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7 LONG TITLE
8 General Description:
9 This bill creates the Special Needs Opportunity Scholarship Program and related
10 income tax credits.
11 Highlighted Provisions:
12 This bill:
13 ▸ enacts Title 53E, Chapter 7, Part 4, Special Needs Opportunity Scholarship
14 Program, including:
15 • defining terms;
16 • creating the Special Needs Opportunity Scholarship Program;
17 • establishing the requirements for qualifying schools;
18 • requiring the State Board of Education to oversee the Special Needs
19 Opportunity Scholarship Program; and
20 • establishing the duties of the scholarship granting organizations that administer
21 the program;
22 ▸ creates a nonrefundable corporate income tax credit and a nonrefundable individual
23 income tax credit for donations to the program; and
24 ▸ prohibits a taxpayer from claiming more than one state income tax benefit from
25 making the donation.
26 Money Appropriated in this Bill:
27 None
28 Other Special Clauses:
29 This bill provides a special effective date.
30 Utah Code Sections Affected:
31 AMENDS:
32 53-10-108, as last amended by Laws of Utah 2015, Chapters 255 and 389
33 59-7-109, as last amended by Laws of Utah 1995, Chapter 311
34 59-10-1018, as last amended by Laws of Utah 2012, Chapter 295
35 ENACTS:
36 53E-7-401, Utah Code Annotated 1953
37 53E-7-402, Utah Code Annotated 1953
38 53E-7-403, Utah Code Annotated 1953
39 53E-7-404, Utah Code Annotated 1953
40 53E-7-405, Utah Code Annotated 1953
41 53E-7-406, Utah Code Annotated 1953
42 53E-7-407, Utah Code Annotated 1953
43 59-7-623, Utah Code Annotated 1953
44 59-10-1041, Utah Code Annotated 1953
45
46 Be it enacted by the Legislature of the state of Utah:
47 Section 1. Section 53-10-108 is amended to read:
48 53-10-108. Restrictions on access, use, and contents of division records -- Limited
49 use of records for employment purposes -- Challenging accuracy of records -- Usage fees
50 -- Missing children records -- Penalty for misuse of records.
51 (1) As used in this section:
52 (a) "FBI Rap Back System" means the rap back system maintained by the Federal
53 Bureau of Investigation.
54 (b) "Rap back system" means a system that enables authorized entities to receive
55 ongoing status notifications of any criminal history reported on individuals whose fingerprints
56 are registered in the system.
57 (c) "WIN Database" means the Western Identification Network Database that consists
58 of eight western states sharing one electronic fingerprint database.
59 (2) Dissemination of information from a criminal history record or warrant of arrest
60 information from division files is limited to:
61 (a) criminal justice agencies for purposes of administration of criminal justice and for
62 employment screening by criminal justice agencies;
63 (b) noncriminal justice agencies or individuals for any purpose authorized by statute,
64 executive order, court rule, court order, or local ordinance;
65 (c) agencies or individuals for the purpose of obtaining required clearances connected
66 with foreign travel or obtaining citizenship;
67 (d) (i) agencies or individuals pursuant to a specific agreement with a criminal justice
68 agency to provide services required for the administration of criminal justice; and
69 (ii) the agreement shall specifically authorize access to data, limit the use of the data to
70 purposes for which given, and ensure the security and confidentiality of the data;
71 (e) agencies or individuals for the purpose of a preplacement adoptive study, in
72 accordance with the requirements of Sections 78B-6-128 and 78B-6-130;
73 (f) (i) agencies and individuals as the commissioner authorizes for the express purpose
74 of research, evaluative, or statistical activities pursuant to an agreement with a criminal justice
75 agency; and
76 (ii) private security agencies through guidelines established by the commissioner for
77 employment background checks for their own employees and prospective employees;
78 (g) a qualifying entity for employment background checks for their own employees and
79 persons who have applied for employment with the qualifying entity; [
80 (h) the State Board of Education for employment background checks of individuals in
81 accordance with Section 53E-7-404; and
82 [
83 necessary for protection of life and property and for offender identification, apprehension, and
84 prosecution pursuant to an agreement.
85 (3) An agreement under Subsection (2)(f) or (2)[
86 access to data, limit the use of data to research, evaluative, or statistical purposes, preserve the
87 anonymity of individuals to whom the information relates, and ensure the confidentiality and
88 security of the data.
89 (4) (a) Before requesting information under Subsection (2)(g), a qualifying entity must
90 obtain a signed waiver from the person whose information is requested.
