1. (1) As used in this section:

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

   2. (b) "Transition event" means:

      1. (i) the expiration or termination of a contracted entity contract;
      2. (ii) the inability of a contracted entity to perform required duties; or
      3. (iii) any other circumstance requiring transition to a new contracted entity, including legislative changes to this part or the program appropriations.

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

      1. (i) the occurrence of a transition event; and
      2. (ii) the effective date of a contract with a new contracted entity selected through the state's procurement process.

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

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

      1. (i) maintain essential program operations with the full cooperation from the previous contracted entity that is undergoing termination of contract; and
      2. (ii) complete the procurement process for selecting new contracted entities;
   2. (b) immediately initiate and complete the procurement process described in Section 53F-6-404 in an expedited manner;
   3. (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;

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

      1. (i) immediately secure temporary financial services through an emergency procurement process to ensure continuity of payment processing;
      2. (ii) ensure the temporary financial services provider meets all qualifications of a financial administrator under Section 53F-6-401; and
      3. (iii) maintain separation between program administration and financial operations during the transition period; and

   5. (e) provide proper notice to and coordinate with:

      1. (i) qualifying providers;
      2. (ii) parents;
      3. (iii) all contracted entities;
      4. (iv) the state board; and
      5. (v) other affected parties.

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

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

      1. (i) all existing scholarship accounts remain valid and operational;
      2. (ii) all qualifying provider approvals remain in effect;

      3. (iii) no interruption in:

         1. (A) scholarship payments;
         2. (B) account access for parents;
         3. (C) contracted entity operations; and
         4. (D) other essential program functions;

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

         1. (A) the provider's compliance with program requirements;
         2. (B) proper processing of scholarship payments; and
         3. (C) appropriate separation of duties is maintained between the provider and the Department of Operations;
      5. (v) preservation of all program data and records for transfer to new contracted entities; and
      6. (vi) continuation of necessary reporting and compliance activities;

   2. (b) may not:

      1. (i) implement new policies or procedures;
      2. (ii) modify existing program operations; or
      3. (iii) directly handle or process any scholarship funds; and
   3. (c) shall maintain the program's operational independence from governmental control.

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

   1. (a) is limited to maintaining essential program functions;
   2. (b) may not extend beyond the minimum time necessary to complete the procurement process;
   3. (c) does not constitute ongoing program management or operations;
   4. (d) shall be performed solely to maintain program continuity during the transition to a new program manager; and
   5. (e) shall terminate immediately upon the new program manager assuming the duties of a program manager.

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

   1. (a) remain in effect during the transition period unless specifically terminated through appropriate procedures;
   2. (b) be reviewed by the Department of Operations for continuation, modification, or termination; and
   3. (c) if necessary, be transferred to appropriate entities as determined through the procurement process.

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

   1. (a) facilitate an orderly transfer of all relevant program operations, records, and data;
   2. (b) ensure the new contracted entity is prepared to assume all relevant program responsibilities; and
   3. (c) except for contract administrator duties, terminate all temporary administrative duties.

7. (7) During the transition period:

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

      1. (i) the provider shall process all program payments and maintain all scholarship accounts;
      2. (ii) the Department of Operations may not directly handle or process any scholarship funds; and
      3. (iii) the temporary financial services provider shall receive the portion of administrative funds necessary for financial operations;

   2. (b) the state board shall:

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

         1. (A) the temporary financial services provider for financial operations; and
         2. (B) other contracted entities continuing to perform program functions; and
      2. (ii) ensure the total administrative costs do not exceed the limit in Subsection 53F-6-411(3)(a)(i); and

   3. (c) the Department of Operations:

      1. (i) shall maintain detailed accounting of all transition period administrative expenditures;
      2. (ii) shall report transition period expenditures to the state board;
      3. (iii) may not directly handle scholarship funds or accounts; and
      4. (iv) shall ensure proper separation between program administration and financial operations is maintained throughout the transition period.

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

   1. (a) transfer to the newly contracted entities upon completion of the procurement process; or
   2. (b) return to the restricted account described in Section 53F-6-411 if not needed for contracted entity operations.

9. (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:

   1. (a) a summary of actions taken during the transition period;
   2. (b) an accounting of all expenditures made during the transition period;
   3. (c) confirmation that all program operations, records, and data have been properly transferred to new contracted entities; and
   4. (d) verification that all temporary administrative duties have been terminated.

Enacted by Chapter 25, 2025 General Session