LRB-2515/6
PG:sac&eev:jf
2013 - 2014 LEGISLATURE
January 30, 2014 - Introduced by Senators Vukmir, Darling and Farrow,
cosponsored by Representatives Jagler, Knudson, Tittl, Jacque, Kleefisch,
Sanfelippo, Strachota, Pridemore, Endsley, Rodriguez, Thiesfeldt,
Bernier, Klenke, Skowronski and Knodl. Referred to Committee on
Education.
SB525,1,5 1An Act to amend 20.255 (2) (ac), 20.255 (2) (cy), 115.77 (1), 115.791 (4), 118.305
2(1) (h) and 121.54 (3); and to create 20.255 (2) (az), 115.7915, 118.40 (2r) (e) 5.,
3118.60 (4s) and 119.23 (4s) of the statutes; relating to: creating a Special Needs
4Scholarship Program for disabled pupils, granting rule-making authority, and
5making an appropriation.
Analysis by the Legislative Reference Bureau
This bill establishes a Special Needs Scholarship Program. Under the program,
beginning in the 2014-15 school year, a child with a disability may receive a
scholarship to attend a public school located outside the pupil's school district of
residence, a charter school, or a private school, if all of the following conditions are
met:
1. The child has applied to attend a public school outside of his or her school
district of residence under the Open Enrollment Program and was rejected by the
school board of the nonresident school district or was prohibited from attending
school in a nonresident school district by the school board of the child's resident
school district.
2. The school has notified the Department of Public Instruction (DPI) of its
intent to participate in the program and the child has been accepted by the school.
3. If the school is a private school, it is approved as a private school by DPI or
is accredited.
4. An individualized education program (IEP) has been completed for the child.

5. With certain exceptions, the child attended a public school in this state in the
previous school year.
The bill directs DPI to develop a document, for inclusion with an application,
comparing the rights of a child with a disability and his or her parent under state and
federal handicapped education law with the rights of a child with a disability under
the program created by this bill and federal handicapped education law.
A school that accepts a child under the program must notify DPI. Upon receipt
of the notice, DPI must notify the school board of the pupil's school district of
residence and determine the amount of the child's scholarship. The amount is the
lesser of the cost to the school the child is attending under the scholarship of
providing regular instruction, instructional and pupil support services, special
education and related services, and supplementary aids and services to the child,
plus the per pupil operating and debt service costs, or an amount equal to the
statewide cost per public school pupil plus the state aid per child with a disability.
If the child is attending for less than a full school term, DPI must prorate the amount
of the scholarship.
DPI pays the scholarship directly to the school or school district that the child
will attend. The scholarship continues while the child attends a school eligible to
participate in the program until he or she graduates from high school or until the end
of the school term in which he or she turns 21, whichever comes first.
Under the bill, the total amount appropriated as state school equalization aid
is reduced by the total amount of scholarships paid by DPI to schools and school
districts under the program, as described above. A pupil attending a private school,
a public school outside the pupil's school district of residence, or an independent
charter school under the program is not counted for state aid purposes by the pupil's
school district of residence.
Each private school participating in the program must comply with applicable
health and safety laws; hold a valid certificate of occupancy if the municipality in
which the school is located issues such certificates; comply with federal law that
prohibits discrimination against any person on the basis of race, color, or national
origin; conduct criminal background investigations of its employees and exclude
from employment any person not permitted to hold a teaching license as the result
of an offense and any person who might reasonably be believed to pose a threat to the
safety of others; provide to each applicant a profile of the school's special education
program; implement the child's most recent IEP; and comply with the restrictions on
the use of seclusion and physical restraint that currently apply to public and charter
schools.
The private school must also annually submit to DPI a school financial report
prepared by a certified public accountant. If the private school expects to receive at
least $50,000 in scholarships during a school year, it must either file a surety bond
with DPI or provide DPI with information demonstrating that it has the ability to
pay an amount equal to 25 percent of the total amount of scholarships that it expects
to receive.
