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7 LONG TITLE
8 General Description:
9 This bill amends provisions regarding the Utah Fits All Scholarship Program.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ clarifies that a student may not receive education services funded through the Utah
14 Fits All Scholarship Program and the Statewide Online Education Program;
15 ▸ provides for the inclusion of children of military service members;
16 ▸ allows a foster parent who has initiated a process to adopt the foster child to apply
17 for a scholarship account;
18 ▸ clarifies the use of scholarship funds to pay expenses to a qualifying provider
19 instead of an individual, including that parents are not eligible service providers;
20 ▸ allows the Utah State Tax Commission to provide certain income information to the
21 program manager in certain circumstances;
22 ▸ amends a provision regarding an appeal process, shifting the requirement from the
23 State Board of Education to the program manager with the involvement of parents;
24 ▸ amends provisions regarding local education agency participation by removing dual
25 enrollment proration and establishing local education agency eligibility to serve
26 home-based scholarship students;
27 ▸ moves a requirement to analyze cost effectiveness from the State Board of
28 Education to the state auditor; and
29 ▸ makes technical and conforming changes.
30 Money Appropriated in this Bill:
31 None
32 Other Special Clauses:
33 None
34 Utah Code Sections Affected:
35 AMENDS:
36 53F-4-501, as last amended by Laws of Utah 2023, Chapters 226, 368
37 53F-6-401, as enacted by Laws of Utah 2023, Chapter 1
38 53F-6-402, as enacted by Laws of Utah 2023, Chapter 1
39 53F-6-404, as enacted by Laws of Utah 2023, Chapter 1
40 53F-6-405, as enacted by Laws of Utah 2023, Chapter 1
41 53F-6-408, as enacted by Laws of Utah 2023, Chapter 1
42 53F-6-409, as enacted by Laws of Utah 2023, Chapter 1
43 53F-6-412, as enacted by Laws of Utah 2023, Chapter 1
44 59-1-403, as last amended by Laws of Utah 2023, Chapters 21, 52, 86, 259, and 329
45 67-3-1, as last amended by Laws of Utah 2023, Chapters 16, 330, 353, and 480
46
47 Be it enacted by the Legislature of the state of Utah:
48 Section 1. Section 53F-4-501 is amended to read:
49 53F-4-501. Definitions.
50 As used in this part:
51 (1) "Authorized online course provider" means the entities listed in Subsection
52 53F-4-504(1).
53 (2) (a) "Certified online course provider" means a provider that the state board
54 approves to offer courses through the Statewide Online Education Program.
55 (b) "Certified online course provider" does not include an entity described in
56 Subsections 53F-4-504(1)(a) through (c).
57 (3) "Credit" means credit for a high school course, or the equivalent for a middle
58 school course, as determined by the state board.
59 (4) (a) "Eligible student" means a student:
60 [
61 [
62 [
63 [
64 (b) "Eligible student" does not include a scholarship student as defined in Section
65 53F-6-401.
66 (5) "High school" means grade 9, 10, 11, or 12.
67 (6) "Middle school" means, only for purposes of student eligibility to participate in the
68 Statewide Online Education Program, grade 6, 7, or 8.
69 (7) "Online course" means a course of instruction offered by the Statewide Online
70 Education Program through the use of digital technology, regardless of whether the student
71 participates in the course at home, at school, at another location, or any combination of these.
72 (8) "Plan for college and career readiness" means the same as that term is defined in
73 Section 53E-2-304.
74 (9) "Primary LEA of enrollment" means the LEA in which an eligible student is
75 enrolled for courses other than online courses offered through the Statewide Online Education
76 Program.
77 (10) "Released-time" means a period of time during the regular school day a student is
78 excused from school at the request of the student's parent pursuant to rules of the state board.
79 Section 2. Section 53F-6-401 is amended to read:
80 53F-6-401. Definitions.
81 As used in this part:
82 (1) "Eligible student" means a student:
83 (a) who is eligible to participate in public school, in kindergarten, or grades 1 through
84 12;
85 (b) who is a resident of the state, including a child of a military service member, as that
86 term is defined in Section 53B-8-102;
87 (c) who, during the school year for which the student is applying for a scholarship
88 account:
89 (i) does not receive a scholarship under:
90 (A) the Carson Smith Scholarship Program established in Section 53F-4-302; or
91 (B) the Special Needs Opportunity Scholarship Program established in Section
92 53E-7-402; and
93 (ii) [
94
95 (A) an LEA; or
96 (B) the Statewide Online Education Program to participate in a course with funding
97 provided under Title 53F, Chapter 4, Part 5, Statewide Online Education Program, which does
98 not include participation in a course by an entity as described in Section 53F-6-409(7);
99 (d) whose eligibility is not suspended or disqualified under Section 53F-6-401; and
100 [
101 Subsection 53F-6-402(3)(d).
102 (2) "Federal poverty level" means the United States poverty level as defined by the
103 most recently revised poverty income guidelines published by the United States Department of
104 Health and Human Services in the Federal Register.
105 (3) (a) "Home-based scholarship student" means a student who:
106 (i) is eligible to participate in public school, in kindergarten or grades 1 through 12;
107 (ii) is excused from enrollment in an LEA in accordance with Section 53G-6-204 to
108 attend a home school; and
109 (iii) receives a benefit of scholarship funds.
110 (b) "Home-based scholarship student" does not mean a home school student who does
111 not receive a scholarship under the program.
112 (4) "Parent" means:
113 (a) the same as that term is defined in Section 53E-1-102; and
114 (b) a foster parent who has initiated a process to adopt the foster child.
115 (5) "Program manager" means an organization that:
116 (a) is qualified as tax exempt under Section 501(c)(3), Internal Revenue Code;
117 (b) is not affiliated with any international organization;
118 (c) does not harvest data for the purpose of reproducing or distributing the data to other
119 entities;
120 (d) has no involvement in guiding or directing any curriculum or curriculum standards;
121 (e) does not manage or otherwise administer a scholarship under:
122 (i) the Carson Smith Scholarship Program established in Section 53F-4-302; or
123 (ii) the Special Needs Opportunity Scholarship Program established in Section
124 53E-7-402; and
125 (f) an agreement with the state board recognizes as a program manager, in accordance
126 with this part.
127 [
128 program manager in a position in which the individual's salary, wages, pay, or compensation,
129 including as a contractor, is paid from scholarship funds.
130 (b) "Program manager employee" does not include:
131 (i) an individual who volunteers for the program manager or for a qualifying provider;
132 (ii) an individual who works for a qualifying provider; or
133 (iii) a qualifying provider.
134 [
135 (a) a member of the board of a program manager; or
136 (b) the chief administrative officer of a program manager.
137 [
138
139
140 [
141 Section 53F-6-408; or
142 [
143 with Section 53F-6-409.
144 (b) "Qualifying provider" does not include:
145 (i) a parent of a home-based scholarship student or a home school student solely in
146 relation to the parent's child; or
147 (ii) any other individual that does not meet the requirements described in Subsection
148 (8)(a).
149 [
150 brother, uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law,
151 sister-in-law, son-in-law, or daughter-in-law.
152 [
153 allocates funds for the payment of approved scholarship expenses in accordance with this part.
154 [
155 that a parent or scholarship student incurs in the education of the scholarship student for a
156 service or goods that a qualifying provider provides, including:
157 (a) tuition and fees of a qualifying provider;
158 (b) fees and instructional materials at a technical college;
159 (c) tutoring services;
160 (d) fees for after-school or summer education programs;
161 (e) textbooks, curricula, or other instructional materials, including any supplemental
162 materials or associated online instruction that a curriculum or a qualifying provider
163 recommends;
164 (f) educational software and applications;
165 (g) supplies or other equipment related to a scholarship student's educational needs;
166 (h) computer hardware or other technological devices that are intended primarily for a
167 scholarship student's educational needs;
168 (i) fees for the following examinations, or for a preparation course for the following
169 examinations, that the program manager approves:
170 (i) a national norm-referenced or standardized assessment described in Section
171 53F-6-410, an advanced placement examination, or another similar assessment;
172 (ii) a state-recognized industry certification examination; and
173 (iii) an examination related to college or university admission;
174 (j) educational services for students with disabilities from a licensed or accredited
175 practitioner or provider, including occupational, behavioral, physical, audiology, or
176 speech-language therapies;
177 (k) contracted services that the program manager approves and that an LEA provides,
178 including individual classes, after-school tutoring services, transportation, or fees or costs
179 associated with participation in extracurricular activities;
180 (l) ride fees or fares for a fee-for-service transportation provider to transport the
181 scholarship student to and from a qualifying provider, not to exceed $750 in a given school
182 year;
183 (m) expenses related to extracurricular activities, field trips, educational supplements,
184 and other educational experiences; or
185 (n) any other expense for a good or service that:
186 (i) a parent or scholarship student incurs in the education of the scholarship student;
187 and
188 (ii) the program manager approves, in accordance with Subsection (4)(d).
189 [
190 (a) funds that the Legislature appropriates for the program; and
191 (b) interest that scholarship funds accrue.
