03-06 11:00 3rd Sub. (Ivory) S.B. 137 Jefferson Moss proposes the following substitute bill: 1 Course Choice Empowerment 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Kirk A. Cullimore House Sponsor: Jefferson Moss 2 3 LONG TITLE 4 General Description: 5 This bill establishes a private online course choice program. 6 Highlighted Provisions: 7 This bill: 8 ▸ establishes standards for educational software and hardware procurement; 9 ▸ removes references to a contractor from the Statewide Online Education Program statute; 10 ▸ creates an online course choice program specifically for private school students; 11 ▸ requires the program be administered by an independent program manager contracted by 12 the State Board of Education; 13 ▸ allows eligible students to earn credits through online courses, including courses in 14 blended-learning environments; 15 ▸ establishes a contract administrator role to oversee program implementation; 16 ▸ authorizes the state board to contract with multiple entities for different program 17 functions; 18 ▸ provides for state oversight while maintaining program independence; 19 ▸ creates transition provisions if program manager contracts end; 20 ▸ requires separate funding from public education programs; 21 ▸ requires the program manager to: 22 ● approve and oversee course providers; 23 ● approve and oversee courses offered; 24 ● establish payment structure for courses; and 25 ● annually report on program performance; and 26 ▸ makes technical changes. 27 Money Appropriated in this Bill: 28 None 3rd Sub. S.B. 137 3rd Sub. (Ivory) S.B. 137 03-06 11:00 29 Other Special Clauses: 30 None 31 Utah Code Sections Affected: 32 AMENDS: 33 53F-4-501, as last amended by Laws of Utah 2024, Third Special Session, Chapter 1 34 53F-4-503, as last amended by Laws of Utah 2024, Chapter 24 35 53F-4-505, as last amended by Laws of Utah 2024, Chapter 24 36 53F-4-507, as last amended by Laws of Utah 2024, Chapter 24 37 53F-4-511, as last amended by Laws of Utah 2024, Chapter 24 38 53F-4-512, as last amended by Laws of Utah 2024, Chapter 24 39 53F-4-514, as last amended by Laws of Utah 2024, Chapter 24 40 53F-4-516, as last amended by Laws of Utah 2024, Chapter 24 41 ENACTS: 42 53F-4-209, Utah Code Annotated 1953 43 53F-4-519, Utah Code Annotated 1953 44 53F-6-501, Utah Code Annotated 1953 45 46 Be it enacted by the Legislature of the state of Utah: 47 Section 1. Section 53F-4-209 is enacted to read: 48 53F-4-209 . Neutrality and integrity in educational software and hardware 49 procurement. 50 (1) As used in this section: 51 (a) "Educational entity" means: 52 (i) the state board; or 53 (ii) a local education agency governing board. 54 (b) "Computer software" means a set of computer programs, procedures, and associated 55 documentation concerned with computer data or with the operation of a computer, 56 computer program, or computer network. 57 (c) "Total cost of ownership" means the sum of all costs borne by the educational entity 58 during the useful life of the software and hardware, including costs for acquisition, 59 installation, training, data conversion, integration, maintenance, upgrades, and 60 technical support. 61 (2) The Legislature finds that: 62 (a) the state board and local education agency governing boards have access to a broad - 2 - 03-06 11:00 3rd Sub. (Ivory) S.B. 137 63 variety of software and hardware products; 64 (b) these boards should evaluate software and hardware based on performance, value, 65 cost, and licensing terms; and 66 (c) neutral software and hardware procurement practices promote competition, reduce 67 costs, and provide better educational outcomes. 68 (3) An educational entity shall: 69 (a) base software and hardware procurement decisions on performance and value 70 criteria, including quality, functionality, security, reliability, interoperability, and 71 total cost of ownership; 72 (b) maintain neutrality with respect to: 73 (i) whether a for-profit or non-profit entity provides the software and hardware; and 74 (ii) the licensing model under which a provider offers the software and hardware; and 75 (c) retain the ability to install or run software and hardware on hardware that the 76 educational entity chooses. 77 (4) An educational entity may consider the effect of specific licensing terms in software and 78 hardware procurement decisions, including terms governing: 79 (a) availability of software and hardware source code; 80 (b) rights and restrictions regarding software and hardware modification; 81 (c) redistribution rights; 82 (d) warranties; and 83 (e) intellectual property indemnification. 84 (5) An educational entity shall interpret and apply this section in concert with all applicable 85 provisions of Title 63G, Chapter 6a, Utah Procurement Code. 86 Section 2. Section 53F-4-501 is amended to read: 87 53F-4-501 . Definitions. 88 As used in this part: 89 (1) "Authorized online course provider" means the entities listed in Subsection 53F-4-504 90 (1). 91 (2)(a) "Certified online course provider" means a provider that the state board approves 92 to offer courses through the Statewide Online Education Program. 93 (b) "Certified online course provider" does not include an entity described in 94 Subsections 53F-4-504(1)(a) through (c). 95 (3) "Credit" means credit for a high school course, or the equivalent for a middle school 96 course, as determined by the state board. - 3 - 3rd Sub. (Ivory) S.B. 137 03-06 11:00 97 (4)[(a)] "Eligible student" means a student who: 98 [(i)] (a) [who ]intends to take a course for middle school or high school credit; and 99 [(ii)(A) who is enrolled in an LEA in Utah;] 100 [(B) who attends a private school or home school andwhose custodial parent is a 101 resident of Utah; or] 102 [(C) who is an exchange student residing in Utah and enrolled in an LEA or 103 private school in Utah.] 104 (b) is: 105 (i) enrolled in an LEA in Utah; or 106 (ii) a home school student in accordance with Section 53G-6-204, whose custodial 107 parent is a resident of Utah. 108 [(b) "Eligible student" does not include a scholarship student as defined in Section 109 53F-6-401.] 110 [(5) "Exchange student" means a student sponsored by an agency approved by an LEA or 111 private school governing board or a student who has an F-1, J-1, or J-2 visa.] 112 [(6)] (5) "High school" means grade 9, 10, 11, or 12. 113 [(7)] (6) "Middle school" means, only for purposes of student eligibility to participate in the 114 Statewide Online Education Program, grade 6, 7, or 8. 115 [(8)] (7) "Online course" means a course of instruction offered by the Statewide Online 116 Education Program through the use of digital technology, regardless of whether the 117 student participates in the course at home, at school, at another location, or any 118 combination of these. 119 [(9)] (8) "Plan for college and career readiness" means the same as that term is defined in 120 Section 53E-2-304. 