53F-6-415.5. Transition provisions.

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Effective 3/6/2025

(1)As used in this section:

(a)"Previous contracted entity" means an organization that was contracted to perform program functions immediately prior to a transition event.

(b)"Transition event" means:

(i)the expiration or termination of a contracted entity contract;

(ii)the inability of a contracted entity to perform required duties; or

(iii)any other circumstance requiring transition to a new contracted entity, including legislative changes to this part or the program appropriations.

(c)"Transition period" means the time between:

(i)the occurrence of a transition event; and

(ii)the effective date of a contract with a new contracted entity selected through the state's procurement process.

(2)Upon the occurrence of a transition event, the Department of Operations shall:

(a)serve as a temporary bridge program administrator solely during the time required to:

(i)maintain essential program operations with the full cooperation from the previous contracted entity that is undergoing termination of contract; and

(ii)complete the procurement process for selecting new contracted entities;

(b)immediately initiate and complete the procurement process described in Section 53F-6-404 in an expedited manner;

(c)establish clear timelines and procedures for the transition process between the previous contracted entity to the Department of Operations to the new contracted entity;

(d)if the transition event affects the financial administrator:

(i)immediately secure temporary financial services through an emergency procurement process to ensure continuity of payment processing;

(ii)ensure the temporary financial services provider meets all qualifications of a financial administrator under Section 53F-6-401 ; and

(iii)maintain separation between program administration and financial operations during the transition period; and

(e)provide proper notice to and coordinate with:

(i)qualifying providers;

(ii)parents;

(iii)all contracted entities;

(iv)the state board; and

(v)other affected parties.

(3)During the transition period, the Department of Operations:

(a)shall ensure with full cooperation and support of the previous contracted entity:

(i)all existing scholarship accounts remain valid and operational;

(ii)all qualifying provider approvals remain in effect;

(iii)no interruption in:

(A)scholarship payments;

(B)account access for parents;

(C)contracted entity operations; and

(D)other essential program functions;

(iv)if a temporary financial services provider is necessary:

(A)the provider's compliance with program requirements;

(B)proper processing of scholarship payments; and

(C)appropriate separation of duties is maintained between the provider and the Department of Operations;

(v)preservation of all program data and records for transfer to new contracted entities; and

(vi)continuation of necessary reporting and compliance activities;

(b)may not:

(i)implement new policies or procedures;

(ii)modify existing program operations; or

(iii)directly handle or process any scholarship funds; and

(c)shall maintain the program's operational independence from governmental control.

(4)The Department of Operations' temporary bridge program administrator role:

(a)is limited to maintaining essential program functions;

(b)may not extend beyond the minimum time necessary to complete the procurement process;

(c)does not constitute ongoing program management or operations;

(d)shall be performed solely to maintain program continuity during the transition to a new program manager; and

(e)shall terminate immediately upon the new program manager assuming the duties of a program manager.

(5)All contracts, agreements, and obligations with the previous contracted entity shall:

(a)remain in effect during the transition period unless specifically terminated through appropriate procedures;

(b)be reviewed by the Department of Operations for continuation, modification, or termination; and

(c)if necessary, be transferred to appropriate entities as determined through the procurement process.

(6)Upon selection and awarding of a new contract to a contracted entity, the Department of Operations shall:

(a)facilitate an orderly transfer of all relevant program operations, records, and data;

(b)ensure the new contracted entity is prepared to assume all relevant program responsibilities; and

(c)except for contract administrator duties, terminate all temporary administrative duties.

(7)During the transition period:

(a)if a temporary financial services provider is necessary:

(i)the provider shall process all program payments and maintain all scholarship accounts;

(ii)the Department of Operations may not directly handle or process any scholarship funds; and

(iii)the temporary financial services provider shall receive the portion of administrative funds necessary for financial operations;

(b)the state board shall:

(i)allocate administrative funds as directed by the Department of Operations to:

(A)the temporary financial services provider for financial operations; and

(B)other contracted entities continuing to perform program functions; and

(ii)ensure the total administrative costs do not exceed the limit in Subsection 53F-6-411(3)(a)(i) ; and

(c)the Department of Operations:

(i)shall maintain detailed accounting of all transition period administrative expenditures;

(ii)shall report transition period expenditures to the state board;

(iii)may not directly handle scholarship funds or accounts; and

(iv)shall ensure proper separation between program administration and financial operations is maintained throughout the transition period.

(8)Any unexpended administrative funds at the end of the transition period shall:

(a)transfer to the newly contracted entities upon completion of the procurement process; or

(b)return to the restricted account described in Section 53F-6-411 if not needed for contracted entity operations.

(9)Within 30 days after terminating temporary administrative duties under Subsection (6)(c), the Department of Operations shall submit a report to the Executive Appropriations Committee that includes:

(a)a summary of actions taken during the transition period;

(b)an accounting of all expenditures made during the transition period;

(c)confirmation that all program operations, records, and data have been properly transferred to new contracted entities; and

(d)verification that all temporary administrative duties have been terminated.

Enacted by Chapter 25 , 2025 General Session