Carson Smith Opportunity Scholarship Program Amendments

55
53E-7-401
53E-7-402
53E-7-404
53E-7-405
53E-7-407
53E-7-408
53E-7-408.5
59-1-403
59-7-625
59-10-1041
0
Carson Smith Opportunity Scholarship Program Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: R. Neil Walter
LONG TITLE
General Description:
This bill amends provisions of certain scholarship programs.
Highlighted Provisions:
This bill:
eliminates income based eligibility requirements for the scholarship;
removes scholarship eligibility for a sibling;
aligns the scholarship requirements with the Utah Fits All Scholarship Program;
allows the scholarship granting organization to approve qualified providers and private
schools;
requires the scholarship granting organization to ensure physical education and
extracurricular caps are followed;
amends the definition of scholarship expense to be the same across multiple scholarship
programs;
establishes primary residency verification to be eligible for a scholarship;
creates a deadline for an eligible student to accept the scholarship that the scholarship
granting organization determines;
clarifies entities that are not eligible to be a qualified provider under the scholarship
program; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
53E-7-401
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 466
53E-7-402
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 466
53E-7-404
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 466
53E-7-405
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 466
53E-7-407
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 466
53E-7-408
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 466
53E-7-408.5
Effective
05/06/26
, as enacted by Laws of Utah 2024, Chapter 466
59-1-403
Effective
05/06/26
Applies beginning
01/01/26
Partially Repealed
07/01/29
, as
last amended by Laws of Utah 2025, Chapters 182, 323, 400, and 498
59-7-625
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws of
Utah 2024, Chapter 466
59-10-1041
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 2024, Chapter 466
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
53E-7-401
is amended to read:
53E-7-401
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"The Carson Smith Opportunity Scholarship Program" or "program" means the program
established in Section
53E-7-402
.
(2)
"Eligible student" means
:
(a)

a student who:
(i)
(a)
is:
(A)
(i)
eligible to participate in public school, in kindergarten, or grades 1 through
12;
(B)
(ii)
enrolled in a qualifying school as defined in Subsection
(11)
(10)
;
(C)
(iii)
a home-based scholarship student as defined in Subsection
(6)
(4)
; or
(D)
(iv)
at least three years old before September 2 of the year the scholarship is
awarded;
(ii)
(b)
is a
primary
resident of the state;
(iii)
(c)
has a qualified disability identified under 20 U.S.C. Sec. 140(3) as determined
by:
(A)
(i)
having an IEP within the previous three years; or
(B)
(ii)
a multidisciplinary team evaluation described in Subsection
(7)
(5)
;
and
(iv)
(d)
during the school year for which the student is applying for the scholarship, is
not:
(A)
(i)
a student who receives a scholarship under the
legacy
Carson Smith
Scholarship Program created in Section
53F-4-302
;
or
(ii)
a student who receives a scholarship under the Utah Fits All Scholarship Program
created in Section
53F-4-302
; or
(B)
(iii)
enrolled as a public school student;
or
(e)
provides verification of primary residence in this state, through a parent's income tax
records, utility bill, lease agreement, or property tax records; and
(f)
for out-of-state military families through a parent attestation, is not enrolled in a
public school elsewhere while receiving the scholarship.
(b)
a student who:
(i)
meets the requirement of Subsections
(2)(a)(i)
and
(ii)
; and
(ii)
is a sibling of and resides in the same household as a student described in
Subsection
(2)(a)
if:
(A)
the student described in Subsection
(2)(a)
is a scholarship student and has
verified enrollment or intent to enroll at a qualifying school or participate in
services provided by a qualifying provider; and
(B)
the sibling is applying for a scholarship to attend the same qualifying school
or participate in the same services provided by a qualifying provider.
(3)
(a)
"Employee" means an individual working in a position in which the individual's
salary, wages, pay, or compensation, including as a contractor, is paid from:
(i)
program donations to a scholarship granting organization; or
(ii)
scholarship money allocated to a qualifying school or qualifying provider by a
scholarship granting organization under Section
53E-7-405
.
(b)
"Employee" does not include an individual who volunteers at the scholarship
granting organization, qualifying school, or qualifying provider.
(4)
"Family income" means the annual income of the parent, parents, legal guardian, or
legal guardians with whom a scholarship student lives.
(5)
"Federal poverty level" means the poverty level as defined by the most recently revised
poverty income guidelines published by the United States Department of Health and
Human Services in the Federal Register.
(6)
(4)
"Home-based scholarship student" means a student who:
(a)
is eligible to participate in public school, in kindergarten or grades 1 through 12;
(b)
is
attests to being
excused from enrollment in an LEA
in accordance with Section
53G-6-204

to attend a home school; and
(c)
receives a benefit from a scholarship under the program.
(7)
(5)
"Multidisciplinary evaluation team" means two or more individuals:
(a)
who are qualified in two or more separate disciplines or professions; and
(b)
who evaluate a child.
(8)
(6)
"Officer" means:
(a)
a member of the board of a scholarship granting organization, qualifying school, or
qualifying provider; or
(b)
the chief administrative officer of a scholarship granting organization , qualifying
school, or qualifying provider.
(7)
"Primary residence" means the one location where an individual resides for the majority
of the year.
(9)
(8)
"Program donation" means a donation to the program under Section
53E-7-405
.
(10)
(9)
"Qualifying provider" means:
(a)
an entity that:
(i)
is not a public school and is autonomous and not an agent of the state, in
accordance with Section
53E-7-406
; and
(ii)
meets the requirement described in Section
53E-7-403
; and
(b)
is
an eligible service provider approved by the scholarship granting organization in
accordance with Section
53E-7-408.5
.
(11)
(10)
"Qualifying school" means a private school that:
(a)
provides kindergarten, elementary, or secondary education;
(b)
is approved by the state board under Section
53E-7-408
; and
(c)
meets the requirements described in Section
53E-7-403
.
(12)
(11)
"Relative" means a father, mother, husband, wife, son, daughter, sister, brother,
uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law,
sister-in-law, son-in-law, or daughter-in-law.
(13)
(12)
"Scholarship" means a grant awarded to an eligible student:
(a)
by a scholarship granting organization out of program donations
and appropriations
the Legislature provides
; and
(b)
for the purpose of paying for a scholarship expense.