121 [(10)] (9) "Primary LEA of enrollment" or "primary LEA" means the LEA in which an 122 eligible student is enrolled for courses other than online courses offered through the 123 Statewide Online Education Program. 124 [(11)] (10) "Released-time" means a period of time during the regular school day a student 125 is excused from school at the request of the student's parent pursuant to rules of the state 126 board. 127 [(12) "State board's contractor" means the private entity described in Section 53F-4-503 128 with which the state board contracts to administer the portion of the Statewide Online 129 Education Program designated for a student who attends private school or home school.] 130 Section 3. Section 53F-4-503 is amended to read: - 4 - 03-06 11:00 3rd Sub. (Ivory) S.B. 137 131 53F-4-503 . Option to enroll in online courses offered through the Statewide 132 Online Education Program. 133 (1) Subject to Subsections (2), (9), and (12), and[, for a public education student, ] with the 134 advice of a school counselor at a student's primary LEA, an eligible student may enroll 135 in an online course offered through the Statewide Online Education Program if: 136 (a) the student meets the course prerequisites; 137 (b) the course is open for enrollment; and 138 (c) the online course is aligned with the student's plan for college and career readiness. 139 (2) An eligible student may enroll in online courses totaling up to six credits per school 140 year. 141 (3) Notwithstanding Subsection (2): 142 (a) a student's primary LEA of enrollment may allow an eligible student to enroll in 143 online courses for more than the number of credits specified in Subsection (2); or 144 (b) upon the request of an eligible student, the state board [or, in relation to a student 145 who attends a private school or home school, the state board's contractor, ]may allow 146 the student to enroll in online courses for more than the number of credits specified in 147 Subsection (2), if the online courses better meet the academic goals of the student. 148 (4) An eligible student's primary LEA of enrollment: 149 (a) in conjunction with the student and the student's parent, is responsible for preparing 150 and implementing a plan for college and career readiness for the eligible student, as 151 provided in Section 53E-2-304; and 152 (b) shall assist an eligible student in scheduling courses in accordance with the student's 153 plan for college and career readiness, graduation requirements, and the student's 154 post-secondary plans. 155 (5) An eligible student's primary LEA of enrollment may not: 156 (a) impose restrictions on a student's selection of an online course that fulfills graduation 157 requirements and is consistent with the student's plan for college and career readiness 158 or post-secondary plans; or 159 (b) give preference to an online course or authorized online course provider. 160 (6) The state board, [or, in relation to a student who attends a private school or home 161 school, the state board's contractor, ]including an employee of the state board[ or the 162 state board's contractor,] , may not give preference to an online course or authorized 163 online course provider. 164 (7)(a) Except as provided in Subsection (7)(b), a person may not provide an inducement - 5 - 3rd Sub. (Ivory) S.B. 137 03-06 11:00 165 or incentive to a [public school ]student to participate in the Statewide Online 166 Education Program. 167 (b) For purposes of Subsection (7)(a): 168 (i) "Inducement or incentive" does not mean: 169 (A) instructional materials or software necessary to take an online course; or 170 (B) access to a computer or digital learning device for the purpose of taking an 171 online course. 172 (ii) "Person" does not include a relative of the [public school] eligible student. 173 (8) The state board shall coordinate with the Utah System of Higher Education to study 174 funding structures and access barriers related to concurrent enrollment for the Statewide 175 Online Education Program and provide recommendations to the Education Interim 176 Committee no later than the November 2024 meeting. 177 (9) Subject to legislative appropriations[ and for an eligible student who is enrolled at a 178 public school], the state board shall provide Statewide Online Education Program 179 academic counseling that: 180 (a) may advise an eligible student or an eligible student's parent regarding an online 181 course enrollment including how an online course relates to graduation requirements 182 described in Section 53E-4-204 and administrative rule; 183 (b) provides the training described in Section 53F-4-514; 184 (c) provides technical support to an LEA, school-based counselor, eligible student, or 185 eligible student's parent; 186 (d) assists in gathering information, reports, and data an LEA requests; and 187 (e) directs an eligible student or an eligible student's parent to a school-specific 188 counselor for advice regarding an online course enrollment in relation to an LEA, or 189 school-specific graduation requirement and all other counseling services. 190 (10) If an eligible student has an IEP or Section 504 accommodation plan: 191 (a) the eligible student's primary LEA: 192 (i) shall: 193 (A) forward a copy of the relevant portions of the eligible student's existing IEP or 194 Section 504 accommodation plan to the authorized online course provider in 195 accordance with federal law and guidelines; and 196 (B) ensure the authorized online course provider is provided an eligible student's 197 updated IEP when revisions are made; 198 (ii) may: - 6 - 03-06 11:00 3rd Sub. (Ivory) S.B. 137 199 (A) ensure the eligible student's IEP team and the authorized online course 200 provider review a course enrollment for compliance with requirements 201 described in Subsection (1); and 202 (B) as needed, coordinate additional IEP team reviews with the authorized online 203 course provider to ensure appropriate services, supports, and accommodations 204 are in place for the eligible student; and 205 (b) the authorized online course provider: 206 (i) shall implement an eligible student's IEP or Section 504 accommodation plan; and 207 (ii) may seek assistance from the primary LEA to implement an eligible student's IEP 208 or Section 504 accommodation plan. 209 (11) The state board shall create a model cooperative agreement between a primary LEA 210 and an authorized online course provider for use when the primary LEA determines that 211 an authorized online course provider would best provide IEP services, including a 212 requirement that the eligible student's primary LEA provide funding for the IEP services. 