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 ▸ defines terms;
14 ▸ creates the Special Needs Opportunity Scholarship Program (program);
15 ▸ establishes requirements for a scholarship recipient and a private school that accepts
16 scholarship money;
17 ▸ requires the State Board of Education to oversee the program, including selection of
18 a scholarship granting organization;
19 ▸ establishes the duties of a scholarship granting organization, including:
20 • accepting program donations;
21 • awarding scholarships; and
22 • issuing tax credit certificates;
23 ▸ creates a nonrefundable corporate income tax credit and a nonrefundable individual
24 income tax credit for certain program donations;
25 ▸ prohibits a taxpayer from claiming more than one state income tax benefit from
26 making the donation; and
27 ▸ makes technical changes.
28 Money Appropriated in this Bill:
30 Other Special Clauses:
31 This bill provides a special effective date.
32 This bill provides a coordination clause.
33 Utah Code Sections Affected:
35 53-10-108, as last amended by Laws of Utah 2019, Chapters 136, 192, and 404
36 53E-1-202, as enacted by Laws of Utah 2019, Chapter 324 and last amended by
37 Coordination Clause, Laws of Utah 2019, Chapter 223
38 53E-8-403, as last amended by Laws of Utah 2019, Chapter 314
39 53F-4-303, as last amended by Laws of Utah 2019, Chapter 186
40 59-7-109, as last amended by Laws of Utah 1995, Chapter 311
42 53E-7-401, Utah Code Annotated 1953
43 53E-7-402, Utah Code Annotated 1953
44 53E-7-403, Utah Code Annotated 1953
45 53E-7-404, Utah Code Annotated 1953
46 53E-7-405, Utah Code Annotated 1953
47 53E-7-406, Utah Code Annotated 1953
48 53E-7-407, Utah Code Annotated 1953
49 59-7-625, Utah Code Annotated 1953
50 59-10-1041, Utah Code Annotated 1953
51 Utah Code Sections Affected by Coordination Clause:
52 53E-1-202, as enacted by Laws of Utah 2019, Chapter 324 and last amended by
53 Coordination Clause, Laws of Utah 2019, Chapter 223
55 Be it enacted by the Legislature of the state of Utah:
56 Section 1. Section 53-10-108 is amended to read:
57 53-10-108. Restrictions on access, use, and contents of division records -- Limited
58 use of records for employment purposes -- Challenging accuracy of records -- Usage fees
59 -- Missing children records -- Penalty for misuse of records.
60 (1) As used in this section:
61 (a) "FBI Rap Back System" means the rap back system maintained by the Federal
62 Bureau of Investigation.
63 (b) "Rap back system" means a system that enables authorized entities to receive
64 ongoing status notifications of any criminal history reported on individuals whose fingerprints
65 are registered in the system.
66 (c) "WIN Database" means the Western Identification Network Database that consists
67 of eight western states sharing one electronic fingerprint database.
68 (2) Dissemination of information from a criminal history record, including information
69 obtained from a fingerprint background check, name check, warrant of arrest information, or
70 information from division files, is limited to:
71 (a) criminal justice agencies for purposes of administration of criminal justice and for
72 employment screening by criminal justice agencies;
73 (b) (i) agencies or individuals pursuant to a specific agreement with a criminal justice
74 agency to provide services required for the administration of criminal justice;
75 (ii) the agreement shall specifically authorize access to data, limit the use of the data to
76 purposes for which given, and ensure the security and confidentiality of the data;
77 (c) a qualifying entity for employment background checks for their own employees and
78 persons who have applied for employment with the qualifying entity;
79 (d) noncriminal justice agencies or individuals for any purpose authorized by statute,
80 executive order, court rule, court order, or local ordinance;
81 (e) agencies or individuals for the purpose of obtaining required clearances connected
82 with foreign travel or obtaining citizenship;
83 (f) agencies or individuals for the purpose of a preplacement adoptive study, in
84 accordance with the requirements of Sections 78B-6-128 and 78B-6-130;
85 (g) private security agencies through guidelines established by the commissioner for
86 employment background checks for their own employees and prospective employees;
87 (h) state agencies for the purpose of conducting a background check for the following
89 (i) employees;
90 (ii) applicants for employment;
91 (iii) volunteers; and
92 (iv) contract employees;
93 (i) governor's office for the purpose of conducting a background check on the
94 following individuals:
95 (i) cabinet members;
96 (ii) judicial applicants; and
97 (iii) members of boards, committees, and commissions appointed by the governor;
98 (j) the office of the lieutenant governor for the purpose of conducting a background
99 check on an individual applying to be a notary public under Section 46-1-3.
100 (k) agencies and individuals as the commissioner authorizes for the express purpose of
101 research, evaluative, or statistical activities pursuant to an agreement with a criminal justice
102 agency; [
103 (l) the State Board of Education for employment background checks of individuals in
104 accordance with Section 53E-7-404; and
106 necessary for protection of life and property and for offender identification, apprehension, and
107 prosecution pursuant to an agreement.
108 (3) An agreement under Subsection (2)(k) shall specifically authorize access to data,
109 limit the use of data to research, evaluative, or statistical purposes, preserve the anonymity of
110 individuals to whom the information relates, and ensure the confidentiality and security of the
112 (4) (a) Before requesting information, a qualifying entity under Subsection (2)(c), state
113 agency, or other agency or individual described in Subsections (2)(d) through (j) and (2)(l)
114 shall obtain a signed waiver from the person whose information is requested.
115 (b) The waiver shall notify the signee:
116 (i) that a criminal history background check will be conducted;
117 (ii) who will see the information; and
118 (iii) how the information will be used.