(14)
(13)
(a)
"Scholarship expense" means an expense that a parent or eligible student
incurs in the education of the eligible student for goods or a service that a qualifying
school or qualifying provider provides or facilitates, including:
(a)
(i)
published tuition and fees of a qualifying school or qualifying provider;
(b)
(ii)
fees and instructional materials at a technical college;
(c)
(iii)
tutoring services;
(d)
(iv)
fees for after-school or summer education programs;
(e)
(v)
textbooks, curricula, or other instructional materials, including any
supplemental materials or associated online instruction that a curriculum,
qualifying provider, or a qualifying school recommends;
(f)
(vi)
educational software and applications;
(g)
(vii)
supplies or other equipment related to an eligible student's educational
needs;
(h)
(viii)
computer hardware or other technological devices that are intended
primarily for an eligible student's educational needs;
(i)
(ix)
fees for the following examinations, or for a preparation course for the
following examinations, that the scholarship granting organization approves:
(i)
(A)
a national norm-referenced or standardized assessment described in
Section
53F-6-410
, an advanced placement examination, or another similar
assessment;
(ii)
(B)
a state-recognized industry certification examination; and
(iii)
(C)
an examination related to college or university admission;
(j)
(x)
educational services for students with disabilities from a licensed or
accredited practitioner or provider, including occupational, behavioral, physical,
audiology, or speech-language therapies
, or other licensed or accredited
practitioners approved by the scholarship granting organization
;
(k)
(xi)
contracted services that the scholarship granting organization approves and
that an LEA provides, including individual classes, after-school tutoring services,
transportation, or fees or costs associated with participation in extracurricular
activities
, as long as the LEA does not require the scholarship student to enroll to
participate
;
(l)
(xii)
ride fees or fares for a fee-for-service transportation provider to transport the
eligible student to and from a qualifying school or qualifying provider, not to
exceed $750 in a given school year;
(m)
(xiii)
(A)
expenses related to extracurricular activities, field trips, educational
supplements,
physical education experiences,
and other educational experiences

not to exceed 20% of the total scholarship amount
;
or
and
(B)
the 20% maximum for expenses related to extracurricular activities and
physical education described in Subsection
(13)(a)(xiii)(A)
does not apply to
expenses related to physical therapy expenses;
(xiv)
physical therapy expenses that are required to facilitate educational services; or
(n)
(xv)
expenses
the scholarship granting organization approves in accordance with
Subsection
53E-7-405(3)
.
(b)
Scholarship expense does not include:
(i)
chaperone expenses;
(ii)
season tickets, annual passes, or subscriptions to entertainment venues; and
(iii)
the purchase of furniture.
(15)
(14)
"Scholarship granting organization" means an organization that is:
(a)
qualified as tax exempt under Section 501(c)(3), Internal Revenue Code; and
(b)
recognized through an agreement with the state board as a scholarship granting
organization, as described in Section
53E-7-404
.
(16)
(15)
"Scholarship student" means an eligible student, including a home-based
scholarship student, who receives a scholarship under this part.
(17)
(16)
"Value of the weighted pupil unit" means the amount established each year in the
enacted public education budget that is multiplied by the number of weighted pupil units
to yield the funding level for the basic state-supported school program.
Section 2. Section
53E-7-402
is amended to read:
53E-7-402
Effective
05/06/26
. Carson Smith Opportunity Scholarship Program.
(1)
There is established the Carson Smith Opportunity Scholarship Program under which a
parent may apply to a scholarship granting organization on behalf of the parent's student
for a scholarship to help cover the cost of a scholarship expense.
(2)
(a)
A scholarship granting organization shall award, in accordance with this part,
scholarships to eligible students.
(b)
In awarding scholarships, a scholarship granting organization shall give priority to
an eligible student described in Subsection 53E-7-401(1)(a) by:
(i)
establishing an August 10 deadline for an eligible student described in Subsection
53E-7-401(1)(b) to apply for a scholarship; and
(ii)
awarding a scholarship to an eligible student described in Subsection
53E-7-401(2)(b)
only if funds exist after awarding scholarships to all eligible
students described in Subsection
53E-7-401(2)(a)
who have applied and qualify.
(c)
Subject to available funds, a scholarship awarded to an eligible student described in
Subsection
53E-7-401(2)(b)
shall be for a similar term as a scholarship awarded to
the eligible student's sibling.
(3)
A scholarship granting organization shall determine a full-year scholarship award to pay
for the cost of one or more scholarship expenses in an amount not more than
:
(a)
for an eligible student described in Subsection
53E-7-401(2)(a)

, for a student
who
is:
(i)
(a)
in kindergarten through grade 12
and whose family income is:
, the value of the
weighted pupil unit multiplied by 2.5; and
(A)
at or below 185% of the federal poverty level, the value of the weighted pupil
unit multiplied by 2.5;
(B)
except as provided in Subsection (3)(a)(i)(C), above 185% of the federal
poverty level, the value of the weighted pupil unit multiplied by two; or
(C)
above 185% of the federal poverty level and the eligible student would have
received an average of 180 minutes per day or more of special education
services in a public school before transferring to a private school, the value of
the weighted pupil unit multiplied by 2.5; or
(ii)
(b)
in preschool
,
:
(i)
for full-time enrollment,
the value of the weighted pupil unit; or
(ii)
for part-time enrollment, the value of the weighted pupil unit multiplied by 0.55.
(b)
for an eligible student described in Subsection
53E-7-401(2)(b)
, half the value of the
weighted pupil unit.
(4)
(a)
A scholarship granting organization shall:
(i)
establish and communicate to an eligible student a deadline by which the eligible
student must accept or deny the scholarship offer; and
(ii)
communicate to an eligible student that failure to respond by the deadline
described in (4)(a)(i) may result in forfeiture of the scholarship offer.
(b)
The State Tax Commission may, upon request, provide state individual income tax
information to a scholarship granting organization for residence verification purposes
regarding a given individual if:
(i)
the individual voluntarily provides the individual's social security number to the
scholarship granting organization; and
(ii)
the individual consents in writing to the sharing of state individual income tax
and residence information solely for the purpose of residency verification
purposes.
(c)
The State Tax Commission shall create and implement a residency verification
process and tool to facilitate this verification process.
(4)
(5)
Eligibility for a scholarship as determined by a multidisciplinary evaluation team
under this program does not establish eligibility for an IEP under the Individuals with
Disabilities Education Act, Subchapter II, 20 U.S.C. Secs. 1400 to 1419, and is not
binding on any LEA that is required to provide an IEP under the Individuals with
Disabilities Education Act.
(5)
(6)
The scholarship granting organizations shall prepare and disseminate information
on the program to a parent applying for a scholarship on behalf of a student.
Section 3. Section
53E-7-404
is amended to read:
53E-7-404
Effective
05/06/26
. State board duties.
(1)
The state board shall:
(a)
publish on the state board's website:
(i)
information about the program; and
(ii)
information about each scholarship granting organization;
(b)
conduct a financial review or audit of a scholarship granting organization, if the state
board receives evidence of fraudulent practice by the scholarship granting
organization;
(c)
conduct a criminal background check on each scholarship granting organization
employee and scholarship granting organization officer;
(d)
establish uniform financial accounting standards for scholarship granting
organizations;
and
(e)
in accordance with Section
53E-1-202.1
, annually submit a report on the program to
the Public Education Appropriations Subcommittee that includes:
(i)
administrative costs of the program;
(ii)
the number of scholarship students that are eligible students
described in
Subsection
53E-7-401(2)(a)
and the number of scholarship students that are
eligible students described in Subsection
53E-7-401(2)(b)

from each school
district;
(iii)
standards used by the scholarship granting organization to determine whether a
student is an eligible student; and
(iv)
savings to the state and LEAs as a result of scholarship students exiting the
public school system.
(2)
(a)
In accordance with Subsection
(3)
and Title 63G, Chapter 6a, Utah Procurement
Code, the state board shall issue a request for proposals and enter into at least one
agreement with an organization that is qualified as tax exempt under Section
501(c)(3), Internal Revenue Code, to be recognized by the state board as a
scholarship granting organization.
(b)
An organization that responds to a request for proposals described in Subsection
(2)(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 that a student
is an eligible student under this part; and
(iv)
a description of the organization's proposed scholarship application process.
(3)
(a)
The state board shall enter into an agreement described in Subsection
(2)(a)
with
one scholarship granting organization on or before January 1, 2021.
