(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: (a) submit to the program manager verification that the private school has obtained: (i) an agreed upon procedures engagement conducted by an independent licensed certified public accountant that addresses financial solvency and working capital adequacy; or (ii) an audit conducted by an independent licensed certified public accountant in accordance with generally accepted auditing standards that presents financial statements in accordance with generally accepted accounting principles; (b) provide to the program manager and financial administrator: (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 or financial administrator; (c) comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d; (d) 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; (iv) the skill or grade level of the curriculum in which the prospective scholarship student will participate; (v) beginning the 2026-2027 school year, a clear statement that if a scholarship student withdraws and the school's refund policy provides for a tuition refund, the school shall remit any refund directly to the program manager for deposit back into the student's scholarship account in accordance with the school's standard refund policies; and (vi) beginning the 2026-2027 school year, a statement that the school's published tuition costs, fees, and refund policies are identical for scholarship students and regularly enrolled students, and that scholarship students will not be charged different amounts or subject to different refund terms than other students enrolled in the same programs; (e) 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; (f) beginning the 2026-2027 school year, maintain and operate a functioning website that includes: (i) clearly posted tuition costs; (ii) all additional fees required during the school year; (iii) the school's refund and reimbursement policies in an easily accessible location; (iv) contact information for the school's administration; and (v) the school's physical address; (g) beginning the 2026-2027 school year, report to the program manager within five business days when a scholarship student withdraws from the school during the school year; and (h) beginning the 2026-2027 school year, ensure that all tuition charges, fees, and refund policies applied to scholarship students are identical to those applied to regularly enrolled students in the same programs or grade levels. (2) (a) The program manager shall ensure that: (i) the verification required under Subsection (1)(a)(i): (A) is from an audit or agreed upon procedures engagement completed within the 12 months immediately preceding the private school's application to receive scholarship funds; (B) confirms that the audit or agreed upon procedures engagement found the private school to be financially solvent with adequate working capital to maintain operations; and (C) does not include the underlying audit report or detailed financial information. (b) The program manager: (i) may only verify that the required audit or agreed upon procedures engagement was completed and found general financial solvency; (ii) may not conduct, commission, or be involved in the audit or agreed upon procedures engagement; and (iii) may not review detailed financial records of the private school beyond the verification described in Subsection (2)(a)(i). (3) 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 verification required under Subsection (1)(a) indicates that the audit report contains a going concern explanatory paragraph; or (c) the verification required under Subsection (1)(a) indicates that the report of the agreed upon procedures shows that the private school does not have adequate working capital to maintain operations for the first full year. (4) 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 and financial administrator: (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 or financial administrator; (b) comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d; (c) beginning the 2026-2027 school year, maintain and operate a functioning website that includes: (i) clearly posted tuition costs; (ii) all additional fees required during the school year; (iii) the school's refund and reimbursement policies in an easily accessible location; (iv) contact information for the school's administration; and (v) the school's address; (d) provide a written disclosure to the parent of each prospective scholarship student, before the student is enrolled, that includes: (i) tuition costs; (ii) additional fees required during the school year; and (iii) a clear statement that if a scholarship student withdraws and the school's refund policy provides for a tuition refund, the school shall remit any refund directly to the program manager for deposit back into the student's scholarship account in accordance with the school's standard refund policies; (e) beginning the 2026-2027 school year, a statement that the school's published tuition costs, fees, and refund policies are identical for scholarship students and regularly enrolled students; and (f) beginning the 2026-2027 school year, report to the program manager within five business days when a scholarship student withdraws from the school during the school year. (5) A private school described in Subsection (4) 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. (6) 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 and financial administrator: (i) a federal employer identification number; (ii) the LEA's address and contact information; and (iii) the amount to be charged under the program, in correlation with the LEA's course and activity fee schedules, and a description of a class, program, or service the LEA provides to a scholarship student; (b) comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d; and (c) ensure the provision of services to a scholarship student through which: (i) the scholarship student does not enroll in the LEA; and (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; (d) treat a scholarship student the same as the LEA would treat an enrolled student, including in: (i) participation allowances; (ii) audition rules; (iii) athletic team participation; (iv) extracurricular activities; and (v) co-curricular activities; (e) not deny a scholarship student participation in any activity, team, or program simply because: (i) the student is a scholarship student; or (ii) of liability concerns specific to the student's scholarship status; (f) establish a transparent and fair fee structure for scholarship expenses offered by the LEA, including a fee schedule that: (i) is based on actual costs of providing services; (ii) is consistent with fees charged to enrolled students; (iii) itemizes all charges and fees; (iv) explains the basis for each fee; and (v) is updated annually; (g) provide the same liability coverage to scholarship students as provided to enrolled students; and (h) in accordance with Subsection 53F-6-402(7), create and maintain a distinct identifier in the LEA's student information system that: (i) clearly identifies a scholarship student; and (ii) distinguishes the scholarship student from a student enrolled in the LEA. (7) An LEA described in Subsection (6) 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 engage with another qualifying provider for a scholarship expense during the school year; or (b) the LEA refuses to offer services that do not require LEA enrollment to scholarship students under the program. (8) Residential treatment facilities licensed by the state are not eligible to receive scholarship funds. (9) A private school or LEA intending to receive scholarship funds shall: (a) (i) for a private school, submit an application to the program manager; or (ii) for an LEA, submit a notice to the program manager containing the information described in Subsection (6)(a); 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 processed through the financial administrator to a scholarship account in accordance with this part and procedures that the program manager establishes, and the payment schedule described in Section 53F-6-411. (10) 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, for a private school, approve the application; and (b) make available to the public a list of eligible schools approved under this section. (11) 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. (12) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the state board shall establish rules for an LEA to create and publish fee structures for scholarship students.
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