213 (12) If the program lacks sufficient legislative appropriations to fund the enrollment in 214 online courses for all eligible students who do not have a primary LEA of enrollment, 215 the state board [or, in relation to a student who attends a private school or home school, 216 the state board's contractor, ]shall prioritize funding the enrollment of an eligible student 217 who intends to graduate from high school during the school year in which the student 218 enrolls in an online course. 219 [(13) No later than April 1, 2025, and in accordance with Title 63G, Chapter 6a, Utah 220 Procurement Code, the state board shall use funds the state board expends to administer 221 to the Statewide Online Education Program for students who attend private school or 222 home school to alternatively contract with a private entity:] 223 [(a) that has demonstrated an expertise or ability to administer a statewide program to 224 deliver education services to students who attend private school or home school; and] 225 [(b) to administer the portion of the Statewide Online Education Program that is 226 designated for students who attend private school or home school, including 227 providing an enrollment platform or tool separate from the enrollment tool or 228 platform the state board provides for the program.] 229 [(14) The state board's contractor described in Subsection (13) may use a percentage of the 230 appropriation for home school and private school students that is equal to the proportion 231 of the state board's administrative cost in relation to the appropriation for students 232 enrolled in an LEA.] - 7 - 3rd Sub. (Ivory) S.B. 137 03-06 11:00 233 Section 4. Section 53F-4-505 is amended to read: 234 53F-4-505 . Payment for an online course. 235 (1) For the 2012-13 school year, the fee for a .5 credit online course or .5 credit of a 1 credit 236 online course is: 237 (a) $200 for the following courses, except a concurrent enrollment course: 238 (i) financial literacy; 239 (ii) health; 240 (iii) fitness for life; and 241 (iv) computer literacy; 242 (b) $200 for driver education; 243 (c) $250 for a course that meets core standards for Utah public schools in fine arts or 244 career and technical education, except a concurrent enrollment course; 245 (d) $300 for the following courses: 246 (i) a course that meets core standards for Utah public schools requirements in social 247 studies, except a concurrent enrollment course; and 248 (ii) a world language course, except a concurrent enrollment course; 249 (e) $350 for the following courses: 250 (i) a course that meets core standards for Utah public schools requirements for 251 language arts, mathematics, or science; and 252 (ii) a concurrent enrollment course; and 253 (f) $250 for a course not described in Subsections (1)(a) through (e). 254 (2) If a course meets the requirements of more than one course fee category described in 255 Subsection (1), the course fee shall be the lowest of the applicable course fee categories. 256 (3) The online course fees described in Subsection (1) shall be adjusted each school year in 257 accordance with the percentage change in value of the weighted pupil unit from the 258 previous school year. 259 (4) An authorized online course provider shall receive payment for an online course as 260 follows: 261 (a) for a .5 credit online course, 50% of the online course fee after the withdrawal period 262 described in Section 53F-4-506; 263 (b) for a 1 credit online course, 25% of the online course fee after the withdrawal period 264 described in Section 53F-4-506 and 25% of the online course fee upon the beginning 265 of the second .5 credit of the online course; and 266 (c) if a student completes a 1 credit online course within 12 months or a .5 credit course - 8 - 03-06 11:00 3rd Sub. (Ivory) S.B. 137 267 within nine weeks following the end of a traditional semester, 50% of the online 268 course fee. 269 (5)(a) If a student fails to complete a 1 credit course within 12 months or a .5 credit 270 course within nine weeks following the end of a traditional semester, the student may 271 continue to be enrolled in the course until the student graduates from high school. 272 (b) To encourage an authorized online course provider to provide remediation to a 273 student who remains enrolled in an online course pursuant to Subsection (5)(a) and 274 avoid the need for credit recovery, an authorized online course provider shall receive 275 a payment equal to 30% of the online course fee if the student completes the online 276 course: 277 (i) for a high school online course, before the student graduates from high school; or 278 (ii) for a middle school online course, before the student completes middle school. 279 (6) Notwithstanding the online course fees prescribed in Subsections (1) through (3), a 280 school district or charter school may: 281 (a) negotiate a fee with an authorized online course provider for an amount up to the 282 amount prescribed in Subsections (1) through (3); and 283 (b) pay the negotiated fee instead of the fee prescribed in Subsections (1) through (3). 284 (7) An authorized online course provider who contracts with a vendor for the acquisition of 285 online course content or online course instruction may negotiate the payment for the 286 vendor's service independent of the fees specified in Subsections (1) through (3). 287 (8) The state board [or, in relation to a student who attends a private school or home school, 288 the state board's contractor, ]may not remove a student from an online course if the 289 student is eligible for continued enrollment in the online course under Subsection (5). 290 (9) Upon request by a primary LEA, the state board shall provide an itemized report to the 291 primary LEA showing the deduction described in Subsection 53F-4-508(2) by student 292 and course enrolled. 293 Section 5. Section 53F-4-507 is amended to read: 294 53F-4-507 . Direction to deduct funds and make payments -- Plan for the 295 payment of online courses taken by home school students. 296 (1)[(a)] Subject to future budget constraints, the Legislature shall adjust the 297 appropriation for the Statewide Online Education Program based on[:] 298 [(i)] 299 (a) the anticipated increase of eligible home school [and private school] students 300 enrolled in the Statewide Online Education Program; and - 9 - 3rd Sub. (Ivory) S.B. 137 03-06 11:00 301 [(ii)] 302 (b) the value of the weighted pupil unit. 303 [(b) The state board shall, if the state board contracts with a private entity under 304 Subsection 53F-4-503(9), delegate to the state board's contractor the management of 305 the funds appropriated for the Statewide Online Education Program for students who 306 attend private school or home school.] 307 (2) Notwithstanding Subsection (1) and subject to future budget constraints, the Legislature 308 shall: 309 (a) consider enrollment projections provided by the authorized online course providers 310 to account for enrollment growth during the appropriations process; and 311 (b) provide a supplemental appropriation to adequately fund the Statewide Online 312 Education Program when the enrollment amount exceeds the projected enrollment 313 amounts provided by the authorized online course providers[; and] . 