192 [
193 scholarship student, for whom the program manager establishes and maintains a scholarship
194 account in accordance with this part.
195 (b) "Scholarship student" does not include a home school student who does not receive
196 a scholarship award under the program.
197 [
198 program established in Section 53F-6-402.
199 Section 3. Section 53F-6-402 is amended to read:
200 53F-6-402. Utah Fits All Scholarship Program -- Scholarship account application
201 -- Scholarship expenses -- Program information.
202 (1) There is established the Utah Fits All Scholarship Program under which, beginning
203 March 1, 2024, a parent may apply to a program manager on behalf of the parent's student to
204 establish and maintain a scholarship account to cover the cost of a scholarship expense.
205 (2) (a) The program manager shall establish and maintain, in accordance with this part,
206 scholarship accounts for eligible students.
207 (b) The program manager shall:
208 (i) determine that a student meets the requirements to be an eligible student; and
209 (ii) subject to Subsection (2)(c), each year the student is an eligible student, maintain a
210 scholarship account for the scholarship student to pay for the cost of one or more scholarship
211 expenses that the student or student's parent incurs in the student's education.
212 (c) [
213 legislative appropriations, a scholarship student is eligible for no more than:
214 (i) for the 2024-2025 school year, $8,000; and
215 (ii) for each school year following the 2024-2025 school year, the maximum allowed
216 amount under this Subsection (2)(c) in the previous year plus a percentage increase that is
217 equal to the five-year rolling average inflationary factor described in Section 53F-2-405.
218 [
219
220
221
222 (3) (a) A program manager shall establish a scholarship account on behalf of an
223 eligible student who submits a timely application, unless the number of applications exceeds
224 available scholarship funds for the school year.
225 (b) If the number of applications exceeds the available scholarship funds for a school
226 year, the program manager shall select students on a random basis, except as provided in
227 Subsection (6).
228 (c) An eligible student or a public education student shall submit an application for an
229 initial scholarship or renewal for each school year that the student intends to receive
230 scholarship funds.
231 (d) (i) To maintain eligibility, a scholarship student or the scholarship student's parent
232 shall annually complete and deliver to the program manager a portfolio describing the
233 scholarship student's educational opportunities and achievements under the program for the
234 given year.
235 (ii) The program manager may not disclose the content of a given scholarship student's
236 portfolio except to the scholarship student's parent.
237 (4) (a) An application for a scholarship account shall contain an acknowledgment by
238 the student's parent that the qualifying provider selected by the parent for the student's
239 enrollment or engagement is capable of providing education services for the student.
240 (b) A scholarship account application form shall contain the following statement:
241 "I acknowledge that:
242 [
243 are provided in a public school;
244 [
245 recipient if I agree to this scholarship account;
246 [
247 refusal to consent to services as described in 34 C.F.R. Sec. 300.300, issued under the
248 Individuals with Disabilities Education Act, 20 U.S.C. Sec. 1400 et seq.; and
249 [
250 (c) Upon agreeing to establish a scholarship account, the parent assumes full financial
251 responsibility for the education of the scholarship student, including the balance of any expense
252 incurred at a qualifying provider or for goods that are not paid for by the scholarship student's
253 scholarship account.
254 (d) Agreeing to establish a scholarship account has the same effect as a parental refusal
255 to consent to services as described in 34 C.F.R. Sec. 300.300, issued under the Individuals with
256 Disabilities Education Act, 20 U.S.C. Sec. 1400 et seq.
257 (e) The creation of the program or establishment of a scholarship account on behalf of
258 a student does not:
259 (i) imply that a public school did not provide a free and appropriate public education
260 for a student; or
261 (ii) constitute a waiver or admission by the state.
262 (5) A program manager may not charge a scholarship account application fee.
263 (6) (a) A program manager shall give an enrollment preference based on the following
264 order of preference:
265 [
266 year;
267 [
268 [
269 [
270 [
271 [
272 account; or
273 [
274 school year for which the sibling is applying for a scholarship account; and
275 [
276 [
277 [
278 (b) The State Tax Commission may, upon request, provide state individual income tax
279 information to the program manager for income verification purposes regarding a given
280 individual if:
281 (i) the individual voluntarily provides the individual's social security number to the
282 program manager; and
283 (ii) consents in writing to the sharing of state individual income tax information solely
284 for income verification purposes.
285 (c) In addition to the tax information described in Subsection (6)(b), the program
286 manager shall accept the following for income verification:
287 (i) a federal form W-2;
288 (ii) a wage statement from an employer; and
289 (iii) other methods or documents that the program manager identifies.
290 (7) (a) Subject to Subsections (7)(b) through (e), a parent may use a scholarship
291 account to pay for a scholarship expense from a qualifying provider that a parent or scholarship
292 student incurs in the education of the scholarship student.
293 (b) A scholarship student or the scholarship student's parent may not use a scholarship
294 account for an expense that the student or parent does not incur in the education of the
295 scholarship student, including:
296 (i) a rehabilitation program that is not primarily designed for an educational purpose;
297 or
298 (ii) a travel expense other than a transportation expense described in Section
299 53F-6-401.
300 (c) The program manager may not:
301 (i) approve a scholarship expense for a service that a qualifying provider provides
302 unless the program manager determines that the scholarship student or the scholarship student's
303 parent incurred the expense in the education of the scholarship student; or
304 (ii) reimburse [
305 not a qualifying provider provides unless:
306 (A) the parent or scholarship student submits a receipt that shows the cost and type of
307 service or good and the name of provider; [
308 (B) the expense would have qualified as a scholarship expense if a qualifying provider
309 provided the good or service;
310 (C) the provider of the good or service is not the parent of the student who is a
311 home-based scholarship student solely in relation to the parent's child; and
312 [
313 incurred the expense in the education of the scholarship student.
314 (d) The parent of a scholarship student may not receive scholarship funds as payment
315 for the parent's time spent educating the parent's child.
316 (e) Except for cases in which a scholarship student or the scholarship student's parent is
317 convicted of fraud in relation to scholarship funds, if a qualifying provider, scholarship student,
318 or scholarship student's parent repays an expenditure from a scholarship account for an expense
319 that is not approved under this Subsection (7), the program manager shall credit the repaid
320 amount back to the scholarship account balance within 30 days after the day on which the
321 program manager receives the repayment.
322 (8) Notwithstanding any other provision of law, funds that the program manager
323 disburses under this part to a scholarship account on behalf of a scholarship student do not
324 constitute state taxable income to the parent of the scholarship student.
325 (9) The program manager shall prepare and disseminate information on the program to
326 a parent applying for a scholarship account on behalf of a student, including the information
327 that the program manager provides in accordance with Section 53F-6-405.
328 (10) On or before September 1, 2023, and as frequently as necessary to maintain the
329 information, the state board shall provide information on the state board's website, including:
330 (a) scholarship account information;
331 (b) information on the program manager, including the program manager's contact
332 information; and
333 (c) an overview of the program.
334 Section 4. Section 53F-6-404 is amended to read:
335 53F-6-404. State board procurement and review of program manager -- Failure
336 to comply.
337 (1) (a) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the state
338 board shall issue a request for proposals, on or before June 15, 2023, and enter an agreement
339 with no more than one organization that qualifies as tax exempt under Section 501(c)(3),
340 Internal Revenue Code, for the state board to recognize as the program manager, on or before
341 September 1, 2023.
342 (b) An organization that responds to a request for proposals described in Subsection
343 (1)(a) shall submit the following information in the organization's response:
344 (i) a copy of the organization's incorporation documents;
345 (ii) a copy of the organization's Internal Revenue Service determination letter
346 qualifying the organization as being tax exempt under Section 501(c)(3), Internal Revenue
347 Code;
348 (iii) a description of the methodology the organization will use to verify a student's
349 eligibility under this part;
350 (iv) a description of the organization's proposed scholarship account application
351 process; and
352 (v) an affidavit or other evidence that the organization:
353 (A) is not affiliated with any international organization;
354 (B) does not harvest data for the purpose of reproducing or distributing the data to
355 another entity; and
356 (C) has no involvement in guiding or directing any curriculum standards.
357 (c) The state board shall ensure that the agreement described in Subsection (1)(a):
358 (i) ensures the efficiency and success of the program; and
359 (ii) does not impose any requirements on the program manager that:
360 (A) are not essential to the basic administration of the program; or
361 (B) create restrictions, directions, or mandates regarding instructional content or
362 curriculum.
363 (2) The state board may regulate and take enforcement action as necessary against a
364 program manager in accordance with the provisions of the state board's agreement with the
365 program manager.
366 (3) (a) If the state board determines that a program manager has violated a provision of
367 this part or a provision of the state board's agreement with the program manager, the state
368 board shall send written notice to the program manager explaining the violation and the
369 remedial action required to correct the violation.
370 (b) A program manager that receives a notice described in Subsection (3)(a) shall, no
371 later than 60 days after the day on which the program manager receives the notice, correct the
372 violation and report the correction to the state board.
373 (c) (i) If a program manager that receives a notice described in Subsection (3)(a) fails
374 to correct a violation in the time period described in Subsection (3)(b), the state board may bar
375 the program manager from further participation in the program.