(b)
The state board may enter into an agreement described in Subsection
(2)(a)
with
additional scholarship granting organizations after January 1, 2023, if the state board
makes rules regarding how multiple scholarship granting organizations may issue tax
credit certificates in accordance with Section
53E-7-407
.
(c)
(i)
No later than 10 days after the day on which the state board enters into an
agreement with a scholarship granting organization, the state board shall forward
the name and contact information of the scholarship granting organization to the
State Tax Commission.
(ii)
If, under Subsection
(4)(c)(i)
, the state board bars a scholarship granting
organization from further participation in the program, the state board shall, no
later than 10 days after the day on which the state board bars the scholarship
granting organization, forward the name and contact information of the barred
scholarship granting organization to the State Tax Commission.
(4)
(a)
If the state board determines that a scholarship granting organization has violated
a provision of this part or state board rule, the state board shall send written notice to
the scholarship granting organization explaining the violation and the remedial action
required to correct the violation.
(b)
A scholarship granting organization that receives a notice described in Subsection
(4)(a)
shall, no later than 60 days after the day on which the scholarship granting
organization receives the notice, correct the violation and report the correction to the
state board.
(c)
(i)
If a scholarship granting organization that receives a notice described in
Subsection
(4)(a)
fails to correct a violation in the time period described in
Subsection
(4)(b)
, the state board may bar the scholarship granting organization
from further participation in the program.
(ii)
A scholarship granting organization may appeal a decision made by the state
board under Subsection
(4)(c)(i)
in accordance with Title 63G, Chapter 4,
Administrative Procedures Act.
(d)
A scholarship granting organization may not accept program donations while the
scholarship granting organization:
(i)
is barred from participating in the program under Subsection
(4)(c)(i)
; or
(ii)
has an appeal pending under Subsection
(4)(c)(ii)
.
(e)
A scholarship granting organization that has an appeal pending under Subsection
(4)(c)(ii)
may continue to administer scholarships from previously donated program
donations during the pending appeal.
(5)
The state board shall provide for a process for a scholarship granting organization to
report information as required under Section
53E-7-405
.
(6)
The state board shall make rules in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, to administer the program, including rules for:
(a)
the administration of scholarships to a qualifying school or qualifying provider
receiving scholarship money from a scholarship granting organization that is barred
from participating in the program under Subsection
(4)(c)(i)
;
(b)
when an eligible student does not continue in enrollment at a qualifying school or
participation in services provided by a qualifying provider:
(i)
requiring the scholarship granting organization to:
(A)
notify the state board; and
(B)
obtain reimbursement of scholarship money from the qualifying school in
which the eligible student is no longer enrolled or qualifying provider in which
the eligible student is no longer participating; and
(ii)
requiring the qualifying school or qualifying provider in which the eligible
student is no longer enrolled to reimburse scholarship money to the scholarship
granting organization;
(c)
audit and report requirements as described in Section
53E-7-405
; and
(d)
requiring the scholarship granting organization, in accordance with the Family
Educational Rights and Privacy Act, 20 U.S.C. Sec. 1232g, to submit to the state
board:
(i)
the number of scholarship students that are eligible students
described in
Subsection
53E-7-401(2)(a)
and the number of scholarship students that are
eligible students described in Subsection
53E-7-401(2)(b)

from each school
district;
(ii)
standards used to determine whether a student is an eligible student; and
(iii)
any other information requested by the Public Education Appropriations
Subcommittee for the state board to include in the annual report described in
Section
53E-1-202.1
.
Section 4. Section
53E-7-405
is amended to read:
53E-7-405
Effective
05/06/26
. Program donations -- Scholarship granting
organization requirements -- Legislative appropriations.
(1)
A person that makes a donation to a scholarship granting organization to help fund
scholarships through the program may be eligible to receive a nonrefundable tax credit
as described in Sections
59-7-625
and
59-10-1041
.
(2)
In accordance with Section
53E-7-404
, an organization may enter into an agreement
with the state board to be a scholarship granting organization.
(3)
A scholarship granting organization shall:
(a)
accept program donations and allow a person that makes a program donation to
designate a qualifying school or qualifying provider to which the donation shall be
directed for scholarships;
(b)
adopt an application process in accordance with Subsection
(5)
;
(c)
review scholarship applications and determine scholarship awards;
(d)
allocate scholarship money to a scholarship student's parent or, on the parent's
behalf, to a qualifying school or qualifying provider in which the scholarship student
is enrolled or participates;
(e)
adopt a process, with state board approval, that allows a parent to use a scholarship to
pay for a nontuition scholarship expense for the scholarship student;
(f)
ensure that during the state fiscal year:
(i)
at least 92% of the scholarship granting organization's revenue from program
donations and other funding sources are spent on scholarships;
(ii)
up to 5% of the scholarship granting organization's revenue from program
donations and other funding sources are spent on administration of the program;
(iii)
up to 3% of the scholarship granting organization's revenue from program
donations and other funding sources are spent on marketing and fundraising costs;
and
(iv)
all revenue from interest or investments is spent on scholarships;
(g)
carry forward no more than 60% of the scholarship granting organization's funds,
less funds for a scholarship that has been awarded, and funds expended for
administration and marketing, from the state fiscal year in which the scholarship
granting organization received the funds to the following state fiscal year;
(h)
at the end of a state fiscal year, remit to the state treasurer donation amounts greater
than the amount described in Subsection
(3)(g)
;
(i)
prohibit a scholarship granting organization employee or officer from handling,
managing, or processing program donations or other funds, if, based on a criminal
background check conducted by the state board in accordance with Section
53E-7-404
,
the state board identifies the employee or officer as posing a risk to the appropriate
use of program donations or other funds;
(j)
ensure that a scholarship can be transferred during the school year to a different
qualifying school or qualifying provider that accepts the scholarship student;
(k)
report to the state board on or before November 1 of each year the following
information, prepared by a certified public accountant:
(i)
the name and address of the scholarship granting organization;
(ii)
the total number and total dollar amount of program donations and other funding
sources that the scholarship granting organization received during the previous
calendar year;
(iii)
(A)
the total number and total dollar amount of scholarships the scholarship
granting organization awarded during the previous state fiscal year to eligible
students
described in Subsection
53E-7-401(2)(a)
; and
(B)
the total number and total dollar amount of scholarships the scholarship
granting organization awarded during the previous state fiscal year to eligible
students described in Subsection
53E-7-401(2)(b)
; and
(iv)
the percentage of first-time scholarship recipients who were enrolled in a public
school during the previous school year or who entered kindergarten or a higher
grade for the first time in
Utah
this state
;
(l)
issue tax credit certificates as described in Section
53E-7-407
;
and
(m)
(i)
require a parent to notify a scholarship granting organization if the parent's
scholarship recipient:
(A)
receives scholarship money for tuition expenses; and
(B)
does not have continuing enrollment and attendance at a qualifying school; or
(ii)
has transitioned to be a home-based student
.
;
(n)
verify an applicants Utah residency through:
(i)
the State Tax Commission as described in Section
53E-7-402
; or
(ii)
at least two forms of documentation, including a:
(A)
current Utah drivers license;
(B)
valid Utah voter registration card;
(C)
utility bill dated within the last 60 days;
(D)
current Utah vehicle registration; or
(E)
Utah tax return from the previous year;
(o)
ensure that combined expenses from extracurricular activities and physical education
do not exceed 20% of the total scholarship amount;
(p)
facilitate an appeals process for denied reimbursements;
(q)
be prohibited from charging any processing fees to an eligible student or pass on
third-party fees related to the use or management of scholarship funds; and
(r)
conduct an annual independent audit and publicly disclose all third-party contracts
and fees.