91 (b) The waiver must notify the signee:
92 (i) that a criminal history background check will be conducted;
93 (ii) who will see the information; and
94 (iii) how the information will be used.
95 (c) Information received by a qualifying entity under Subsection (2)(g) may only be:
96 (i) available to persons involved in the hiring or background investigation of the
97 employee; and
98 (ii) used for the purpose of assisting in making an employment or promotion decision.
99 (d) A person who disseminates or uses information obtained from the division under
100 Subsection (2)(g) for purposes other than those specified under Subsection (4)(c), in addition to
101 any penalties provided under this section, is subject to civil liability.
102 (e) A qualifying entity that obtains information under Subsection (2)(g) shall provide
103 the employee or employment applicant an opportunity to:
104 (i) review the information received as provided under Subsection (9); and
105 (ii) respond to any information received.
106 (f) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
107 division may make rules to implement this Subsection (4).
108 (g) The division or its employees are not liable for defamation, invasion of privacy,
109 negligence, or any other claim in connection with the contents of information disseminated
110 under Subsection (2)(g).
111 (5) (a) Any criminal history record information obtained from division files may be
112 used only for the purposes for which it was provided and may not be further disseminated,
113 except under Subsection (5)(b), (c), or (d).
114 (b) A criminal history provided to an agency pursuant to Subsection (2)(e) may be
115 provided by the agency to the person who is the subject of the history, another licensed
116 child-placing agency, or the attorney for the adoptive parents for the purpose of facilitating an
117 adoption.
118 (c) A criminal history of a defendant provided to a criminal justice agency under
119 Subsection (2)(a) may also be provided by the prosecutor to a defendant's defense counsel,
120 upon request during the discovery process, for the purpose of establishing a defense in a
121 criminal case.
122 (d) A public transit district, as described in Title 17B, Chapter 2a, Part 8, Public
123 Transit District Act, that is under contract with a state agency to provide services may, for the
124 purposes of complying with Subsection 62A-5-103.5(5), provide a criminal history record to
125 the state agency or the agency's designee.
126 (6) The division may not disseminate criminal history record information to qualifying
127 entities under Subsection (2)(g) regarding employment background checks if the information is
128 related to charges:
129 (a) that have been declined for prosecution;
130 (b) that have been dismissed; or
131 (c) regarding which a person has been acquitted.
132 (7) (a) This section does not preclude the use of the division's central computing
133 facilities for the storage and retrieval of criminal history record information.
134 (b) This information shall be stored so it cannot be modified, destroyed, or accessed by
135 unauthorized agencies or individuals.
136 (8) Direct access through remote computer terminals to criminal history record
137 information in the division's files is limited to those agencies authorized by the commissioner
138 under procedures designed to prevent unauthorized access to this information.
139 (9) (a) The commissioner shall establish procedures to allow an individual right of
140 access to review and receive a copy of the individual's criminal history report.
141 (b) A processing fee for the right of access service, including obtaining a copy of the
142 individual's criminal history report under Subsection (9)(a) is $15. This fee remains in effect
143 until changed by the commissioner through the process under Section 63J-1-504.
144 (c) (i) The commissioner shall establish procedures for an individual to challenge the
145 completeness and accuracy of criminal history record information contained in the division's
146 computerized criminal history files regarding that individual.
147 (ii) These procedures shall include provisions for amending any information found to
148 be inaccurate or incomplete.
149 (10) The private security agencies as provided in Subsection (2)(f)(ii):
150 (a) shall be charged for access; and
151 (b) shall be registered with the division according to rules made by the division under
152 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
153 (11) Before providing information requested under this section, the division shall give
154 priority to criminal justice agencies needs.
155 (12) (a) It is a class B misdemeanor for a person to knowingly or intentionally access,
156 use, disclose, or disseminate a record created, maintained, or to which access is granted by the
157 division or any information contained in a record created, maintained, or to which access is
158 granted by the division for a purpose prohibited or not permitted by statute, rule, regulation, or
159 policy of a governmental entity.
160 (b) A person who discovers or becomes aware of any unauthorized use of records
161 created or maintained, or to which access is granted by the division shall inform the
162 commissioner and the director of the Utah Bureau of Criminal Identification of the
163 unauthorized use.
164 (13) (a) Subject to Subsection (13)(b), a qualifying entity or an entity described in
165 Subsection (2)(b) may request that the division register fingerprints taken for the purpose of
166 conducting current and future criminal background checks under this section with:
167 (i) the WIN Database rap back system, or any successor system;
168 (ii) the FBI Rap Back System; or
169 (iii) a system maintained by the division.
