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H.B. 340
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EDUCATION FUNDING AMENDMENTS
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2006 GENERAL SESSION
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STATE OF UTAH
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Chief Sponsor: Brad L. Dee
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Senate Sponsor:
____________
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LONG TITLE
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General Description:
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This bill creates a program to award scholarships to students to attend a private school.
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Highlighted Provisions:
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This bill:
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. specifies criteria for qualifying for a scholarship;
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. specifies criteria for private schools to enroll scholarship students;
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. specifies the amount, timing, and form of scholarship payments;
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. requires the State Board of Education to make rules;
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. gives the State Board of Education enforcement authority;
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. requires the Legislature to annually appropriate money from the General Fund for
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scholarship payments;
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. provides for monies to school districts to mitigate potential impacts due to
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unplanned losses of revenue when a student transfers from a school district to a
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private school; and
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. allows the State Board of Education to transfer unused scholarship monies to the
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Minimum School Program.
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Monies Appropriated in this Bill:
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This bill appropriates:
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. as on ongoing appropriation subject to future budget constraints, $100,000 from the
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General Fund for fiscal year 2005-06 to the State Board of Education.
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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ENACTS:
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53A-1a-801, Utah Code Annotated 1953
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53A-1a-802, Utah Code Annotated 1953
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53A-1a-803, Utah Code Annotated 1953
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53A-1a-804, Utah Code Annotated 1953
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53A-1a-805, Utah Code Annotated 1953
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53A-1a-806, Utah Code Annotated 1953
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53A-1a-807, Utah Code Annotated 1953
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53A-1a-808, Utah Code Annotated 1953
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53A-1a-809, Utah Code Annotated 1953
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53A-1a-810, Utah Code Annotated 1953
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53A-1a-811, Utah Code Annotated 1953
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53A-1a-812, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
53A-1a-801
is enacted to read:
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Part 8. Parent Choice in Education Act
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53A-1a-801. Title.
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This part is known as the "Parent Choice in Education Act."
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Section 2.
Section
53A-1a-802
is enacted to read:
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53A-1a-802. Findings and purpose.
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The Legislature finds that:
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(1) parents are presumed best informed to make decisions for their children, including
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the educational setting that will best serve their children's interests and educational needs;
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(2) the establishment of this choice in education program is justified on the basis of
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funding the educational needs of school-age children as determined by their parents;
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(3) school-age children are the primary beneficiaries of the choice in education
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program authorized in this part, and any benefit to private schools, whether sectarian or secular,
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is indirect and incidental;
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(4) the choice in education program authorized by this part is available to the parents of
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school-age children, solely on the basis of income level for the year immediately preceding the
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year for which a scholarship is sought, and not on the basis of sex, race, religion, national
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origin, or any other criteria; and
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(5) the choice in education program authorized in this part is:
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(a) enacted for the valid secular purpose of tailoring a child's education to that child's
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specific needs as determined by the parent;
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(b) neutral with respect to religion; and
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(c) limited in its assistance to a parent, who may choose to use the scholarship to offset
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tuition or fees charged by a private school, either sectarian or secular, in which enrollment of
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the parent's child is sought, solely as a result of the parent's genuine and independent private
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choices.
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Section 3.
Section
53A-1a-803
is enacted to read:
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53A-1a-803. Definitions.
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As used in this part:
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(1) "Board" means the State Board of Education.
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(2) "Eligible private school" means a private school that meets the requirements of
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Section
53A-1a-805
.
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(3) "Income eligibility guideline" means the maximum annual income allowed to
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qualify for reduced price meals for the applicable household size as published by the U.S.
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Department of Agriculture by notice in the Federal Register.
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(4) "Parent" includes a legal guardian.
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(5) "Scholarship student" means a student who receives a scholarship under this part.
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(6) "Tuition" means amounts charged for attending a private school, excluding fees for
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extracurricular activities or transportation to the private school.
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Section 4.
Section
53A-1a-804
is enacted to read:
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53A-1a-804. Scholarship program created -- Qualifications -- Application.
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(1) The Parent Choice in Education Program is created to award scholarships to
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students to attend a private school.
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(2) To qualify for a scholarship under this part:
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(a) the student's custodial parent or legal guardian shall reside within Utah;
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(b) the student shall be at least five years of age before September 2 of the year in
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which admission to a private school is sought and under 19 years of age on the last day of the
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school year as determined by the private school, or, if the individual has not graduated from
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high school, will be under 22 years of age on the last day of the school year as determined by
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the private school;
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(c) the student shall meet one or more of the following criteria:
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(i) the student was born after September 1, 2000;
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(ii) the student was enrolled as a full-time student in a Utah public school on January 1,
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2006;
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(iii) the individual was not a Utah resident on January 1, 2006; or
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(iv) the student's parents had an annual income less than or equal to 100% of the
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income eligibility guideline in the calendar year immediately preceding the school year for
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which a scholarship is sought; and
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(d) the student may not be a recipient of a scholarship awarded under Chapter 1a, Part
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7, Carson Smith Scholarships for Students with Special Needs Act.