376 (ii) A program manager may appeal a decision of the state board under Subsection
377 (3)(c)(i) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
378 (d) A program manager may not accept state funds while the program manager:
379 (i) is barred from participating in the program under Subsection (3)(c)(i); or
380 (ii) has an appeal pending under Subsection (3)(c)(ii).
381 (e) A program manager that has an appeal pending under Subsection (3)(c)(ii) may
382 continue to administer scholarship accounts during the pending appeal.
383 (4) The state board shall establish a process for a program manager to report the
384 information the program manager is required to report to the state board under Section
385 53F-6-405.
386 (5) The state board shall make rules in accordance with Title 63G, Chapter 3, Utah
387 Administrative Rulemaking Act, and include provisions in the state board's agreement with the
388 scholarship organization for:
389 (a) subject to Subsection (6), the administration of scholarship accounts and
390 disbursement of scholarship funds if a program manager is barred from participating in the
391 program under Subsection (3)(c)(i); and
392 (b) audit and report requirements as described in Section 53F-6-405.
393 (6) (a) The state board shall include in the rules and provisions described in Subsection
394 (5)(a) measures to ensure that the establishment and maintenance of scholarship accounts and
395 enrollment in the program are not disrupted if the program manager is barred from participating
396 in the program.
397 (b) The state board may, if the program manager is barred from participating in the
398 program, issue a new request for proposals and enter into a new agreement with an alternative
399 program manager in accordance with this section.
400 (7) (a) On or before January 1, 2024, the [
401 (i) [
402
403 parent to appeal any administrative decision of the program manager [
404
405
406 Section 53F-6-405; [
407 (ii) ensure that the body that determines the outcome of internal appeals:
408 (A) includes parents of scholarship students; and
409 (B) makes a determination within 30 days after the day of the appeal;
410 [
411 [
412 (b) If the [
413 the program manager on internal appeal, the program manager may not withhold scholarship
414 funds or application approval for the scholarship student on account of the appealed
415 administrative decision unless as the [
416 allows.
417 (8) The state board may not include a provision in any rule that creates or implies a
418 restriction, direction, or mandate regarding instructional content or curriculum.
419 (9) No later than 10 business days after July 1 of each year, the state board shall
420 disperse to the program manager an amount equal to the funds appropriated for the Utah Fits
421 All Scholarship Program for the given fiscal year.
422 Section 5. Section 53F-6-405 is amended to read:
423 53F-6-405. Program manager duties -- Audit -- Prohibitions.
424 (1) The program manager shall administer the program, including:
425 (a) maintaining an application website that includes information on enrollment,
426 relevant application dates, and dates for notification of acceptance;
427 (b) reviewing applications from and determining if a person is:
428 (i) an eligible school under Section 53F-6-408; or
429 (ii) an eligible service provider under Section 53F-6-409;
430 (c) establishing an application process, including application dates opening before
431 March 1, 2024, in accordance with Section 53F-6-402;
432 (d) reviewing and granting or denying applications for a scholarship account;
433 (e) providing an online portal for the parent of a scholarship student to access the
434 scholarship student's account to facilitate payments to a qualifying provider from the online
435 portal;
436 (f) ensuring that scholarship funds in a scholarship account are readily available to a
437 scholarship student;
438 (g) requiring a parent to notify the program manager if the parent's scholarship student
439 is no longer enrolled in or engaging a service:
440 (i) for which the scholarship student receives scholarship funds; and
441 (ii) that is provided to the scholarship student for an entire school year;
442 (h) obtaining reimbursement of scholarship funds from a qualifying provider that
443 provides the services in which a scholarship student is no longer enrolled or with which the
444 scholarship student is no longer engaged;
445 (i) expending all revenue from interest on scholarship funds or investments on
446 scholarship expenses;
447 (j) each time the program manager makes an administrative decision that is adverse to
448 a scholarship student or the scholarship student's parent, informing the scholarship student and
449 the scholarship student's parent of the opportunity and process to appeal an administrative
450 decision of the program manager [
451 in Section 53F-6-404;
452 (k) maintaining a protected internal waitlist of all eligible students who have applied to
453 the program and are not yet scholarship students, including any student who removed the
454 student's application from the waitlist; and
455 (l) providing aggregate data regarding the number of scholarship students and the
456 number of eligible students on the waitlist described in Subsection (1)(k).
457 (2) The program manager shall:
458 (a) contract with one or more private entities to develop and implement a commercially
459 viable, cost-effective, and parent-friendly system to:
460 (i) establish scholarship accounts;
461 (ii) maximize payment flexibility by allowing:
462 (A) for payment of services to qualifying providers using scholarship funds by
463 electronic or online funds transfer from the online portal; and
464 (B) pre-approval of a reimbursement to a parent for a good that is a scholarship
465 expense; and
466 (iii) allow scholarship students and scholarship student's parents to publicly rate,
467 review, and share information about qualifying providers; [
468 (b) except for a reimbursement authorized under this part, ensuring the use of
469 scholarship funds from the online portal directly to a qualifying provider to pay for scholarship
470 expenses without the availability of withdrawal or other direct access to scholarship funds by
471 an individual; and
472 [
473 cybersecurity, including ensuring compliance with the Family Educational Rights and Privacy
474 Act, 34 C.F.R. Part 99.
475 (3) In advance of the program manager accepting applications in accordance with
476 Section 53F-6-402 and as regularly as information develops, the program manager shall
477 provide information regarding the program by publishing a program handbook online for
478 scholarship applicants, scholarship students, parents, service providers seeking to become
479 qualifying providers, and qualifying providers, that includes information regarding:
480 (a) the policies and processes of the program;
481 (b) approved scholarship expenses and qualifying providers;
482 (c) the responsibilities of parents regarding the program and scholarship funds;
483 (d) the duties of the program manager;
484 (e) the opportunity and process to appeal an administrative decision of the program
485 manager [
486 and
487 (f) the role of any private financial management firms or other private organizations
488 with which the program manager may contract to administer any aspect of the program.
489 (4) To ensure the fiscal security and compliance of the program, the program manager
490 shall:
491 (a) prohibit a program manager employee or program manager officer from handling,
492 managing, or processing scholarship funds, if, based on a criminal background check that the
493 state board conducts in accordance with Section 53F-6-407, the state board identifies the
494 program manager employee or program manager officer as posing a risk to the appropriate use
495 of scholarship funds;
496 (b) establish procedures to ensure a fair process to:
497 (i) suspend scholarship student's eligibility for the program in the event of the
498 scholarship student's or scholarship student's parent's:
499 (A) intentional or substantial misuse of scholarship funds; or
500 (B) violation of this part or the terms of the program; and
501 (ii) if the program manager obtains evidence of fraudulent use of scholarship funds,
502 refer the case to the attorney general for collection or criminal investigation;
503 (iii) ensure that a scholarship student whose eligibility is suspended or disqualified
504 under this Subsection (4)(b) or Subsection (4)(c) based on the actions of the student's parent
505 regains eligibility if the student is placed with a different parent or otherwise no longer resides
506 with the parent related to the suspension or disqualification;
507 (c) notify the state board, scholarship student, and scholarship student's parent in
508 writing:
509 (i) of the suspension described in Subsection (4)(b)(i);
510 (ii) that no further transactions, disbursements, or reimbursements are allowed;
511 (iii) that the scholarship student or scholarship student's parent may take corrective
512 action within 10 business days of the day on which the program manager provides the
513 notification; and
514 (iv) that without taking the corrective action within the time period described in
515 Subsection (4)(c)(iii), the program manager may disqualify the student's eligibility.
516 (5) (a) A program manager may not:
517 (i) disburse scholarship funds to a qualifying provider or allow a qualifying provider to
518 use scholarship funds if:
519 (A) the program manager determines that the qualifying provider intentionally or
520 substantially misrepresented information on overpayment;
521 (B) the qualifying provider fails to refund an overpayment in a timely manner; or
522 (C) the qualifying provider routinely fails to provide scholarship students with
523 promised educational services; or
524 (ii) reimburse with scholarship funds an individual for the purchase of a good or
525 service if the program manager determines that:
526 (A) the scholarship student or the scholarship student's parent requesting
527 reimbursement intentionally or substantially misrepresented the cost or educational purpose of
528 the good or service; or
529 (B) the relevant scholarship student was not the exclusive user of the good or service.
530 (b) A program manager shall notify a scholarship student if the program manager:
531 (i) stops disbursement of the scholarship student's scholarship funds to a qualifying
532 provider under Subsection (5)(a)(i); or
533 (ii) refuses reimbursement under Subsection (5)(a)(ii).
534 (6) (a) At any time, a scholarship student may change the qualifying provider to which
535 the scholarship student's scholarship account makes distributions.
536 (b) If, during the school year, a scholarship student changes the student's enrollment in
537 or engagement with a qualifying provider to another qualifying provider, the program manager
538 may prorate scholarship funds between the qualifying providers based on the time the
539 scholarship student received the goods or services or was enrolled.
540 (7) A program manager may not subvert the enrollment preferences required under
541 Section 53F-6-402 or other provisions of this part to establish a scholarship account on behalf
542 of a relative of a program manager officer.