170 (b) A qualifying entity or an entity described in Subsection (2)(b) may only make a
171 request under Subsection (13)(a) if the entity:
172 (i) has the authority through state or federal statute or federal executive order;
173 (ii) obtains a signed waiver from the individual whose fingerprints are being registered;
174 and
175 (iii) establishes a privacy risk mitigation strategy to ensure that the entity only receives
176 notifications for individuals with whom the entity maintains an authorizing relationship.
177 (14) The division is authorized to submit fingerprints to the FBI Rap Back System to
178 be retained in the FBI Rap Back System for the purpose of being searched by future
179 submissions to the FBI Rap Back System, including latent fingerprint searches.
180 (15) (a) (i) The applicant fingerprint card fee under Subsection (2) is $20.
181 (ii) The name check fee under Subsection (2) is $15.
182 (iii) The fee to register fingerprints under Subsection (13)(a)(i) is $5.
183 (iv) The fees described in this Subsection (15)(a) remain in effect until changed by the
184 division through the process under Section 63J-1-504.
185 (b) Funds generated under this Subsection (15) shall be deposited into the General
186 Fund as a dedicated credit by the department to cover the costs incurred in providing the
187 information.
188 (c) The division may collect fees charged by an outside agency for services required
189 under this section.
190 Section 2. Section 53E-7-401 is enacted to read:
191
192 53E-7-401. Definitions.
193 As used in this part:
194 (1) "Board" means the State Board of Education.
195 (2) "Eligible student" means an elementary or secondary student who:
196 (a) is a resident of the state; and
197 (b) (i) has an individualized education program, as defined in Section 53E-4-301;
198 (ii) has an individualized family service plan in accordance with the Individuals with
199 Disabilities Education Act, 20 U.S.C. Sec. 1400 et seq., if entering kindergarten;
200 (iii) is determined by a multidisciplinary evaluation team to be eligible for services
201 under the Individuals with Disabilities Education Act, 20 U.S.C. Sec. 1400 et seq.;
202 (iv) has a Section 504 accommodation plan under Section 504 of the Rehabilitation
203 Act of 1973, 29 U.S.C. Sec. 701 et seq.;
204 (v) is diagnosed with one or more of the following:
205 (A) an intellectual disability;
206 (B) a hearing impairment, including deafness;
207 (C) a speech or language impairment;
208 (D) a visual impairment, including blindness;
209 (E) a serious emotional disturbance;
210 (F) an orthopedic impairment;
211 (G) autism;
212 (H) a traumatic brain injury; or
213 (I) any other health impairment or specific disability; or
214 (vi) is a scholarship student, as defined in Section 53F-4-301, or has met the
215 qualifications described in Subsection 53F-4-302(2) at any time within three years before the
216 day on which the student applies for a scholarship in accordance with Section 53E-7-402.
217 (3) (a) "Employee" means an individual in a position in which the individual's salary,
218 wages, pay, or compensation, including as a contractor, is paid from:
219 (i) scholarship granting organization funds; or
220 (ii) qualifying school funds.
221 (b) "Employee" does not include a scholarship granting organization or qualifying
222 school volunteer.
223 (4) "Officer" means:
224 (a) a member of the board of a scholarship granting organization or qualifying school;
225 or
226 (b) the chief administrative officer of a scholarship granting organization or qualifying
227 school.
228 (5) "Parent" means a parent or legal guardian.
229 (6) "Qualifying school" means a private school that provides elementary or secondary
230 education and has notified a scholarship granting organization of the private school's intention
231 to participate in the program and comply with program requirements.
232 (7) "Relative" means a father, mother, husband, wife, son, daughter, sister, brother,
233 uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law,
234 sister-in-law, son-in-law, or daughter-in-law.
235 (8) "Scholarship" means a grant for an eligible student that is:
236 (a) funded from a donation made under Section 53E-7-405; and
237 (b) used to pay for an expense described in Section 53E-7-402.
238 (9) "Scholarship granting organization" means an organization that is qualified as tax
239 exempt under Section 501(c)(3), Internal Revenue Code.
240 (10) "Special Needs Opportunity Scholarship Program" or "program" means the
241 program established in Section 53E-7-402.
242 (11) "Value of the weighted pupil unit" means the amount established each year in
243 statute that is multiplied by the number of weighted pupil units to yield the funding level for
244 the basic state-supported school program.
245 Section 3. Section 53E-7-402 is enacted to read:
246 53E-7-402. Special Needs Opportunity Scholarship Program -- Scholarships.
