53F-6-408.  Eligible schools.

(1)  To be eligible to receive scholarship funds on behalf of a scholarship student as an eligible school, a private school with 150 or more enrolled students shall:

Terms Used In Utah Code 53F-6-408

  • Contract: A legal written agreement that becomes binding when signed.
  • program: means the scholarship program established in Section 53F-6-402. See Utah Code 53F-6-401
  • Program manager: means an organization that:
(a) is qualified as tax exempt under Section 501(c)(3), Internal Revenue Code;
(b) is not affiliated with any international organization;
(c) does not harvest data for the purpose of reproducing or distributing the data to other entities;
(d) has no involvement in guiding or directing any curriculum or curriculum standards;
(e) does not manage or otherwise administer a scholarship under:
(i) the Carson Smith Scholarship Program established in Section 53F-4-302; or
(ii) the Special Needs Opportunity Scholarship Program established in Section 53E-7-402; and
(f) an agreement with the state board recognizes as a program manager, in accordance with this part. See Utah Code 53F-6-401
  • Qualifying provider: means one of the following entities that is not a public school and is autonomous and not an agent of the state, in accordance with Section 53F-6-406:
    (a) an eligible school that the program manager approves in accordance with Section 53F-6-408; or
    (b) an eligible service provider that the program manager approves in accordance with Section 53F-6-409. See Utah Code 53F-6-401
  • Scholarship account: means the account to which a program manager allocates funds for the payment of approved scholarship expenses in accordance with this part. See Utah Code 53F-6-401
  • Scholarship funds: means :
    (a) funds that the Legislature appropriates for the program; and
    (b) interest that scholarship funds accrue. See Utah Code 53F-6-401
  • Scholarship student: means an eligible student, including a home-based scholarship student, for whom the program manager establishes and maintains a scholarship account in accordance with this part. See Utah Code 53F-6-401
  • 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
  • (a) 

    (i)  contract with an independent licensed certified public accountant to conduct an agreed upon procedures engagement as the state board adopts, or obtain an audit and report that:

    (A)  a licensed independent certified public accountant conducts in accordance with generally accepted auditing standards;

    (B)  presents the financial statements in accordance with generally accepted accounting principles; and

    (C)  audits financial statements from within the 12 months immediately preceding the audit; and

    (ii)  submit the audit report or report of the agreed upon procedure to the program manager when the private school applies to receive scholarship funds;

    (b)  comply with the antidiscrimination provisions of 42 U.S.C. § 2000d;

    (c)  provide a written disclosure to the parent of each prospective scholarship student, before the student is enrolled, of:

    (i)  the education services that the school will provide to the scholarship student, including the cost of the provided services;

    (ii)  tuition costs;

    (iii)  additional fees the school will require a parent to pay during the school year; and

    (iv)  the skill or grade level of the curriculum in which the prospective scholarship student will participate; and

    (d)  require the following individuals to submit to a nationwide, fingerprint-based criminal background check and ongoing monitoring, in accordance with Section 53G-11-402, as a condition for employment or appointment, as authorized by the Adam Walsh Child Protection and Safety Act of 2006, Pub. L. No. 109-248:

    (i)  an employee who does not hold:

    (A)  a current Utah educator license issued by the state board under Title 53E, Chapter 6, Education Professional Licensure; or

    (B)  if the private school is not physically located in Utah, a current educator license in the state where the private school is physically located; and

    (ii)  a contract employee.
  • (2)  A private school described in Subsection (1) is not eligible to receive scholarship funds if:

    (a)  the private school requires a scholarship student to sign a contract waiving the scholarship student’s right to transfer to another qualifying provider during the school year;

    (b)  the audit report described in Subsection (1)(a) contains a going concern explanatory paragraph; or

    (c)  the report of the agreed upon procedures described in Subsection (1)(a) shows that the private school does not have adequate working capital to maintain operations for the first full year.

    (3)  To be eligible to receive scholarship funds on behalf of a scholarship student as an eligible school, a private school with fewer than 150 enrolled students shall:

    (a)  provide to the program manager:

    (i)  a federal employer identification number;

    (ii)  the provider’s address and contact information;

    (iii)  a description of each program or service the provider proposes to offer a scholarship student; and

    (iv)  any other information as required by the program manager; and

    (b)  comply with the antidiscrimination provisions of 42 U.S.C. § 2000d.

    (4)  A private school described in Subsection (3) is not eligible to receive scholarship funds if the private school requires a scholarship student to sign a contract waiving the student’s rights to transfer to another qualifying provider during the school year.

    (5)  To be eligible to receive scholarship funds on behalf of a scholarship student as an eligible school, an LEA shall:

    (a)  provide to the program manager:

    (i)  a federal employer identification number;

    (ii)  the LEA’s address and contact information;

    (iii)  a description of each program or service the LEA proposes to offer to scholarship students; and

    (iv)  any other information as required by the program manager;

    (b)  comply with the antidiscrimination provisions of 42 U.S.C. § 2000d; and

    (c)  enter into an agreement with the program manager regarding the provision of services to a scholarship student through which:

    (i)  the scholarship student does not enroll in the LEA;

    (ii)  in accordance with Subsection 53F-2-302(2), the LEA does not receive WPU funding related to the student’s participation with the LEA; and

    (iii)  the LEA and program manager ensure that a scholarship student does not participate in a course or program at the LEA except in accordance with the agreement described in this Subsection (5)(c) under the program.

    (6)  An LEA described in Subsection (5) is not eligible to receive scholarship funds if:

    (a)  the LEA requires a public education system scholarship student to sign a contract waiving the student’s rights to transfer to another qualifying provider during the school year; or

    (b)  the LEA refuses to offer services that do not require LEA enrollment to scholarship students under the program.

    (7)  Residential treatment facilities licensed by the state are not eligible to receive scholarship funds.

    (8)  A private school or LEA intending to receive scholarship funds shall:

    (a)  submit an application to the program manager; and

    (b)  agree to not refund, rebate, or share scholarship funds with scholarship students or scholarship student’s parents in any manner except remittances or refunds to a scholarship account in accordance with this part and procedures that the program manager establishes.

    (9)  The program manager shall:

    (a)  if the private school or LEA meets the eligibility requirements of this section, recognize the private school or LEA as an eligible school and approve the application; and

    (b)  make available to the public a list of eligible schools approved under this section.

    (10)  A private school approved under this section that changes ownership shall:

    (a)  cease operation as an eligible school until:

    (i)  the school submits a new application to the program manager; and

    (ii)  the program manager approves the new application; and

    (b)  demonstrate that the private school continues to meet the eligibility requirements of this section.

    Enacted by Chapter 1, 2023 General Session