LEGISLATIVE GENERAL COUNSEL H.B. 331
6 Approved for Filing: V. Ashby 6 5th Sub. (Salmon)
6 02-28-22 1:12 PM 6
Representative Candice B. Pierucci proposes the following substitute bill:
1 HOPE SCHOLARSHIP PROGRAM
2 2022 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Candice B. Pierucci
5 Senate Sponsor: Kirk A. Cullimore
6
7 LONG TITLE
8 General Description:
9 This bill creates the Hope Scholarship Program.
10 Highlighted Provisions:
11 This bill:
12 < requires a scholarship granting organization and the state auditor to submit reports
13 on the Hope Scholarship Program (program);
14 < defines terms;
15 < authorizes a scholarship granting organization to establish scholarship accounts on
16 behalf of eligible students to pay for private education goods and services starting in
17 the 2023-24 school year;
18 < requires the State Board of Education to contract with, no later than October 1,
19 2022, a scholarship granting organization to administer the program;
20 < prohibits a scholarship granting organization from accepting scholarship funds in 5th Sub. H.B. 331
21 certain circumstances;
22 < requires private schools and service providers to meet certain standards to be
23 eligible to receive scholarship funds;
24 < authorizes a scholarship granting organization to receive donations to the program;
25 < requires the scholarship granting organization to conduct audits;
*HB0331S05*
 5th Sub. (Salmon) H.B. 331 02-28-22 1:12 PM
26 < prohibits certain regulations of eligible schools and eligible service providers;
27 < requires background checks for employees and officers of a scholarship granting
28 organization;
29 < enacts program funding provisions;
30 < classifies scholarship student's and scholarship account information as a protected
31 record; and
32 < repeals a provision codifying a chapter title.
33 Money Appropriated in this Bill:
34 This bill appropriates in fiscal year 2023:
35 < to State Board of Education -- Contracted Initiatives and Grants -- Hope Scholarship
36 Program, as an appropriation:
37 C from Education Fund, ongoing $36,000,000; and
38 C from Education Fund, one-time ($34,000,000), leaving $2,000,000 for Fiscal
39 Year 2023.
40 Other Special Clauses:
41 None
42 Utah Code Sections Affected:
43 AMENDS:
44 53F-4-505, as last amended by Laws of Utah 2021, Chapter 362
45 63G-2-305, as last amended by Laws of Utah 2021, Chapters 148, 179, 231, 353, 373,
46 and 382
47 ENACTS:
48 53E-1-202.3, Utah Code Annotated 1953
49 53F-6-401, Utah Code Annotated 1953
50 53F-6-402, Utah Code Annotated 1953
51 53F-6-403, Utah Code Annotated 1953
52 53F-6-404, Utah Code Annotated 1953
53 53F-6-405, Utah Code Annotated 1953
54 53F-6-406, Utah Code Annotated 1953
55 53F-6-407, Utah Code Annotated 1953
56 53F-6-408, Utah Code Annotated 1953
-2-
 02-28-22 1:12 PM 5th Sub. (Salmon) H.B. 331
57 53F-6-409, Utah Code Annotated 1953
58 53F-6-410, Utah Code Annotated 1953
59 53F-6-411, Utah Code Annotated 1953
60 REPEALS:
61 53F-6-101, as enacted by Laws of Utah 2018, Chapter 2
62
63 Be it enacted by the Legislature of the state of Utah:
64 Section 1. Section 53E-1-202.3 is enacted to read:
65 53E-1-202.3. Report to the Public Education Appropriations Subcommittee on the
66 Hope Scholarship Program.
67 Beginning in 2024, a scholarship granting organization, as defined in Section
68 53F-6-401, and the state auditor, shall, in accordance with Section 68-3-14, annually submit the
69 respective reports described in Section 53F-6-411 to the Public Education Appropriations
70 Subcommittee.
71 Section 2. Section 53F-4-505 is amended to read:
72 53F-4-505. Payment for an online course.
73 (1) For the 2012-13 school year, the fee for a .5 credit online course or .5 credit of a 1
74 credit online course is:
75 (a) $200 for the following courses, except a concurrent enrollment course:
76 (i) financial literacy;
77 (ii) health;
78 (iii) fitness for life; and
79 (iv) computer literacy;
80 (b) $200 for driver education;
81 (c) $250 for a course that meets core standards for Utah public schools in fine arts or
82 career and technical education, except a concurrent enrollment course;
83 (d) $300 for the following courses:
84 (i) a course that meets core standards for Utah public schools requirements in social
85 studies, except a concurrent enrollment course; and
86 (ii) a world language course, except a concurrent enrollment course;
87 (e) $350 for the following courses:
-3-
 5th Sub. (Salmon) H.B. 331 02-28-22 1:12 PM
88 (i) a course that meets core standards for Utah public schools requirements for
89 language arts, mathematics, or science; and
90 (ii) a concurrent enrollment course; and
91 (f) $250 for a course not described in Subsections (1)(a) through (e).