247 (1) There is established the Special Needs Opportunity Scholarship Program to which a
248 parent may apply to a scholarship granting organization on behalf of the parent's eligible
249 student for a scholarship for an expense described in Subsection (4).
250 (2) A scholarship granting organization:
251 (a) may award, in accordance with this part, a scholarship to an eligible student; and
252 (b) shall determine the amount of a scholarship in accordance with Subsection (3).
253 (3) The scholarship granting organization shall award to an eligible student a full-year
254 scholarship for an amount not to exceed 90% of the value of the weighted pupil unit multiplied
255 by 2.5.
256 (4) A scholarship granting organization may award a scholarship to an eligible student
257 for one or more of the following expenses:
258 (a) tuition, fees, textbooks, and uniforms at a qualifying school;
259 (b) educational therapy including, but not limited to, occupational, behavioral,
260 physical, and speech-language therapies;
261 (c) textbooks, curriculum, or other instructional materials, including, but not limited to,
262 supplemental materials or associated online instruction required by a curriculum;
263 (d) tuition and fees for an approved non-public online learning course or program; and
264 (e) fees for national norm-referenced examinations, advanced placement examinations,
265 or similar courses, fees associated with state-recognized industry certification exams, and any
266 examination related to college or university admission.
267 (5) The board shall prepare and disseminate to a scholarship granting organization for
268 distribution to a parent applying to the program on behalf of an eligible student:
269 (a) information on the program;
270 (b) an explanation of local obligations under 20 U.S.C. Sec. 1412(a)(10)(A) for a
271 student who attends a private school;
272 (c) information on how a parent may enroll the parent's child in a public school; and
273 (d) any other information that the board determines is useful to a parent of an eligible
274 student.
275 (6) Before the beginning of the school year immediately following a school year in
276 which a qualifying school receives scholarship payments equal to or more than $100,000, the
277 qualifying school shall file with the scholarship granting organization that recognizes the
278 qualifying school:
279 (a) a surety bond payable to the scholarship granting organization in an amount equal
280 to the aggregate amount of scholarships expected to be received during the school year; or
281 (b) the financial information that demonstrates the financial viability of the qualifying
282 school.
283 Section 4. Section 53E-7-403 is enacted to read:
284 53E-7-403. Qualifying school.
285 To be eligible to be a qualifying school, a private school shall:
286 (1) comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d; and
287 (2) meet state and local health and safety laws and codes.
288 Section 5. Section 53E-7-404 is enacted to read:
289 53E-7-404. Administration by the board -- Duties -- Agreement.
290 (1) The board shall administer the program.
291 (2) The board shall:
292 (a) provide a standardized tax credit certificate to be issued by a scholarship granting
293 organization to a taxpayer that includes:
294 (i) the name and address of the person that makes a donation under Section 53E-7-405;
295 (ii) the date of the donation;
296 (iii) the amount of the donation; and
297 (iv) any other information required by the board;
298 (b) conduct a financial review or audit of a scholarship granting organization, if the
299 board receives evidence of fraudulent practices by the scholarship granting organization;
300 (c) (i) conduct a criminal background check on each scholarship granting organization
301 employee and scholarship granting organization officer; and
302 (ii) have direct access to criminal background information maintained by the Bureau of
303 Criminal Identification under Title 53, Chapter 10, Part 2, Bureau of Criminal Identification,
304 for individuals described in Subsection (2)(c)(i); and
305 (d) establish uniform financial accounting standards for scholarship granting
306 organizations.
307 (3) (a) Subject to Subsection (4), the board shall, in accordance with Title 63G,
308 Chapter 6a, Utah Procurement Code, issue a request for proposals and enter into an agreement
309 with an organization to be recognized as a scholarship granting organization.
310 (b) A scholarship granting organization that responds to a request for proposals under
311 Subsection (3)(a) shall disclose in the response the following information:
312 (i) a copy of the organization's incorporation documents;
313 (ii) a copy of the organization's Internal Revenue Service determination letter
314 qualifying the organization as being tax exempt under Section 501(c)(3), Internal Revenue
315 Code;
316 (iii) a description of the methodology the organization will use to evaluate whether a
317 student is an eligible student;
318 (iv) a description of the scholarship application process the organization will use for
319 eligible students; and
320 (v) an acknowledgment that the organization will comply with antidiscrimination
321 provisions of 42 U.S.C. Sec. 200d.
322 (4) The board shall enter into an agreement under Subsection (3)(a) with:
323 (a) only one scholarship granting organization on or before January 1, 2021; and
324 (b) additional scholarship granting organizations after January 1, 2021.