119 (c) A qualifying entity under Subsection (2)(c), state agency, or other agency or
120 individual described in Subsections (2)(d) through (g) that submits a request for a noncriminal
121 justice name based background check of local databases to the bureau shall provide to the
123 (i) personal identifying information for the subject of the background check; and
124 (ii) the fee required by Subsection (15).
125 (d) A qualifying entity under Subsection (2)(c), state agency, or other agency or
126 individual described in Subsections (2)(d) through (g) that submits a request for a WIN
127 database check and a nationwide background check shall provide to the bureau:
128 (i) personal identifying information for the subject of the background check;
129 (ii) a fingerprint card for the subject of the background check; and
130 (iii) the fee required by Subsection (15).
131 (e) Information received by a qualifying entity under Subsection (2)(c), state agency, or
132 other agency or individual described in Subsections (2)(d) through (j) may only be:
133 (i) available to individuals involved in the hiring or background investigation of the job
134 applicant, employee, or notary applicant;
135 (ii) used for the purpose of assisting in making an employment appointment, selection,
136 or promotion decision or for considering a notary applicant under Section 46-1-3; and
137 (iii) used for the purposes disclosed in the waiver signed in accordance with Subsection
139 (f) An individual who disseminates or uses information obtained from the division
140 under Subsections (2)(c) through (j) for purposes other than those specified under Subsection
141 (4)(e), in addition to any penalties provided under this section, is subject to civil liability.
142 (g) A qualifying entity under Subsection (2)(c), state agency, or other agency or
143 individual described in Subsections (2)(d) through (j) that obtains background check
144 information shall provide the subject of the background check an opportunity to:
145 (i) review the information received as provided under Subsection (9); and
146 (ii) respond to any information received.
147 (h) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
148 division may make rules to implement this Subsection (4).
149 (i) The division or its employees are not liable for defamation, invasion of privacy,
150 negligence, or any other claim in connection with the contents of information disseminated
151 under Subsections (2)(c) through (j).
152 (5) (a) Any criminal history record information obtained from division files may be
153 used only for the purposes for which it was provided and may not be further disseminated,
154 except under Subsection (5)(b), (c), or (d).
155 (b) A criminal history provided to an agency pursuant to Subsection (2)(f) may be
156 provided by the agency to the individual who is the subject of the history, another licensed
157 child-placing agency, or the attorney for the adoptive parents for the purpose of facilitating an
159 (c) A criminal history of a defendant provided to a criminal justice agency under
160 Subsection (2)(a) may also be provided by the prosecutor to a defendant's defense counsel,
161 upon request during the discovery process, for the purpose of establishing a defense in a
162 criminal case.
163 (d) A public transit district, as described in Title 17B, Chapter 2a, Part 8, Public
164 Transit District Act, that is under contract with a state agency to provide services may, for the
165 purposes of complying with Subsection 62A-5-103.5(5), provide a criminal history record to
166 the state agency or the agency's designee.
167 (6) The division may not disseminate criminal history record information to qualifying
168 entities under Subsection (2)(c) regarding employment background checks if the information is
169 related to charges:
170 (a) that have been declined for prosecution;
171 (b) that have been dismissed; or
172 (c) regarding which a person has been acquitted.
173 (7) (a) This section does not preclude the use of the division's central computing
174 facilities for the storage and retrieval of criminal history record information.
175 (b) This information shall be stored so it cannot be modified, destroyed, or accessed by
176 unauthorized agencies or individuals.
177 (8) Direct access through remote computer terminals to criminal history record
178 information in the division's files is limited to those agencies authorized by the commissioner
179 under procedures designed to prevent unauthorized access to this information.
180 (9) (a) The commissioner shall establish procedures to allow an individual right of
181 access to review and receive a copy of the individual's criminal history report.
182 (b) A processing fee for the right of access service, including obtaining a copy of the
183 individual's criminal history report under Subsection (9)(a) shall be set in accordance with
184 Section 63J-1-504.
185 (c) (i) The commissioner shall establish procedures for an individual to challenge the
186 completeness and accuracy of criminal history record information contained in the division's
187 computerized criminal history files regarding that individual.
188 (ii) These procedures shall include provisions for amending any information found to
189 be inaccurate or incomplete.
190 (10) The private security agencies as provided in Subsection (2)(g):
191 (a) shall be charged for access; and
192 (b) shall be registered with the division according to rules made by the division under
193 Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
194 (11) Before providing information requested under this section, the division shall give
195 priority to criminal justice agencies needs.
196 (12) (a) It is a class B misdemeanor for a person to knowingly or intentionally access,
197 use, disclose, or disseminate a record created, maintained, or to which access is granted by the
198 division or any information contained in a record created, maintained, or to which access is
199 granted by the division for a purpose prohibited or not permitted by statute, rule, regulation, or
200 policy of a governmental entity.
201 (b) A person who discovers or becomes aware of any unauthorized use of records
202 created or maintained, or to which access is granted by the division shall inform the
203 commissioner and the director of the Utah Bureau of Criminal Identification of the
204 unauthorized use.
205 (13) (a) Subject to Subsection (13)(b), a qualifying entity or an entity described in
206 Subsection (2) may request that the division register fingerprints taken for the purpose of
207 conducting current and future criminal background checks under this section with:
208 (i) the WIN Database rap back system, or any successor system;
209 (ii) the FBI Rap Back System; or
210 (iii) a system maintained by the division.