The bill provides that if a child attends a private school under the program, his
or her school district of residence must provide transportation to and from the school

if the school is located at least two miles from the child's residence, the child resides
in the private school's attendance area, and the private school is situated within the
school district of residence or not more than five miles beyond the boundaries of the
school district.
If the child attends a public school under the program, the child's parent is
responsible for transporting the child to and from school unless transportation is
required in the child's IEP. If the latter applies, the school district that the child
attends is responsible for transporting the child. The bill allows a low-income pupil
to apply to DPI for reimbursement of transportation costs.
The bill authorizes DPI to bar a school from participating in the program if the
school intentionally and substantially misrepresents information required under
the bill, routinely fails to comply with financial standards, uses a pupil's scholarship
for any purpose other than educational purposes, or fails to refund any scholarship
overpayments to the state.
Finally, the bill directs the Legislative Audit Bureau to contract for a study of
the program. The results of the study must be reported to the legislature by January
9, 2017.
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:
SB525,1 1Section 1. 20.255 (2) (ac) of the statutes is amended to read:
SB525,3,42 20.255 (2) (ac) General equalization aids. The amounts in the schedule for the
3payment of educational aids under ss. 121.08, 121.09, 121.095, 121.105, and 121.137
4and subch. VI of ch. 121, less the amount appropriated under par. (az).
SB525,2 5Section 2. 20.255 (2) (az) of the statutes is created to read:
SB525,3,76 20.255 (2) (az) Special Needs Scholarship Program. A sum sufficient to pay the
7special needs scholarships under s. 115.7915.
SB525,3 8Section 3. 20.255 (2) (cy) of the statutes, as affected by 2013 Wisconsin Act 20,
9is amended to read:
SB525,4,210 20.255 (2) (cy) Aid for transportation; open enrollment and, course options, and
11special needs scholarships
. The amounts in the schedule to reimburse parents for

1the costs of transportation of pupils under ss. 115.7915, 118.51 (14) (b), and 118.52
2(11) (b).
SB525,4 3Section 4. 115.77 (1) of the statutes is amended to read:
SB525,4,74 115.77 (1) In sub. (1m) (a) to (d), except as provided in s. 118.51 (12) (a) and (b)
52., if a child with a disability is attending a public school in a nonresident school
6district under s. 115.7915, 118.51, or 121.84 (1) (a) or (4), "local educational agency"
7means the school district that the child is attending.
SB525,5 8Section 5. 115.791 (4) of the statutes is amended to read:
SB525,4,149 115.791 (4) Subject to s. 115.77 (1m) (d) and (e), this section does not require
10a local educational agency to pay the cost of education, including special education
11and related services, of a child with a disability at a private school or facility,
12including a child with a disability attending a private school under s. 115.7915,
if the
13local educational agency made a free appropriate public education available to the
14child and the child's parents elected to place the child in a private school or facility.
SB525,6 15Section 6. 115.7915 of the statutes is created to read:
SB525,4,17 16115.7915 Special Needs Scholarship Program. (1) Definition. In this
17section:
SB525,4,2018 (a) "Eligible school" means a public school located in this state but outside the
19pupil's school district of residence; a charter school located in this state, including a
20virtual charter school; or a private school located in this state.
SB525,4,2121 (b) "Services plan" has the meaning given in 34 CFR 300.37.
SB525,4,24 22(1m) Scholarship requirements. Beginning in the 2014-15 school year, a child
23with a disability shall receive a scholarship under this section to attend an eligible
24school if all of the following apply:
SB525,5,3
1(a) The child applied to attend a public school in one or more nonresident school
2districts under s. 118.51 for the same school year for which he or she is submitting
3an application under par. (f), and all of the following occurred:
SB525,5,74 1. The child was rejected by the school boards of all the nonresident school
5districts to which he or she applied under s. 118.51 (3) (a), (3m) (a), or (7); or was
6prohibited from attending public school in all the nonresident school districts to
7which he or she applied under s. 118.51 (3m) (d), (7), or (12) (b) 1.