325 (5) (a) If the board determines that a scholarship granting organization has violated a
326 provision of this part or board rule, the board shall send written notice to the scholarship
327 granting organization explaining the violation and mandatory remedial action.
328 (b) A scholarship granting organization that receives a notice described in Subsection
329 (5)(a) shall, no later than 60 days after the day on which the scholarship granting organization
330 receives the notice, correct the violation and report the correction to the board.
331 (c) (i) If a scholarship granting organization that has received notice fails to correct a
332 violation in the time period described in Subsection (5)(b), the board may bar the scholarship
333 granting organization from participating in the program.
334 (ii) A scholarship granting organization may appeal a decision by the board under
335 Subsection (5)(c)(i) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
336 (d) A scholarship granting organization may not accept donations for purposes of the
337 program if:
338 (i) the organization is barred from participating in the program under Subsection
339 (5)(c)(i); or
340 (ii) an appeal of the board's decision under Subsection (5)(c)(ii) is pending.
341 (e) A scholarship granting organization that has an appeal pending under Subsection
342 (5)(c)(ii) may continue to administer scholarships from previously donated funds until a final
343 determination of the appeal.
344 (6) The board shall provide a standardized format for a scholarship granting
345 organization to report the information required under Section 53E-7-405.
346 (7) The board shall make rules in accordance with Title 63G, Chapter 3, Utah
347 Administrative Rulemaking Act, for:
348 (a) a scholarship granting organization's acceptance of donations;
349 (b) the administration of scholarships to a qualifying school receiving scholarship
350 payments from a scholarship granting organization that is barred from participating in the
351 program under Subsection (5)(c)(i);
352 (c) the process by which a scholarship granting organization may appeal a decision of
353 the board under Subsection (5)(c); and
354 (d) audit and report requirements as described in Section 53E-7-405.
355 Section 6. Section 53E-7-405 is enacted to read:
356 53E-7-405. Scholarship donation -- Scholarship granting organization --
357 Application -- Duties -- Regulated transactions and relationships.
358 (1) A person may make a donation to a scholarship granting organization to fund a
359 scholarship.
360 (2) An organization may enter into an agreement with the board to be a scholarship
361 granting organization in accordance with Section 53E-7-404.
362 (3) A scholarship granting organization shall:
363 (a) allocate periodic scholarship payments to an eligible student's parent or, on the
364 parent's behalf, to the qualifying school in which the eligible student is enrolled;
365 (b) create a board-approved process to allow a parent to pay for a non-tuition service
366 described in Subsection 53E-7-402(4);
367 (c) ensure that:
368 (i) at least 90% of the scholarship granting organization's revenue from donations is
369 spent on scholarships; and
370 (ii) all revenue from donation interest or investments is spent on scholarships;
371 (d) carry forward no more than 40% of the scholarship granting organization's
372 donations from the state fiscal year in which the scholarship granting organization received the
373 donations to the following state fiscal year;
374 (e) based on a criminal background check conducted by the board in accordance with
375 Section 53E-7-404, prohibit a scholarship granting organization employee or officer identified
376 by the board who poses a risk to the appropriate use of donation funds from handling,
377 managing, or processing donation funds;
378 (f) ensure that a scholarship is portable throughout the year and available for use at a
379 qualifying school that accepts an eligible student;
380 (g) report to the board on or before June 1 each year the following information
381 prepared by a certified public accountant:
382 (i) the name and address of the scholarship granting organization;
383 (ii) the total number and total dollar amount of donations the scholarship granting
384 organization received during the previous calendar year;
385 (iii) the total number and total dollar amount of scholarships the scholarship granting
386 organization awarded during the previous calendar year; and
387 (iv) the percentage of first-time eligible student scholarship recipients who were
388 enrolled in a public school during the previous school year or who entered school for the first
389 time; and
390 (h) issue a tax credit certificate in accordance with Section 53E-7-407.
391 (4) A scholarship granting organization shall demonstrate the scholarship granting
392 organization's financial accountability by submitting to the board an annual financial
393 information report that:
394 (a) complies with the uniform financial accounting standards adopted by the board
395 under Section 53E-7-404; and
396 (b) is prepared by a certified public accountant.
397 (5) (a) If a scholarship granting organization distributes $500,000 or more in
398 scholarships annually through the program, the scholarship organization shall:
399 (i) contract for an annual audit, conducted by an independent certified public
400 accountant, independent of the scholarship granting organization or the scholarship granting
401 organization's accounts and records pertaining to program donations; and
402 (ii) report the results of the audit to the board for review.
