53E-7-404.  State board duties.

(1)  The state board shall:

Terms Used In Utah Code 53E-7-404

  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Eligible student: means :
(a) a student who:
(i) is eligible to participate in public school, in kindergarten or grades 1 through 12;
(ii) is a resident of the state;
(iii) 
(A) has an IEP; or
(B) is determined by a multidisciplinary evaluation team to be eligible for services under 20 U. See Utah Code 53E-7-401
  • Employee: means an individual working in a position in which the individual's salary, wages, pay, or compensation, including as a contractor, is paid from:
    (i) program donations to a scholarship granting organization; or
    (ii) scholarship money allocated to a qualifying school by a scholarship granting organization under Section 53E-7-405. See Utah Code 53E-7-401
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Officer: means :
    (a) a member of the board of a scholarship granting organization or qualifying school; or
    (b) the chief administrative officer of a scholarship granting organization or qualifying school. See Utah Code 53E-7-401
  • Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
  • program: means the program established in Section 53E-7-402. See Utah Code 53E-7-401
  • Qualifying school: means a private school that:
    (a) provides kindergarten, elementary, or secondary education;
    (b) is approved by the state board under Section 53E-7-408; and
    (c) meets the requirements described in Section 53E-7-403. See Utah Code 53E-7-401
  • Scholarship: means a grant awarded to an eligible student:
    (a) by a scholarship granting organization out of program donations; and
    (b) for the purpose of paying for a scholarship expense. See Utah Code 53E-7-401
  • Scholarship granting organization: means an organization that is:
    (a) qualified as tax exempt under Section 501(c)(3), Internal Revenue Code; and
    (b) recognized through an agreement with the state board as a scholarship granting organization, as described in Section 53E-7-404. See Utah Code 53E-7-401
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • State board: means the State Board of Education. See Utah Code 53E-1-102
  • (a)  publish on the state board’s website:

    (i)  information about the program; and

    (ii)  information about each scholarship granting organization;

    (b)  conduct a financial review or audit of a scholarship granting organization, if the state board receives evidence of fraudulent practice by the scholarship granting organization;

    (c)  conduct a criminal background check on each scholarship granting organization employee and scholarship granting organization officer;

    (d)  establish uniform financial accounting standards for scholarship granting organizations;

    (e)  annually calculate the amount of the program donations cap described in Section 53E-7-407; and

    (f)  in accordance with Section 53E-1-202.1, annually submit a report on the program to the Public Education Appropriations Subcommittee that includes:

    (i)  for the 2020-21, 2021-22, 2022-23, and 2023-24 school years, the amount of tuition and fees a qualifying school charges;

    (ii)  administrative costs of the program;

    (iii)  the number of scholarship students that are eligible students described in Subsection 53E-7-401(1)(a) and the number of scholarship students that are eligible students described in Subsection 53E-7-401(1)(b) from each school district;

    (iv)  standards used by the scholarship granting organization to determine whether a student is an eligible student; and

    (v)  savings to the state and LEAs as a result of scholarship students exiting the public school system.
  • (2) 

    (a)  In accordance with Subsection (3) and Title 63G, Chapter 6a, Utah Procurement Code, the state board shall issue a request for proposals and enter into at least one agreement with an organization that is qualified as tax exempt under Section 501(c)(3), Internal Revenue Code, to be recognized by the state board as a scholarship granting organization.

    (b)  An organization that responds to a request for proposals described in Subsection (2)(a) shall submit the following information in the organization’s response:

    (i)  a copy of the organization’s incorporation documents;

    (ii)  a copy of the organization’s Internal Revenue Service determination letter qualifying the organization as being tax exempt under Section 501(c)(3), Internal Revenue Code;

    (iii)  a description of the methodology the organization will use to verify that a student is an eligible student under this part; and

    (iv)  a description of the organization’s proposed scholarship application process.

    (3) 

    (a)  The state board shall enter into an agreement described in Subsection (2)(a) with one scholarship granting organization on or before January 1, 2021.

    (b)  The state board may enter into an agreement described in Subsection (2)(a) with additional scholarship granting organizations after January 1, 2023, if the state board makes rules regarding how multiple scholarship granting organizations may issue tax credit certificates in accordance with Section 53E-7-407.

    (c) 

    (i)  No later than 10 days after the day on which the state board enters into an agreement with a scholarship granting organization, the state board shall forward the name and contact information of the scholarship granting organization to the State Tax Commission.

    (ii)  If, under Subsection (4)(c)(i), the state board bars a scholarship granting organization from further participation in the program, the state board shall, no later than 10 days after the day on which the state board bars the scholarship granting organization, forward the name and contact information of the barred scholarship granting organization to the State Tax Commission.

    (4) 

    (a)  If the state board determines that a scholarship granting organization has violated a provision of this part or state board rule, the state board shall send written notice to the scholarship granting organization explaining the violation and the remedial action required to correct the violation.

    (b)  A scholarship granting organization that receives a notice described in Subsection (4)(a) shall, no later than 60 days after the day on which the scholarship granting organization receives the notice, correct the violation and report the correction to the state board.

    (c) 

    (i)  If a scholarship granting organization that receives a notice described in Subsection (4)(a) fails to correct a violation in the time period described in Subsection (4)(b), the state board may bar the scholarship granting organization from further participation in the program.

    (ii)  A scholarship granting organization may appeal a decision made by the state board under Subsection (4)(c)(i) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.

    (d)  A scholarship granting organization may not accept program donations while the scholarship granting organization:

    (i)  is barred from participating in the program under Subsection (4)(c)(i); or

    (ii)  has an appeal pending under Subsection (4)(c)(ii).

    (e)  A scholarship granting organization that has an appeal pending under Subsection (4)(c)(ii) may continue to administer scholarships from previously donated program donations during the pending appeal.

    (5)  The state board shall provide for a process for a scholarship granting organization to report information as required under Section 53E-7-405.

    (6)  The state board shall make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer the program, including rules for:

    (a)  the administration of scholarships to a qualifying school receiving scholarship money from a scholarship granting organization that is barred from participating in the program under Subsection (4)(c)(i);

    (b)  when an eligible student does not continue in enrollment at a qualifying school:

    (i)  requiring the scholarship granting organization to:

    (A)  notify the state board; and

    (B)  obtain reimbursement of scholarship money from the qualifying school in which the eligible student is no longer enrolled; and

    (ii)  requiring the qualifying school in which the eligible student is no longer enrolled to reimburse scholarship money to the scholarship granting organization;

    (c)  audit and report requirements as described in Section 53E-7-405; and

    (d)  requiring the scholarship granting organization, in accordance with the Family Educational Rights and Privacy Act, 20 U.S.C. § 1232g, to submit to the state board:

    (i)  for the 2020-21, 2021-22, 2022-23, and 2023-24 school years, the amount of tuition and fees a qualifying school charges;

    (ii)  the number of scholarship students that are eligible students described in Subsection 53E-7-401(1)(a) and the number of scholarship students that are eligible students described in Subsection 53E-7-401(1)(b) from each school district;

    (iii)  standards used to determine whether a student is an eligible student; and

    (iv)  any other information requested by the Public Education Appropriations Subcommittee for the state board to include in the annual report described in Section 53E-1-202.1.

    Amended by Chapter 262, 2022 General Session