SB525,5,98 2. If the child's parent appealed any school board decision under subd. 1., the
9department affirmed the decision.
SB525,5,1410 (b) The school district in which the eligible public school is located, the eligible
11charter school, or the eligible private school notified the department of its intent to
12participate in the program under this section. The notice shall specify the number
13of pupils who may participate in the program under this section for whom the school
14has space.
SB525,5,2215 (c) The eligible school, if a private school, is approved by the state
16superintendent under s. 118.165 (2) or is accredited by the Wisconsin North Central
17Association, Wisconsin Religious and Independent Schools Accreditation, the
18Independent Schools Association of the Central States, Wisconsin Evangelical
19Lutheran Synod School Accreditation, National Lutheran School Accreditation, the
20diocese or archdiocese within which the private school is located, or any other
21organization recognized by the National Council for Private School Accreditation, as
22of the August 1 preceding the school term for which the scholarship is awarded.
SB525,5,2423 (d) An individualized education program or services plan has been completed
24for the child.
SB525,6,3
1(e) The child attended a public school in this state for the entire school year
2immediately preceding the school year for which the child first receives a scholarship
3under this section.
SB525,6,94 (f) The child, or the child's parent on behalf of the child, has submitted an
5application to the eligible school, on a form prepared by the department, for a
6scholarship under this section to attend the eligible school. The application shall
7include the document developed by the department under sub. (2) (a). An application
8may be made, and a child may begin attending an eligible school under this section,
9at any time during the school year.
SB525,6,1110 (g) The child has been accepted by the school district in which the eligible public
11school is located, the eligible charter school, or the eligible private school.
SB525,6,15 12(1s) Acceptance of pupils. If an eligible school receives more applications
13under sub. (1m) (f) than the number of pupils specified in the notice under sub. (1m)
14(b), it shall select pupils on a random basis except that it may give preference to
15siblings of pupils who are already attending the eligible school.
SB525,6,21 16(2) Department duties. (a) 1. The department shall develop a document for
17inclusion with an application under sub. (1m) (f), and revise it as necessary,
18comparing the rights of a child with a disability and of his or her parent under this
19subchapter, other than this section, and 20 USC 1400 to 1482, with the rights of a
20child with a disability and of his or her parent under this section and 20 USC 1400
21to 1482.
SB525,7,222 2. Receipt by an applicant of the document developed under subd. 1.,
23acknowledged in a format prescribed by the department, constitutes notice that the
24applicant has been informed of his or her rights under this section and 20 USC 1400

1to 1482. Subsequent acceptance of a scholarship under this section constitutes the
2applicant's informed acknowledgment of the rights specified in the document.
SB525,7,53 (b) The governing body of an eligible school that accepts a child under sub. (1m)
4(g) shall notify the department. Upon being notified, the department shall do all of
5the following:
SB525,7,106 1. Notify the school board of the pupil's school district of residence that the pupil
7has been awarded a scholarship under this section. The school board shall, within
83 days of receiving the notice, provide the department and the governing body of the
9eligible school that accepted the pupil with a copy of the pupil's individualized
10education program.
SB525,7,1211 2. Determine the amount of the pupil's scholarship. The amount shall be the
12lesser of the following:
SB525,7,2013 a. Divide the sum of the statewide gross property tax levy for schools in the
14previous year and the total amount of general school aid appropriated under s.
1520.255 (2) (ac), (ar), and (bb) in the previous fiscal year by the total statewide
16membership, as defined in s. 121.004 (5), in the previous school year, and add to the
17quotient the result obtained by dividing the amount appropriated under s. 20.255 (2)
18(b) in the previous fiscal year by the total number of children with disabilities
19enrolled in public schools in the previous school year, as determined for federal aid
20purposes under 20 USC 1400 to 1482.
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