Legislative Recap - Utah Fits All Scholarship Program Modifications

As we near the end of the legislative session, HB467 Utah Fits All Scholarship Program Modifications, experienced another iteration on the Senate Floor. Substitute 5 was introduced and passed by the body with a 19-10 vote in favor. The bill now goes back to the House for concurrence.

✂️ Monthly Tuition Reimbursement for Non-Eligible Private Schools

• Removal of all provisions related to monthly tuition reimbursement for tuition paid directly to a private school that meets the definition in Section 53F-6-401, but has not been approved as an eligible school under Section 53F-6-408

✂️ Annual Audit by the Office of the Legislative Auditor General

• The Program already undergoes annual audits as required by current statute:
  • Independent CPA audit of scholarship accounts (annual + random)
  • Audit by the Utah State Auditor of the program manager

Provisions Remaining in HB467

🆕 Private School Definition

• The definition has been restored to the original version currently in statute, with the addition of provisions prohibiting any entity that distributes any portion of enrollment-based funding received by an LEA

🆕 Age Requirement Clarification

• Students must be under 19 years old as of September 1

🆕 Enrollment Lottery Tier Changes

• Reorders enrollment preference tiers:
  • Tier i: Returning students
  • Tier ii: Siblings of current/recent scholarship students
  • Tier iii: Low-income students (300% FPL)
  • Tier iv: Lottery for remaining scholarships

🆕 Partial Scholarship Awards for Multi-Child Households

• New subsection establishing procedures when insufficient funds exist for all children in household

🆕 Program Manager Coordination and Oversight

• Program manager must coordinate with Department of Operations on policy interpretations, compliance issues, and customer service standards

🆕 Enhanced Customer Service Requirements

• New subsection requiring program manager to maintain adequate call center capacity:
  • Sufficient staffing for standard and peak enrollment periods
  • Scalability plans as enrollment grows
  • Regular capacity assessments
• New subsection requiring continuous customer service improvement based on parent feedback

🆕 Pre-Approval Process for Scholarship Expenses

• New subsection establishing pre-approval process:
  • Parents can submit expense requests for review before incurring expense
  • Response within 7 business days indicating approval, need for more info, or denial with explanation
  • Accessible through online portal, email, and telephone
  • Documentation of all requests and decisions maintained

🆕 Marketplace Operation Standards

• New subsection establishing marketplace standards if program manager operates one:
  • Prices must reflect fair market value
  • Parents may purchase similar items elsewhere and seek reimbursement
  • Cannot require exclusive marketplace purchases
  • Cannot resell used or returned goods through marketplace
  • Parents can purchase used/resale items from third parties and seek reimbursement

🆕 Private School Consumer Protection & Transparency

For Schools with 150+ Students:

• Written disclosures must include refund policies (refunds go to program manager, not parent) and statement that pricing/refund policies identical for scholarship vs. regular students
• Functioning website with costs, fees, refund policies, contacts, address; report withdrawals within 5 business days; identical pricing/refund policies for all students

For Schools with <150 Students:

• Same requirements as above

🆕 Audit/Financial Verification Simplification for Eligible Schools

• Replaces full audit submission requirement with simple verification that audit/agreed-upon procedures was obtained and found solvency
• Limits program manager to only verifying completion; cannot conduct, commission, or review detailed financial records