403 (b) For the report described in Subsection (5)(a)(ii), the scholarship granting
404 organization shall:
405 (i) include the scholarship granting organization's financial statements in a format that
406 meets generally accepted accounting standards; and
407 (ii) submit the report to the board no later than 180 days after the last day of a
408 scholarship granting organization's fiscal year.
409 (c) The independent certified public accountant shall conduct the audit described in
410 Subsection (5)(a)(i) in accordance with generally accepted auditing standards and rules made
411 by the board.
412 (d) (i) The board:
413 (A) shall review a report submitted under this section; and
414 (B) may request that the scholarship granting organization revise or supplement the
415 report if the report is not in compliance with the provisions of this Subsection (5) or rules
416 adopted by the board.
417 (ii) A scholarship granting organization shall provide a revised report or supplement to
418 the report no later than 45 days after the day on which the board makes a request described in
419 Subsection (5)(d)(i)(B).
420 (6) A scholarship granting organization may not distribute funds to a qualifying school
421 if:
422 (a) the scholarship granting organization determines that the qualifying school
423 intentionally or substantially misrepresented information on overpayment;
424 (b) the qualifying school fails to refund an overpayment in a timely manner; or
425 (c) the qualifying school routinely fails to provide eligible students with promised
426 educational goods or services.
427 (7) If an eligible student transfers to another qualifying school during the school year,
428 the scholarship granting organization may prorate the eligible student's scholarship amount.
429 (8) A scholarship granting organization may not award a scholarship under this part to:
430 (a) a relative of the scholarship granting organization officer or employee; or
431 (b) a qualifying school at which the eligible student has a relative who is an officer or
432 an employee of the qualifying school.
433 Section 7. Section 53E-7-406 is enacted to read:
434 53E-7-406. Limitation on regulation of private schools -- Student records.
435 (1) Nothing in this part:
436 (a) grants additional authority to any state agency or local education agency to regulate
437 private schools except as expressly set forth in this part; or
438 (b) shall be construed to expand the regulatory authority of the state, a state office
439 holder, or a local school district to impose any additional regulation of a qualifying school
440 beyond those necessary to enforce the requirements of the program.
441 (2) A qualifying school shall be given the maximum freedom to provide for the
442 educational needs of eligible students without governmental control.
443 (3) A qualifying school may not be required to alter the qualifying school's creed,
444 practices, admission policy, or curriculum in order to accept a scholarship payment.
445 (4) A school, school district, or the Utah Schools for the Deaf and the Blind, in which a
446 student was previously enrolled, shall provide to a qualifying school in which the student is
447 enrolled as an eligible student under the program a complete copy of the eligible student's
448 records subject to:
449 (a) Title 53E, Chapter 9, Student Privacy and Data Protection; and
450 (b) Family Educational Rights and Privacy Act, 20 U.S.C. Sec. 1232g.
451 Section 8. Section 53E-7-407 is enacted to read:
452 53E-7-407. Tax credit certificate -- Cap on donations eligible for tax credit.
453 (1) Subject to the other provisions of this section, a scholarship granting organization
454 shall provide a tax credit certificate to any person that makes a donation to the program during
455 the calendar year.
456 (2) (a) The scholarship granting organization shall issue the tax credit certificate
457 described in Subsection (1) on a form created by the board in accordance with Section
458 53E-7-404.
459 (b) The scholarship granting organization shall provide the information from the tax
460 credit certificate to the commission electronically and in a manner prescribed by the
461 commission.
462 (c) A scholarship granting organization shall issue a tax credit certificate within 30
463 days of the day on which a person makes a donation to the program.
464 (3) (a) The scholarship granting organizations may not issue a tax credit certificate for
465 a calendar year once the aggregate amount of the tax credit certificates issued for the calendar
466 year exceed the cap amount described in Subsection (4).
467 (b) The scholarship granting organizations shall provide a person, prior to the person
468 making a donation to the program, with notice:
469 (i) that the donation may not be eligible for a tax credit;
470 (ii) of the process described in Subsection (3)(c); and
471 (iii) of the amount of tax credit certificates that the scholarship granting organizations
472 have issued for the calendar year.
473 (c) If a scholarship granting organization receives donations to the program in amounts
474 that exceed the total aggregate amount of tax credit certificates the scholarship granting
475 organization may issue under this Subsection (3), the scholarship granting organizations shall
476 issue a tax credit certificate for a donation to the program:
477 (i) in the order that the scholarship granting organizations receive the donations to the
478 program until the total aggregate amount is met; and
479 (ii) for the final person to receive a tax credit certificate, in an amount equal to the
480 difference between the cap amount described in Subsection (4) and the aggregate dollar amount
481 of the tax credit certificates that the scholarship granting organizations have already issued for
482 the calendar year.