314 [(c) in the fiscal year beginning July 1, 2025, keep all other appropriations for the 315 Statewide Online Education Program separate from the appropriations described in 316 Section 53F-4-518.] 317 (3)(a) The state board shall deduct money from funds allocated to the student's primary 318 LEA of enrollment under Chapter 2, State Funding -- Minimum School Program, to 319 pay for online course fees. 320 (b) Money shall be deducted under Subsection (3)(a) in the amount and at the time an 321 authorized online course provider qualifies to receive payment for an online course 322 provided to a [public education] student, not to exceed 90 days after qualification, as 323 provided in Subsection 53F-4-505(4). 324 [(c) The state board or, in relation to a student who attends a private school or home 325 school, the state board's contractor, shall deduct money from funds allocated for 326 course fees for a private school or home school student in the amount and at the time 327 an authorized online course provider qualifies to receive payment for an online 328 course, not to exceed 90 days after qualification.] 329 (4) From money deducted under Subsection (3), the state board [or, in relation to a student 330 who attends a private school or home school, the state board's contractor, ]shall make 331 payments to the student's authorized online course provider as provided in Section 332 53F-4-505. 333 Section 6. Section 53F-4-511 is amended to read: 334 53F-4-511 . Report on performance of authorized online course providers. - 10 - 03-06 11:00 3rd Sub. (Ivory) S.B. 137 335 (1) The state board, in collaboration with authorized online course providers, [and, if 336 applicable, the state board's contractor, ]shall develop a report on the performance of 337 authorized online course providers, which may be used to evaluate the Statewide Online 338 Education Program and assess the quality of an authorized online course provider.. 339 (2) A report on the performance of an authorized online course provider shall include: 340 (a) scores aggregated by test on statewide assessments administered under Title 53E, 341 Chapter 4, Part 3, Assessments, taken by students at the end of an online course 342 offered through the Statewide Online Education Program; 343 (b) the percentage of the authorized online course provider's students who complete 344 online courses within the applicable time period specified in Subsection 53F-4-505 345 (4)(c); 346 (c) the percentage of the authorized online course provider's students who complete 347 online courses after the applicable time period specified in Subsection 53F-4-505 348 (4)(c) and before the student graduates from high school; and 349 (d) the pupil-teacher ratio for the combined online courses of the authorized online 350 course provider. 351 (3) The state board shall post a report on the performance of an authorized online course 352 provider on the Statewide Online Education Program's website described in Section 353 53F-4-512. 354 Section 7. Section 53F-4-512 is amended to read: 355 53F-4-512 . Dissemination of information on the Statewide Online Education 356 Program. 357 (1) The state board shall develop a website for the Statewide Online Education Program 358 which shall include: 359 (a) a description of the Statewide Online Education Program, including its purposes; 360 (b) notwithstanding Subsection (2), information on who is eligible to enroll, and how an 361 eligible student may enroll, in an online course; 362 (c) a directory of authorized online course providers; 363 (d) a link to a course catalog for each authorized online course provider; and 364 (e) a report on the performance of authorized online course providers as required by 365 Section 53F-4-511. 366 (2) An authorized online course provider shall provide the following information on the 367 authorized online course provider's website: 368 (a) a description of the Statewide Online Education Program, including its purposes; - 11 - 3rd Sub. (Ivory) S.B. 137 03-06 11:00 369 (b) information on who is eligible to enroll, and how an eligible student may enroll, in 370 an online course; 371 (c) a course catalog; 372 (d) scores aggregated by test on statewide assessments administered under Title 53E, 373 Chapter 4, Part 3, Assessments, taken by students at the end of an online course 374 offered through the Statewide Online Education Program; 375 (e) the percentage of an authorized online course provider's students who complete 376 online courses within the applicable time period specified in Subsection 53F-4-505 377 (4)(c); 378 (f) the percentage of an authorized online course provider's students who complete 379 online courses after the applicable time period specified in Subsection 53F-4-505 380 (4)(c) and before the student graduates from high school; and 381 (g) the authorized online course provider's pupil-teacher ratio for the online courses 382 combined. 383 [(3) The state board's contractor shall provide on the contractor's website information 384 regarding enrollment and participation by a private school or home school student 385 through the contractor.] 386 Section 8. Section 53F-4-514 is amended to read: 387 53F-4-514 . State board -- Rulemaking -- Fees. 388 (1) Notwithstanding Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the state 389 board shall provide a delayed effective date that is after the school year has ended for a 390 change to an administrative rule related to the Statewide Online Education Program if 391 the change would require an authorized online course provider to make program changes 392 during the school year. 393 (2) The state board shall make rules in accordance with this part and Title 63G, Chapter 3, 394 Utah Administrative Rulemaking Act, that establish: 395 (a) a course credit acknowledgement form and procedures for completing and 396 submitting to the state board [or, in relation to a student who attends a private school 397 or home school, the state board's contractor, ]a course credit acknowledgement; 398 (b) procedures for the administration of a statewide assessment to a student enrolled in 399 an online course; [and] 400 (c) protocols for an online course provider to obtain approval to become a certified 401 online course provider, including: 402 (i) the application procedure for an online course provider to obtain approval to - 12 - 03-06 11:00 3rd Sub. (Ivory) S.B. 137 403 become a certified online course provider; and 404 (ii) the standards that a certified online course provider and any online course the 405 certified online course provider offers shall meet; 406 (d) in accordance with Title 53E, Chapter 4, Academic Standards, Assessments, and 407 Materials, criteria for an authorized online course provider to submit for approval an 408 online course