92 (2) If a course meets the requirements of more than one course fee category described
93 in Subsection (1), the course fee shall be the lowest of the applicable course fee categories.
94 (3) Beginning with the 2013-14 school year, the online course fees described in
95 Subsection (1) shall be adjusted each school year in accordance with the percentage change in
96 value of the weighted pupil unit from the previous school year.
97 (4) An online learning provider shall receive payment for an online course as follows:
98 (a) for a .5 credit online course, 50% of the online course fee after the withdrawal
99 period described in Section 53F-4-506;
100 (b) for a 1 credit online course, 25% of the online course fee after the withdrawal
101 period described in Section 53F-4-506 and 25% of the online course fee upon the beginning of
102 the second .5 credit of the online course; and
103 (c) if a student completes a 1 credit online course within 12 months or a .5 credit
104 course within nine weeks following the end of a traditional semester, 50% of the online course
105 fee.
106 (5) (a) If a student fails to complete a 1 credit course within 12 months or a .5 credit
107 course within nine weeks following the end of a traditional semester, the student may continue
108 to be enrolled in the course until the student graduates from high school.
109 (b) To encourage an online course provider to provide remediation to a student who
110 remains enrolled in an online course pursuant to Subsection (5)(a) and avoid the need for credit
111 recovery, an online course provider shall receive a payment equal to 30% of the online course
112 fee if the student completes the online course:
113 (i) for a high school online course, before the student graduates from high school; or
114 (ii) for a middle school online course, before the student completes middle school.
115 (6) Notwithstanding the online course fees prescribed in Subsections (1) through (3), a
116 school district or charter school may:
117 (a) negotiate a fee with an online course provider for an amount up to the amount
118 prescribed in Subsections (1) through (3); and
-4-
 02-28-22 1:12 PM 5th Sub. (Salmon) H.B. 331
119 (b) pay the negotiated fee instead of the fee prescribed in Subsections (1) through (3).
120 (7) An online course provider who contracts with a vendor for the acquisition of online
121 course content or online course instruction may negotiate the payment for the vendor's service
122 independent of the fees specified in Subsections (1) through (3).
123 (8) A scholarship student, as defined in Section 53F-6-401, shall pay for an online
124 course with scholarship funds, as defined in Section 53F-6-401, or with the student's personal
125 funds.
126 Section 3. Section 53F-6-401 is enacted to read:
127 CHAPTER 6. STATE FUNDING -- PROGRAMS ADMINISTERED BY OTHER
128 ENTITIES
129 Part 4. Hope Scholarship Program
130 53F-6-401. Definitions.
131 (1) "Bullying" means the same as that term is defined in Section 53G-9-602.
132 (2) "Cyber-bullying" means the same as that term is defined in Section 53G-9-602.
133 (3) (a) "Eligible school" means a private school that:
134 (i) provides kindergarten, elementary, or secondary education; and
135 (ii) meets the requirements of and is approved by a scholarship granting organization
136 under Section 53F-6-408.
137 (b) "Eligible school" does not include an eligible service provider.
138 (4) "Eligible student" means a student who:
139 (a) is eligible to participate in public school, in kindergarten, or grades 1 through 12;
140 (b) is a resident of the state; and
141 (c) during the school year for which the student is applying for a scholarship, account is
142 not:
143 (i) a student who receives a scholarship under the Carson Smith Scholarship Program
144 created in Section 53F-4-302;
145 (ii) a student who receives a scholarship under the Special Needs Opportunity
146 Scholarship Program established in Section 53E-7-402; or
147 (iii) enrolled in an LEA.
148 (5) (a) "Eligible service provider" means a private program or service that:
149 (i) provides educational services; and
-5-
 5th Sub. (Salmon) H.B. 331 02-28-22 1:12 PM
150 (ii) meets the requirements of and is approved by a scholarship granting organization
151 under Section 53F-6-409.
152 (b) "Eligible service provider" does not include:
153 (i) an eligible school; or
154 (ii) a retailer or other private business that provides goods for a one-time purchase or
155 rental.
156 (6) "Federal poverty level" means the United States poverty level as defined by the
157 most recently revised poverty income guidelines published by the United States Department of
158 Health and Human Services in the Federal Register.
159 (7) "Hazing" means the same as that term is defined in Section 53G-9-601.
160 (8) "Hope Scholarship Program" or "program" means the scholarship program created
161 in Section 53F-6-402.
162 (9) "Officer" means:
163 (a) a member of the board of a scholarship granting organization; or
164 (b) the chief administrative officer of a scholarship granting organization.
165 (10) "Program donation" means a donation to the program described in Section
166 53F-6-405.