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(3) (a) To receive a scholarship, the parent of a student shall submit an application for
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the scholarship to the board by the July 1 preceding the school year for which a scholarship is
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sought. Along with the application, the student's parent shall submit documentation verifying
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income as required by board rule.
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(b) The board may waive the July 1 application deadline.
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(4) The board shall award scholarships by the August 1 preceding the school year for
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which a scholarship is sought.
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(5) (a) The scholarship application form shall contain the following statement:
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"I acknowledge that:
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(1) A private school may not provide the same level of services that are provided in a
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public school.
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(2) The private school in which I have chosen to enroll my child has disclosed to me
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the teaching credentials of the school's teachers and the school's accreditation status.
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(3) I will assume full financial responsibility for the education of my scholarship
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student if I accept this scholarship.
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(4) Acceptance of this scholarship has the same effect as a parental refusal to consent
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to services pursuant to Section 614(a)(1) of the Individuals with Disabilities Education Act, 20
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U.S.C. Sec. 1400 et seq."
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(b) Upon acceptance of the scholarship, the parent assumes full financial responsibility
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for the education of the scholarship student.
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(c) Acceptance of a scholarship has the same effect as a parental refusal to consent to
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services pursuant to Section 614(a)(1) of the Individuals with Disabilities Education Act, 20
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U.S.C. Sec. 1400 et seq.
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(6) A student's parent, at any time, may remove the student from a private school and
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place the student in another eligible private school and retain the scholarship.
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Section 5.
Section
53A-1a-805
is enacted to read:
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53A-1a-805. Eligible private schools.
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(1) To be eligible to enroll a scholarship student, a private school shall:
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(a) have a physical location in Utah where the scholarship students attend classes and
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have direct contact with the school's teachers;
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(b) contract with an independent certified public accountant to perform the agreed upon
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procedures specified in Subsection (2) and produce a report of the results which shall be
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submitted to the board at the times specified in Subsection (2);
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(c) comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d;
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(d) meet state and local health and safety laws and codes;
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(e) disclose to the parent of each prospective student, before the student is enrolled, the
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special education services that will be provided to the student, if any, including the cost of
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those services;
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(f) (i) annually assess the achievement of each student by administering:
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(A) a norm-referenced test scored by an independent party that provides a comparison
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of the student's performance to other students on a national basis; or
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(B) an alternative assessment of the student's achievement, if the student:
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(I) has a disability or limited English proficiency; and
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(II) would be exempt from taking a nationally norm-referenced achievement test if
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enrolled in a Utah public school;
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(ii) report the test results to the student's parents; and
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(iii) upon request, make test results available to other persons, in a manner that does
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not reveal the identity of any student;
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(g) employ or contract with teachers who:
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(i) hold baccalaureate or higher degrees; or
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(ii) have special skills, knowledge, or expertise that qualifies them to provide
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instruction in the subjects taught;
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(h) provide to parents the teaching credentials of the school's teachers; and
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(i) provide, upon request to any person, a statement indicating which, if any,
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organizations have accredited the private school.
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(2) (a) The agreed upon procedures to be performed pursuant to Subsection (1)(b) are
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as follows:
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(i) Determine that working capital is at least 80% of average quarterly expenditures by
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taking total expenditures for a year and dividing it by four and then dividing average quarterly
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expenditures into working capital. For a school in the first year of operations use the estimated
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budget to estimate average quarterly expenditures.
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(ii) Determine that voucher payments are accounted for separately and reconciled to
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student records. For the first year of operations determine that procedures are in place for this
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accounting.
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(iii) Determine that expenditure of voucher funds have been made for education
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expenses and is consistent with other tuition expenditures. For the first year of operations
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determine that procedures are in place for this accounting.
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(b) (i) The independent certified public accountant's report on the agreed upon
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procedures specified in Subsection (2)(a) shall be submitted to the board when the private
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school applies to accept scholarship students and every four years thereafter, except as
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provided in Subsection (2)(b)(ii).
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(ii) The board may by rule delay the date when the independent certified public
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accountant's report shall be submitted for private schools applying to accept scholarship
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students in the 2006-07 school year.
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(3) The following are not eligible to enroll scholarship students:
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(a) a school with an enrollment of fewer than 25 students;
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(b) a school that operates in a residence; or
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(c) a residential treatment facility licensed by the state.
