LRB-4066/1
ARG&TKK:med:jm
2011 - 2012 LEGISLATURE
March 15, 2012 - Introduced by Representatives Krusick, Berceau and Ringhand.
Referred to Committee on Education.
AB711,1,6 1An Act to renumber 343.12 (9); to amend 121.53 (4), 121.53 (6), 121.555 (1) (b),
2340.01 (56) (a) 1., 341.03 (title), 341.03 (1) and 343.12 (4) (b); and to create
3118.60 (10) (a) 9. and 10., 119.23 (10) (a) 9. and 10., 121.555 (2m), 343.12 (1m)
4and 343.12 (9) (bm) of the statutes; relating to: the parental choice programs;
5the operation of, and insurance requirements related to, school buses and
6alternative methods of pupil transportation; and providing a penalty.
Analysis by the Legislative Reference Bureau
Transportation of pupils and insurance coverage
Under current law, every school board must require that a certificate of
insurance is filed with the school board and the Department of Transportation (DOT)
showing that an insurance policy has been procured and is in effect which covers the
owner and operator of a school bus and the school board or the school board must
procure an insurance policy and file the certificate with DOT. DOT may not issue
registration plates for a school bus unless the certificate is on file with DOT. This
insurance policy may not be canceled or terminated prior to its expiration unless
notice of cancellation or termination is filed by the insurer with DOT and the school
board at least ten days prior to the date of cancellation or termination. DOT must
then revoke the registration of any school bus on which the policy has been canceled
or terminated.

Also under current law, a pupil who resides within the city of Milwaukee or in
certain school districts (currently, only the Racine Unified School District) may,
under certain conditions, attend a private school participating in a parental choice
program (PCP) at state expense.
Under the bill, the same requirements that apply to a school board also apply
to the governing body of a charter school and the governing body of a private school.
The bill requires that the insurance policy procured by a school board, the governing
body of a charter school, or the operator of a private school be in effect for the entire
school year. With respect to a charter school or private school, the bill requires an
insurer to provide ten days' notice to the Department of Public Instruction (DPI) if
it cancels or terminates an insurance policy covering a school bus prior to the policy's
expiration. The bill requires an insurer who provides this insurance coverage to a
private school participating in a PCP to notify DPI of any change made to the policy.
The bill also requires a private school participating in a PCP to immediately notify
DPI that the school has received a notice of cancellation or termination from the
insurer.
Under current law, a school board or the governing body of a private school may
provide pupil transportation services by alternative methods. These alternative
methods consist of a motor vehicle transporting nine or fewer passengers in addition
to the operator, and a motor vehicle transporting ten or more passengers in addition
to the operator when the secretary of transportation determines, at the request of the
school board or governing body, that an emergency exists because no regular
transportation is available. Current law requires, with certain exceptions, that
motor vehicles used for alternative pupil transportation comply with the insurance
requirements applicable to school buses.
The bill requires that a school board and the governing body of a private school
file with DOT a certificate of insurance showing that the insurance policy applicable
to a motor vehicle used as an alternative method of pupil transportation is in effect
for the entire school year. The bill also requires an insurer to provide ten days' notice
to DOT and the school board or governing body of a private school prior to the
cancellation or termination of an insurance policy covering a motor vehicle used as
an alternative method of pupil transportation. The bill requires an insurer who
provides this insurance coverage to a school participating in a PCP to notify DPI of
any change made to the policy. The bill also requires a private school participating
in a PCP to immediately notify DPI that the school has received a notice of
cancellation or termination from the insurer.
Exclusion of private schools from a PCP
Under current law, DPI may bar a private school from participating in a PCP
if DPI determines that the private school has violated certain prohibitions. For
example, a private school that fails to submit an independent financial audit of the
school that has been conducted by a certified public accountant may be barred from
participating in a PCP. The bill permits DPI to bar a school from participating in a
PCP if the private school fails to procure and maintain insurance as required by DPI
and under the bill.

