tax Commission.
             111          (6) "Qualifying donor" means a person:
             112          (a) who makes an eligible donation to a scholarship organization; and
             113          (b) to whom the scholarship organization issues a tax credit donor certificate in
             114      accordance with this part.
             115          (7) "Revenue" means monetary donations a scholarship organization receives and
             116      earnings on the monetary donations.
             117          (8) "Scholarship organization" means a charitable organization that:
             118          (a) is organized and managed under Title 16, Chapter 6a, Utah Revised Nonprofit
             119      Corporation Act;
             120          (b) is exempt from taxation under Section 501(3)(c), Internal Revenue Code; and


             121          (c) awards scholarships to students who meet the qualifications of Section
             122      53A-1a-1103 to attend eligible private schools.
             123          (9) "Scholarship student" means a student who receives a scholarship from a
             124      scholarship organization.
             125          (10) "School of residence" means the school to which a student is assigned to attend
             126      based on the student's place of residence.
             127          (11) "State fiscal year" means a fiscal year beginning July 1 and ending on June 30.
             128          (12) "Tax credit allocation certificate" means a certificate that:
             129          (a) the State Tax Commission issues to a scholarship organization; and
             130          (b) lists the total amount of tax credit the State Tax Commission allocates to the
             131      scholarship organization for distribution only to one or more qualifying donors.
             132          (13) "Tax credit donor certificate" means a certificate that:
             133          (a) a scholarship organization issues to a qualifying donor; and
             134          (b) states the information required by Subsection 53A-1a-1107 (4).
             135          (14) "Value of the weighted pupil unit" means the amount established each year in
             136      statute that is multiplied by the number of weighted pupil units to yield the funding levels for
             137      the kindergarten and grade 1 - 12 programs within the basic state-supported school program.
             138          Section 3. Section 53A-1a-1103 is enacted to read:
             139          53A-1a-1103. Scholarship program created -- Qualifications.
             140          (1) The Student Opportunity Scholarship Act is created to award scholarships to
             141      students to attend a private school.
             142          (2) To qualify for a scholarship:
             143          (a) the student's parent or legal guardian shall reside within Utah;
             144          (b) the student shall be at least five years of age before September 2 of the year in
             145      which admission to a private school is sought and under 19 years of age on the last day of the
             146      school year as determined by the private school;
             147          (c) the student shall meet one or more of the following criteria:
             148          (i) the student's parents or legal guardians had an annual income in the calendar year
             149      prior to the school year for which a scholarship is sought that is less than or equal to 200% of
             150      the income eligibility guideline to qualify for reduced price meals for the applicable household
             151      size, as published by the United States Department of Agriculture in the Federal Registrar;


             152          (ii) the student, while in grades 1 through 2, scored below the expected reading level
             153      for the student's grade on a reading assessment administered at the end of the school year
             154      immediately preceding the school year in which a scholarship is sought;
             155          (iii) the student, while in grades 3 through 11, scored below the proficient level on a
             156      statewide summative assessment of language arts, mathematics, science, or writing
             157      achievement administered in the school year immediately preceding the school year for which a
             158      scholarship is sought;
             159          (iv) the student's school of residence has received a grade of "F" on the school grading
             160      system established under Chapter 1, Part 11, School Grading Act, for the two consecutive
             161      school years immediately preceding the school year for which a scholarship is sought; or
             162          (v) the student received a scholarship under this part for the previous school year; and
             163          (d) the student may not be a recipient of a scholarship awarded under Part 7, Carson
             164      Smith Scholarships for Students with Special Needs Act.
             165          Section 4. Section 53A-1a-1104 is enacted to read:
             166          53A-1a-1104. Scholarship organization -- Requirements for the award of
             167      scholarships.
             168          (1) To receive a scholarship, the parent of a student shall submit an application to a
             169      scholarship organization.
             170          (2) A scholarship organization shall award scholarships to students who meet the
             171      qualifications of Section 53A-1a-1103 to pay for a student's tuition and fees to attend an
             172      eligible private school.
             173          (3) (a) Except as provided in Subsection (3)(b), a scholarship organization shall award
             174      scholarships on a first come, first served basis.
             175          (b) In awarding scholarships, a scholarship organization shall give priority to a student
             176      who received a scholarship in the previous school year.
             177          (4) A scholarship organization shall allow:
             178          (a) a student to attend any eligible private school; and
             179          (b) a parent to transfer a scholarship during a school year to any other eligible private
             180      school.
             181          (5) A scholarship organization may not:
             182          (a) restrict or reserve scholarships for use at a particular private school; or