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(4) (a) Except as provided in Subsection (4)(b), a private school intending to enroll
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scholarship students shall submit an application to the board by May 1 of the school year
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preceding the school year in which it intends to enroll scholarship students.
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(b) A private school intending to enroll scholarship students in the 2006-07 school year
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shall submit an application by June 1, 2006.
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(5) The board shall:
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(a) approve a private school's application to enroll scholarship students if the private
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school meets the eligibility requirements of this section; and
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(b) make available to the public a list of the eligible private schools:
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(i) for the 2007-08 school year and each school year thereafter, by the May 30
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preceding the school year; and
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(ii) for the 2006-07 school year, by June 15, 2006.
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Section 6.
Section
53A-1a-806
is enacted to read:
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53A-1a-806. Scholarship payments.
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(1) (a) Scholarships shall be awarded by the board subject to the availability of money
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appropriated by the Legislature for that purpose.
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(b) The Legislature shall annually appropriate money to the board from the General
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Fund to make scholarship payments.
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(c) (i) If monies are not available to pay for all scholarships requested, the scholarships
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shall be allocated on a random basis except that preference shall be given to students who
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received scholarships in the previous year.
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(ii) If monies are insufficient in a school year to pay for all the continuing scholarships,
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new scholarships may not be awarded during that school year, and the monies available for
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scholarships shall be prorated among the eligible students who received scholarships in the
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previous year.
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(2) (a) Scholarships shall be awarded based upon the income of a scholarship student's
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parents in the calendar year immediately preceding the school year for which a scholarship is
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sought.
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(b) (i) The board shall make rules specifying how the income of a prospective
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scholarship student's parents shall be determined.
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(ii) The rules shall provide that the scholarship shall be based upon parental income as
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follows:
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(A) if the parents are married, the income of both parents;
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(B) if a parent is widowed, the income of the widowed parent;
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(C) if a parent is widowed and has remarried, the income of the parent and stepparent;
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(D) if the parents are divorced, the income of the parent with whom the scholarship
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student resided for the greatest amount of time during the past 12 months;
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(E) if the parents are divorced and the scholarship student resided with each parent an
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equal amount of time, the income of the parent who provided more financial support during the
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past 12 months;
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(F) if the divorced parent with whom the scholarship student resided for the greatest
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amount of time or who provided the greatest financial support has remarried, the income of the
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parent and stepparent; and
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(G) if the scholarship student resides with a guardian, the income of the guardian,
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unless the guardian's income is exempt by board rule.
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(iii) The rules shall provide that:
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(A) if a parent filed federal or state income tax forms, income shall be based upon
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adjusted gross income as listed on the income tax forms;
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(B) if a parent was exempt from filing federal and state income tax forms, income shall
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be based on income earned from work; and
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(C) a parent shall submit documentation verifying income.
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(3) (a) The board shall compare the income of a scholarship student's parents to the
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maximum annual incomes listed in the income eligibility guideline as defined in Section
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53A-1a-802
to set the scholarship amount.
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(b) In determining scholarship amounts, the board shall use:
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(i) the income eligibility guideline in effect for the school year immediately preceding
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the school year for which a scholarship is sought; and
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(ii) the scholarship student's household size as the applicable household size for the
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purpose of the determining maximum annual income under the income eligibility guideline.
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(4) Full-year scholarships shall be awarded in the amounts shown in the following
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table, or for the amount of tuition for a full-year, whichever is less.
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If the annual income of a scholarship
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student's parents is: The full-year scholarship amount is:
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Less than or equal to 100% of the
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income eligibility guideline $3,000
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Greater than 100% but less than or equal
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to 125% of the income eligibility guideline $2,750
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Greater than 125% but less than or equal to
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150% of the income eligibility guideline $2,500
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Greater than 150% but less than or equal to
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175% of the income eligibility guideline $2,250
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Greater than 175% but less than or equal to
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200% of the income eligibility guideline $2,000
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Greater than 200% but less than or equal to
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225% of the income eligibility guideline $1,750
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Greater than 225% but less than or equal to
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250% of the income eligibility guideline $1,000
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Greater than 250% of the income eligibility guideline $500
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(5) The full-year scholarship amounts shown in the table in Subsection (4) apply to
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scholarships for all grades except kindergarten. The full-year scholarship amount for
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kindergarten shall be .55 times the amounts shown in the table in Subsection (4).
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(6) The board shall annually increase the full-year scholarship amounts shown in the
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table in Subsection (4) by the same percentage annual increase in the value of the weighted
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pupil unit established in Section
53A-17a-103
.