that does not have an existing state board course code; and 409 (e) [no later than July 1, 2024, a] a process within existing systems at the state board [or, 410 in relation to a student who attends a private school or home school, the state board's 411 contractor, ]to allow a certified online course provider access to an educator's 412 licensing, endorsement, certification, and assignment information if the educator is 413 teaching an online course for the certified online course provider; 414 (f) in consultation with the authorized online course providers, the parameters for 415 conducting a site visit including: 416 (i) a definition for the term, site visit; 417 (ii) the minimum amount of time required for: 418 (A) notice to an authorized online course provider of a site visit; and 419 (B) an authorized online course provider to prepare for a site visit; 420 (iii) the documents, data, and artifacts subject to inspection during a site visit; and 421 (iv) a process to ensure a site visit allows for observation of instruction without 422 interfering with the instruction; 423 (g) annual mandatory training for relevant staff at a primary LEA that includes: 424 (i) program requirements for a primary LEA including reporting requirements and 425 methods; 426 (ii) uses of resources and tools to ensure adequate monitoring of an eligible student's 427 progress; 428 (iii) federal and state requirements for accommodating enrollments that involve 429 special education; 430 (iv) appropriate circumstances and methodologies for reducing an eligible student's 431 schedule; and 432 (v) other components the state board determines are necessary[; and] . 433 (3)(a) When establishing the standards described in Subsection (2)(c)(ii) the state board 434 shall: 435 (i) establish rules and minimum standards regarding accreditation; 436 (ii) require an online course to be aligned with the core standards described in - 13 - 3rd Sub. (Ivory) S.B. 137 03-06 11:00 437 Section 53E-4-202; 438 (iii) require proof that a national organization responsible for college athletics 439 endorses: 440 (A) the certified online course provider; or 441 (B) the online course that a certified online course provider offers; 442 (iv) permit an open-entry, open-exit method of instructional delivery that allows a 443 student the flexibility to: 444 (A) schedule in response to individual needs or requirements; 445 (B) demonstrate competency when the student has mastered knowledge and skills; 446 (C) begin or end study at any time; and 447 (D) progress through course material at the student's own pace; and 448 (v) except as provided in Subsection (5), require an individual who teaches a course 449 for a certified online course provider to hold a teaching license issued by the state 450 board. 451 (b) When establishing the standards described in Subsection (2)(c)(ii), the state board 452 may not: 453 (i) specify a minimum duration for an online course; 454 (ii) specify a minimum amount of time that a student must spend in an online course; 455 or 456 (iii) limit the class size of an online course. 457 (4) No later than January 31, 2026, the state board shall create a communication dashboard 458 for the program [and only related to eligible students enrolled in a public school ]that 459 may include: 460 (a) a counselor contact list for an eligible student that is accessible to an authorized 461 online course provider; and 462 (b) progress monitoring fields that are accessible to the primary LEA, the eligible 463 student's counselor, and the eligible student's parent containing: 464 (i) grade progress reporting of an eligible student by an authorized online course 465 provider; 466 (ii) an ability to flag a student that is at-risk of failing an online course; and 467 (iii) other relevant capabilities the state board determines to be necessary in 468 consultation with LEA users of the dashboard. 469 (5) If an individual possesses a provider-specific license described in Section 53E-6-201, 470 the state board may not prohibit the individual from teaching an online course for an - 14 - 03-06 11:00 3rd Sub. (Ivory) S.B. 137 471 authorized online course provider while the individual is in the process of obtaining an 472 endorsement or additional license issued by the state board. 473 (6) The state board may establish a fee, in accordance with Section 63J-1-504, in an amount 474 to pay the costs to the state board of the application approval process and the monitoring 475 of a certified online course provider's compliance with the standards described in 476 Subsection (2)(c)(ii). 477 (7)(a) Fee revenue collected in accordance with Subsection (6) shall be: 478 (i) deposited into the Uniform School Fund as a dedicated credit; and 479 (ii) used to pay the costs to the state board of reviewing certified online course 480 providers' applications and compliance with the standards described in Subsection 481 (2)(c)(ii). 482 Section 9. Section 53F-4-516 is amended to read: 483 53F-4-516 . Report of noncompliance -- Action to ensure compliance. 484 (1) The state superintendent shall report to the state board any report of noncompliance of 485 this part made to a staff member of the state board[ or, in relation to a student who 486 attends a private school or home school, the state board's contractor]. 487 (2) The state board [and, if applicable, the state board's contractor, ]shall take appropriate 488 action to ensure compliance with this part. 489 Section 10. Section 53F-4-519 is enacted to read: 490 53F-4-519 . Home school student access to online courses. 491 Subject to legislative appropriations and Subsection 53F-4-514(2), and notwithstanding 492 Subsections 53F-4-509(2) and (3), the state board shall 493 (1) use funds from an appropriation for the Statewide Online Education Program to pay for 494 an online course fee described in Section 53F-4-505 for a home school student whose 495 custodial parent is a resident of Utah; and 496 (2) allocate funds for online course fees for home school students on a first-come, 497 first-served basis until the appropriated funds are fully expended. 498 Section 11. Section 53F-6-501 is enacted to read: 499 Part 5. Utah Private Course Choice Empowerment 500 53F-6-501 . Utah Private Course Choice Empowerment program. 501 (1) As used in this section: 502 (a) "Authorized online course provider" or "provider" means a provider approved by the 503 program manager to offer online courses through the program. 504 (b) "Blended learning" means an education model that: - 15 - 3rd Sub. (Ivory) S.B. 137 03-06 11:00 505 (i) combines in-person and online or digital instruction and learning activities; 506 (ii) allows students to receive instruction through: 507 (A) direct, in-person interaction with an instructor; 508 (B) digital or online content and activities; or 509 (C) a combination of both in-person and online methods; 510 (iii) may include hybrid teaching formats where: 511 (A) some students participate in-person while others participate remotely; or 512 (B) instruction alternates between in-person and online delivery; and 513 (iv) provides students flexibility in time, place, path, or pace of learning. 