(4)
The state treasurer shall deposit the money described in Subsection
(3)(h)
into the
Income Tax Fund.
(5)
(a)
An application for a scholarship shall contain an acknowledgment by the
applicant's parent that the qualifying school or qualifying provider selected by the
parent for the applicant to attend or participate in using a scholarship is capable of
providing the level of disability services required for the student.
(b)
A scholarship application form shall contain the following statement:
"I acknowledge that:
(1) A private school may not provide the same level of disability services that are provided
in a public school;
(2) I will assume full financial responsibility for the education of my scholarship recipient
if I accept this scholarship;
(3) Acceptance of this scholarship has the same effect as a parental refusal to consent to
services as described in 24 C.F.R. Sec. 300.300, issued under the Individuals with Disabilities
Education Act, 20 U.S.C. Sec. 1400 et seq.; and
(4) My child may return to a public school at any time."
(c)
Upon acceptance of a scholarship, the parent assumes full financial responsibility for
the education of the scholarship recipient.
(d)
Acceptance of a scholarship has the same effect as a parental refusal to consent to
services as described in 24 C.F.R. Sec. 300.300, issued under the Individuals with
Disabilities Education Act, 20 U.S.C. Sec. 1400 et seq.
(e)
The creation of the program or granting of a scholarship does not:
(i)
imply that a public school did not provide a free and appropriate public education
for a student; or
(ii)
constitute a waiver or admission by the state.
(6)
A scholarship granting organization shall demonstrate the scholarship granting
organization's financial accountability by annually submitting to the state board a
financial information report that:
(a)
complies with the uniform financial accounting standards described in Section
53E-7-404
; and
(b)
is prepared by a certified public accountant.
(7)
(a)
If a scholarship granting organization allocates $500,000 or more in scholarships
annually through the program, the
The
scholarship granting organization shall:
(i)
contract for an annual audit, conducted by a certified public accountant who is
independent from:
(A)
the scholarship granting organization; and
(B)
the scholarship granting organization's accounts and records pertaining to
program donations and other funding sources; and
(ii)
in accordance with Subsection
(7)(b)
, report the results of the audit to the state
board for review.
(b)
For the report described in Subsection
(7)(a)(ii)
, the scholarship granting
organization shall:
(i)
include the scholarship granting organization's financial statements in a format
that meets generally accepted accounting standards; and
(ii)
submit the report to the state board no later than November 1.
(c)
The certified public accountant shall conduct an audit described in Subsection
(7)(a)(i)
in accordance with generally accepted auditing standards and rules made by
the state board.
(d)
(i)
The state board shall review a report submitted under this section and may
request that the scholarship granting organization revise or supplement the report
if the report is not in compliance with the provisions of this Subsection
(7)
or rules
adopted by the state board.
(ii)
A scholarship granting organization shall provide a revised report or supplement
to the report no later than 45 days after the day on which the state board makes a
request described in Subsection
(7)(d)(i)
.
(8)
(a)
A scholarship granting organization may not allocate scholarship money to a
qualifying school or qualifying provider if:
(i)
the scholarship granting organization determines that the qualifying school or
qualifying provider intentionally or substantially misrepresented information on
overpayment;
(ii)
the qualifying school or qualifying provider fails to refund an overpayment in a
timely manner; or
(iii)
the qualifying school or qualifying provider routinely fails to provide scholarship
recipients with promised educational goods or services.
(b)
A scholarship granting organization shall notify a scholarship recipient if the
scholarship granting organization stops allocation of the recipient's scholarship
money to a qualifying school or qualifying provider under Subsection
(8)(a)
.
(9)
If a scholarship recipient transfers to another qualifying school or qualifying provider
during the school year, the scholarship granting organization may prorate scholarship
money between the qualifying schools or qualifying providers according to the time the
scholarship recipient spends at each school or each provider.
(10)
A scholarship granting organization may not:
(a)
award a scholarship to a relative of the scholarship granting organization's officer; or
(b)
allocate scholarship money to a qualifying school or qualifying provider at which the
scholarship recipient has a relative who is an officer or an administrator of the
qualifying school or qualifying provider.
(11)
The Legislature may appropriate funds to the board to be distributed in an equal
amount to each scholarship granting organization for the same purposes program
donations are used.
Section 5. Section
53E-7-407
is amended to read:
53E-7-407
Effective
05/06/26
. Tax credit certificates issued by a scholarship
granting organization.
(1)
In accordance with this section, a scholarship granting organization shall provide a tax
credit certificate, on a form provided by the State Tax Commission, to a person that
makes a donation as described in Section
53E-7-405
.
(2)
(a)
The scholarship granting organization shall provide the information from a
completed tax credit certificate to the State Tax Commission electronically and in a
manner prescribed by the State Tax Commission
on or before the end of each April
following the close of the taxable year for which a tax credit certificate is issued
.
(b)
A scholarship granting organization shall issue a tax credit certificate within 30 days
after the day on which a person makes a donation to the program.
(3)
(a)
Before accepting a donation to the program from a person, the scholarship
granting organization shall provide the person with notice:
(i)
that the donation may not be eligible for a tax credit;
(ii)
of the process described in Subsection
(3)(b)
; and
(iii)
of the total amount of tax credit certificates that the scholarship granting
organization has issued for the calendar year.
(b)
During a calendar year, a scholarship granting organization shall:
(i)
issue tax credit certificates in the order that the scholarship granting organization
received a corresponding donation; and
(ii)
track the total amount of program donations received during the year as
corresponding tax credit certificates are issued.
(c)
If a scholarship granting organization accepts a donation that, when added to the
current total amount of program donations received that year, will exceed the
program donations cap described in Subsection
(4)
, the scholarship granting
organization shall issue a tax credit certificate in the amount that is the difference
between the program donations cap and the total amount of program donations
received before the donation was received.
(4)
(a)
The program donations cap for the 2021 calendar year is $5,940,000.
(b)
For a calendar year after 2021, the state board shall calculate the program donations
cap as follows:
(i)
if the total program donations for the previous calendar year exceed 90% of the
cap amount for that calendar year, the cap for the current calendar year is the cap
amount for the previous calendar year increased by 10% plus a percentage equal
to the percentage of growth in the participation of the program from the previous
calendar year; or
(ii)
if the total program donations for the previous calendar year did not exceed 90%
of the cap amount for that calendar year, the cap for the current calendar year is
the same as the cap amount for the previous calendar year.
(5)
A person that receives a tax credit certificate in accordance with this section shall retain
the certificate for the same time period a person is required to keep books and records
under Section
59-1-1406
.
(6)
Except as provided in Subsection
(7)
, if a tax credit is issued under this Section for a
donation, the tax credit shall be issued for the taxable year in which the donation is made.
(7)
Notwithstanding Subsection
(6)
, if a tax credit is issued under this section for a
donation, a tax credit may be issued for the previous taxable year if:
(a)
the donation is made on or before the fifteenth day of April following the end of the
previous taxable year;
(b)
the person receiving the tax credit certifies in writing that they will not claim a
deduction or credit on the person's federal income tax return for the donation amount
to the extent that they claim a tax credit under Section
59-7-625
or Section
59-10-1041
for the same donation; and
(c)
the scholarship granting organization includes in the report described in Subsection
(2)
, the date the donation was made.