211 (b) A qualifying entity or an entity described in Subsection (2) may only make a
212 request under Subsection (13)(a) if the entity:
213 (i) has the authority through state or federal statute or federal executive order;
214 (ii) obtains a signed waiver from the individual whose fingerprints are being registered;
216 (iii) establishes a privacy risk mitigation strategy to ensure that the entity only receives
217 notifications for individuals with whom the entity maintains an authorizing relationship.
218 (14) The division is authorized to submit fingerprints to the FBI Rap Back System to
219 be retained in the FBI Rap Back System for the purpose of being searched by future
220 submissions to the FBI Rap Back System, including latent fingerprint searches.
221 (15) (a) The division shall impose fees set in accordance with Section 63J-1-504 for
222 the applicant fingerprint card, name check, and to register fingerprints under Subsection
224 (b) Funds generated under this Subsection (15) shall be deposited into the General
225 Fund as a dedicated credit by the department to cover the costs incurred in providing the
227 (c) The division may collect fees charged by an outside agency for services required
228 under this section.
229 (16) For the purposes of conducting a criminal background check authorized under
230 Subsection (2)(h), (i), or (j), the Department of Human Resource Management, in accordance
231 with Title 67, Chapter 19, Utah State Personnel Management Act, and the governor's office
232 shall have direct access to criminal background information maintained under Title 53, Chapter
233 10, Part 2, Bureau of Criminal Identification.
234 Section 2. Section 53E-1-202 is amended to read:
235 53E-1-202. Reports to and action required of the Public Education
236 Appropriations Subcommittee.
237 (1) In accordance with applicable provisions and Section 68-3-14, the following
238 recurring reports are due to the Public Education Appropriations Subcommittee:
239 (a) the report by the STEM Action Center Board described in Section 9-22-109,
240 including the information described in Section 9-22-113 on the status of the computer science
243 Section 53E-1-203;
244 (c) beginning in 2021, the report described in Section 53E-7-404 by the State Board of
245 Education on the Special Needs Opportunity Scholarship Program; and
247 Effective, Actionable, and Dynamic Education director on research and other activities[
251 (2) (a) The one-time report by the state board regarding cost centers and implementing
252 activity based costing is due to the Public Education Appropriations Subcommittee in
253 accordance with Section 53E-3-520.
254 (b) The occasional report, described in Section 53F-2-502 by the state board on the
255 program evaluation of the dual language immersion program, is due to the Public Education
256 Appropriations Subcommittee and in accordance with Section 68-3-14.
257 (3) In accordance with applicable provisions, the Public Education Appropriations
258 Subcommittee shall complete the following:
259 (a) the evaluation described in Section 53F-2-410 of funding for at-risk students;
260 (b) the reviews of related to basic school programs as described in Section 53F-2-414;
262 (c) if required, the study described in Section 53F-4-304 of scholarship payments.
263 Section 3. Section 53E-7-401 is enacted to read:
266 53E-7-401. Definitions.
267 As used in this part:
268 (1) "Eligible student" means a student who:
269 (a) is eligible to participate in public school, in kindergarten or grades 1 through 12;
270 (b) is a resident of the state;
271 (c) (i) has an IEP;
272 (ii) has an individualized family service plan in accordance with the Individuals with
273 Disabilities Education Act, 20 U.S.C. Sec. 1400 et seq., if entering kindergarten; or
274 (iii) is determined by a multidisciplinary evaluation team to be eligible for services
275 under the Individuals with Disabilities Education Act, Subchapter II, 20 U.S.C. Secs. 1400 to
276 1419; and
277 (d) during the school year for which the student is applying for the scholarship, is not:
278 (i) a scholarship student in the Carson Smith Scholarship Program created in Section
279 53F-4-302; or
280 (ii) a public school student.
281 (2) (a) "Employee" means an individual working in a position in which the individual's
282 salary, wages, pay, or compensation, including as a contractor, is paid from:
283 (i) program donations received by a scholarship granting organization; or
284 (ii) scholarship money allocated to a qualifying school by a scholarship granting
285 organization under Section 53E-7-405.
286 (b) "Employee" does not include an individual who volunteers at the scholarship
287 granting organization or qualifying school.
288 (3) "Officer" means:
289 (a) a member of the board of a scholarship granting organization or qualifying school;
291 (b) the chief administrative officer of a scholarship granting organization or qualifying
293 (4) "Program donations" means donations to the program under Section 53E-7-405.
294 (5) "Qualifying school" means a private school that:
295 (a) provides kindergarten, elementary, or secondary education;
296 (b) is approved by the state board under Section 53F-4-303; and
297 (c) meets the requirements described in Section 53E-7-403.
298 (6) "Relative" means a father, mother, husband, wife, son, daughter, sister, brother,
299 uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law,
300 sister-in-law, son-in-law, or daughter-in-law.
301 (7) "Scholarship" means a grant awarded to an eligible student:
302 (a) by a scholarship granting organization out of program donations; and
303 (b) for the purpose of paying for a scholarship expense.
304 (8) "Scholarship expense" means:
305 (a) tuition, fees, or textbooks for a qualifying school;
306 (b) educational therapy, if the educational therapy is provided by a licensed physician
307 or licensed practitioner, including occupational, behavioral, physical, or speech-language
309 (c) textbooks, curriculum, or other instructional materials, including supplemental
310 materials or associated online instruction required by a curriculum;
311 (d) tuition and fees for an online learning course or program; or
312 (e) fees associated with a state-recognized industry certification exam, or any
313 examination related to college or university admission.
