Committee hears plan to shift fully online students and providers into Utah Fits All over three‑year phase‑in

Legislative staff described a draft bill that would prohibit local education agencies from contracting third‑party vendors to serve students who are exclusively enrolled in fully online programs and would transition those students and compatible providers into a separate program within Utah Fits All.

Jeff Holton, associate general counsel, said the bill follows the Open Ed audit options and would enact the most structural change: moving the fully online model into a statewide fits‑within‑fits program and phasing in the change over three years to preserve continuity for students and families. The transition would create a program manager responsibility within Utah Fits All and, for families who want full Fits All benefits, allow an opt‑in to the broader scholarship program.

Committee members asked about how much funding currently remains with LEAs under the open‑ed model and where remaining dollars flow. Staff referred members to the May audit where a chart showed LEA retained amounts in the range of approximately $4,100 to $5,300 and noted that about $2,000 on average was historically passed to families for certain approved uses. Members also asked whether private schools and families already enrolled in Fits All would be affected; staff said families could apply for Fits All scholarships through the program manager and that the draft includes a separate scholarship level for homeschooled students.

Senators raised constitutional and litigation questions connected to an existing lawsuit over aspects of the Fits All program; staff said the draft does not directly affect the ongoing litigation and is intended to operate separately.

Representative Perucci, who sponsored discussion of the bill, said the three‑year phase‑in recognizes the program manager’s capacity and the scale of the change; committee members agreed to continue work in the interim and not take immediate committee action.