(8)
For purposes of calculating the donation cap described in Subsection
(4)
, a tax credit
amount shall count against the donation cap for the year the tax credit may be claimed.
Section 6. Section
53E-7-408
is amended to read:
53E-7-408
Effective
05/06/26
. Eligible private schools.
(1)
To be eligible
to enroll a scholarship student
to receive scholarship funds on behalf of a
scholarship student as an eligible school
, a private school shall:
(a)
have a physical location in
Utah
the state
where the scholarship students attend
classes and have direct contact with the school's teachers;
(b)
(i)
contract with an independent licensed certified public accountant to conduct an
Agreed Upon Procedures engagement as adopted by the state board, or obtain an
audit and report from a licensed independent certified public accountant that
conforms with the following requirements:
(A)
the audit shall be performed in accordance with generally accepted auditing
standards;
(B)
the financial statements shall be presented in accordance with generally
accepted accounting principles; and
(C)
the audited financial statements shall be as of a period within the last 12
months; and
(ii)
submit the audit report or report of the agreed upon procedure to the state board
when the private school applies to accept scholarship
students
funds
;
(c)
comply with the antidiscrimination provisions of 42 U.S.C. 2000d;
(d)
meet state and local health and safety laws and codes;
(e)
provide a written disclosure to the parent of each prospective student, before the
student is enrolled, of:
(i)
the special education services that will be provided to the
scholarship
student,
including the cost of those services;
(ii)
tuition costs;
(iii)
additional fees a parent will be required to pay during the school year; and
(iv)
the skill or grade level of the curriculum in which the prospective student will
participate;
(f)
(i)
administer an annual assessment of each scholarship student's academic
progress; and
(ii)
report the results of the assessment described in Subsection
(1)(f)(i)
to the
scholarship student's parent;
(g)
employ or contract with teachers who:
(i)
hold baccalaureate or higher degrees;
(ii)
have at least three years of teaching experience in public or private schools; or
(iii)
have the necessary skills, knowledge, or expertise that qualifies the teacher to
provide instruction:
(A)
in the subject or subjects taught; and
(B)
to the special needs students taught;
(h)
maintain documentation demonstrating that teachers at the private school meet the
qualifications described in Subsection
(1)(g)
;
(i)
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 current Utah educator license issued by the state
board under Chapter 6, Education Professional Licensure;
(ii)
a contract employee; and
(iii)
a volunteer who is given significant unsupervised access to a student in
connection with the volunteer's assignment; and
(j)
provide to the parent of a scholarship student the relevant credentials of the teachers
who will be teaching the scholarship student.
(2)
A private school
described in Subsection
(1)

is not eligible to
enroll
receive
scholarship
students
funds
if:
(a)
the private school requires a student to sign a contract waiving the student's rights to
transfer to another qualifying school during the school year;
(b)
the audit report submitted under Subsection
(1)(b)
contains a going concern
explanatory paragraph;
(c)
the report of the agreed upon procedures submitted under Subsection
(1)(b)
shows
that the private school does not have adequate working capital to maintain operations
for the first full year, as determined under Subsection
(1)(b)
; or
(d)
the private school charges a scholarship student more in tuition or fees than another
student based solely upon the scholarship student being a scholarship recipient under
this part.
(3)
Residential treatment facilities licensed by the state are not eligible to enroll scholarship
students.
(4)
A private school intending to enroll scholarship students
and receive scholarship funds

shall
:

(a)
submit an application to the state board
.
; and
(b)
agree to not refund, rebate, or share scholarship funds with a scholarship student or
scholarship student's parent in any manner except for remittances or refunds
processed through the scholarship granting organization to a scholarship account in
accordance with this part and procedures that the scholarship granting organization
establishes.
(5)
The state board shall:
(a)
approve a private school's application to enroll scholarship students, if the private
school meets the eligibility requirements of this section; and
(b)
publish on the state board's website, a list of private schools approved under this
section.
(6)
A private school approved under this section that changes ownership shall
cease
operation as an eligible school until the private school
:
(a)
submit a new application to the state board; and
(b)
demonstrate
demonstrates
that the private school continues to meet the eligibility
requirements of this section.
Section 7. Section
53E-7-408.5
is amended to read:
53E-7-408.5
Effective
05/06/26
. Eligible service provider.
(1)
To be an eligible service provider, a private program or service:
(a)
shall provide to the scholarship granting organization:
(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 directly to
a scholarship student; and
(iv)
subject to Subsection
(2)
, any other information as required by the scholarship
granting organization;
(b)
shall comply with the antidiscrimination provisions of 42 U.S.C. Sec. 2000d; and
(c)
may not act as a consultant, clearing house, or intermediary that connects a
scholarship student with or otherwise facilitates the student's engagement with a
program or service that another entity provides.
(2)
The scholarship granting organization shall adopt policies that maximize the number of
eligible service providers, including accepting new providers throughout the school year,
while ensuring education programs or services provided through the program meet
student needs and otherwise comply with this part.
(3)
A private program or service intending to receive scholarship funds shall:
(a)
submit an application to the scholarship granting organization;
and
(b)
complete all required orientation programs established by the scholarship granting
organization before receiving any scholarship funds and maintain a current
orientation status throughout participation in the program; and
(b)
(c)
agree to not refund, rebate, or share scholarship funds with scholarship students
or scholarship students' parents in any manner except remittances or refunds to a
scholarship account in accordance with this part and procedures that the program
manager establishes.
(4)
The scholarship granting organization shall:
(a)
if the private program or service meets the eligibility requirements of this section,
recognize the private program or service as an eligible service provider and approve a
private program or service's application to receive scholarship funds on behalf of a
scholarship student; and
(b)
make available to the public a list of eligible service providers approved under this
section.
(5)
A private program or service approved under this section that changes ownership shall:
(a)
cease operation as an eligible service provider until:
(i)
the program or service submits a new application to the scholarship granting
organization; and
(ii)
the scholarship granting organization approves the new application; and
(b)
demonstrate that the private program or service continues to meet the eligibility
requirements of this section.
(6)
The following are not eligible service providers:
(a)
a parent of a home-based scholarship student or a home school student solely in
relation to the parent's child; or
(b)
any other individual that does not meet the requirements described in this section.
(7)
Nothing prohibits an entity that provides education services under the Statewide Online
Education Program described in Title 53F, Chapter 4, Part 5, Statewide Online
Education Program, from operating as an eligible service provider under this part to
provide education services to scholarship students.
Section 8. Section
59-1-403
is amended to read:
59-1-403
Effective
05/06/26
Applies beginning
01/01/26
Partially Repealed
07/01/29
.
Confidentiality -- Exceptions -- Penalty -- Application to property tax.
(1)
As used in this section:
(a)
"Distributed tax, fee, or charge" means a tax, fee, or charge:
(i)
the commission administers under:
(A)
this title, other than a tax under Chapter 12, Part 2, Local Sales and Use Tax
Act;
(B)
Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(C)
Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(D)
Section
19-6-805
;
(E)
Section
63H-1-205
; or
(F)
Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
Charges; and
(ii)
with respect to which the commission distributes the revenue collected from the
tax, fee, or charge to a qualifying jurisdiction.