314 (9) "Scholarship granting organization" means an organization that is:
315 (a) qualified as tax exempt under Section 501(c)(3), Internal Revenue Code; and
316 (b) recognized through an agreement with the state board as a scholarship granting
317 organization, as described in Section 53E-7-404.
318 (10) "Special Needs Opportunity Scholarship Program" or "program" means the
319 program established in Section 53E-7-402.
320 (11) "Value of the weighted pupil unit" means the amount established each year in the
321 enacted public education budget that is multiplied by the number of weighted pupil units to
322 yield the funding level for the basic state-supported school program.
323 Section 4. Section 53E-7-402 is enacted to read:
324 53E-7-402. Special Needs Opportunity Scholarship Program.
325 (1) There is established the Special Needs Opportunity Scholarship Program under
326 which a parent may apply to a scholarship granting organization on behalf of the parent's
327 student for a scholarship to help cover the cost of a scholarship expense.
328 (2) A scholarship granting organization shall:
329 (a) award, in accordance with this part, scholarships to eligible students; and
330 (b) determine the amount of a scholarship in accordance with Subsection (3).
331 (3) A scholarship granting organization shall determine a full-year scholarship award to
332 pay for the cost of one or more scholarship expenses in an amount not more than:
333 (a) for an eligible student in grades 1 through 12 with an IEP, the value of the weighted
334 pupil unit multiplied by two;
335 (b) for an eligible student in grades 1 through 12 who does not have an IEP, the value
336 of the weighted pupil unit;
337 (c) for an eligible student in kindergarten with an IEP, the value of the weighted pupil
338 unit; or
339 (d) for an eligible student in kindergarten who does not have an IEP, half the value of
340 the weighted pupil unit.
341 (4) The state board shall prepare and disseminate to a scholarship granting organization
342 for distribution to a parent applying for a scholarship on behalf of a student:
343 (a) information on the program; and
344 (b) information on how a parent may enroll the parent's child in a public school.
345 (5) A scholarship granting organization shall distribute the information described in
346 Subsection (4) to a parent who applies to the scholarship granting organization for a
347 scholarship on behalf of the parent's student.
348 Section 5. Section 53E-7-403 is enacted to read:
349 53E-7-403. Qualifying school requirements.
350 (1) A qualifying school shall:
351 (a) notify a scholarship granting organization of the qualifying school's intention to
352 participate in the program;
353 (b) submit evidence to the scholarship granting organization that the qualifying school
354 has been approved by the state board under Section 53F-4-303; and
355 (c) submit a signed affidavit to the scholarship granting organization that the qualifying
356 school will comply with the requirements of this part.
357 (2) A qualifying school shall comply with 42 U.S.C. Sec. 1981, and meet state and
358 local health and safety laws and codes.
359 (3) Before the beginning of the school year immediately following a school year in
360 which a qualifying school receives scholarship money equal to or more than $100,000, the
361 qualifying school shall file with a scholarship granting organization that allocates scholarship
362 money to the qualifying school:
363 (a) a surety bond payable to the scholarship granting organization in an amount equal
364 to the aggregate amount of scholarship money expected to be received during the school year;
366 (b) financial information that demonstrates the financial viability of the qualifying
367 school, as required by the scholarship granting organization.
368 (4) If a scholarship granting organization determines that a qualifying school has
369 violated a provision of this part, the scholarship granting organization may interrupt
370 disbursement of or withhold scholarship money from the qualifying school.
371 (5) (a) If the state board determines that a qualifying school no longer meets the
372 eligibility requirements described in Section 53F-4-303, the state board may withdraw the state
373 board's approval of the school.
374 (b) A private school that does not have the state board's approval under Section
375 53F-4-303 may not accept scholarship money under this part.
376 (6) A qualifying school shall, when administering an annual assessment required under
377 Section 53F-4-303, ensure that the qualifying school uses a norm-referenced assessment.
378 Section 6. Section 53E-7-404 is enacted to read:
379 53E-7-404. Program administration by the state board.
380 (1) The state board shall administer the program.
381 (2) The state board shall:
382 (a) provide a tax credit certificate form, for use by a scholarship granting organization
383 as described in Section 53E-7-407, that includes:
384 (i) the name, address, and social security number or federal employer identification
385 number of the person that makes a donation under Section 53E-7-405;
386 (ii) the date of the donation;
387 (iii) the amount of the donation;
388 (iv) the amount of the tax credit; and
389 (v) any other relevant information;
390 (b) conduct a financial review or audit of a scholarship granting organization, if the
391 state board receives evidence of fraudulent practice by the scholarship granting organization;
392 (c) conduct a criminal background check on each scholarship granting organization
393 employee and scholarship granting organization officer;
394 (d) establish uniform financial accounting standards for scholarship granting
396 (e) annually calculate the amount of the program donations cap described in Section
397 53E-7-407; and
398 (f) beginning in 2021, in accordance with Section 53E-1-202, annually report to the
399 Public Education Appropriations Subcommittee on the program.
400 (3) (a) In accordance with Subsection (4) and Title 63G, Chapter 6a, Utah Procurement
401 Code, the state board shall issue a request for proposals and enter into at least one agreement
402 with an organization that is qualified as tax exempt under Section 501(c)(3), Internal Revenue
403 Code, to be recognized by the state board as a scholarship granting organization.
404 (b) An organization that responds to a request for proposals described in Subsection
405 (3)(a) shall submit the following information in the organization's response:
406 (i) a copy of the organization's incorporation documents;
407 (ii) a copy of the organization's Internal Revenue Service determination letter
408 qualifying the organization as being tax exempt under Section 501(c)(3), Internal Revenue
410 (iii) a description of the methodology the organization will use to verify that a student
411 is an eligible student under this part; and
412 (iv) a description of the organization's proposed scholarship application process.