             183          (b) provide a scholarship for a student to attend a private school that has paid staff or
             184      board members, or relatives of paid staff or board members, in common with the scholarship
             185      organization.
             186          (6) A scholarship organization must, before awarding a scholarship for a school year,
             187      document the scholarship student's eligibility for that school year.
             188          (7) (a) A scholarship organization shall expend at least 90% of the revenue the
             189      scholarship organization receives in a state fiscal year for scholarships for a student to attend an
             190      eligible private school.
             191          (b) A scholarship organization may expend up to 10% of the total revenue the
             192      scholarship organization receives in a state fiscal year to administer the scholarship granting
             193      program.
             194          (c) (i) A scholarship organization shall expend for scholarships an amount equal to or
             195      greater than 75% of the net revenue remaining after administrative expenses during the state
             196      fiscal year in which the revenue is collected.
             197          (ii) No more than 25% of the net revenue may be carried forward to the following state
             198      fiscal year.
             199          (iii) Any amounts carried forward shall be expended for scholarships in the following
             200      state fiscal year.
             201          (iv) Net revenue remaining on June 30 of each year that is in excess of the 25% that
             202      may be carried forward, as described in Subsection (7)(c)(ii), shall be returned to the state
             203      treasurer for deposit in the Education Fund.
             204          (8) A scholarship organization shall maintain separate accounts for scholarship funds
             205      and operating funds.
             206          Section 5. Section 53A-1a-1105 is enacted to read:
             207          53A-1a-1105. Scholarship payments.
             208          (1) (a) For the 2012-13 school year, the maximum amount of a scholarship that a
             209      scholarship organization may award to a student for a school year is the lesser of:
             210          (i) $5,500; or
             211          (ii) the amount of tuition and fees that are charged for the student's enrollment in the
             212      private school.
             213          (b) Beginning with the 2013-14 school year, the amount provided in Subsection (1)(a)


             214      shall be adjusted each year by the same percentage as the percentage change in the value of the
             215      weighted pupil unit.
             216          (c) A scholarship organization may set the full scholarship amount at different levels
             217      for the different grade levels at a private school provided the maximum scholarship amount for
             218      a grade level complies with the requirements of Subsections (1)(a) and (1)(b).
             219          (2) (a) A scholarship organization may award a full scholarship as provided in
             220      Subsection (1) or a partial scholarship.
             221          (b) A student may receive a partial scholarship from two or more scholarship
             222      organizations provided the total amount awarded does not exceed the maximum scholarship
             223      amount established in Subsection (1).
             224          (3) Upon review and documentation that verifies a student's admission to, or
             225      continuing enrollment and attendance at, a private school, a scholarship organization shall
             226      make scholarship payments at least quarterly of each school year in which a scholarship is in
             227      force.
             228          (4) The parent of a student who is awarded a scholarship shall notify the scholarship
             229      organization that awarded the scholarship if the student does not have continuing enrollment
             230      and attendance at a private school.
             231          (5) (a) A scholarship organization shall distribute scholarship payments as checks
             232      made out to a student's parent or guardian and mailed to the private school where the student is
             233      enrolled.
             234          (b) The parent or guardian must endorse the check before it can be deposited.
             235          Section 6. Section 53A-1a-1106 is enacted to read:
             236          53A-1a-1106. Allocation of tax credit to scholarship organization.
             237          (1) (a) Subject to the other provisions of this part, the State Tax Commission shall
             238      allocate to one or more scholarship organizations amounts designated under this Subsection (1)
             239      to fund the tax credit authorized under Section 59-7-614.7 .
             240          (b) Except as provided in Subsection 53A-1a-1109 (2), for the taxable year beginning
             241      on or after January 1, 2012, but beginning on or before December 31, 2012, the State Tax
             242      Commission may allocate an amount not to exceed $5,000,000 in tax credit under this section.
             243          (c) For each taxable year beginning on or after January 1, 2013, the amount of tax
             244      credit the State Tax Commission may allocate under this section shall be increased by 20%