543 (8) The program manager shall:
544 (a) contract for annual and random audits on scholarship accounts conducted:
545 (i) by a certified public accountant who is independent from:
546 (A) the program manager;
547 (B) the state board; and
548 (C) the program manager's accounts and records pertaining to scholarship funds; and
549 (ii) in accordance with generally accepted auditing standards;
550 (b) demonstrate the program manager's financial accountability by annually submitting
551 to the state board the following:
552 (i) a financial information report that a certified public accountant prepares and that
553 includes the total number and total dollar amount of scholarship funds disbursed during the
554 previous calendar year; and
555 (ii) no later than 180 days after the last day of the program manager's fiscal year, the
556 results of the audits described in Subsection (8)(a), including the program manager's financial
557 statements in a format that meets generally accepted accounting principles.
558 (9) (a) The state board:
559 (i) shall review a report described in this section; and
560 (ii) may request that the program manager revise or supplement the report if the report
561 does not fully comply with this section.
562 (b) The program manager shall provide to the state board a revised report or a
563 supplement to the report no later than 45 days after the day on which the state board makes a
564 request described in Subsection (9)(a).
565 Section 6. Section 53F-6-408 is amended to read:
566 53F-6-408. Eligible schools.
567 (1) To be eligible to receive scholarship funds on behalf of a scholarship student as an
568 eligible school, a private school with 150 or more enrolled students shall:
569 (a) (i) contract with an independent licensed certified public accountant to conduct an
570 agreed upon procedures engagement as the state board adopts, or obtain an audit and report
571 that:
572 (A) a licensed independent certified public accountant conducts in accordance with
573 generally accepted auditing standards;
574 (B) presents the financial statements in accordance with generally accepted accounting
575 principles; and
576 (C) audits financial statements from within the 12 months immediately preceding the
577 audit; and
578 (ii) submit the audit report or report of the agreed upon procedure to the program
579 manager when the private school applies to receive scholarship funds;
580 (b) comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d;
581 (c) provide a written disclosure to the parent of each prospective scholarship student,
582 before the student is enrolled, of:
583 (i) the education services that the school will provide to the scholarship student,
584 including the cost of the provided services;
585 (ii) tuition costs;
586 (iii) additional fees the school will require a parent to pay during the school year; and
587 (iv) the skill or grade level of the curriculum in which the prospective scholarship
588 student will participate; and
589 (d) require the following individuals to submit to a nationwide, fingerprint-based
590 criminal background check and ongoing monitoring, in accordance with Section 53G-11-402,
591 as a condition for employment or appointment, as authorized by the Adam Walsh Child
592 Protection and Safety Act of 2006, Pub. L. No. 109-248:
593 (i) an employee who does not hold:
594 (A) a current Utah educator license issued by the state board under Title 53E, Chapter
595 6, Education Professional Licensure; or
596 (B) if the private school is not physically located in Utah, a current educator license in
597 the state where the private school is physically located; and
598 (ii) a contract employee.
599 (2) A private school described in Subsection (1) is not eligible to receive scholarship
600 funds if:
601 (a) the private school requires a scholarship student to sign a contract waiving the
602 scholarship student's right to transfer to another qualifying provider during the school year;
603 (b) the audit report described in Subsection (1)(a) contains a going concern explanatory
604 paragraph; or
605 (c) the report of the agreed upon procedures described in Subsection (1)(a) shows that
606 the private school does not have adequate working capital to maintain operations for the first
607 full year.
608 (3) To be eligible to receive scholarship funds on behalf of a scholarship student as an
609 eligible school, a private school with fewer than 150 enrolled students shall:
610 (a) provide to the program manager:
611 (i) a federal employer identification number;
612 (ii) the provider's address and contact information;
613 (iii) a description of each program or service the provider proposes to offer a
614 scholarship student; and
615 (iv) any other information as required by the program manager; and
616 (b) comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d.
617 (4) A private school described in Subsection (3) is not eligible to receive scholarship
618 funds if the private school requires a scholarship student to sign a contract waiving the
619 student's rights to transfer to another qualifying provider during the school year.
620 (5) To be eligible to receive scholarship funds on behalf of a scholarship student as an
621 eligible school, an LEA shall:
622 (a) provide to the program manager:
623 (i) a federal employer identification number;
624 (ii) the LEA's address and contact information; and
625 (iii) the amount to be charged under the program for, in correlation with LEA's course
626 and activity fee schedules, and a description of [
627 [
628 [
629 (b) comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d; and
630 (c) [
631 of services to a scholarship student through which:
632 (i) the scholarship student does not enroll in the LEA; and
633 (ii) in accordance with Subsection 53F-2-302(2), the LEA does not receive WPU
634 funding related to the student's participation with the LEA[
635 [
636
637
638 (6) An LEA described in Subsection (5) is not eligible to receive scholarship funds if:
639 (a) the LEA requires a public education system scholarship student to sign a contract
640 waiving the student's rights to [
641 scholarship expense during the school year; or
642 (b) the LEA refuses to offer services that do not require LEA enrollment to scholarship
643 students under the program.
644 (7) Residential treatment facilities licensed by the state are not eligible to receive
645 scholarship funds.
646 (8) A private school or LEA intending to receive scholarship funds shall:
647 (a) (i) for a private school, submit an application to the program manager; [
648 (ii) for an LEA, submit a notice to the program manager containing the information
649 described in Subsection (5)(a); and
650 (b) agree to not refund, rebate, or share scholarship funds with scholarship students or
651 scholarship student's parents in any manner except remittances or refunds to a scholarship
652 account in accordance with this part and procedures that the program manager establishes.
653 (9) The program manager shall:
654 (a) if the private school or LEA meets the eligibility requirements of this section,
655 recognize the private school or LEA as an eligible school and, for a private school, approve the
656 application; and
657 (b) make available to the public a list of eligible schools approved under this section.
658 (10) A private school approved under this section that changes ownership shall:
659 (a) cease operation as an eligible school until:
660 (i) the school submits a new application to the program manager; and
661 (ii) the program manager approves the new application; and
662 (b) demonstrate that the private school continues to meet the eligibility requirements of
663 this section.
664 Section 7. Section 53F-6-409 is amended to read:
665 53F-6-409. Eligible service providers.
666 (1) To be an eligible service provider, a private program or service:
667 (a) shall provide to the program manager:
668 (i) a federal employer identification number;
669 (ii) the provider's address and contact information;
670 (iii) a description of each program or service the provider proposes to offer directly to a
671 scholarship student; and
672 (iv) subject to Subsection (2), any other information as required by the program
673 manager;
674 (b) shall comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d; and
675 (c) may not act as a consultant, clearing house, or intermediary that connects a
676 scholarship student with or otherwise facilitates the student's engagement with a program or
677 service that another entity provides.
678 (2) The program manager shall adopt policies that maximize the number of eligible
679 service providers, including accepting new providers throughout the school year, while
680 ensuring education programs or services provided through the program meet student needs and
681 otherwise comply with this part.
682 (3) A private program or service intending to receive scholarship funds shall:
683 (a) submit an application to the program manager; and
684 (b) agree to not refund, rebate, or share scholarship funds with scholarship students or
685 scholarship students' parents in any manner except remittances or refunds to a scholarship
686 account in accordance with this part and procedures that the program manager establishes.
687 (4) The program manager shall:
688 (a) if the private program or service meets the eligibility requirements of this section,
689 recognize the private program or service as an eligible service provider and approve a private
690 program or service's application to receive scholarship funds on behalf of a scholarship student;
691 and
692 (b) make available to the public a list of eligible service providers approved under this
693 section.
694 (5) A private program or service approved under this section that changes ownership
695 shall:
696 (a) cease operation as an eligible service provider until:
697 (i) the program or service submits a new application to the program manager; and
698 (ii) the program manager approves the new application; and
699 (b) demonstrate that the private program or service continues to meet the eligibility
700 requirements of this section.
701 (6) The following are not eligible service providers:
702 (a) a parent of a home-based scholarship student or a home school student solely in
703 relation to the parent's child; or
704 (b) any other individual that does not meet the requirements described in this section.
705 (7) Nothing prohibits an entity that provides education services under the Statewide
706 Online Education Program described in Title 53F, Chapter 4, Part 5, Statewide Online
707 Education Program, from operating as an eligible service provider under this part to provide
708 education services to scholarship students.
709 Section 8. Section 53F-6-412 is amended to read:
710 53F-6-412. Reports.
711 Beginning in 2025 and in accordance with Section 68-3-14 and the Family Educational
712 Rights and Privacy Act, 20 U.S.C. Sec. 1232g[
713 on the program to the Education Interim Committee no later than September 1 of each year that
714 includes:
715 [
716 current year and previous two years;
717 [
718 and a general characterization of the types of goods;
719 [
720 [
721 number of eligible students on the waitlist described in Section 53F-6-405;
722 [
723 school during the previous school year or who entered kindergarten or a higher grade for the
724 first time in Utah;
725 [
726 whose family income is at or below 200% of the federal poverty level and related obstacles to
727 enrollments;
728 [
729 the program manager has taken and processes the program manager has adopted to implement
730 the program; and
731 [
732 implementation that the committee requests[
733 [
734
735 Section 9. Section 59-1-403 is amended to read:
736 59-1-403. Confidentiality -- Exceptions -- Penalty -- Application to property tax.