413 (4) (a) The state board shall enter into an agreement described in Subsection (3)(a) with
414 one scholarship granting organization on or before January 1, 2021.
415 (b) The state board may enter into an agreement described in Subsection (3)(a) with
416 additional scholarship granting organizations after January 1, 2022, if the state board makes
417 rules regarding how multiple scholarship granting organizations may issue tax credit
418 certificates in accordance with Section 53E-7-407.
419 (c) (i) No later than 10 days after the day on which the state board enters into an
420 agreement with a scholarship granting organization, the state board shall forward the name and
421 contact information of the scholarship granting organization to the State Tax Commission.
422 (ii) If, under Subsection (5)(c)(i), the state board bars a scholarship granting
423 organization from further participation in the program, the state board shall, no later than 10
424 days after the day on which the state board bars the scholarship granting organization, forward
425 the name and contact information of the barred scholarship granting organization to the State
426 Tax Commission.
427 (5) (a) If the state board determines that a scholarship granting organization has
428 violated a provision of this part or state board rule, the state board shall send written notice to
429 the scholarship granting organization explaining the violation and the remedial action required
430 to correct the violation.
431 (b) A scholarship granting organization that receives a notice described in Subsection
432 (5)(a) shall, no later than 60 days after the day on which the scholarship granting organization
433 receives the notice, correct the violation and report the correction to the state board.
434 (c) (i) If a scholarship granting organization that received a notice described in
435 Subsection (5)(a) fails to correct a violation in the time period described in Subsection (5)(b),
436 the state board may bar the scholarship granting organization from further participation in the
438 (ii) A scholarship granting organization may appeal a decision made by the state board
439 under Subsection (5)(c)(i) in accordance with Title 63G, Chapter 4, Administrative Procedures
441 (d) A scholarship granting organization may not accept program donations while the
442 scholarship granting organization:
443 (i) is barred from participating in the program under Subsection (5)(c)(i); or
444 (ii) has an appeal pending under Subsection (5)(c)(ii).
445 (e) A scholarship granting organization that has an appeal pending under Subsection
446 (5)(c)(ii) may continue to administer scholarships from previously donated program donations
447 during the pending appeal.
448 (6) The state board shall provide for a process for a scholarship granting organization
449 to report information as required under Section 53E-7-405.
450 (7) The state board shall make rules in accordance with Title 63G, Chapter 3, Utah
451 Administrative Rulemaking Act, to administer the program, including rules for:
452 (a) a scholarship granting organization's acceptance of program donations;
453 (b) the administration of scholarships to a qualifying school receiving scholarship
454 money from a scholarship granting organization that is barred from participating in the
455 program under Subsection (5)(c)(i);
456 (c) payment of scholarship money to qualifying schools by a scholarship granting
458 (d) granting scholarship awards and disbursing scholarship money for nontuition
459 scholarship expenses by a scholarship granting organization;
460 (e) if an eligible student does not continue in enrollment at a qualifying school:
461 (i) requiring the scholarship granting organization to:
462 (A) notify the state board; and
463 (B) obtain reimbursement of scholarship money from the qualifying school in which
464 the eligible student is no longer enrolled; and
465 (ii) requiring the qualifying school in which the eligible student is no longer enrolled to
466 reimburse scholarship money to the scholarship granting organization; and
467 (f) audit and report requirements as described in Section 53E-7-405.
468 Section 7. Section 53E-7-405 is enacted to read:
469 53E-7-405. Program donations -- Scholarship granting organization
471 (1) A person that makes a donation to a scholarship granting organization to help fund
472 scholarships through the program may be eligible to receive a nonrefundable tax credit as
473 described in Sections 59-7-624 and 59-10-1041.
474 (2) In accordance with Section 53E-7-404, an organization may enter into an
475 agreement with the state board to be a scholarship granting organization.
476 (3) A scholarship granting organization shall:
477 (a) accept program donations;
478 (b) adopt an application process in accordance with Subsection (4);
479 (c) review scholarship applications and determine scholarship awards;
480 (d) allocate scholarship money to a scholarship recipient's parent or, on the parent's
481 behalf, to a qualifying school in which the scholarship recipient is enrolled;
482 (e) adopt a process, with state board approval, that allows a parent to use a scholarship
483 to pay for a nontuition scholarship expense for the scholarship recipient;
484 (f) ensure that:
485 (i) at least 90% of the scholarship granting organization's revenue from program
486 donations is spent on scholarships;
487 (ii) no more than 5% of the scholarship granting organization's revenue from program
488 donations is spent on administration of the program; and
489 (iii) all revenue from program donations' interest or investments is spent on
491 (g) carry forward no more than 40% of the scholarship granting organization's program
492 donations from the state fiscal year in which the scholarship granting organization received the
493 program donations to the following state fiscal year;
494 (h) at the end of a fiscal year, remit to the state treasurer donation amounts greater than
495 the amount described in Subsection (3)(g), who shall deposit the money into the Education
497 (i) prohibit a scholarship granting organization employee or officer from handling,
498 managing, or processing program donations, if, based on a criminal background check
499 conducted by the state board in accordance with Section 53E-7-404, the state board identifies
500 the employee or officer as posing a risk to the appropriate use of program donations;
501 (j) ensure that a scholarship can be transferred during the school year to a different
502 qualifying school that accepts the scholarship recipient;
503 (k) report to the state board on or before June 1 of each year the following information,
504 prepared by a certified public accountant:
505 (i) the name and address of the scholarship granting organization;
506 (ii) the total number and total dollar amount of program donations that the scholarship
507 granting organization received during the previous calendar year;
508 (iii) the total number and total dollar amount of scholarships the scholarship granting
509 organization awarded during the previous calendar year; and
510 (iv) the percentage of first-time scholarship recipients who were enrolled in a public
511 school during the previous school year or who entered kindergarten or a higher grade for the
512 first time in Utah;
513 (l) issue tax credit certificates as described in Section 53E-7-407; and
514 (m) require a parent to notify a scholarship granting organization if the parent's
515 scholarship recipient:
516 (i) receives scholarship money for tuition expenses; and
517 (ii) does not have continuing enrollment and attendance at a qualifying school.