             245      over the previous taxable year.
             246          (2) In accordance with any rules the State Tax Commission makes as authorized under
             247      this part, each year a scholarship organization may apply to the State Tax Commission for an
             248      allocation of tax credit under this section by filing an application with the State Tax
             249      Commission:
             250          (a) on or before June 1; and
             251          (b) on a form provided by the State Tax Commission.
             252          (3) (a) The application shall include:
             253          (i) the name, address, and taxpayer identification number of the one or more listed
             254      donors to whom the scholarship organization seeks to provide a tax credit donor certificate;
             255          (ii) the amount of the committed donation for each listed donor; and
             256          (iii) a signed statement that the scholarship organization may provide a tax credit donor
             257      certificate only to a qualifying donor.
             258          (b) The application may include other information the State Tax Commission requires
             259      by rule.
             260          (4) The State Tax Commission shall determine on or before the July 1 immediately
             261      following the June 1 described in Subsection (2)(a) whether a scholarship organization's
             262      application to the State Tax Commission meets the requirements of Subsection (3).
             263          (5) Subject to Subsection (6), the State Tax Commission shall allocate the amount of
             264      tax credit authorized under this section to one or more scholarship organizations:
             265          (a) that meet the requirements of Subsections (2) and (3);
             266          (b) in the order of the date each scholarship organization files the application required
             267      by Subsection (2) with the State Tax Commission until the amount designated in Subsection
             268      (1) to fund the tax credit authorized under Section 59-7-614.7 is expended;
             269          (c) on or before the July 1 immediately following the June 1 described in Subsection
             270      (2)(a);
             271          (d) in an amount that does not exceed the total amount of committed donations for a
             272      scholarship organization; and
             273          (e) in a total amount that does not exceed the amount designated in Subsection (1) to
             274      fund the tax credit authorized under Section 59-7-614.7 .
             275          (6) The State Tax Commission shall, on or before the July 1 immediately following the


             276      June 1 described in Subsection (2)(a), issue a tax credit allocation certificate:
             277          (a) to each scholarship organization to which the State Tax Commission allocates tax
             278      credit under this section; and
             279          (b) that states the total amount of tax credit allocated to the scholarship organization.
             280          Section 7. Section 53A-1a-1107 is enacted to read:
             281          53A-1a-1107. Determination of maximum tax credit -- Issuance of tax credit
             282      donor certificates.
             283          (1) Within a 10-day period after the date the State Tax Commission issues a tax credit
             284      allocation certificate under Subsection 53A-1a-1106 (6) to a scholarship organization, the
             285      scholarship organization shall calculate the eligible donation each listed donor is required to
             286      make to receive a tax credit donor certificate in accordance with Subsection (2).
             287          (2) (a) If the total amount of tax credit listed on a scholarship organization's tax credit
             288      allocation certificate is equal to the total amount of the committed donations, the eligible
             289      donation a listed donor is required to make to receive a tax credit donor certificate is equal to
             290      the listed donor's committed donation.
             291          (b) If the total amount of tax credit listed on a scholarship organization's tax credit
             292      allocation certificate is less than the total amount of the committed donations, the scholarship
             293      organization shall determine the eligible donation a listed donor is required to make to receive
             294      a tax credit donor certificate:
             295          (i) in the order that each listed donor is listed on the scholarship organization's
             296      application for a tax credit allocation certificate; and
             297          (ii) until the amount of tax credit listed on the tax credit allocation certificate is fully
             298      distributed to listed donors.
             299          (3) (a) Within a five-day period after the date a scholarship organization makes the
             300      calculation required by Subsection (1), the scholarship organization shall provide written notice
             301      to a listed donor who the scholarship organization determines may receive a tax credit donor
             302      certificate.
             303          (b) The written notice described in Subsection (3)(a) shall state:
             304          (i) the eligible donation the listed donor is required to make to receive a tax credit
             305      donor certificate; and
             306          (ii) that the eligible donation shall be made on or before August 1.