737 (1) As used in this section:
738 (a) "Distributed tax, fee, or charge" means a tax, fee, or charge:
739 (i) the commission administers under:
740 (A) this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax Act;
741 (B) Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
742 (C) Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
743 (D) Section 19-6-805;
744 (E) Section 63H-1-205; or
745 (F) Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service Charges;
746 and
747 (ii) with respect to which the commission distributes the revenue collected from the
748 tax, fee, or charge to a qualifying jurisdiction.
749 (b) "Qualifying jurisdiction" means:
750 (i) a county, city, town, or metro township;
751 (ii) the military installation development authority created in Section 63H-1-201; or
752 (iii) the Utah Inland Port Authority created in Section 11-58-201.
753 (2) (a) Any of the following may not divulge or make known in any manner any
754 information gained by that person from any return filed with the commission:
755 (i) a tax commissioner;
756 (ii) an agent, clerk, or other officer or employee of the commission; or
757 (iii) a representative, agent, clerk, or other officer or employee of any county, city, or
758 town.
759 (b) An official charged with the custody of a return filed with the commission is not
760 required to produce the return or evidence of anything contained in the return in any action or
761 proceeding in any court, except:
762 (i) in accordance with judicial order;
763 (ii) on behalf of the commission in any action or proceeding under:
764 (A) this title; or
765 (B) other law under which persons are required to file returns with the commission;
766 (iii) on behalf of the commission in any action or proceeding to which the commission
767 is a party; or
768 (iv) on behalf of any party to any action or proceeding under this title if the report or
769 facts shown by the return are directly involved in the action or proceeding.
770 (c) Notwithstanding Subsection (2)(b), a court may require the production of, and may
771 admit in evidence, any portion of a return or of the facts shown by the return, as are specifically
772 pertinent to the action or proceeding.
773 (3) This section does not prohibit:
774 (a) a person or that person's duly authorized representative from receiving a copy of
775 any return or report filed in connection with that person's own tax;
776 (b) the publication of statistics as long as the statistics are classified to prevent the
777 identification of particular reports or returns; and
778 (c) the inspection by the attorney general or other legal representative of the state of the
779 report or return of any taxpayer:
780 (i) who brings action to set aside or review a tax based on the report or return;
781 (ii) against whom an action or proceeding is contemplated or has been instituted under
782 this title; or
783 (iii) against whom the state has an unsatisfied money judgment.
784 (4) (a) Notwithstanding Subsection (2) and for purposes of administration, the
785 commission may by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative
786 Rulemaking Act, provide for a reciprocal exchange of information with:
787 (i) the United States Internal Revenue Service; or
788 (ii) the revenue service of any other state.
789 (b) Notwithstanding Subsection (2) and for all taxes except individual income tax and
790 corporate franchise tax, the commission may by rule, made in accordance with Title 63G,
791 Chapter 3, Utah Administrative Rulemaking Act, share information gathered from returns and
792 other written statements with the federal government, any other state, any of the political
793 subdivisions of another state, or any political subdivision of this state, except as limited by
794 Sections 59-12-209 and 59-12-210, if the political subdivision, other state, or the federal
795 government grant substantially similar privileges to this state.
796 (c) Notwithstanding Subsection (2) and for all taxes except individual income tax and
797 corporate franchise tax, the commission may by rule, in accordance with Title 63G, Chapter 3,
798 Utah Administrative Rulemaking Act, provide for the issuance of information concerning the
799 identity and other information of taxpayers who have failed to file tax returns or to pay any tax
800 due.
801 (d) Notwithstanding Subsection (2), the commission shall provide to the director of the
802 Division of Environmental Response and Remediation, as defined in Section 19-6-402, as
803 requested by the director of the Division of Environmental Response and Remediation, any
804 records, returns, or other information filed with the commission under Chapter 13, Motor and
805 Special Fuel Tax Act, or Section 19-6-410.5 regarding the environmental assurance program
806 participation fee.
807 (e) Notwithstanding Subsection (2), at the request of any person the commission shall
808 provide that person sales and purchase volume data reported to the commission on a report,
809 return, or other information filed with the commission under:
810 (i) Chapter 13, Part 2, Motor Fuel; or
811 (ii) Chapter 13, Part 4, Aviation Fuel.
812 (f) Notwithstanding Subsection (2), upon request from a tobacco product manufacturer,
813 as defined in Section 59-22-202, the commission shall report to the manufacturer:
814 (i) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
815 manufacturer and reported to the commission for the previous calendar year under Section
816 59-14-407; and
817 (ii) the quantity of cigarettes, as defined in Section 59-22-202, produced by the
818 manufacturer for which a tax refund was granted during the previous calendar year under
819 Section 59-14-401 and reported to the commission under Subsection 59-14-401(1)(a)(v).
820 (g) Notwithstanding Subsection (2), the commission shall notify manufacturers,
821 distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is prohibited
822 from selling cigarettes to consumers within the state under Subsection 59-14-210(2).
823 (h) Notwithstanding Subsection (2), the commission may:
824 (i) provide to the Division of Consumer Protection within the Department of
825 Commerce and the attorney general data:
826 (A) reported to the commission under Section 59-14-212; or
827 (B) related to a violation under Section 59-14-211; and
828 (ii) upon request, provide to any person data reported to the commission under
829 Subsections 59-14-212(1)(a) through (c) and Subsection 59-14-212(1)(g).
830 (i) Notwithstanding Subsection (2), the commission shall, at the request of a committee
831 of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's Office of
832 Planning and Budget, provide to the committee or office the total amount of revenues collected
833 by the commission under Chapter 24, Radioactive Waste Facility Tax Act, for the time period
834 specified by the committee or office.
835 (j) Notwithstanding Subsection (2), the commission shall make the directory required
836 by Section 59-14-603 available for public inspection.
837 (k) Notwithstanding Subsection (2), the commission may share information with
838 federal, state, or local agencies as provided in Subsection 59-14-606(3).
839 (l) (i) Notwithstanding Subsection (2), the commission shall provide the Office of
840 Recovery Services within the Department of Health and Human Services any relevant
841 information obtained from a return filed under Chapter 10, Individual Income Tax Act,
842 regarding a taxpayer who has become obligated to the Office of Recovery Services.
843 (ii) The information described in Subsection (4)(l)(i) may be provided by the Office of
844 Recovery Services to any other state's child support collection agency involved in enforcing
845 that support obligation.
846 (m) (i) Notwithstanding Subsection (2), upon request from the state court
847 administrator, the commission shall provide to the state court administrator, the name, address,
848 telephone number, county of residence, and social security number on resident returns filed
849 under Chapter 10, Individual Income Tax Act.
850 (ii) The state court administrator may use the information described in Subsection
851 (4)(m)(i) only as a source list for the master jury list described in Section 78B-1-106.
852 (n) (i) As used in this Subsection (4)(n):
853 (A) "GO Utah office" means the Governor's Office of Economic Opportunity created in
854 Section 63N-1a-301.
855 (B) "Income tax information" means information gained by the commission that is
856 required to be attached to or included in a return filed with the commission under Chapter 7,
857 Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
858 (C) "Other tax information" means information gained by the commission that is
859 required to be attached to or included in a return filed with the commission except for a return
860 filed under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual
861 Income Tax Act.
862 (D) "Tax information" means income tax information or other tax information.
863 (ii) (A) Notwithstanding Subsection (2) and except as provided in Subsection
864 (4)(n)(ii)(B) or (C), the commission shall at the request of the GO Utah office provide to the
865 GO Utah office all income tax information.
866 (B) For purposes of a request for income tax information made under Subsection
867 (4)(n)(ii)(A), the GO Utah office may not request and the commission may not provide to the
868 GO Utah office a person's address, name, social security number, or taxpayer identification
869 number.
870 (C) In providing income tax information to the GO Utah office, the commission shall
871 in all instances protect the privacy of a person as required by Subsection (4)(n)(ii)(B).
872 (iii) (A) Notwithstanding Subsection (2) and except as provided in Subsection
873 (4)(n)(iii)(B), the commission shall at the request of the GO Utah office provide to the GO
874 Utah office other tax information.
875 (B) Before providing other tax information to the GO Utah office, the commission
876 shall redact or remove any name, address, social security number, or taxpayer identification
877 number.
878 (iv) The GO Utah office may provide tax information received from the commission in
879 accordance with this Subsection (4)(n) only:
880 (A) as a fiscal estimate, fiscal note information, or statistical information; and
881 (B) if the tax information is classified to prevent the identification of a particular
882 return.