School buses
Under current law, a person may not operate a school bus without a school bus
endorsement issued by DOT. A person may obtain a school bus endorsement to the
person's regular motor vehicle operator's license if the person is to operate a school
bus that is not a commercial motor vehicle (CMV) or to the person's commercial
driver license (CDL) if the person is to operate a school bus that is a CMV.
Also under current law, an employer may not knowingly allow an employee to
operate a CMV during any period of withdrawal of the employee's operating
privileges or when the employee does not possess a valid CDL with any required
endorsement. The employer also may not knowingly allow an employee to operate
a CMV in violation of any law. A person who holds a CDL must report to his or her
employer any conviction for a traffic violation within 30 days of the conviction and
any withdrawal of operating privileges by the end of the day after the withdrawal.
DOT maintains an employer notification program to permit an employer to register
the name of a CDL-holding employee and be notified by DOT whenever a conviction
or withdrawal of operating privileges is recorded on the employee's operating record.
Under the bill, an employer that employs any person as an operator of a school
bus is responsible for determining that each such person is qualified to operate a
school bus. This employer is also responsible for assuring that only employees so
qualified operate the employer's school buses. If the employer employs any person
holding a CDL to operate a school bus, the employer must participate in DOT's
employer notification program. An employer that violates any of these requirements
must forfeit not less than $20 nor more than $400.
Under current law, the definition of "school bus" includes a motor vehicle which
carries ten or more passengers in addition to the driver or is painted in accordance
with specifications established by statute and which is used for the purpose of
transporting pupils to or from an elementary or high school supported by public
taxation, a private school that meets criteria established by DPI, or, under certain
conditions, a technical college. The bill changes the definition of "school bus" to
explicitly include a motor vehicle that satisfies the above conditions and that is used
for the purpose of transporting pupils to or from a charter school.
Also under current law, if a motor vehicle providing pupil transportation gets
into an accident, the accident must be reported to the school board within ten days
after its occurrence.
Under the bill, the accident must, if applicable, be reported to the governing
body of a charter school or the governing body of a private school.
Under current law, a person may not operate or knowingly permit the operation
of a motor vehicle if the registration for that vehicle is suspended, revoked, or
canceled. A person who violates this prohibition may be required to forfeit not more
than $200 if the vehicle involved in the violation is an automobile or weighs 10,000
pounds or less and may be required to forfeit not more than $500 if the vehicle
involved is any other vehicle.
The bill specifically prohibits a person from operating or knowingly permitting
the operation of a school bus, or motor vehicle used as an alternative method of pupil
transportation, required to be covered by liability insurance unless such valid

insurance is current on the school bus. A person who violates this prohibition may
be required to forfeit not more than $500.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB711, s. 1 1Section 1. 118.60 (10) (a) 9. and 10. of the statutes are created to read:
AB711,4,32 118.60 (10) (a) 9. Failed to procure and maintain in effect the insurance
3required under s. 121.53 (4) or 121.555 (2) (a).
AB711,4,54 10. Failed to procure and maintain in effect the insurance required by the
5department by rule.
AB711, s. 2 6Section 2. 119.23 (10) (a) 9. and 10. of the statutes are created to read:
AB711,4,87 119.23 (10) (a) 9. Failed to procure and maintain in effect the insurance
8required under s. 121.53 (4) or 121.555 (2) (a).
AB711,4,109 10. Failed to procure and maintain in effect the insurance required by the
10department by rule.
AB711, s. 3 11Section 3. 121.53 (4) of the statutes is amended to read:
AB711,5,1812 121.53 (4) Every school board, every governing body of a private school that
13transports pupils or contracts for the transportation of pupils, and every governing
14body of a charter school that transports pupils or contracts for the transportation of
15pupils
shall require that there be filed with it and with the department of
16transportation a certificate of insurance showing that an insurance policy has been
17procured and is in effect for the entire school year which covers the owner and
18operator of the school bus and the school board governing body of the private school
19or charter school,
or shall procure an insurance policy and file such certificate with