             307          (4) If a listed donor who receives the written notice described in Subsection (3) makes
             308      an eligible donation on or before August 1, a scholarship organization shall provide the listed
             309      donor with a tax credit donor certificate:
             310          (a) on a form provided by the commission; and
             311          (b) that lists:
             312          (i) the name, address, and taxpayer identification number of the listed donor;
             313          (ii) the date the certificate is issued; and
             314          (iii) the maximum tax credit that the listed donor may claim as calculated under
             315      Subsection (5).
             316          (5) For purposes of Subsection (4)(b)(iii), the maximum tax credit is the lesser of:
             317          (a) the eligible donation the listed donor is required to make as stated on the written
             318      notice described in Subsection (3); or
             319          (b) the eligible donation the listed donor actually makes to the scholarship
             320      organization.
             321          (6) A scholarship organization shall each year, on or before October 1, provide to the
             322      State Tax Commission a copy of each tax credit donor certificate the scholarship organization
             323      provides to a qualifying donor.
             324          Section 8. Section 53A-1a-1108 is enacted to read:
             325          53A-1a-1108. Qualified donor requirement to hold tax credit donor certificate.
             326          A qualifying donor may not claim or pass through a tax credit under Section 59-7-614.7
             327      unless the qualifying donor has received a tax credit donor certificate from a scholarship
             328      organization.
             329          Section 9. Section 53A-1a-1109 is enacted to read:
             330          53A-1a-1109. State Tax Commission calculation of maximum tax credit on tax
             331      credit donor certificates -- Issuance of remaining tax credit.
             332          (1) The State Tax Commission shall each year, on or before December 1, calculate the
             333      total amount of maximum tax credit listed on tax credit donor certificates that scholarship
             334      organizations provide to the State Tax Commission during the calendar year in accordance with
             335      Subsection 53A-1a-1107 (6).
             336          (2) If the total amount of maximum tax credit the State Tax Commission calculates
             337      under Subsection (1) is less than the amount of tax credit the State Tax Commission may


             338      allocate for the taxable year under Section 53A-1a-1106 , the State Tax Commission may
             339      allocate the remaining amount of tax credit in a taxable year after the taxable year for which
             340      there is a remaining amount of tax credit.
             341          Section 10. Section 53A-1a-1110 is enacted to read:
             342          53A-1a-1110. State Tax Commission to make rules.
             343          In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             344      State Tax Commission may make rules consistent with this part:
             345          (1) prescribing information that a scholarship organization shall include with an
             346      application for a tax credit allocation certificate under Section 53A-1a-1106 ; and
             347          (2) establishing procedures that a scholarship organization shall employ to verify that a
             348      student:
             349          (a) meets the qualifications for a scholarship provided in Section 53A-1a-1103 ; and
             350          (b) has continuing enrollment and attendance at a private school before the scholarship
             351      organization issues a scholarship payment.
             352          Section 11. Section 53A-1a-1111 is enacted to read:
             353          53A-1a-1111. Enforcement of scholarship organization requirements.
             354          (1) A scholarship organization shall provide to the State Tax Commission an annual
             355      audit conducted by an independent certified public accountant that includes:
             356          (a) a financial audit of its accounts and records; and
             357          (b) a compliance audit of the requirements under this part.
             358          (2) In accordance with Title 63G, Chapter 4, Administrative Procedures Act, the
             359      commission may enjoin a scholarship organization that fails to comply with this part from
             360      accepting donations from taxpayers seeking to claim a tax credit under Section 59-7-614.7 or
             361      59-10-1029 for a period of up to one year.
             362          Section 12. Section 53A-1a-1112 is enacted to read:
             363          53A-1a-1112. Scholarship organization report.
             364          By November 1 each year, a scholarship organization shall submit to the State Tax
             365      Commission a report prepared by an independent certified public accountant containing the
             366      following information:
             367          (1) the name and address of the scholarship organization;
             368          (2) the total number and total dollar amount of contributions received during the prior


