All Roll Calls
Yes: 232 • No: 2
UtahH.B. 4552025 General SessionHouseWALLET
Utah Fits All Scholarship Program Amendments
Sponsored By: Candice B. Pierucci (Republican)
Signed by Governor
EducationK-12 EducationState Board of Education
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Bill Overview
Analyzed Economic Effects
22 provisions identified: 10 benefits, 1 costs, 11 mixed.
Scholarship amounts and carryovers for families
Annual awards reach $8,000 for private school students, subject to legislative funding and program requirements. Home-based students can receive $4,000 at ages 5–11 or $6,000 at ages 12–18, measured on September 1. For every $3 left unused, $2 carries into the next scholarship year, up to a cumulative $2,000 limit. The program manager must verify continued eligibility before carrying funds forward. Other unused money returns to the program account.
Scholarship families face public school limits
Before receiving a scholarship, students cannot be enrolled in a public school district or charter school. Covered statewide online courses are also barred, except for course participation allowed by Section 53F-6-409(7). Home-based students previously enrolled in public school must attest that they left to attend home school. Students in out-of-state military families must attest that they are not attending public school elsewhere while receiving the scholarship. The program must coordinate with both Carson Smith scholarship programs to prevent duplicate benefits.
Families face scholarship residency and relationship rules
Students must prove their primary Utah residence when applying, reapplying, or renewing. Proof can include a parent's current-year utility bill, mortgage statement, lease, or property tax record. A foster parent who has started adopting the child counts as a parent for program purposes. The law restricts opening accounts for relatives of program contractors' employees or officers.
Public school return ends scholarship funding
Parents must notify the manager within five business days of returning to a nonqualifying public school or choosing a provider's public-school courses. Before finding public-school reentry, the manager must give written notice and five business days to confirm or dispute enrollment. After reentry is determined, the remaining account balance must be removed within five business days, and further distributions stop. Parents can appeal with documents, and the manager must verify eligibility before removing it. The manager must promptly correct mistaken removals, keep removal and reinstatement records, and regularly report eligibility changes to the state board.
Contractor oversight protects family scholarship accounts
The state board must seek contractor proposals showing capacity, relevant education or finance experience, and an operating plan. Applicants must show no international-organization affiliation, data harvesting for redistribution, or direction of curriculum standards. After written violation notice, a contractor has 60 days to fix the problem and report the correction. The board can bar contractors that fail; barred contractors and those appealing a bar cannot accept state funds. Contractors appealing a bar can still manage accounts, and the board must prevent disruptions to accounts and enrollment. The board must set account and payment rules after a bar and can seek a replacement contractor.
Returning and lower-income students get priority
First priority goes to eligible students who used an account last year and submitted the required learning record or assessment. Second priority goes to eligible nonreturning students with family income at or below 300% of the federal poverty level. Third priority goes to eligible siblings of students using an account now or in the immediately previous school year. Lotteries decide awards within oversubscribed priority groups and distribute remaining awards.
Families face detailed scholarship income checks
Household income means parents' combined gross income when living together, or the claiming parent's gross income in single-parent or joint-custody cases. For income-based priority, a parent must consent to sharing state tax-return information. The Tax Commission must send it within 10 business days after receiving consent. Business-income checks require the latest filed business tax returns, year-to-date profit and loss statements, and owner draw or distribution records. While prior-year tax filings are pending, recent W-2s, a year-to-date pay stub, and an employer letter support conditional approval. Families must later provide the required tax and business-income records.
Families face reimbursement and payment safeguards
Nonapproved-provider reimbursements require a receipt showing cost, item or service, and provider; the expense must otherwise qualify for scholarship coverage. The expense must serve the student's education and occur while the student is not enrolled in public school. A home-based student's parent cannot qualify as a provider solely for their own child. Reimbursement is barred for intentional or substantial misstatements about cost or educational purpose, or when the student is not the exclusive user. Provider payments stop for intentional or substantial overpayment misstatements, late overpayment refunds, or routine failure to deliver promised services. Students must receive notice of stopped payments or denied reimbursements.
Families get correction time before disqualification
The manager must use a fair suspension process for intentional or substantial fund misuse or program violations by students or parents. Written notice to the family and financial administrator must explain that transactions, disbursements, and reimbursements are blocked. Families have 10 business days from notice to correct the issue; otherwise, the manager can disqualify the student. A student penalized for a parent's actions regains eligibility after placement with another parent or no longer living with that parent. Evidence of fraud must go to the Utah Attorney General for collection or criminal investigation.
