2023 Utah Code › Title 53F - Public Education System -- Funding › Chapter 6 - State Funding -- Programs Administered by Other Agencies › Part 4 - Utah Fits All Scholarship Program › Section 404 - State board procurement and review of program manager -- Failure to comply.

Effective 5/3/2023
53F-6-404.
State board procurement and review of program manager -- Failure to comply.
(1)
(a) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, the state board shall issue a request for proposals, on or before June 15, 2023, and enter an agreement with no more than one organization that qualifies as tax exempt under Section 501(c)(3), Internal Revenue Code, for the state board to recognize as the program manager, on or before September 1, 2023.
(b) An organization that responds to a request for proposals described in Subsection (1)(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 a student's eligibility under this part;
(iv) a description of the organization's proposed scholarship account application process; and
(v) an affidavit or other evidence that the organization:
(A) is not affiliated with any international organization;
(B) does not harvest data for the purpose of reproducing or distributing the data to another entity; and
(C) has no involvement in guiding or directing any curriculum standards.
(c) The state board shall ensure that the agreement described in Subsection (1)(a):
(i) ensures the efficiency and success of the program; and
(ii) does not impose any requirements on the program manager that:
(A) are not essential to the basic administration of the program; or
(B) create restrictions, directions, or mandates regarding instructional content or curriculum.
(2) The state board may regulate and take enforcement action as necessary against a program manager in accordance with the provisions of the state board's agreement with the program manager.
(3)
(a) If the state board determines that a program manager has violated a provision of this part or a provision of the state board's agreement with the program manager, the state board shall send written notice to the program manager explaining the violation and the remedial action required to correct the violation.
(b) A program manager that receives a notice described in Subsection (3)(a) shall, no later than 60 days after the day on which the program manager receives the notice, correct the violation and report the correction to the state board.
(c)
(i) If a program manager that receives a notice described in Subsection (3)(a) fails to correct a violation in the time period described in Subsection (3)(b), the state board may bar the program manager from further participation in the program.
(ii) A program manager may appeal a decision of the state board under Subsection (3)(c)(i) in accordance with Title 63G, Chapter 4, Administrative Procedures Act.
(d) A program manager may not accept state funds while the program manager:
(i) is barred from participating in the program under Subsection (3)(c)(i); or
(ii) has an appeal pending under Subsection (3)(c)(ii).
(e) A program manager that has an appeal pending under Subsection (3)(c)(ii) may continue to administer scholarship accounts during the pending appeal.
(4) The state board shall establish a process for a program manager to report the information the program manager is required to report to the state board under Section 53F-6-405.
(5) The state board shall make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and include provisions in the state board's agreement with the scholarship organization for:
(a) subject to Subsection (6), the administration of scholarship accounts and disbursement of scholarship funds if a program manager is barred from participating in the program under Subsection (3)(c)(i); and
(b) audit and report requirements as described in Section 53F-6-405.
(6)
(a) The state board shall include in the rules and provisions described in Subsection (5)(a) measures to ensure that the establishment and maintenance of scholarship accounts and enrollment in the program are not disrupted if the program manager is barred from participating in the program.
(b) The state board may, if the program manager is barred from participating in the program, issue a new request for proposals and enter into a new agreement with an alternative program manager in accordance with this section.
(7)
(a) On or before January 1, 2024, the state board shall:
(i) make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish a process for a scholarship student or a scholarship student's parent to appeal any administrative decision of the program manager for state board resolution within 30 days after the day of the appeal, including:
(A) scholarship expense denials; and
(B) determinations regarding enrollment eligibility or suspension or disqualification under Section 53F-6-405; and
(ii) make information available regarding the appeals process on the state board's website and on the scholarship application.
(b) If the state board stays or reverses an administrative decision of the program manager on appeal, the program manager may not withhold scholarship funds or application approval for the scholarship student on account of the appealed administrative decision unless as the state board expressly allows.
(8) The state board may not include a provision in any rule that creates or implies a restriction, direction, or mandate regarding instructional content or curriculum.
Enacted by Chapter 1, 2023 General Session