             369      state fiscal year;
             370          (3) the total number and total dollar amount of scholarships awarded during the prior
             371      state fiscal year;
             372          (4) the total number and total dollar amount of scholarships awarded during the prior
             373      state fiscal year to students whose parent or guardians had an annual income less than or equal
             374      to 100% of the income eligibility guideline allowed to qualify for reduced price meals; and
             375          (5) the percentage of first time recipients of scholarships who were continuously
             376      enrolled in a public school during the prior school year.
             377          Section 13. Section 53A-1a-1113 is enacted to read:
             378          53A-1a-1113. Private school requirements.
             379          (1) To be eligible to enroll a scholarship student, a private school shall:
             380          (a) (i) obtain an audit and report from a licensed independent certified public
             381      accountant that conforms with the following requirements and submit the audit report to the
             382      board when the private school applies to accept scholarship students:
             383          (A) the audit shall be performed in accordance with generally accepted auditing
             384      standards;
             385          (B) the financial statements shall be presented in accordance with generally accepted
             386      accounting principles; and
             387          (C) the audited financial statements shall be as of a period within the last 12 months; or
             388          (ii) contract with a licensed independent certified public accountant to perform an
             389      agreed upon procedure as follows and submit the agreed upon procedure to the board when the
             390      private school applies to accept scholarship students:
             391          (A) the agreed upon procedure shall be to determine that the private school has
             392      adequate working capital to maintain operations for the first full year; and
             393          (B) working capital shall be calculated by subtracting current liabilities from current
             394      assets;
             395          (b) comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d;
             396          (c) meet state and local health and safety laws and codes;
             397          (d) disclose to the parent of each prospective student, before the student is enrolled, the
             398      special education services that will be provided to the student, if any, including the cost of
             399      those services;


             400          (e) (i) annually assess the achievement of each student by administering a
             401      norm-referenced test scored by an independent party that provides a comparison of the student's
             402      academic performance to other students on a national basis;
             403          (ii) report the test results to the student's parents; and
             404          (iii) upon request, make aggregated test results available to other persons;
             405          (f) employ or contract with teachers who:
             406          (i) hold baccalaureate or higher degrees; or
             407          (ii) have special skills, knowledge, or expertise that qualifies them to provide
             408      instruction in the subjects taught;
             409          (g) provide to parents the teaching credentials of the school's teachers;
             410          (h) provide, upon request to any person, a statement indicating which, if any,
             411      organizations have accredited the private school; and
             412          (i) comply with requirements to conduct criminal background checks on school
             413      personnel as provided in Section 53A-3-410 .
             414          (2) The following are not eligible to enroll scholarship students:
             415          (a) a school with an enrollment of fewer than 40 students;
             416          (b) a school that operates in a residence;
             417          (c) a school that encourages illegal conduct; or
             418          (d) a residential treatment facility licensed by the state.
             419          (3) (a) Except as provided in Subsection (3)(b), a private school intending to enroll
             420      scholarship students shall submit an application to the board by April 1 of the school year
             421      preceding the school year in which it intends to enroll scholarship students.
             422          (b) A private school intending to enroll scholarship students in the 2012-13 school year
             423      shall submit an application by June 15, 2012.
             424          (4) The board shall:
             425          (a) approve a private school's application to enroll scholarship students if the private
             426      school meets the eligibility requirements of this section; and
             427          (b) make available to the public a list of the eligible private schools:
             428          (i) for the 2013-14 school year and each school year thereafter, by the April 30
             429      preceding the school year; and
             430          (ii) for the 2012-13 school year, by July 1, 2012.


             431          Section 14. Section 53A-1a-1114 is enacted to read:
             432          53A-1a-1114. Enforcement of private school requirements.
             433          (1) (a) The board shall require private schools to submit signed affidavits assuring the
             434      private school will comply with the requirements of Section 53A-1a-1113 .
             435          (b) If a school fails to submit a signed affidavit after having an opportunity to provide
             436      explanations and request delays, the board may deny the private school permission to enroll
             437      scholarship students.
             438          (2) The board may investigate complaints and convene administrative hearings for an
             439      alleged violation of Section 53A-1a-1113 .
             440          (3) Upon finding that Section 53A-1a-1113 was violated, the board may deny a private
             441      school permission to enroll scholarship students.
             442          Section 15. Section 53A-1a-1115 is enacted to read:
             443          53A-1a-1115. Limitation on regulation of private schools.
             444          Nothing in this part grants additional authority to any state agency to regulate private
             445      schools except as expressly set forth in this part.
             446          Section 16. Section 53A-3-410 is amended to read:
             447           53A-3-410. Criminal background checks on school personnel -- Notice -- Payment
             448      of costs -- Request for review.
             449          (1) As used in this section:
             450          (a) "Administrator" means an administrator at a school district, charter school, or
             451      private school that requests the Criminal Investigations and Technical Services Division of the
             452      Department of Public Safety to conduct a criminal background check on an applicant or
             453      employee.
             454          (b) "Applicant" means a person under consideration for:
             455          (i) an offer of employment at a school district, charter school, or private school; or
             456          (ii) appointment as a volunteer for a school district, charter school, or private school
             457      who will be given significant unsupervised access to a student in connection with the
             458      volunteer's assignment.
             459          (c) "Contract employee" means an employee of a staffing service who works at a
             460      public or private school under a contract between the staffing service and a school district,
             461      charter school, or private school.