Families get fee-free online scholarship payments
Parents get an online payment portal, with funds available within five business days after the financial administrator receives them. Scholarship distributions come in equal parts by July 31 and December 31, unless another payment schedule is authorized. Families cannot withdraw funds; payments go directly to approved providers except for authorized reimbursements. Contractors cannot charge application or processing fees or pass along third-party account fees. Funds left after a student exits support replacement awards capped at 75% in quarter two and 50% in quarter three. No replacement awards from those funds are allowed in quarter four, and the manager must oversee data privacy and cybersecurity.
Families get firm scholarship application deadlines
Applications open March 1 for existing scholarship students and April 1 for new students each year. Applications close May 1, and the manager must give decisions within 30 days after that deadline. The manager must set and communicate an offer acceptance deadline before July 1. Students who do not accept or deny their offer by that deadline lose it.
Families get spending options with limits
Scholarships cover arts and music coursework or supplements aligned with state core standards, plus instrument rentals—not purchases. Technology devices are covered only once every three years per student. Extracurricular spending is capped at 20% of the award, with another 20% allowed for physical education. Recreational-facility access qualifies only for the student's physical education. Families receiving awards under Section 53F-6-402(2)(c)(i) can cover one chaperone expense or pass per family. Educational supplements must serve clear learning goals, excluding entertainment, recreational equipment, food, furniture, household items, and general office supplies.
Families must document learning for renewal
For next year's award, a student or parent must submit a learning portfolio or the specified assessment results. The manager must receive it by May 31 or under an approved assessment schedule. Portfolio sharing is limited to the parent unless written consent allows sample use with identifying details removed. Parents exercising rights under Section 53F-6-410 must also follow the program's special-needs procedures.
Families keep education choices and provider flexibility
Scholarship students can change approved providers at any time. For midyear changes, the manager can divide funds based on enrollment or time receiving goods or services. State contracts must separate program administration from teaching services and preserve independent choices by parents and providers. Contracts and board rules cannot direct curriculum or impose nonessential contractor requirements; board rules also cannot control contractors' program operations.
Payment rules protect families’ scholarship funds
A dedicated state account holds appropriations, interest, and returned scholarship funds; payments depend on legislative funding. Scholarship funds normally go out in two equal payments, at the start and during the second half of the year. The manager can approve full payment upfront for private school tuition or immediate educational needs. The state board must transfer program appropriations to the manager within 10 business days after each scheduled distribution. Parents must report when students stop using a service funded for the entire school year; the manager must direct repayment efforts and credit recovered money to the student’s account.
Scholarship families get help and appeals
Before accepting applications, the manager must post an online handbook and update it as information changes. It must explain rules, approved expenses and providers, parent duties, contractor duties, and appeals. The manager must provide customer help, set response-time expectations, require adequate financial-administrator staffing, and track service results. Each decision against a student or parent must include an explanation of how to appeal. The manager must run the appeal process, including challenges to suspended or disqualified eligibility; a different outcome is not guaranteed.
Scholarship families keep access during contractor changes
When a contractor change is required, the Department of Operations temporarily coordinates the program until a new manager takes over. It must preserve accounts, provider approvals, payments, parent access, records, and reporting without changing policies or operations or directly handling scholarship funds. The state board must fund continuing contractors as the department directs, including a temporary financial provider only when needed. Transition spending stays within the administrative cap, and the department must report those expenses to the state board. Beginning May 7, 2025, unused transition administrative funds go to new contractors after procurement, or return to the restricted account when not needed.
Scholarship students get equal school access
Local public school agencies must treat scholarship students like enrolled students for auditions, sports, and other covered activities, without requiring enrollment. They cannot deny participation solely because of scholarship status or related liability concerns. Agencies must provide the same liability coverage when scholarship students receive their services and identify these students separately in school records. Fees for scholarship services must reflect actual costs and be consistent with fees for enrolled students. Under state board rules, agencies must publish itemized fee schedules, explain each charge, and update schedules annually.
Scholarship funds get audits and staff screening
The law removes earlier audit, financial-reporting, and state board report-review provisions while establishing revised oversight duties. The manager must arrange annual and random account audits by an independent certified public accountant using accepted auditing standards. The financial administrator must provide annual accountability reports and monthly financial, transaction, reconciliation, and exception reports. The manager must publish third-party administration contracts and fees, orient providers annually, manage rollovers, and track allowed spending. Contractors must obtain fingerprint-based background checks and ongoing monitoring for employees and officers; anyone found to risk proper fund use cannot handle scholarship money.