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(7) (a) Except as provided in Subsection (7)(b), upon review and receipt of
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documentation that verifies a student's admission to, or continuing enrollment and attendance
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at, a private school, the board shall make scholarship payments in four equal amounts no later
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than September 1, November 1, February 1, and April 15 of each school year in which a
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scholarship is in force.
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(b) In accordance with board rule, the board shall make a scholarship payment before
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the first quarterly payment of the school year, if a private school requires partial payment of
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tuition before the start of the school year to reserve space for a student admitted to the school.
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(8) A parent of a scholarship student shall notify the board if the student does not have
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continuing enrollment and attendance at an eligible private school.
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(9) Before scholarship payments are made, the board shall cross-check enrollment lists
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of scholarship students, school districts, and youth in custody to ensure that scholarship
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payments are not erroneously made.
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(10) (a) Scholarship payments shall be made by the board by individual warrant made
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payable to the student's parent and mailed by the board to the private school. The parent shall
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restrictively endorse the warrant to the private school for deposit into the account of the private
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school.
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(b) A person, on behalf of a private school, may not accept a power of attorney from a
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parent to sign a warrant referred to in Subsection (10)(a), and a parent of a scholarship student
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may not give a power of attorney designating a person, on behalf of a private school, as the
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parent's attorney in fact.
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Section 7.
Section
53A-1a-807
is enacted to read:
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53A-1a-807. Mitigation monies.
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(1) As provided in this section, a school district shall receive monies to mitigate
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potential impacts due to the unplanned reduction in revenues resulting from the transfer of
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scholarship students from the district to a private school.
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(2) A school district shall retain in enrollment for purposes of receiving funds under
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the Minimum School Program each scholarship student that:
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(a) transfers from the school district to a private school; and
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(b) resides within the boundaries of the school district.
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(3) Each transferred scholarship student meeting the criteria of Subsection (2) shall be
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retained in enrollment:
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(a) for five years following the transfer; or
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(b) until the student transfers back to the school district, if the student transfers back to
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the school district within five years.
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(4) For each year a school district retains in enrollment transferred scholarship students
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as provided in this section, the board shall deduct from Minimum School Program funds
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distributed to the school district an amount equal to the number of transferred scholarship
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students retained in enrollment times the average scholarship amount for scholarship students
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statewide.
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Section 8.
Section
53A-1a-808
is enacted to read:
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53A-1a-808. Transfer of balance.
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After awarding the scholarships and budgeting for mitigation monies under this part,
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the board shall transfer any remaining balance appropriated for scholarships or mitigation
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monies to the kindergarten and grades 1-12 basic programs established under Chapter 17a,
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Minimum School Program Act.
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Section 9.
Section
53A-1a-809
is enacted to read:
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53A-1a-809. Board to make rules.
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(1) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
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board shall make rules consistent with this part:
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(a) establishing the application process for the scholarship program;
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(b) establishing how the income of a scholarship student's parents shall be determined;
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and
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(c) implementing Section
53A-1a-807
.
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(2) By May 15, 2006, the board shall adopt rules establishing:
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(a) the application process for private schools and scholarship students; and
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(b) how the income of a scholarship student's parents shall be determined.
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Section 10.
Section
53A-1a-810
is enacted to read:
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53A-1a-810. Enforcement and penalties.
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(1) (a) The board shall require private schools to submit signed affidavits assuring the
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private school will comply with the requirements of this part.
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(b) If a school fails to submit a signed affidavit after having an opportunity to provide
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explanations and request delays, the board may:
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(i) deny the private school permission to enroll scholarship students; and
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(ii) interrupt disbursement of or withhold scholarship payments.
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(2) The board may investigate complaints and convene administrative hearings for an
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alleged violation of this part.
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(3) Upon a finding that this part was violated, the board may:
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(a) deny a private school permission to enroll scholarship students;
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(b) interrupt disbursement of or withhold scholarship payments; or
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(c) issue an order for repayment of scholarship payments fraudulently obtained.
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Section 11.
Section
53A-1a-811
is enacted to read:
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53A-1a-811. Limitation on regulation of private schools.
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Nothing in this part grants additional authority to any state agency or school district to
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regulate private schools except as expressly set forth in this part.
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Section 12.
Section
53A-1a-812
is enacted to read:
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53A-1a-812. Review by Legislative Auditor General.
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The Legislative Auditor General shall conduct a review and issue a report on the Parent
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Choice in Education Program after the conclusion of the 2009-10 school year.
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Section 13. Appropriation.
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As an ongoing appropriation subject to future budget constraints, $100,000 is
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appropriated from the General Fund for fiscal year 2005-06 to the State Board of Education for
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the administration of the Parent Choice in Education Act created in Title 53A, Chapter 1a, Part
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8.
Legislative Review Note
as of 1-25-06 3:51 PM
Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.