             462          (d) "Division" means the Criminal Investigations and Technical Services Division of
             463      the Department of Public Safety.
             464          (2) A school district superintendent, the superintendent's designee, or the chief
             465      administrative officer of a charter school:
             466          (a) shall require an applicant to submit to a criminal background check as a condition
             467      for employment or appointment;
             468          (b) shall require an employee to periodically submit to a criminal background check in
             469      accordance with rules of the State Board of Education or policies of the local school board or
             470      charter school governing board; and
             471          (c) where reasonable cause exists, may require an existing employee or volunteer to
             472      submit to a criminal background check.
             473          (3) The chief administrative officer of a private school may require, and the chief
             474      administrative officer of a private school that enrolls scholarship students under Chapter 1a,
             475      Part 7, Carson Smith Scholarships for Students with Special Needs Act or Chapter 1a, Part 11,
             476      Student Opportunity Scholarship Act, shall require:
             477          (a) an applicant to submit to a criminal background check as a condition for
             478      employment or appointment; and
             479          (b) where reasonable cause exists, an existing employee or volunteer to submit to a
             480      criminal background check.
             481          (4) An applicant, volunteer, or employee shall receive written notice that a criminal
             482      background check has been requested.
             483          (5) (a) (i) Fingerprints of the applicant, volunteer, or employee shall be taken, and the
             484      Criminal Investigations and Technical Services Division of the Department of Public Safety,
             485      established in Section 53-10-103 , shall release the applicant's, volunteer's, or employee's full
             486      criminal history record to the administrator requesting the information.
             487          (ii) The division shall maintain a separate file of fingerprints submitted under
             488      Subsection (5)(a)(i) and notify the administrator when a new entry is made against an employee
             489      or volunteer whose fingerprints are held in the file regarding:
             490          (A) any matters involving an alleged sexual offense;
             491          (B) any matters involving an alleged drug-related offense;
             492          (C) any matters involving an alleged alcohol-related offense; or


             493          (D) any matters involving an alleged offense against the person under Title 76, Chapter
             494      5, Offenses Against the Person.
             495          (iii) The cost of maintaining the separate file shall be paid by the school district, charter
             496      school, or private school from fees charged to those submitting fingerprints.
             497          (b) Information received by the division from entities other than agencies or political
             498      subdivisions of the state may not be released to a private school unless the release is
             499      permissible under applicable laws or regulations of the entity providing the information.
             500          (6) The superintendent, local school board, or their counterparts at a charter school or
             501      private school shall consider only those convictions, pleas in abeyance, or arrests which are
             502      job-related for the employee, applicant, or volunteer.
             503          (7) (a) A school district, charter school, or private school may require an applicant to
             504      pay the costs of a background check as a condition for consideration for employment or
             505      appointment, if the applicant:
             506          (i) has passed an initial review; and
             507          (ii) is one of a pool of no more than five candidates for a position.
             508          (b) A school district or charter school may require an employee to pay the cost of a
             509      periodic criminal background check required pursuant to rules of the State Board of Education
             510      or policies of the local school board or charter school governing board.
             511          (8) The Criminal Investigations and Technical Services Division shall, upon request,
             512      seek additional information from regional or national criminal data files in responding to
             513      inquiries under this section.
             514          (9) (a) An applicant, volunteer, or employee shall have an opportunity to respond to
             515      any information received as a result of a criminal background check.
             516          (b) A public agency shall resolve any request for review by an applicant, volunteer, or
             517      employee through administrative procedures established by the agency.
             518          (10) (a) If a person is denied employment or is dismissed from employment because of
             519      information obtained through a criminal background check, the person shall receive written
             520      notice of the reasons for denial or dismissal and have an opportunity to respond to the reasons.
             521          (b) A school district or charter school shall resolve any request for a review of a denial
             522      of or dismissal from employment through administrative procedures established by the school
             523      district or charter school.