167 (11) "Qualifying service provider" means:
168 (a) an eligible school approved by the scholarship granting organization in accordance
169 with Section 53F-6-408; or
170 (b) an eligible service provider approved by the scholarship granting organization in
171 accordance with Section 53F-6-409.
172 (12) "Relative" means a father, mother, husband, wife, son, daughter, sister, brother,
173 uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law,
174 sister-in-law, son-in-law, or daughter-in-law.
175 (13) "Scholarship account" means an account established and maintained by a
176 scholarship granting organization on behalf of a scholarship student for the purpose of paying
177 for a scholarship expense with scholarship funds.
178 (14) "Scholarship expense" means an expense incurred in the education of a
179 scholarship student as described in Section 53F-6-402 for:
180 (a) a service provided by a qualifying service provider; or
-6-
 02-28-22 1:12 PM 5th Sub. (Salmon) H.B. 331
181 (b) goods.
182 (15) "Scholarship funds" means funds:
183 (a) appropriated by the Legislature for the program; or
184 (b) donated under Section 53F-6-405.
185 (16) "Scholarship granting organization" means an organization that is:
186 (a) qualified as tax exempt under Section 501(c)(3), Internal Revenue Code; and
187 (b) recognized through an agreement with the state board as a scholarship granting
188 organization, as described in Section 53F-6-404.
189 (17) (a) "Scholarship employee" means an individual working in a position in which
190 the individual's salary, wages, pay, or compensation, including as a contractor, is paid from
191 scholarship funds.
192 (b) "Scholarship employee" does not include an individual who volunteers at a
193 scholarship granting organization or qualifying service provider.
194 (18) "Scholarship student" means an eligible student for whom a scholarship account is
195 established and maintained in accordance with this part.
196 Section 4. Section 53F-6-402 is enacted to read:
197 53F-6-402. Hope Scholarship Program -- Scholarship account application --
198 Scholarship expenses -- Assessment -- Program information.
199 (1) There is established the Hope Scholarship Program under which, beginning in the
200 2023-24 school year, a parent may apply to a scholarship granting organization on behalf of the
201 parent's student to establish and maintain a scholarship account to cover the cost of a
202 scholarship expense.
203 (2) (a) The scholarship granting organization shall establish and maintain, in
204 accordance with this part, a scholarship account for an eligible student.
205 (b) The scholarship granting organization shall:
206 (i) determine that a student meets the requirements to be an eligible student; and
207 (ii) subject to Subsection (2)(c), each year the student is an eligible student, maintain a
208 scholarship account for the scholarship student to pay for the cost of one or more scholarship
209 expenses incurred by the student.
210 (c) Each year, subject to this part, an eligible student is eligible for no more than:
211 (i) for an eligible student in grades 1 through 12 whose family income is:
-7-
 5th Sub. (Salmon) H.B. 331 02-28-22 1:12 PM
212 (A) at or below 200% of the federal poverty level, an amount equivalent to the value of
213 the weighted pupil unit multiplied by 2;
214 (B) between 200% and 370% of the federal poverty level, an amount equivalent to the
215 value of the weighted pupil unit multiplied by 1.5; and
216 (C) between 370% and 555% of the federal poverty level, an amount equivalent to the
217 value of the weighted pupil unit multiplied by 1; and
218 (ii) for an eligible student in kindergarten whose family income is:
219 (A) at or below 200% of the federal poverty level, an amount equivalent to the value of
220 the weighted pupil unit multiplied by 1;
221 (B) between 200% and 370% of the federal poverty level, an amount equivalent to the
222 value of the weighted pupil unit multiplied by 0.75; and
223 (C) between 370% and 555% of the federal poverty level, an amount equivalent to the
224 value of the weighted pupil unit multiplied by 0.5.
225 (d) Any increase in the value of the weighted pupil unit shall be reflected in funds
226 available for the scholarship student in the student's scholarship account during the time that
227 the student is a scholarship student.
228 (3) (a) A scholarship granting organization shall establish a scholarship account on
229 behalf of an eligible student who submits a timely application, unless the number of
230 applications exceed available scholarship funds for the school year and except as provided in
231 Subsection (3)(d).
232 (b) If the number of applications exceeds the available scholarship funds for a school
233 year, the scholarship granting organization shall select students on a random basis, except as
234 provided in Subsection (6).
235 (c) An eligible student shall submit an application for each school year that the student
236 intends to receive scholarship funds.
237 (d) A scholarship granting organization may not approve an application by or establish
238 a scholarship account on behalf of a student whose family income is at or above 555% of the
239 federal poverty level.
240 (e) The LEA in which a scholarship student was enrolled immediately before the
241 student received a scholarship under this part, shall continue to count the student in the LEA's
242 pupil in average daily membership in accordance with Section 53F-2-102, for as long as the
-8-
 02-28-22 1:12 PM 5th Sub. (Salmon) H.B. 331
243 student is receiving a scholarship under this part.
244 (4) (a) An application for a scholarship account