483 (4) (a) Subject to Subsection (4)(b), the cap amount is $12,000,000.
484 (b) If the scholarship granting organizations collectively receive donations for the
485 calendar year that equal or exceed 90% of the cap described in Subsection (4)(a), the cap
486 amount described in Subsection (4)(a) automatically increases by 10% for the next calendar
487 year.
488 (5) A person that receives a tax credit certificate in accordance with this section shall
489 retain the certificate for the same time period a person is required to keep books and records
490 under Section 59-1-1406.
491 Section 9. Section 59-7-109 is amended to read:
492 59-7-109. Charitable contributions.
493 (1) Except as provided in [
494 allowed for charitable contributions made within the taxable year to organizations described in
495 Section 170(c), Internal Revenue Code.
496 (2) (a) The aggregate amount of charitable contributions deductible under this section
497 may not exceed 10% of the taxpayer's apportionable income.
498 (b) The limitation imposed in this [
499 combined basis in a combined report.
500 (3) Any charitable contribution made in a taxable year [
501
502 be carried over to the five succeeding taxable years in the same manner as allowed under
503 federal law.
504 (4) A taxpayer may not deduct a charitable contribution that meets the requirements of
505 this section to the extent that the taxpayer claims a tax credit under Section 59-7-623 for the
506 same charitable contribution.
507 Section 10. Section 59-7-623 is enacted to read:
508 59-7-623. Nonrefundable tax credit for donation to Special Needs Opportunity
509 Scholarship Program.
510 (1) A taxpayer that makes a donation to the Special Needs Opportunity Scholarship
511 Program established in Section 53E-7-402 may claim a nonrefundable tax credit equal to 100%
512 of the amount stated on a tax credit certificate issued in accordance with Section 53E-7-407.
513 (2) (a) A taxpayer may carry forward for the next three taxable years the amount of the
514 tax credit that exceeds the taxpayer's tax liability for the taxable year.
515 (b) A taxpayer may not carry back the amount of the tax credit that exceeds the
516 taxpayer's tax liability for the taxable year.
517 Section 11. Section 59-10-1018 is amended to read:
518 59-10-1018. Definitions -- Nonrefundable taxpayer tax credits.
519 (1) As used in this section:
520 (a) "Dependent adult with a disability" means an individual who:
521 (i) a claimant claims as a dependent under Section 151, Internal Revenue Code, on the
522 claimant's federal individual income tax return for the taxable year;
523 (ii) is not the claimant or the claimant's spouse; and
524 (iii) is:
525 (A) 18 years of age or older;
526 (B) eligible for services under Title 62A, Chapter 5, Services for People with
527 Disabilities; and
528 (C) not enrolled in an education program for students with disabilities that is
529 authorized under Section 53A-15-301.
530 (b) "Dependent child with a disability" means an individual 21 years of age or younger
531 who:
532 (i) a claimant claims as a dependent under Section 151, Internal Revenue Code, on the
533 claimant's federal individual income tax return for the taxable year;
534 (ii) is not the claimant or the claimant's spouse; and
535 (iii) is:
536 (A) an eligible student with a disability; or
537 (B) identified under guidelines of the Department of Health as qualified for Early
538 Intervention or Infant Development Services.
539 (c) "Eligible student with a disability" means an individual who is:
540 (i) diagnosed by a school district representative under rules the State Board of
541 Education adopts in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
542 Act, as having a disability classified as autism, deafness, preschool developmental delay, dual
543 sensory impairment, hearing impairment, intellectual disability, multidisability, orthopedic
544 impairment, other health impairment, traumatic brain injury, or visual impairment;
545 (ii) not receiving residential services from the Division of Services for People with
546 Disabilities created under Section 62A-5-102 or a school established under [
547
548 (iii) (A) enrolled in an education program for students with disabilities that is
549 authorized under Section [
550 (B) a recipient of a scholarship awarded under [
551 53F, Chapter 4, Part 3, Carson Smith [
552 Scholarship Program.
553 (d) "Head of household filing status" means a head of household, as defined in Section
554 2(b), Internal Revenue Code, who files a single federal individual income tax return for the
555 taxable year.
556 (e) "Joint filing status" means:
557 (i) a husband and wife who file a single return jointly under this chapter for a taxable
558 year; or
559 (ii) a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files a
560 single federal individual income tax return for the taxable year.