(b)
"GOEO" means the Governor's Office of Economic Opportunity created in Section
63N-1a-301
.
(c)
"Qualifying jurisdiction" means:
(i)
a county, city, or town;
(ii)
the military installation development authority created in Section
63H-1-201
;
(iii)
the Utah Inland Port Authority created in Section
11-58-201
; or
(iv)
the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
.
(2)
(a)
Any of the following may not divulge or make known in any manner any
information gained by that person from any return filed with the commission:
(i)
a tax commissioner;
(ii)
an agent, clerk, or other officer or employee of the commission; or
(iii)
a representative, agent, clerk, or other officer or employee of any county, city, or
town.
(b)
An official charged with the custody of a return filed with the commission is not
required to produce the return or evidence of anything contained in the return in any
action or proceeding in any court, except:
(i)
in accordance with judicial order;
(ii)
on behalf of the commission in any action or proceeding under:
(A)
this title; or
(B)
other law under which persons are required to file returns with the
commission;
(iii)
on behalf of the commission in any action or proceeding to which the
commission is a party; or
(iv)
on behalf of any party to any action or proceeding under this title if the report or
facts shown by the return are directly involved in the action or proceeding.
(c)
Notwithstanding Subsection
(2)(b)
, a court may require the production of, and may
admit in evidence, any portion of a return or of the facts shown by the return, as are
specifically pertinent to the action or proceeding.
(d)
Notwithstanding any other provision of state law, a person described in Subsection
(2)(a)
may not divulge or make known in any manner any information gained by that
person from any return filed with the commission to the extent that the disclosure is
prohibited under federal law.
(3)
This section does not prohibit:
(a)
a person or that person's duly authorized representative from receiving a copy of any
return or report filed in connection with that person's own tax;
(b)
the publication of statistics as long as the statistics are classified to prevent the
identification of particular reports or returns; and
(c)
the inspection by the attorney general or other legal representative of the state of the
report or return of any taxpayer:
(i)
who brings action to set aside or review a tax based on the report or return;
(ii)
against whom an action or proceeding is contemplated or has been instituted
under this title; or
(iii)
against whom the state has an unsatisfied money judgment.
(4)
(a)
Notwithstanding Subsection
(2)
and for purposes of administration, the
commission may by rule, made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, provide for a reciprocal exchange of information
with:
(i)
the United States Internal Revenue Service; or
(ii)
the revenue service of any other state.
(b)
Notwithstanding Subsection
(2)
and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, made in accordance with Title
63G, Chapter 3, Utah Administrative Rulemaking Act, share information gathered
from returns and other written statements with the federal government, any other
state, any of the political subdivisions of another state, or any political subdivision of
this state, except as limited by Sections
59-12-209
and
59-12-210
, if the political
subdivision, other state, or the federal government grant substantially similar
privileges to this state.
(c)
Notwithstanding Subsection
(2)
and for all taxes except individual income tax and
corporate franchise tax, the commission may by rule, in accordance with Title 63G,
Chapter 3, Utah Administrative Rulemaking Act, provide for the issuance of
information concerning the identity and other information of taxpayers who have
failed to file tax returns or to pay any tax due.
(d)
Notwithstanding Subsection
(2)
, the commission shall provide to the director of the
Division of Environmental Response and Remediation, as defined in Section
19-6-402
, as requested by the director of the Division of Environmental Response
and Remediation, any records, returns, or other information filed with the
commission under Chapter 13, Motor and Special Fuel Tax Act, or Section
19-6-410.5
regarding the environmental assurance program participation fee.
(e)
Notwithstanding Subsection
(2)
, at the request of any person the commission shall
provide that person sales and purchase volume data reported to the commission on a
report, return, or other information filed with the commission under:
(i)
Chapter 13, Part 2, Motor Fuel; or
(ii)
Chapter 13, Part 4, Aviation Fuel.
(f)
Notwithstanding Subsection
(2)
, upon request from a tobacco product manufacturer,
as defined in Section
59-22-202
, the commission shall report to the manufacturer:
(i)
the quantity of cigarettes, as defined in Section
59-22-202
, produced by the
manufacturer and reported to the commission for the previous calendar year under
Section
59-14-407
; and
(ii)
the quantity of cigarettes, as defined in Section
59-22-202
, produced by the
manufacturer for which a tax refund was granted during the previous calendar
year under Section
59-14-401
and reported to the commission under Subsection
59-14-401(1)(a)(v)
.
(g)
Notwithstanding Subsection
(2)
, the commission shall notify manufacturers,
distributors, wholesalers, and retail dealers of a tobacco product manufacturer that is
prohibited from selling cigarettes to consumers within the state under Subsection
59-14-210(2)
.
(h)
Notwithstanding Subsection
(2)
, the commission may:
(i)
provide to the Division of Consumer Protection within the Department of
Commerce and the attorney general data:
(A)
reported to the commission under Section
59-14-212
; or
(B)
related to a violation under Section
59-14-211
; and
(ii)
upon request, provide to any person data reported to the commission under
Subsections
59-14-212(1)(a)
through
(c)
and Subsection
59-14-212(1)(g)
.
(i)
Notwithstanding Subsection
(2)
, the commission shall, at the request of a committee
of the Legislature, the Office of the Legislative Fiscal Analyst, or the Governor's
Office of Planning and Budget, provide to the committee or office the total amount of
revenue collected by the commission under Chapter 24, Radioactive Waste Facility
Tax Act, for the time period specified by the committee or office.
(j)
Notwithstanding Subsection
(2)
, the commission shall make the directory required by
Section
59-14-603
available for public inspection.
(k)
Notwithstanding Subsection
(2)
, the commission may share information with federal,
state, or local agencies as provided in Subsection
59-14-606(3)
.
(l)
(i)
Notwithstanding Subsection
(2)
, the commission shall provide the Office of
Recovery Services within the Department of Health and Human Services any
relevant information obtained from a return filed under Chapter 10, Individual
Income Tax Act, regarding a taxpayer who has become obligated to the Office of
Recovery Services.
(ii)
The information described in Subsection
(4)(l)(i)
may be provided by the Office
of Recovery Services to any other state's child support collection agency involved
in enforcing that support obligation.
(m)
(i)
Notwithstanding Subsection
(2)
, upon request from the state court
administrator, the commission shall provide to the state court administrator, the
name, address, telephone number, county of residence, and social security number
on resident returns filed under Chapter 10, Individual Income Tax Act.
(ii)
The state court administrator may use the information described in Subsection
(4)(m)(i)
only as a source list for the master jury list described in Section
78B-1-106
.
(n)
(i)
As used in this Subsection
(4)(n)
:
(A)
"Income tax information" means information gained by the commission that is
required to be attached to or included in a return filed with the commission
under Chapter 7, Corporate Franchise and Income Taxes, or Chapter 10,
Individual Income Tax Act.
(B)
"Other tax information" means information gained by the commission that is
required to be attached to or included in a return filed with the commission
except for a return filed under Chapter 7, Corporate Franchise and Income
Taxes, or Chapter 10, Individual Income Tax Act.
(C)
"Tax information" means income tax information or other tax information.
(ii)
(A)
Notwithstanding Subsection
(2)
and except as provided in Subsection
(4)(n)(ii)(B)
or
(C)
, the commission shall at the request of GOEO provide to
GOEO all income tax information.