518 (4) (a) An application for a scholarship shall contain an acknowledgment by the
519 applicant's parent that the qualifying school selected by the parent for the applicant to attend
520 using a scholarship is capable of providing the level of disability services required for the
522 (b) A scholarship application form shall contain the following statement:
523 "I acknowledge that (1) A private school may not provide the same level of disability
524 services that are provided in a public school;
525 (2) I will assume full financial responsibility for the education of my scholarship
526 recipient if I accept this scholarship;
527 (3) Acceptance of this scholarship has the same effect as a parental refusal to consent
528 to evaluation or services as described in 24 C.F.R. Sec. 300.300, issued under the Individuals
529 with Disabilities Education Act, 20 U.S.C. Sec. 1400 et seq.; and
530 (4) My child may return to a public school at any time."
531 (c) Upon acceptance of a scholarship, the parent assumes full financial responsibility
532 for the education of the scholarship recipient.
533 (d) Acceptance of a scholarship has the same effect as a parental refusal to consent to
534 evaluation or services as described in 24 C.F.R. Sec. 300.300, issued under the Individuals with
535 Disabilities Education Act, 20 U.S.C. Sec. 1400 et seq.
536 (e) The creation of the program or granting of a scholarship does not:
537 (i) imply that a public school did not provide a free and appropriate public education
538 for a student; or
539 (ii) constitute a waiver or admission by the state.
540 (5) A scholarship granting organization shall demonstrate the scholarship granting
541 organization's financial accountability by annually submitting to the state board a financial
542 information report that:
543 (a) complies with the uniform financial accounting standards described in Section
544 53E-7-404; and
545 (b) is prepared by a certified public accountant.
546 (6) (a) If a scholarship granting organization allocates $500,000 or more in
547 scholarships annually through the program, the scholarship organization shall:
548 (i) contract for an annual audit, conducted by a certified public accountant who is
549 independent from:
550 (A) the scholarship granting organization; and
551 (B) the scholarship granting organization's accounts and records pertaining to program
552 donations; and
553 (ii) in accordance with Subsection (6)(b), report the results of the audit to the state
554 board for review.
555 (b) For the report described in Subsection (6)(a)(ii), the scholarship granting
556 organization shall:
557 (i) include the scholarship granting organization's financial statements in a format that
558 meets generally accepted accounting standards; and
559 (ii) submit the report to the state board no later than 180 days after the last day of a
560 scholarship granting organization's fiscal year.
561 (c) The certified public accountant shall conduct an audit described in Subsection
562 (6)(a)(i) in accordance with generally accepted auditing standards and rules made by the state
564 (d) (i) The state board shall review a report submitted under this section and may
565 request that the scholarship granting organization revise or supplement the report if the report
566 is not in compliance with the provisions of this Subsection (6) or rules adopted by the state
568 (ii) A scholarship granting organization shall provide a revised report or supplement to
569 the report no later than 45 days after the day on which the state board makes a request
570 described in Subsection (6)(d)(i).
571 (7) (a) A scholarship granting organization may not allocate scholarship money to a
572 qualifying school if:
573 (i) the scholarship granting organization determines that the qualifying school
574 intentionally or substantially misrepresented information on overpayment;
575 (ii) the qualifying school fails to refund an overpayment in a timely manner; or
576 (iii) the qualifying school routinely fails to provide scholarship recipients with
577 promised educational goods or services.
578 (b) A scholarship granting organization shall notify a scholarship recipient if the
579 scholarship granting organization stops allocation of the recipient's scholarship money to a
580 qualifying school under Subsection (7)(a).
581 (8) If a scholarship recipient transfers to another qualifying school during the school
582 year, the scholarship granting organization may prorate scholarship money between the
583 qualifying schools according to the time the scholarship recipient spends at each school.
584 (9) A scholarship granting organization may not:
585 (a) award a scholarship to a relative of the scholarship granting organization's officer or
586 employee; or
587 (b) allocate scholarship money to a qualifying school at which the scholarship recipient
588 has a relative who is an officer or an employee of the qualifying school.
589 Section 8. Section 53E-7-406 is enacted to read:
590 53E-7-406. Private school regulation -- Student records.
591 (1) Nothing in this part:
592 (a) grants additional authority to any state agency or LEA to regulate private schools
593 except as expressly described in this part; or
594 (b) expands the regulatory authority of the state, a state office holder, or a local school
595 district to impose any additional regulation of a qualifying school beyond those necessary to
596 enforce the requirements of the program.
597 (2) A qualifying school shall be given the maximum freedom to provide for the
598 educational needs of a scholarship recipient who attends the qualifying school without
599 unlawful governmental control.
600 (3) Except as provided in Section 53E-7-403, a qualifying school may not be required
601 to alter the qualifying school's creed, practices, admission policy, or curriculum in order to
602 accept scholarship money.