1the department of transportation. Unless such certificate is on file with the
2department of transportation, no registration plates for a school bus may be issued
3by the department of transportation. No such policy may be terminated prior to its
4expiration or canceled for any reason, unless a notice thereof is filed with the
5department of transportation and with the school board or governing body of the
6private school or charter school
by the insurer at least 10 days prior to the date of
7termination or cancellation. No such policy which covers a private school
8participating in the program under s. 118.60 or 119.23 may be terminated prior to
9its expiration or canceled for any reason, unless a notice thereof is also filed with the
10department of public instruction by the insurer at least 10 days prior to the date of
11termination or cancellation. An insurer that issues an insurance policy under this
12section that covers a private school participating in the program under s. 118.60 or
13119.23 shall notify the department of public instruction of any change made to the
14policy. A private school participating in the program under s. 118.60 or 119.23 shall
15immediately notify the department of public instruction that the school has received
16a notice of termination or cancellation from the insurer.
The department of
17transportation shall revoke the registration of a school bus on which the policy has
18been terminated or canceled, effective on the date of termination or cancellation.
AB711, s. 4 19Section 4. 121.53 (6) of the statutes is amended to read:
AB711,5,2220 121.53 (6) Within 10 days after its occurrence, every accident involving a motor
21vehicle while providing transportation under this subchapter shall be reported to the
22appropriate school board or governing body of a private school or charter school.
AB711, s. 5 23Section 5. 121.555 (1) (b) of the statutes is amended to read:
AB711,6,624 121.555 (1) (b) A motor vehicle transporting 10 or more passengers in addition
25to the operator and used temporarily to provide transportation for purposes specified

1under s. 340.01 (56) (a) when the school board or the governing body of the private
2school
requests the secretary of transportation to determine that an emergency
3exists because no regular transportation is available. The secretary of
4transportation shall approve or deny the request in writing. Any authorization
5granted under this paragraph shall specify the purpose and need for the emergency
6transportation service.
AB711, s. 6 7Section 6. 121.555 (2m) of the statutes is created to read:
AB711,7,38 121.555 (2m) Every school board and every governing body of a private school
9that provides pupil transportation services under this section shall require that
10there be filed with it and with the department of transportation a certificate of
11insurance showing that the insurance policy required under sub. (2) has been
12procured and is in effect for the entire school year which covers the owner and
13operator of the motor vehicle and the school board or governing body of the private
14school, or shall procure an insurance policy and file such certificate with the
15department of transportation. No such policy may be terminated prior to its
16expiration or canceled for any reason, unless a notice thereof is filed with the
17department of transportation and the school board or the governing body of the
18private school by the insurer at least 10 days prior to the date of termination or
19cancellation. No such policy which covers a private school participating in the
20program under s. 118.60 or 119.23 may be terminated prior to its expiration or
21canceled for any reason, unless a notice thereof is also filed with the department of
22public instruction by the insurer at least 10 days prior to the date of termination or
23cancellation. An insurer that issues an insurance policy under this section that
24covers a private school participating in the program under s. 118.60 or 119.23 shall
25notify the department of public instruction of any change made to the policy. A

1private school participating in the program under s. 118.60 or 119.23 shall
2immediately notify the department of public instruction that the school has received
3a notice of termination or cancellation from the insurer.
AB711, s. 7 4Section 7. 340.01 (56) (a) 1. of the statutes is amended to read:
AB711,7,75 340.01 (56) (a) 1. Pupils to or from a public school as defined in s. 115.01 (1) or,
6a private school as defined in s. 115.001 (3r), a charter school as defined in s. 115.001
7(1),
or pupils to or from a technical college when required under s. 118.15 (1).
AB711, s. 8 8Section 8. 341.03 (title) of the statutes is amended to read:
AB711,7,10 9341.03 (title) Operating vehicle after suspension, revocation, or
10cancellation of registration
or without required insurance .
AB711, s. 9 11Section 9. 341.03 (1) of the statutes is amended to read:
AB711,7,1712 341.03 (1) Prohibition. No person may operate or knowingly permit the
13operation of a motor vehicle if the registration for that vehicle is suspended, revoked,
14or canceled under s. 285.30 (6) (d) or 342.255, ch. 344 or this chapter, or if the
15registration for that vehicle is suspended, canceled, or revoked under the law of
16another jurisdiction, or, if required under s. 121.53 or 121.555 (2) (a), valid insurance
17is not current on the vehicle
.
AB711, s. 10 18Section 10. 343.12 (1m) of the statutes is created to read:
AB711,7,2219 343.12 (1m) (a) An employer that employs any person as an operator of a school
20bus is responsible for determining that each such person is qualified under this
21section to operate a school bus and for assuring that only employees so qualified
22operate the employer's school buses.
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