514 (c) "Contract administrator" means the state board's appointed Deputy Superintendent of 515 Operations that ensures the program manager meets contractual obligations. 516 (d) "Contract oversight and compliance" means the oversight and coordination functions 517 performed by the Department of Operations contract administrator, including: 518 (i) establishing and maintaining program standards within a contract with a program 519 manager; 520 (ii) determining operational requirements and structures; 521 (iii) procuring and managing contracts for program services and standards; 522 (iv) ensuring program integrity through direct or contracted oversight; 523 (v) coordinating program functions and contracted services with a program manager; 524 and 525 (vi) maintaining appropriate separation between government oversight and 526 independent program operations. 527 (e) "Contracted entity" means an organization that: 528 (i) contracts with the state board to perform duties and functions necessary for 529 program administration and operations; 530 (ii) is not affiliated with any international organization; 531 (iii) does not harvest data for the purpose of reproducing or distributing the data to 532 other entities; 533 (iv) has no involvement in guiding or directing any curriculum or curriculum 534 standards; and 535 (v) performs the specific duties and functions assigned in the contract with the state 536 board. 537 (f) "Department of Operations" means the section of the state board that oversees 538 financial operations, procurement operations, data and statistics operations, school - 16 - 03-06 11:00 3rd Sub. (Ivory) S.B. 137 539 land trust, and information technology operations for the state board. 540 (g) Eligible student" means a student: 541 (i) who attends a private school whose parent is a resident of Utah; or 542 (ii) who is an exchange student residing in Utah and enrolled in a private school in 543 Utah. 544 (h) "Online course" means a course of instruction for grades 6 through 12 offered 545 through the program using digital technology, including: 546 (i) an exclusively online learning and instructional model; or 547 (ii) blended learning models. 548 (i) "Private school" means the same as term is defined in Section 53F-6-401. 549 (j) "Program" means the Utah Private Course Choice Empowerment program created in 550 this section. 551 (k) "Program manager" means a contracted entity that, at the time of application, 552 demonstrates the ability without external contracts to internally meet the 553 qualifications specified in this section, that is contracted by the state board to 554 administer the Utah Private Course Choice Empowerment program, including: 555 (i) the ability to manage, distribute, and transact program funds; 556 (ii) capacity to create and maintain a user-friendly website; 557 (iii) the ability to verify a student's eligibility based on the requirements of this part; 558 (iv) capacity to process provider payments and maintain financial records; 559 (v) ability to track, monitor, and report program enrollment, participation, and 560 outcomes at both provider and individual student levels; and 561 (vi) maintenance of a publicly accessible provider list, including: 562 (A) the capability to allow a student or a student's parent to rate, review, and share 563 information about providers; and 564 (B) appropriate links to a provider's course catalog. 565 (2) The program is created to enable an eligible student to engage in taking online courses. 566 (3) The purposes of the program are to: 567 (a) provide a student with access to online learning options regardless of where the 568 student attends school, including blending learning settings; 569 (b) provide digital learning options for a student regardless of language, residence, 570 family income, or special needs; 571 (c) utilize the power and scalability of technology to customize education so that a 572 student may learn in the student's own style preference and at the student's own pace; - 17 - 3rd Sub. (Ivory) S.B. 137 03-06 11:00 573 (d) provide greater access to self-paced programs enabling a high achieving student to 574 accelerate academically, while a struggling student may have additional time and 575 help to gain competency; 576 (e) allow a student to customize the student's schedule to better meet the student's 577 academic goals; 578 (f) provide quality learning options to better prepare a student for post-secondary 579 education and career opportunities; and 580 (g) support flexible learning environments through blended learning options that 581 combine the benefits of both in-person and online instruction to enhance student 582 engagement and achievement. 583 (4) An eligible student may enroll in an online course offered through the program if: 584 (a) the student meets the course prerequisites; and 585 (b) the course is open for enrollment. 586 (5)(a) An eligible student may enroll in online courses up to the equivalent of six credits 587 per school year. 588 (b) Notwithstanding Subsection (5)(a), if an eligible student is also a scholarship student 589 as defined in Section 53F-6-401, the student may enroll in online courses up to the 590 equivalent of four credits per school year. 591 (6)(a) No later than April 1, 2025, the state board shall: 592 (i) in accordance with Title 63G, Chapter 6a, Utah Procurement Code, enter in an 593 agreement with one or more contracted entities to serve as a program manager for 594 the program, including management of the funds appropriated for the program; 595 (ii) ensure the initial contract is no more than a three-year contract with annual 596 renewal options subject to performance review and compliance with Title 63G, 597 Chapter 6a, Utah Procurement Code; and 598 (iii) ensure the contract: 599 (A) clearly delineates the specific duties and functions to be performed; 600 (B) ensures the efficiency and success of the program; 601 (C) maintains appropriate separation between program and contract administration 602 and direct educational services; 603 (D) preserves the independence of educational decisions made between parents 604 and providers; and 605 (E) does not impose any requirements on the program manager that are not 606 essential to the basic administration of the program or create restrictions, - 18 - 03-06 11:00 3rd Sub. (Ivory) S.B. 137 607 directions, or mandates regarding instructional content or curriculum. 