883 (v) (A) A person may not request tax information from the GO Utah office under Title
884 63G, Chapter 2, Government Records Access and Management Act, or this section, if the GO
885 Utah office received the tax information from the commission in accordance with this
886 Subsection (4)(n).
887 (B) The GO Utah office may not provide to a person that requests tax information in
888 accordance with Subsection (4)(n)(v)(A) any tax information other than the tax information the
889 GO Utah office provides in accordance with Subsection (4)(n)(iv).
890 (o) Notwithstanding Subsection (2), the commission may provide to the governing
891 board of the agreement or a taxing official of another state, the District of Columbia, the United
892 States, or a territory of the United States:
893 (i) the following relating to an agreement sales and use tax:
894 (A) information contained in a return filed with the commission;
895 (B) information contained in a report filed with the commission;
896 (C) a schedule related to Subsection (4)(o)(i)(A) or (B); or
897 (D) a document filed with the commission; or
898 (ii) a report of an audit or investigation made with respect to an agreement sales and
899 use tax.
900 (p) Notwithstanding Subsection (2), the commission may provide information
901 concerning a taxpayer's state income tax return or state income tax withholding information to
902 the Driver License Division if the Driver License Division:
903 (i) requests the information; and
904 (ii) provides the commission with a signed release form from the taxpayer allowing the
905 Driver License Division access to the information.
906 (q) Notwithstanding Subsection (2), the commission shall provide to the Utah
907 Communications Authority, or a division of the Utah Communications Authority, the
908 information requested by the authority under Sections 63H-7a-302, 63H-7a-402, and
909 63H-7a-502.
910 (r) Notwithstanding Subsection (2), the commission shall provide to the Utah
911 Educational Savings Plan information related to a resident or nonresident individual's
912 contribution to a Utah Educational Savings Plan account as designated on the resident or
913 nonresident's individual income tax return as provided under Section 59-10-1313.
914 (s) Notwithstanding Subsection (2), for the purpose of verifying eligibility under
915 Sections 26B-3-106 and 26B-3-903, the commission shall provide an eligibility worker with
916 the Department of Health and Human Services or its designee with the adjusted gross income
917 of an individual if:
918 (i) an eligibility worker with the Department of Health and Human Services or its
919 designee requests the information from the commission; and
920 (ii) the eligibility worker has complied with the identity verification and consent
921 provisions of Sections 26B-3-106 and 26B-3-903.
922 (t) Notwithstanding Subsection (2), the commission may provide to a county, as
923 determined by the commission, information declared on an individual income tax return in
924 accordance with Section 59-10-103.1 that relates to eligibility to claim a residential exemption
925 authorized under Section 59-2-103.
926 (u) Notwithstanding Subsection (2), the commission shall provide a report regarding
927 any access line provider that is over 90 days delinquent in payment to the commission of
928 amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid Wireless
929 Telecommunications Service Charges, to the board of the Utah Communications Authority
930 created in Section 63H-7a-201.
931 (v) Notwithstanding Subsection (2), the commission shall provide the Department of
932 Environmental Quality a report on the amount of tax paid by a radioactive waste facility for the
933 previous calendar year under Section 59-24-103.5.
934 (w) Notwithstanding Subsection (2), the commission may, upon request, provide to the
935 Department of Workforce Services any information received under Chapter 10, Part 4,
936 Withholding of Tax, that is relevant to the duties of the Department of Workforce Services.
937 (x) Notwithstanding Subsection (2), the commission may provide the Public Service
938 Commission or the Division of Public Utilities information related to a seller that collects and
939 remits to the commission a charge described in Subsection 69-2-405(2), including the seller's
940 identity and the number of charges described in Subsection 69-2-405(2) that the seller collects.
941 (y) (i) Notwithstanding Subsection (2), the commission shall provide to each qualifying
942 jurisdiction the collection data necessary to verify the revenue collected by the commission for
943 a distributed tax, fee, or charge collected within the qualifying jurisdiction.
944 (ii) In addition to the information provided under Subsection (4)(y)(i), the commission
945 shall provide a qualifying jurisdiction with copies of returns and other information relating to a
946 distributed tax, fee, or charge collected within the qualifying jurisdiction.
947 (iii) (A) To obtain the information described in Subsection (4)(y)(ii), the chief
948 executive officer or the chief executive officer's designee of the qualifying jurisdiction shall
949 submit a written request to the commission that states the specific information sought and how
950 the qualifying jurisdiction intends to use the information.
951 (B) The information described in Subsection (4)(y)(ii) is available only in official
952 matters of the qualifying jurisdiction.
953 (iv) Information that a qualifying jurisdiction receives in response to a request under
954 this subsection is:
955 (A) classified as a private record under Title 63G, Chapter 2, Government Records
956 Access and Management Act; and
957 (B) subject to the confidentiality requirements of this section.
958 (z) Notwithstanding Subsection (2), the commission shall provide the Alcoholic
959 Beverage Services Commission, upon request, with taxpayer status information related to state
960 tax obligations necessary to comply with the requirements described in Section 32B-1-203.
961 (aa) Notwithstanding Subsection (2), the commission shall inform the Department of
962 Workforce Services, as soon as practicable, whether an individual claimed and is entitled to
963 claim a federal earned income tax credit for the year requested by the Department of Workforce
964 Services if:
965 (i) the Department of Workforce Services requests this information; and
966 (ii) the commission has received the information release described in Section
967 35A-9-604.
968 (bb) (i) As used in this Subsection (4)(bb), "unclaimed property administrator" means
969 the administrator or the administrator's agent, as those terms are defined in Section 67-4a-102.
970 (ii) (A) Notwithstanding Subsection (2), upon request from the unclaimed property
971 administrator and to the extent allowed under federal law, the commission shall provide the
972 unclaimed property administrator the name, address, telephone number, county of residence,
973 and social security number or federal employer identification number on any return filed under
974 Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10, Individual Income Tax Act.
975 (B) The unclaimed property administrator may use the information described in
976 Subsection (4)(aa)(ii)(A) only for the purpose of returning unclaimed property to the property's
977 owner in accordance with Title 67, Chapter 4a, Revised Uniform Unclaimed Property Act.
978 (iii) The unclaimed property administrator is subject to the confidentiality provisions of
979 this section with respect to any information the unclaimed property administrator receives
980 under this Subsection (4)(aa).
981 (cc) Notwithstanding Subsection (2), the commission may, upon request, disclose a
982 taxpayer's state individual income tax information to a program manager of the Utah Fits All
983 Scholarship Program under Section 53F-6-402 if:
984 (i) the taxpayer consents in writing to the disclosure;
985 (ii) the taxpayer's written consent includes the taxpayer's name, social security number,
986 and any other information the commission requests that is necessary to verify the identity of the
987 taxpayer; and
988 (iii) the program manager provides the taxpayer's written consent to the commission.
989 (5) (a) Each report and return shall be preserved for at least three years.
990 (b) After the three-year period provided in Subsection (5)(a) the commission may
991 destroy a report or return.
992 (6) (a) Any individual who violates this section is guilty of a class A misdemeanor.
993 (b) If the individual described in Subsection (6)(a) is an officer or employee of the
994 state, the individual shall be dismissed from office and be disqualified from holding public
995 office in this state for a period of five years thereafter.
996 (c) Notwithstanding Subsection (6)(a) or (b), the GO Utah office, when requesting
997 information in accordance with Subsection (4)(n)(iii), or an individual who requests
998 information in accordance with Subsection (4)(n)(v):
999 (i) is not guilty of a class A misdemeanor; and
1000 (ii) is not subject to:
1001 (A) dismissal from office in accordance with Subsection (6)(b); or
1002 (B) disqualification from holding public office in accordance with Subsection (6)(b).
1003 (d) Notwithstanding Subsection (6)(a) or (b), for a disclosure of information to the
1004 Office of the Legislative Auditor General in accordance with Title 36, Chapter 12, Legislative
1005 Organization, an individual described in Subsection (2):
1006 (i) is not guilty of a class A misdemeanor; and
1007 (ii) is not subject to:
1008 (A) dismissal from office in accordance with Subsection (6)(b); or
1009 (B) disqualification from holding public office in accordance with Subsection (6)(b).
1010 (7) Except as provided in Section 59-1-404, this part does not apply to the property tax.
1011 Section 10. Section 67-3-1 is amended to read:
1012 67-3-1. Functions and duties.
1013 (1) (a) The state auditor is the auditor of public accounts and is independent of any
1014 executive or administrative officers of the state.
1015 (b) The state auditor is not limited in the selection of personnel or in the determination
1016 of the reasonable and necessary expenses of the state auditor's office.
1017 (2) The state auditor shall examine and certify annually in respect to each fiscal year,
1018 financial statements showing:
1019 (a) the condition of the state's finances;
1020 (b) the revenues received or accrued;
1021 (c) expenditures paid or accrued;
1022 (d) the amount of unexpended or unencumbered balances of the appropriations to the
1023 agencies, departments, divisions, commissions, and institutions; and
1024 (e) the cash balances of the funds in the custody of the state treasurer.
1025 (3) (a) The state auditor shall:
1026 (i) audit each permanent fund, each special fund, the General Fund, and the accounts of
1027 any department of state government or any independent agency or public corporation as the law
1028 requires, as the auditor determines is necessary, or upon request of the governor or the
1029 Legislature;
1030 (ii) perform the audits in accordance with generally accepted auditing standards and
1031 other auditing procedures as promulgated by recognized authoritative bodies; and
1032 (iii) as the auditor determines is necessary, conduct the audits to determine:
1033 (A) honesty and integrity in fiscal affairs;
1034 (B) accuracy and reliability of financial statements;
1035 (C) effectiveness and adequacy of financial controls; and
1036 (D) compliance with the law.