Scholarship managers and payment staff separate duties
Contracted program managers handle applications, eligibility, account records, provider coordination, and participant help under their contracts and program rules. A financial administrator uses secure systems to process payments under the manager’s direction. It pays only approved providers for approved expenses and cannot set policy or decide eligibility. It must keep transaction records, provide monthly and annual reports, handle refunds and payment changes, and cooperate with audits. One organization can fill both roles only if it qualifies for both and keeps the duties separate.
Scholarship providers face reporting and refund rules
Private schools with fewer than 150 students and public school providers must submit information to both program contractors. Private programs and services must complete orientation before receiving funds and keep that training current. Covered schools, programs, and services cannot give families direct refunds or rebates; refunds must pass through the financial administrator into scholarship accounts. Public school providers must separate scholarship enrollment from public-school enrollment, submit verifications, and retain records. Specific public-provider rules remain allowed despite the general limit on added provider regulation. The Department of Operations must establish reporting, review, recordkeeping, issue-tracking, and training processes to prevent double counting and mistaken eligibility removals.
Scholarship administration loses separate dollar cap
The program manager can use up to 5% of legislative program appropriations for administration. The law removes the separate $2.5 million cap. This permits more administrative spending when 5% exceeds that former cap, but the 5% ceiling still applies. Using that added room supports operations but leaves less of the appropriation for scholarships.
Sponsors & Cosponsors
Sponsor
Candice B. Pierucci
Republican • House
Cosponsors
Kirk A. Cullimore
Republican • Senate
Roll Call Votes
House vote • 3/3/2025
House/ concurs with Senate amendment
Yes: 66 • No: 0
Senate vote • 2/28/2025
Senate/ passed 3rd reading
Yes: 25 • No: 1
Senate vote • 2/27/2025
Senate/ passed 2nd reading
Yes: 26 • No: 1
Senate vote • 2/26/2025
Senate Comm - Amendment Recommendation
Yes: 4 • No: 0
Senate vote • 2/26/2025
Senate Comm - Favorable Recommendation
Yes: 6 • No: 0
House vote • 2/24/2025
House/ passed 3rd reading
Yes: 69 • No: 0
House vote • 2/24/2025
House/ uncircled
Yes: 0 • No: 0
House vote • 2/24/2025
House/ substituted
Yes: 0 • No: 0
House vote • 2/24/2025
House/ floor amendment
Yes: 0 • No: 0
House vote • 2/21/2025
House/ circled
Yes: 0 • No: 0
House vote • 2/13/2025
House Comm - Substitute Recommendation
Yes: 11 • No: 0
House vote • 2/13/2025
House Comm - Amendment Recommendation
Yes: 12 • No: 0
House vote • 2/13/2025
House Comm - Favorable Recommendation
Yes: 13 • No: 0
House vote • Unknown
House/ floor amendment
Yes: 0 • No: 0
House vote • Unknown
House/ uncircled
Yes: 0 • No: 0
House vote • Unknown
House/ substituted
Yes: 0 • No: 0
House vote • Unknown
House/ circled
Yes: 0 • No: 0
Actions Timeline
Governor Signed
3/6/2025House/ to Governor
3/5/2025HouseHouse/ received enrolled bill from Printing
3/5/2025HouseHouse/ enrolled bill to Printing
3/5/2025HouseEnrolled Bill Returned to House or Senate
3/5/2025Draft of Enrolled Bill Prepared
3/4/2025Bill Received from House for Enrolling
3/4/2025House/ signed by Speaker/ sent for enrolling
3/4/2025HouseHouse/ received from Senate
3/4/2025HouseSenate/ to House
3/3/2025SenateSenate/ signed by President/ returned to House
3/3/2025SenateSenate/ received from House
3/3/2025SenateHouse/ to Senate
3/3/2025HouseHouse/ concurs with Senate amendment
3/3/2025HouseHouse/ placed on Concurrence Calendar
2/28/2025HouseHouse/ received from Senate
2/28/2025HouseSenate/ to House with amendments
2/28/2025SenateSenate/ passed 3rd reading
2/28/2025SenateSenate/ 3rd reading
2/28/2025SenateSenate/ passed 2nd reading
2/27/2025SenateSenate/ 2nd reading
2/27/2025SenateSenate/ placed on 2nd Reading Calendar
2/27/2025SenateSenate/ comm rpt/ amended
2/27/2025SenateSenate Comm - Favorable Recommendation
2/26/2025SenateSenate Comm - Amendment Recommendation
2/26/2025Senate
Bill Text
Enrolled
3/5/2025
Amended 2/27/2025 08:02:225
2/27/2025
Amended 2/24/2025 11:02:473
2/24/2025
Substitute #2
2/24/2025
Amended 2/14/2025 10:02:168
2/14/2025
Substitute #1
2/13/2025
Introduced
2/7/2025