             524          (11) Information obtained under this part is confidential and may only be disclosed as
             525      provided in this section.
             526          (12) (a) A school district, charter school, or private school that enrolls scholarship
             527      students under Chapter 1a, Part 7, Carson Smith Scholarships for Students with Special Needs
             528      Act, may contract with a staffing service to provide a contract employee if:
             529          (i) the school district, charter school, or private school requests the Criminal
             530      Investigations and Technical Services Division of the Department of Public Safety to conduct a
             531      criminal background check on the contract employee that is placed at the school district,
             532      charter school, or private school;
             533          (ii) fingerprints of the contract employee are submitted to the division;
             534          (iii) the division releases the contract employee's full criminal history record to the
             535      school district, charter school, or private school requesting the criminal background check; and
             536          (iv) the school district, charter school, or private school requesting the criminal
             537      background check determines whether the contract employee is suitable for employment based
             538      on the standard established in Subsection (6).
             539          (b) The division shall maintain a separate file of fingerprints submitted under
             540      Subsection (12)(a) and notify the administrator when a new entry is made against a contract
             541      employee whose fingerprints are held in the file regarding a matter listed in Subsection
             542      (5)(a)(ii).
             543          (c) A school district, charter school, or private school may require a contract employee
             544      to pay the costs of a criminal background check, including the costs of the division to maintain
             545      the file required under Subsection (12)(b).
             546          (d) (i) A contract employee who applies for a license issued by the State Board of
             547      Education shall submit to a criminal background check as provided in Section 53A-6-401 .
             548          (ii) A contract employee who works at a public school and does not hold a license
             549      issued by the State Board of Education shall submit to a criminal background check every six
             550      years, or within a shorter period, if required by rules of the State Board of Education or policies
             551      of a local school board or charter school governing board.
             552          Section 17. Section 59-7-614.7 is enacted to read:
             553          59-7-614.7. Nonrefundable tax credit for donation to scholarship organization.
             554          (1) As used in this section:


             555          (a) "Pass-through entity" is as defined in Section 59-10-1402 .
             556          (b) "Pass-through entity taxpayer" is as defined in Section 59-10-1402 .
             557          (c) "Qualifying donor" is as defined in Section 53A-1a-1102 .
             558          (d) "Scholarship organization" is as defined in Section 53A-1a-1102 .
             559          (e) "Tax credit donor certificate" is as defined in Section 53A-1a-1102 .
             560          (2) Subject to the other provisions of this section, a qualifying donor to a scholarship
             561      organization may:
             562          (a) claim a nonrefundable tax credit as provided in this section; or
             563          (b) if the qualifying donor is a pass-through entity, pass through to one or more
             564      pass-through entity taxpayers of the pass-through entity, in accordance with Chapter 10, Part
             565      14, Pass-through Entities and Pass-through Entity Taxpayers Act, a nonrefundable tax credit
             566      that the qualifying donor could otherwise claim under this section.
             567          (3) A qualifying donor may only claim or pass through a tax credit under this section if
             568      the qualifying donor obtains a tax credit donor certificate under Section 53A-1a-1107 .
             569          (4) The maximum amount of the tax credit a qualifying donor may claim or pass
             570      through is the amount listed as the maximum tax credit on a tax credit donor certificate under
             571      Subsection 53A-1a-1107 (4).
             572          (5) A qualifying donor or a pass-through entity taxpayer may carry forward a tax credit
             573      under this section for a period that does not exceed the next three taxable years if:
             574          (a) the qualifying donor or pass-through entity taxpayer is allowed to claim a tax credit
             575      under this section for a taxable year; and
             576          (b) the amount of the tax credit exceeds the qualifying donor's or pass-through entity
             577      taxpayer's tax liability under this chapter for that taxable year.
             578          Section 18. Section 59-10-1002.2 is amended to read:
             579           59-10-1002.2. Apportionment of tax credits.
             580          (1) A nonresident individual or a part-year resident individual that claims a tax credit
             581      in accordance with Section 59-10-1017 , 59-10-1018 , 59-10-1019 , 59-10-1021 , 59-10-1022 ,
             582      59-10-1023 , 59-10-1024 , [or] 59-10-1028 , or 59-10-1029 may only claim an apportioned
             583      amount of the tax credit equal to:
             584          (a) for a nonresident individual, the product of:
             585          (i) the state income tax percentage for the nonresident individual; and