608 (b) The state board shall perform contract oversight and compliance through the contract 609 administrator, who shall: 610 (i) regulate and take enforcement action as necessary against a program manager in 611 accordance with the provisions of the state board's agreement with the program 612 manager; 613 (ii) ensure the program manager adheres to all contractual obligations; 614 (iii) review all program reports and financial records; 615 (iv) conduct regular compliance audits; and 616 (v) evaluate the program manager's performance annually. 617 (c) The state board shall not include a provision in any rule that creates or implies a 618 restriction, direction, or mandate regarding program administration, including student 619 enrollment, payments to providers, instructional content, or curriculum. 620 (d) The state board, in collaboration with the Contract administrator, may: 621 (i) distribute program functions among multiple contracted entities, including: 622 (A) program management functions; 623 (B) financial processing and payment functions; 624 (C) provider management functions; and 625 (D) other administrative functions as needed; and 626 (ii) ensure appropriate coordination between all contracted entities through clearly 627 defined roles and responsibilities in each contract. 628 (7)(a) The program manager shall: 629 (i) administer the program; 630 (ii) ensure an eligible student can navigate to all authorized online course providers' 631 enrollment platforms or tools for the program; 632 (iii) approve and oversee authorized online course providers; 633 (iv) establish guidelines for qualifying providers and courses; 634 (v) manage funds appropriated for the program; 635 (vi) make payments to authorized online course providers that may not include 636 transaction fees of any kind; 637 (vii) as described in Subsection (19), provide an annual report on the performance of 638 the program to the Education Interim Committee; and 639 (viii) ensure compliance with applicable laws and regulations. 640 (b) The program manager shall maintain detailed financial records subject to review by - 19 - 3rd Sub. (Ivory) S.B. 137 03-06 11:00 641 the contract administrator, including: 642 (i) all course payments processed; 643 (ii) provider payment histories; 644 (iii) administrative costs; and 645 (iv) audit results. 646 (8) The state board may regulate and take enforcement action as necessary against a 647 program manager in accordance with the provisions of the state board's agreement with 648 the program manager. 649 (9)(a) If the state board determines that a program manager has violated a provision of 650 this part or a provision of the state board's agreement with the program manager, the 651 state board shall send written notice to the program manager explaining the violation 652 and the remedial action required to correct the violation. 653 (b) A program manager that receives a notice described in Subsection (9)(a) shall, no 654 later than 60 days after the day on which the program manager receives the notice, 655 correct the violation and report the correction to the state board. 656 (c)(i) If a program manager that receives a notice described in Subsection (9)(a) fails 657 to correct a violation in the time period described in Subsection (9)(b), the state 658 board may bar the program manager from further participation in the program. 659 (ii) A program manager may appeal a decision of the state board under Subsection 660 (9)(c)(i) in accordance with Title 63G, Chapter 4, Administrative Procedures Act. 661 (d) A program manager may not accept state funds while the program manager: 662 (i) is barred from participating in the program under Subsection (9)(c)(i); or 663 (ii) has an appeal pending under Subsection (9)(c)(ii). 664 (e) A program manager that has an appeal pending under Subsection (9)(c)(ii) may 665 continue to administer online courses during the pending appeal. 666 (10) The program manager shall approve online course providers to offer courses through 667 the program. 668 (11)(a) Subject to Subsection (11)(b), the program manager shall establish a process to 669 approve an entity as an authorized online course provider, including: 670 (i) the entity's demonstration of at least three years of experience in either: 671 (A) developing and delivering proprietary digital coursework for students; or 672 (B) successfully aggregating and managing third-party digital education providers 673 and courses for students; 674 (ii) the ability to provide a publicly available user-friendly website for an eligible - 20 - 03-06 11:00 3rd Sub. (Ivory) S.B. 137 675 student, including: 676 (A) an accessible course enrollment system; 677 (B) comprehensive provider and course information; and 678 (C) program participation metrics; 679 (iii) verification that within the past five years, the entity: 680 (A) has not been subject to sanctions; 681 (B) has not undergone investigations; 682 (C) has not had adverse findings in malfeasance audits; and 683 (D) has not received other official censures in any state where it delivers digital 684 courses; 685 (iv) certification that the entity is not currently named in any lawsuit or ongoing civil 686 litigation in any state where the entity delivers digital courses; and 687 (v) the entity's demonstrated capacity to: 688 (A) evaluate and monitor course quality and content; 689 (B) verify instructor qualifications and experience; 690 (C) ensure instructor technical competency; 691 (D) conduct instructor background checks; 692 (E) provide regular professional development; 693 (F) implement student safety policies; 694 (G) maintain data privacy and security; 695 (H) enforce a learner code of conduct; and 696 (I) uphold academic integrity standards. 697 (b) In accordance with Subsection (13), the program manager shall allow all authorized 698 online course providers and courses the state board has approved up to July 1, 2024, 699 for the Statewide Online Education Program described in Title 53F, Chapter 4, Part 700 5, Statewide Online Education Program, to be offered to private school students. 701 (12) The program manager may revoke approval of an authorized online course provider 702 for non-compliance with program requirements described in this section or poor 703 performance as the program manager determines. 