603 (4) A local education agency or school in a local education agency in which a
604 scholarship recipient was previously enrolled shall provide to a qualifying school in which the
605 scholarship recipient is currently enrolled a copy of all requested school records relating to the
606 scholarship recipient, subject to:
607 (a) Title 53E, Chapter 9, Student Privacy and Data Protection; and
608 (b) Family Educational Rights and Privacy Act, 20 U.S.C. Sec. 1232g.
609 Section 9. Section 53E-7-407 is enacted to read:
610 53E-7-407. Tax credit certificates issued by a scholarship granting organization.
611 (1) In accordance with this section and subject to Subsection (3), a scholarship granting
612 organization shall provide a tax credit certificate to a person that makes a donation as described
613 in Section 53E-7-405.
614 (2) (a) The scholarship granting organization shall issue a tax credit certificate
615 described in Subsection (1) on the tax credit certificate form described in Section 53E-7-404.
616 (b) The scholarship granting organization shall provide the information from a
617 completed tax credit certificate to the State Tax Commission electronically and in a manner
618 prescribed by the State Tax Commission.
619 (c) A scholarship granting organization shall issue a tax credit certificate within 30
620 days after the day on which a person makes a donation to the program.
621 (3) (a) A scholarship granting organization may not issue a tax credit certificate for a
622 calendar year if issuing the tax credit certificate will cause the total amount of the tax credit
623 certificates issued for the calendar year to exceed the program donations cap amount described
624 in Subsection (4).
625 (b) Before accepting a donation to the program from a person, the scholarship granting
626 organization shall provide the person with notice:
627 (i) that the donation may not be eligible for a tax credit;
628 (ii) of the process described in Subsection (3)(c); and
629 (iii) of the total amount of tax credit certificates that the scholarship granting
630 organization has issued for the calendar year.
631 (c) During a calendar year, a scholarship granting organization shall:
632 (i) issue tax credit certificates in the order that the scholarship granting organization
633 received a corresponding donation; and
634 (ii) track the total amount of program donations received during the year as
635 corresponding tax credit certificates are issued.
636 (d) If a scholarship granting organization accepts a donation that, when added to the
637 current total amount of program donations received that year, will exceed the program
638 donations cap described in Subsection (4), the scholarship granting organization shall issue a
639 tax credit certificate in the amount that is the difference between the program donations cap
640 and the total amount of program donations received before the donation was received.
641 (4) (a) The program donations cap for the 2021 calendar year is $6,000,000.
642 (b) For a calendar year after 2021, the state board shall calculate the program donations
643 cap as follows:
644 (i) if the total program donations for the previous calendar year exceed 90% of the cap
645 amount for that calendar year, the cap for the current calendar year is the cap amount for the
646 previous calendar year increased by 10%; or
647 (ii) if the total program donations for the previous calendar year did not exceed 90% of
648 the cap amount for that calendar year, the cap for the current calendar year is the same as the
649 cap amount for the previous calendar year.
650 (5) A person that receives a tax credit certificate in accordance with this section shall
651 retain the certificate for the same time period a person is required to keep books and records
652 under Section 59-1-1406.
653 Section 10. Section 53E-8-403 is amended to read:
654 53E-8-403. Educational programs.
655 (1) The Utah Schools for the Deaf and the Blind shall provide an educational program
656 for a student:
657 (a) based on assessments of the student's abilities; and
658 (b) in accordance with the student's IEP or Section 504 accommodation plan.
659 (2) If a student's ability to access the core curriculum is impaired primarily due to a
660 severe sensory loss and requires intensive sensory-based instruction or services, the Utah
661 Schools for the Deaf and the Blind shall provide an educational program that will enable the
662 student, with accommodations, to access the core curriculum.
663 (3) The Utah Schools for the Deaf and the Blind shall provide instruction in Braille to
664 students who are blind [
666 Section 11. Section 53F-4-303 is amended to read:
667 53F-4-303. Eligible private schools.
668 (1) As used in this section, "scholarship student" means:
669 (a) a student who receives a scholarship under this part; or
670 (b) an eligible student who receives a scholarship under Title 53E, Chapter 7, Part 4,