             586          (ii) the amount of the tax credit that the nonresident individual would have been
             587      allowed to claim but for the apportionment requirements of this section; or
             588          (b) for a part-year resident individual, the product of:
             589          (i) the state income tax percentage for the part-year resident individual; and
             590          (ii) the amount of the tax credit that the part-year resident individual would have been
             591      allowed to claim but for the apportionment requirements of this section.
             592          (2) A nonresident estate or trust that claims a tax credit in accordance with Section
             593      59-10-1017 , 59-10-1020 , 59-10-1022 , 59-10-1024 , [or] 59-10-1028 , or 59-10-1029 may only
             594      claim an apportioned amount of the tax credit equal to the product of:
             595          (a) the state income tax percentage for the nonresident estate or trust; and
             596          (b) the amount of the tax credit that the nonresident estate or trust would have been
             597      allowed to claim but for the apportionment requirements of this section.
             598          Section 19. Section 59-10-1029 is enacted to read:
             599          59-10-1029. Nonrefundable tax credit for donation to scholarship organization.
             600          (1) As used in this section:
             601          (a) "Eligible donation" means a donation:
             602          (i) a claimant, estate, or trust makes to a scholarship organization during a taxable year;
             603          (ii) that the claimant, estate, or trust does not designate for the benefit of a particular
             604      student;
             605          (iii) with respect to which the claimant, estate, or trust does not claim an exemption or
             606      tax credit or make a deduction or subtraction on the claimant's, estate's, or trust's state or
             607      federal income tax return for the taxable year, other than a tax credit under this section; and
             608          (iv) to the extent the claimant, estate, or trust does not receive property or a service in
             609      return for the donation.
             610          (b) "Head of household filing status" is as defined in Section 59-10-1018 .
             611          (c) "Joint filing status" is as defined in Section 59-10-1018 .
             612          (d) "Pass-through entity" is as defined in Section 59-10-1402 .
             613          (e) "Pass-through entity taxpayer" is as defined in Section 59-10-1402 .
             614          (f) "Scholarship organization" is as defined in Section 53A-1a-1102 .
             615          (g) "Single filing status" is as defined in Section 59-10-1018 .
             616          (2) Except as provided in Section 59-10-1002.2 and subject to the other provisions of


             617      this section, a claimant, estate, or trust who makes an eligible donation to a scholarship
             618      organization may:
             619          (a) claim a nonrefundable tax credit as provided in this section; or
             620          (b) if the claimant, estate, or trust is a pass-through entity, pass through to one or more
             621      pass-through entity taxpayers of the pass-through entity, in accordance with Chapter 10, Part
             622      14, Pass-through Entities and Pass-through Entity Taxpayers Act, a nonrefundable tax credit
             623      that the claimant, estate, or trust could otherwise claim under this section.
             624          (3) A tax credit under this section may not exceed the lesser of:
             625          (a) the eligible donation; or
             626          (b) (i) $500 for a claimant, estate, trust, or pass-through entity taxpayer that has a
             627      single filing status;
             628          (ii) $750 for a claimant, estate, trust, or pass-through entity taxpayer that has a head of
             629      household filing status; or
             630          (iii) $1,000 for a claimant, estate, trust, or pass-through entity taxpayer that has a joint
             631      filing status.
             632          (4) A claimant, estate, trust, or pass-through entity taxpayer may carry forward a tax
             633      credit under this section for a period that does not exceed the next three taxable years if:
             634          (a) the claimant, estate, trust, or pass-through entity taxpayer is allowed to claim a tax
             635      credit under this section for a taxable year; and
             636          (b) the amount of the tax credit exceeds the claimant's, estate's, trust's, or pass-through
             637      entity taxpayer's tax liability under this chapter for that taxable year.
             638          Section 20. Retrospective operation.
             639          Sections 59-7-614.7 , 59-10-1002.2 , and 59-10-1029 have retrospective operation for a
             640      taxable year beginning on or after January 1, 2012.




Legislative Review Note
    as of 1-27-12 11:31 AM


Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]