1037 (b) If any state entity receives federal funding, the state auditor shall ensure that the
1038 audit is performed in accordance with federal audit requirements.
1039 (c) (i) The costs of the federal compliance portion of the audit may be paid from an
1040 appropriation to the state auditor from the General Fund.
1041 (ii) If an appropriation is not provided, or if the federal government does not
1042 specifically provide for payment of audit costs, the costs of the federal compliance portions of
1043 the audit shall be allocated on the basis of the percentage that each state entity's federal funding
1044 bears to the total federal funds received by the state.
1045 (iii) The allocation shall be adjusted to reflect any reduced audit time required to audit
1046 funds passed through the state to local governments and to reflect any reduction in audit time
1047 obtained through the use of internal auditors working under the direction of the state auditor.
1048 (4) (a) Except as provided in Subsection (4)(b), the state auditor shall, in addition to
1049 financial audits, and as the auditor determines is necessary, conduct performance and special
1050 purpose audits, examinations, and reviews of any entity that receives public funds, including a
1051 determination of any or all of the following:
1052 (i) the honesty and integrity of all the entity's fiscal affairs;
1053 (ii) whether the entity's administrators have faithfully complied with legislative intent;
1054 (iii) whether the entity's operations have been conducted in an efficient, effective, and
1055 cost-efficient manner;
1056 (iv) whether the entity's programs have been effective in accomplishing the intended
1057 objectives; and
1058 (v) whether the entity's management, control, and information systems are adequate,
1059 effective, and secure.
1060 (b) The auditor may not conduct performance and special purpose audits,
1061 examinations, and reviews of any entity that receives public funds if the entity:
1062 (i) has an elected auditor; and
1063 (ii) has, within the entity's last budget year, had the entity's financial statements or
1064 performance formally reviewed by another outside auditor.
1065 (5) The state auditor:
1066 (a) shall administer any oath or affirmation necessary to the performance of the duties
1067 of the auditor's office; and
1068 (b) may:
1069 (i) subpoena witnesses and documents, whether electronic or otherwise; and
1070 (ii) examine into any matter that the auditor considers necessary.
1071 (6) The state auditor may require all persons who have had the disposition or
1072 management of any property of this state or its political subdivisions to submit statements
1073 regarding the property at the time and in the form that the auditor requires.
1074 (7) The state auditor shall:
1075 (a) except where otherwise provided by law, institute suits in Salt Lake County in
1076 relation to the assessment, collection, and payment of revenues against:
1077 (i) persons who by any means have become entrusted with public money or property
1078 and have failed to pay over or deliver the money or property; and
1079 (ii) all debtors of the state;
1080 (b) collect and pay into the state treasury all fees received by the state auditor;
1081 (c) perform the duties of a member of all boards of which the state auditor is a member
1082 by the constitution or laws of the state, and any other duties that are prescribed by the
1083 constitution and by law;
1084 (d) stop the payment of the salary of any state official or state employee who:
1085 (i) refuses to settle accounts or provide required statements about the custody and
1086 disposition of public funds or other state property;
1087 (ii) refuses, neglects, or ignores the instruction of the state auditor or any controlling
1088 board or department head with respect to the manner of keeping prescribed accounts or funds;
1089 or
1090 (iii) fails to correct any delinquencies, improper procedures, and errors brought to the
1091 official's or employee's attention;
1092 (e) establish accounting systems, methods, and forms for public accounts in all taxing
1093 or fee-assessing units of the state in the interest of uniformity, efficiency, and economy;
1094 (f) superintend the contractual auditing of all state accounts;
1095 (g) subject to Subsection (8)(a), withhold state allocated funds or the disbursement of
1096 property taxes from a state or local taxing or fee-assessing unit, if necessary, to ensure that
1097 officials and employees in those taxing units comply with state laws and procedures in the
1098 budgeting, expenditures, and financial reporting of public funds;
1099 (h) subject to Subsection (9), withhold the disbursement of tax money from any county,
1100 if necessary, to ensure that officials and employees in the county comply with Section
1101 59-2-303.1; and
1102 (i) withhold state allocated funds or the disbursement of property taxes from a local
1103 government entity or a limited purpose entity, as those terms are defined in Section 67-1a-15 if
1104 the state auditor finds the withholding necessary to ensure that the entity registers and
1105 maintains the entity's registration with the lieutenant governor, in accordance with Section
1106 67-1a-15.
1107 (8) (a) Except as otherwise provided by law, the state auditor may not withhold funds
1108 under Subsection (7)(g) until a state or local taxing or fee-assessing unit has received formal
1109 written notice of noncompliance from the auditor and has been given 60 days to make the
1110 specified corrections.
1111 (b) If, after receiving notice under Subsection (8)(a), a state or independent local
1112 fee-assessing unit that exclusively assesses fees has not made corrections to comply with state
1113 laws and procedures in the budgeting, expenditures, and financial reporting of public funds, the
1114 state auditor:
1115 (i) shall provide a recommended timeline for corrective actions;
1116 (ii) may prohibit the state or local fee-assessing unit from accessing money held by the
1117 state; and
1118 (iii) may prohibit a state or local fee-assessing unit from accessing money held in an
1119 account of a financial institution by filing an action in district court requesting an order of the
1120 court to prohibit a financial institution from providing the fee-assessing unit access to an
1121 account.
1122 (c) The state auditor shall remove a limitation on accessing funds under Subsection
1123 (8)(b) upon compliance with state laws and procedures in the budgeting, expenditures, and
1124 financial reporting of public funds.
1125 (d) If a local taxing or fee-assessing unit has not adopted a budget in compliance with
1126 state law, the state auditor:
1127 (i) shall provide notice to the taxing or fee-assessing unit of the unit's failure to
1128 comply;
1129 (ii) may prohibit the taxing or fee-assessing unit from accessing money held by the
1130 state; and
1131 (iii) may prohibit a taxing or fee-assessing unit from accessing money held in an
1132 account of a financial institution by:
1133 (A) contacting the taxing or fee-assessing unit's financial institution and requesting that
1134 the institution prohibit access to the account; or
1135 (B) filing an action in district court requesting an order of the court to prohibit a
1136 financial institution from providing the taxing or fee-assessing unit access to an account.
1137 (e) If the local taxing or fee-assessing unit adopts a budget in compliance with state
1138 law, the state auditor shall eliminate a limitation on accessing funds described in Subsection
1139 (8)(d).
1140 (9) The state auditor may not withhold funds under Subsection (7)(h) until a county has
1141 received formal written notice of noncompliance from the auditor and has been given 60 days
1142 to make the specified corrections.
1143 (10) (a) The state auditor may not withhold funds under Subsection (7)(i) until the state
1144 auditor receives a notice of non-registration, as that term is defined in Section 67-1a-15.
1145 (b) If the state auditor receives a notice of non-registration, the state auditor may
1146 prohibit the local government entity or limited purpose entity, as those terms are defined in
1147 Section 67-1a-15, from accessing:
1148 (i) money held by the state; and
1149 (ii) money held in an account of a financial institution by:
1150 (A) contacting the entity's financial institution and requesting that the institution
1151 prohibit access to the account; or
1152 (B) filing an action in district court requesting an order of the court to prohibit a
1153 financial institution from providing the entity access to an account.
1154 (c) The state auditor shall remove the prohibition on accessing funds described in
1155 Subsection (10)(b) if the state auditor received a notice of registration, as that term is defined in
1156 Section 67-1a-15, from the lieutenant governor.
1157 (11) Notwithstanding Subsection (7)(g), (7)(h), (7)(i), (8)(b), (8)(d), or (10)(b), the
1158 state auditor:
1159 (a) shall authorize a disbursement by a local government entity or limited purpose
1160 entity, as those terms are defined in Section 67-1a-15, or a state or local taxing or fee-assessing
1161 unit if the disbursement is necessary to:
1162 (i) avoid a major disruption in the operations of the local government entity, limited
1163 purpose entity, or state or local taxing or fee-assessing unit; or
1164 (ii) meet debt service obligations; and
1165 (b) may authorize a disbursement by a local government entity, limited purpose entity,
1166 or state or local taxing or fee-assessing unit as the state auditor determines is appropriate.
1167 (12) (a) The state auditor may seek relief under the Utah Rules of Civil Procedure to
1168 take temporary custody of public funds if an action is necessary to protect public funds from
1169 being improperly diverted from their intended public purpose.
1170 (b) If the state auditor seeks relief under Subsection (12)(a):
1171 (i) the state auditor is not required to exhaust the procedures in Subsection (7) or (8);
1172 and
1173 (ii) the state treasurer may hold the public funds in accordance with Section 67-4-1 if a
1174 court orders the public funds to be protected from improper diversion from their public
1175 purpose.