704 (13) The program manager shall establish a process for reviewing and approving courses to 705 be offered through the program, including: 706 (a) submission of the following course information: 707 (i) course title; 708 (ii) course fee; - 21 - 3rd Sub. (Ivory) S.B. 137 03-06 11:00 709 (iii) subject area; 710 (iv) if applicable, credits earned; 711 (b) description of course organization, including: 712 (i) modules, units, or chapters; 713 (ii) frequency of assessments; and 714 (iii) overall course length; 715 (c) course pacing information, including: 716 (i) recommended standard course pace progression; 717 (ii) expected weeks of study per semester of content; and 718 (iii) acknowledgment of a student's flexibility to adjust course pace; 719 (d) course withdrawal policy; 720 (e) final completion deadline for the course; 721 (f) summary description of course subject matter content; 722 (g) course prerequisites, if any; 723 (h) required course materials, including: 724 (i) technology requirements; and 725 (ii) tangible materials needed for course completion; 726 (i) alignment with any applicable: 727 (i) industry standards; 728 (ii) state board standards; 729 (iii) National Collegiate Athletic Association requirements; or 730 (iv) accreditation requirements; 731 (j) method of course instruction and delivery; 732 (k) description of instructional support, including: 733 (i) frequency of instructor-initiated one-on-one progress checks; 734 (ii) frequency of instructor-led tutoring; 735 (iii) availability of small-group tutoring; 736 (iv) frequency of synchronous one-on-one instructor-led checks for a student's 737 understanding; and 738 (v) regular student interaction with educators; 739 (l) student-to-teacher ratio; 740 (m) for blended or hybrid format courses: 741 (i) a description of in-person instruction components; and 742 (ii) any waiver for online instructional support requirements when a student receives - 22 - 03-06 11:00 3rd Sub. (Ivory) S.B. 137 743 real-time in-person instruction for a portion of the course; and 744 (n) prohibiting credit recovery courses or packet-based courses. 745 (14) The program manager shall ensure the review process described in Subsection (13): 746 (a) does not require an authorized online course provider to alter the provider's: 747 (i) creed; 748 (ii) practices; 749 (iii) admissions policies; 750 (iv) hiring practices; or 751 (v) curricula, including any religious course or course content; 752 (b) maintains an authorized online course provider's autonomy while accepting program 753 funds; and 754 (c) provides for a regular renewal of: 755 (i) a course approval; and 756 (ii) an authorized online course provider's authorization based on criteria, including: 757 (A) a course completion rate of at least 80%; 758 (B) reviews of the courses provided by a parent or eligible student; and 759 (C) if applicable, fidelity to the approval criteria described in Subsection (11). 760 (15) An authorized online course provider shall: 761 (a) for each course offered, establish reasonable: 762 (i) course lengths; 763 (ii) standardized completion deadlines that are the same for all courses offered by the 764 provider; 765 (iii) standardized withdrawal deadlines that are the same for all courses offered by the 766 provider; and 767 (iv) course fees; 768 (b) submit the information described in Subsections (13) and (15)(a) to the program 769 manager for approval; 770 (c) ensure the information described in Subsections (13) and (15)(a) are correctly posted 771 with each course listing; and 772 (d) report enrollment and withdrawal data to the program manager within five business 773 days. 774 (16) Subject to legislative appropriation, the program manager shall manage program funds 775 to administer the program, including: 776 (a) paying a course fee to an authorized online course provider as follows: - 23 - 3rd Sub. (Ivory) S.B. 137 03-06 11:00 777 (i) 60% of the course fee paid upon an eligible student's enrollment; and 778 (ii) 40% of the course fee paid upon the eligible student's completion of the course; 779 (b) if the student does not complete the course by the deadline the authorized online 780 course provider establishes as described in Subsection (15), disqualifying an 781 authorized online course provider from receiving the 40% of the course fee as 782 described in Subsection (16)(a)(ii); 783 (c) processing payments to a provider within 30 days of relevant deadlines for 784 enrollment, withdrawal, or course completion; and 785 (d) establishing a payment structure for payments made to a provider that ensures no 786 transaction fees are passed on to the provider. 787 (17) Subject to legislative appropriation, the Legislature shall: 788 (a) provide funds for the program that are separate from funding for public education 789 programs; and 790 (b) adjust the appropriation based on anticipated enrollment increases in the program. 791 (18) The program manager may use a percentage of the appropriation described in 792 Subsection (17) for administrative costs as follows: 793 (a) up to 8% of the appropriation for administrative costs when the total annual 794 appropriation from the Legislature is $10,000,000 or less; and 795 (b) up to 5% of the appropriation for administrative costs when the total annual 796 appropriation from the Legislature exceeds $10,000,000. 797 (19) The program manager shall provide an annual report to the Education Interim 798 Committee regarding the performance of the program, including: 799 (a) number of students served; 800 (b) courses offered and completed; 801 (c) student progress and completion rates; and 802 (d) financial information and use of funds. 803 (20) The program manager shall establish a comprehensive system for monitoring 804 providers, including: 805 (a) regular performance reviews based on: 806 (i) student completion rates; 807 (ii) student academic progress metrics; 808 (iii) instructor qualifications and performance; 809 (iv) course content quality and alignment; and 810 (v) technical system reliability; - 24 - 03-06 11:00 3rd Sub. (Ivory) S.B. 137 811 (b) annual compliance audits of: 812 (i) financial records; 813 (ii) student data privacy practices; and 814 (iii) security protocols; and 815 (c) regular provider site visits that occur at least once per academic year. 816 (21) On or before July 1, 2025, and as frequently as necessary to maintain the information, 817 the state board shall provide information on the state board's website, including: 818 (a) information on the program manager, including the program manager's contact 819 information; and 820 (b) an overview of the program. 821 (22) In the event of the expiration or termination of a program manager contract, or the 822 inability of a program manager to perform required duties: 823 (a) the Department of Operations shall serve as a temporary bridge program 824 administrator solely during the time required to: 825 (i) maintain essential program operations; and 826 (ii) complete the procurement process for selecting a new program manager; 827 (b) the Department of Operations shall immediately initiate and complete the 828 procurement process described in this section in an expedited manner; 829 (c) the Department of Operations shall establish clear timelines and procedures for the 830 transition process between the previous program manager to the Department of 831 Operations to the new program manager; and 832 (d) the Department of Operations shall provide proper notice to and coordinate with: 833 (i) authorized online course providers; 834 (ii) parents; 835 (iii) the state board; and 836 (iv) other affected parties. 837 Section 12. Effective Date. 838 This bill takes effect on May 7, 2025. - 25 -