1. (1) A third-party contractor that knowingly or recklessly permits unauthorized collecting, sharing, or use of student data under this part:

   1. (a) except as provided in Subsection (2), may not enter into a future contract with an institution;
   2. (b) may be required by the board to pay a civil penalty of up to $25,000; and

   3. (c) may be required to pay:

      1. (i) an institution's cost of notifying parents and students of the unauthorized sharing or use of student data; and
      2. (ii) any expense incurred by the institution as result of the unauthorized sharing or use of student data.

2. (2) An education entity may enter into a contract with a third-party contractor that knowingly or recklessly permitted unauthorized collecting, sharing, or use of student data if:

   1. (a) the education entity determines that the third-party contractor has corrected the errors that caused the unauthorized collecting, sharing, or use of student data; and

   2. (b) the third-party contractor demonstrates:

      1. (i) if the third-party contractor is under contract with the education entity, current compliance with this part; or
      2. (ii) an ability to comply with the requirements of this part.

3. (3)

   1. (a) If necessary, the board may bring an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, to enforce payment of the civil penalty described in Subsection (1)(b).
   2. (b) Notwithstanding Title 78B, Chapter 3a, Venue for Civil Actions, the board shall bring an action described in Subsection (3)(a) in the county in which the office of the education entity is located if the action is brought in the district court.
4. (4) An individual who knowingly or intentionally permits unauthorized collecting, sharing, or use of student data may be found guilty of a class A misdemeanor.

5. (5)

   1. (a) A student or a minor student's parent may bring an action against a third-party contractor in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration, for damages caused by a knowing or reckless violation of Section 53H-14-505 by a third-party contractor.

   2. (b) If the court finds that a third-party contractor has violated Section 53H-14-505, the court may award to the parent or student:

      1. (i) damages; and
      2. (ii) costs.

Renumbered and Amended by Chapter 8, 2025 Special Session 1