561 (f) "Single filing status" means:
562 (i) a single individual who files a single federal individual income tax return for the
563 taxable year; or
564 (ii) a married individual who:
565 (A) does not file a single federal individual income tax return jointly with that married
566 individual's spouse for the taxable year; and
567 (B) files a single federal individual income tax return for the taxable year.
568 (2) Except as provided in Section 59-10-1002.2, and subject to Subsections (3) through
569 (5), a claimant may claim a nonrefundable tax credit against taxes otherwise due under this part
570 equal to the sum of:
571 (a) (i) for a claimant that deducts the standard deduction on the claimant's federal
572 individual income tax return for the taxable year, 6% of the amount the claimant deducts as
573 allowed as the standard deduction on the claimant's federal individual income tax return for
574 that taxable year; or
575 (ii) for a claimant that itemizes deductions on the claimant's federal individual income
576 tax return for the taxable year, the [
577 following from the amount the claimant deducts as allowed as an itemized deduction on the
578 claimant's federal individual income tax return for that taxable year:
579 [
580 [
581
582 [
583 an itemized deduction on the claimant's federal individual income tax return for that taxable
584 year; and
585 (B) the amount of a donation made in accordance with Section 53F-7-405 that the
586 claimant deducts as allowed as an itemized deduction on the claimant's federal individual
587 income tax return for that taxable year, to the extent that the claimant claims a tax credit under
588 Section 59-10-1041 for the same donation; and
589 [
590 (b) the product of:
591 (i) 75% of the total amount the claimant deducts as allowed as a personal exemption
592 deduction on the claimant's federal individual income tax return for that taxable year, plus an
593 additional 75% of the amount the claimant deducts as allowed as a personal exemption
594 deduction on the claimant's federal individual income tax return for that taxable year with
595 respect to each dependent adult with a disability or dependent child with a disability; and
596 (ii) 6%.
597 (3) A claimant may not carry forward or carry back a tax credit under this section.
598 (4) The tax credit allowed by Subsection (2) shall be reduced by $.013 for each dollar
599 by which a claimant's state taxable income exceeds:
600 (a) for a claimant who has a single filing status, $12,000;
601 (b) for a claimant who has a head of household filing status, $18,000; or
602 (c) for a claimant who has a joint filing status, $24,000.
603 (5) (a) For taxable years beginning on or after January 1, 2009, the commission shall
604 increase or decrease the following dollar amounts by a percentage equal to the percentage
605 difference between the consumer price index for the preceding calendar year and the consumer
606 price index for calendar year 2007:
607 (i) the dollar amount listed in Subsection (4)(a); and
608 (ii) the dollar amount listed in Subsection (4)(b).
609 (b) After the commission increases or decreases the dollar amounts listed in Subsection
610 (5)(a), the commission shall round those dollar amounts listed in Subsection (5)(a) to the
611 nearest whole dollar.
612 (c) After the commission rounds the dollar amounts as required by Subsection (5)(b),
613 the commission shall increase or decrease the dollar amount listed in Subsection (4)(c) so that
614 the dollar amount listed in Subsection (4)(c) is equal to the product of:
615 (i) the dollar amount listed in Subsection (4)(a); and
616 (ii) two.
617 (d) For purposes of Subsection (5)(a), the commission shall calculate the consumer
618 price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
619 Section 12. Section 59-10-1041 is enacted to read:
620 59-10-1041. Nonrefundable tax credit for donation to Special Needs Opportunity
621 Scholarship Program.
622 (1) A claimant, estate, or trust that makes a donation to the Special Needs Opportunity
623 Scholarship Program established in Section 53E-7-402 may claim a nonrefundable tax credit
624 equal to 100% of the amount stated on a tax credit certificate issued in accordance with Section
625 53E-7-407.
626 (2) (a) A claimant, estate, or trust may carry forward for the next three taxable years the
627 amount of the tax credit that exceeds the claimant's, estate's, or trust's tax liability for the
628 taxable year.
629 (b) A claimant, estate, or trust may not carry back the amount of the tax credit that
630 exceeds the claimant's, estate's, or trust's tax liability for the taxable year.
631 Section 13. Effective date.
632 (1) Except as provided in Subsection (2), this bill takes effect on January 1, 2019.
633 (2) The amendments to Sections 59-7-109 and 59-10-1018 and the enactment of
634 Sections 59-7-623 and 59-10-1041 take effect for a taxable year beginning on or after January
635 1, 2019.
Legislative Review Note
Office of Legislative Research and General Counsel