(B)
For purposes of a request for income tax information made under Subsection
(4)(n)(ii)(A)
, GOEO may not request and the commission may not provide to
GOEO a person's address, name, social security number, or taxpayer
identification number.
(C)
In providing income tax information to GOEO, the commission shall in all
instances protect the privacy of a person as required by Subsection
(4)(n)(ii)(B)
.
(iii)
(A)
Notwithstanding Subsection
(2)
and except as provided in Subsection
(4)(n)(iii)(B)
, the commission shall at the request of GOEO provide to GOEO
other tax information.
(B)
Before providing other tax information to GOEO, the commission shall redact
or remove any name, address, social security number, or taxpayer identification
number.
(iv)
GOEO may provide tax information received from the commission in accordance
with this Subsection
(4)(n)
only:
(A)
as a fiscal estimate, fiscal note information, or statistical information; and
(B)
if the tax information is classified to prevent the identification of a particular
return.
(v)
(A)
A person may not request tax information from GOEO under Title 63G,
Chapter 2, Government Records Access and Management Act, or this section,
if GOEO received the tax information from the commission in accordance with
this Subsection
(4)(n)
.
(B)
GOEO may not provide to a person that requests tax information in
accordance with Subsection
(4)(n)(v)(A)
any tax information other than the tax
information GOEO provides in accordance with Subsection
(4)(n)(iv)
.
(o)
Notwithstanding Subsection
(2)
, the commission may provide to the governing board
of the agreement or a taxing official of another state, the District of Columbia, the
United States, or a territory of the United States:
(i)
the following relating to an agreement sales and use tax:
(A)
information contained in a return filed with the commission;
(B)
information contained in a report filed with the commission;
(C)
a schedule related to Subsection
(4)(o)(i)(A)
or
(B)
; or
(D)
a document filed with the commission; or
(ii)
a report of an audit or investigation made with respect to an agreement sales and
use tax.
(p)
Notwithstanding Subsection
(2)
, the commission may provide information
concerning a taxpayer's state income tax return or state income tax withholding
information to the Driver License Division if the Driver License Division:
(i)
requests the information; and
(ii)
provides the commission with a signed release form from the taxpayer allowing
the Driver License Division access to the information.
(q)
Notwithstanding Subsection
(2)
, the commission shall provide to the Utah
Communications Authority, or a division of the Utah Communications Authority, the
information requested by the authority under Sections
63H-7a-302
,
63H-7a-402
, and
63H-7a-502
.
(r)
Notwithstanding Subsection
(2)
, the commission shall provide to the Utah
Educational Savings Plan information related to a resident or nonresident individual's
contribution to a Utah Educational Savings Plan account as designated on the
resident or nonresident's individual income tax return as provided under Section
59-10-1313
.
(s)
Notwithstanding Subsection
(2)
, for the purpose of verifying eligibility under
Sections
26B-3-106
and
26B-3-903
, the commission shall provide an eligibility
worker with the Department of Health and Human Services or its designee with the
adjusted gross income of an individual if:
(i)
an eligibility worker with the Department of Health and Human Services or its
designee requests the information from the commission; and
(ii)
the eligibility worker has complied with the identity verification and consent
provisions of Sections
26B-3-106
and
26B-3-903
.
(t)
Notwithstanding Subsection
(2)
, the commission may provide to a county, as
determined by the commission, information declared on an individual income tax
return in accordance with Section
59-10-103.1
that relates to eligibility to claim a
residential exemption authorized under Section
59-2-103
.
(u)
Notwithstanding Subsection
(2)
, the commission shall provide a report regarding any
access line provider that is over 90 days delinquent in payment to the commission of
amounts the access line provider owes under Title 69, Chapter 2, Part 4, Prepaid
Wireless Telecommunications Service Charges, to

the
the
board of the Utah
Communications Authority created in Section
63H-7a-201
.
(v)
Notwithstanding Subsection
(2)
, the commission shall provide the Department of
Environmental Quality a report on the amount of tax paid by a radioactive waste
facility for the previous calendar year under Section
59-24-103.5
.
(w)
Notwithstanding Subsection
(2)
, the commission may, upon request, provide to the
Department of Workforce Services any information received under Chapter 10, Part
4, Withholding of Tax, that is relevant to the duties of the Department of Workforce
Services.
(x)
Notwithstanding Subsection
(2)
, the commission may provide the Public Service
Commission or the Division of Public Utilities information related to a seller that
collects and remits to the commission a charge described in Subsection
69-2-405(2)
,
including the seller's identity and the number of charges described in Subsection
69-2-405(2)
that the seller collects.
(y)
(i)
Notwithstanding Subsection
(2)
, the commission shall provide to each
qualifying jurisdiction the collection data necessary to verify the revenue collected
by the commission for a distributed tax, fee, or charge collected within the
qualifying jurisdiction.
(ii)
In addition to the information provided under Subsection
(4)(y)(i)
, the
commission shall provide a qualifying jurisdiction with copies of returns and other
information relating to a distributed tax, fee, or charge collected within the
qualifying jurisdiction.
(iii)
(A)
To obtain the information described in Subsection
(4)(y)(ii)
, the chief
executive officer or the chief executive officer's designee of the qualifying
jurisdiction shall submit a written request to the commission that states the
specific information sought and how the qualifying jurisdiction intends to use
the information.
(B)
The information described in Subsection
(4)(y)(ii)
is available only in official
matters of the qualifying jurisdiction.
(iv)
Information that a qualifying jurisdiction receives in response to a request under
this subsection is:
(A)
classified as a private record under Title 63G, Chapter 2, Government Records
Access and Management Act; and
(B)
subject to the confidentiality requirements of this section.
(z)
Notwithstanding Subsection
(2)
, the commission shall provide the Alcoholic
Beverage Services Commission, upon request, with taxpayer status information
related to state tax obligations necessary to comply with the requirements described
in Section
32B-1-203
.
(aa)
Notwithstanding Subsection
(2)
, the commission shall inform the Department of
Workforce Services, as soon as practicable, whether an individual claimed and is
entitled to claim a federal earned income tax credit for the year requested by the
Department of Workforce Services if:
(i)
the Department of Workforce Services requests this information; and
(ii)
the commission has received the information release described in Section
35A-9-604
.
(bb)
(i)
As used in this Subsection
(4)(bb)
, "unclaimed property administrator" means
the administrator or the administrator's agent, as those terms are defined in Section
67-4a-102
.
(ii)
(A)
Notwithstanding Subsection
(2)
, upon request from the unclaimed property
administrator and to the extent allowed under federal law, the commission shall
provide the unclaimed property administrator the name, address, telephone
number, county of residence, and social security number or federal employer
identification number on any return filed under Chapter 7, Corporate Franchise
and Income Taxes, or Chapter 10, Individual Income Tax Act.
(B)
The unclaimed property administrator may use the information described in
Subsection
(4)(bb)(ii)(A)
only for the purpose of returning unclaimed property
to the property's owner in accordance with Title 67, Chapter 4a, Revised
Uniform Unclaimed Property Act.
(iii)
The unclaimed property administrator is subject to the confidentiality provisions
of this section with respect to any information the unclaimed property
administrator receives under this Subsection
(4)(bb)
.