1176 (13) The state auditor shall:
1177 (a) establish audit guidelines and procedures for audits of local mental health and
1178 substance abuse authorities and their contract providers, conducted pursuant to Title 17,
1179 Chapter 43, Part 2, Local Substance Abuse Authorities, Title 17, Chapter 43, Part 3, Local
1180 Mental Health Authorities, Title 26B, Chapter 5, Health Care - Substance Use and Mental
1181 Health, and Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal
1182 Organizations, and Other Local Entities Act; and
1183 (b) ensure that those guidelines and procedures provide assurances to the state that:
1184 (i) state and federal funds appropriated to local mental health authorities are used for
1185 mental health purposes;
1186 (ii) a private provider under an annual or otherwise ongoing contract to provide
1187 comprehensive mental health programs or services for a local mental health authority is in
1188 compliance with state and local contract requirements and state and federal law;
1189 (iii) state and federal funds appropriated to local substance abuse authorities are used
1190 for substance abuse programs and services; and
1191 (iv) a private provider under an annual or otherwise ongoing contract to provide
1192 comprehensive substance abuse programs or services for a local substance abuse authority is in
1193 compliance with state and local contract requirements, and state and federal law.
1194 (14) (a) The state auditor may, in accordance with the auditor's responsibilities for
1195 political subdivisions of the state as provided in Title 51, Chapter 2a, Accounting Reports from
1196 Political Subdivisions, Interlocal Organizations, and Other Local Entities Act, initiate audits or
1197 investigations of any political subdivision that are necessary to determine honesty and integrity
1198 in fiscal affairs, accuracy and reliability of financial statements, effectiveness, and adequacy of
1199 financial controls and compliance with the law.
1200 (b) If the state auditor receives notice under Subsection 11-41-104(7) from the
1201 Governor's Office of Economic Opportunity on or after July 1, 2024, the state auditor may
1202 initiate an audit or investigation of the public entity subject to the notice to determine
1203 compliance with Section 11-41-103.
1204 (15) (a) The state auditor may not audit work that the state auditor performed before
1205 becoming state auditor.
1206 (b) If the state auditor has previously been a responsible official in state government
1207 whose work has not yet been audited, the Legislature shall:
1208 (i) designate how that work shall be audited; and
1209 (ii) provide additional funding for those audits, if necessary.
1210 (16) The state auditor shall:
1211 (a) with the assistance, advice, and recommendations of an advisory committee
1212 appointed by the state auditor from among special district boards of trustees, officers, and
1213 employees and special service district boards, officers, and employees:
1214 (i) prepare a Uniform Accounting Manual for Special Districts that:
1215 (A) prescribes a uniform system of accounting and uniform budgeting and reporting
1216 procedures for special districts under Title 17B, Limited Purpose Local Government Entities -
1217 Special Districts, and special service districts under Title 17D, Chapter 1, Special Service
1218 District Act;
1219 (B) conforms with generally accepted accounting principles; and
1220 (C) prescribes reasonable exceptions and modifications for smaller districts to the
1221 uniform system of accounting, budgeting, and reporting;
1222 (ii) maintain the manual under this Subsection (16)(a) so that the manual continues to
1223 reflect generally accepted accounting principles;
1224 (iii) conduct a continuing review and modification of procedures in order to improve
1225 them;
1226 (iv) prepare and supply each district with suitable budget and reporting forms; and
1227 (v) (A) prepare instructional materials, conduct training programs, and render other
1228 services considered necessary to assist special districts and special service districts in
1229 implementing the uniform accounting, budgeting, and reporting procedures; and
1230 (B) ensure that any training described in Subsection (16)(a)(v)(A) complies with Title
1231 63G, Chapter 22, State Training and Certification Requirements; and
1232 (b) continually analyze and evaluate the accounting, budgeting, and reporting practices
1233 and experiences of specific special districts and special service districts selected by the state
1234 auditor and make the information available to all districts.
1235 (17) (a) The following records in the custody or control of the state auditor are
1236 protected records under Title 63G, Chapter 2, Government Records Access and Management
1237 Act:
1238 (i) records that would disclose information relating to allegations of personal
1239 misconduct, gross mismanagement, or illegal activity of a past or present governmental
1240 employee if the information or allegation cannot be corroborated by the state auditor through
1241 other documents or evidence, and the records relating to the allegation are not relied upon by
1242 the state auditor in preparing a final audit report;
1243 (ii) records and audit workpapers to the extent the workpapers would disclose the
1244 identity of an individual who during the course of an audit, communicated the existence of any
1245 waste of public funds, property, or manpower, or a violation or suspected violation of a law,
1246 rule, or regulation adopted under the laws of this state, a political subdivision of the state, or
1247 any recognized entity of the United States, if the information was disclosed on the condition
1248 that the identity of the individual be protected;
1249 (iii) before an audit is completed and the final audit report is released, records or drafts
1250 circulated to an individual who is not an employee or head of a governmental entity for the
1251 individual's response or information;
1252 (iv) records that would disclose an outline or part of any audit survey plans or audit
1253 program; and
1254 (v) requests for audits, if disclosure would risk circumvention of an audit.
1255 (b) The provisions of Subsections (17)(a)(i), (ii), and (iii) do not prohibit the disclosure
1256 of records or information that relate to a violation of the law by a governmental entity or
1257 employee to a government prosecutor or peace officer.
1258 (c) The provisions of this Subsection (17) do not limit the authority otherwise given to
1259 the state auditor to classify a document as public, private, controlled, or protected under Title
1260 63G, Chapter 2, Government Records Access and Management Act.
1261 (d) (i) As used in this Subsection (17)(d), "record dispute" means a dispute between the
1262 state auditor and the subject of an audit performed by the state auditor as to whether the state
1263 auditor may release a record, as defined in Section 63G-2-103, to the public that the state
1264 auditor gained access to in the course of the state auditor's audit but which the subject of the
1265 audit claims is not subject to disclosure under Title 63G, Chapter 2, Government Records
1266 Access and Management Act.
1267 (ii) The state auditor may submit a record dispute to the State Records Committee,
1268 created in Section 63G-2-501, for a determination of whether the state auditor may, in
1269 conjunction with the state auditor's release of an audit report, release to the public the record
1270 that is the subject of the record dispute.
1271 (iii) The state auditor or the subject of the audit may seek judicial review of a State
1272 Records Committee determination under Subsection (17)(d)(ii), as provided in Section
1273 63G-2-404.
1274 (18) If the state auditor conducts an audit of an entity that the state auditor has
1275 previously audited and finds that the entity has not implemented a recommendation made by
1276 the state auditor in a previous audit, the state auditor shall notify the Legislative Management
1277 Committee through the Legislative Management Committee's audit subcommittee that the
1278 entity has not implemented that recommendation.
1279 (19) The state auditor shall, with the advice and consent of the Senate, appoint the state
1280 privacy officer described in Section 67-3-13.
1281 (20) Except as provided in Subsection (21), the state auditor shall report, or ensure that
1282 another government entity reports, on the financial, operational, and performance metrics for
1283 the state system of higher education and the state system of public education, including metrics
1284 in relation to students, programs, and schools within those systems.
1285 (21) (a) Notwithstanding Subsection (20), the state auditor shall conduct regular audits
1286 of:
1287 (i) the scholarship granting organization for the Special Needs Opportunity Scholarship
1288 Program, created in Section 53E-7-402;
1289 (ii) the State Board of Education for the Carson Smith Scholarship Program, created in
1290 Section 53F-4-302; and
1291 (iii) the scholarship program manager for the Utah Fits All Scholarship Program,
1292 created in Section 53F-6-402, including an analysis of the cost effectiveness of the program,
1293 taking into consideration the amount of the scholarship and the amount of state and local funds
1294 dedicated on a per-student basis within the traditional public education system.
1295 (b) Nothing in this subsection limits or impairs the authority of the State Board of
1296 Education to administer the programs described in Subsection (21)(a).
1297 (22) The state auditor shall, based on the information posted by the Office of
1298 Legislative Research and General Counsel under Subsection 36-12-12.1(2), for each policy,
1299 track and post the following information on the state auditor's website:
1300 (a) the information posted under Subsections 36-12-12.1(2)(a) through (e);
1301 (b) an indication regarding whether the policy is timely adopted, adopted late, or not
1302 adopted;
1303 (c) an indication regarding whether the policy complies with the requirements
1304 established by law for the policy; and
1305 (d) a link to the policy.
1306 (23) (a) A legislator may request that the state auditor conduct an inquiry to determine
1307 whether a government entity, government official, or government employee has complied with
1308 a legal obligation directly imposed, by statute, on the government entity, government official,
1309 or government employee.
1310 (b) The state auditor may, upon receiving a request under Subsection (23)(a), conduct
1311 the inquiry requested.
1312 (c) If the state auditor conducts the inquiry described in Subsection (23)(b), the state
1313 auditor shall post the results of the inquiry on the state auditor's website.
1314 (d) The state auditor may limit the inquiry described in this Subsection (23) to a simple
1315 determination, without conducting an audit, regarding whether the obligation was fulfilled.
1316 Section 11. Effective date.
1317 This bill takes effect on May 1, 2024.