671 Special Needs Opportunity Scholarship Program.
673 (a) have a physical location in Utah where the scholarship students attend classes and
674 have direct contact with the school's teachers;
675 (b) (i) (A) obtain an audit and report from a licensed independent certified public
676 accountant that conforms with the following requirements:
677 (I) the audit shall be performed in accordance with generally accepted auditing
679 (II) the financial statements shall be presented in accordance with generally accepted
680 accounting principles; and
681 (III) the audited financial statements shall be as of a period within the last 12 months;
683 (B) contract with an independent licensed certified public accountant to conduct an
684 Agreed Upon Procedures engagement, as adopted by the state board; and
685 (ii) submit the audit report or report of the agreed upon procedure to the state board
686 when the private school applies to accept scholarship students;
687 (c) comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d;
688 (d) meet state and local health and safety laws and codes;
689 (e) provide a written disclosure to the parent of each prospective student, before the
690 student is enrolled of:
691 (i) the special education services that will be provided to the student, including the cost
692 of those services;
693 (ii) tuition costs;
694 (iii) additional fees a parent will be required to pay during the school year; and
695 (iv) the skill or grade level of the curriculum that the student will be participating in;
696 (f) (i) administer an annual assessment of each scholarship student's academic
698 (ii) report the results of the assessment described in Subsection [
699 the student's parent; and
700 (iii) for a student who receives a scholarship under this part, make the results available
701 to the assessment team evaluating the student pursuant to Subsection 53F-4-302(6);
702 (g) employ or contract with teachers who:
703 (i) hold baccalaureate or higher degrees;
704 (ii) have at least three years of teaching experience in public or private schools; or
705 (iii) have the necessary special skills, knowledge, or expertise that qualifies them to
706 provide instruction:
707 (A) in the subjects taught; and
708 (B) to the special needs students taught;
709 (h) maintain documentation demonstrating that teachers at the private school meet the
710 qualifications described in Subsection [
711 (i) require the following individuals to submit to a nationwide, fingerprint-based
712 criminal background check and ongoing monitoring, in accordance with Section 53G-11-402,
713 as a condition for employment or appointment , as authorized by the Adam Walsh Child
714 Protection and Safety Act of 2006, Pub. L. No. 109-248 :
715 (i) an employee who does not hold a current Utah educator license issued by the state
716 board under Title 53E, Chapter 6, Education Professional Licensure;
717 (ii) a contract employee; and
718 (iii) a volunteer who is given significant unsupervised access to a student in connection
719 with the volunteer's assignment; and
720 (j) provide to parents the relevant credentials of the teachers who will be teaching their
723 (a) the private school requires a student to sign a contract waiving the student's rights
724 to transfer to another eligible private school during the school year;
725 (b) the audit report submitted under Subsection [
726 explanatory paragraph; or
727 (c) the report of the agreed upon procedure submitted under Subsection [
728 shows that the private school does not have adequate working capital to maintain operations for
729 the first full year, as determined under Subsection [
732 scholarship students.
734 application to the state board by May 1 of the school year preceding the school year in which it
735 intends to enroll scholarship students.
737 (a) approve a private school's application to enroll scholarship students, if the private
738 school meets the eligibility requirements of this section; and
739 (b) make available to the public a list of the eligible private schools.
741 new application to the state board and demonstrate that it continues to meet the eligibility
742 requirements of this section.
743 Section 12. Section 59-7-109 is amended to read:
744 59-7-109. Charitable contributions.
745 (1) Except as provided in [
746 for charitable contributions made within the taxable year to organizations described in Section
747 170(c), Internal Revenue Code.
748 (2) (a) The aggregate amount of charitable contributions deductible under this section
749 may not exceed 10% of the taxpayer's apportionable income.
750 (b) The limitation imposed in this [
751 combined basis in a combined report.
752 (3) Any charitable contribution made in a taxable year [
754 be carried over to the five succeeding taxable years in the same manner as allowed under
755 federal law.
756 (4) A taxpayer may not subtract a charitable contribution that meets the requirements
757 of this section to the extent that the taxpayer claims a tax credit under Section 59-7-625 for the
758 same charitable contribution.
759 Section 13. Section 59-7-625 is enacted to read:
760 59-7-625. Nonrefundable tax credit for donation to Special Needs Opportunity
761 Scholarship Program.
762 (1) A taxpayer that makes a donation to the Special Needs Opportunity Scholarship
763 Program established in Section 53E-7-402 may claim a nonrefundable tax credit equal to 100%
764 of the amount stated on a tax credit certificate issued in accordance with Section 53E-7-407.
765 (2) (a) If the amount of a tax credit listed on the tax credit certificate exceeds a
766 taxpayer's liability under this chapter for a taxable year, the taxpayer may carry forward the
767 amount of the tax credit exceeding the liability for a period that does not exceed the next three
768 taxable years.
769 (b) A taxpayer may not carry back the amount of the tax credit that exceeds the
770 taxpayer's tax liability for the taxable year.
771 Section 14. Section 59-10-1041 is enacted to read:
772 59-10-1041. Nonrefundable tax credit for donation to Special Needs Opportunity
773 Scholarship Program.
774 (1) Except as provided in Subsection (3), a claimant, estate, or trust that makes a
775 donation to the Special Needs Opportunity Scholarship Program established in Section
776 53E-7-402, may claim a nonrefundable tax credit equal to 100% of the amount stated on a tax
777 credit certificate issued in accordance with Section 53E-7-407.
778 (2) (a) If the amount of a tax credit listed on the tax credit certificate exceeds a
779 claimant's, estate's, or trust's tax liability under this chapter for a taxable year, the claimant,
780 estate, or trust may carry forward the amount of the tax credit exceeding the liability for a
781 period that does not exceed the next three taxable years.
782 (b) A claimant, estate, or trust may not carry back the amount of the tax credit that
783 exceeds the claimant's, estate's, or trust's tax liability for the taxable year.
784 (3) A claimant, estate, or trust may not claim a credit described in Subsection (1) to the
785 extent the claimant, estate, or trust claims a donation described in Subsection (1) as an itemized
786 deduction on the claimant's, estate's, or trust's federal individual income tax return for that
787 taxable year.
788 Section 15. Effective date.
789 (1) Except as provided in Subsection (2), this bill takes effect on January 1, 2021.
790 (2) The amendments to Section 59-7-109 and the enactment of Sections 59-7-625 and
791 59-10-1041 take effect for a taxable year beginning on or after January 1, 2021.
792 Section 16. Coordinating H.B. 332 with S.B. 72 -- Superseding technical and
793 substantive amendments.
794 If this H.B. 332 and S.B. 72, Revisor's Technical Corrections to Utah Code, both pass
795 and become law, it is the intent of the Legislature that the amendments to Section 53E-1-202 in
796 H.B. 332 supersede the amendments to Section 53E-1-202 in S.B. 72, when the Office of
797 Legislative Research and General Counsel prepares the Utah Code database for publication.