(cc)
Notwithstanding Subsection
(2)
, the commission may, upon request, disclose a
taxpayer's state individual income tax information to a program manager of the Utah
Fits All Scholarship Program under Section
53F-6-402
if:
(i)
the taxpayer consents in writing to the disclosure;
(ii)
the taxpayer's written consent includes the taxpayer's name, social security
number, and any other information the commission requests that is necessary to
verify the identity of the taxpayer; and
(iii)
the program manager provides the taxpayer's written consent to the commission.
(dd)
Notwithstanding Subsection
(2)
, the commission may, upon request, disclose a
taxpayer's state individual income tax information to a scholarship granting
organization of the Carson Smith Opportunity Scholarship Program under Section
53E-7-402
if:
(i)
the taxpayer consents in writing to the disclosure;
(ii)
the taxpayer's written consent includes the taxpayer's name, social security
number, and any other information the commission requests that is necessary to
verify the identity of the taxpayer; and
(iii)
the program manager provides the taxpayer's written consent to the commission.
(dd)
(ee)
Notwithstanding Subsection
(2)
, the commission may provide to the Division
of Finance within the Department of Government Operations any information
necessary to facilitate a payment from the commission to a taxpayer, including:
(i)
the name of the taxpayer entitled to the payment or any other person legally
authorized to receive the payment;
(ii)
the taxpayer identification number of the taxpayer entitled to the payment;
(iii)
the payment identification number and amount of the payment;
(iv)
the tax year to which the payment applies and date on which the payment is due;
(v)
a mailing address to which the payment may be directed; and
(vi)
information regarding an account at a depository institution to which the
payment may be directed, including the name of the depository institution, the
type of account, the account number, and the routing number for the account.
(ee)
(ff)
Notwithstanding Subsection
(2)
, the commission shall provide the total amount
of revenue collected by the commission under Subsection
59-5-202(5)
:
(i)
at the request of a committee of the Legislature, the Office of the Legislative
Fiscal Analyst, or the Governor's Office of Planning and Budget, to the committee
or office for the time period specified by the committee or office; and
(ii)
to the Division of Finance for purposes of the Division of Finance administering
Subsection
59-5-202(5)
.
(ff)
(gg)
Notwithstanding Subsection
(2)
, the commission may provide the Department
of Agriculture and Food with information from a return filed in accordance with
Chapter 31, Cannabinoid Licensing and Tax Act.
(gg)
(hh)
Notwithstanding Subsection
(2)
, the commission shall provide the
Department of Workforce Services with the information described in Section
35A-3-105
.
(hh)
(ii)
Notwithstanding Subsection
(2)
, the commission may provide aggregated
information to the Utah Population Committee, created in Section
63C-20-103
, if the
Utah Population Committee requests the information in accordance with Section
63C-20-105
.
(5)
(a)
Each report and return shall be preserved for at least three years.
(b)
After the three-year period provided in Subsection
(5)(a)
the commission may
destroy a report or return.
(6)
(a)
Any individual who violates this section is guilty of a class A misdemeanor.
(b)
If the individual described in Subsection
(6)(a)
is an officer or employee of the state,
the individual shall be dismissed from office and be disqualified from holding public
office in this state for a period of five years thereafter.
(c)
Notwithstanding Subsection
(6)(a)
or
(b)
, GOEO, when requesting information in
accordance with Subsection
(4)(n)(iii)
, or an individual who requests information in
accordance with Subsection
(4)(n)(v)
:
(i)
is not guilty of a class A misdemeanor; and
(ii)
is not subject to:
(A)
dismissal from office in accordance with Subsection
(6)(b)
; or
(B)
disqualification from holding public office in accordance with Subsection
(6)(b)
.
(d)
Notwithstanding Subsection
(6)(a)
or
(b)
, for a disclosure of information to the
Office of the Legislative Auditor General in accordance with Title 36, Chapter 12,
Legislative Organization, an individual described in Subsection
(2)
:
(i)
is not guilty of a class A misdemeanor; and
(ii)
is not subject to:
(A)
dismissal from office in accordance with Subsection
(6)(b)
; or
(B)
disqualification from holding public office in accordance with Subsection
(6)(b)
.
(7)
Except as provided in Section
59-1-404
, this part does not apply to the property tax.
Section 9. Section
59-7-625
is amended to read:
59-7-625
Effective
05/06/26
Applies beginning
01/01/26
. Nonrefundable tax
credit for a donation to the Carson Smith Opportunity Scholarship Program.
(1)
A taxpayer that makes a donation to the Carson Smith Opportunity Scholarship Program
established in Section
53E-7-402
may claim a nonrefundable tax credit equal to 100% of
the amount stated on a tax credit certificate issued in accordance with Section
53E-7-407
.
(2)
A taxpayer may claim the tax credit described in Subsection
(1)
for the taxable year
indicated on the tax credit certificate issued in accordance with Section
53E-7-407
.
(3)
A taxpayer may not claim the tax credit described in Subsection
(1)
for a donation to the
extent the taxpayer claims the donation as a deduction or credit against the taxpayer's
federal income taxes for any taxable year.
(2)
If the amount of a tax credit listed on the tax credit certificate exceeds a taxpayer's
liability under this chapter for a taxable year, the taxpayer:
(a)
may carry forward the amount of the tax credit exceeding the liability for a period
that does not exceed the next three taxable years; and
(b)
may carry back the amount of the tax credit that exceeds the taxpayer's tax liability
to the previous taxable year.
Section 10. Section
59-10-1041
is amended to read:
59-10-1041
Effective
05/06/26
Applies beginning
01/01/26
. Nonrefundable tax
credit for a donation to the Carson Smith Opportunity Scholarship Program.
(1)
Except as provided in Subsection
(3)
, a claimant, estate, or trust that makes a donation
to the Carson Smith Opportunity Scholarship Program established in Section
53E-7-402

may claim a nonrefundable tax credit equal to 100% of the amount stated on a tax credit
certificate issued in accordance with Section
53E-7-407
.
(2)
The tax credit described in Subsection
(1)
may be claimed for the taxable year indicated
on the tax credit certificate issued in accordance with Section
53E-7-407
.
(3)
A claimant, estate, or trust may not claim the tax credit described in Subsection
(1)
for a
donation to the extent the claimant, estate, or trust claims the donation as a deduction or
credit against the claimant's, estate's, or trust's federal income taxes for any taxable year.
(2)
If the amount of a tax credit listed on the tax credit certificate exceeds a claimant's,
estate's, or trust's tax liability under this chapter for a taxable year, the claimant, estate,
or trust:
(a)
may carry forward the amount of the tax credit exceeding the liability for a period
that does not exceed the next three taxable years; and
(b)
may carry back the amount of the tax credit that exceeds the claimant's, estate's, or
trust's tax liability to the previous taxable year.
(3)
A claimant, estate, or trust may not claim a credit described in Subsection (1) to the
extent the claimant, estate, or trust claims a donation described in Subsection (1) as an
itemized deduction on the claimant's, estate's, or trust's federal individual income tax
return for that taxable year.
Section 11.
Effective Date.
This bill takes effect on
May 6, 2026
.
Section 12.
Retrospective operation.
The following sections have retrospective operation for a taxable year starting on or
after
January 1, 2026
:
(1)
Section 59-1-403
Effective
05/06/26
Applies beginning
01/01/26
Partially Repealed
07/01/29
;
(2)
Section 59-7-625
Effective
05/06/26
Applies beginning
01/01/26
; and
(3)
Section 59-10-1041
Effective
05/06/26
Applies beginning
01/01/26
.
3-10-26 12:11 PM